Assets under management fall at GSAM
Goldman Sachs Asset Management reported a fall in revenues and assets under management in the three months to the end of August, despite inflows of $12bn (€8.4bn) into its alternatives and fixed income funds over the period.
Net revenues of $1.13bn for the period were 3% down on the previous quarter and 6% lower than the $1.19bn posted in the same period last year. The slump was attributed to lower management and incentive fees due to there being one less week in this year's fiscal calendar.
Goldman Sachs' assets under management fell by 4% or $32bn to $863bn over the quarter, but were up 8% from $796bn at the same point last year.
Lloyd Blankfein, chairman and chief executive officer, Goldman Sachs, said: "This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations."
Blankfein said the bank had produced a solid performance in a tough environment.
The group saw outflows of $7bn from money market funds combined with a $25bn in asset depreciation mainly through its equity holdings, whilst inflows of $9bn and $3bn into alternative and fixed income classes helped bolster its balance sheet.
Goldman Sachs also cut its asset management operating expenses by 23% over the third quarter, compared to second quarter, and by 37% compared to the same period last year.
--write to epfeuti@efinancialnews.com
del.icio.us
Digg
Newsvine
reddit
StumbleUpon
