BlackRock's Fink says markets hurt money managers
Tumultuous markets and financial problems in Europe are hurting profits in the asset management industry, according to Laurence Fink, chief executive of BlackRock
This (volatility) is not a good short-term trend for the asset management business, Fink said, speaking in New York at a Barclays Capital conference on Monday.
Fink said that BlackRock, which oversees more than $3.6 trillion, will seek to maintain its profit margin by being even more disciplined on expenses.
Most large investors continue to shun equities and other relatively risky assets and favor fixed-income securities, Fink said.
The trend may be appropriate in the short term but not over the long term, Fink said.
For long-term investors it makes no sense to have a portfolio of bonds other than being frightened of the world, Fink said. Right now, maybe being frightened of the world is a good position to be in.
Shares of New York-based BlackRock dropped $1.32, or 0.9 percent, to $149.75 in afternoon trading on the New York Stock Exchange. The shares have fallen 19 percent over the past three months, almost double the decline of the Standard & Poor's 500 Index.
(Reporting by Aaron Pressman; Editing by Steve Orlofsky)
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