SSgA AuM grow US$300bn in 2006
GLOBAL - State Street Global Advisors' (SSgA) revenue increased 26% in 2006 as assets under management reached a record US$1.7trn in the Q4 2006, compared to $1.4trn in the year-ago quarter.
The investment management arm of State Street Corporation also achieved management fees of US$253m for the fourth quarter alone, up $40m (19%) from the $213m achieved in the same quarter in 2005.
SSgA said the increase in management fees reflected new business from existing and new clients and higher equity valuations in 2006.
State Street Corporation CEO Ronald Logue added SSgA had become a more meaningful contributor to the firm overall.
"Our strategy of more actively managing the balance sheet contributed to an annual increase of 21% in fully taxable-equivalent net interest revenue," said Logue.
Speaking about the firm's overall performance, he said he was pleased the firm had exceeded the financial goals set for the year, which had been helped by a favourable operating environment.
"Nearly every revenue item on our income statement increased in double digits on a year-over-year basis, and we achieved positive operating leverage again this year," said Logue.
"During 2007 we will build on the progress we made in 2006, particularly internationally. We continue to target positive operating leverage on an annual basis. We will continue to execute against our long-term financial goals of revenue growth of 8% to 12%, earnings per share growth of 10% to 15%, and return on equity of 14% to 17%. Our 2007 target is to achieve in the top half of these ranges.”
Total assets under custody at quarter end were $11.85trn, up 17%, compared with $10.12trn in the year-ago quarter.
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