, excluding items, climbed 3% year-over-year to $2.83 per share, beating analysts’ estimates of $2.67 per share.
Assets under management (AUM) declined 3% year-over-year to $3.345 trillion, largely due to market-related declines.
Regarding client flows:
Clients awarded us $4.7 billion of net new business in equity and multi-asset products. Fixed income third quarter outflows of $14.0 billion included a single institutional index client outflow of $9.1 billion with minimal revenue impact. Cash management had third quarter inflows of $0.6 billion while planned advisory distributions totaled $1.2 billion. Third quarter net outflows totaled $10.2 billion, including the $9.1 billion institutional mandate mentioned above. The net new business pipeline totaled $65.2 billion at October 17, 2011, before giving effect to a $36 billion institutional fixed income index redemption notice from a single client that intends to in-source their business over time. Excluding this item, the pipeline included 94% in long-term products and 6% in cash management and advisory assignments. BlackRock Solutions® added 13 net new assignments during the quarter, and the pipeline of contracts and proposals in progress remains robust.
Due to volatility and underperformance, investors have been seeking alternatives to their current strategies. BlackRock has had a competitve advantage in this environment thanks to its wide variety of investment products. Here’s what CEO Larry Fink had to say:
“With the persistence of volatile markets, low interest rates and the low-growth environment, an increasing number of investors are reevaluating their investment and asset allocation decisions. Clients are increasingly looking for a broader and more diversified range of solutions, value-added advice and risk management tools, with a number of clients opting for strategies that rely on index, ETF and multi-asset class products. In this environment, BlackRock is uniquely positioned to meet the needs of investors – with our global platform, broad mix of capabilities, and the benefit of BlackRock Solutions.”