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BlackRock profit beats as its low-risk funds attract more money

BlackRock profit beats as its low-risk funds attract more money
FILE PHOTO: The BlackRock logo is seen outside of its offices in New York City, U.S., October 17, 2016. REUTERS/Brendan McDermid/File Photo -
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Brendan McDermid(Reuters)
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(Reuters) – BlackRock Inc <BLK.N>, the world’s largest asset manager, beat analysts’ estimates for quarterly profit on Tuesday, as more money rolled into its fixed-income funds against the backdrop of an uncertain global economy.

The company, which manages $6.96 trillion (5.51 trillion pounds) in assets, attracted $84.25 billion in new money during the quarter, providing a peek into the risk appetite of investors amid fears of a slowing U.S. economy.

Investors preferred BlackRock’s low-fee passive-investment products over its actively managed funds. BlackRock’s iShares ETFs took in $41.5 billion of new money, up 15% from the prior quarter.

BlackRock is trying to become a bigger provider of technology used by Wall Street firms to combat competitive pricing pressures in the asset management business. The company’s technology unit continued its robust growth with a 30% rise in revenue.

Net income fell to $1.12 billion, or $7.15 per share, in the third quarter ended Sept. 30 from $1.22 billion, or $7.54 per share, a year earlier. (https://bit.ly/33uIwRx)

Analysts had expected a profit of $6.96 per share, according to IBES data from Refinitiv.

(Reporting by Bharath Manjesh in Bengaluru; Editing by Bernard Orr)

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