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BlackRock's fixed income products earned $ 80 billion in the first quarter, generating long-term net flows of $ 59 billion. Investors have been showing renewed interest in bonds since Federal Reserve officials reported this year that a rate hike is suspended. The break took place after many traders were positioned for a hike.
The strength of BlackRock's fixed income businesses and alternative cash flows of $ 6.8 billion helped mitigate the impact of investors taking $ 26 billion out of the market. Dollars of BlackRock stock products during the period.
In CNBC's interview, Fink said investors did not return to equities as the stock market rebounded this year.
"There are huge cash reserves on the sidelines," Fink said during a conference call on financial results later Tuesday.
The iShares division of BlackRock is the world's largest issuer of exchange-traded funds and a key component of its business.
The asset manager often indicates that fixed income ETFs are a source of future growth for the industry. Its fixed income exchange traded products generated US $ 32 billion in the first quarter, offsetting US $ 1.6 billion in outflows from its equity ETFs. iShares recorded total inflows of $ 30.7 billion over the period, compared to a record $ 81 billion in the fourth quarter.
BlackRock is recovering since 2018, when the company's stock price had dropped by about 24% and faced three consecutive quarters of institutional cash outflows. During the first quarter, the company reversed this trend and raised $ 29.1 billion in institutional contributions.
BlackRock shares closed up about 3% in New York. He announced earnings per share of $ 6.61, exceeding estimates of $ 6.13 per share, according to analysts surveyed by Bloomberg. Revenues of US $ 3.3 billion decreased 7 percent year-over-year and were in line with analysts' estimates.
The BlackRock stock jumped about 3% on the announcement of the results. AP
"The tone of the market is definitely better than the second half," said Gary Shedlin, the firm's chief financial officer, during an interview. Quarterly net flows were generated by the key activities in which the company invested, he said.
"We believe these investments are paying off," said Shedlin.
In the Asia-Pacific region, where BlackRock is seeking to expand its presence, the company recorded cash outflows of US $ 2.9 billion.
"It looks like things are stalling there," said Kyle Sanders, an analyst at Edward Jones. & Co.
"It's a top priority for them and we're not seeing any progress unfortunately."
Bloomberg
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