BlackRock assets climb to $5trn; sees gains from MMF reform

BlackRock assets climb to $5trn; sees gains from MMF reform

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BlackRock’s assets under management surpassed $5trn in the third quarter as investors turned to the fund giant’s iShares range.

The firm had $5.12trn in assets under management (AUM) at the end of September, up 14% from a year earlier, with its lower-cost index-tracking iShares products attracting the bulk of the inflows.

“Retail and institutional investors continued turning to iShares as an effective way to express market views and generate alpha," chief executive and chairman Laurence Fink said in a statement.

Cash management AUM increased 4% to $389bn, driven by $14.7bn of net inflows, primarily into government funds ahead of money market reform which entered into force last week.

“More than $1trn dollars has shifted from prime to government funds as a result of money market reform," said Fink.

"The breadth of our platform and our ability to both embrace and adapt ahead of change have enabled us to meet our clients’ evolving needs and increase market share.”

Institutional active long-term net inflows of $7.5bn were led by multi-asset net inflows of $6.5bn.

“With pensions and insurers facing continued challenges to fund future liabilities in a ‘lower-for-longer’ environment, we saw of long-term active net inflows from institutional clients in the quarter, reflecting demand for BlackRock’s customized fixed income solutions and multi-asset strategies," Fink added.

Institutional demand for investment and risk management technology remains strong, resulting in 13% growth in revenuefor Aladdin, BlackRock's operating system for investment managers.

Securities lending revenue of $142m was $27m higher, primarily reflecting higher average balances of securities on loan and higher spreads.

Overall, profit for the New York-based company rose by 3% to $875m, but revenue fell by 3% to $2.8bn as performance fees decreased.

“BlackRock’s business model was built to thrive in all market environments,” BlackRock's chief exec said in his statement.

“Our $55bn of long-term net inflows were positive across both active and index strategies, and positive across every asset class and region."


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