BlackRock’s assets under management rose to US$13.46-trillion in the third quarter, up from US$11.48-trillion a year earlier.BRENDAN MCDERMID/Reuters
BlackRock BLK-N on Tuesday reported a higher third-quarter profit as a rally in global markets lifted fee income and pushed its assets under management to a record US$13.46-trillion.
Resilient consumer spending despite higher borrowing costs helped sustain the U.S. economic momentum, fuelling gains in equity markets and prompting investors to pour money back into lower-cost index strategies.
A cooling labour market and moderating inflation pushed the Federal Reserve to cut interest rates in September – its first reduction this year – while expectations of further easing later in 2025 fuelled strong inflows into BlackRock’s fixed-income exchange-traded funds (ETFs).
This inflow helped the firm offset softer performance fees and higher costs linked to the acquisition of alternative asset manager HPS Investment Partners.
BlackRock’s assets under management rose to US$13.46-trillion in the quarter, up from US$11.48-trillion a year earlier. Long-term net inflows totalled about US$171-billion, led by continued strength in its ETF business, which remains the firm’s key driver of organic growth.
The world’s largest asset manager reported adjusted earnings of US$1.91-billion, or US$11.55 per share, for the three months to Sept. 30, up from US$1.72-billion, or US$11.46 per share, a year earlier.