GSAM revenues up in second quarter
The asset management division at US bank Goldman Sachs reported a 10% increase in revenues for the second quarter of its financial year, defying turbulent equity markets and skittish investors to grow its assets under management by $22bn (€14.2bn) over the period.
Net revenues at Goldman Sachs Asset Management for the three months to the end of May were $1.16bn, 10% higher than the same period last year.
The rise comes after higher management and other fees, according to the firm's quarterly report published today. Management fees increased from $1bn in the second quarter of last year to $1.15bn for the period this year, while incentive fees fell from $20m to $8m.
Over the three months, the division's total assets under management increased from $873bn to $895bn, thanks to $16bn of market appreciation and $6bn of net inflows, Goldman Sachs said.
The increase primarily reflected a rise in value of its equity assets and net inflows into money market and fixed income strategies, which were partially offset by net outflows in equity assets, according to the quarterly report.
As a whole, the bank overcame negative analyst expectations as net profits fell by only a tenth to $2.1bn. Analysts had predicted a fall in profits of as much as two thirds before today's announcement.
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