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Opalesque Exclusive: BlackRock quarterly reporting gives insight into market environment From Kirsten Bischoff, New York: In this morning’s quarterly investor update BlackRock, Chairman and CEO Laurence D. Fink provided some insight into how investment management firms are trying to get a handle on the current market environment. One of the world’s largest publicly traded investment management firms, BlackRock ended Q1 2008 with $1.36tln in assets, an increase of 1% for the quarter, but falling short of estimates. In a statement released by BlackRock part of the decrease in net non-operating income was attributed to “a decline in valuations from co-investments in hedge funds/funds of hedge funds, real estate and other investments.”

Looking at BlackRock’s income flow as a microcosm of the financial galaxy may be one way to explore investor reactions to the ongoing volatility of the markets. Assets under management at BlackRock rose 1% in the first quarter and 18% since the end of the Q1 2007. Net asset values declined by $27.4bln during the quarter, however net new business was $35.2bln. Of this new business, $3.3bln flowed into alternative investments.

The firm said that as fear gripped the markets investors were most actively seeking high quality cash management products. Fink spoke of this asset flow during the morning call. “For the first time we are seeing strong outflows in fixed income, going into......................

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