Bank of New York Mellon's investment and wealth management unit reported $1.82 trillion in assets under management as of Sept. 30 — up 2.5% year over year, but down 4.5% from the end of the second quarter.
BNY Mellon attributed the year-over-year increase in AUM to the "the favorable impact of a weaker U.S. dollar and higher market values, partially offset by the divestiture of Alcentra," according to an Oct. 17 news release.
BNY Mellon sold Alcentra, a European credit and private debt manager, to Franklin Templeton last November. Alcentra had $35 billion in AUM as of Sept. 30, 2022.
In the third quarter of 2023, BNY Mellon posted total net outflows of $8 billion.
By asset type, cash and liability-driven investments saw net inflows of $7 billion and $1 billion, respectively.
Meanwhile, fixed-income, multiasset and alternative investments, equity and index products saw net outflows of $7 billion, $4 billion, $3 billion and $2 billion, respectively.
Moreover, "net market impact" and "net currency impact" reduced third quarter AUM by $50 billion and $27 billion, respectively, in the third quarter.
Total revenue for BNY Mellon's investment management and wealth management amounted to $827 million in the third quarter of 2023, down 4% from the year-ago quarter, but up 1.7% from the second quarter of 2023. Of that $827 million figure, $557 million came from BNY Mellon's investment management unit while the firm's wealth management division generated $270 million.
Revenues generated by the investment management unit decreased by 3.8% year over year. BNY Mellon attributed this decline to "the impact of the Alcentra divestiture and the mix of cumulative AUM flows, partially offset by higher performance fees and market values, and the favorable impact of a weaker U.S. dollar."
