State Street Global Advisors reported $2.44 trillion in assets under management as of March 31, down 0.2% from Dec. 31 but up 2.6% from March 31, 2014, said parent company State Street Corp.’s earnings release.
The firm had net outflows of $38 billion during the first quarter, which it noted in its earnings release were “primarily due to seasonal outflows from SPY, our S&P 500 ETF.” SSgA had net inflows of $7 billion the previous quarter and net inflows of $4 billion in the first quarter of 2014.
The largest percentage decrease by asset class came in the firm’s multiasset-class solutions unit, where assets were down 14% from a year ago and 9% from three months earlier, to $115 billion.
CEO Joseph L. Hooley said on the earnings call almost all multiasset-class solutions outflows were from a single target-date fund rebalance.
AUM for State Street’s alternatives unit saw the biggest percentage increase as it was up 9% both from three months earlier and a year earlier, to $140 billion. The majority of the growth came in its passive offerings, which “includes real estate investment trusts, currency and commodities, including SPDR Gold Fund,” according to the earnings release.
Assets under custody and administration rose to $28.49 trillion, up 1.1% from Dec. 31 and up 3.7% from March 31, 2014. New asset servicing mandates totaled $214 billion during the quarter.
Firmwide revenue for the quarter was $2.61 billion, down 0.8% from the prior quarter and up 4.8% from the year-earlier quarter. Net income of $377 million was off about 20% from the prior quarter but up 5.9% from the first quarter of 2014.
Addressing the hiring of Ronald P. O’Hanley as the new CEO of SSgA, Mr. Hooley said he expects “more tweaks to the adjustment (in strategy) as opposed to overhauls.”