In 2018, the assets under management of Blackrock dropped by five percent as the biggest investment manager in the world saw its inflows cut in half.
The manager reported AUM amounting to $5.97 trillion at the end of last year. The amount is down from the $6.3 trillion that was recorded in 2017.
Last year, the full-year total net inflows amounted to $124 billion. It is more than 50 percent lower as compared to the previous year’s figure of $367 billion.
However, the firm saw a four percent growth in its full-year revenue. It was driven by an increase in its technology services revenue, which rose by 19 percent in the year.
The firm also registered a $60 million charge that are related to restructuring costs, following its announcement that it would make 500 employees – approximately three percent of its workforce – redundant last week.
Larry Fink, the chief executive of Blackrock, stated: “Blackrock’s scale and strategic positioning allowed us to deliver organic growth, revenue growth and operating leverage in 2018, while simultaneously investing in our highest growth opportunities and returning $3.6bn in capital to shareholders.”
He added: “The benefits of the investments we have made to build the most diversified global asset management and technology services firm in the world are clearer today than at any point in our history.”
He continued: “Blackrock generated total net inflows of $124bn in 2018. This included $50bn of fourth quarter new inflows and record quarters for ishares and illiquid alternative strategies.”
Fink disclosed: “Technology services revenue grew 19 per cent in 2018, driven by strong demand for Aladdin and our digital wealth technologies. Our results reflect continued growth in these key initiatives and the resilience of our platform.”
He further noted: “Blackrock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry.”
He concluded: “We will continue to invest in our platform to ensure Blackrock is even better positioned to serve clients and consistently deliver long-term value to shareholders in the years ahead.”