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BlackRock hits record $6 trillion, helped by Trump tax law

Reuters  |  NEW YORK 

By Trevor Hunnicutt

(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 U.S. law, which sliced corporate and individual income rates, also helped the company's in the fourth quarter ended Dec. 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 percent in trading on Friday morning. Shares have gained 47 percent 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 percent 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 percent 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.

(Reporting by Trevor Hunnicutt; Additional reporting by Diptendu Lahiri in Bengaluru; Editing by and Andrew Hay)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 22:29 IST