Goldman Sachs 2013 Annual Report Download - page 56

Management’s Discussion and Analysis
The table below presents the operating results of our
Investment Management segment.
Year Ended December
in millions 2013 2012 2011
Management and other fees $4,386 $4,105 $4,188
Incentive fees 662 701 323
Transaction revenues 415 416 523
Total net revenues 5,463 5,222 5,034
Operating expenses 4,354 4,294 4,020
Pre-tax earnings $1,109 $ 928 $1,014
The tables below present our period-end assets under
supervision (AUS) by asset class and by distribution
channel, as well as a summary of the changes in our assets
under supervision.
As of December
in billions 2013 2012 2011
Assets under management $ 919 $ 854 $ 828
Other client assets 123 111 67
Total AUS $1,042 $ 965 $ 895
Asset Class
Alternative investments 1$ 142 $ 151 $ 148
Equity 208 153 147
Fixed income 446 411 353
Long-term AUS 796 715 648
Liquidity products 246 250 247
Total AUS $1,042 $ 965 $ 895
Distribution Channel
Directly distributed:
Institutional $ 363 $ 343 $ 294
High-net-worth individuals 330 294 274
Third-party distributed:
Institutional, high-net-worth individuals
and retail 349 328 327
Total AUS $1,042 $ 965 $ 895
1. Primarily includes hedge funds, credit funds, private equity, real estate,
currencies, commodities and asset allocation strategies.
Year Ended December
in billions 2013 2012 2011
Balance, beginning of year $ 965 $895 $917
Net inflows/(outflows)
Alternative investments (13) 1 (1)
Equity 13 (17) (5)
Fixed income 41 34 (9)
Long-term AUS net inflows/(outflows) 41 118 2(15) 3
Liquidity products (4) 3 (12)
Total AUS net inflows/(outflows) 37 21 (27)
Net market appreciation/(depreciation) 40 49 5
Balance, end of year $1,042 $965 $895
1. Fixed income flows for 2013 include $10 billion in assets managed by the
firm related to our Americas reinsurance business, in which a majority stake
was sold in April 2013, that were previously excluded from assets under
supervision as they were assets of a consolidated subsidiary.
2. Includes $34 billion of fixed income asset inflows in connection with our
acquisition of Dwight Asset Management Company LLC and $5 billion of
fixed income and equity asset outflows related to our liquidation of Goldman
Sachs Asset Management Korea Co., Ltd.
3. Includes $6 billion of asset inflows across all asset classes in connection with
our acquisitions of Goldman Sachs Australia Pty Ltd and Benchmark Asset
Management Company Private Limited.
The table below presents our average monthly assets under
supervision by asset class.
Average for the
Year Ended December
in billions 2013 2012 2011
Alternative investments $ 145 $149 $152
Equity 180 153 162
Fixed income 425 384 353
Long-term AUS 750 686 667
Liquidity products 235 238 240
Total AUS $ 985 $924 $907
54 Goldman Sachs 2013 Annual Report