BlackRock assets top $9 trillion as Q1 profits surge

Photo: EPA

The world’s largest asset manager BlackRock announced very optimistic financial data and surpassed the expectations of independent experts, Reuters reported. The net inflows to BlakRock’s various funds exceeded 172 billion dollars, far above the Wall Street expectations. Net income rose to $1.2 billion, or $7.77 per share, in the three months ended 31 March, from $1.03 billion, or $6.60 per share, a year earlier. The reading was above the Refinitiv IBES estimate of $7.64 per share. BlackRock’s assets under management rose to a record $9 trillion in the quarter, compared with $6.47 trillion a year earlier.

Fixed income accounted for a bulk of the inflows, as expectations of policy tightening by the Federal Reserve triggered large moves in debt markets and pushed up US Treasury yields. The company also collected higher investment and advisory fees through the quarter, as the recent retail trading frenzy centered around “meme” stocks such as GameStop Corp sparked wild swings in financial markets. Revenue from investment advisory and administration fees, which makes up most of BlackRock’s earnings, rose to $3.47 billion in the quarter, from $2.9 billion a year earlier. BlackRock’s shares, which have gained about 11% this year, hit a record high ahead of the results.

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