State Street reported record assets under management of $4.34 trillion for its State Street Global Advisors money management arm, helped mainly by the continued momentum of equity markets, according to its first-quarter earnings call.
SSGA’s AUM as of March 31 was up "20% year-on-year, reflecting higher period-end market levels and net inflows, and 5% higher sequentially, primarily due to higher period-end market levels,” said Eric Aboaf, State Street vice chairman and chief financial officer, on the April 12 earnings call.
For the 12 months through March 31, SSGA garnered $142 billion in net inflows despite $9 billion in net outflows for the final three months of that time period.
State Street Chairman and CEO Ronald O’Hanley, on the earnings call, attributed the latest quarter’s net outflows to an anticipated redemption by a single institutional client. He didn’t name the client.
First-quarter management fees, up 12% on the year to $510 million, were the highest since the first quarter of 2022, helped by higher average market levels as well as net flows for the 12-month period.
However, executives suggested that market gains can’t be counted on to power continued fee growth over the remainder of 2024.
SSGA expects markets to remain little changed over the last three quarters of 2024, Abaof noted.
Still, that would position daily AUM averages to be up 5% quarter on quarter for the second quarter of 2024, and up 17% for the full year.
