BlackRock hit by $17bn Asia-Pacific outflows in first half

BlackRock hit by $17bn Asia-Pacific outflows in first half

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BlackRock, the world’s largest asset manager, posted $17bn in net outflows in the Asia-Pacific region in the first half of the year, a contrast with its business in Europe and the Americas, where the US fund firm recorded net inflows.

The vast majority of Asia-Pacific redemptions to long-term investments came in the second quarter when the firm saw $16bn in net outflows, an acceleration of the $1bn in net outflows from the first quarter.

In Europe, the Middle East and Africa, BlackRock posted $56bn in long-term net inflows over the first six months of the year, including $36bn in the second quarter.

In the Americas, the US funds group recorded $89bn in long-term net inflows in the first half of 2024, of which $31bn came during the April to June period.

This article was previously published by Ignites Asia, a title owned by the FT Group.

The Asia-Pacific outflows follow a lacklustre performance in the first half of last year when BlackRock recorded $33bn in net inflows, and just $44bn in inflows for the full year. This represented a near 50 per cent decline from $87bn in the previous year.

In the first half of 2024, BlackRock’s total global net flows of $139bn were driven mainly by its exchange traded fund business, which accounted for $150bn in net sales and represented a “record start” to the year for the division.

Its institutional business suffered $35bn in net outflows over the same period, while its retail business posted $13bn of net inflows.

Globally, BlackRock posted record high assets under management of $10.65tn at the end of June, up 13 per cent over the previous 12 months and up 6.5 per cent from $10tn at the start of the year.

Its Asia-Pacific assets represent 8 per cent, or about $850bn, of its total global assets under management at the end of June, but only about 5 per cent of its $3.8bn in base fees.

*Ignites Asia is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at ignitesasia.com.