Strong inflows for BlackRock as revenues and earnings rise

A strong fourth quarter ends 2015 for BlackRock, though earnings and revenues don't quite meet analysts' expectations.

BlackRock saw particularly strong inflows of funds in the fourth quarter of 2015, according to its full year earnings statement.

The world’s largest asset manager saw $54 billion of long-term net inflows during Q4, its third highest flow quarter on record, which is said reflects the resilience of its differentiated business model. Through the year as a whole the firm saw net inflows of $152 billion.

While revenues and profitability were lower than analysts expected, the firm delivered 3% revenue growth and a 5% increase in its dividend to $2.29 per share.

The iShares exchange-traded fund business saw the bulk of the firm’s inflows, with funds under management increasing by $47.5 billion over the quarter for equities and $11.9 billion for iShares fixed income. Non-ETF index products fared less well, with net outflows of $12 billion.

Active equity products also saw healthy inflows of $4.8 billion, while active fixed income remained relatively flat, seeing inflows of $232 million.

BlackRock’s CEO, Laurence D. Fink, said the firm’s wide-ranging business model was key to its success and ability to withstand changing market conditions, and also highlighted a series of leadership changes announced earlier this week as an example of its approach.

“Despite the volatile market environment, our financial resilience allowed us to make significant long-term investments in our business to position us for future growth. These investments included building out capabilities in alternatives, factor-based strategies, big data and retail technology, as well as in areas like infrastructure and impact investing, where we are working with our clients to create positive societal outcomes,” he said.

“The leadership enhancements we announced earlier this week once again demonstrate the deliberate approach that BlackRock and its Board take to develop our talent – regularly evolving the organisation to broaden the team’s experience, to anticipate the needs of clients and to position us for future growth.”

BlackR$ock’s share prices was up 1.77% at the time of writing to $310.