Blackrock assets under management drop five per cent
Blackrock’s assets under management dropped five per cent last year as the world’s biggest investment manager saw inflows slashed in half.
The manager reported AUM of $5.97 trillion at the end of 2018, down from $6.3 trillion in 2017.
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In 2018, full-year total net inflows were $124bn, more than 50 per cent lower than the previous year’s figure of $367bn.
However, the company saw four per cent growth in full year revenue driven by an increase in technology services revenue, which grew 19 per cent in the year.
The company also registered a $60m charge related to restructuring costs, after it announced it would make 500 employees – around three per cent of its workforce – redundant last week.
Blackrock chief executive Larry Fink said: “Blackrock’s scale and strategic positioning allowed us to deliver organic growth, revenue growth and operating leverage in 2018, while simultaneously investing in our highest growth opportunities and returning $3.6bn in capital to shareholders.
“The benefits of the investments we have made to build the most diversified global asset management and technology services firm in the world are clearer today than at any point in our history.
“Blackrock generated total net inflows of $124bn in 2018. This included $50bn of fourth quarter new inflows and record quarters for ishares and illiquid alternative strategies.
“Technology services revenue grew 19 per cent in 2018, driven by strong demand for Aladdin and our digital wealth technologies. Our results reflect continued growth in these key initiatives and the resilience of our platform.
“Blackrock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry.
"We will continue to invest in our platform to ensure Blackrock is even better positioned to serve clients and consistently deliver long-term value to shareholders in the years ahead.”