State Street investment service assets under custody/administration at the end of Q4 has increased to a record $43.7 trillion, a 13% increase compared to the fourth quarter of 2020.
According to the firm’s Q4 2021 earnings report, the rise was primarily due to higher market levels, client flows and net new business growth.
Meanwhile State Street’s investment management division saw assets under management (AUM) as of quarter-end increase by 19% to $4.1 trillion, due to higher market levels and net inflows.
The investment firm also saw a rise in fee revenue by 4% which reflected strong servicing and management fees. It was partially offset by lower FX trading services and software and processing fees.
Ron O’Hanley, chairman and CEO, said: “We finished 2021 with a strong fourth quarter performance, contributing to a record year for fee revenue.
“We continued to successfully execute against our strategic priorities, while also delivering strong year-over-year financial results and business momentum, including positive operating leverage, meaningful pre-tax margin expansion and robust earnings growth.”
State Street Global Advisors has also confirmed the retirement of its president and CEO, Cyrus Taraporevala.
Taraporevala joined State Street in 2016, attaining his current position a year later. During his time in the role, State Street’s investment management pre-tax earnings grew by 67% and its end-2021 total AUM of $4.1 trillion is a 50% increase from the end of 2017 when he started in the position.
O’Hanley said, “In addition to the impressive financial results, Cyrus and his team at Global Advisors have contributed significantly to State Street’s overall mission to create better outcomes for the world’s investors and the people they serve.”
Taraporevala will remain in the role until his successor is found and the transition process complete, which is expected to happen in the latter half of this year. In the meantime, O’Hanley said that State Street’s focus in 2022 will be on revenue growth, expense discipline and the closing and integrating of its previously announced acquisition of BBH Investor Services.
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