BlackRock eyes banking rout as chance for growth as inflows rise
BlackRock Inc (BLK.N) expects dislocations created by a recent banking rout to present “enormous” opportunities to expand its business, as investors shift allocations to avoid abrupt market gyrations and profit from a higher interest rate environment.
The world’s largest asset manager reported an 18% drop in first-quarter profit on Friday but beat analysts’ estimates as investors continued to pour money into its funds.
The New York-based firm, which makes most of its money from fees on investment advisory and administration services, ended the first quarter with $9.1 trillion in assets under management (AUM), down from $9.57 trillion a year earlier but up from $8.59 trillion in the fourth quarter.
Net inflows in the first three months of the year were at $110 billion, compared with $86 billion a year earlier.
“Recent market volatility and stress in the regional banking sector are the consequences of prolonged periods of aggressive fiscal and monetary policy coming to an end,” Larry Fink, chairman and chief executive of BlackRock, said during a conference call.
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