BlackRock Earnings Reflect Clients Investing Globally

BlackRock CEO Lawrence Fink said clients are becoming more comfortable getting back into the stock market and taking a more global approach to investing.

Larry Fink
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Larry Fink

"We began to see clients move from cash to equities, from fixed-income to equities, and our perflormance reflected that," he told CNBC Thursday. "Clients are more comfortable with a more global approach, and that was quite evident in our quarterly earnings."

BlackRock reported first-quarter operating profit rose 13% Thursday.

It is not just sovereign wealth funds investing globally. Fink said that as US pension funds "look for the most appropriate investments you’re going to see a more global bias to investing."

He said he is "still more bullish on the United States in the next 12 months."

As US corporations continue to report higher sales and better earnings, the "private sector is going to fuel the US economy" over the next few quarters, he said. "They are building large cash positions and will continue to have large dividend increases."

As for the public sector, Fink said the Congress and the Obama administration need to address the issues raised by Standard & Poor's reduced outlook on the US to negative from stable.

"No question the S&P warning is a big issue and we should treat it with incredible seriousness," he said. "It will impact how we think about global investing. I don’t believe our country can wait until 2013 to address the deficit."

He considers the Dodd-Frank financial regulation law "more of an outline than a rule" that will have little effect on BlackRock because of the nature of its business. But he said the biggest issue is that financial companies still have to deal with multiple US regulators.

"Unfortunately, that was not addressed. We did not eliminate any regulator and any supervision, and that is what is causing much of the confusion," he said. "We actually have more regulators and more supervision."