American asset manager BlackRock has reported a surge in net income and AUM even as the Covid-19 pandemic continues to upend markets.
The firm’s adjusted net income was $1.42bn in the three-month-period ending September 2020, a 27% rise from $1.12bn in the prior year. The growth was supported by performance fee revenue of $532m in Q3 2020, up from $121m a year ago.
Total revenue of $4.37bn was 18% higher than the previous year figure of $3.69bn. Technology services revenue grew to $282m from $259m.
Operating income increased 17% to $1.76bn from $1.5bn. Total expense increased to $2.61bn from $2.19bn over the period.
BlackRock’s assets under management as of 30 September 2020 reached $7.81trn, versus $6.96trn in the prior year.
The group saw $129bn in quarterly total net inflows, driven by fixed income and cash management. The firm reported positive flows across all regions, investment styles as well as product types.
BlackRock chairman and CEO Laurence Fink said: “BlackRock generated $129 billion of total net inflows in the third quarter, representing 9% annualised organic base fee growth. Our diverse platform saw inflows across all asset classes, investment styles and regions.
“Notably, more than 50% of longterm flows were driven by clients in Europe and Asia. Our results are a validation of our globally integrated asset management and technology business model, which allows us to consistently invest and evolve ahead of client needs.
“Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year.”
BlackRock was recently in the news for securing the nod of the China Securities Regulatory Commission (CSRC) to launch a mutual fund arm in China.
Moreover, its wealth management joint venture with Temasek and China Construction Bank was also recently approved by the China Banking and Insurance Regulatory Commission (CBIRC) .