Asset manager BlackRock's profit beats Wall Street view as fees rise

Asset manager BlackRock's profit beats Wall Street view as fees rise

FILE PHOTO: The BlackRock logo is seen at the BlackRock Japan headquarters in Tokyo, Japan, October 20, 2016.
REUTERS/Toru Hanai/File Photo
REUTERS: BlackRock Inc , the world's biggest asset manager, reported a 8.2 percent rise in quarterly profit that beat Wall Street estimates on Wednesday, helped by higher fees as investors moved more money into low-cost exchange traded funds.Fees from the company's index-tracking iShares rose 38 percent to US$1.07 billion. BlackRock's iShares exchange-traded funds business took in US$52.3 billion in new money, up from US$51.26 billion, a year earlier.Index-tracking ETFs have gained popularity among investors in recent years and are now responsible for the lion's share of the billions in cash BlackRock pulls in annually but have become a source of consternation to traditionalist stock pickers who typically charge higher fees.Investors have been piling into ETFs and dumping more expensive alternatives.The company ended the third quarter with US$5.98 trillion in assets under management, up from the preceding quarter, when managed assets totaled US$5.69 trillion.BlackRock's net income rose to US$947 million, or US$5.78 per share, from US$875 million, or US$5.26 per share, a year earlier.
Excluding items, the company earned US$5.92 per share. Analysts were expecting earnings of US$5.56.(Reporting by Diptendu Lahiri in Bengaluru; Editing by Bernard Orr)
Source: Reuters