Assets rise at State Street but share price falls

State Street, the US-based combined asset manager and custody bank, missed profit estimates in its fourth-quarter financial results despite reporting a gain of 4.6% in assets under management.

Excluding one-off items, the company made $1.15 (€0.84) a share in the fourth quarter, more than it made in the same quarter of the previous year. But the figure was less than the $1.19 a share that analysts polled by Thomson Reuters had predicted.

The company now has $2.3 trillion – or €1.7 trillion – under management, making it among the largest asset managers in the world. The company also reported a rise of 5.4% in assets under custody and administration.

Joseph L Hooley, State Street chairman, president and chief executive, insisted 2013 was a good year for the company “despite both the ongoing headwinds created by the low rate environment and the increasing regulatory cost and complexity”. 

Earlier this month, BlackRock released its fourth-quarter results, showing that the firm increased its assets under management to $4.3 trillion – or €3.1 trillion – compared with $3.8 trillion at the end of 2012.

Laurence D Fink, chairman and chief executive of BlackRock, says the growth was fuelled by net inflows of $117 billion. 

Unlike State Street, BlackRock beat analyst expectations with its fourth-quarter earnings, which were 24% higher than in the same quarter of 2012. The firm’s share price rose, seeming to underline its position as the world’s biggest asset manager by assets.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST