Although earnings rose for State Street Corp. in the third quarter, money management subsidiary State Street Global Advisors continued to see net outflows, State Street Corp. reported Tuesday in its earnings release.
The company's third-quarter net earnings were $543 million, up 8.2% from the second quarter and up 0.6% from third quarter 2010.
SSgA's assets under management for the quarter ended Sept. 30 were $1.877 trillion, down 11.3% from the second quarter and down 4.2% from the third quarter in 2010.
The money management subsidiary had net outflows of $15 billion for the third quarter, down from $27 billion from a quarter earlier.
Investment management fees were $229 million, down 8.4% from the previous quarter and up 16.8% from a year earlier.
Assets under custody for State Street Corp. were $21.51 trillion, down 5.5% from the second quarter and up 6.3% from the third quarter a year earlier.
In an earnings conference call, State Street CEO Joseph Hooley said SSgA received $80 billion in new mandates in the third quarter.
“We continue to benefit from our concerted effort to cross-sell products between asset servicing and asset management,” he said. “For example, of our top 100 investment servicing clients, about 75% have a portion of their assets managed by SSgA. In addition, SSgA's portfolio solutions offering is attracting investment servicing clients, especially pension funds and the significant majority of our hedge fund and mutual fund clients invest in ETFs managed by SSgA.”
Mr. Hooley said most inflows were for passive investments and exchange-traded funds.
