BlackRock Talks Cash on Q3 Call
BlackRock reported its Q3 2024 Earnings late last week, and, as usual, mentioned cash and money market funds several times on its Q3 earnings call. CFO Martin Small tells us, "Cash management saw net inflows of $61 billion in the quarter, driven by both US government and international prime funds, and included multiple large new client mandates. Clients recognize the benefits of our scaled and integrated cash offerings, and this is contributing to sizable inflows of BlackRock.... The fourth quarter's also been historically strong for inflows, so we're staying connected with our clients." CEO Laurence Fink comments, "Many investors have large cash holdings. Money market industry assets are hitting new records in the quarter, including BlackRock's own cash position, which had $61 billion in net inflows. But investors will have to re-risk to meet their long-term return needs.... BlackRock is exceptionally well positioned in front of that $9 trillion of money market funds across the industry as it makes its way into public and private markets." During the Q&A, they were asked about flows. Small replies, "With respect to money markets, our business is largely institutional. It's been very durable. The $61 billion of flows that's come there I think have been good. The trajectory has been very strong this year.... When we look at it, our money market fund business is at $850 billion today. It's nearly 70% bigger than it was five years ago. Cash is a meaningful part of client portfolios, but we're seeing that sort of return to fixed income as well, which has been good for the flow trajectory."
