BlackRock on Thursday reported second-quarter assets under management of $3.857 trillion, down 2% from the previous quarter but up 8% from 12 months earlier.
Market-related losses for the quarter ended June 30 were $62.3 billion, according to BlackRock's earnings release. Net inflows to BlackRock's long-term strategies were $11.9 billion, down from net inflows of $39.4 billion in the first quarter.
For the three months ended June 30, net outflows were reported in alternatives strategies, at $3.9 billion, and equities, with $348 million. Net inflows of $11.1 billion went into multiasset strategies, while $5.1 billion went to fixed income.
“We are … seeing the early stages of a rotation within fixed income as investors increasingly focus on the duration of their fixed-income portfolios, with flows moving into actively managed, unconstrained products,” Laurence D. Fink, chairman and CEO, said in the release.
Assets in BlackRock's iShares ETF business totaled $774 billion, down 3.5% from three months earlier, as combined market losses for its equity and fixed-income funds totaled $19.8 billion. Long-term net inflows to iShares equity funds totaled $2.7 billion, while net outflows to its fixed-income ETFs were $1.5 billion.
For the latest quarter, BlackRock reported net income of $729 million, up 15% from the prior quarter and up 32% from the year before.
Revenue, meanwhile, came to $2.5 billion, up 1% from the prior quarter and 11% higher than the year before.
BlackRock's AUM was in line with expectations, William Katz, analyst at Citigroup Global Markets, said in a note to clients, although long-term inflows were “a tad better than projected.”
Daniel Fannon, analyst at Jefferies & Co., said in a separate client note that BlackRock's AUM was below Jefferies' estimate of $3.93 trillion but long-term inflows were better than its forecast of $1.5 billion in net outflows.
