BlackRock Inc., (NYSE:BLK) the world’s biggest asset manager, saw the capital it manages fall by nearly $1 trillion in the first quarter as investors pulled money out of funds at a record pace.
BlackRock, which has a huge influence on global financial markets, reported a 23% drop in quarterly profit as investors moved out of stocks, exchange traded funds and other investment vehicles and into cash.
The company ended the first quarter with $6.47 trillion in assets under management, down from $7.43 trillion in the final quarter of 2019. At the same time, BlackRock's operating expenses surged 43% to $3.03 billion.
The New York-based company’s net income fell to $806 million, or $5.15 per share, in the first quarter ended March 31, from $1.05 billion, or $6.61 per share, a year earlier.
The coronavirus pandemic hammered global financial markets in the first quarter of the year and soured investor appetite for riskier assets like stocks. The benchmark S&P 500 index fell 20% during the period.
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