BNY Mellon’s fourth quarter report showed an increase of 10% of assets under management and custody year-on-year, amounting to $22.3 trillion at the end of 2009.
Assets under management, excluding securities lending assets, amounted to $1.115 trillion. This represents an increase of 20% compared with the prior year, mainly due to the acquisition of Insight Investment Management in the fourth quarter of 2009.
Net long-term inflows reached $14 billion in the fourth quarter of 2009, but short-term outflows reached $22 billion.
However, Q4 securities lending fees fell 85%. Securities lending fee revenue totaled $29 million in the fourth quarter of 2009 compared with $187 million in 2008. The report blamed lower spreads and volumes for the fall.
Securities servicing fees, excluding securities lending fee revenue, also fell, totaling $1.212 billion, a decrease of $54 million year-on-year. According to the report, the year-on-year increase in asset servicing revenue was offset by lower clearing and issuer services revenue. Lower money market distribution fees also contributed to the fall in revenue.