American asset manager BlackRock has reported a fall in profit and a fall in assets under management (AuM) as invested inflows almost halved amid the Covid-19 crisis.
The turmoil caused by the pandemic led panicky investors to turn to cash.
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Investors poured in $35bn of net new money during the quarter, around half compared to the previous year figure of $65bn.
AuM decreased to $6.47trn from $6.51trn.
In the quarter, the firm recorded long-term net outflows of $18.66bn. Fixed-income products reported $35bn in outflows.
On the other hand, its cash-management business reported net inflows of more than of $52bn.
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By GlobalDataThe firm’s net income dropped to $806m from $1.05bn over the period.
However, revenue at BlackRock increased 11% year-on-year to $3.71bn, driven by a 34% growth in technology services revenue.
BlackRock chairman and CEO Laurence Fink said: “The strategic investments we’ve made over recent years in key areas for growth continue to deliver. iShares ETFs have acted as a valuable market technology as investors once again turned to bond ETFs for price transparency and incremental liquidity in volatile markets.
“iShares sustainable ETFs had a record quarter with $10bn of net inflows. We had one of our best quarters in illiquid alternative fundraisings ever, generating $7bn in new flows and commitments. Our cash management business captured over $50bn in net inflows as clients sought to de-risk rapidly.
“Aladdin continued to provide best-in-class portfolio and risk analytics, while facilitating record trading volumes and enabling remote operations.”
