20 April 2017
New York
Reporter: Drew Nicol

BlackRock’s sec lending falls short in Q1


BlackRock’s Q1 securities lending revenue failed to match last year’s figures, with the world’s largest asset manager recording $141 million last quarter, just shy of the $148 million achieved in 2016.

As part of its tangible assets sub-section of its Q1 report, BlackRock noted that the number of separate account assets and separate account collateral held under securities lending agreements increased from 177 as of 31 December 2016 to 187 by 31 March.

The value of these assets went from $220 billion last year to $231 billion at the end of March.

As a business group, investment advisory, administration fees and securities lending revenue increased to $171 million from Q1 2016.

BlackRock said this reflected “the impact of higher markets and organic growth on average assets under management (AUM), and the effect of the roughly $370 billion in AUM acquired in the BofA Global Capital Management acquisition in April 2016”.

The overall revenue boost was partially offset by the impact of foreign exchange movements and the effect of one less day in the current quarter.

Equity net inflows of $1.8 billion reflected inflows into index mutual funds. Multi-asset net outflows of $1.7 billion were largely due to outflows from world allocation strategies.

Long-term net inflows into iShares exchange-traded funds (ETFs) reached $64.5 billion thanks to equity net inflows of $44.6 billion, with strength in iShares Core, precision exposure and financial instrument ETFs.

Fixed income net inflows of $20.3 billion reflected inflows into investment grade corporate, emerging markets debt and treasury bond funds.

Laurence Fink, chairman and CEO of BlackRock, commented: “Both retail and institutional investors continued to utilise BlackRock’s iShares ETFs as the building blocks for their portfolios and in combinations to drive active returns.”

“iShares saw record quarterly inflows of $64 billion, again capturing the number one share of industry flows globally, in the US and in Europe, and in equity and fixed income.”

Fink continued: “Building on record total net inflows of $202 billion in 2016, we began 2017 by repositioning our active equity platform and investing in our business for future growth. Going forward, we will continue to transform change into opportunity, using our advantaged market position to create better financial futures for clients and drive long-term growth for shareholders.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
No further SFT regulations on the horizon, says European Commission
20 October 2017 | Paris | Reporter: Jenna Lomax
article synopsis 300 characters only so it fits to three lines. always add three periods to finish synopsis...
LEI compliance is non-negotiable, says ESMA
20 October 2017 | Paris | Reporter: Jenna Lomax
Steven Maijoor, chair of ESMA stated that there is no room for negotiation where legal entity identifiers are concerned
US appeals court dismisses US equity lending mismanagement case
20 October 2017 | Missouri | Reporter: Drew Nicol
Allegations of mismanagement of a securities lending programme brought by two US Bank pension beneficiaries was dismissed by the US Court of Appeals for the Eighth Circuit this week
Clearstream promises post-Brexit services continuity
19 October 2017 | London | Reporter: Jenna Lomax
Clearstream confirmed it will continue to offer stable custody services to its UK-based clients no matter how the Brexit negotiations evolve
EU commission lays down the law on MiFID II compliance
19 October 2017 | Brussels | Reporter: Jenna Lomax
Belgium, Malta, France, Greece, Luxembourg, Netherlands, Portugal, Spain and Sweden are among the 19 infringing member states due to face the commission’s wrath
Margin rules depress derivative contract terms, survey finds
19 October 2017 | Brussels | Reporter: Jenna Lomax
Only few changes were reported regarding credit terms and conditions with respect to non-centrally cleared OTC derivatives
AAOI and Euronav top FIS hot stocks lists
18 October 2017 | London | Reporter: Jenna Lomax
The Belgium-based operator of crude oil tankers and storage facilities, has been a regular feature on the list in the last month