GLOBAL – Second-quarter pre-tax income at Morgan Stanley Investment Management fell 16% to $175m (€144m) from $209m a year before.

Net revenues at the division fell 7% to $642m. This reflected lower private equity revenues and was partially offset by an increase in revenues generated by higher average assets under management.

Total assets under management within the unit rose 8% to $416bn, or $32bn. “The increase over the past year resulted primarily from market appreciation,” the New York-based firm said.

Institutional assets were up $28bn at $217bn – “reflecting sales of liquidity products and market appreciation”.

Total earnings at the bank – which is searching for a new chief executive after a boardroom row – plunged 24% to $928m. Net revenues slipped 9% to $6.0bn.

Outgoing chairman and CEO Philip Purcell said: "Our firm can be proud that despite some difficult markets and trying circumstances we have stayed focused on clients and produced substantial profits for our shareholders."

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