State Street Global Advisors, BNY Mellon Asset Management and Goldman Sachs Asset Management all reported gains in AUM for the year ended June 30 on Tuesday. But in their parent companies' earnings reports, results were mixed for the second quarter.
SSgA had $2.116 trillion in assets under management as of June 30, marginally lower than the firm's $2.120 trillion at the close of the prior quarter but up 15.3% from the year before.
On a conference call Tuesday outlining parent company State Street Corp.'s second-quarter results, Joseph L. Hooley, the company's chairman, president and CEO, said SSgA saw net outflows of $27 billion for the quarter, reflecting the winding down of a hefty portfolio of mortgage-backed securities the firm is managing for the U.S. Treasury. Setting aside that one account, SSgA would have reported net inflows of $10 billion for the latest three months, Mr. Hooley said.
Asked about the latest trends in the market, Mr. Hooley said the move by investors into riskier assets that began picking up momentum during the second half of 2010 may be subsiding, with healthy demand over the past three months for SSgA's passive, cash and ETF offerings potentially pointing to a decline in confidence.
For the quarter, SSgA reported passive AUM of $1.53 trillion, down 1.7% from the prior quarter but up 20% from the year before. The company's actively managed AUM, meanwhile, stood at $123 billion, up 5.1% and 22%, respectively. The company's cash AUM came to $463 billion, up 3.8% from the prior quarter and up 1.1% from the year before.
For the latest quarter, investment management fees came to $250 million, up 5.9% from the prior quarter and up 24.4% from the year before. The State Street earnings release attributed those gains to the rise in worldwide equity markets as well as to the January 2011 acquisition of Bank of Ireland's asset management business.
Bank of New York Mellon, meanwhile, reported a record $1.3 trillion in combined assets under management for its BNY Mellon Asset Management unit and its wealth management arm as of June 30, up 3.7% from the prior quarter and up 22% from the year before.
For the quarter, the company reported a record $32 billion in net inflows for its long-term products. After accounting for $1 billion of money market outflows, the company had $31 billion in net overall inflows, up from $26 billion for the prior quarter and net outflows of $5 billion for the year-earlier quarter.
Market- and currency-related gains, meanwhile, came to $14 billion for the second quarter.
Investment management-related revenue for the second quarter came to $912 million, down 1% from the prior quarter but up 11% from the year before.
And Goldman Sachs Asset Management reported $844 billion in assets under management as of June 30, up 0.5% from the prior quarter and up 5.2% from the year before.
For the latest quarter, market-related gains of $7 billion offset net outflows of $3 billion — down from the prior quarter's outflows of $12 billion and year-earlier outflows of $24 billion.
GSAM's fixed-income strategies garnered net inflows of $7 billion for the latest quarter, but those gains were more than offset by net outflows of $5 billion, $3 billion and $2 billion, respectively, for the company's money market, alternatives and equity strategies.
As of June 30, GSAM reported fixed-income assets of $352 billion, up 4% from the prior quarter and up 8% from the year before. Money market assets came to $196 billion, down 2% and down 4%, respectively, for the same periods. Alternatives AUM stood at $148 billion, down 2% from the prior quarter but up 1% from the year before. Equities, likewise, came to $148 billion, down 1% from March 31, but up 18% from the year before.
Net revenues in investment management came to $1.27 billion, little changed from the first quarter and up 12% from the year before.