UK - Merrill Lynch Investment Managers (MLIM) recorded a net inflow in assets under management of US$12bn in the third quarter, with total assets under management reaching $524bn.
MLIM said the $524bn was up 10% on the previous year with net inflows in Q3 boosted in part by the strength of institutional business in Europe and the Americas.
Net inflows for Q3 represented the highest net inflows in 19 quarters.
MLIM's growth was also attributed in part to Philips’ decision earlier this year to hive off its e13.5bn pensions asset management business to the firm. This accounted for $18bn of the $524bn recorded at the end of Q3.
MLIM said Q3 2005 net revenues were $456m, up 22% from Q3 2004, driven by “higher average long-term asset values, as well as an improvement in the fee profile of assets under management”.
Stan O'Neal (pictured), chairman and chief executive officer of Merrill Lynch, said: Our broad scope of investments over the past two years, in new people, businesses and technology, has enhanced our ability to serve clients and grow our business. As these investments mature, they will further enhance our capabilities and results.
Pretax earnings were $162m, up 46% from the year-ago quarter, due primarily to higher net revenues, but also lower non-compensation expenses, which included a net insurance recovery of $15m related to previous litigation. MLIM's pretax margin was 35.5%.
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