BlackRock misses by $0.01, reports revs in-line; reports 12% YoY increase in AUM to $4.096 trillion
Reports Q3 (Sep) earnings of $3.88 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $3.89; revenues rose 6.6% year/year to $2.47 bln vs the $2.48 bln consensus.
The Company reported $4.096 trillion in assets under management at September 30, 2013, up 12% year-over-year
BLK reported $25.3 billion of long-term net inflows driven by Retail and iShares. Retail global long-term net inflows of $8.3 billion included net inflows of $3.4 billion in the United States and $4.5 billion in EMEA. Long-term net inflows were diversified across all asset classes, led by multi-asset class net inflows of $2.9 billion with particular demand for the flagship Multi-asset Income and Global Allocation funds.
iShares long-term net inflows of $20.2 billion included U.S. and European iShares net inflows of $16.4 billion and $5.0 billion, respectively. Renewed appetite for emerging markets and broad market European equity exposure in the latter part of the quarter drove equity net inflows of $21.1 billion, partially offset by fixed income net outflows of $1.5 billion. Investment advisory, administration fees and securities lending revenue of $2.2 billion increased $129 million from the prior year due to growth in long-term average AUM.
"Long-term net inflows of more than $25 billion reflected positive flows across all major asset classes and geographies, driven by demand for outcome-oriented solutions, unconstrained fixed income and retail alternative strategies. We are seeing the steps we have taken to further enhance performance and invest in our brand drive accelerating growth in retail flows. Our Global Retail business added $8.3 billion of long-term net inflows in the quarter and more than $22 billion thus far in 2013, driving 7% year-to-date annualized organic growth, up from 3% growth for full year 2012. Our iShares ETFs also saw strong net inflows as liquidity-oriented investors turned to iShares once again to increase exposure during the quarter, and as buy-and-hold investors continued to access our Core Series product suite, which has attracted $9 billion of inflows year to date."