BlackRock has reported an adjusted net income of $1.36bn during the fourth quarter of 2022, an 18% drop from $1.65bn in the same quarter a year ago.

Assets under management at the firm fell 14% to $8.59tn from $10.01tn over this period.

Quarterly long-term net inflows amounted to $146bn, notably higher than the $65bn reported in Q3 2022.

When including outflows from cash management, total net inflows stood at $114bn in the final three months of 2022.

Revenue during the three-month period ending 31 December 2022 was $4.33bn, a 15% drop year-on-year.

The US-based asset manager’s full-year revenue dipped 8%, primarily due to lower markets and “dollar appreciation on average AUM and lower performance fees.”

BlackRock generated net inflows of more than $300bn and “positive organic base fee growth” in 2022.

Last week, media reports emerged that BlackRock is planning to trim its employee headcount by around 500.

An expense of $91m will be incurred by the company because of a plan to alter the workforce size to better match business priorities.

BlackRock chairman and CEO Laurence Fink said: “BlackRock’s diversified investment and technology capabilities provide clients with more choice to address their unique risk preferences and priorities. In the United States alone, we generated $230bn of long-term net inflows.

“Flows were positive across each of our three regions. iShares led the global ETF industry with $220bn of net inflows, including record flows into bond ETFs. We continued to scale our private markets platform, raising $35bn of capital, with particular strength in private credit and infrastructure. And we saw record net new sales of Aladdin, further underscoring its importance in periods of market volatility.

“The current environment offers incredible opportunities for long-term investors, and we enter 2023 well-positioned and confident in our ability to deliver for our clients, employees, and shareholders.”