Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. Online
April 19, 2011 01:00 AM

SSgA, BNY Mellon, Northern Trust see AUM, custody growth

Douglas Appell
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    State Street Global Advisors had $2.12 trillion in assets under management as of March 31, up 5.5% from the prior quarter and up 7.7% from the year before, according to a first-quarter earnings news release Tuesday by parent State Street Corp.

    Assets under custody at State Street totaled $22.6 trillion in the first quarter, up 5% from the previous quarter and 19% higher than a year earlier.

    In its news release, State Street attributed the jump in money management revenues to the rise in average month-end valuations for global equity markets and a positive impact from the company's acquisition of Bank of Ireland's $36 billion asset management business in January.

    For the latest quarter, SSgA's passively managed AUM stood at $1.56 trillion, up 5% from the prior quarter. By asset class, passively managed equities came to $703 billion, up 7.3%; passively managed fixed income slipped to $353 billion, down 2.2% from the prior quarter; exchange-traded funds, meanwhile, edged up to $260 billion, a gain of 2%, and “other” AUM, including currency, alternatives and multiasset class solutions, came to $239 billion, up 14%.

    SSgA's actively managed AUM, meanwhile, climbed 16% to $117 billion. Active equity AUM dropped 3.6% to $53 billion; actively managed fixed-income AUM rose 10% to $20 billion and actively managed “other” surged 57% to $44 billion.

    Cash assets rose 5% to $446 billion.

    Investment management fees for the latest quarter came to $236 million, up 6.8% from the prior quarter and up 11.8% from the year before. Those fees accounted for just over 10% of the parent company's overall revenues for the three-month period.

    Also on Tuesday, BNY Mellon Asset Management reported record assets under management, excluding securities lending assets, of $1.229 trillion as of March 31, up 4.9% from the prior quarter and up 11% from the year before.

    Assets under custody and administration for the quarter also set a record, at $25.5 trillion, up 2% from the end of 2010 and 14% higher than a year earlier. The yearly increase was attributed in part to the acquisitions of PNC Global Investment Servicing and Germany's BHF Asset Servicing in 2010.

    The company attributed the asset management gains to both higher market valuations overall and $31 billion of net long-term flows in the first quarter of the year. Those inflows were up sharply from $9 billion for the previous quarter and $16 billion for the year-earlier quarter.

    Partially offsetting those gains were $5 billion in money market outflows, which followed $6 billion of inflows for the prior quarter. There was $25 billion in money market outflows during the year-earlier quarter.

    Investment management fee revenue for the latest quarter, meanwhile, came to $747 million, up 3% from the prior quarter and up 11% from the year before.

    State Street Chairman, President and CEO Joseph Hooley and BNY Mellon Chairman and CEO Robert P. Kelly said their firms' foreign-exchange revenue hadn't been negatively affected by lawsuits on behalf of some public pension funds.

    “We've seen stability in the revenue and, in the pricing, stability has been there as well,” Mr. Hooley said in an interview with Bloomberg News.

    “We have seen very little impact from the recent scrutiny,” Mr. Kelly said Tuesdayduring a conference call with analysts. He added that litigation “is going to continue to be a risk.”

    Officials from states including California and Arkansas have sued the banks, claiming they defrauded pension funds by overcharging for some foreign-exchange transactions. California is suing State Street for more than $200 million in alleged overcharges and penalties.

    BNY Mellon has denied the allegations and said it will defend against the suits. State Street in October settled one suit from the state of Washington for $11.7 million. The company said contracts with the remaining plaintiffs were “significantly different” and that it will defend against those suits.

    Foreign-exchange revenue at BNY Mellon was $173 million, down 1% from the same quarter a year ago. Mr. Kelly blamed the decline on diminished volatility in currencies.

    State Street's forex revenue increased 19% from a year earlier “primarily due to changes in product mix,” the bank said in its earnings announcement without giving a dollar figure.

    BNY Mellon and State Street raised their dividends last month and announced share buybacks after the Federal Reserve approved the measures following a review of banks' financial strength. Both cut their payouts to investors in 2009 after plunging financial markets hurt earnings.

    Northern Trust reported $662 billion in assets under management in the first quarter, 7% above the previous quarter and 2% higher than a year earlier.

    Net income, however, fell 3.9% to $151 million the latest quarter, compared with $157.1 million in the fourth quarter and $157.2 million in the first quarter of 2010.

    Assets under custody totaled $4.4 trillion, up 1% from the fourth quarter and 17% from a year earlier.

    The decline in net income was due in part to persistently low interest rates, Frederick H. Waddell, Northern Trust chairman and CEO, said in a statement.

    Reporter Randy Diamond, News Editor Rick Baert and Bloomberg News contributed to this story.

    Related Articles
    BlackRock assets up 2.4% for quarter, 8.4% for year
    BlackRock, T. Rowe Price among Q1 asset gainers
    UBS Global assets up; AMG sets record
    Invesco assets rise 4.1% for quarter
    Money manager inflows, returns making for a strong beginning to 2011
    Recommended for You
    martin_luther_king_day_generic_i.jpg
    No P&I Daily on Martin Luther King Jr. Day
    Closed sign
    No P&I Daily over the holidays
    Happy_Thanksgiving_i.jpg
    No P&I Daily for Thanksgiving holiday
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing