Coronavirus: Blackrock reports sharp drop in income and assets
US asset management giant Blackrock suffered a sharp drop in income and assets under management in the first quarter as the coronavirus outbreak sparked turmoil in global markets.
Blackrock’s net income fell to $806m, or $5.15 per share, in the first quarter ended March 31, from $1.05bn, or $6.61 per share, a year earlier.
Assets under management fell to $6.47 trillion from $7.43 trillion.
Blackrock reported inflows of $35bn during the quarter, driven by its cash-management business which attracted more than $52bn in net inflows as clients raced to de-risk as markets became more volatile.
Sign up to City PM’s Midday Update newsletter, delivered to your inbox every lunchtime
The firm’s fixed-income products, which are typically viewed as safe-havens, suffered outflows of $35bn.
Blackrock chairman and chief executive Larry Fink said: “The coronavirus outbreak has transformed the world, creating unprecedented human and economic hardship.”
He added: “Our overriding priority at BlackRock today is the health and safety of our employees and their families.
“Amidst extraordinary circumstances, they have rebuilt Blackrock beyond its walls delivering the operational resilience and support our clients depend on and need more than ever before.
“As our clients seek insights, advice and solutions, our diversified investment and technology platform is enabling us to have richer conversations with them even in this virtual environment, about all aspects of their portfolios.
“We believe Blackrock is more differentiated in this environment than ever before.”
Asset management firm Schroders also reported today that its assets under management had dipped in the first three months of the year. The company said this morning that assets fell from £500.2bn at the end of last year, to £470.5bn at the end of March.