Business

BlackRock quarterly profit beats, assets under management top $6 trillion


BlackRock , the world's largest asset manager, reported a better-than-expected first-quarter profit and garnered tens of billions of new investor cash as global financial markets rebounded from a volatile fourth quarter.


"Investment flows look stronger than we anticipated," said Kyle Sanders, an analyst with St. Louis-based financial services firm Edward Jones.


"BlackRock has a really strong reputation in fixed income management and it looks like that asset class came back into favor with interest rates kind of dipping lower.


Total institutional fund net inflows grew nearly nine-fold to $29.12 billion in the first quarter from a year ago.


The company, however, continued to feel the pinch from fee pressures amid an ongoing industry-wide shift from high-fee actively managed mutual funds to low-fee passive-investment products.


BlackRock shares, which slid 23.5% in price during 2018, its worst performance since 2008 amid market volatility, have recovered ground to trade up nearly 15% for 2019.






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