BlackRock going after individual investors

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

Feb 14, 2013 @ 11:29 am

mutual funds, etfs, money manager, retail investor, blackrock
+ Zoom

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

Sponsored financial news

Featured video

INTV

Advisor Group's Jamie Price: Advisers need to adjust financial plans for clients' longevity

Financial advisers need to walk clients through what-if scenarios much further down on the longevity curve than what they're including in their conversations with them today, says Jamie Price, president and CEO of Advisor Group.

Latest news & opinion

DOL Fiduciary Rule: What you need to know about Acosta's decision

Labor Secretary Alexander Acosta confirmed that the agency's fiduciary rule will become applicable on June 9. Find out what advisers and firms should know when it goes into effect.

Acosta declines to extend delay of DOL fiduciary rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9

Phyllis Borzi says opponents of DOL fiduciary rule face uphill climb to further delay or dilute it

Former assistant Labor secretary who crafted the rule says President Trump won't be able to get rid of it simply because he doesn't like it.

Advisers go on the offensive, getting clients ready for the next market correction

Some proactive planners are spelling out for clients the impact of a 10% or 20% correction.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print