Goldman Sachs Asset Management reported assets under supervision of $1.76 trillion as of Sept. 30, a 3.5% decline from three months earlier and a 4.9% increase from the year-ago third quarter.
The earnings report came as Goldman Sachs said it plans to combine its asset and wealth management segments into one new division, Asset & Wealth Management, effective Dec. 1.
Firmwide, Goldman Sachs reported Tuesday that assets under supervision, which includes its consumer and wealth management units, totaled $2.43 trillion as of Sept. 30, a 2.7% decline from three months earlier and a 2.3% increase from the year-ago third quarter.
The asset management unit saw total net inflows of $7 billion in the third quarter, including net outflows of $4 billion, $2 billion and $1 billion in equities, alternative investments and fixed income, respectively. Liquidity products saw net inflows of $14 billion in the third quarter.
Net market depreciation added $77 billion to net outflows in the quarter, while acquisitions added $6 billion to net inflows.
The asset management unit recorded third quarter net revenues of $1.82 billion, a 68% jump from the second quarter and a 20.1% decline from the third quarter of 2021.
Goldman Sachs attributed the year-over-year decline in net revenues primarily to "significantly lower net revenues in equity investments and lending and debt investments, partially offset by significantly higher net revenues in management and other fees."
A Goldman Sachs spokesman also provided some details about the company's plans to combine its asset and wealth management segments. As part of this reorganization, the company's direct-to-consumer business, Goldman Sachs Marcus, will be brought into wealth management.
According to the spokesman, in connection with the reorganization, Marc Nachmann will become global head of the new combined division, with "responsibility for the strategy to operate a fully scaled and integrated franchise for advice, solutions and execution across public and private markets."
"This isn’t about headcount reduction," a spokesman for Goldman Sachs said. "It’s about aligning our business structure to serve clients and grow. The asset and wealth management are highly complementary."
Mr. Nachmann will report to John Waldron, president and chief operating officer of Goldman Sachs Group.
Mr. Nachmann is currently global co-head of the global markets division.
Julian Salisbury will become chief investment officer of AWM, "overseeing investment strategy and leading investment teams across public and private markets." He will also report to Mr. Waldron.
Mr. Salisbury is currently global co-head of Goldman Sachs Asset Management.
Luke Sarsfield will become chief commercial officer of AWM and will report to Mr. Nachmann. Mr. Sarsfield is currently global co-head of Goldman Sachs Asset Management.
These new changes will become effective on December 1, the spokesman added.
In an earnings call Tuesday, David Solomon, chairman and chief executive officer, said the global economy continues to face significant headwinds, inflation remains high and central banks are raising interest rates at a pace not seen in decades.
"Meanwhile, equity markets are well-off the recent highs. Geopolitical instability and energy shocks (are) an ongoing concern and GDP growth expectations are declining," according to the initial draft of the transcript.
He added: "(As) we head into the fourth quarter, my sense is that the outlook will remain unsettled. So, economic performance will vary by region. I'll also expect volatility to persist, as markets continue to digest these factors."
Regarding the planned reorganization of the asset management and wealth management units, Mr. Solomon said: "Changes (will) further strengthen our core businesses, accelerate our ability to scale the growth platforms and improve efficiency."
