Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Tech and iShares help BlackRock overcome active fund decline

Tech and iShares help BlackRock overcome active fund decline

BlackRock’s strong inflows into passives, multi-asset and illiquid alternatives, have helped it counter the outflows seen in its active equity funds.

Clients pulled $17.2 billion (£13 billion) from the company's active equity mandates in the third quarter. This was more than offset by the $33.6 billion of net inflows attracted by BlackRock’s iShares exchange-traded funds (ETF), however.

BlackRock chair and chief executive Larry Fink said: ‘BlackRock generated $11 billion of long-term net inflows in the third quarter, despite more than $30 billion of institutional non-ETF index equity outflows that resulted from de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty.’

Over twelve months BlackRock's net inflows stood at $177 billion driven by growth in its  iShares, multi-asset solutions, illiquid alternatives and Aladdin businesses.

At end of the quarter, BlackRock’s assets under management (AUM) stood at $6.4 trillion, up 8% year-on-year.

Last week Scottish Widows awarded the contract to manage £30 billion in passive index strategies to BlackRock, under the terms of a wider collaboration agreement on alternative assets and tech.

An 18% gain on revenue from its technology services to $582 million from $481 million in the previous year somewhat offset lower performance fees of $151 million, down from $191 million at the end of Q3 2017.

‘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,’ Fink added.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Young: the buck stops with me on Asia recovery

Hugh Young: the buck stops with me on Asia recovery

The Veteran Asia Pacific fund manager discusses how he is going to improve the performance of Aberdeen Standard Asia Focus and the other investment trusts run by his team.

Play Tim Steer: fund managers will have to get 'stuck in'

Tim Steer: fund managers will have to get 'stuck in'

The second part of our film with former Artemis and New Star fund manager Tim Steer looks at how his profession has evolved over the past two decades.

2 Comments Play Tim Steer: how to spot a stock disaster coming

Tim Steer: how to spot a stock disaster coming

The former Citywire AAA-rated fund manager has written a book on 22 stock disasters and how forensic examination of annual reports could have spotted them coming.

Read More
Your Business: Cover Star Club

Profile: what this duo did after quitting Hargreave Hale

1 Comment Profile: what this duo did after quitting Hargreave Hale

Two former Hargreave Hale staffers left following its purchase by Canaccord, but insist their move was due to a long term structural industry shift

Wealth Manager on Twitter