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BlackRock hits record $6 trn in assets, helped by US tax overhaul

The New York-based company's shares were up 2.3% in trading on Friday morning

Reuters  |  New York 

Photo: Reuters
Photo: Reuters

Inc charged past a record $6 trillion in assets, its profit beating forecasts, as investors flooded into the relatively low-cost funds of the world's largest

A new US law, which sliced corporate and individual income rates, also helped the company's results in the fourth quarter ended December 31. said it saw a $1.2 billion benefit related to the and raised its quarterly cash dividend by 15 percent.

"We've been winning more share of wallet," told

"Fees are really important and are becoming more important."

Fink said the reform was putting more money in his clients' pockets, which they would need to invest, and that the increased cash could allow him to invest more in the company's future. He declined to identify such investments but said they were discussed at the company's board meeting.

The New York-based company's shares were up 2.3 per cent in trading on Friday morning. Shares have gained 47 per cent over the last year, including dividends.

"Just when we thought, after the third-quarter report, things couldn't get better, it seems that they did," said Edward Woods, at Bahl & Gaynor Inc, which owns shares.

Strong economic growth, tame inflation and supportive government policies propped up assets in 2017, with most countries' equity markets recording gains, often at double-digit percentages.

has the largest lineup of exchange-traded funds (ETFs), many of which track segments of the market at a relatively low fee. The move to those funds caught many of its once-larger competitors flat-footed.

said its ETF business took in $54.8 billion in new money in the quarter, up from $49.3 billion a year earlier. The $367 billion the company took in from investors in 2017 overall was a record, while assets under management expanded to $6.29 trillion.

"Our view is this acceleration - we saw 18 per cent growth rate last year - we think something like that is going to continue for the next couple of years," said Jennifer Grancio, a at focused on the business.

shareholders and analysts are, however, keeping a close eye on how fast expenses are rising and fees are falling given the demand for General and administration expenses for the quarter rose 26 per cent in the quarter to $448 million, compared to the year-ago period.

BlackRock's net income surged to $2.3 billion, or $14.07 per share, from $851 million, or $5.13 per share, a year earlier.

Excluding the benefit from the new law, earned $6.24 per share. Analysts on an average expected the company to earn $6.02 per share, according to Thomson I/B/E/S.


First Published: Fri, January 12 2018. 21:50 IST