BlackRock: The $6 Trillion Money Manager



Laurence D. Fink, the chief executive of BlackRock. The company, the world’s largest money manager, has been one of the main beneficiaries of the current bull market. Credit Mike Cohen for The New York Times

BlackRock is now a $6 trillion firm.

Continuing to cash in on the boom in exchange-traded funds, the world’s largest money manager ended 2017 with $6.29 trillion under management, up 22 percent from a year ago.

BlackRock reported adjusted net earnings of $3.7 billion for the year on Friday, up 16 percent from 2016 and easily beating analysts’ expectations. The firm also reported a $1.2 billion tax benefit for the fourth quarter, resulting from the recent tax cut package.

Including the tax benefit, earnings were up 59 percent for the year.

In an interview, Laurence D. Fink, the chief executive of BlackRock, highlighted how, despite reductions in fees for its active and passive funds, increased flows drove the firm’s rise in profits.

“We have been very aggressive with fee cuts, and yet our margins continue to expand,” he said.

Mr. Fink, who in the past has been cautious about the market’s rise, said that robust earnings growth, a solid global economy and the effects of the tax cut should, for the moment, sustain the stock market’s nearly nine-year-old rally.

“It’s hard not to be constructive right now,” he said.

BlackRock has been one of the main beneficiaries of the current bull market. Investors have poured money into passive investment funds that follow a wide variety of indexes and strategies at minimal cost since the end of the financial crisis.

Increasingly investors are using E.T.F.s to make bets on the stock and bond markets as opposed to buying the individual securities themselves.

Continue reading the main story


Please enter your comment!
Please enter your name here