BlackRock sees securities lending revenue decrease
17 April 2019 New York
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BlackRock’s investment advisory, administration fees and securities lending revenue decreased $142 million from Q1 2018, according to the firm’s 2019 Q1 report.
BlackRock explained that this was primarily driven by the negative impact of markets and foreign exchange on average assets under management (AUM).
This was also driven by the impact of strategic pricing investments, partially offset by the positive impact of acquisitions and organic growth.
The report also found that compared to Q4 2018, investment advisory, administration fees and securities lending revenue increased $26 million.
BlackRock noted that this was driven by the impact of higher average AUM and higher securities lending revenue, partially offset by the effect of two less days in the quarter.
Meanwhile, securities lending revenue of $148 million in the current quarter compared with $155 million in Q1 2018.
The securities lending revenue figure of $148 million for the current quarter compares with $129 million in Q4 2018, BlackRock found in their report.
Elsewhere in the report’s highlights, BlackRock found that performance fees decreased $44 million from Q1 of 2018.
This primarily reflects lower revenue from liquid alternatives and long-only products, partially offset by higher revenue from illiquid alternatives.
BlackRock added that performance fees decreased $74 million from Q4 of 2018, primarily due to a seasonally higher number of funds with a performance measurement period that ended in the Q4 of 2018.
BlackRock explained that this was primarily driven by the negative impact of markets and foreign exchange on average assets under management (AUM).
This was also driven by the impact of strategic pricing investments, partially offset by the positive impact of acquisitions and organic growth.
The report also found that compared to Q4 2018, investment advisory, administration fees and securities lending revenue increased $26 million.
BlackRock noted that this was driven by the impact of higher average AUM and higher securities lending revenue, partially offset by the effect of two less days in the quarter.
Meanwhile, securities lending revenue of $148 million in the current quarter compared with $155 million in Q1 2018.
The securities lending revenue figure of $148 million for the current quarter compares with $129 million in Q4 2018, BlackRock found in their report.
Elsewhere in the report’s highlights, BlackRock found that performance fees decreased $44 million from Q1 of 2018.
This primarily reflects lower revenue from liquid alternatives and long-only products, partially offset by higher revenue from illiquid alternatives.
BlackRock added that performance fees decreased $74 million from Q4 of 2018, primarily due to a seasonally higher number of funds with a performance measurement period that ended in the Q4 of 2018.
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