UK/US - Barclays Global Investors' (BGI) assets under management increased 12% in the first six months of the year, with the firm's iShares business experiencing the fastest growth, its UK-based parent company Barclays reported today.
BGI's assets reached US$1.68trn on June 30, up from $1.5trn six months earlier. The rise is a result of US$108bn in net new assets, $50bn in exchange rate changes and $25bn in market movements.
The San Francisco-based firm's iShares business, its exchange traded funds arm, grew the fastest among the firm's three business segments. Assets managed under iShares were up 18.5% in the first half of the year, landing at $385bn, up from $325bn at the end of 2008.
iShares was also the only segment to experience growth in the one year period. Assets were up 2.4% from $376bn on June 30, 2008.
BGI's indexed assets were up 14% in the last six months, finishing the period with $1.07trn in assets, while active strategies were down 4% for the period, totalling $222bn at the end of June. Indexed assets were down 12.1% and active strategies down 40.5% in the past year.
In sterling, terms, however, assets dropped in the last six months totalling £1.02trn on June 30, down from £1.04trn six months earlier. Negative exchange trade movements cost the firm £127bn in assets, which were partly offset by £72m in net new assets and £34bn from strengthening equity markets.
BGI's profit before tax was £276m (US$464.5m), up 4% from the end of last year.
Barclays said: "Profit was impacted by recovery on liquidity support charges, deal cost of £106m and a 32% appreciation in the average value of the US dollar against the sterling."
In April, Barclays agreed to sell the iShares business to CVC Capital Partners for $4.4bn, but agreed to a break fee if the company accepted a competing offer. Barclays paid CVC £106m when BlackRock came in with an offer to buy the whole of the BGI business, including iShares, for $13.5bn in June. (Global Pensions; June 12, 2009)
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