State Street Global Advisors had a record $1.4 trillion in assets under management as of Dec. 31, up from $1.2 trillion in the previous quarter, according to parent State Street Corp.'s quarterly earnings report. The increase was credited to new business and increased stock prices.
State Street Corp. earned $184 million, or 55 cents a share, on revenue of $1.3 billion; that's a rise from $177 million, or 52 cents a share, on revenue of $1.2 billion, in the third quarter. Assets under custody rose to $9.5 trillion from $9 trillion.
"Having announced our 2005 goals in November 2004, we expect operating earnings per share growth of 10% to 15%, operating revenue growth of 8% to 12%, and an operating return on equity of 14% to 17%," Ronald E. Logue, State Street Corp. chairman and CEO, said in a news release. "In 2005, we continue to expect to deliver at the lower end of this range based on the current environment."
Several other money management firms reported fourth-quarter gains in assets under management in the 5% to 8% range.
• JPMorgan Chase reported assets under management of $791 billion, including $7 billion from its acquisition last year of a majority stake in Highbridge Capital Management, as of Dec. 31, an 8% increase from $735 billion in the third quarter.
• Northern Trust reported a record high $572 billion at the end of the fourth quarter, up 7% from the $535 billion at the end of the third quarter.
• Mellon Financial reported a total of $707 billion in assets under management as of Dec. 31, up 6% from the $670 billion as of Sept. 30.
• Assets under management at BlackRock rose 6% in the fourth quarter to $341.8 billion, from $323.5 billion at the end of the third quarter.
• At Bank of New York, assets under management reached $102 billion in the fourth quarter, up 5% from $97 billion as of Sept. 30.
Most of the firms cited net inflows from new and existing clients as well as higher equity valuations for the increase in assets under management.
"We closed 2004 on a strong note, both in terms of new business and investment performance," Laurence D. Fink, BlackRock chairman and chief executive officer, said in the firm's quarterly earnings news release. "Net new business was positive in each of our institutional client channels and, for the first time, inflows from international clients outpaced inflows from domestic investors for the full year."