By Saqib Iqbal Ahmed and Trevor Hunnicutt
NEW YORK (Reuters) – BlackRock Inc (NYSE 🙂 , the world's largest asset manager, reported the first quarter of revenue exceeding expectations and earned $ 65 billion of new investor's cash while global financial markets rebounded from the fourth wave quarter.
Total asset under management grew 3% to $ 6.52 trillion in the quarter through March 31
Total total quarterly net inflows in all types of products jumped to 13.6 percent to $ 64.67 billion from a year earlier.
In general, the company is selling $ 59 billion in stocks, bonds and other "long-term" investment funds, from $ 43.6 billion in the quarter ended December 31.
BlackRock shares have reached of 2.2% to $ 461.56 in the early trading.
The US economy is accelerating again after the slowdown and the market is ready for "big" inflows in stocks, Chief Executive of BlackRock Inc. Larry Fink told Reuters in an interview on Tuesday.
"I believe people are still under danger, despite the big rebound," Fink said. The benchmark stock index, which slipped 14 percent in the last three months of 2018, fell 13 percent in the first quarter, the best performance since the third quarter of 2009.
BlackRock lost more than $ 26 billion portfolio of equity in the first quarter, but it is more than offset by a jump in fixed income of nearly $ 80 billion. "The flow of investment looks much stronger than we expect," says Kyle Sanders, an analyst with financial services firm based in St. Petersburg. Louis Edward Jones.
"BlackRock has a really strong reputation in fixed income management and it seems that that asset class is back in favor of interest rates such as sinking less than I think has resulted in better than expected asset flow, "Sanders said.
Net inflows of institutional funds rose almost nine fold to $ 29.12 billion from a year ago.
BlackRock's remaining earnings fell to $ 1.05 billion, or $ 6.61 per share, in the first quarter, from $ 1.09 billion, or $ 6.68 per share, a year earlier. Analysts also exceeded expectations for a revenue of $ 6.13 per share, according to data from IBES from Refinitiv.
BlackRock said its iShares-branded ETF has reached $ 30.69 billion of new money compared to $ 81.40 billion in the fourth quarter. ] Income from technology services, an important focus area for BlackRock, grew 11 percent to $ 204 million.
However, the company continues to feel the pinch from pressures in the payment amid continuously shifting across the industry from high paid actively managed shares
The base fee drops 5% year That is, mainly because of the negative fourth-quarter markets and a stronger US dollar that tires in the fees they collect, BlackRock said. "I think it is well known that the fees are down, not just for BlackRock but for any asset manager just because they are based on an average market value throughout the quarter and we started the quarter at such a low point, "said Edward Jones & # 39; Sanders.