GLOBAL - Goldman Sachs Asset Management saw net revenues fall US$417m, or 28%, to $1.07bn in Q1 2006 compared to the same period last year.
That decline was largely due to massively reduced incentive fees of $90m for the quarter, compared to $739m in Q1 2006. Those losses were partially offset by a 31% increase in management and other fees.
Assets under management increased 26% from a year ago to a record $719bn, with as the firm increased assets by $43bn in Q1 alone.
That increase reflected non-money market net asset inflows of $24bn, primarily in equity and fixed income assets, money market net asset inflows of $11bn and market appreciation of $8bn in equity and fixed income assets.
Goldman Sachs Asset Management international head Stephen Fitzgerald said of the results:
"We are delighted to have started the year so strongly, with record assets under management of $719bn across our investment boutiques and net asset inflows of $35bn in the quarter. Although GSAM is less than twenty years old, this places us firmly in the top twenty asset managers in the world."
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.