State Street ETFs gain US$15bn in Q2
Flows into SPDR ETFs have helped State Street to reach US$5 trillion in assets under management.
In results for the three months to 30 June, the US firm said its investment management assets under management were US$5.1 trillion ($7.8 trillion). This is an increase of 17 per cent on the previous quarter driven by higher market levels and net inflows, the firm said.
This is divided between US$3.2 trillion in equity, US$700 billion in fixed income, US$525 billion in cash, US$449 in multi-asset class solutions, and US$225 billion in alternative investments.
Specifically in ETFs, they gained US$15 billion during the quarter which comprised US$8 billion in net flows into equity ETFs, US$3 billion into fixed income, and US$4 billion into alternative ones. This is substantially up from US$1 billion in the previous quarter.
The firm noted “continued ETF momentum and market share gains in US low cost ETF suite” had contributed to new business during the quarter.
State Street has 17 SPDR ETFs domiciled in Australia, the largest of which is the SPDR S&P 500 ETF, as well as five ETF model portfolios.
On a call, State Street chief executive Ron O’Hanley said: “Quarterly net inflows were over $80 billion, and we continued to gain market share in the strategically important US low-cost ETF market segment.
“The second quarter also offered further evidence of the strength and depth of our ETF franchise, as our US ETFs led the industry in trading volume, surpassing $4.6 trillion in total volume for the quarter, ranking number one in equity, number one in commodities, and among the top three in fixed income.”
Mark Keating, interim chief financial officer, said: “In ETFs, we saw healthy inflows across the product set, including US low-cost, gold, SPY, and US fixed income. Our US low-cost offering achieved continued market share gains in the quarter, reflecting the strength of our strategic positioning in this segment.”
AUTHOR
Laura Dew
Recommended for you
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
Franklin Templeton has reduced fees for two of its Brandywine fixed income funds and enacted a name change for its Global Income Optimiser fund.
