(updated with correction)
Assets under management at State Street Global Advisors, BNY Mellon and Goldman Sachs increased in the fourth quarter, while Northern Trust saw a decline, according to statements from the four firms issued Wednesday.
State Street Global Advisors reported $2.01 trillion in assets under management as of Dec. 31, up 2.6% from the prior quarter and up 3% from the year before, according to a news release from parent State Street Corp.
Investment management fees were $221 million in the fourth quarter, up 12.8% from the previous quarter and up 1.4% from a year prior.
“In the fourth quarter, we continued to experience favorable growth in servicing and management fees, and in addition, we saw some improvement in trading services revenue compared to the third quarter,” Joseph L. Hooley, State Street's chairman, president and CEO, said in the news release.
“While near term we expect increased regulatory costs, as well as lower net interest revenue in 2011 due to pressure from the low interest-rate environment and the impact of the repositioning of the investment portfolio, we are well positioned to take advantage of global growth opportunities and, as the economy normalizes, we remain committed to our long-term financial goals,”
Net income at parent State Street for the latest quarter dropped to $81 million from $498 million a year earlier. Mr. Hooley is eliminating 1,400 jobs, or 5% of the work force, to lower costs as record-low interest rates eroded profit from investing and securities lending.
Asset servicing revenue climbed 19% compared with a year earlier as global markets rallied, raising assets under custody to a record $15.9 trillion, an increase of 15% from the previous year.
BNY Mellon Asset Management reported $1.17 trillion in AUM, up 3% from the previous quarter and 5% higher than the year before.
In an earnings release, parent Bank of New York Mellon Corp. said the money management unit's rise in assets from the prior quarter reflects “the impact of higher equity markets and new business, partially offset by the decline in the fixed-income markets and the relative strength of the U.S. dollar.”
Net income climbed to $679 million, from $593 million a year earlier. Fee revenue rose 16% to $2.97 billion, and assets under custody and administration rose 12% to $25 trillion.
Revenues from asset and wealth management operations came to $800 million, up 15% from the prior quarter and 7% greater than the year before.
Goldman Sachs reported $840 billion in assets under management, up 2% from the prior quarter but down 4% from the year before.
The quarterly gain was a result of appreciation in the value of client assets and inflows in money market assets, according to Goldman's earnings statement.
The earnings release for the latest quarter said market-related gains of $12 billion were buoyed by net inflows of $5 billion for the money management unit in the latest three-month period.
Net inflows for the latest quarter were $9 billion from money market strategies, while flows were flat for Goldman Sachs' fixed-income strategies. The company had net outflows of $2 billion from equity products and $2 billion from alternative offerings.
By asset class, Goldman Sachs' reported fixed-income assets of $340 billion as of Dec. 31, down 0.87% from the prior quarter and 8% higher than the year before. Money market strategies were the next biggest segment at $208 billion, up 4.5% and down 21%, respectively, followed by alternative investments at $148 billion, flat and up 1%; and equity assets at $144 billion, up 8% from Sept. 30 but down 1% from the year before.
Asset management revenues for the latest quarter came to $1.51 billion, up 18% from the prior quarter and up 14% the year-earlier quarter.
Northern Trust had AUM of $643.6 billion, a 2% decrease from the third quarter and a 3% increase from a year earlier.
Net income for the fourth quarter was $157.1 million, up 1% from three months earlier and 21.5% below the previous year. Consolidated revenues totaled $906.4 million, up 0.8% from three months and 5% less than the previous year.
“Our results for the fourth quarter and the full year have been constrained by the persistent low interest rate environment, which has negatively impacted net interest income and trust fee levels,” Frederick W. Waddell, Northern Trust chairman and CEO, said in a quarterly earnings statement. “The adverse market conditions have not, however, limited our ability to continue to grow and attract new business in our targeted markets.”
Net income fell to $157.1 million from $200.3 million a year earlier.
Bloomberg contributed to this story.