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
UBS expands securities lending team
17 August 2017 | Zurich | Reporter: Drew Nicol
UBS’s has regained Iwan Lichtsteiner as a member of its fixed income, securities lending and financing team, effective from October
Clearstream angling for central role in China’s market growth
17 August 2017 | Luxembourg | Reporter: Drew Nicol
Deutsche Börse Group and Clearstream representatives will be present at the Shanghai International Financial Advisory Council being at the end of August
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Drew Nicol
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
Clearstream confirms rates for September
16 August 2017 | London | Reporter: Jenna Lomax
The market infrastructure provider charges different rates for equities and debt, and on a per currency basis
CloudMargin unveils microsite for OTC derivatives
15 August 2017 | London | Reporter: Jenna Lomax
The new microsite, designed by UK-based design agency Eight Arms, was created to help financial institutions globally become accustomed to the new margin rules and other regulations affecting their collateral management functions
Citi loses head of Americas investor services sales
example 28 September 2009 | | Reporter: Drew Nicol
David Tenney has left the bank after four years
Helix to offer repo services to Thomson Reuters
15 August 2017 | New York | Reporter: Drew Nicol
HelixREPO is an integrated trading, sales, and operational system for the fixed income repo finance market that will be available to the North American Wealth Management customers of Thomson Reuters