We were disappointed in the results that our portfolio companies State Street (STT) and BlackRock (BLK) registered during the quarter, especially in relation to The Bank of New York Mellon (BK) and Northern Trust (NTRS).
However, we are seeing that BK and NTRS’s results were good only because the rest of the industry has done so poorly during this volatile market. We analyzed the results of the asset managers who have reported since State Street and BlackRock reported. We analyzed the results of Janus (JNS), Invesco (IVZ), Cohen & Steers and Ameriprise (AMP). While we’re no more pleased with the results of State Street and BlackRock than we was before, both companies did better on an organic growth basis than those three. BlackRock had a small positive organic growth rate of ~0.1% and State Street had an organic decline of -0.3%. IVZ had an organic decline of 1.3% as did Columbia. Janus had 2.3%. Cohen & Steers focuses on real estate investment products and saw a 2.67% organic decline due to a $1.5B withdrawal in institutional sub-advisory related assets. Lazard had organic growth of 0.8% and its total AUM declined by 8%. SEI Investments doesn’t itemize fund flows but we could see that its AUM declined by 3.7% on a linked quarter basis. We can see that State Street and BlackRock saw either a lower percentage of organic assets decline or a lower linked-quarter AUM decline than nearly all of its competitors, so we can see that the issues are mainly industry related as opposed to company specific.
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