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BlackRock snags more assets in market rout, boosts profit

Reuters  |  NEW YORK 

By Trevor Hunnicutt

(Reuters) - Inc , the world's largest asset manager, generated higher profit during the first quarter by luring more money from investors even as stock and bond markets fell.

Fund typically decline during market routs because their fees are based on the value of customer assets. But benefited from its large footprint in (ETFs), which have been taking market share away from for several years.

attracted nearly $57 billion in new cash from clients in the latest quarter. Its ETFs unit was the biggest contributor, drawing $35 billion in net inflows.

"It's better to be in this atmosphere," said in an interview. "We have always differentiated ourselves in more volatile times."

Markets swung wildly during the first three months of the year as early enthusiasm over U.S. corporate tax cuts was soon blunted by concerns about inflation, the risk of a global trade war and Federal Reserve policy.

Even so, BlackRock's assets under management climbed to $6.32 trillion as of March 31, up from $5.42 trillion a year earlier.

In addition to customer inflows, benefited from favourable currency movements, lower taxes and ensuring expenses rose less than revenue.

The New York-based company's net income rose to $1.09 billion, or $6.68 per share, in the first quarter, up 28 percent from the year-ago period.

Adjusted for special items, earned $6.70 per share, beating the $6.39 per share analysts expected, on average, according to I/B/E/S.

Its shares closed 1.5 percent higher at $533.01.

shares are up nearly 40 percent in price terms over the past year, compared to an 18.5 percent rise for a index that includes more than a dozen of its U.S. rivals. <.TRXFLDUSPINVM>. The results suggest is continuing to evolve from a traditional into a steadier financial operation whose profits are not based exclusively on market movements, said

has played a key role in that shift, helping to lure new assets by improving investment performance and automating routine functions, he said.

"I'm viewing this more as a firm than a traditional asset manager," said Sanders. has a business that licenses its internal to clients and competitors. Though it is among BlackRock's smaller business lines, Fink said he expects its revenue to grow at mid-teen percentages in the coming years.

Earlier this year, the company opened an laboratory in California's Silicon Valley and added to its board of directors.

(Reporting by Trevor Hunnicutt; Additional reporting by in Bengaluru; Editing by and Meredith Mazzilli)

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

First Published: Fri, April 13 2018. 02:23 IST