State Street Global Advisors had $1.908 trillion in assets under management as of June 30, down 3.6% from the prior quarter and 9% below the previous year, according to parent company State Street Corp. (STT)'s second-quarter earnings announcement released Tuesday.
The hefty drop in AUM from the year before was partly because of declines in non-U.S. equity prices, according to the statement. While the S&P 500 index was up 1% for the 12 months ended June 30, the MSCI EAFE index was down about 18%, according to State Street.
For the quarter, SSgA's passively managed AUM came to $1.411 trillion, down 3.3%. Within that total, ETF-related AUM came to $305 billion, down 1.3%. Actively managed AUM stood at $118 billion as of June 30, down 6.3% from the prior quarter. Meanwhile, cash-related AUM stood at $379 billion, down 4.1% from the prior quarter.
The S&P was roughly flat for the quarter, while the MSCI EAFE was down about 6%. In that environment, State Street said, net new business for the quarter offset that decline in valuations, lifting SSgA's investment management fees 4.2% from March 31. Investment management fees were down 1.6% from the year-earlier quarter.
The statement didn't provide details on net inflows for the latest quarter.
For the quarter ended March 31, SSgA reported $10 billion in net inflows, with company executives noting that without a scheduled $31 billion redemption that SSgA was managing for the U.S. Treasury, net inflows would have come to $41 billion. For the year-earlier quarter, SSgA reported net outflows of $27 billion, which would have come to net inflows of $10 billion absent $37 billion in scheduled redemptions for the Treasury.
Parent company State Street Corp. reported earnings per common share for the quarter of 98 cents, up 15% from the prior quarter but down 2% from the year before.
Parent company revenues, meanwhile, came to $2.42 billion, little changed from the prior quarter but down 3% from the year before.