The world’s largest asset manager is now a titanic $6.5 trillion, thanks to a friendly first quarter.
BlackRock returned 9% for the quarter ended March 31, and was 3.1% higher than the year prior, generating total net inflows of $64.6 billion.
“Seinfeld” co-creator and “Curb Your Enthusiasm” star Larry David might say the organization did “pretty, pretty, pretty, pretty good.”
Most of the money came from the giant’s fixed-income strategies, a hefty $79.9 billion. Another $6.8 billion flowed in from alternatives, and cash management strategies provided another $5.6 billion. Advisory strategies kicked in another $1 million.
The fudge on BlackRock’s sundae, however, was a little too hot. Equities lost $26 billion, and multi-asset strategies fell by $1.6 billion. That said, stock-based tactics are still up over the one- (63% fundamental, 27% systemic, and 97% indexed), three- (73%, 87%, and 99%), and five-year periods (83%, 87%, and 98%).
Larry Fink, the firm’s chairman and chief executive officer, said the “breadth of our investment capabilities” allowed the company’s strong returns and its ability to “continue to meet the evolving needs of our global clients.” He also pointed out that iShares was again its top global exchange-traded fund (ETF) industry flows, which helped a good $32 billion of that inflow from the fixed-income portfolio.
Fink also noted BlackRock’s first close of Long Term Private Capital, its new direct private equity vehicle. He also spoke of tech, specifically its 11% return from Aladdin technology investments. He also announced the firm’s deal to acquire software developer eFront, saying the two technologies will “set a new standard in investment and risk management technology.”
In other news, BlackRock has hired Xiaodong (Tony) Tang to run a new position which oversees its China business. The former GF Holdings CEO will split his time among Beijing, Shanghai, and Hong Kong. He will report to Geraldine Buckingham, BlackRock’s chair and head of Asia Pacific.