Rising tides, including stock prices and fear over interest rates, raised all asset management boats, as did Goldman Sachs
For the second quarter of 2014, Goldman company-wide reported
net revenues of $9.13 billion and net earnings of $2.04 billion. It reported diluted earnings of $4.10 per share compared to $3.70 per share.
For the investment management division, net revenues were $1.44 billion, up 8 percent from a year ago, and largely the result of higher fees.
Assets under management reached $1.007 trillion, up 19 percent from a year ago. Equity assets were up 34 percent from a year ago to $231 billion and fixed income was up 25 percent to $516 billion.
Alternatives were up 3 percent to $147 billion.
Chief financial officer and executive vice president Harvey Schwartz
described three themes that helped drive Goldman's asset growth in the company's analyst conference, of which SeekingAlpha has provided a transcript
These themes were:
1. Increasing client concern about interest rates generated growing demand for unconstrained fixed income strategies
2. Increasing appetite for incremental yield and uncorrelated returns drove flows into yield-focused strategies, as well as liquid alts.
3. Goldman has been working to bulk up in the DC I-O space, gradually growing product offerings in the space. To that end, Goldman purchased in September 2013 the stable value business of Deutsche Asset & Wealth Management, which contributed to $11 billion of inflows this quarter.
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