SSgA's AUM climbs 13% in 2012; ETFs up 38%
By Rick Baert | January 18, 2013 12:48 pm
State Street Global Advisors had $2.089 trillion in assets under management as of Dec. 31, up 1.2% from three months earlier and 13.2% higher than the end of 2011, according to parent company State Street Corp. (STT)'s earnings statement Friday.
For the quarter, SSgA's passively managed AUM came to $1.598 trillion, up 2.6% over the three months and 18.1% above the previous year. Within that total, ETF-related AUM came to $340 billion, up 1.2% for the quarter and 37.7% higher than Dec. 31, 2011. Actively managed AUM stood at $124 billion, down 0.8% from the prior quarter and 8.8% above the year-earlier quarter. Meanwhile, cash-related AUM stood at $367 billion, down 16% from the prior quarter and 2.9% below the previous year.
SSgA's investment management fees rose 3.6% in the fourth quarter, to $260 million, and were up 28.7% for 2012, both on the strength of higher performance fees and stronger global equity markets, according to the statement.
Parent company State Street Corp. reported net income of $521 million, an increase of 10% from the prior quarter and 15% from the year before.
Parent company revenues, meanwhile, came to $2.463 billion, up 3.2% from the prior quarter and 7% higher than the year before.
Assets under custody totaled $24.371 trillion in the latest quarter, up 4% from three months earlier and 11.8% from the fourth quarter of 2011.
“While equity markets improved in the fourth quarter, our clients remained cautious for most of the quarter given the uncertainty surrounding the global economic environment and the U.S. fiscal cliff,” Jay Hooley, State Street Corp.'s chairman, president and CEO, said in the earnings statement. “We experienced strong demand for our solutions as evidenced by $649 billion in asset servicing wins and a continued strong pipeline.”
Also Friday, State Street announced it was cutting 630 jobs, or 2% of its workforce, this year “to capture further efficiencies and cost savings,” Mr. Hooley said in the statement.
Alicia Curran Sweeney, State Street spokeswoman, said specifics of where the cuts will be made haven't been announced but are mostly in “non-client-facing roles. We continue to add people to service new business and also to add expertise in areas of the business that are growing.”