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Stock Strategist

BlackRock's Solid Growth Continues

Positive flows and market gains lift assets under management to a new record.

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There was little in wide-moat BlackRock’s (BLK) third-quarter results to alter our long-term view of the company, but we have increased our fair value estimate slightly to account for better assets under management levels and fees than we had forecast.

BlackRock closed the September quarter with a record $6.964 trillion in managed assets, up 1.8% sequentially and 8.1% year over year, with positive flows and market gains contributing to growth in assets under management during the period. Net long-term inflows of $52.3 billion during the third quarter were fueled by $741 million of active inflows (with strong flows from equity and alternatives operations offset by fixed-income outflows), $10.0 billion of inflows from the institutional index business (with the preponderance going into fixed-income strategies), and $41.5 billion in inflows from iShares. BlackRock’s annual organic growth rate of 4.7% over the past four calendar quarters is slightly behind management’s ongoing annual organic growth target of 5% but still within our long-term forecast of 3%-5% organic AUM growth annually.

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Greggory Warren does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.