The world’s leading asset manager BlackRock has revealed its assets under management (AUM) grew to $6.96trn at the end of September 2019, aided by its index and ETF businesses which accounted for 29% and 36% of total assets, respectively.
In the third quarter of the year, BlackRock received $84.2bn in net flows with its active management side of the business contributing $741m (0.9%). Indexing and iShares ETFs had inflows of $51.5bn for the quarter, ballooning its total AUM for the investment style to $4.6bn.
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Across all asset classes, for both active and passive products, it was fixed income that attracted the most assets with just under $35bn of net flows. This was ahead of equity with $9.9bn and alternatives with $8bn.
As a result of the quarter’s flows, fixed income products accounted for a third of the BlackRock’s $7trn AUM with $2.3trn however, equity products remained far ahead with $3.5trn worth of assets.
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This trend was also apparent within its iShares ETF products as fixed income ETFs had inflows of $23.7bn whereas equity ETFs had inflows of $13.1bn in Q3.
The gap between the two asset classes is even larger if we expand the time horizon to year-to-date. Fixed income ETFs have pulled in $87.4bn, significantly ahead of equity ETFs with only $15.6bn.
Larry Fink, chairman and CEO at BlackRock, commented: “BlackRock generated $84 billion of total net inflows in the third quarter, demonstrating strength in fixed income, cash and alternative strategies, as clients re-balanced, de-risked and sought uncorrelated sources of return in the face of significant global market volatility.”