Asset Management Business Grows Despite Earnings Decrease
Although
Raymond (Chip) Mason,
The firm's asset management business proved to be the one bright spot in the second quarter for the firm, with assets under management increasing in the second quarter to $145.6 billion, up 15% from the second quarter of 2000. Assets under management increased 4% from the first quarter, making it the 40th consecutive quarter assets rose, according to the company.
Driving the growth in assets were Western Asset Management, an institutional fixed-income affiliate,
Investment advisory and related fees from the firm's asset management business increased 8% from the first quarter, representing 49% of the company's total net revenues in the second quarter.
'In asset management, which has been our primary growth business, total assets under management and total asset management fees are again at all time highs, and the trend remains quite positive as we continue to increase our assets across the entire group,' Mason said.
Mason has hopes the firm's profitability will be improved by the recent acquisitions of Private Capital Management and Royce & Associates.
