BlackRock Faces $17 Billion in Asia-Pacific Net Outflows Amid Strong Performance in Europe and the Americas

In the first half of 2024, BlackRock, the largest asset manager globally, experienced significant financial challenges in the Asia-Pacific region, reporting $17 billion in net outflows. This decline starkly contrasts with its performance in Europe and the Americas, where the firm enjoyed substantial net inflows during the same period. The majority of the outflows occurred in the second quarter, which accounted for $16 billion, indicating a sharp increase from the $1 billion in outflows experienced in the first quarter.

The underperformance in Asia-Pacific follows a disappointing trend from previous years. Last year, BlackRock saw $33 billion in net inflows during the first half. However, by the end of 2023, total inflows had decreased to $44 billion for the year, reflecting a nearly 50% decline compared to the $87 billion reported in the previous year. This ongoing challenge suggests that the firm is struggling to regain investor confidence in this region, with significant redemptions hampering growth.

In a contrast to the poor performance in the Asia-Pacific market, BlackRock saw a robust response in both Europe and the Americas. In Europe, the firm welcomed $56 billion in net inflows over six months, while the Americas contributed a substantial $89 billion. Despite the challenges in Asia, BlackRock still reported record high assets under management of $10.65 trillion globally. This increase, largely driven by the success of its exchange-traded fund business, highlights the resilience of the firm’s overall operations, even as it navigates difficulties in one of its key markets.