Blackrock has reported a 14 per cent rise in quarterly profit and a record $9.5tn in assets under management, signalling increased investor confidence in a post-pandemic economic recovery.
The asset management giant posted a second quarter profit of $1.378bn (£994m) or $8.92 per share, up from $1.214bn and $7.85 per share a year earlier.
Its adjusted profits beat analysts’ estimates, equating to $10.03 per share – sprinting past the $9.46 per share average analyst expectation, according to Refinitiv data.
BlackRock ended the quarter with a record-breaking $9.5tn in assets under management, up 30 per cent from $7.3tn a year earlier, cementing its position as the world’s largest asset manager.
The investment titan racked up $81bn total net inflows in the second quarter of the year, driven by higher investments across its funds, with exchange-traded funds (ETFs) remaining the most popular. This was, however, the first time Blackrock dipped below the $100bn mark in four quarters.
Only long-term investment flows, excluding cash management, fell short of analyst expectations, reaching $60bn as opposed to an expected $94bn, according to Bloomberg.
An analyst told the Financial Times that this decline was largely down to the loss of a $58bn equity index mandate from a US pension fund client.
“BlackRock’s comprehensive investment and technology platform continues to evolve ahead of our clients’ needs,” said Laurence Fink, chairman and chief executive.
“In sustainability, we are investing in products, data and analytics and technology to help investors capture the opportunity and manage the risks presented by sustainable factors. This is resonating with our clients and we generated $35bn of sustainable net inflows in the quarter,” Finks said.
BlackRock said that come September, it would raise base salaries by 8 per cent for all employees up to and including director level.
It comes a week after BlackRock announced it had raised over $250m (£181m) for its climate finance fund to invest in a selection of countries in Asia, Latin America, and Africa.
The firm will use the emerging markets climate fund to focus on investments in renewable power generation, energy storage solutions and electrified transportation services, and intends to raise at least $500m (£363m).
In a letter to shareholders earlier this year, chief executive Larry Fink said: “No issue ranks higher than climate change on our clients’ lists of priorities.”