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įink added that clients are increasingly interested in digital assets and the firm is studying the ecosystem including crypto assets, stablecoins, tokenization, and permissioned blockchains. With demand for #USDC growing and use cases in financial services continuing to scale globally, Circle plans additional strategic growth with a $400M funding round announcement and strategic partnership with BlackRock. “We have seen some clients tactically allocate to commodities and we’ve had about $7bn of net inflows.” “Traditionally real assets like commodities, infrastructure and real estate will insulate a portfolio against higher inflation,” said Kapito. Rob Kapito, president of BlackRock, said on the call there has also been huge investor demand for private credit and loans, and for real assets as an inflation hedge. “We are not seeing any real panic at all in fixed income markets despite the worst performance in 30+ years in one quarter.”
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“Portfolios are being navigated around fixed income as clients are re-evaluating where they should be across the yield curve,” he said. “We believe that our fixed income ETFs will benefit from long-term secular tailwinds that will play a significant role in the modernization of the $100 trillion bond market.”įink expects the yield curve to be inverted for some time and that investors will reposition their portfolios out of longer duration into shorter duration products. “The liquidity, transparency and lower transaction costs of fixed income ETFs present a more efficient way for investors to access the entire bond market,” he added. There was demand for treasuries, short duration, inflation-linked, sustainable and municipal bond ETFs as well as broad-based market exposures which offset risk-off sentiments and areas such as high yield and emerging markets.
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More investors are using fixed income ETFs to gain market exposure and for tactical positioning. Gary Shedlin, chief financial officer at BlackRock, said on the results call that ETFs represented 7% annualised organic asset growth and 4% annualised organic base fee growth with particularly strong flows in core equity, sustainable and commodity ETFs.įink continued that fixed income ETFs generated $8bn in net inflows in the first quarter, similar to equity ETFs. Larry Fink shares his insights on BlackRock’s Q1 earnings results /bkgvDpsXbG Laurence Fink, chairman and chief executive of BlackRock, said in the asset manager’s first quarter results call that ETFs had $56bn of net inflows in the first quarter as clients increasingly use them to efficiently allocate capital, access liquidity and manage risk.īlackRock generated a total $114bn of long-term net inflows in the first quarter, with positive flows across all product types, investment styles and regions taking total assets to $9.6 trillion. US trading volumes at BlackRock’s exchange-traded fund business, iShares, rose nearly 40% in the first quarter of this year from 2021 as investors used ETFs to quickly allocate capital and manage risk during periods of volatility.