GLOBAL – Morgan Stanley’s investment management arm has gained 45 billion dollars (36.7 billion euros) in institutional assets under management in the past year, the firm said in its third-quarter earnings report.

“Institutional assets were 200 billion dollars, an increase of 45 billion dollars from a year ago,” the group said. “The increase in institutional assets reflected market appreciation and the continuation of robust growth in liquidity products.”

Total AUM in the division, including retail, rose 49 billion dollars to 394 billion dollars, it added.

Pre-tax income at the arm rose 33% to 217 million dollars from the prior year quarter, while net revenues were up 16% at 692 million dollars “driven by higher investment gains and an increase in average assets under management”.

Overall, the New York-based firm reported a 34% decrease in net income to 837 million dollars for the quarter. Net revenues were three percent higher than a year ago at 5.4 billion dollars.

"Our firm continued to generate significant momentum with clients,” said chairman and chief executive Philip Purcell. “In investment banking, we completed several landmark deals. Our Investment Management business and Discover Card also performed well, but reduced trading revenues resulted in lower quarterly earnings for the firm."