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Money management

SSGA’s assets flat in quarter, with $14 billion in net outflows

Updated with correction

State Street Global Advisors reported $2.723 trillion in assets under management as of June 30, flat from the end of the previous quarter and up 4.5% from a year earlier, parent company State Street Corp. (STT) reported Friday.

SSGA experienced total net outflows of $14 billion during the second quarter, compared to net outflows of $26 billion the previous quarter and outflows of $28 billion during the second quarter of 2017. By asset class, equity outflows totaled $22 billion, $2 billion from cash and $1 billion each from alternative investments and multiasset-class solutions. These outflows were partially offset by net inflows of $12 billion to fixed income.

Market appreciation for the second quarter was $35 billion, partially offset by $27 billion in foreign-exchange losses.

Equities had $1.67 trillion in AUM as of June 30, relatively unchanged from the end of the prior quarter and up 4.6% from June 30, 2017, while fixed income accounted for $437 billion, up 1% from three months earlier and up 9.8% from the previous year.

Cash, meanwhile, accounted for $333 billion in assets as of June 30, down 1% from three months earlier and down 0.3% from June 30, 2017; multiasset-class solutions, $144 billion, down 1.4% from three months earlier but up 10% from 12 months earlier; and alternatives, $142 billion, down 1.4% from March 31 and down 4.7% from a year earlier.

Assets under custody and administration were $33.867 trillion, up 1.8% from March 31 and up 9.1% from June 30, 2017.

SSGA's investment management fees totaled $465 million in the second quarter, down 1.5% from the previous quarter but up 17.1% from the year-earlier quarter.

Revenue for the parent company was $3.03 billion for the quarter, flat from the prior quarter but up 7.7% from the year-earlier quarter. State Street's net income was $698 million for the second quarter, compared to net income of $605 million during the first quarter and net income of $584 million for the second quarter of 2017.