Markets Are Down, But Buy-Side Firms, Vendors Find Profits

NEW YORK--Earnings reports were sober in tone for the second quarter of 2001. Despite the down markets, however, the asset management arms of big firms managed to show positive flows into assets under management. Net revenues may be down, but they are not negative.

Merrill Lynch Investment Managers saw net revenues at $559 million, an 8 percent decline from the second quarter of 2000, and a slight decline from first quarter revenues of $568 million. Thomas Patrick, Merrill Lynch's chief financial