Increases in assets under management ranged from 2% to 3.4% in the fourth quarter among several money management firms that released their year-end earnings statements.
To date, only one has reported a decline for the quarter.
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 Jan. 19 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.
J.P. Morgan Asset Management reported $1.3 trillion in assets under management as of Dec. 31, up 3.4% from the previous quarter and 4%, or $49 billion, from a year earlier, a result of higher market levels and net inflows in long-term products, largely offset by net outflows in liquidity assets, according to parent company J.P. Morgan Chase & Co.'s fourth quarter earnings report Jan. 14.
The asset management division reported $2 billion in net outflows for the latest quarter, with $25 billion in liquidity product outflows and inflows of $23 billion from long-term products. J.P. Morgan saw net inflows of $38 billion in the previous quarter.
The asset management division reported long-term AUM inflows of $69 billion for the year ended Dec. 31.
Net income for the asset management business was $507 million, up 21% from the prior quarter and 20% higher than a year earlier.
J.P. Morgan Chase reported fourth quarter net income of $4.8 billion, a 47% increase from a year earlier. Net income for the full year was $17.4 billion, up 48% from the prior 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 issued Jan. 19, 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.
Revenue 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 Asset Management reported $840 billion in AUM, 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 money market inflows, according to Goldman Sachs Group Inc. earnings statement Jan. 19.
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% in the quarter and down 21% for the year, followed by alternative investments at $148 billion, flat for the quarter and up 1% for the year; and equity assets at $144 billion, up 8% from Sept. 30 but down 1% from the year before.
Asset management revenue for the latest quarter came to $1.51 billion, up 18% from the prior quarter and up 14% the year-earlier quarter.
Morgan Stanley Investment Management reported $279 billion in assets under management or supervision as of Dec. 31, up 2% from the prior quarter and up 4.8% from the year-earlier quarter.
“The increase reflected market appreciation, partly offset by net customer outflows primarily in Morgan Stanley's money market funds,” according to a quarterly financial statement released Jan. 20.
Pretax income in the asset management business for the latest quarter came to $356 million, up 27.6% from the prior quarter, and up from a pretax loss of $37 million in the fourth quarter 2009.
Net revenue came to $858 million, up 6.5% from the prior quarter and up 40.5% from the year before.
So far, the sole manager to show a drop in AUM for the quarter is Northern Trust Global Investments, which reported assets under management 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 revenue 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 Corp. chairman and CEO, said in a quarterly earnings statement on Jan. 19.
“The adverse market conditions have not, however, limited our ability to continue to grow and attract new business in our targeted markets,” he added.
Net income fell to $157.1 million from $200.3 million a year earlier.
Other publicly traded money managers — including BlackRock Inc., Legg Mason Inc., Franklin Resources Inc. and T. Rowe Price Group Inc. — are scheduled to releases earnings and AUM statements by the end of January, with AllianceBernstein LP and Affiliated Managers Group Inc. expected to release statements in early February.
Bloomberg News contributed to this report.