BlackRock’s Robert Kapito, president of the world’s largest asset manager, said the firm sees an opportunity to grow by selling more mutual funds to individuals.
“Retail is an enormous growth opportunity,” Kapito said this past week at the Credit Suisse Financial Services Forum. BlackRock is “underpenetrated” in the U.S. retail market, excluding exchange-traded funds, with under 2 percent market share for assets under management in open-end mutual funds, he said.
BlackRock, which manages $3.79 trillion, has been urging investors to get back into higher-yielding assets such as stocks as it seeks to expand its retail business.
Kapito has said that clients need to diversify and can be harmed by staying in cashlike products.
- Beloved Mama's Mexican Kitchen in Belltown to close
- Paul Allen's First & Goal signs letter expressing concerns over Sodo arena
- Seattle no longer America's fastest-growing city
- West Seattle couple leaves all their assets -- $847,215 -- to Uncle Sam
- Helmet camera captured deadly Yosemite cliff jump
Most Read Stories
Kapito said individuals represents about 12 percent of BlackRock’s assets under management, while accounting for 34 percent of base fees.
BlackRock has less patience with underperforming active products and will seek to replace teams quicker than in the past, he said, as the firm seeks to boost performance and attract new money.