State Street Global Advisors AUM rises 3.1% in quarter

State Street Global Advisors had $3.15 trillion in assets under management as of Sept. 30, an increase of 3.1% from three months earlier and up 6.6% from third quarter 2019, parent State Street Corp.'s earnings release Friday showed.

The release attributed the AUM growth in the year ended Sept. 30 to performance and "net inflows from ETFs, partially offset by institutional net outflows."

SSGA had net outflow of $65 billion in the quarter ended Sept. 30, compared to net inflow of $23 billion in the prior quarter and $13 billion in the same quarter in 2019.

The largest net outflow in the current quarter — $58 billion — was from SSGA's cash fund. In contrast, the investment management unit's liquidity fund had net inflow of $28 billion and $15 billion in the quarter ended Sept. 30, 2019.

Long-term institutional strategies continued to experience net outflow but the total during the third quarter — $8 billion — was much lower than the $31 billion of net outflow in the second quarter and down from $14 billion in the same quarter a year earlier.

SSGA's suite of exchange-traded funds showed a significant slowdown of net inflow to $1 billion in the quarter ended Sept. 30 in contrast to $26 billion of net inflow in the previous quarter and $12 billion in third quarter 2019.

The impact of positive market returns and foreign exchange moves in the quarter ended Sept. 30 boosted SSGA's AUM by a total of $159 billion with $135 billion from investment performance and $24 billion from foreign exchange, the earnings report showed.

In comparison, total investment performance and foreign exchange impacts totaled $342 billion in the previous quarter and $22 billion in third quarter 2019.

SSGA's investment management fees rose 7.1% to $455 million in the quarter ended Sept. 30 from the prior quarter and up 2.2% from the year before.

State Street Corp. also experienced growth in assets under custody and administration of 9.3% to total $36.64 trillion as of Sept. 30 compared to the prior quarter and up 11.4% from Sept. 30, 2019.

In the earnings release, State Street said growth in assets under custody and administration was "mainly driven by higher period-end market levels and net new business growth and client flows."