Goldman Sachs reported a record $3.17 trillion in assets under supervision as of March 31, up $36 billion from $3.13 trillion the previous quarter and up from $2.84 trillion a year earlier.
“Our strong results this quarter have demonstrated that in times of great uncertainty, clients turn to Goldman Sachs for execution and insight,” said chairman and CEO David Solomon in the firm's earnings release. “While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients.”
During the first quarter, Goldman Sachs reported total assets under supervision had net inflows of $24 billion; fixed income products lead the way, with $14 billion in net inflows, followed by equity with $11 billion and alternative investments with $4 billion. Liquidity products saw $5 billion in outflows during the period and net market appreciation accounted for $12 billion in inflows.
The first quarter marked the 29th consecutive quarter of long-term fee-based net inflows, according to the earnings release.
Goldman Sachs reported that of the $3.17 trillion in assets under supervision, $2.33 trillion was in long-term investment products: $1.22 trillion in fixed income, $771 billion in equities and $341 billion in alternative investments. The firm reported that $840 billion of its assets under supervision were in liquidity products.
Goldman Sachs’ Asset & Wealth Management division generated net revenue of $3.68 billion for the first quarter, down 3% year-over-year and 22% lower than the fourth quarter of 2024. The firm pointed to “lower net revenues in equity investments and debt investments, partially offset by higher management and other fees,” for the quarterly change.
Speaking on the firm's earnings call about the current economic outlook, Solomon said the firm’s expectations for U.S. growth had fallen meaningfully – from over 2% to 0.5% – and their economists predict that the prospect of a recession “has increased.” It comes after President Donald Trump’s April 2 tariff announcement and then later 90-day pause announcement last week.
“We are encouraged by the administration’s recent actions to pursue a more gradual policy process that allows for considered negotiations with many countries,” Solomon said on the firm’s earnings call. “But how policies will evolve is still unknown. We are hopeful that feedback from companies, large and small, institutional investors and ultimately, consumers, will support an approach that will lead to greater economic certainty and long-term growth. In the meantime, markets will likely continue to be volatile until we have further clarity.”
Solomon noted that while there is a higher level of uncertainty, clients remain active, but want to understand how policy decisions will settle.
“I do think for a period of time, you know, there'll be some uncertainty around how certain things that were close, proceed forward,” he said. “But, you know, I would expect a significant amount of M&A activity through the rest of the year. But obviously, if the landscape got more constrained, you know, there's a risk of it slowing, but we're continuing to be out with clients doing the things that we do, and I don't see anything at the moment that leads me to believe that it's a fundamental shift.”
