US - BlackRock saw outflows of $121bn in 2010 on the back of its acquisition of Barclays Global Investors, but managed to increase total assets by 6%.
In its fourth quarter results released today, BlackRock said it lost $38.7bn in merger-related outflows in the quarter ended 31 December and $121bn for the year. The first of December marked the one year anniversary of the firm's acquisition of BGI.
"We accomplished a great deal during our first year, evolving our culture, organisational structure and governance model. We worked with clients to introduce our broader global capabilities and to address manager concentration and other issues. We believe merger-related outflows are largely behind us, the organisational integration is completed, and the technology implementation remains on track," said BlackRock chief executive and chairman Laurence Fink.
Total assets reached $3.56trn at the end of the year, up from $3.45trn the previous quarter and up from $3.35trn the year before.
In the fourth quarter, the firm raked in $28.2bn in long-term strategies. Equity and multi-asset products had the strongest flows bringing in $23.7bn and $6.1bn respectively. BlackRock saw small outflows in its alternatives strategies of $2.1bn, though most was driven by the loss of a $2.6bn real estate strategy.
Clients from Europe, Middle East and Africa and Asia-Pacific clients showed the most interest in fixed income strategies, while those from the Americas leaned more towards multi-asset strategies.
Meanwhile, performance fees in the fourth quarter were $326m, up 160% from the same period in 2009.
"The $201 million increase primarily relates to an increase in performance fees earned upon exceeding absolute investment or relative investment return thresholds on alternative multi-strategy hedge funds, regional/country equity strategies, multi-asset class and fixed income products," BlackRock said in its release.
Separately, yesterday BlackRock said it hired Nancy Everett, the former CEO of Promark Global Advisors, as its head of US fiduciary management solutions. This is a new position for BlackRock.
At Promark, formerly known as General Motors Asset Management, Everett was responsible for the management of GM's defined benefit and defined contribution plans.
The firm has a long history of fiduciary management in Europe, and in September was hired by Dutch scheme Stichting Pensioenfonds Medisch Specialisten to run its €5bn ($6.8bn) portfolio. (Global Pensions; 7 September 2010)
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