BlackRock on Wednesday reported assets under management of $3.446 trillion as of Sept. 30, up 9% from the prior quarter and up 140% from the year-earlier quarter, ahead of its Dec. 1, 2009, acquisition of BGI.
The roughly $295 billion gain in BlackRock's AUM from the prior quarter came from $212.5 billion in market-related gains, $67.3 billion of foreign exchange-related gains and net inflows of $15.6 billion.
According to the company's earnings release, net inflows for long-term strategies came to $18.8 billion for the three-month period, with an additional $1.2 billion of cash inflows. That combined $20 billion total was offset by $4.3 billion in distributions from the troubled assets BlackRock advises on behalf of the federal government.
By asset class, BlackRock saw inflows of $6 billion for its passive equity strategies, offset by $15 billion in outflows from active equity offerings. Likewise, the firm enjoyed $31.6 billion of inflows for passive fixed-income products, but $8 billion of outflows from active bond strategies. Multiasset class offerings pulled in a net $5.3 billion. BlackRock's alternatives strategies saw net outflows of $1.2 billion.
For the latest three-month period, the company reported more than $24 billion in “concentration-related outflows,” reflecting efforts by some clients to limit their exposure to any single firm following the December 2009 merger of two trillion-dollar managers. BlackRock's active quantitative strategies, meanwhile, suffered net outflows of $10 billion.
On a conference call, Laurence D. Fink, BlackRock's chairman and CEO, citing the first net inflows for BlackRock's money market business in eight quarters, said expectations of another round of quantitative easing should give asset managers a leg up over bank deposits. He likewise said his firm remains dedicated to beefing up its alternatives offerings, as investors continue to “barbell” their portfolios into passive and active components.
The company reported net income of $551 million for the latest quarter, up 28% from the prior quarter and up 74% from the year before. Revenues, meanwhile, came to $2.092 billion, up 3% and 84%, respectively.
Separately, Morgan Stanley Investment Management reported $273 billion in assets under management as of Sept. 30, up 9% from both the prior quarter and the year-earlier quarter.
Spokeswoman Erica Platt said pretax income for the latest quarter came to $279 million, rebounding from an $86 million loss for the prior quarter and a $124 million loss for the year-earlier quarter.
Net revenue, meanwhile, came to $802 million, up 96% from the prior quarter and up 79% from the year before. According to a news release detailing parent company Morgan Stanley's latest results, that year-on-year gain in revenue was buoyed by $203 million of gains related to principal investments held by certain consolidated real estate funds.