World's largest asset manager, BlackRock (BLK 381.79, -1.82), is lower by 0.5% after beating bottom-line estimates on light revenue.
BlackRock reported above-consensus first quarter earnings of $5.25 per share on revenue, which increased 7.6% year-over-year to $2.82 billion, but was shy of market expectations. The revenue increase was driven by growth in base fees, performance fees, and technology & risk management revenue.
Assets Under Management increased 5.0% on a sequential basis and were up 14.0% year-over-year to $5.42 trillion. Positive long-term net inflows were recorded across all major regions. Net inflows from clients in the Americas totaled $55.80 billion while inflows from EMEA and Asia-Pacific totaled $18.10 billion and $6.40 billion, respectively.
Looking closer at the inflow breakdown, Retail long-term net inflows of $4.60 billion resulted from $5.00 billion of international inflows, partially offset by $400 million in outflows from the United States. Fixed income net inflows totaled $4.80 billion, going into unconstrained and emerging market categories. Equity net inflows of $1.80 billion resulted from inflows into index mutual funds. Outflows from world allocation strategies led to multi-asset net outflows of $1.70 billion.
Long-term iShares ETF inflows totaled $64.50 billion with equity net inflows of $44.60 billion and fixed income net inflows of $20.30 billion.
Institutional active long-term net outflows totaled $1.00 billion. Equity outflows totaled $4.70 billion and fixed income outflows were $1.30 billion. This was partially offset by multi-asset net inflows of $3.80 billion and alternatives net inflows of $1.20 billion.
Institutional index long-term inflows of $12.20 billion were made up of fixed income inflows of $9.50 billion and equity inflows of $2.40 billion.
Operating margin improved 100 basis points to 42.6%.