- After opening lower following a disappointing quarter, BlackRock (BLK +1.8%) is nicely higher in afternoon action.
- Speaking to Reuters, CEO Larry Fink called it a "tough" quarter, particularly on the active management side, where money continues to exit in search of lower-cost passive funds.
- BlackRock is a big player in both so the money might have stayed at the company, but active management produces fatter profit margins than index-tracking funds.
- As for performance, nearly two-thirds of the assets in the company's tax-exempt bond funds lagged their benchmark on a Y/Y basis. Just 41% of assets in the so-called "scientific" active equity space outperformed.
- Now read: BlackRock's (NYSE:BLK) CEO Laurence D. Fink on Q1 2016 Results - Earnings Call Transcript (April 14)