Bank of New York Mellon's investment and wealth management unit had $1.91 trillion in assets under management as of June 30 — down 1.6% from $1.94 year-over-year but only a hair lower than its first quarter AUM.
In an earnings release issued Tuesday, parent company BNY Mellon attributed the decline to "the impact of the Alcentra divestiture and the mix of cumulative net inflows, partially offset by improved seed capital results and the abatement of money market fee waivers."
BNY Mellon sold Alcentra, a European credit and private debt manager, to Franklin Templeton last November. At the time of the $700 million sale, Alcentra had $38 billion in assets under management.
Total revenue for BNY Mellon's investment management and wealth management unit fell nearly 10% year-over-year to $813 million. Of that figure, $546 million came from BNY Mellon's investment management unit while the firm's wealth management division made $267 million.
The firm's income before taxes as reported in the Tuesday filing was something of a rollercoaster. In the second quarter, BNY Mellon's investment and wealth management unit reported an income of $129 million before taxes — down a whopping 38% year-over-year but up 39% from last quarter's pre-tax income of $93 million.
Despite plateauing AUM and falling revenues in its investment and wealth management division, BNY Mellon performed well on the whole, reporting earnings per share of $1.30, up 26% year-over-year, and $4.5 billion in total revenue, up 5% year-over-year.
"BNY Mellon delivered good financial performance amid a very dynamic operating environment, and we continued taking actions to position the firm for higher underlying growth and enhanced operational efficiency over time," said Robin Vince, BNY Mellon's president and CEO, in a note to investors.