Market turmoil hits BlackRock’s bottom line in fourth quarter
However, people put record cash into the company’s generally lower-cost exchange traded funds
New York — BlackRock, the world’s largest fund manager, reported a smaller-than-expected quarterly profit on Wednesday due to financial market turmoil, but investors celebrated the company’s strong sales of relatively low-fee funds. Sinking performance in late 2018 led investors to pull cash from the company’s typically higher-fee funds aimed at beating the market but people put record cash into the company’s generally lower-cost exchange traded funds (ETFs). Overall, the company sold $43.6bn in stock, bond and other “long-term” investment funds, more than the $10.6bn sold the quarter prior. Still, weaker investment performance and the company’s own price cuts hurt. The company collects fees as a percentage of assets under management, which are now just under $6 trillion. The S&P 500 fell more than 10% in the three months ended December 31. Money that the company earned for hitting certain performance targets and for lending out shares to people betting against stocks fell from the ...
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