Market turmoil and a slowdown of client activity due to political uncertainty saw BlackRock’s earnings slide in the second quarter.
Revenues were down 3% to $2.8 billion and net income fell 4% to $789 million, largely due to declines in equity and multi-asset trading fees, as Britain’s vote to leave the EU hit markets.
“Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause,” said Larry Fink, chairman and CEO, BlackRock.
“Our clients are facing unprecedented challenges as they attempt to navigate the current investment environment.”
Meanwhile BlackRock’s exchange traded fund business, iShares, was a significant driver for revenues, with over $16 billion from the business segment.
“iShares generated $16 billion of net new business during the quarter, with significant strength in fixed income and ‘smart-beta’ ETFs, as clients utilize these tools to manage risk and minimise volatility,” said Fink.
In addition BlackRock’s risk management system , Aladdin, saw revenues increase 13% to $146 million.