Press release
SS&C Finds Asset Managers' AUM Rebounded Solidly in Q1 2019
WINDSOR, Conn., June 6, 2019 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), today released the results of its Asset Manager Composite
About this update from Ss&c Technologies Holdings, Inc.
[{"type":"text","content":"WINDSOR, Conn., June 6, 2019 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC), today released the results of its Asset Manager Composite for the first quarter of 2019, which analyzes 181 publicly-traded firms. The results found that in Q1 2019, cumulative assets under management (AUM) rebounded by 8.5% to $12.942 trillion compared to $11.928 trillion in Q4 2019. This is just shy of the $12.961 trillion peak in Q3 2018.\n\n \n\"During Q1 2019, the U.S. equity markets bounced back from the turbulence we experienced in Q4,\" said Matthew Fronczke, Director, Strategic Business Consulting, SS&C Research, Analytics and Consulting. \"As a result, AUM levels for the Composite group neatly recovered and are less than 1% shy of the Q3 2018 peak.\"\nU.S. markets solidly bounce back in the first quarter\nThe S&P 500 Index rose by 13.7% during Q1, effectively reversing the 13.5% decline in Q4. Global equity markets also recovered with the MSCI EAFE Index returning 10.1% in Q1, compared to a 12.5% decline in Q4.\nThe Bureau of Economic Analysis (BEA) released their first read of Q1 2019 GDP reporting a 3.2% annual growth rate, compared to consensus estimates of well under 2.0%. Overall, 2019 economic growth expectations for the U.S. still remain moderate relative to 2018. After raising rates in December 2018 by 0.25%, the Federal Reserve seems to be content with current rates; with a broad consensus view that a rate cut may appear sometime in 2019.\nKey performance metrics for Q1 2019\nOperating margins for the Composite group dropped by 153 basis points to 28.6% in Q1, versus 30.1% in Q4. This level represents the lowest operating margin for the Composite since Q3 2010. Four of the 18 firms in the Composite group experienced improving operating margins on a sequential basis. The remaining 14 firms saw their operating margins decline. Despite rising AUM for the Composite group at the end of Q1, asset-generated fee revenues declined by 0.8% sequentially, and drove down overall revenues (-1.3% sequentially). Overall revenues of $11.387 billion were modestly below the level achieved in Q2 2017. 15 of the 18 firms in the Composite group experienced sequentially declining revenues in Q1. Operating expenses for the asset management industry increased by 0.5% in Q1 compared with Q4, largely due to seasonal factors includin...