By Ambar Warrick
(Reuters) -BlackRock Inc, the world’s largest wealth manager, reported first-quarter earnings against Wall Street estimates due to strong capital markets helping to attract more money to diversified funds its.
The company reported a net inflow of $ 172 billion into its various funds such as exchange-traded funds and operating funds aimed at beating the market.
Net income rose to $ 1.2 billion, or $ 7.77 per share, in the three months ending March 31, from $ 1.03 billion, or $ 6.60 per share, a year earlier. This result is higher than the estimate of Refinitiv IBES of $ 7.64 per share.
Assets managed by BlackRock (NYSE 🙂 rose to a record $ 9 trillion in the quarter, compared with $ 6.47 trillion a year earlier.
Fixed income accounts for the majority of capital inflows, as Federal Reserve policy tightening expectations have triggered major moves in debt markets and boosted US Treasury yields.
The company also charged higher advisory and investment fees throughout the quarter, due to the recent retail trading frenzy focusing on “meme” stocks such as GameStop Corp (NYSE 🙂 caused wild volatility in the financial markets.
Revenue from investment consulting and management fees, which make up the majority of BlackRock’s earnings, rose to $ 3.47 billion in the quarter, from $ 2.9 billion a year earlier.
Shares in BlackRock, up about 11% this year, hit a record high Wednesday ahead of the results.
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