For the third consecutive quarter, BlackRock’s assets under management reached a record high on Friday; driven by sharp increases in the company’s exchange-traded funds inflows and a sharp increase in equities that increased the value of its clients’ investments.
Following positive inflation data, investors’ optimism for a gentle landing for the largest economy in the world grew as the stock markets recovered from their August sell-off and continued to rise in the third quarter.
BlackRock’s managed assets jumped to $11.48 trillion in the third quarter from $9.10 trillion in the same period last year and $10.65 trillion in the second quarter.
The chairman and CEO of Oracle, Larry Fink, said, “Our strategy is ambitious, and our strategy is working.”
The New York-based company added over $100 billion in assets to its portfolio last week when it successfully completed the $12.5 billion acquisition of Global Infrastructure Partners.
It is anticipated to conclude its $3.2 billion acquisition of Preqin, a provider of private markets data, later this year.
Laptops 1000The two agreements are anticipated to increase the largest asset manager in the world’s footprint in two important growth areas: private markets and infrastructure projects.
“We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation,” Fink stated.
“Our planned acquisition of Preqin will enhance data and risk analytics needed to support growing private markets allocations,” he stated.
In the third quarter, BlackRock reported long-term net inflows of $160 billion.
Reaching a quarterly high of $221.18 billion, total net inflows increased from $2.57 billion in the previous year.
With $97.41 billion in inflows over the long run, ETFs accounted for the majority.
$62.74 billion was invested by customers in BlackRock’s fixed-income products.
Since interest rate hikes increased the attraction of safe-haven assets like cash, asset managers have faced slower inflows.
In addition, several investors refrained from making any moves in riskier assets until they had greater clarity on the direction of interest rates.
