US firm Boston Private Financial Holdings said assets under management within its wealth advisory and investment management business increased 10 per cent, or $2.4 billion, to $28.0 billion in the second quarter.

Assets inflows of $168 million were reported in the three months to 30 June, compared to outflows of $709 million in the first quarter of 2009, the firm said in its results statement. However, second quarter AuM flows were down $624 million compared to the same period in 2008. Total assets under management fell by 23 per cent on a year-over-year basis.

Fee income for the second quarter was $39.4 million, up $1.2 million, or 3 per cent, compared to the previous quarter. Fee income was down 24 per cent compared to the second quarter of 2008.

Within its private banking business, total deposits increased 4 per cent during the second quarter to $5.3 billion - an 18 per cent increase year-on-year.

Overall, Boston Private Financial Holdings reported a second quarter GAAP net loss from continuing operations of $7.3 million, down from a $5.2 million income in the previous quarter. Revenue for the second quarter was $96.8 million, down $1.4 million, or 1 per cent, on a linked quarter basis. Revenue declined 17 per cent compared to the same period in 2008.

Expenses for the second quarter were $82.5 million, up $8.0 million, or 11 per cent, on a linked quarter basis. Expenses were up 2 per cent compared to the same period last year.

“By focusing on our core competency of serving high net worth customers across the private banking, wealth advisory and investment management businesses, we will help to lead the way through these challenging economic times,” said Timothy Vaill, the firm’s chairman and chief executive.