BlackRock attracted $205 billion of net client inflows during the third quarter as rising markets and strong demand for exchange-traded funds pushed the world’s largest asset manager to another record.
Assets under management reached approximately $15.5 trillion at the end of September. BlackRock said it has attracted $869 billion of net inflows over the past 12 months.
The quarterly flows were broad-based, spanning iShares exchange-traded funds, systematic active equities, private markets and cash products.
BlackRock’s results provide an unusually broad snapshot of how institutional and retail capital is being allocated across global financial markets.
Revenue increased 19% from a year earlier, helped by higher markets, organic base-fee growth, stronger performance fees and increased technology-services revenue.
Adjusted operating income increased 27%, while adjusted diluted earnings per share rose 38% from a year earlier.
Technology is also becoming a larger component of BlackRock’s business.
Revenue from technology services and subscriptions increased 14%, supported by continued growth in the company’s Aladdin investment-management platform and other products.
Private markets remain another major strategic focus.
BlackRock has expanded aggressively into infrastructure, private credit and other alternative investments, businesses that can generate higher fees than traditional passive investment products.
The scale of the company’s latest inflows is particularly notable because investors are operating against a difficult backdrop of elevated Treasury yields, geopolitical uncertainty and renewed questions about Federal Reserve policy.
Despite those risks, capital continues moving into investment products at substantial scale.
BlackRock also repurchased approximately $550 million of its shares during the quarter.
For markets, the next question is whether the firm’s record asset base and strong inflows can continue if higher interest rates place additional pressure on equity valuations and credit markets.
