First-quarter financial performance results are in, and fees from money management operations are giving companies good news.
Fees from investment management, trust and custody activities helped State Street Boston Corp., Boston, report record earnings in the first quarter.
According to its quarterly report, fiduciary compensation - including money management, custody, record keeping and trust fees - grew 22% from the same period last year, to $286 million, making it the largest component of State Street's total revenue.
Total revenue at State Street grew to $531 million, up 20%. Assets under custody grew to $3.1 trillion from $2.5 trillion a year ago, and assets under management grew to $321 billion from $252 billion.
J.P. Morgan & Co., New York, reported gains in money management revenue outpaced revenue growth of most sectors.
Revenue from institutional money management and private client services rose 13% to $243 million from the same period a year ago, while total revenue for the firm grew 5% to $1.8 billion. Assets under management grew to $213 billion in the first quarter, a 15% increase from the same time last year.
Wrap fee asset growth set a record for PaineWebber Group's asset management operations, which helped make up for a drop in institutional assets in the first quarter.
PaineWebber, parent of Mitchell Hutchins Asset Management, posted asset management revenue of $121 million for the quarter, an increase from $108 million a year earlier.
Assets under management dropped to $44.6 billion in the quarter, from $45.9 billion a year ago, mainly because of a decrease in institutional assets to $10.6 billion from $14.3 billion. Wrap fee assets grew 30.3%, to $15.5 billion from $11.9 billion.
In Chicago, Northern Trust Co.'s record growth in trust and custody assets during the last year helped the bank increase its fee income, but that has been tempered by prices negotiated with its clients.
Trust fees from Northern Trust's corporate and institutional services unit - which includes institutional trust and custody - rose 8% to $78.4 million during the first quarter, compared with $72.8 million a year ago.
Total trust assets at Northern Trust grew 27% to $815.9 billion by March 31, and assets under management rose 19% to $136.3 billion.
Northern Trust bank officials said the increase in trust assets was moderated by lower fees for clients using the bank for several relationships, such as foreign exchange service, whose revenue is not reflected in trust fees.
Hoenig Group, parent of Axe-Houghton Associates, Rye Brook, N.Y., saw a 30% increase in asset management revenue in the first quarter, helping it iincrease first-quarter revenue 13.4%.
Total operating revenue for the quarter rose to $17.91 million from $15.79 million for the same period in 1996.
Investment management fee revenue from Hoenig Group operations increased 30.1% to $1.5 million during the first quarter, compared with $1.2 million a year earlier.