BlackRock’s assets hit record $7.8-trillion at end of third quarter
BlackRock’s shares are up 22% in 2020, compared with a 3% drop for more than a dozen of its rivals in the US
New York — BlackRock’s quarterly results exceeded analysts’ estimates on Tuesday helped by broad-based strength in its businesses, as the recovery rally in global financial markets helped the world’s largest asset manager end the quarter with a record $7.81-trillion in assets under management.
“Each of our strategic investment areas, including iShares exchange-traded funds (ETFs), alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the past year,” said BlackRock CEO Larry Fink.
Financial markets rallied in the third quarter, extending the second quarter’s dramatic rebound from a pandemic-fuelled low hit in March, as accommodative global central banks and improving growth prospects lifted risk appetite.
The S&P 500 rose 8.5% for the quarter ended September 30, even as investors remained wary of the US presidential election on November 3 and data underlined an uneven economic recovery against the backdrop of a resurgence of coronavirus cases around the world.
“Good markets always help, but they continue to take market share from smaller rivals,” said Kyle Sanders, an analyst with financial services firm Edward Jones. “We had pretty high expectations coming into the quarter and they far exceeded those.”
The New York-based company’s net income rose 27% to $1.42bn, or $9.22 per share, in the third quarter, from $1.12bn, or $7.15 per share, in 2019. Analysts had expected earnings of $7.80 per share, according to IBES data from Refinitiv.
Net inflows in the quarter totalled $129bn, the company said, compared with $100bn in the prior quarter. More than 50% of the company’s long-term inflows were driven by clients in Europe and Asia.
Investors poured money into BlackRock’s ETFs as well as active funds that seek to beat the market.
BlackRock’s shares are up 22% in 2020, compared with a 3% drop for a Thomson Reuters index that includes more than a dozen of BlackRock’s industry rivals in the US. BlackRock’s shares were up 3.8% in trading before the bell on Tuesday.
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