BlackRock Plunges 6.17% Amid Industry Fund Struggles

On April 7, 2025, BlackRock's stock experienced a significant drop of 6.17% in pre-market trading, reflecting investor concerns and market volatility.

BlackRock's recent financial performance has been under scrutiny, with its industry-focused mixed funds reporting substantial challenges. The 2024 annual report for the BlackRock Industry Selection Mixed Fund revealed a year marked by declining share values and net assets, resulting in a net loss. The fund's A and C shares both reported negative earnings, with A shares posting a loss of 1,608,692.74 yuan and C shares a loss of 4,164,532.38 yuan. This financial strain is further evidenced by the fund's net asset value, which decreased by 19.21% year-over-year.

The fund's investment strategy, which involved adjusting positions and sector allocations in response to market fluctuations, did not yield the desired results. Despite efforts to capitalize on opportunities in new energy and other sectors, the fund's performance lagged behind its benchmark, indicating potential issues with its investment approach. The fund's heavy reliance on manufacturing and financial sectors, which underperformed in 2024, contributed to its overall poor performance.

Looking ahead, BlackRock's management is focusing on optimizing its investment strategies to better navigate market volatility and improve returns. The fund's management fees and transaction costs have been reduced, which could help lower operational expenses and enhance profitability. However, the fund's ability to attract new investors and stabilize its asset base remains a critical challenge.