News

BlackRock (BLK) achieved a record $10.6 trillion in assets under management in the second quarter, driven by substantial inflows into its exchange-traded funds (ETFs) and fixed-income products. The world's largest money manager attracted $51 billion to its long-term investment funds, with clients adding $83 billion to ETFs and $35 billion to fixed-income assets. CEO Larry Fink highlighted organic growth from private markets, retail active fixed income, and strong ETF inflows as key contributors.

Despite the strong performance, BlackRock faced challenges, including a $20 billion redemption from an insurance client and $35 billion of institutional outflows from index funds. However, the firm also saw $30 billion in net flows to cash-management and money-market funds. Performance fees rose $46 million, boosted by higher revenue from liquid alternatives, and the company added $2 billion to its illiquid alternatives business.

Market Overview:

• Record $10.6 trillion in assets under management.


• Strong inflows into ETFs and fixed-income products.


• Organic growth driven by private markets and retail active fixed income.

Key Points:

• Faced $20 billion redemption from an insurance client.


• $35 billion institutional outflows from index funds.


• $30 billion in net flows to cash-management and money-market funds.

Looking Ahead:

• Expansion in private assets with acquisitions of GIP and Preqin.


• Focus on using data and analytics to broaden access to alternative assets.


• Analysts suggest beginning of long-awaited rotation to fixed income.

The positive market environment, with the SPY rising 4% in the second quarter, has fueled client cash flows into fixed-income funds. Analysts, such as Kyle Sanders from Edward Jones, suggest that BlackRock's robust fixed-income flows indicate the beginning of the long-awaited rotation to fixed income. The firm's strategic acquisitions, including Global Infrastructure Partners and Preqin, aim to expand its presence in private assets and enhance its data and analytics capabilities.

BlackRock's adjusted net income per share rose 12% from a year ago, surpassing Wall Street's estimates, while revenue increased by 8%. Despite these gains, BlackRock's shares have risen only about 2% this year, trailing the broader market's performance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.