Increased inflows in the fourth quarter to BlackRock exchange-traded funds helped the company become the first asset manager to reach $10 trillion.
BlackRock Inc. has become The first public asset manager to reach $10 trillion in assets, driven by an increase in last-quarter inflows into its exchange-traded funds.
Investors clapped $104 billion in ETFs in the three months ending December 31, the company said Friday in a statement — a record for the company.
The world’s largest asset manager also benefited from the recovery in the markets, with the S&P 500 index up 11% last quarter and 27% in 2021. Investors added $169 billion to BlackRock’s long-term investment vehicles, including ETFs and mutual funds Common, the last three months of the year.
“Our business is more diverse than ever,” CEO Larry Fink said in the statement. Active strategies, including alternatives, contributed more than 60% of the 2021 membership base fee growth.
The results reinforce BlackRock’s position at the top of the industry, with assets under management rebounding from a decline at the end of the third quarter. The earnings come ahead of an annual letter that Fink, 69, sends to corporate leaders, outlining priorities on everything from board diversity to climate change.
Actively managed funds, a pattern that includes ETFs and mutual funds, saw net inflows of $101 billion. BlackRock now manages $2.6 trillion in these assets. The company’s alternatives business, which includes hedge funds, saw $5.5 billion in inflows, bringing total assets to $265 billion.
Employee compensation and benefits increased $218 million from the fourth quarter of 2020, reflecting the company’s move to increase employee salaries as inflation soared in the United States.
New York-based BlackRock saw adjusted earnings per share of $10.42, beating the average estimate of $10.15 of analysts polled by Bloomberg. Revenue for the quarter was $5.11 billion, below a median estimate of $5.16 billion.
BlackRock has been unable to generate revenue due to lower performance fees, according to Kyle Sanders, an analyst with Edward Jones. Shares fell 1.6 percent in early trading in New York to $854.
(Adds analyst comment in the last paragraph. An earlier version of this story corrected the ETF record and the amount in the headline of the first set.)