BlackRock's assets tumbled to $7.96trn in the third quarter of 2022, lower than analyst expectations, the company announced on 13 October.
Assets under management at the firm are down 16% year-on-year and from $8.5trn in June. Revenue was also down 15% year-on-year to $4.3bn and net income was down 16% at $1.4bn.
However, BlackRock still reported positive net inflows for the three months to the end of September. Long-term net inflows stood at $65bn for the quarter and $248bn for the first three quarters of the year.
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Net inflows into ETFs made up $22bn in the three months, boosted by $37bn worth of flows into bond ETFs.
According to reports, BlackRock will pause discretionary hiring plans for the rest of the year as it anticipates a market recovery may take longer than in previous economic downturns.
"While we continue to have deep conviction in our strategy and the long-term growth of the global capital markets, we have begun to more aggressively manage the pace of certain discretionary spend," CFO Gary Shedlin said on a conference call reported by Reuters.
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Adjusted earnings per share stood at $9.55, higher than analyst expectations of $7.07, according to Bloomberg. This was thanks to a combination of buybacks, lower than expected tax rate and higher valuation of its stake in iCapital.
Larry Fink, chair and CEO of the firm, said: "We continue to evolve our organization, think comprehensively about our clients' portfolios and innovate ahead of their needs, all of which is deepening connectivity across our platform.
"We are uniquely positioned to serve our clients' needs with integrated investment management, technology and advisory expertise."
BlackRock shares were flat following the results and are down 37.9% year to date (14 October).
