MSIM's liquidity funds brought in the highest net inflows among asset classes — $3 billion — in the second quarter, compared with net outflows of $5.8 billion in the first quarter and net inflows of $1.5 billion in second quarter of 2018.
Alternatives followed with $2.2 billion in net inflows in the quarter vs. net outflows of $600 million in the previous quarter and net inflows of $1.3 billion in the year-earlier quarter.
Net inflows into equity strategies were $1.4 billion in the quarter ended June 30, the same amount as in the quarter ended March 31, compared with net inflows of $3 billion in the quarter ended June 30, 2018.
Fixed-income net inflows were $1.3 billion in the second quarter vs. net outflows of $1.2 billion in the first quarter and net outflows of $800 million in the second quarter of 2018.
Broken down by assets, MSIM managed $163 billion in liquidity assets as of June 30, up 2.5% from both March 31 and June 30, 2018. Alternative investments totaled $135 billion as of June 30, up 1.5% from three months earlier and up 2.3% from 12 months earlier.
Equity assets totaled $128 billion as of June 30, up 6.7% from March 31 and up 12.3% from June 30, 2018. Fixed-income assets totaled $71 billion as of June 30, up 4.4% from three months earlier and up 2.9% from a year earlier.
Net revenue for MSIM was $839 million in the most recent quarter, up 4.4% from the previous quarter and 21.4% higher than in the year-earlier quarter. The asset management unit's net investment management income was $128 million in the second quarter vs. $136 million in the first quarter and $104 million in second quarter of 2018.
Morgan Stanley's overall net revenue was down 7.7% to $10.2 billion in the three months ended June 30 compared with the prior quarter and down 3.4% from the same quarter in 2018. Parent company net income declined to $2.2 billion in the quarter ended June 30, from $2.7 billion in the prior quarter and $2.4 billion in the quarter ended June 30, 2018.
