Mutual funds drew $3.6 billion in the quarter, including $4.3 billion gathered by target-date mutual funds, the company’s retirement-oriented products. Kennedy said many retail clients have shifted investments away from direct purchases of individual mutual funds and into target-date products, which spread money over multiple underlying funds.
Institutional Withdrawals
Institutional withdrawals were concentrated in a small number of clients “repositioning” their investments, Kennedy said today in a telephone interview.
The losses were “frustrating” because the company has made an effort to broaden its distribution and sales efforts recently aimed at making the firm less vulnerable to withdrawals by large individual clients, Kennedy said.
BlackRock Inc., the world’s largest asset manager, said July 16 its second-quarter net income climbed 11 percent to $808 million. Investors deposited a net $38 billion into its funds.