BlackRock AUM continues climb as firm eyes fixed income growth
The largest asset manager in the world now sits with AUM of $9.4trn
The largest asset manager in the world now sits with AUM of $9.4trn, but BlackRock is expecting that to continue to grow further due to a surge in demand for fixed income.
In its Q2 results call, BlackRock president Rob Kaptio predicted that the $7trn in money market accounts would quickly move to the fixed income market when interest rates reach their peak.
Global bond ETFs recently crossed $2trn in assets, and BlackRock expects this to triple to $6trn by 2030, as rates remain higher than expected for longer throughout the decade.
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«We are calling this a once-in-a-generation opportunity. There is finally income to be earned in the fixed income market,» added Kaptio.
However, revenue for the firm fell 1% year-over-year this quarter, primarily due to market movements, while operating income fell by 3%.
Net flows for the titan also fell, gaining $80bn throughout the second quarter, compared to $110bn in Q1. This was largely due to a sharp drop-off in institutional flows, from $81bn in Q1 to just $5bn in Q2.
Despite seeing strong inflows of $4.4bn throughout the quarter into retail fixed income funds, market movements have not been favourable for the firm, with fixed income losing $2.2bn throughout the month.
Meanwhile, equities saw $2bn in inflows, with $17.7bn in positive market movements. Alternatives was the only sector which had outflows for the firm, losing $3.1bn, but still making $84m in the sector from the market.
European ETFs suffer 28% drop in inflows in Q2 2023
A similar trend emerged for the firm's ETFs, where fixed income saw $34.7bn in inflows, but lost
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