Blackrock profits surge 40% to £1bn: Investment titan manages £5.7trillion for savers and pension funds
Profits at Blackrock, the world’s largest asset manager, shot up 40 per cent to £1billion in a year which saw assets under management climb £1.1trillion.
The investment titan now manages £5.7trillion for savers and pension funds around the world.
Investors piled £327.3billion more into Blackrock’s funds than they pulled out over the course of 2019 – a record result for the firm, and more than three times as much as in 2018.
BlackRock, which looks after $7trillion of clients’ money, will exit investments that present ‘high sustainability-related risk’
This far exceeded the inflows of its nearest rival Vanguard, which pulled in £203billion.
The other £782.5billion increase in Blackrock’s assets came from rising markets and strong investment performance.
The firm has managed to cash in on the growing popularity of passive funds among investors, which simply track an index and are often cheaper than actively managed alternatives.
In 2019, customers piled £134billion into Blackrock’s iShares range of index-tracking funds.
Active funds, which tend to charge higher fees, still managed to pull in £84billion of investors’ money.