american asset managers feel the strain

US giants BlackRock and BNY Mellon both reported a drop in earnings in the second quarter, down 3% and 37% respectively on the same period last year.

american asset managers feel the strain


The volatility of global markets due to the eurozone crisis was given as a reason for underperformance by both firms, which reported in yesterday’s US session.

At BNY Mellon, net income was $466m, including a previously announced lawsuit charge of $212m, compared with $619m a year earlier.

Meanwhile, BlackRock saw second-quarter profit of $558m, excluding some one-time charges, compared to $578m in Q2 2011.

Despite investor caution and market turmoil, however, both firms still attracted long-term net inflows.

BlackRock closed the quarter with $3.5trn in AUM, down 3% since the end of the first quarter and year-on-year, which it said was largely driven by $94.7bn of market-related declines across products.

BNY Mellon’s AUM finished the quarter down 1% at $1.3trn, again driven lower by market values, although it said this had been partially offset by long-term inflows of $26bn.

Net inflows into BlackRock’s ETF business iShares was $6.1bn during the period, with demand focused on yield-orientated and fixed income products. But market valuation declines of $32.8bn more than offset inflows and iShares finished the quarter with $644.9bn.



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