BlackRock sees large clients switch to active

Active passive roadsignsTen of BlackRock’s largest clients made a $40 billion (€36 billion) switch from passive to active investments over recent months, the firm reveals in its latest financial statements. “Year-to-date, a desire to reallocate and/or address cash needs drove ten of our largest clients to redeem over $40 billion of institutional index equity assets,” says Laurence D Fink, chairman and chief executive in the firm’s statements. “However, those same clients reinvested across BlackRock’s active equity and fixed income, multi-asset and alternatives strategies, resulting in a positive net revenue impact for the firm.” BlackRock today reports a 5% increase in revenues year-over-year for the second quarter. The firm also refers to a more than $30 billion outflow of low-fee institutional index funds, but that net inflows into higher-fee active and iShares products drove “robust organic base fee growth” for the quarter. iShares is BlackRock’s exchange-traded funds arm. Long-term net inflows of $17.5 billion in the Americas were offset by net outflows of $24.1 billion and $0.7 billion from clients in Europe, Middle East and Africa, and Asia-Pacific, respectively. Total assets under management grew 3%. ©2015 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.