BlackRock Inc., the world’s largest money manager, saw slower net flows in the third quarter as nervous investors pulled money from some products.
The firm had outflows from institutional clients in the period, which Chief Executive Officer Larry Fink called disappointing in an interview on CNBC Tuesday. He attributed the withdrawals to choppy markets.
“The markets are showing that investors are confused,” Fink said on CNBC. “I was disappointed in the net flows.”
Shares in the world’s largest asset manager slid about 3.5 percent in early trading in New York.
The outflows from institutions were offset by BlackRock’s iShares exchanged-traded fund business, which saw net inflows of $33.7 billion. The firm is the largest issuer of ETFs globally and that accounts for about one third of its total assets under management.
BlackRock’s institutional clients pulled money from index and active funds for outflows from those clients of $24.8 billion. Fink said in the company’s earnings statement Tuesday that firms were cutting risk amid “ongoing divergent monetary policy and geopolitical uncertainty.”
Overall the firm’s revenue increased 2 percent compared with the same period last year. Its technology unit posted strong gains of 18 percent. Fink has said he hopes technology will power 30 percent of the firm’s revenue by 2022.
The New York-based money manager’s assets rose to $6.44 trillion.
This article was provided by Bloomberg News.