Goldman Sachs Group said today that its asset management business posted record net revenues of $1.47 billion for the year, an increase of 10% from 2000.
The windfall was driven by increasing assets under management, which grew 11% during the year to $351 billion with inflows of $67 billion. The inflows were mostly directed at money market products. And the boost offset declining equity asset values that resulted from market depreciation, the firm said.
The news comes at the end of a difficult year for many fund companies, some of which posted declines in revenue of 2% to 4%.
In contrast, Goldman Sachs CEO Henry Paulson said, "We are pleased with the results. Looking ahead, while we remain cautious about the near-term operating environment, we are confident in...the firms longer-term growth prospects,"
The companys total net earnings for the year were US$2.31 billion, or $4.26 per diluted share. The earnings are down 29% from 2000 when it brought in $3.25 billion.