RSS   Newsletter   Contact   Advertise with us

BlackRock revenue increased 5%, operating income up 10%

Staff writer ▼ | July 16, 2015
BlackRock reported financial results for the three and six months ended June 30, 2015. There was 5% revenue growth from Q2 2014 driven by growth in base fees.
BlackRock   Long-term net inflows were $17.5 billion
There was 10% operating income growth from the second quarter of 2014, 3% AUM growth from the second quarter of 2014, $7.3 billion of long-term net outflows for the second quarter of 2015, and $23.6 billion of active and iShares net inflows drove organic base fee growth, offsetting the impact of $30.9 billion of low-fee non-ETF index net outflows.

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 EMEA and Asia-Pacific, respectively. At June 30, 2015, BlackRock managed 62% of its long-term AUM for investors in the Americas and 38% for clients in EMEA and Asia-Pacific.

Retail long-term net inflows of $10.8 billion included net inflows of $7.4 billion in the United States and $3.4 billion internationally. Net inflows were led by fixed income net inflows of $9.8 billion, which were diversified across exposures, with $2.7 billion of inflows into unconstrained strategies, $1.6 billion into the High Yield suite, and $1.2 billion into Total Return.

In equities, European Equities raised $1.5 billion, while multi-asset net inflows were led by $1.6 billion into the Multi-Asset Income fund family.

iShares long-term net inflows of $10.9 billion included equity net inflows of $8.8 billion, driven by demand for international developed market exposures. Fixed income net inflows of $1.5 billion reflected flows into investment grade corporate, U.S. aggregate and emerging markets bonds.

Institutional active long-term net inflows of $2.5 billion were led by multi-asset net inflows of $4.4 billion, reflecting solutions-based insurance fundings in the quarter and ongoing demand for the LifePath target-date suite.

Alternatives net inflows of $0.6 billion were led by flows into alternatives solutions and infrastructure, and included the impact of $1.0 billion of capital returned to investors.

Institutional index long-term net outflows of $31.4 billion were driven by equity net outflows of $34.6 billion linked to asset allocation, re-balancing and cash needs.

Cash management AUM decreased 7% to $271.5 billion, driven by seasonal outflows. Advisory AUM decreased $5.2 billion to $12.9 billion.