Morgan Stanley Investment Management reported $398 billion in assets under management as of Sept. 30, up 0.5% from June 30 and up 11% from a year earlier, parent company Morgan Stanley's earnings statement revealed Friday.
The annual increase in AUM was attributed primarily to market appreciation and positive flows.
Net inflows totaled $7.6 billion for the quarter ended Sept. 30, the same as the previous quarter and up from the net inflows of $1.8 billion in the third quarter of 2013.
By asset class, net inflows of $4.9 billion went to liquidity strategies; $4.5 billion, fixed income; $500 million, merchant banking; and $300 million each to alternatives and real estate. Equities saw net outflows of $2.9 billion during the quarter ended Sept. 30.
Morgan Stanley also reported that $143 billion of AUM was in equities at the end of the third quarter, down 5% from the end of the second quarter. Liquidity strategies had $126 billion in assets, up 4%; fixed income, $65 billion and up 5%; alternatives, $35 billion, unchanged from the prior quarter; real estate, $20 billion, also unchanged; and merchant banking, $9 billion, up 13%.
Net revenue for MSIM totaled $655 million in the third quarter, down 5% from the previous quarter and down 21% from the year-earlier quarter.
Investment management net income totaled $120 million in the quarter ended Sept. 30, down 13% from the previous quarter and down 16% from the year-earlier quarter.