BlackRock Reaches Record $11.5 Trillion in Assets Amid Market Rally and ETF Surge
Picture Credits: Zerocap
By Pavethran Batmanathen
On Friday, BlackRock announced that its assets under management reached a record high for the third consecutive quarter, fueled by substantial inflows into the company’s exchange-traded funds (ETFs) and a robust equity rally that enhanced the value of its clients’ investments.
Stock markets rebounded from the selloff in August, broadening their rally throughout the third quarter. This positive trend was bolstered by renewed optimism regarding a soft landing for the world’s largest economy, spurred by favorable inflation data.
During the third quarter, major equity market benchmarks experienced gains, with the S&P 500 rising by 5.4% and the MSCI global stock gauge increasing by 6.2%.BlackRock’s total assets surged to $11.48 trillion in the third quarter, a significant rise from $9.10 trillion a year prior and an increase from $10.65 trillion in the previous quarter.
The world’s largest asset manager reported $160 billion in long-term net inflows during the third quarter, leading to a record total net flow of $221.18 billion for the quarter, a remarkable jump from just $2.57 billion a year earlier.A significant portion of these inflows was attributed to ETFs, which accounted for $97.41 billion.
Additionally, clients invested $62.74 billion in BlackRock’s fixed-income products.In recent years, asset managers have faced challenges with lower inflows, primarily due to interest rate hikes that made safe-haven assets like cash more attractive. Some investors opted to stay on the sidelines, seeking clarity on the interest rate outlook before re-entering riskier investments.
However, with the U.S. Federal Reserve commencing its long-awaited easing cycle, asset managers are well-positioned to benefit as the considerable cash reserves sitting on the sidelines are expected to flow into riskier assets, including fixed-income products.BlackRock’s net income rose to $1.63 billion, or $10.90 per share, for the three months ending on September 30, compared to $1.60 billion, or $10.66 per share, during the same period last year.
As of the last close, BlackRock’s shares had climbed approximately 18% in 2024, slightly lagging behind the S&P 500’s 21% increase.
About Author
