BlackRock’s investment in long-term products falls short of expectations
Investment company BlackRock has published its financial statements for the second quarter of 2023. During the period, the company’s assets grew to USD 9.4 trillion. However, despite the growth, investments in long-term products were less than expected. The actual amount differs significantly from the forecasts, which has disappointed experts.
The long-term products sector includes mutual funds and ETFs. This sector grew by USD 57 billion in the second quarter, with analysts expecting an average increase of USD 81 billion. Fixed income investments increased by USD 35 billion, and the segment that includes money management products grew by USD 23 billion. At the same time, withdrawals totalled USD 4.3 billion.
According to Rob Capito, president of the investment giant, the business is focusing on products that offer high fixed returns. BlackRock officials believe the current market provides good opportunities for high returns. According to BlackRock:
– active equity products contributed a total of USD 9.7 billion;
– active fixed income generated profits of USD 3.7 billion;
– liquid alternative products generated USD 2.5 billion for BlackRock’s clients.
BlackRock is the world’s largest firm in terms of assets under management. One of the factors in its success is the regular expansion of profit opportunities. One of the company’s priorities is to create the best possible working conditions for investors. To this end, the company offers universal partnership opportunities, including providing a range of financial products for private investment. BlackRock develops effective strategies to generate returns through equity funds, bonds and other instruments. The company also provides advisory, analytical and forecasting services for the financial markets.
Overview of BlackRock’s activities
BlackRock Investment Corporation appeared in the US in 1988 as a division of Blackstone. It received its current name in 1992. At the time, the company had USD 17 billion in assets under management, which grew to USD 53 billion two years later. The company went public in 1999. At that time, its assets reached USD 165 billion. Now, the company belongs to the financial group PNC. The amount of the transaction was USD 240 million.
According to the data, in 2022, BlackRock managed a capital of 10 USD trillion. In addition to traditional financial instruments, the company is also introducing digital assets. In the summer of 2023, BlackRock received SEC approval to develop the Spot Bitcoin ETF.
