Blackrock reports boosted earnings but ‘disappointing’ net flows
Blackrock, the world's biggest asset management firm, has reported a rise in earnings in its third quarter results, but revealed net outflows of $3bn (£2.27bn).
Assets under management were also up by 8 per cent from $5.97 trillion (£4.52 trillion) between July and September 2017 to $6.44bn trillion this year.
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On a per share basis the company earned $7.54 compared with $5.76 the year before.
However, the asset manager saw total net outflows of $3bn.
The company’s iShares ETFs saw inflows of $33.67bn, down from $52.31bn the previous year, while investors pulled $24.76bn from its lower-fee institutional accounts saw outflows of $24.76 which Blackrock attributed to investors cutting risk.
“It was a tough quarter for the whole industry,” Blackrock chief executive officer Larry Fink told CNBC. “I was disappointed in our net flows."
However, in a statement Fink said the results highlight "the resilience of our differentiated platform and our ability to generate organic growth, even in the face of significant industry headwinds."
He added: "Over the last twelve months, total net inflows of $177 billion reflect continued growth in key areas of our business, including iShares, multi-asset solutions, illiquid alternatives and Aladdin.
“We continue to build and evolve our business in order to stay ahead of clients’ needs and industry disruption, and completed several strategic transactions during the quarter to accelerate future growth. We are more confident than ever before in our ability to be a strategic partner to clients as a result of our broad array of integrated investment and technology offerings.”
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