- BlackRock's assets under management fell in the fourth quarter, as institutional investors pulled nearly $35 billion.
- The firm missed analysts' earnings expectations.
- Bright spots included exchange-traded-funds platform iShares, which saw record new money last quarter, and technology services.
BlackRock, the world's largest asset manager, got just a bit smaller last quarter.
The firm's assets under management declined 5% year-over-year, to $5.98 trillion, according to fourth-quarter earnings released Monday.
The New York-based firm missed expectations on earnings, with adjusted earnings per share of $6.08, compared with analysts' predictions of $6.23.
Here are the rest of the key numbers:
- Revenue: $3.43 billion, meeting expectations
- Net income: $927 million, down 60% year-on-year and missing expectations of $1.1 billion.
- Adjusted earnings per share: $6.08, compared to expectations of $6.23
- Assets under management: $5.98 trillion
- Total net flows: Inflows of $49.8 billion
- iShares: Net inflows of $81.4 billion
- Institutional: Outflows of $34.6 billion
Overall, the firm saw $124 billion of inflows in 2018, including records for iShares and illiquid alternative strategies. Technology service revenue, which accounts for about 6% of the firm's overall revenue, increased 19% last year, on the heels of strong demand for Aladdin and digital wealth technologies, both major growth areas for the firm.
“BlackRock is well positioned to deliver the holistic portfolio solutions, technology services and strategic counsel that clients increasingly are seeking, especially in the face of meaningful headwinds for the asset management industry," CEO Larry Fink said in an earnings statement.