BlackRock Earnings Rise 9 Percent, Buoyed by Passive Funds<br />Indeed, as BlackRock cements its place as the industry leader in terms of E. T.F.s — with the index giant Vanguard entrenched in second place — Mr. Fink will remain under pressure to ensure<br />that its other activities, from managing bonds to to its struggling stock-picking division, keep pace with the surging passive business.<br />By LANDON THOMAS Jr. JULY 17, 2017<br />BlackRock, the world’s largest asset management firm, said on Monday<br />that second-quarter earnings had risen 9 percent as investors continued to pour money into the company’s expanding fleet of exchange traded funds.<br />“We had strong flows, our fees are up and we are continuing to build deeper and broader relations with our clients.”<br />In explaining the rush of money into E. T.F.s, Mr. Fink emphasized<br />that now, more than ever, the job for financial firms is to provide solutions-driven advice as opposed to merely pushing a client into a certain fund.<br />Generally one to take a cautionary view toward the markets, Mr. Fink said<br />that the broader investment environment was rapidly improving — thanks to a turnaround in Europe, consistent growth coming out of China and an improving United States economy.<br />The company, which oversees $5.7 trillion in assets, received $94 billion in net investor money during the quarter, with $74 billion of<br />that amount flowing into the company’s iShares-branded exchange traded funds.<br />The continuing strong performance by the iShares division highlights why BlackRock’s chief executive, Laurence D. Fink, made the decision in March to close down<br />and repurpose a number of the firm’s sluggishly performing mutual funds that rely on individuals to pick stocks.
