(Bloomberg) — BlackRock Inc. became the first public asset manager to achieve $10 trillion in assets, driven by an increase in fourth-quarter inflows into its exchange-traded fund.
Investors poured a net $104 billion into the ETF in the three months ended December 31, the firm said in a statement on Friday — a record for the company.
The world’s largest asset manager also benefited from a rally in markets, with the S&P 500 climbing 11% in the latest quarter and 27% in 2021. Investors added a net $169 billion to BlackRock’s long-term investment vehicles, which include ETFs and mutual funds. in the last three months of the year.
“Our business is more diverse than ever before,” Chief Executive Officer Larry Fink said in the statement. “Proactive strategies, including options, contributed more than 60% to the 2021 organic base fee increase.”
The results cement BlackRock’s position at the top of the industry, with assets under management rebounding from declines at the end of the third quarter. The earnings come before an annual letter that Fink, 69, sends to corporate leaders, prioritizing everything from boardroom diversity to climate change.
Actively managed funds, a genre that includes ETFs and mutual funds, saw a net $101 billion in inflows. BlackRock now manages $2.6 trillion in such assets. The firm’s alternative business, which includes hedge funds, saw $5.5 billion in inflows, bringing its total assets to $265 billion.
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Employees’ compensation and benefits increased by $218 million from the fourth quarter of 2020, reflecting the firm’s move to increase employee pay as inflation rose in the U.S. Starting in September, all at the director level and below. The base pay for employees increased by 8%.
New York-based BlackRock saw adjusted earnings of $10.42 per share, beating analysts polled by Bloomberg’s average estimate of $10.15. Revenue in the quarter was $5.11 billion, missing from the average estimate of $5.16 billion.
According to Kyle Sanders, an analyst at Edwards Jones, BlackRock’s revenue declined due to a drop in performance fees. The stock fell 1.7% to $852.50 in New York trading at 9:45 a.m.
