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BlackRock's third-quarter performance shows robust growth, with assets under management reaching a record USD 13.46 trillion. Market gains, supported by resilient U.S. consumer spending and easing interest rates, increased fee income and drove investor inflows, especially into ETFs and fixed-income funds. Long-term net inflows totaled around USD 171 billion, offsetting higher costs from its acquisition of HPS Investment Partners and weaker performance fees. Adjusted earnings rose to USD 1.91 billion, reflecting both the inflows and the firm's continued organic growth, underscoring its strong position in global asset management.
BlackRock reported an increase in its third-quarter profit as a rally in global markets boosted fee income and drove its assets under management to a record USD 13.46 trillion. Continued consumer spending in the U.S., despite higher borrowing costs, supported economic activity, helping equity markets gain and encouraging investors to allocate more funds to lower-cost index strategies. Advertisement
The moderation in the labor market and easing inflation led the Federal Reserve to reduce interest rates in September, its first cut this year. Investors anticipating further rate reductions later in 2025 significantly increased inflows into BlackRock's fixed-income exchange-traded funds (ETFs). These inflows helped the firm offset weaker performance fees and higher expenses linked to its acquisition of alternative asset manager HPS Investment Partners.
Assets under management rose from INR 11.48 trillion a year earlier to USD 13.46 trillion in the quarter. Long-term net inflows reached approximately USD 171 billion, led by continued strength in the ETF business, which remains BlackRock's primary source of organic growth. The firm's ETF segment, known for low-cost, passively managed funds, has consistently attracted investor interest amid market volatility and rate changes.
BlackRock posted adjusted earnings of USD 1.91 billion, or USD 11.55 per share, compared with USD 1.72 billion, or USD 11.46 per share, a year earlier. The increase reflects both the strong inflows into ETFs and fixed-income funds and the overall growth in assets under management, highlighting the company's resilience in navigating market fluctuations and cost pressures from acquisitions.
Source Reuters
5th Jun, 2025
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