Street analysts estimated $4.77 a share. Revenue fell to $2.804 billion from $2.905 billion a year ago. Analysts surveyed by FactSet expected earnings of $4.77 a share on revenue of $2.79 billion.
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“Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause”, Chief Executive Laurence Fink said. Operating margin in the 2Q of this year lost 100 basis points, to 43.9%, while comparing to the same quarter of last year.
Retail clients pulled a net $6.29 billion from the firm in the second quarter, a time when Mr. Fink said the firm’s clients faced “unprecedented challenges”.
Fink told CNBC he could see yields on US 10-year Treasuries sinking as low as 0.75 percent as central bank purchases have reduced available assets and pushed cash to the sidelines.
The asset management giant posted adjusted second-quarter earnings of $4.78 per share, down from $4.96 in the year-earlier period. Performance fees also decreased due to lower fees from alternative and equity products. In the iShares division, which makes up about a quarter of BlackRock’s assets under management, the firm offers exchange-traded funds, or securities that trade on an exchange and typically track an index or other basket of assets.
Moreover, the New York-based asset manager noted the impact of technology within the asset management industry.
However, fixed-income net inflows pushed iShares long-term inflows up from the $10.9bn past year to $15.7bn in the second quarter.
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We are seeing increasing evidence that our recent strategic investments are driving growth. iShares generated $16bn of net new business during the quarter, with significant strength in fixed income and “smart-beta” ETFs, as clients utilise these tools to manage risk and minimise volatility. “Our focus remains on investing for the future so BlackRock can help clients meet their financial goals and deliver long-term value for shareholders”.
