Dollar strength hits Blackrock AUM

Blackrock saw total assets drop to $6.3trn in Q2 from $6.32trn in the previous quarter with FX movements having a deleterious effect on international sales due to the strong dollar.

Blackrock

The group saw net inflows of $20bn, positive across active, index and cash management, but down nearly 81% on the same time last year. It also reported outflows of £1.56m in its equity products.

Meanwhile, Blackrock’s iShares ETFs saw inflows of $17.8bn in Q2, however, these were down from $34.6bn in the first quarter.

Laurence D Fink, chairman and CEO, said: “Secular trends supportive of Blackrock’s future growth continue, especially in technology, including Aladdin and digital wealth, alternatives and iShares.

“Despite an industry-wide slowdown in flows associated with investor uncertainty in the current market environment, our dialogue with clients and opportunities to provide long-term solutions are more robust than ever before.”

The asset manager is reportedly a frontrunner for a £109bn mandate from Lloyds Banking Group.

Overall, Blackrock’s revenue still grew 11% year-over-year (YoY) driven by base fees, performance fees and technology services revenue. Operating income increased 16% and earnings per share were up 28% YoY.

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