BlackRock, the world’s largest asset manager, reached the record of having under its umbrella the control of more than 10 billion dollars.
The explanation is simple: the company added a net $170 million in long-term investment options (such as ETFs and mutual funds) and benefited from the advance of the markets in 2021. It no longer has rivals.
In this way, BlackRock has become the first administrator to reach 10 trillion dollars in assets, with investors trusting more than 100 billion net dollars in ETFs, the company explained in a statement linked to its fiscal year 2021 report. This is the largest delivery of funds for investments of this type since the first quarter of 2015.
This capital inflow, plus the rally in the markets, with the S&P500 up more than 10 percent at the end of 2021 (27 percent for the full year).
In the statement, Larry Fink, director of BlackRock, says that the firm’s business is “more diversified than ever,” with “active strategies and great alternatives that have achieved growth.”
The fund manager ended last year with net profits of US$5.9 billion, equivalent to a 19.6 percent increase compared to 2020.
Thus, at the end of the 2021 financial year, BlackRock’s assets under management were comparable to 10.01 trillion dollars, a value that translates into a year-on-year increase of 15.29 percent.
In all of 2021, BlackRock had net income of $540 billion, an increase in assets of 6 percent.
The value of the fund manager’s businesses in 2021 as a whole achieved, according to the firm, US$19.37 billion, 19.5 percent more.
“BlackRock has delivered the strongest organic growth in our history, even as our assets under management hit new highs,” Fink said.
BlackRock owns almost everything
BlackRock is the largest Western fund manager of large companies, powerful families, insurers and pension funds.
It was founded in 1988 in New York and is one of the youngest funds of its kind. Others, like Templeton or Fidelity, were born in the immediate aftermath of the war.
But BlackRock, despite its age, is the most powerful in the world because it already manages assets of more than 10 billion dollars.
It was founded by Fink himself and Robert Kapito. To get an idea of what your portfolio size means, only two countries in the world have a larger economic size: the United States and China.