Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. MONEY MANAGEMENT
July 17, 2019 01:28 PM

BNY Mellon AUM flat in quarter, up 2% for year

Danielle Walker
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    BNY Mellon's money management unit reported a 2.1% increase in assets under management in the year ended June 30.

    Bank of New York Mellon's investment management and wealth management businesses reported $1.84 trillion in assets under management as of June 30, remaining about flat over the prior quarter ending March 31, but increasing 2.1% year over year, BNY Mellon's quarterly earnings release issued Wednesday said.

    The investment management business experienced total net outflows of $24 billion during the second quarter. In comparison, flows were flat during the three months ended March 31, while net outflows of $26 billion were reported during the year-earlier quarter.

    During the second quarter, the brunt of outflows came from low-fee index products, which suffered $22 billion in net outflows over the period. In comparison, index strategies experienced $2 billion in net outflows during the three months ended March 31 vs. $7 billion in net outflows during the second quarter of 2018.

    Of note, two-thirds of the outflows from index strategies came from a single client that took assets with BNY in-house, Chief Financial Officer Michael Santomassimo noted during Wednesday's earnings call with analysts.

    Compare fund flows and AUM of publicly traded money managers with P&I's Earnings Tracker

    Across long-term active strategies, fixed-income products saw $4 billion in net outflows during the first quarter, as opposed to $3 billion in net inflows in the first quarter and $4 billion in net outflows during the year-earlier quarter. Equity strategies had $2 billion in net outflows, compared with $4 billion in net outflows in the prior quarter and $3 billion in net outflows during the second quarter of 2018. Liability driven investment strategies as well as multiasset and alternative products each saw $1 billion in net inflows during the second quarter. In the prior quarter, however, LDI products experienced saw $5 billion in net inflows vs. $2 billion in net inflows during the three months ended June 30, 2018. In the first quarter, multiasset and alternative strategies saw $4 billion in net outflows vs. $3 billion in net outflows during the year-earlier quarter.

    Across its short-term cash strategies, BNY reported $2 billion in net inflows during the three months ended June 30 as well during the first quarter. During the second quarter of 2018, cash strategies had $11 billion in net outflows.

    As far as AUM by product type, LDI strategies had $709 billion in assets, remaining flat over the prior quarter, but increasing by 7% year-over-year. Index strategies had $322 billion, down 3% over March 31 and down 4% over June 30, 2018.

    Cash strategies had $267 billion in assets, up 1% over the quarter ad down 1% over the year. Fixed-income products had $209 billion in AUM, remaining flat since March 31 and growing 6% in comparison to the year-earlier quarter.

    Multiasset and alternative strategies had $184 billion as of June 30, a 3% and 2% increase, respectively, over the previous quarter and June 30, 2018.

    Meanwhile, equity products saw a 2% increase in AUM during the second quarter, with $152 billion, representing a 5% decrease in assets over the year-earlier quarter.

    As of June 30, parent BNY Mellon's assets under custody and administration totaled $35.5 trillion, up 2.9% over March 31 and up 5.7% over June 30, 2018.

    Investment management and performance fees in the second quarter were $833 million, down 1% from the first quarter and down 7.5% from the second quarter of 2018.

    Parent company revenue totaled $3.9 billion, up nearly 1% from March 31 and down 5.2% year-over-year.

    Net income for the parent company was $1.02 billion in the second quarter, up 6.8% from the previous quarter but down 8% from the year-earlier quarter.

    During Wednesday's call with analysts, CEO Charles Scharf said that the company continues to look at ways to cut costs, including eliminating management roles where possible.

    "We continue to believe that there are meaningful opportunities to reduce expenses, and that will continue for a relatively long period of time," Mr. Scharf said.

    Cost-cutting initiatives on the table include reducing layers of management, considering the location of employees and using automation across various business functions, he said.

    "In an environment like this, you get even more focused on figuring out what you can do more quickly to have it actually impact our results," Mr. Scharf said.

    Related Articles
    ATP taps BNY Mellon as custodian, replacing Northern Trust
    UTIMCO retains BNY Mellon as custodian, pending regents' approval
    BNY Mellon AUM increases 7% in quarter, falls 1% for year
    Recommended for You
    blackrock_symposium_1550-main_i.jpg
    BlackRock among top funds with exposure to Adani's dollar debt
    CPR Asset Management names head of research and strategy
    Sienna Investment Managers names head of ESG
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing