BlackRock Now Has $ 8.7 Trillion In Assets After iShares ETF Boom

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Black rock (BLK), the world’s largest fund management company, ended the year with nearly $ 8.7 trillion in total assets, an increase of 17% from a year ago.

Approximately $ 2.7 trillion of BlackRock’s assets under management are in the company’s iShares ETFs. This is a 19% increase from the end of 2019. Investors invested nearly $ 79 billion in new money in iShares funds in the fourth quarter alone.

BlackRock fared much better than other major financials in 2020 – a year of turmoil and volatility due to the global Covid19 crisis and resulting recession. The company benefited from the rapid rebound in the stock market, even as many large banks saw their profits hit by lower interest rates and weaker loan demand.
BlackRock shares have jumped nearly 50% in the past 12 months, while SPDR Financial Sector Fund (XLF), an ETF that owns most of the major US banks, rose just 1%. BlackRock stock fell more than 2% on Thursday despite the good results.
“The world faced unprecedented challenges in 2020 – many of which continue today. Throughout this time, BlackRock has remained committed to meeting the needs of all of our stakeholders, ”BlackRock CEO Larry Fink said in the earnings press release.

Fink added in a conference call with investors and analysts on Thursday that “the hardships faced by people around the world in 2020 and the inequalities still exasperated by the pandemic have only reinforced the sense of savings of BlackRock, to make saving easier and more affordable “.

He stressed that the company will continue to promote sustainable investment trends as a major economic theme and expressed hope that the eventual economic rebound will lead to a more resilient economy in the future.

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“The pandemic has taken a dramatic toll on all of our lives, disrupting the way we work, our way of living. At the same time, it has led to a profound change in economies and in the very functioning of societies, creating opportunities to rethink our society, ”he added during the conference call.

Fink said concerns about increasing economic inequality, along with low interest rates and heightened inflation expectations, should be a global topic for any investor saving for retirement or other long-term goals. .

However, he did not address the changing political or regulatory landscape during the call. No mention has been made that Joe Biden is set to take over the presidency and Democrats will control both the House and the Senate.

But Fink looked upbeat about the future, arguing that even if long-term bond yields start to rise, “demand for stocks will persist” and higher yields will push “the banking system to be much. stronger”. He said the increase in bond yields was “a positive sign for the economy”.

He concluded the conference call with a public safety message: “Everyone, please feel safe. Everyone, please stay healthy, and everyone please get vaccinated. Thank you.

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