BlackRock going after individual investors

With a lock on ETFs, money manager sniffs opportunity in mutual funds

Feb 14, 2013 @ 11:29 am

BlackRock Inc.'s Robert Kapito, president of the world's largest asset manager, said the firm sees an opportunity to grow by selling more funds to individuals.

“Retail is an enormous growth opportunity,” Kapito said today at the Credit Suisse Financial Services Forum. New York- based BlackRock is still “underpenetrated” in the U.S. retail market, excluding exchange-traded funds, with less than a 2 percent market share for assets under management in open-end mutual funds, he said.

BlackRock, which manages $3.79 trillion, has been urging investors to get back into higher-yielding assets such as stocks as it seeks to expand its retail business. Kapito, along with Laurence D. Fink, BlackRock's chief executive officer, have said that clients need to diversify and can be harmed by staying in cash-like products.

Kapito said individuals represents about 12 percent of BlackRock's assets under management, while accounting for 34 percent of base fees. BlackRock has less patience with underperforming active products and will seek to replace teams quicker than in the past, he said, as the firm seeks to boost performance and attract new money.

-- Bloomberg News --

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What's the top issue on advisers minds?

Laura Pierson from Carson Group discusses how the old topic of 'Human Capital' is hot again because of millennials.

Latest news & opinion

Advisor Group acquires Signator Investors and plans on folding it into Royal Alliance

Advisor Group takes 'orphan' broker-dealer off the hands of John Hancock Financial Services.

It's official: DOL fiduciary rule is dead

The 5th Circuit Court of Appeals issued a mandate Thursday making its March 15 decision to strike down the regulation effective.

Supreme Court curbs SEC administrative law judges

'Buckets of Money' adviser Raymond Lucia is entitled to a new hearing, court rules.

Opaque, outdated 401(k) plan disclosures harming investors, advisers

Morningstar report: Lack of data on fees, investments makes advice on rollovers costlier and more challenging for investors.

Mutual funds feel the pinch of platform fees

No-transaction-fee options are a big hit with investors, but funds wind up paying the costs — and passing them on.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print