BlackRock Reports $3.11 Billion in Net Outflows --update
October 16 2018 - 8:28AM
Dow Jones News
By Allison Prang
The world's largest asset manager, BlackRock Inc., posted a
stronger profit in third quarter but reported more than $3 billion
in net outflows.
The company reported $3.11 billion in net outflows for the
quarter, compared with the $96.11 billion in net inflows it had for
the comparable quarter a year ago. Investors as a whole took $17.26
billion out of BlackRock equity products.
Institutional investors took out $30.85 billion from non-ETF
index funds, which BlackRock Chief Executive Laurence Fink
attributed to "de-risking associated with ongoing divergent
monetary policy and geopolitical uncertainty."
The company's iShares ETFs had $33.67 billion in net inflows for
the quarter.
Earnings rose 29% from a year earlier to $1.22 billion.
Per-share earnings totaled $7.54, up from $5.76.
Revenue rose 1.9% to $3.58 billion, which fell below what
analysts were anticipating. Revenue from investment-advisory
performance fees and distribution fees declined, but revenue from
technology services -- which includes BlackRock's Aladdin risk and
portfolio management tools -- climbed.
BlackRock had $6.44 trillion assets under management in the
quarter that finished in September, up 2.3% from the second quarter
of this year.
Shares fell 2.8% in premarket trading Tuesday. In 2018,
BlackRock shares have fallen 17%.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 16, 2018 08:13 ET (12:13 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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