BlackRock today reported assets under management of $1.26 trillion as of Sept. 30, down 12% from the prior quarter and off 3% from the year before.
The company said $69.1 billion of the asset decline in the third quarter was the result of the plunge in global equity markets, while $53.8 billion came from money market outflows and $20.7 billion was attributed to adverse currency fluctuations.
BlackRock reported quarterly net client outflows of $4.2 billion from its fixed-income strategies and $2.5 billion from equity and balanced products, but just less than $1 billion in net inflows for its alternative investment offerings.
BlackRock reported $453.5 million in operating income, up 12% from the second quarter and up 67% from the year before. However, with a $142.6 million loss on its investments for the period, net income came to $217.7 million, down 21% from the prior quarter and off 15% from the year before. Revenue for the quarter came to $1.313 billion, down 5% from the prior quarter but up 1% from the year before.
"This is the only time I can remember that product diversification did not help every asset class has suffered, and all market participants have been affected. No one, including BlackRock, is immune," BlackRock Chairman and CEO Laurence Fink said in a news release.
Absent a significant turnaround, the severity of the market loss and the seismic shifts that have occurred in the financial services landscape will have profound implications for investors," Mr. Fink said. "Clients will need to re-evaluate their assets and liabilities, reconsider allocation and diversification policies, and develop new investment strategies for the future. We are already hearing that they want new ideas, global solutions tailored to their unique needs."