BlackRock reports record net inflows in 2017
BlackRock has reported record total net inflows ($367 billion) for the full year, up from $202 billion at the end of 2016, thanks to the strength of diversified business model, it said.
At the same time, the firm saw $103 billion of fourth quarter net inflows which were positive across all major active, index and iShares and cash management.
The revenue increased by 12 per cent and was mostly driven by growth in base and performance fees as well as technology and risk management revenue.
Additionally, diluted earnings per share (EPS) grew by 59 per cent, reflecting net tax benefit from Tax Cuts and Jobs Act.
On top of that, the board of directors approved a 15 per cent increase in quarterly cash dividend to $2.88 per share.
BlackRock’s chief executive and chairman, Laurence D. Frink, said: “Blackrock’s record 2017 results reflect the long-term investments we’ve consistently made in our business to better serve clients.”
“Full year net inflows represented seven per cent organic asset growth and were positive across client types, asset classes, major regions and investment styles.
“Investors are increasingly seeking comprehensive solutions, and BlackRock’s differentiated ability to offer scaled investment strategies, industry leading risk management and portfolio construction technology and thought leadership is driving deeper client partnerships than ever before.”
He also stressed that the company would be continuing to expand its reach of integrated platforms to investors in high growth geographies like China.
The Americas, EMEA and Asia-Pacific accounted for $55.3 billion, $17.9 billion and $7.4 billion, respectively, of net inflows.
At December 31, 2017, BlackRock managed 63 per cent of its long-term assets under management (AUM) for clients in the Americas, 29 per cent for clients in EMEA and eight per cent for clients in Asia-Pacific, the company said.
AUTHOR
Oksana Patron
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
