Diversification pushes BlackRock net income by 8%

Citibanamex

BlackRock Inc. said it its net income for the second quarter of the year rose USD860 million showing an 8% growth on a year on year basis.

“BlackRock’s second quarter results reflect the trust our clients continue to place in our global investment and technology platform,” commented Laurence D. Fink, Chairman and CEO of BlackRock.

“While significant cash remains on the sidelines, investors have begun to put more of their assets to work. The strength and breadth of BlackRock’s platform generated a record $94 billion of long-term net inflows in the quarter, positive across all client and product types, and investment styles. The organic growth that BlackRock is experiencing is a direct result of the investments we’ve made over time to build our platform.

“The combination of BlackRock’s differentiated technology, scale and broad base of investment strategies, including market-cap weighted index products, a spectrum of active offerings from smart beta and factors to high conviction alpha strategies, as well as illiquid alternatives, positions us as the partner of choice to deliver outcomes for both institutional and retail clients.

“iShares® assets under management crossed $1.5 trillion as momentum continued in the second quarter, with a record $74 billion of net inflows. Growth was balanced among iShares Core funds, precision exposures and financial instruments, demonstrating that ETFs are no longer used only as passive allocations, but increasingly by active investors to generate alpha in their portfolios. We continue to focus investments in distribution, portfolio construction technology and ETF education as iShares growth opportunities migrate more rapidly to accelerating adoption and new uses of ETFs.

“Both institutional and retail clients continue to search for yield. BlackRock’s active strategies generated $8 billion of net inflows, led by multi-asset, fixed income and alternative offerings, contributing to strong organic base fee growth this quarter.

“We’ve seen strong fundraising momentum in illiquid alternatives, with $9 billion in flows and commitments year-to-date, as the investments we’ve made in our platform over time are resonating with clients.

“Going forward, technology-enabled scale will be critical for every aspect of an asset manager’s business: client service, alpha-generation and operational excellence. BlackRock’s technology and risk management revenue grew 12% year-over-year, driven by Aladdin®. In addition, our first three Aladdin Risk for Wealth Management clients are now live on the platform, benefitting from greater risk transparency and portfolio construction capabilities. We continued to expand our digital distribution offerings this quarter with the announced acquisition of Cachematrix and minority investment in Scalable Capital. Both transactions illustrate BlackRock’s use of technology to provide enhanced value and innovative solutions for clients.

“I have never seen more opportunity than I do today for BlackRock to help investors achieve their financial goals. As we look to provide increased value both for clients and shareholders, we will continue to strategically invest for enhanced growth going forward.”