BlackRock's shares edge lower as inflows slow

BlackRock Inc, the world's biggest asset manager, handily beat second-quarter profit estimates but showed a slowdown in money inflows, sending shares down about 2 per cent, reports Reuters.
The company's adjusted profit of $9.28 per share leap-frogged analysts' estimates of $8.46, according to Refinitiv IBES. BlackRock saw a 25 per cent rise in second-quarter adjusted profit, helped by gains in its private-equity investments.
The New York-based firm ended the second quarter with $9.4 trillion in assets under management (AUM), up from $8.5 trillion a year earlier and $9.1 trillion in the first quarter.
Net inflows for the quarter were $80 billion, down from $89.6 billion a year ago and $110 billion in the first quarter, amid heightened economic uncertainties.
"While asset inflows of $80 billion were still very good, they did fall short of expectations from the Street," said Kyle Sanders, senior equity research analyst at Edward Jones. Analysts were expecting $105 billion in inflows, he said.
Analysts also noted the inflow was more concentrated in lower fee products, such as exchange-traded funds (ETFs). "The firm's flow mix remains skewed toward lower fee strategies, which continue to weigh on organic base fee growth," Goldman Sachs said in a note to clients.
Citigroup described the results as "a bit of a mixed quarter," given BlackRock's profit beat but lower-than-expected inflows.
Revenue fell 1.4 per cent to $4.4 billion from a year earlier, driven by the impact of market movements over the past 12 months on average assets, BlackRock said.