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MONEY MANAGEMENT

SSGA assets up 4% in quarter despite $26 billion in institutional net outflows

SSgA

State Street Global Advisors reported $2.561 trillion in assets under management as of March 31, up 3.8% from three months earlier and up 11.5% from a year earlier, parent company State Street Corp. (STT)'s earnings release said Wednesday.

SSGA reported total net outflows of $11 billion during the first quarter, compared to net inflows of $16 billion during the fourth quarter and net inflows of $13 billion during the first quarter of 2016. Outflows in the quarter were led by $9 billion of net outflows from alternatives, $4 billion of outflows from equities and $2 billion of outflows from fixed income. These outflows were partially offset by net inflows of $3 billion into cash and $1 billion of net inflows into multiasset-class solutions.

Institutional net outflows were $26 billion, compared to net outflows of $5 billion for both the fourth quarter and first quarter of 2016. The institutional outflows were driven by $14 billion in outflows from equities, $10 billion in outflows from alternative investments and $3 billion in outflows from fixed income, partially offset by net inflows of $1 billion into multiasset-class solutions.

Exchange-traded funds, meanwhile, experienced net inflows of $12 billion for the quarter, compared to net inflows of $36 billion for the previous quarter and net inflows of $7 billion for the same period a year prior.

Market appreciation for the quarter totaled $88 billion.

Equities had $1.559 trillion in AUM as of March 31, up 5.8% from Dec. 31 and up 17.5% from March 31, 2016. Meanwhile, fixed income accounted for $381 billion, flat from three months earlier but up 16.5% from a year earlier; cash, at $335 billion was flat from three months earlier and down 12.1% from a year earlier; alternatives, $154 billion, down 1.9% from Dec. 31 but up 1.3% from March 31, 2016; and multiasset-class solutions, $132 billion, up 4.8% from three months earlier and up 21.1% from 12 months earlier.

Assets under custody and administration were $29.833 trillion, up 3.7% from Dec. 31 and up 10.7% from March 31, 2016.

SSGA's investment management fees totaled $382 million in the first quarter, up 5.8% from the previous quarter and up 41.5% from the year-earlier quarter.

Revenue for the parent company was $2.67 billion for the quarter, up 5.5% from the prior quarter and up 7.4% from the year-earlier quarter. State Street's net income was $446 million for the first quarter, up 19.9% from the previous quarter and up 39.8% from the first quarter of 2016.