Fixed income demand boosts BlackRock but lower fees weigh on earnings

Record organic asset growth

clock • 2 min read

US asset management giant BlackRock saw a record annualised organic asset growth rate of 9% in Q2, driven by record-breaking fixed income and cash activity, but other factors contributed to a 3% earnings per share (EPS) decrease, the company said on Friday.

BlackRock saw net inflows of $151bn (£120.5bn) during Q2 2019, meaning assets under management (AUM) increased by 9% to $6.8trn from $6.3trn in Q2 2018. Flows in the corresponding period last year were $20bn. But revenue slipped 2% year-on-year thanks to lower base fees, which the firm said were driven in part by lower securities lending revenue and lower performance fees. BlackRock reveals aim to become one of China's top asset managers Operating income fell by 11% year-on-year to $1.28bn, reflecting $61m of fund launch costs. This, allied with a higher effective tax rate, meant E...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot