Boston-based State Street Corporation disappointed analysts with its fourth quarter earnings report on Tuesday, missing expectations by three cents. The money manager reported earnings per diluted share of $0.55 cents and net income of $184 million.

State Street added $118 billion in assets under management in the fourth quarter of 2004, an increase of nearly ten percent. Compared to the year-ended 2003, total AUM for the Boston-based asset manager increased by 22 percent, or $248 billion, from $1.1 trillion to $1.4 trillion.

State Street's largest asset bucket, passively-managed equities, grew 14 percent from $522 billion at the end of 2003 to $596 billion at the end of 2004. AUM in actively managed equities, which make up just ten percent of total AUM, jumped from $78 billion to $131 billion over the same period, an increase of 68 percent.

Fixed income assets under management grew 42 percent year over year, from $74 billion to $98 billion, while money market AUM grew 24 percent over the same period, from $228 billion to $332 billion.

Assets in employer securities stayed nearly static, growing just one billion from $76 billion in 2003 to $77 billion in 2004.

State Street increased management fee revenues from $156 million at the end of the third quarter to $167 million at the end of the fourth quarter. Compared to the fourth quarter last year, State Street earned 26 percent more in management fee revenues.

The Boston-based financial-services firm had net income of $184 million, or 55 cents a share, for the latest quarter, compared with $447 million, or $1.33 a share, a year earlier. 

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