BlackRock AUM tops $4 trillion mark in 3rd quarter

BlackRock (BLK)'s assets under management totaled $4.096 trillion as of Sept. 30, up 6% from three months earlier and 12% higher than a year ago, on the strength of long-term net inflows, the money manager announced Wednesday.

“Long-term net inflows of more than $25 billion reflected positive flows across all major asset classes and geographies, driven by demand for outcome-oriented solutions, unconstrained fixed income and retail alternative strategies,” Laurence D. Fink, BlackRock chairman and CEO, said in a news release.

The third-quarter net inflows were up from net inflows of $11.9 billion in the previous quarter. Market gains for the three months ended Sept. 30 added another $142 billion.

BlackRock's institutional business saw long-term net outflows of $3.31 billion for the three months ended Sept 30, mostly from the $3.36 billion that came from indexed strategies, but that was offset by long-term net inflows of $20.25 billion into iShares strategies and $8.34 billion in retail net inflows.

Equity strategies saw long-term net inflows of $11.26 billion; fixed income, $7.49 billion; multiasset, $4.86 billion; and alternatives, $1.68 billion.

Assets in BlackRock's institutional business as of Sept. 30 were $2.502 trillion, up 5.3% from three months earlier, while assets in its iShares ETF business totaled $856 billion, up 10.6%. Retail assets in the quarter were $438 billion, a 5.8% increase.

For the latest quarter, BlackRock reported net income of $730 million, up slightly from $729 million in the second quarter and 13.7% above the year before.

Revenue, meanwhile, came to $2.472 billion, down $10 million from the second quarter but up 6.6% from the third quarter 2012.

BlackRock's AUM was in line with expectations, William Katz, analyst at Citigroup Global Markets, said in a note to clients, but long-term inflows were “shy of our $39 (billion) forecast.”