BlackRock sees net inflows of $50bn despite difficult market conditions

James Nickerson
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Larry Fink said BlackRock can't "control world markets" (Source: Getty)

BlackRock reported third quarter net inflows of $50bn (£32bn), despite hefty outflows from investors in the Asia-Pacific region amid difficult market conditions.

Volatility in stock and bond markets resulted in net outflows of $7.5bn from clients in the Asia-Pacific region, which partially offset inflows from investors in the Americas.

Assets under management at September 30 stood at $4.5 trillion, compared to $4.7 trillion at the end of June, while new assets that moved into BlackRock’s long-term asset management business rose to $35bn from $29bn a year ago.

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Chairman and chief executive Larry Fink said: “Despite all the insecurities in the market, we had $50bn in growth. We can’t control world markets, but because of our diverse range of products, we are in a very good position.”

There is so much uncertainty in the world and that is leading to more volatility.Some of the official authorities are guilty of, instead of being a calming influence, through their mixed messages, inflaming the markets.

Fink added: “Clients seeking long-term investment solutions, strong risk management and durable alpha generation turned to BlackRock amidst challenging market conditions.”

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BlackRock’s global retail business raised $7bn, while institutional clients provided net inflows of $5bn. Inflows into iShares, BlackRock’s exchange-traded funds, totaled $23.3bn.

Exchange-traded funds track a certain index, commodity or bond, but trade like a common stock on a stock exchange, allowing investors to buy and sell them at any time.

While the company beat analysts’ expectations, the world’s largest asset manager saw net income fall eight per cent from a year earlier to $843m, or $5 per share, from $917m, or $5.13 per share.

Third quarter revenue rose by two per cent to $2.91bn from $2.85bn.

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