logo-loader

BlackRock quarterly net rises 10%; shares advance

Published: 09:46 16 Apr 2013 EDT

no_picture_pai

 

BlackRock (NYSE:BLK), the world’s biggest money manager, said profit in the first quarter rose 10 percent, surpassing analysts' forecast, as markets and long-dated net new business grew and performance fees increased.

Net income for the quarter that ended March 31 rose to $632 million, or $3.62 a share, from $572 million, or $3.14 a share, in the year-earlier period, the New York-based company said on Tuesday. Excluding one-time charges, the company's adjusted earnings of $3.65 a share topped the average estimate of 20 analysts which was for $3.58 a share. 

Revenue in the January-March period rose 9 percent to $2.45 billion, also exceeding the $2.44 billion forecast by 16 analysts.

The company's assets under management increased 7 percent to an all time high of $3.94 trillion as of March 31.

For the quarter, net inflows in long-term products totaled $39.4 billion, reflecting positive net new business across all client types. Equity, multi-asset class and core alternatives net inflows of $33.7 billion, $9.0 billion and $1.5 billion, respectively, were slightly offset by fixed income and alternatives currency and commodities net outflows of $2.6 billion and $2.2 billion, respectively. 

“Our $39.4 billion in long-dated net new business for the quarter is indicative of positive momentum across all client channels and was driven by the strategic themes we continue to focus on: ETFs, retirement, income, multi-asset class products, and alternatives,” the statement said, citing CEO Laurence D. Fink.

“iShares maintained its leadership position in the global ETF market, capturing $26 billion in net new business," Dink said. "Investors turned to iShares as a way to quickly and efficiently increase their exposure to equity markets."

iShares exchange traded funds are baskets of stocks, bonds and other assets that can be traded on a stock exchange. The company has been marketing for iShares to retain its position as the largest provider of ETFs. 

Performance fees rose 35 percent to $108 million, boosted by a customer shift toward higher-fee products.

The shares rallied 1.1 percent to $256.40 at 9:34 a.m. in New York on Tuesday after the release of earnings. The stock gained about 23 percent since the beginning of the year through Monday, compared with a gain of 9 percent by the Standard & Poor's 500 index (INDEXSP:.INX).

 

BenevolentAI advances novel ulcerative colitis treatment through Phase 1a trial

BenevolentAI (OTC:BAIVF) chief scientific officer Dr Anne Phelan joins Proactive's Stephen Gunnion with positive safety data from the Phase 1a, first-in-human, clinical study of BEN-8744 in healthy volunteers. Phelan explained that BEN-8744 is a potent, selective PD10 inhibitor, uniquely...

16 minutes ago