The asset manager saw its assets under management swell to some $ 429 billion in 2019, a record growth of nearly 25%. The assets managed by the American giant are approaching 7.500 billion dollars.
Over a billion dollars collected per day. BlackRock, already the world’s leading asset manager, attracted record new cash flows to manage in 2019, which has resulted in a strong financial performance. The US giant posted annual revenue of $ 14.54 billion, up 2.4%, for net profit of $ 4.48 billion, an increase of 4%, according to results released this morning. Wednesday.
The group led by Larry Fink saw its portfolio of assets under management swell by some 429 billion dollars in 2019, bringing its outstanding amounts to 7.429 billion, a record increase of nearly 25%. “Customers are increasingly turning to BlackRock as a strategic partner, not only to offer them products but globally for direction on macroeconomic and geopolitical issues.”, welcomed Larry Fink in a statement.
BlackRock largely dominates the ETF market in Europe
BlackRock was one of the big beneficiaries of the surge in US markets last year. The influx of capital into listed index funds (ETFs), an easy way to gain exposure to the upside of the stock market, has resulted in a sharp increase in management fees. Blessed bread for BlackRock, one of the three key players in index management with Vanguard and State Street.
The nature of these funds, which aim to “passively” replicate a stock market index, has long justified the inaction of the three ETF giants on societal issues such as the climate. But Larry Fink took advantage of the announcement of his results to insist on the strategic shift he intends to take, as he announced in his annual letter published Tuesday.
Often targeted by NGOs, Larry Fink has announced his desire to exclude from his active management portfolios (i.e. 1,800 billion in assets) companies making more than 25% of their turnover in the extraction of thermal coal. ‘here at the end of the year. It also wants to extend its range of sustainable ETFs with the creation of “twin” funds for the most popular classic ETF products. “Over time, we expect sustainable ETFs themselves to become the most popular. ““This is the most important change described by Fink”, estimates an analyst at Impact Alpha.
Larry Fink’s plea to green BlackRock
It remains to be seen whether the group will keep its promises. BlackRock made a move in this direction just before the publication of Larry Fink’s letter, by joining the influential group Climate Action 100+. The giant will however have to show its white paws again during the next season of general assemblies. The Order of American nuns, the Sisters of Mercy, has tabled a resolution urging BlackRock to review its policy in the light of climate change.