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BlackRock’s assets under management surged to an all-time high of $11.5tn last quarter as the world’s largest money manager benefited from a rally in markets and attracted record new cash from investors.
The inflows helped push revenues up 15 per cent to $5.2bn, surpassing analysts’ expectations. Improved margins lifted the group’s net income to $1.63bn.
Assets shot up 26 per cent in the quarter, powered by $160bn in long-term flows and investors pouring an additional $61bn into its cash management products.
The prospect of the US Federal Reserve cutting interest rates attracted money into bond funds, while the S&P 500 climbed 5.5 per cent in the quarter.
“Our strategy is ambitious, and our strategy is working,” chief executive Larry Fink said on Friday. “We are effectively leveraging our technology, scale, and global footprint to deliver profitable growth.”
BlackRock shares are up nearly 20 per cent this year, nearing the record high $971 set in November 2021. They were little changed in pre-market trading on Friday.
Analysts polled by Bloomberg had expected revenue of $5bn. Adjusted operating income rose 26 per cent to $2.1bn, beating expectations of just under $2.0bn.
The bulk of the new investor money went into the exchange traded funds and index products that are BlackRock’s bread and butter. But New York-based BlackRock is making a concerted push into alternative assets, which command much higher fees.
Its $12.5bn purchase of Global Infrastructure Partners closed after the quarter ended. The Financial Times reported this week that BlackRock is one of several groups looking into a possible purchase of HPS, a private credit manager that spun out of JPMorgan.