Bank of New York Mellon's investment and wealth management unit reported $2 trillion in assets under management as of March 31, up 6% year over year and up 2% from the fourth quarter.
BNY Mellon attributed the year-over-year increase in AUM to “higher market values,” according to an April 16 financial release.
“Total revenue of $4.5 billion was up 3% year over year, as 8% growth in investment services fees led by strength in asset servicing, issuer services and clearance and collateral management more than offset revenue headwinds from muted volatility in foreign exchange markets and lower net interest income,” said Robin Vince, president and CEO, in the firm’s earnings release on April 16. “We are starting to see our growth initiatives deliver results.”
During the first quarter of 2024, BNY Mellon posted total net inflows of $17 billion in its investment and wealth management unit.
Total revenue for investment management and wealth management was $846 million in the first quarter, up 2% from the year-ago quarter. Of the $846 million, $576 million was from the firm’s investment management unit while the firm’s wealth management division generated $270 million.
BNY attributed the revenue increase in the investment management division to “higher market values, partially offset by the mix of AUM flows and lower performance fees,” while on the wealth management side the year-over-year increase was driven by “higher market values, partially offset by changes in product mix and lower net interest income.”
By asset type, cash saw net inflows of $16 billion followed by liability-driven investments at $13 billion in net inflows during the first quarter. Fixed income saw net inflows of $12 billion in the same period.
Index products saw the largest net outflows at $15 billion followed by multiasset and alternative investments and equity with $5 billion and $4 billion in outflows, respectively.
"Net market impact" increased AUM by $16 billion during the first quarter while "net currency impact" reduced first quarter AUM by $10 billion.
