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BlackRock figures show fourth quarter rush into ETFs
13 January 2017
New inflows surged to $98bn between October and December, led by iShares
BlackRock’s inflows surged in the fourth
quarter as investors poured money into its iShares ETF
The firm reported $98bn of net inflows between October and
December, outpacing the previous quarter’s $68bn
and resulting in a record $202bn full year total.
iShares generated $49bn worth of net inflows in Q4 and
$140bn for the whole of 2016, a new high which included $60bn
into fixed income ETFs over the twelve months.
"Investors are rethinking their approach to active
management, asset allocation and portfolio construction, and
we’re seeing more clients use active and index
strategies together to deliver returns,"
BlackRock’s chairman and chief executive Laurence
US stocks have rallied since November’s
surprise election of Donald Trump who plans to cut taxes and
regulations. However, a combination of a strengthening dollar,
underperforming international equities and negative fixed
income markets produced challenging outcomes for global
investors last year.
"We have purposefully invested in our platform to provide
clients with a full spectrum of offerings including cash,
market cap-weighted indexes, smart beta and factor-based
investment strategies, and high-conviction active products,
whether fundamental, quantitative or illiquid," Fink added.
BlackRock ended the final quarter of 2016 with $5.15trn in
assets under management, up from a year earlier when managed
assets totaled $4.65trn. Full-year revenue came in at $2.89bn,
versus the consensus estimate of $2.96bn.