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 -
Brendan McDermid(Reuters)
Euronews logo
Text size Aa Aa

(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. (

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)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.