UK - MERRILL Lynch Investment Managers has posted its fifth consecutive year-on-year rise in quarterly earnings.
MLIM said its $110m (£59m) second quarter pre-tax earnings were 77% up on the second quarter of 2003 and were the second highest quarterly earnings it had recorded for two years.
Net revenues increased 18% to $389m (£209m), driven primarily by increased asset values and improvement in the mix of assets under management.
MLIM’s pre-tax profit margin was 28.3%, up nearly 10 percentage points from 18.8% for the same period last year.
MLIM also said investment performance had exceeded its expectations. More than 70% of MLIM’s global assets under management beat their respective benchmarks or medians for the one, three and five-year periods ended May 2004.
One disappointment for MLIM was the fact that its total assets under management fell during the second quarter to $488bn (£263bn), compared to the $513bn (£276.5bn) it had at the end of first quarter.
MLIM attributed the fall to outflows from US institutional cash products as short-term interest rates rose, which “more than offset” the net inflows it had into its equity products.
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
The Pensions Regulator (TPR) is "working closely" with government contractor Interserve and the trustees of its defined benefit (DB) pension schemes, it has confirmed.
The industry has welcomed the Department for Work and Pensions' (DWP) consultation on defined benefit (DB) consolidation as a way to address scheme covenant issues.
BMO Global Asset Management has opened a UK fiduciary management business, promising a "truly open architecture" approach to deliver "better client outcomes".