By Chelsey Dulaney
BlackRock Inc. reported better-than-expected profit and revenue
growth in its second quarter, as the money manager benefited from
higher base fees despite posting an overall net outflow for the
quarter.
Chief Executive Laurence Fink said asset flows were impacted by
market volatility in the quarter. Overall, long-term net outflows
were $7.3 billion.
Mr. Fink said 10 of BlackRock's biggest clients have pulled more
than $40 billion from institutional index equity assets this year.
But the firm's revenue has been helped as the clients reinvested
into active equity and fixed income, multiasset and alternatives
strategies.
In the latest quarter, BlackRock said $23.6 billion of net
inflows into higher-fee active and iShares products helped drive
base fee growth, in part offsetting $30.9 billion in net outflows
from low-fee institutional index offerings. The iShares division
offers ETFs, a type of fund that trades on an exchange.
Assets under management grew to $4.72 trillion from a $4.59
trillion a year ago, but edged down from $4.77 trillion at the end
of the previous quarter.
Overall, the firm reported earnings of $819 million, or $4.84 a
share, up from $808 million, or $4.72 a share, a year ago.
Excluding certain items, earnings were $4.96 a share in the
quarter.
Revenue grew 4.6% to $2.91 billion.
Analysts polled by Thomson Reuters had forecast $4.80 a share in
earnings and $2.85 billion in revenue.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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