The world's largest asset manager, BlackRock, and one of its main US rivals, JP Morgan, revealed their latest quarterly and annual flows for 2017.
BlackRock’s founder and CEO Larry Fink said they experienced the ‘strongest flows in BlackRock’s history’ in 2017 with the group recording $367 billion of net inflows.
Of those inflows, $103 billion came in the fourth quarter with the firm now running $6.3 trillion in assets under management (AUM). As well as growth within its individual businesses, Fink mentioned their growth on the international stage following their acquisition of Citibanamex in Mexico – which allowed them to double their AUM in Mexico to $62 billon – and a recent deal they made in China.
‘We continue to expand the global reach of our integrated platform to investors in high growth geographies like China, where earlier this month we obtained our private fund management registration to manufacture and distribute onshore investment products.’
Long-term net inflows were also positive across all major regions, with net inflows of $55.3 billion, $17.9 billion and $7.4 billion from clients in the Americas, EMEA and Asia-Pacific, respectively.
Within its products, the strongest inflows were in fixed income with $42.9 billion, followed by equity with $35.8 billion and multi-asset with $4.9 billion, their respective AUMs coming in at $1.18 trillion, $3.37 trillion and $480 billion.
Its iShares business also had its best year ever, generating $245 billion in net inflows.
JP Morgan Chase reported record AUM for its asset management and wealth businesses in 2017, which reflects higher market levels globally and net inflows.
The firm saw its wealth and asset management segments AUM increase 15% to $2 trillion in the 12 months ending in December 2017, up from $1.7 trillion in the same period in 2016.
In its fourth quarter and end of year results, the firm reported that net client flows amounted to $93 billion in 2017 with positive flows across fixed income, multi-asset and alternative asset classes.
Multi-asset and alternatives remains the category with the highest AUM, which came in at $673 billion in 2017, and saw flows of $42 billion over the year.
The asset management firm gained a net $189 billion in 2017 from market performance and fixed income garnered net asset flows of $36 billion in 2017.
The equity asset class saw the highest net outflows of $11 billion in 2017. However, due to market appreciation, equity's assets increased 22% to $428 billion.
Private banking AUM totalled $526 billion for the year, institutional $968 billion and retail $543 billion.