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Money Management

SSGA’s assets dip 1.9% in quarter on $26 billion in net outflows, market depreciation

State Street Corp. headquarters in Boston

State Street Global Advisors reported $2.729 trillion in assets under management as of March 31, down 1.9% from the end of the previous quarter and up 6.6% from a year earlier, parent company State Street Corp. (STT)'s earnings release said Friday.

SSGA experienced total net outflows of $26 billion during the first quarter, compared to net inflows of $6 billion the previous quarter and net outflows of $11 billion during the first quarter of 2017. By asset class, equity outflows totaled $55 billion, partially offset by net inflows of $20 billion to fixed income, $7 billion to cash and $1 billion each to alternative investments and multiasset-class solutions.

Market depreciation for the first quarter was $40 billion, partially offset by $13 billion in foreign-exchange gains.

Equities had $1.67 trillion in AUM as of March 31, down 4.3% from the end of the prior quarter and up 7.1% from March 31, 2017, while fixed income accounted for $433 billion, up 4.6% from three months earlier and up 13.6% from the previous year.

Cash, meanwhile, accounted for $336 billion in assets as of March 31, up 0.3% from three months earlier and up 1.8% from March 31, 2017; multiasset-class solutions, $146 billion, down 0.7% from three months earlier and up 10.6% from 12 months earlier; and alternatives, $144 billion, down 1.4% from Dec. 31 and down 6.5% from a year earlier.

Assets under custody and administration were $33.284 trillion, up 0.5% from Dec. 31 and up 11.6% from March 31, 2017.

SSGA's investment management fees totaled $472 million in the first quarter, up 12.9% from the previous quarter and up 23.6% from the year-earlier quarter.

Revenue for the parent company was $3.02 billion for the quarter, up 6.1% from the prior quarter and up 13.2% from the year-earlier quarter. State Street's net income was $605 million for the first quarter, compared to net income of $334 million during the fourth quarter and net income of $446 million for the first quarter of 2017.