Chillin' out till it needs to be funded
Even as the Vanguard threat came closer and equity fund inflows lost steam soon after the new management took over, the company with $3.15 trillion in assets managed to put out an earnings of $432 million double of its $218 million a year ago and 35% higher than the EPS of $1.59 per share of the Q2 2009 figures to $2.21 per share. The street never expect the revenues to double to $2.03 billion 20 million ahgead of reuters estimates average from the street.
The management much admitted that volatile stock and forex markets brought down its AUM to $3.15 trillion from $3.40 trillion but investors would be happy with how earnings and revenues made up for a lean period for inflows for everyone on the street. The merger has thus gone on much better than at counterparts like Legg Mason or even at banks BoA Merrill Lynch that recently merged. After the merger despite expressed concerns about concentration in one company only $38 bn in Institutional funds were withdrawn and even with $25 bn outflow in Cash management products, long term products reported a net new addition of $28 billion
According to Reuters reports
The firm saw $12.9 billion of inflows from iShares investors, $8.7 billion from institutions and $6.8 billion of inflows from retail and high-net-worth investors, it said.
BlackRock said fixed income assets under management increased to $1.08 trillion, while equity assets under management fell to $1.38 trillion amid overall market volatility.
Bank results week, Bank Results season Q2 2010