BlackRock Inc – Asset Management Sector Stock
According to a Business Insider article from June 2021, BlackRock is believed to manage some $9 trillion in assets. That number makes it the largest asset manager in the world. More than 60% of that $9 trillion is managed for institutional clients. Because of its scale, BlackRock is among the most influential financial companies in the world. BlackRock is also known for hiring many former US government officials, especially from the Treasury Department and those who have been top economic advisors to the President. The company has a close connection to the US establishment and the central bank. In fact, the Fed asked BlackRock to help out with Bear Stearns and AIG when they were close to collapsing. So, if you are looking to invest in asset management stocks, then prepare a shortlist with established players as well as promising upcoming entities.
BlackRock Announces Q32021 Financial Results
On 13th October 2021, BlackRock announced its third-quarter 2021 earnings numbers. The AUM number went up 21% year-on-year from $7.8 trillion in Q32020 to $9.4 trillion. The total revenue for the quarter was up from $4.3 billion in Q32020 to $5 billion. The net income was also up from $1.36 billion in Q32020 to $1.68 billion. The earnings per share on a diluted basis was $8.87 in Q32020, and it rose to $10.89 in Q32021. Inflows into ETFs were the highest at $58 billion. The retail segment had the second-highest inflow at $23 billion. Institutional inflow was around $17 billion. Company CEO Larry Fink said that while the global economy had rebounded, there were still concerns regarding new virus variants. He also said that interest rates were at historic lows and investors were in search of yields. The high inflation numbers put even more emphasis on real yields. Any investment looking for an asset management sector stock will want to look at an industry giant like BlackRock.
Invest In Asset Management Stocks
Larry Fink pointed out that the ETF industry was on the rise. BlackRock is a major player in the ETF segment as ETFs are preferred by clients due to their transparency and low costs. Larry Fink said that more than 30 million customers invest in BlackRock’s ETFs.