Passive leads AUM gains for BlackRock

ETFsA net inflow of more than $30 billion (€22 billion) into the exchange-traded fund (ETF) division of BlackRock accounted for the bulk of the firm's long-term net inflows in the second quarter, underlining a trend towards passive investment.

Overall, the firm took in a net $38 billion in long-term flows during the quarter, helping to cement its position as the world's largest money manager by assets.

In contrast, institutional active long-term flows amounted to just $1 billion during the quarter – the result of a large net outflow from equity products, which offset much of the inflows recorded in multi-asset funds.

“While performance in fundamental equities remains challenged, we continue to make substantial investments to restructure this business and remain confident in our new teams, their processes and the future outlook for growth over time,” says Laurence D Fink, chairman and chief executive of BlackRock.

The inflow into the iShares division, which manages ETFs and other passive investment instruments, was split into $23 billion from the US market and $8 billion from Europe.

Overall, BlackRock manages 60% of its assets under management for clients in the Americas and 40% for investors in Europe and the rest of the world.

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