Asset management firms released first-quarter earnings reports and assets under management last month. Among those reporting:
• State Street Global Advisors, Boston, reported assets under management of $1.374 trillion as of March 31, up 1.5% from the previous quarter and 11% higher than the year before, on the back of both net inflows and market appreciation. Investment management fees came to $177 million for the first quarter, up 20% from $147 million for the first quarter of 2004. Parent company State Street Corp. reported net income of $226 million, up 4% from $217 million a year ago.
• Mellon Financial Corp., Pittsburgh, reported assets under management reached a record $729 billion at the end of the first quarter, up from $707 billion for the fourth quarter and $679 billion a year earlier. Assets under custody also reached a record $3.29 trillion, up from $3.23 trillion at the end of the fourth quarter and $2.82 billion a year ago. Net income rose to $255 million as of March 31 on revenue of $1.18 billion, from $192 million on revenue of $1.01 billion in the fourth quarter. Mellon earned $245 million on revenue of $1.03 billion in the first quarter of 2004.
"In the first quarter, we were able to demonstrate strong net flows in our institutional asset management businesses, a strong quarter for private wealth management, increased client volumes in securities lending and foreign exchange and significant wins in asset servicing," Martin G. McGuinn, chairman and CEO of Mellon Financial, said in a news release.
• Chicago-based Northern Trust Corp.'s assets under management increased to $589 billion for the first quarter, from $572 billion in the fourth quarter and $521 billion a year ago. Assets under custody rose to a record $2.62 trillion, from $2.55 trillion in the prior quarter and $2.02 trillion a year ago. Net income was $139.1 million as of March 31, up from $132.6 million in the fourth quarter and $127.5 million a year earlier. First-quarter revenue rose to $621.1 million from $603.1 million in the previous quarter and $578.2 million a year ago.
"This performance was driven by record fee income, strong net interest income growth and disciplined cost management," William A. Osborn, the company's chairman and CEO, said in a news release.
• AMVESCAP PLC, London, reported assets under management of $375.4 billion in the first quarter, down 1.8% from the previous quarter and down 1.6% from the year-earlier period, confirmed Chris Townsend, spokesman. The company reported profit after taxes of £38 million ($72.6 million), down 20% from the year before.
• Janus Capital Group, Denver, said assets under management slipped to $132.2 billion in the first quarter, from $139 billion at the end of 2004 and $145 billion a year ago. The first-quarter decline reflects long-term net outflows of $1.9 billion, market depreciation of $2.6 billion and money market net outflows of $2.3 billion, according to the company's 8-K filing. Investment management fees totaled $173.1 million in the first quarter, down from $199.2 million a year ago. GAAP net income was $19.6 million as of March 31, up from $18.2 million in the fourth quarter and a net loss of $22.1 million for the same period last year. First-quarter revenue fell to $216 million from $221.5 million in the previous quarter and $249.9 million a year ago.
"During a challenging market environment, we're encouraged by the progress we've made stabilizing flows and increasing gross sales," Steven Scheid, Janus chairman and CEO, said in the filing. "We're investing prudently in our business, particularly in our investment and distribution initiatives, while carefully managing our expenses." The quarterly results do not reflect a previously disclosed $2.2 billion redemption by ING U.S. Financial Services that was expected to occur in March, but was delayed, according to the filing.
• Merrill Lynch Investment Managers, Plainsboro, N.J., reported assets under management of $479 billion at the end of the first quarter, down 4% from the previous quarter and down 7% from the first quarter of 2004, as outflows from money market funds more than offset net inflows of longer-term assets, according to a news release. Net revenue came to $414 million, up 3% from the year before, while pretax earnings jumped 18% to $127 million for the same period. Parent company Merrill Lynch reported quarterly net earnings of $1.21 billion, down 3% from the firm's record earnings of $1.25 billion in the year-earlier quarter.
• Alliance Capital Management Holding LP, New York, and its money management arm, Alliance Capital Management LP, reported $534 billion in assets under management, down $11 billion, or 2%, from February. Assets managed in growth and value equity declined by $4 billion each to $118 billion and $195 billion, respectively. Alliance said the decline in assets should put its first-quarter earnings below "current analyst expectations of 68 cents per Alliance Holding unit," according to a news release. John Meyers, Alliance Capital spokesman, declined to elaborate on the press release.
• Franklin Resources Inc., San Mateo, Calif., reported preliminary total assets under management of $412.1 billion, down $3.8 billion, or 0.9%, from a month earlier, said Stacey Johnston, spokeswoman.
• Calamos Asset Management Inc., Naperville, Ill., reported $38.2 billion in assets under management, down $300 million, or 0.8%, from the end of February, said Maryellen Thielen, Calamos spokeswoman. She would not comment on the drop.