Blackrock’s Q2 earnings report gave some insights on the performance of its various funds in addition to commentary from its management team. Overall, the asset manager exceeded analysts’ consensus expectations with $9.28 in earnings per share vs $8.45. Compared to last year’s Q2, net income was up 25% while revenue was down 1%. Total assets under management climbed to $9.4 trillion.

However, the company did miss analysts’ estimates when it came to inflows into its equity and fixed income funds at $57 billion vs expectations of $81 billion. Active funds were particularly weak with $9.7 billion of outflows from active equity and $3.7 billion from active fixed income.

These disappointments have weighed on Blackrock’s stock price which has underperformed the S&P 500 YTD. Yet, the company remains confident that future growth will come from active fixed income. According to Blackrock President Rob Kaptio, “There is finally income to be earned in the fixed-income market.” He sees higher yields as a “once-in-a-generation opportunity” and that are supportive of inflows into its lineup of active fixed income products. 

Finsum: In Q2, Blackrock saw negative inflows into active fixed income and equity funds. Yet, the company continues to see these products as key to its long-term growth.