Ten of BlackRock’s largest clients made a $40 billion (€36 billion) switch from passive to active investments over recent months, the firm reveals in its latest financial statements.
“Year-to-date, a desire to reallocate and/or address cash needs drove ten of our largest clients to redeem over $40 billion of institutional index equity assets,” says Laurence D Fink, chairman and chief executive in the firm’s statements.
“However, those same clients reinvested across BlackRock’s active equity and fixed income, multi-asset and alternatives strategies, resulting in a positive net revenue impact for the firm.”
BlackRock today reports a 5% increase in revenues year-over-year for the second quarter.
The firm also refers to a more than $30 billion outflow of low-fee institutional index funds, but that net inflows into higher-fee active and iShares products drove “robust organic base fee growth” for the quarter. iShares is BlackRock’s exchange-traded funds arm.
Long-term net inflows of $17.5 billion in the Americas were offset by net outflows of $24.1 billion and $0.7 billion from clients in Europe, Middle East and Africa, and Asia-Pacific, respectively.
Total assets under management grew 3%.
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