GLOBAL – Morgan Stanley Investment Management gained $22bn (E16.5bn) in institutional assets in the fourth quarter – taking total institutional AUM to $222bn.

Earnings and revenues at the division rose 138% and 20% respectively in the quarter. It gained $22bn in institutional assets in the quarter and $58bn in the past year.

The bank said institutional assets under management or supervision rose to $222bn at the end of November – a 35% increase on the $164bn a year before. Total AUM rose 19% to $424bn.

Pre-tax income at MSIM came in at $231m, a 138% increase over last year. “The increase reflected a 20% increase in net revenues to $714m, driven by significantly higher investment gains and an increase in average assets under management.”

Overall, the bank reported fourth-quarter net income of $1.2bn on revenues of $5.4bn. "We are pleased with our fourth quarter and full year results,” said chairman and chief executive Philip Purcell.

“Fixed income and Discover Card had record years, investment banking activity has picked up significantly, and both equities and investment management made strong contributions to earnings.

“It's clear that our client focused strategy is working. Our focus in 2005 will be on improving margins and leveraging the strategic mix of our businesses."