BlackRock has seen record growth across a number of its offerings and taken a harder stance on sustainable investment, threatening a number of companies with action for making “insufficient progress” on climate risk.
BlackRock generated $100 billion of quarterly net inflows, and saw a 4 per cent increase in revenue year-over-year, reflecting higher performance fees and a 17 per cent growth in technology services revenue.
“Clients are turning to BlackRock more than ever before as they face increasing uncertainty about the future, and we are bringing together the entirety of our differentiated platform to help them,” said CEO Larry Fink. “Clients are relying on BlackRock for our unique insights, guidance and comprehensive investment solutions. This is leading to deeper partnerships, and we’re seeing clients entrust BlackRock with a greater share of their assets.”
BlackRock also reported 6 per cent annualised organic asset growth for the quarter and higher organic base fee growth, reflecting the “strength of the diversified investment management platform”, primarily in its iShares fixed-income ETFs and active equity strategies, which both saw record inflows.
“BlackRock’s strong fiduciary culture is resonating in the depth of our relationships and the strength of our results,” Mr Fink said. “Our steadfast focus is on serving all of our stakeholders through this crisis. I am honoured by the trust that clients, governments and communities have placed in us, which we approach with a deep sense of responsibility.”
BlackRock has also revealed that it is taking a harder stance on climate risk, saying it had identified 244 companies making “insufficient progress” on integrating climate risk and taken voting action against 53. The remaining 191 companies are “on watch”, and those that don’t make significant changes will face votes against management in 2021.
“While we have been speaking with companies for years on sustainability issues, our investment stewardship team has intensified its focus and dialogue this year with companies facing material sustainability-related risks,” BlackRock said in a statement. “Our approach [to] climate issues, in particular, is to focus our efforts on sectors and companies where climate change poses the greatest material risk to our clients’ investments.”