BlackRock's assets hit record $12.53 trillion on second-quarter market rally
Shares of the company rose 1.1% in premarket trading.
A robust labor market, a healthy consumer and hopes that President Donald Trump would ease some of his harsher trade measures pushed major U.S. indices to all-time highs through the end of June.
That marked a sharp reversal from early April, when tumult in U.S. trade and geopolitical policy battered confidence and fueled recession fears, concerns that BlackRock CEO Larry Fink echoed at the time.
The benchmark S&P 500 (.SPX), opens new tab index rose 10.57% in the second quarter of 2025 after escaping bear market territory.
BlackRock's assets under management rose to $12.53 trillion in the quarter ended June 30, from $10.65 trillion last year. However, long-term net inflows fell to $46 billion in the quarter, down 9.8%.
"We generated 6% organic base fee growth for the second quarter and the first half of 2025 and 7% over the last 12 months," Fink said.
As equities rallied, fixed-income products saw outflows of $4.66 billion, BlackRock said.
Trends for the business are being closely scrutinized, given the turbulence in U.S. treasuries this quarter. The benchmark 10-year yield recorded one of its biggest weekly increases since 2001 after the "Liberation Day" shock.
BlackRock's fixed-income executives expressed concerns last month that ballooning U.S. debt could suppress appetite for longer-dated treasuries and the dollar, which recorded its worst first-half performance this year since 1973.
Safe haven assets like treasuries and the greenback have also suffered as markets price in tax cuts and spending hikes from Trump's recently passed "Big Beautiful Bill", which nonpartisan analysts predict will add more than $3 trillion to the country's $36.2 trillion debt.
A weaker dollar tends to boost returns from foreign-currency assets. BlackRock recorded a positive foreign exchange impact of $171.52 billion in the quarter, compared with a $35.45 billion downward revision in the year-ago period.
Its performance fees fell 42.7% to $94 million in the reported period, after falling nearly 71% in the first quarter.
The low-cost investments juggernaut has been pivoting towards private markets, which provide higher margin revenue compared to those from ETFs, where BlackRock faces intense competition and fee compression as the market matures.
Private markets saw inflows of $6.82 billion in the quarter. The New York-based firm said at its investor day last month that its private markets and technology businesses would make up 30% or more of its total revenue by 2030, up from 15% in 2024.
As part of this push, BlackRock last month unveiled plans to include private assets in its retirement plans, which account for more than half of the money the company manages.
Technology services revenue rose 26.3% to $499 million, reflecting the first full quarter of data provider Preqin, which BlackRock bought in a $3.2 billion deal last year. The deal closed on March 3, 2025.
Its total revenue - most of which is earned as a percentage of assets under management - rose to $5.42 billion from $4.81 billion a year ago.
BlackRock's total expenses rose to $3.69 billion from $3.01 billion last year.
Adjusted profit came in at $1.88 billion, or $12.05 per share, for the three months ended June 30, up from $1.55 billion, or $10.36 per share, a year earlier.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
7 minutes ago
- The Independent
Elon Musk changed his phone number after nasty split with Trump, says Mike Johnson
Speaker of the House Mike Johnson claims billionaire and CEO Elon Musk changed his phone number after his public falling-out with President Donald Trump. Johnson, a Republican from Louisiana, told The New York Post he discovered the change while trying to text Musk amid the 'Big, Beautiful Bill' drama. Johnson previously said Musk ghosted him after the billionaire blew up at Trump over the sweeping spending and tax bill, which cuts taxes for wealthy Americans while curbing access to healthcare and food access programs for millions. 'I sent him a long text message, and then his phone number changed, because after the blow-up, something happened with his,' Johnson told The New York Post. '[Later I] realized I was sending it out into the ether somewhere and he never read it, so I look forward to meeting with him in person,' he added. 'We got to make that right.' Musk, once known as the 'First Buddy,' sparked a public feud with the president last month over the 'Big, Beautiful Bill,' Trump's sweeping spending and tax bill. Trump signed the bill on July 4. But for a month leading up to its passage, Musk railed against it, arguing it would increase the budget deficit by $2.5 trillion. 'I'm sorry, but I just can't stand it anymore,' Musk wrote of Trump's bill on June 3. 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.' Musk spent several months this year leading the Department of Government Efficiency 's efforts to slash government spending. Under his leadership, DOGE laid off hundreds of thousands of federal employees, hollowed out several agencies and terminated thousands of government contracts and grants. Musk and Trump continued to spar until June 5, when the former DOGE leader claimed the president appeared in the Epstein files. 'Time to drop the really big bomb: @realDonaldTrump is in the Epstein files,' Musk wrote. 'That is the real reason they have not been made public. Have a nice day, DJT!' Tensions appeared to ease soon afterward. Musk expressed 'regret' on June 11 for the posts he made about the president, while Trump revealed he had 'no hard feelings' toward Musk. Soon after the bill was signed, Musk announced that he would be forming the new 'America Party.' 'When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,' he wrote on X. Trump called the idea 'ridiculous.' The president also threatened to 'take a look at' deporting Elon Musk to South Africa, where he was born and raised for several years.
Daily Mail
7 minutes ago
- Daily Mail
Airline that deports ICE detainees suspends west coast operation after furious pro-migrant protests
An airline which has been operating deportation flights for the Trump administration has announced major closures after furious pro-migrant protests at several airports. Texas-based budget carrier Avelo Airlines said this week that it will close down its west coast operations at Hollywood Burbank Airport as it struggles financially. The company said it will reduce its operation at the airport to one aircraft until December 2 and then close the base which currently serves 13 routes. Avelo said the protests and its contract with DHS did not have any effect on its decision to close the base and have not impacted its business. 'We believe the continuation service from (Burbank) in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,' the company said in a statement. However, the airport has been the target of several fiery rallies by pro-migrant protesters who have hailed the closure as a response to their calls for a boycott. They include Nancy Klein, from Hollywood, California, who organized seven protests with activist groups CA27Indivisible and East Valley Indivisible in Southern California. 'This change in Avelo's business operations is some evidence that being on the right side of history, while being principled and persistent, can make a difference,' Klein said, adding that another protest is planned at Burbank Airport on July 27. The airline signed a contract with the US Department of Homeland Security in April to transport migrants to detention centers inside and outside America. It faced backlash from customers and employees over its partnership with the DHS. Protests unfolded across the country from outside the Burbank Airport to their hub in New Haven, Connecticut, calling on the airline to end its partnership with the DHS and for customers to boycott the carrier. Susan Auerback slammed Avelo for using migrant deportations 'for their economic benefit' during a protest at Burbank airport earlier this year. 'We will not stand for these mass deportations and we will intervene wherever we can to stop the operation of them,' she told ABC7 reporters at the scene on April 28. 'Protesting an airline that has just decided that this is for their economic benefit to be part of this unjust policy is why we're here.' Avelo's CEO, Andrew Levy, defended the decision at the time, adding that the airline also operated deportation flights under the Biden administration. Texas-based carrier Avelo Airlines signed a contract with the US Department of Homeland Security in April to transport migrants to detention centers inside and outside America 'We realize this is a sensitive and complicated topic,' Levy said in a statement. 'After significant deliberations, we determined this charter flying will provide us with the stability to continue expanding our core scheduled passenger service and keep our more than 1,100 Crewmembers employed for years to come.' Avelo said it had made several changes over the past few years to its West Coast operations but they did not produce the results necessary to continue presence there. The Daily Mail has contacted Avelo for more information on the DHS operations.
Reuters
7 minutes ago
- Reuters
Novartis cannot block generic version of Entresto, judge rules
July 16 (Reuters) - A federal judge rejected Novartis' (NOVN.S), opens new tab request for a preliminary injunction to stop MSN Pharmaceuticals from selling a generic version of the blockbuster heart medication Entresto. In a decision on Tuesday, U.S. District Judge Evelyn Padin in Newark, New Jersey also reversed her prior ruling that Novartis would likely succeed on its claim of trade dress infringement against the defendant MSN proposed selling a generic version of Entresto under the name Novadoz, which blends the names of Novartis and its Sandoz generics unit. Padin also said Novartis' exclusivity over Entresto may not continue indefinitely, and that "denial of injunctive relief and the availability of a generic alternative to a life-savings medication is in the public interest." Novartis and its lawyers did not immediately respond to requests for comment on Wednesday. The judge said its patent-related exclusivity expires today, July 16.
