Several money managers reported increases in assets under management for the quarter ended June 30.
State Street Global Advisors, Boston, reported $1.37 trillion in assets under management as of June 30, unchanged from the end of March but up 12% from the second quarter 2004. Parent company State Street Corp.'s second-quarter revenue from management fees came to $173 million, down 2% from the first quarter but up 13% from the year-earlier period. SSgA spokesman Brian Willinsky said the group doesn't break out net profit figures for the asset management arm. Second-quarter net income for State Street Corp. was $220 million, down 3% from the previous quarter but unchanged from the year before.
JPMorgan Chase & Co., New York, reported $783 billion in assets under management at the end of the second quarter, a 0.9% increase from the first quarter. The firm's institutional assets decreased 1.5% to $455 billion at the end of the second quarter, but revenue from institutional clients increased 30% to $313 million over the first quarter, largely because of JPMorgan's acquisition of Highbridge Capital Management last year. Global equity market appreciation also contributed to the growth, according to the firm's 8-K filed with the Securities and Exchange Commission.
Overall, the company reported net income of $1 billion for the second quarter, compared with a net loss of $500 million for the first quarter. The filing cited strong results in its card services, treasury and securities services and asset and wealth management business for the growth in income, and added that its investment bank's trading performance for the quarter was "weak," offsetting strong fees generated by the unit.
Mellon Financial Corp., Pittsburgh, reported $738 billion in assets under management at the end of the second quarter, a 1.2% increase from the first quarter and 9% higher than a year ago. The growth in the second quarter was mostly due to a $7 billion increase in the firm's institutional assets, which jumped to $126 billion as of June 30.
Mellon's net income from operations was $203 million in the second quarter, 33% less than the first quarter but 13% higher than the second quarter of 2004. Mellon attributed the year's growth to a 15% increase in investment management fees, to $437 million as of June 30, spurred by "net inflows, improved market conditions, a higher level of performance fees and impact of acquisitions," according to a news release from Mellon.
Northern Trust Corp., Chicago, reported $590 billion in assets under management for the second quarter, a 12% jump from first-quarter levels. The company attributed the increase to more demand for products and services, improved equity markets and new business, according to an 8-K filing with the SEC.
Northern Trust had overall net income of $150 million in the second quarter, an 8% increase from the first quarter. The growth was driven by trust, investment and other servicing fees, according to the filing.
BlackRock Inc., New York, reported $414.4 billion in assets under management as of June 30, an increase of 6% from the previous quarter and a jump of 34% from the second quarter 2004, according to a company filing.
BlackRock attributed the second quarter gain to strong institutional flows, which resulted in $15.6 billion in net new assets. For the year, the growth in AUM is a result of both new institutional inflows and the acquisition earlier this year of State Street Research and Management; SSRM portfolios had $50.7 billion in assets under management at the end of the second quarter, according to the filing. BlackRock's overall net income in the second quarter was $53.3 million, an 11% increase from the $48 million reported a year earlier. Revenue was $271.4 million for the second quarter, a 48% increase from the $183.8 million at the same period last year.
The firm attributed the increases to a rise in separate-account base fees, also related to increased flows and the SSRM acquisition.
Bank of New York reported $106 billion in assets under management at the end of the second quarter, a 4% increase from the first quarter. In its 8-K filing, the company cited growth in the assets of subsidiary Ivy Asset Management as one reason for the boost. It added that fees from its private client and asset management group totaled $122 million for the quarter, an increase of 8% from the second quarter 2004.
Bank of New York also reported second-quarter net income of $398 million, a 5% increase from the first quarter and a 7% increase from the second quarter of 2004. The results "reflect a strong, balanced performance," Thomas A. Renyi, chairman and chief executive officer, said in a release. He added that broad revenue growth and expense control produced the positive results.