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Money Management

SSGA’s AUM up 2.6% for quarter despite $25 billion in net outflows

State Street Corp. headquarters in Boston

State Street Global Advisors reported $2.673 trillion in assets under management as of Sept. 30, up 2.6% from three months earlier and up 9.3% from a year earlier, said parent company State Street Corp. (STT)'s earnings release Monday.

SSGA reported total net outflows of $25 billion during the third quarter, compared to net outflows of $28 billion during the second quarter and net outflows of $36 billion during the third quarter of 2016. Of the current quarter's outflows, $33 billion came from equities, $5 billion from fixed income and $1 billion from multiasset-class solutions. The outflows were partially offset by net inflows of $12 billion into cash and $2 billion into alternatives.

Institutional net outflows were $39 billion, compared to net outflows of $22 billion for the second quarter and net outflows of $15 billion for the third quarter of 2016. The institutional outflows for the third quarter were driven by $31 billion from equities, $8 billion from fixed income and $1 billion from multiasset-class solutions, partially offset by net inflows of $1 billion into alternative investments. Cash saw no net flows.

Exchange-traded funds experienced net inflows of $12 billion for the quarter, vs. net outflows of $4 billion for the previous quarter and net inflows of $12 billion for the same period a year earlier.

Market appreciation for the quarter totaled $67 billion.

SSGA had $1.64 trillion in equities as of Sept. 30, up 2.9% from June 30 and up 16.3% from Sept. 30, 2016. Fixed income accounted for $398 billion, unchanged from three months earlier bit up 1.8% from a year earlier. Cash, at $347 billion, was up 3.9% from three months earlier but down 1.1% from a year earlier. Alternatives were $153 billion, up 2.7% from June 30 but down 9.5% from Sept. 30, 2016, and multiasset-class solutions, at $135 billion, was up 3.1% from three months earlier and up 8% from 12 months earlier.

Assets under custody and administration were $32.11 trillion, up 3.5% from June 30 and up 10% from Sept. 30, 2016.

SSGA's investment management fees totaled $419 million in the third quarter, up 5.5% from the previous quarter and up 13.9% from the year-earlier quarter.

Revenue for the parent company was $2.85 billion for the quarter, up 1.3% from the prior quarter and up 8.6% from the year-earlier quarter. State Street's net income was $685 million for the third quarter, up 10.5% from the previous quarter and up 21.7% from the third quarter of 2016.