BlackRock has reported an 8 per cent increase in assets under management (AUM) to USD6.4 trillion for the third quarter of 2018, including USD28 billion of net AUM added from strategic transactions.
The company also saw USD11 billion of quarterly long-term net inflows, led by iShares, active multi-asset and illiquid alternatives, plus 2 per cent growth in revenue year-over-year driven by 4 per cent base fee growth and 18 per cent technology services revenue growth, partially offset by lower performance fees.
A 1 per cent increase in operating income year-over-year also reflects USD42 million of transaction-related expense, while 31 per cent diluted EPS growth (27 per cent as adjusted) was driven by higher non-operating income and a lower effective tax rate.
The company made USD500 million of share repurchases in the current quarter and paid a USD3.13 dividend per share.
Laurence Fink, Chairman and CEO, says: “BlackRock’s third quarter results highlight the resilience of our differentiated platform and our ability to generate organic growth, even in the face of significant industry headwinds. Our holistic, client-centric approach brings together our global product breadth, portfolio construction capabilities, digital tools and industry-leading technology, and positions us well to deliver long-term value to clients and shareholders.”
“BlackRock generated USD11 billion of long-term net inflows in the third quarter, despite more than USD30 billion of institutional non-ETF index equity outflows that resulted from de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty. Over the last twelve months, total net inflows of USD177 billion reflect continued growth in key areas of our business, including iShares, multi-asset solutions, illiquid alternatives and Aladdin.”
“We continue to build and evolve our business in order to stay ahead of clients’ needs and industry disruption, and completed several strategic transactions during the quarter to accelerate future growth. We are more confident than ever before in our ability to be a strategic partner to clients as a result of our broad array of integrated investment and technology offerings.”
