Blackrock Is Soaring As Investors Plow Money Into ETFs
NEW YORK(CNN BUSINESS)- Black rock the owner of the iShares family of exchange-traded funds and the world largest asset supervisor, has grown larger amidst the COVID-19 pandemic. BlackRock said Tuesday that it now manages $7.8 trillion assets, a 12% increase from the previous year.
BlackRock thrives through these volatile times due to the continued allure of passively managed index funds. BlackRock said that iShares possessed a total of $2.3 trillion assets during the third quarter of the year where nearly 70% were stock funds.
Blackrock’s revenue and profit easily crossed the Wall Street’s prediction.
“As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients’ needs with global insights, strategic advice and whole-portfolio solutions,” said BlackRock CEO Larry Fink in a press release.
A surge in BlackRock’s stock by 3% is noticed with an overall growth of 25% in 2020.
On a conference call with analysts, BlackRock Chief Financial Officer Gray Shedlin said “the company was able to very quickly migrate from 16,000 people in 60 offices to 16,000 people in 16,000 offices.” He specified that only 6% to 7% of its staff is working from office.
Fink says he feels “very productive and energizing.” To be working from BlackRock’s New York headquarters at least 3 times a week.
BlackRock seems to be victorious at times when other Wall Street investment banks are struggling.
JPMorgan Chase (JPM), Citigroup, Bank of America and Goldman Sachs are all still in the red zone.
Fink said in a conferee call with an analyst” improving macro backdrop” that had boosted the stock market and brought a spurt in tech stocks –particular over the past few months. Pointing at the concerns about restarting the economy in the US associated with the lag in stimulus ,Fin cautions the investors to keep navigating growing risk in the coming months that my beat up due to the upcoming Presidential election in US.
He also said there seems to be an extended”silent crisis of retirement” in the US, as many existing investors withdraw their support due to lack of financial resources. Fink also states that the older investors need to be more cautious about their retirement savings; as the US Treasury yields are extremely low because the Federal Reserve keeping interest rates at 0.
“There’s no question.. government bonds are going to plat less and less of a role for most retirement portfolios,” Fink said.” You certainly would not use government bonds for income purposes.”