BlackRock hits record net inflows in first quarter 2021
In only one year’s time, US asset management giant BlackRock achieved to grow its assets under management by more than a third (39%) to $9trn at the end of March 2021 vs. $6.46trn at the end of March 2020. Previously, the firm needed two to three years to sustain this pace in asset growth. Now, the world’s largest investment manager sets record after record and illustrates itself again in Q1’21 as it drew a total $172bn net inflow, a new high for the firm and the fourth consecutive quarter with inflows of more than $100bn.
BlackRock’s iShares exchange-traded funds accounted for over 40% of its global net flows over the last quarter and 51% of its long-term net flows. The remaining is split between retail and institutional clients - $37bn and $28bn of net new cash respectively – to which cash management inflows of $39bn for the quarter were added. BlackRock’s CEO Larry Fink said these record inflows represented an organic asset annualised growth of 8%.
Regarding client geographies, long-term inflows were primarily recorded in the US ($72bn) while net new cash from clients based in EMEA and Asia Pacific regions dropped quarter-on-quarter to $39bn and $22bn respectively. Flows benefited fixed income products first, drawing $60.8bn, followed by equity ($49.9bn), multi-asset ($13.7bn) and alternative products ($8.2bn). BlackRock however faced $187m outflows in its advisory business. The firm partly explained the loss by a transfer of $4.1bn ETF advised assets for the Federal Reserve Bank of New York into in its fixed income ETF assets under management.
Besides, BlackRock’s adjusted net income amounted to $1.2bn in Q1’21, up 16% yoy and down 24% quarter-on-quarter. The manager’s technology services business, and in particular its risk management platform Aladdin, had revenue of $306m, stable quarter-on-quarter and up 11.7% yoy. BlackRock notes that the technology services annual contract value soared 16% over the year.