Profit at the world's largest asset management group BlackRock fell 3.7 per cent in the second quarter as global market turmoil spurred investors to shift to stocks from cash and bonds, hurting fee income.
BlackRock said yesterday the revenue it takes from fees for managing money and lending out securities fell 1.8 per cent to $2.49 billion (€2.25 million) from the same period a year ago, even as the total assets it manages rose to nearly $5 trillion. BlackRock’s net income fell to $789 million from $819 million a year earlier. Revenue was down 3.5 per cent to $2.8 billion.
Analysts said sales of BlackRock funds were lower than expected. BlackRock attracted $1.54 billion in “long-term” net flows in the second quarter, compared with outflows of $7.3 billion in the year-earlier quarter.
“People are accustomed to pretty good growth numbers and they didn’t get that this quarter,” said Edward Jones analyst Kyle Sanders.
“We think there’s some disappointment for investors in that.”
– (Reuters)
