The world's largest money manager, BlackRock, surpassed third-quarter profit predictions as the economy improved, boosting assets under management and pushing up fee income.
In recent quarters, asset managers have benefitted from rising global financial markets as investors put money to work, taking advantage of the post-pandemic economic recovery, which has been fueled by advances on vaccinations and robust fiscal and monetary stimulus.
BlackRock had $9.46 trillion in assets under management at the end of the third quarter, up from $7.81 trillion a year ago.
Analysts say the fund manager's size and reach into every part of the market, including equity, fixed income, multi-asset, and alternatives, put it in a better position than smaller peers.
Income increased by 16 % to $5.05 billion, owing to increased revenue from the company's technology services division, which offset a decline in performance fees during the quarter.
Long-term net flows for the quarter were $98 billion, the same as last year, but organic inflows surpassed the fund manager's 5% target for the sixth quarter in a row.
BlackRock CEO Larry Fink remarked, "Organic growth was broad-based, spanning our active platform as well as each of our ETF (exchange-traded fund) product categories."
In the quarter ended Sept. 30, adjusted net income increased 19 % year over year to $1.69 billion, or $10.95 per share.
According to Refinitiv's IBES statistics, analysts expected the company to make a profit of $9.35 per share on average.