BlackRock CEO Weighs In On Q2 Earnings, Explains Why The Company Saw Net Outflow For The First Time In Many Quarters

BlackRock, Inc. BLK reported better than expected second-quarter numbers before market opening on Wednesday. EPS on an adjusted basis for the quarter came in at $4.96, above analysts' estimates of $4.80. For the first time in many quarters, with a net $36.65 billion flowing out, the asset manager saw a net outflow of funds.

Larry Fink, BlackRock CEO, was on CNBC post the earnings declarations to break down the numbers.

Net Outflows, Yet Good Quarter For Active Management

"We actually had outflows in the quarter," Fink said. "We had $24 billion of active and iShares inflows, we had about $31 billion of index outflows by 1 or 2 base low but low fee products. So, but some of those clients actually went from index to active. So, we actually had a very good quarter in active management."

Reasons For Good Performance In Active Management

Fink was asked what he will attribute as the cause for the company to have a good quarter in active management. He replied, "A, our performance in fixed income. And if you see probably the biggest change -- we have been working on this for 3 years -- 78 percent of our equity performance is above the index. I mean, this is a big turnaround over the last few years that we have been hoping […] happen."

"But more importantly, probably the biggest story underlying this is we saw quite a few what I would call official institutions who were building rainy day funds. It's raining in some parts of the world and they are using that now for, they'll use that money for cash needs," Fink concluded.