JP Morgan Chase’s asset management unit posted net income of $386 million in the first quarter, a 17% decline from the year-ago quarter.

However, the unit saw record assets under management of $1.4 trillion, up 4% from the prior year. This came even as revenues slid 1% to $2.4 billion from the prior year. It also saw its assets under supervision hit a record $2 trillion, up 6% or $105  billion from the prior year.

Both increases were attributed to investors sending $17 billion into long-term products.“This is the twelfth consecutive quarter of long-term inflows," Chief Financial Officer Doug Braunstein said in a conference call Friday.

At the same time, the asset management unit’s expenses climbed 4% from the prior year, thanks to higher headcount-related expenses such as salaries and benefits. "The results were driven by underlying growth as well as market improvements,” Braunstein said. “The headcount is up as a result of the investment spending we’ve been talking about."

Overall, the entire bank handily beat Wall Street estimates for the first quarter, reporting profits of $5.4 billion on the back of growth in mortgage loans and an increase in investment banking from the fourth quarter. Still, the profits slid 3% from the year-ago period, even as overall revenue grew 6% in that time to $27.4 billion.

Elizabeth Wine writes for On Wall Street.