FNG Exclusive… It looks like BlackRock is calling a top in the market for CFD brokers.

After we exclusively reported last month that BlackRock had sold down its long-held position in shares of Plus500, FNG has learned via regulatory filings that the American investment giant has now also sold out of nearly half of its holdings in Plus500 rival IG Group.

BlackRock – the world’s largest asset manager with more than $6.8 trillion under management – has long been one of IG Group’s largest shareholders, keeping its holdings in IG at or around the 10% mark for the past three years. Regulatory filings made in the UK now indicate that last week BlackRock sold down its position from 9.84% to 5.05%. Based on the current IG share price (LON:IGG), that would mean that BlackRock sold about £139 million (USD $181 million) worth of shares last week, leaving its remaining IG holdings worth about £147 million (USD $191 million).

IG shares have gone on a very boom and bust and boom roller coaster ride over the past 5 years, so it is unclear exactly how BlackRock has done on its investment in IG. At 753p per share IG isn’t too far off from its all-time high of 955p set in mid 2016 – but on the flipside IG hasn’t ventured below 500p for very long either during that period. (With Plus500 we reported that BlackRock was under water with its investment until Plus500’s recent share price surge during the COVID-19 pandemic, bringing it basically back to even. Frankly, we think that the same is about correct with its IG holdings as well).

IG Group share price graph, past 5 years. Source: Google Finance.