Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

42726

BlackRock inflows rise, profits dive in “the most challenging of environments”

RELATED TOPICS​

New York-based BlackRock has reported steep profit falls and robust investor inflows as the world’s largest asset manager’s second quarter results underscore the extreme conditions facing the global investment community.

Faced with what chairman and CEO Larry Fink described as “the most challenging of environments”, BlackRock suffered 30 per cent year-on-year falls in adjusted net income and earnings per share in the three months to the end of June, with overall assets under management falling to just under USD8.5 trillion – down by 11 per cent from the same time last year, and from a high of more than USD 10 trillion at the start of this year.

However, the money management giant generated impressive investor inflows during the quarter of USD90 billion – an increase of over 10 per cent from Q2 2021 – to take total net flows for the first half of this year to USD176 billion, and to a hefty USD460 billion over the past 12 months.

ETFs provided the bulk of the inflows, with more than USD50 billion of net new money flowing into BlackRock’s giant iShares operation in Q2 taking total ETF inflows for the year to date to over USD100 billion – and with over USD30 billion of new investor money coming into fixed income ETFs in the second quarter alone.

BlackRock said the resilience of client inflows through what Fink called “the worst start to the year for both stocks and bonds in half a century” underlined the strength of the group’s broad-based platform – with positive asset flows across all product types and regions.

“I cannot think of a time when BlackRock’s strategic focus has been more aligned with the needs of our clients than it is today,” said Fink. “Over the course of BlackRock’s 34-year history, we have experienced numerous periods of volatility and uncertainty, and BlackRock has always come through stronger.”

He added: “The first half of 2022 brought an investment environment that we have not seen in decades. Investors are simultaneously navigating high inflation, rising rates, and the worst start to the year for both stocks and bonds in half a century, with global equity and fixed income indexes down 20 per cent and 10 per cent, respectively.”

“It is during periods like these that we differentiate ourselves even more with clients and further deepen those relationships. I see more opportunities for BlackRock today than ever before and remain confident in our ability to deliver long-term growth for our clients, shareholders, and employees.”

Latest News

MainStreet Partners has released its latest quarterly GSS Bonds report “Summer Edition”. This edition of..
Pension and insurance firms have backed a public-private blended finance model to help navigate investment..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor..

Related Articles

Rod Ringrow, Invesco
Geopolitical tension has surpassed inflation as the primary concern of sovereign investors and is prompting greater interest in allocating to emerging markets, according to the twelfth annual Invesco Global Sovereign Asset Management Study...
Geopolitical tension has surpassed inflation as the primary concern of sovereign investors and is prompting greater interest in allocating to..
Green energy
2024 has been the strongest ever year for green bond sales, with deals topping USD356 billion in the first six months, according to research from Bloomberg...
2024 has been the strongest ever year for green bond sales, with deals topping USD356 billion in the first six..
infrastructure headline
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the UK’s growth ambitions...
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the..
Tom McPhail, lang cat
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a widely predicted Labour win...
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by