BlackRock Keeps Getting Bigger But Fails to Meet on Revenue
- Rakes in a record $74 billion for exchange-traded funds
- But overall revenue fails to meet analysts’ expectations
BlackRock headquarters in New York.
Photographer: Victor Blue/BloombergThis article is for subscribers only.
It’s tough trying to be the Amazon.com of ETFs.
While BlackRock Inc. raked in $74 billion in exchange-traded fund flows in the second quarter, that record was in part obscured by revenue that failed to beat estimates. The revenue miss was largely driven by lower performance fees on two long-only funds that didn’t beat their benchmarks by as much as they did a year earlier and weaker securities lending revenue hampered by less merger-and-acquisition activity, said Chief Executive Officer Laurence D. Fink in an interview with Bloomberg.