BlackRock hits record $11.5 trillion in Q3

by / ⠀News / October 16, 2024
Example of airline incident: The United Airlines passenger removal incident in 2017 highlighted poor service recovery. While United eventually apologized and revised its overbooking policies, they should have immediately offered higher compensation for volunteers and handled the situation with more empathy and care. Less than desirable experience: I experienced a long delay due to mechanical issues without proper communication. This affected my adequate service level, as I expected timely updates. Factors like poor communication and lack of transparency influenced my negative perception. Largest gap for airlines: The largest gap is customer service, particularly in handling delays and cancellations. Airlines should improve communication, offer real-time updates, and provide better compensation or alternatives to close this gap. Measuring customer satisfaction: Customer satisfaction is more difficult to measure for airlines because it depends on various factors like service features (comfort, timeliness), emotions (stress of travel), and external events (delays, cancellations). Each flight experience can vary greatly. Technological advances: Real-time customer support via apps, better in-flight entertainment, and improved seating comfort would enhance the airline experience. Also, more efficient boarding processes would reduce stress for passengers. Best at relationship marketing: Southwest Airlines excels in relationship marketing with its "Bags Fly Free" policy and no change fees. Their friendly customer service and transparency build strong customer loyalty. Problems post-pandemic: Airlines faced staffing shortages and operational disruptions after the pandemic. Many struggled with surging demand while maintaining service quality, which led to delays and cancellations. Service innovation experience: I experienced a self-check-in kiosk that sped up the check-in process, making my experience more efficient. This innovation increased my loyalty to the airline. Service guarantees: Airlines offer guarantees like on-time arrival credits or reimbursement for lost luggage. These guarantees can influence my decision if an airline is known for reliable service and follows through on its promises. Handling of COVID-19 mask requirements: Airlines generally handled the mask situation well by enforcing policies, though inconsistencies and confrontations arose with passengers. Overall, they adapted quickly to changing regulations but faced challenges in ensuring compliance.
Example of airline incident: The United Airlines passenger removal incident in 2017 highlighted poor service recovery. While United eventually apologized and revised its overbooking policies, they should have immediately offered higher compensation for volunteers and handled the situation with more empathy and care. Less than desirable experience: I experienced a long delay due to mechanical issues without proper communication. This affected my adequate service level, as I expected timely updates. Factors like poor communication and lack of transparency influenced my negative perception. Largest gap for airlines: The largest gap is customer service, particularly in handling delays and cancellations. Airlines should improve communication, offer real-time updates, and provide better compensation or alternatives to close this gap. Measuring customer satisfaction: Customer satisfaction is more difficult to measure for airlines because it depends on various factors like service features (comfort, timeliness), emotions (stress of travel), and external events (delays, cancellations). Each flight experience can vary greatly. Technological advances: Real-time customer support via apps, better in-flight entertainment, and improved seating comfort would enhance the airline experience. Also, more efficient boarding processes would reduce stress for passengers. Best at relationship marketing: Southwest Airlines excels in relationship marketing with its "Bags Fly Free" policy and no change fees. Their friendly customer service and transparency build strong customer loyalty. Problems post-pandemic: Airlines faced staffing shortages and operational disruptions after the pandemic. Many struggled with surging demand while maintaining service quality, which led to delays and cancellations. Service innovation experience: I experienced a self-check-in kiosk that sped up the check-in process, making my experience more efficient. This innovation increased my loyalty to the airline. Service guarantees: Airlines offer guarantees like on-time arrival credits or reimbursement for lost luggage. These guarantees can influence my decision if an airline is known for reliable service and follows through on its promises. Handling of COVID-19 mask requirements: Airlines generally handled the mask situation well by enforcing policies, though inconsistencies and confrontations arose with passengers. Overall, they adapted quickly to changing regulations but faced challenges in ensuring compliance.

BlackRock’s assets under management reached a record $11.5 trillion in the third quarter of 2024. The firm’s strong performance was driven by its push into private markets and high demand for its exchange-traded funds (ETFs). BlackRock reported total net inflows of $221 billion for the quarter, with ETF inflows contributing $97 billion.

The company’s third-quarter net income was $1.63 billion, slightly higher than the $1.6 billion reported a year ago. Ryan Jackson, a senior manager research analyst at Morningstar, said, “The iShares’ bond ETFs have been in high demand for quite some time.

BlackRock’s asset growth in Q3

Their taxable-bond products represented about 23% of assets at the start of 2024 but claimed nearly half of iShares net flows so far this year.”

The ETF industry generated a quarterly record of $280 billion in inflows for the third quarter and is expected to surpass $1 trillion in yearly inflows, breaking its all-time single-year high. BlackRock’s iShares ETFs grew to $4.2 trillion, accounting for 37% of the firm’s total assets under management. Cathy Seifert, an analyst at CFRA, believes that BlackRock is likely to continue expanding, particularly as money flows out of money market funds and into their ETFs as interest rates fall.

Seifert also noted that BlackRock is diversifying into alternative investments, including private credit, which is a growing category among asset managers. During the recent quarter, BlackRock’s alternative investments attracted $5.5 billion in inflows. BlackRock’s stock, which has gained more than 21% this year, rose over 3% in mid-day trading following the announcement of the company’s record-breaking assets under management.

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