BlackRock now has $ 8.7 trillion in assets after the iShares ETF boom

Black stone (BLK), the world’s largest money management company, ended the year with almost $ 8.7 trillion in total assets – an increase of 17% over the previous year.

Approximately $ 2.7 trillion of BlackRock’s assets under management are in the company’s iShares ETFs. This represents a 19% increase from the end of 2019. Investors put almost $ 79 billion in new money into iShares funds during the fourth quarter alone.

BlackRock remained much better than other major financial stocks in 2020 – a year of turmoil and volatility due to Covid’s global crisis – 19 and the resulting recession. The company benefited from the rapid recovery of the stock market, even when many large banks saw their profits affected by lower interest rates and weaker demand for loans.
BlackRock’s shares have risen nearly 50% in the past 12 months, while the Financial sector SPDR fund selected (XLF), an ETF that owns most of America’s major banks, has risen just 1%. BlackRock’s shares fell more than 2% on Thursday, despite good results.
“The world faced unprecedented challenges in 2020 – many of which continue today. Nevertheless, BlackRock has remained steadfast in meeting the needs of all of our shareholders,” said BlackRock CEO Larry Fink in the press release from earnings.

Fink added during a conference call with investors and analysts on Thursday that “the difficulties experienced by people globally in 2020 and the inequality further exasperated by the pandemic have only strengthened BlackRock’s sense of economics to make it easier and more accessible.”

He emphasized that the company would continue to promote sustainable investment trends as an important economic issue and expressed hope that the eventual economic recovery will lead to a more resilient economy in the future.

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“The pandemic has had a dramatic impact on all of our lives, disrupting the way we work, how we live. At the same time, it has led to a profound change in economies and even in the way societies work, creating opportunities to redesign our society” , he added during the conference call.

Fink said concerns about rising economic inequality, along with low interest rates and rising inflation expectations, need to be a general theme for any investor who saves for retirement or other long-term goals.

He did not address changes in the political or regulatory landscape during the call, however. No mention was made of the fact that Joe Biden is about to assume the presidency and that the Democrats will control the House and the Senate.

But Fink seemed optimistic about the future, arguing that even when long-term bond yields start to rise, “demand for shares will persist” and that higher yields will push “the banking system to be much stronger”. He said the increase in bond yields was “a positive sign for the economy”.

He ended the conference call with a public safety message: “Everyone, please feel safe. Everyone, please, stay healthy and everyone get a vaccine. Thank you.”

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