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The threat of a global recession, rapidly rising interest rates and the Ukraine crisis have slammed both bonds and stocks this year, keeping investors on the back foot in a blow to companies such as BlackRock (NYSE:BLK).
The asset manager, which makes most of its money from fees charged for investment advisory and administration services, said revenue in the third quarter fell 15% year-on-year to $4.31 billion.
BlackRock’s assets under management (AUM) dropped 16% to $7.96 trillion as a stronger dollar also piled on pressure by dampening the value of investments in key European and Asian markets.
While overall net inflows were positive in the quarter, coming in at $65 billion, BlackRock’s retail clients withdrew about $5 billion, spooked by the weak market conditions.
Net income fell to $1.4 billion, or $9.25 per share, for the three months ended Sept. 30, from $1.68 billion, or $10.89 per share, a year earlier.
Analysts on average had expected the asset manager to report a profit of $7.07 per share, according to IBES data from Refinitiv.
It was not immediately clear if the reported numbers were comparable to estimates.
