BlackRock reports revenue drop despite net flows of $70bn

Added 18th October 2016

BlackRock has reported net flows of $70bn during its third quarter but this was not enough to prevent a 3% fall in revenue to $2.837bn compared with last year’s third quarter.

BlackRock reports revenue drop despite net flows of $70bn

The asset manager was able to grow net income by 4% to $875m versus the same period a year earlier, despite this.

The lower revenues reflect the continuing move of investor money out of active strategies into passives, so while assets under management continue to increase they are generating lower fees on average.

BlackRock’s retail long-term net outflows were $2.2bn with $1.9bn and $0.3bn from the United States and internationally respectively.

This figure was formed from fixed income net inflows of $5.8bn, equity net outflows of $3.9bn primarily related from European and US equities, and multi-asset net outflows of $3.5bn.

The firm’s ETF business iShares recorded long-term net inflows of $51.3bn led by equity net inflows of $25.5bn. Fixed income net inflows were $22.7bn. Commodities ETFs generated $2.9bn in new assets.

“BlackRock’s business model was built to thrive in all market environments,” said chairman and CEO Laurence Fink. “In the third quarter, even as investor preferences continued to migrate from equity to fixed income and cash, and away from active strategies, the diversity of our platform drove nearly $70 billion of total net inflows. Our $55 billion of long-term net inflows were positive across both active and index strategies, and positive across every asset class and region."

“Retail and institutional investors continued turning to iShares as an effective way to express market views and generate alpha," Fink added. "iShares once again captured the #1 market share of net new business in the United States, in Europe and globally, across both equity and fixed income. Our European fixed income ETFs reached $100 billion of AUM and fixed income remains an important growth area for iShares.”

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Matthews Asia Funds Asia Dividend
Matthews Asia Funds Asia Dividend...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Alex Sebastian

News editor

Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy