US - Assets at BlackRock hit $3.3trn in the third quarter, down 9% over the three-month period, after market declines battered equity strategies.
Total assets were down 3% in the year ended 30 September, the firm said in its earnings release today.
Assets in equity strategies were $1.44trn, down 18% over the quarter. The change reflects $309.5bn in declines in market and foreign exchange valuations. Net inflows for equity strategies were $1.8bn after $9.8bn moved into indexing strategies and $8bn moved out of active ones.
Fixed income assets increased 2% to $1.2trn over the quarter after market and foreign exchange gains added $33.3bn.
Multi-asset strategies were down 7% ending the three-month period at $215.2bn, alternatives assets declined 3% to $109.4bn, cash management assets decreased 1% to $244.7bn and advisory assets dropped 2% to $129.6bn.
"Market volatility obviously weighed on investor psychology and led some clients to de-risk or delay fundings, though we also saw some clients buy equities to rebalance their portfolios amidst recent market declines," said Laurence Fink, chief executive and chairman.
"With the persistence of volatile markets, low interest rates and the low-growth environment, an increasing number of investors are reevaluating their investment and asset allocation decisions. Clients are increasingly looking for a broader and more diversified range of solutions, value-added advice and risk management tools, with a number of clients opting for strategies that rely on index, ETF and multi-asset class products," he added.
As of 17 October, the firm had $29.2bn in its new business pipeline. This includes a $36bn planned fixed income indexed outflow from an institutional client who plans to bring the assets in-house, the firm said.
Net income at the firm totalled $595m, down 4% from the second quarter, but up 8% from a year ago.
Yesterday, State Street Corp. said assets at State Street Global Advisors were down 4% in the third quarter. (Global Pensions; 18 October 2011)
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