Retail Alternative Products Help Drive Q2 BlackRock Profits

Jul 18 2013 | 9:39am ET

BlackRock, the world's largest money manager, saw its profits rise 32% year on year in Q2, thanks, in part, to strong demand for its retail alternative products.

The firm netted $729 million or $4.19 per share in Q2, compared to $554 million and $3.08 per share in Q2 2012.

Earnings per share, excluding a one-time tax benefit from a charitable contribution, were $4.15.

According to BlackRock chair and CEO Laurence D. Fink, the results were driven “by global demand from retail and institutional clients for multi-asset class, unconstrained fixed income and retail alternative products. Our strong product capabilities in the retail alternative mutual fund space, coupled with our broad distribution platform, uniquely position us in this high growth segment, where second quarter net flows of $1.1 billion drove sequential quarter AUM growth of 72%.”

Adjusted operating income was up 18% year on year and the firm generated record base fees of $2.2 billion and $11.9 billion in long-dated net new business across a range of products, including 11 funds that each raised $1 billion.

The company ended the quarter with assets under management of $3.9 trillion.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.