Assets under management at BNY Mellon hit a record $1.4 trillion at March 31, 2013, an increase of 9 per cent compared with the prior year and 3 per cent sequentially, the firm said today.

Both increases primarily resulted from net new business and higher market values, it said, as long-term inflows totaled $40 billion and short-term outflows came to $13 billion for Q1 2013. Long-term inflows benefited from liability-driven investments, as well as equity and fixed income funds, the firm added.

BNY Mellon reported that investment and other income fell from $139 million in Q1 2012 to $72 million in the first quarter of 2013, while it was $116 million in the final quarter of 2012.

“Both decreases reflect lower leasing gains and lower foreign currency remeasurement,” the New York-listed firm said.

“Additionally, the year-over-year decrease includes lower seed capital gains and the sequential decrease includes lower net gains on loans held for sale retained from a previously divested bank subsidiary,” it added.

Net interest revenue was $719 million at end-March 2013, down from $725 million in the previous quarter and further down year-on-year (Q1 2012: $765 million).

Net income in the first quarter of 2013 was $588 million, down from $619 million in the first quarter of 2012, and also down from $622 million in the final quarter of 2012.