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Money Management

Morgan Stanley AUM up 4% for quarter despite $6.2 billion in net outflows

Morgan Stanley Investment Management had $480 billion in assets under management or supervision as of March 31

Morgan Stanley (MS) Investment Management had $480 billion in assets under management or supervision as of March 31, up 3.7% from three months earlier and up 2.3% from a year earlier, an earnings statement released Wednesday by parent company Morgan Stanley showed.

MSIM reported net outflows of $6.2 billion for the first quarter, vs. net inflows of $10.7 billion for the previous quarter and net outflows of $17.9 billion for the first quarter of 2018. Long-term net outflows totaled $400 million, vs. net outflows of $3.2 billion during the prior quarter and net inflows of $1.5 billion for the same quarter a year earlier.

The flows were driven by $5.8 billion in net outflows from liquidity strategies, $1.2 billion in net outflows from fixed income, and $600 million in net outflows from alternatives, partially offset by $1.4 billion in net inflows in equities.

Broken down by assets, MSIM managed $159 billion in liquidity assets as of March 31, down 3% from Dec. 31 and up 1.3% from March 31, 2018. Alternative investments totaled $133 billion as of March 31, up 4% from three months earlier and up 2% from 12 months earlier.

Equities totaled $120 billion in assets as of March 31, up 17% from Dec. 31 and up 10% from a year earlier. Fixed-income assets totaled $68 billion, flat from the end of the prior quarter and down 6% from a year ago.

Net revenue at MSIM was $804 million in the most recent quarter, up 18% from $684 million in the previous quarter and 12% higher than the $718 million in the quarter ended March 31, 2018.

Net investment management income was $136 million in the fourth quarter vs. $65 million in the prior quarter and $127 million in first quarter 2018.