BlackRock reports Q4 revenue rise
13 January 2017 New York
Image: Shutterstock
BlackRock earned securities lending revenue of $138 million in Q4 2016, securing a million-dollar increase over the same period in 2015.
The rise came as a part of a wider increase reported across investment advisory, administration fees and securities lending revenue, which produced $26 million more than they did in Q4 2015.
Quarter-over-quarter, BlackRock’s securities lending revenue dipped from the $142 million earned in Q3 2016.
As of 31 December 2016, BlackRock held $177 billion in assets and collateral in separate accounts under securities lending agreements. This was down slightly from 2015, when it held $182 billion.
BlackRock saw record firm-wide net inflows of $202 billion in 2016, including $98 billion in Q4, of which cash management, thanks to momentum in iShares and institutional businesses, accounted for $18 billion.
Laurence Fink, chairman and CEO of BlackRock, commented: “While domestic equities rallied following the US election, the combination of a strengthening dollar, underperforming international equities and negative fixed income markets produced challenging outcomes for global investors.”
“Investors are rethinking their approach to active management, asset allocation and portfolio construction, and we’re seeing more clients use active and index strategies together to deliver returns."
"We have purposefully invested in our platform to provide clients with a full spectrum of offerings including cash, market cap-weighted indexes, smart beta and factor-based investment strategies, and high-conviction active products, whether fundamental, quantitative or illiquid.”
The rise came as a part of a wider increase reported across investment advisory, administration fees and securities lending revenue, which produced $26 million more than they did in Q4 2015.
Quarter-over-quarter, BlackRock’s securities lending revenue dipped from the $142 million earned in Q3 2016.
As of 31 December 2016, BlackRock held $177 billion in assets and collateral in separate accounts under securities lending agreements. This was down slightly from 2015, when it held $182 billion.
BlackRock saw record firm-wide net inflows of $202 billion in 2016, including $98 billion in Q4, of which cash management, thanks to momentum in iShares and institutional businesses, accounted for $18 billion.
Laurence Fink, chairman and CEO of BlackRock, commented: “While domestic equities rallied following the US election, the combination of a strengthening dollar, underperforming international equities and negative fixed income markets produced challenging outcomes for global investors.”
“Investors are rethinking their approach to active management, asset allocation and portfolio construction, and we’re seeing more clients use active and index strategies together to deliver returns."
"We have purposefully invested in our platform to provide clients with a full spectrum of offerings including cash, market cap-weighted indexes, smart beta and factor-based investment strategies, and high-conviction active products, whether fundamental, quantitative or illiquid.”
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