8.8 C
London
Wednesday, February 1, 2023
Home"Unlike Anything We've Seen In Decades," BlackRock's Larry Fink Said In Internal...
Array

“Unlike Anything We’ve Seen In Decades,” BlackRock’s Larry Fink Said In Internal Memo While Describing Volatile Markets

Date:

Related stories

Adani Stock, Bonds Meltdown As Credit Suisse Halts Margin Loans

Adani Stock, Bonds Meltdown As Credit Suisse Halts Margin Loans Turmoil remerged in the Adani group Wednesday after a top Swiss bank stopped accepting bonds from companies tied to Gautam Adani's corporate empire for margin loans.  Bloomb...

South Africa’s Energy Crisis Could Spark A Political And Economic Disaster

South Africa's Energy Crisis Could Spark A Political And Economic Disaster By Haley Zaremba for Oilprice.com, South Africa’s energy crisis is teetering on the edge of a major political and economic crisis. Bogged down by inefficiency, ...

Where Corruption Is Rampant

Where Corruption Is Rampant Transparency International has released its 2022 Corruption Perceptions Index which gauges levels of perceived public sector corruption in 180 countries and territories around the world. As Statista's Martin Ar...

Trans Criminals Who Raped Women Are Women, Says Scottish Leader

Trans Criminals Who Raped Women Are Women, Says Scottish Leader Authored by Paul Joseph Watson via Summit News, Scottish leader Nicola Sturgeon says transgender criminals convicted for raping women are women, despite a car crash interview...

Hyperinflationary Hell: Lebanese Central Bank Devalues ‘Lira’ By 90%

Hyperinflationary Hell: Lebanese Central Bank Devalues 'Lira' By 90% Cash is now king in Lebanon, where a three-year economic meltdown has led the country's once-lauded financial sector to atrophy and turned the country into a Venezuelan-e...
"Unlike Anything We've Seen In Decades," BlackRock's Larry Fink Said In Internal Memo While Describing Volatile Markets

BlackRock, the world's largest asset management firm, reported an 18% decline in fourth-quarter profits on Friday, hit by a year of cross-asset contagion among stocks, bonds, and currency markets, but recorded positive stock and bond inflows via institutional clients in the quarter.

Most of BlackRock's earnings are derived from fees on investment advisory and administration services. When global stocks and bonds tumbled by 20% and 14%, respectively, last year, the result was the manager's assets under management also plunged. 

The New York-based firm's AUM dropped from $10 trillion a year ago to $8.6 trillion in the quarter, and revenue slid by 15% to $4.3 billion. 

Full-year revenue fell by 8% "primarily driven by the impact of significantly lower markets and dollar appreciation on average AUM and lower performance fees," BlackRock said in a statement.

But there was some good news. The firm said $146 billion in long-term inflows were recorded in the fourth quarter, up from $65 billion in the previous quarter. When accounting for outflows, total net flows were $114 billion. 

Then there were layoffs. BlackRock slashed 2.5% of its headcount, or about 500 jobs, for which it incurred $91 million in restructuring charges during the quarter. 

An internal memo obtained by Financial Times revealed BlackRock's Larry Fink's thoughts about last year's tumultuous operating environment, saying it's "unlike anything we've seen in decades."

Tyler Durden Fri, 01/13/2023 - 15:40

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here