D.he world’s largest wealth management company, Blackrock, not only amassed the largest volume of assets under management in the third quarter, but also achieved growing profits. Assets under management for clients around the world rose to $ 7.8 trillion. That is 12 percent more than a year ago, as the company announced in New York. The rise in prices on the international stock exchanges, which was only temporarily interrupted by the Corona crisis, contributed to the growth. In addition, Blackrock received almost $ 129 billion in additional net assets from customers in the third quarter. Blackrock’s net profit increased sharply by 27 percent to $ 1.4 billion, more than analysts expected.
According to Blackrock boss Larry Fink, the inflows come from all regions and customer groups and are distributed across all asset classes and investment strategies. More than 50 percent of the long-term inflows came from customers from Europe and Asia. Blackrock’s clients are both institutional and private investors. The company manages the customer money partly actively, i.e. investing the funds based on its own strategies and ideas, but partly also passively, for example in the form of listed index funds (ETF) that follow the development of stock market indices. The ETFs launched by Blackrock are among the largest and most popular on the market.
The company mainly invests in stocks and bonds, but also in part in alternative asset classes and earns primarily from commissions or fees. In the third quarter, the inflows to the bond division doubled to 70 billion dollars compared to the same period last year, while the ETF division grew by 41 billion dollars.
Blackrock’s role in the financial world is controversial. While some fear the abundance of power that grows from the dimensions of the assets under management, Blackrock makes too little use of its influence in the view of others. The asset manager himself describes himself as a trustee who acts in the interests of his clients and lives up to his responsibility.
As far as publicly perceptible, Blackrock asserts its influence with critical letters to the boardrooms of ailing companies or through appeals from his boss Larry Fink at a meeting of the International Monetary Fund: After the pandemic, only 50 percent of all employees should return from the home office, thanks to digital Communication is possible and contributes to climate protection.