BlackRock (NYSE: BLK) reported Q1 EPS of $4.25, $0.04 worse than the analyst estimate of $4.29. Revenue for the quarter came in at $2.62 billion versus the consensus estimate of $2.73 billion.

• Cash management AUM decreased 3% to $292.0 billion.
• Advisory AUM ended the first quarter at $10.6 billion.

“BlackRock performed well in a challenging market environment and our first quarter 2016 results demonstrate our ongoing ability to help clients achieve their investment goals,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “BlackRock generated long-term net inflows of $36 billion in the quarter, driven by positive global flows across both active and index products. Over the last twelve months, we saw $118 billion of long-term net inflows, muting the impact of $148 billion of market and FX headwinds over the same period.

“Strong organic asset growth and positive mix shift largely offset equity market headwinds, as a 1% year-over-year decline in base fees outpaced a 9% average fall in the MSCI World Index over the same period. While we of course were not immune to the effects of market movements, which impacted both base fees and performance fees this quarter, the magnitude and diversification of our inflows speak to the differentiation of BlackRock’s platform and our ability to serve our clients.

“iShares were once again a critical tool for investors to manage their portfolios in a period of heightened volatility. During the quarter, iShares saw more than $24 billion of total net inflows, capturing the #1 market share of net inflows globally, in the US and in Europe. iShares flows were led by fixed income, with record quarterly net inflows of more than $27 billion, as investors utilized bond ETFs to efficiently access liquidity and diversify exposure.

“Across our Institutional business, first quarter net inflows of $12 billion were driven by strong active fixed income and multi-asset flows. The investments we’ve made to deepen relationships with our clients are generating results, and over 50% of our largest institutional clients have five or more products managed by BlackRock.

“BlackRock’s US Retail business generated long-term net inflows of $1 billion, primarily driven by strong long-term investment performance across our active fixed income platform. As the US active mutual fund industry experienced first quarter outflows for the first time since the financial crisis, BlackRock’s client-centric, solutions-oriented approach continued to deliver inflows.

“BlackRock Solutions revenue grew 16% year-over-year, led by Aladdin, our unifying technology platform. In the evolving regulatory environment, we are seeing growing demand from clients, as asset owners and managers focus on risk management and adapt to change. We are also seeing increasing opportunities in the retail marketplace to provide our distribution partners with institutional-quality asset allocation, risk management and digital advice capabilities.

“BlackRock remains committed to constantly evolving our organization to meet the long-term needs of our clients. We continue to invest in our business to capture the opportunities ahead of us and drive growth despite current market volatility. Doing so requires making smart and difficult decisions about allocating resources, and led to our decision to initiate a restructuring during the quarter that will streamline and simplify our organization, driving efficiencies across our platform to better serve our clients and deliver returns for our shareholders.

“I want to thank our employees for their unwavering focus on creating better financial futures for our clients. We are confident that our unique and differentiated business model remains well positioned for growth in the current environment.”

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