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.
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