BlackRock assets cross $10 trillion, revenue slightly misses
By
A strong finish to the year by global financial markets helped boost the performance of asset managers in general, with BlackRock (BLK) also benefiting from its large scale and wide reach.
Assets under management stood at
"It's an impressive milestone and it just illustrates their
dominance in the fastest growing areas within the industry,"
said
Net inflows for the quarter were at
"Our business is more diversified than ever before - active
strategies, including alternatives, contributed over 60% of 2021
organic base fee growth," Chief Executive Officer
BlackRock's (BLK) revenue from investment advisory, securities
lending and administration fees, its biggest segment, rose to
Adjusted profit rose 2.5% to
Analysts on average were expecting the company to report a
profit of
Revenue rose nearly 14% to
BlackRock (BLK) shares were down 1.7% to
"2022 is going to be a transitional year for the entire
asset management space," said
BlackRock (BLK) said it was targeting "record" investment in its business in 2022, including an expected increase in headcount by as much as 10%.
"Looking forward, they are going into investment mode again," Sanders at Edward Jones said. "They are going to spend a lot, and that is probably going to make it tough for them to really have meaningful profit margin and EPS growth in 2022."
BlackRock (BLK) shares rose nearly 27% last year compared with a
32% gain for the S&P 1500 asset manager and custody banks index
.
(Reporting by Sohini Podder in Bengaluru and