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.
