BlackRock reported assets under management of about $9.09 trillion as of the end of the first quarter of 2023, a 5% decline from the year-ago quarter, but a 5.8% increase from the fourth quarter of 2022.
Net inflows totaled $110.32 billion in the latest first quarter, compared with net inflows of $86.36 billion a year earlier, according to a Friday release.
In the fourth quarter of 2022, BlackRock recorded total net inflows of about $113.73 billion.
By client type, institutional witnessed net inflows of $80.71 billion, ETFs saw inflows of $21.71 billion, while retail saw inflows of $283 million in the first quarter. Cash management accounted for about $7.62 billion of inflows.
With respect to ETFs, Laurence D. Fink, chairman and CEO, stated in the release: "BlackRock led the industry with $34 billion of bond ETF net inflows and accounted for over 60% of total fixed income ETF trading volume during the quarter."
Specifically, fixed-income ETF inflows totaled about $33.5 billion in the first quarter, while equity ETF outflows were $10.1 billion and multiasset ETF outflows amounted to $1.6 billion.
By product type, equity strategies saw net outflows of $6.79 billion in the first quarter, while fixed income and multiasset strategies had net inflows of $53.88 billion and $53.68 billion, respectively.
Alternative strategies saw net inflows of about $1.94 billion in the first quarter.
With respect to earnings, BlackRock posted net income of about $1.16 billion on revenue of $4.24 billion in the first quarter, marking 19% and 10% declines from the respective year-ago figures. BlackRock attributed the year-over-year decline in revenue primarily to the "impact of significantly lower markets and dollar appreciation on average AUM and lower performance fees."
The decrease in year-over-year net income was attributed to "a higher effective tax rate, partially offset by higher non-operating income in the current quarter."
Regarding the ongoing turmoil in the banking sector, Mr. Fink said in the release: "I believe today's crisis of confidence in the regional banking sector will further accelerate capital markets growth, and BlackRock will be a central player. Increased financing through the capital markets will require the scale, multiasset capabilities and excellence in portfolio construction that BlackRock consistently delivers across market cycles."
He added: "Throughout our history, moments of market dislocation and disruption have served as inflection points for BlackRock. We've always emerged stronger, more differentiated and more deeply connected with clients."
In a call with analysts on Friday morning, Martin S. Small, chief financial officer, said headcount growth at the firm in 2023 is expected to be "flat" compared to the prior year.
