Asset Management

Asset management sentiment stepped up broadly this quarter, with the group average rising from 7.36 to 8.18 and ten of eleven companies moving. Eight moved higher, and the two that eased did so from elevated levels. The custody banks led the improvement: State Street (STT) jumped from 6 to 9 on record quarterly revenue of $3.8 billion, up 16% year-over-year excluding notable items, its ninth consecutive quarter of positive operating leverage, and a double guidance raise — fee revenue from 4-6% to 7-9% and NII from low single digits to 8-10%. Its SPYM low-cost S&P 500 ETF ranked number one in asset-gathering globally with $27 billion of inflows, and FX trading revenue rose 29% to $435 million on record client volumes.