BlackRock's Q3 financial report: iShares' net flow saves the day

George Geddes


BlackRock announces its financial results for Q3. The report shows growth in iShares' assets under management (AUM) and revenue over the past 3 months. Passive investments, multi-assets and alternatives saved the firm from its struggling outflows.

Following a significant EMEA outflow of $9.7bn, BlackRock suffered with only $10.6bn in net flows by region. iShares' $33.7bn inflow over the three months, redeemed the firm from its $24.8bn institutional outflow.

The report highlights iShares' importance to the Q3 results:

"$11 billion of quarterly long-term net inflows, led by iShares, active multi-asset and illiquid alternatives."

"Over the last twelve months, total net inflows of $177 billion reflect continued growth in key areas of our business, including iShares."

iShares' ETF's assets under management (In millions):

ETF Asset ClassAt end June 2018At end September 2018Equity$1,346,288$1,413,925Fixed Income$401,731$412,343Multi-Asset$3,767$3,814Alternatives$24,979$23,106Sub-total$1,776,765 $1,853,188

iShares' total AUM at the end of September was $1.85tn, up over 4 per cent from the previous 3 months. Equity, fixed income and multi-asset saw an increase in AUM by 5 per cent, 3 per cent and 1 per cent, respectively. However, alternatives went down by 7.5 per cent.

Revenue for BlackRock's ETF range in Q3 improved in comparison to the same quarter in 2017. Equity ETF's revenue jumped from $835m in Q3 2017 to $885m in Q3 2018. However, fixed income ETF's revenue slumped from $210m to $205m in the same time frame.

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