BlackRock boss Larry Fink moved to exploit upheaval at rival Pimco yesterday by lauding his group’s own bond offering, as its fixed-income assets ballooned by $11bn.
Fink, who helped invent mortgage backed securities as a young banker with First Boston in the 1980s, said BlackRock differed from its rivals by not having a chief investment officer, traditionally the most dominant position at a fund house.
“The team-based approach is a critical differentiator for BlackRock. We do not and never had a centralised CIO. We do not have a house view or any one person setting a single investment platform,” he said yesterday.
The point was seen as a veiled reference to BlackRock’s great buyside rival Pimco, which saw $23.5bn pulled out of its funds after the sudden exit of Pimco CIO Bill Gross last month.
Gross founded Pimco and has been considered the essence of the California-based business for the past 40 years. His flagship total return bond funds at Pimco held $293bn at its peak last year.
BlackRock said fixed income was its strongest product for the three months ended 30 September after retail investors added $5.4bn and its iShares fixed income range attracted $3.7bn. Institutional investors pulled $3.5bn from its active funds but added $5.5bn to passive funds. Fixed income inflows were $11.1bn overall. Group profits rose 26 per cent to $917m.