State Street Hurt by Hedge-Fund Outflows
April 26 2017 - 8:31AM
Dow Jones News
By Austen Hufford
State Street Corp. posted increases in assets under custody and
administration, as market appreciation and growth in U.S. asset
managers and electronically traded fund flows were partially offset
by continued outflows from hedge funds.
Last month, State Street begin pushing big companies to put more
women on their boards by demanding change at firms without any
female directors. The company was also responsible for placing the
now-viral "Fearless Girl" statue of a young girl facing Wall
Street's iconic bronze bull.
The company is also developing a tool for asset managers,
pensions and endowments that lets them screen investments for
environmental, social and governance risks, aimed at capitalizing
on the appetite for responsible investing.
The company said it had first-quarter net outflows of $11
billion with $12 billion in exchange-traded funds inflows being
offset by a net $26 billion institutional outflow.
In all for the quarter, the Boston-based trust bank reported
earnings of $446 million, or $1.15 a share, up from $319 million,
or 79 cents a share, a year before. On an operating basis, earnings
were $1.21 a share. Revenue grew 7.4% to $2.67 billion.
Analysts polled by Thomson Reuters had expected $1.10 a share in
earnings on $2.74 billion in revenue.
Assets under custody and administration increased 11% to $29.83
trillion from a year prior and 3.7 from the previous quarter.
Assets under management increased 12% to $2.56 trillion and 3.8%
from the fourth quarter.
Fees, which represent about 80% of the bank's top line, grew
9.1% to $2.2 billion. Expenses increased 1.8% from a year earlier
to $2.09 billion on higher compensation costs.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 26, 2017 08:16 ET (12:16 GMT)
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