US asset management giant BlackRock has reported $6.28trn of assets under management as of 31 December 2017, up 22% year-on-year ($5.14trn).
The manager has recorded its strongest net inflows ever over the full year 2017, having recorded $367bn of total net inflows, including $103bn in Q4 2017.
Hence at the end of 2017, BlackRock managed 63% of its long-term AUM for clients in the Americas, 29% for clients in EMEA and 8% for clients in Asia-Pacific.
iShares breaks inflows record in 2017
The passive business of the firm, iShares ETFs, has established a new all-time high erasing that of 2016, with $245bn of full year net inflows throughout 2017, including $54.8bn in the last quarter of 2017.
iShares’ detailed results show equity net inflows of $44.9bn were driven by both US and global equity market exposures while the $8.7bn fixed income net inflows were poured into the fixed income market broadly and investment grade corporate funds. Also commodities iShares generated $1.0bn of net inflows.
Q4 2017 active retail inflows of $8bn in fixed income
On the active retail side, some $11.4bn of net new inflows were reported in Q4 2017 split between $7.4bn in the United States and $4bn internationally.
BlackRock specified that fixed income net inflows of $8bn were diversified with led inflows into unconstrained, short duration and municipals categories. It also reported multi-asset net inflows of $2bn and equity net inflows of $1.1bn that went mainly into global equities.
Institutional outflows in equities in Q4 2017
BlackRock’s Q4 2017 institutional active net inflows amounted to $2.2bn. If multi-asset and fixed income products drove the flows, equity outflows of $1.2bn were seen in Q4 2017 on the institutional segment, primarily due to outflows in fundamental active equities.
Alternatives’ institutional net inflows were $2.1bn, excluding $3.9bn of capital return associated with real estate and private equity fund-of-funds, or $1.8bn total net outflows, the firm said. Institutional index net inflows in Q4 2017 reached $12.2bn.
Laurence Fink, chairman and chief executive officer of BlackRock, noted that the manager’s alpha-seeking strategies, combining human investment expertise and data analytics, have brought $24bn of net inflows in 2017.
“Technology and risk management revenue, powered by Aladdin, increased 14% for the full year, and demand remains strong across our full range of capabilities. In 2017, we expanded our technology reach, scaling our distribution capabilities through Aladdin Risk for Wealth Management, Cachematrix, iCapital and Scalable Capital,” Fink said.
BlackRock’s chairman highlighted that 2017 net inflows formed 7% organic asset growth and that the company will “continue to expand the global reach of our integrated platform to investors in high growth geographies like China”.
BlackRock was granted a private fund management license earlier in January to manufacture and distribute onshore investment products.