BlackRock, the world’s biggest asset manager, piled up cash thanks to increased volatility in global markets.
On Thursday, New-York-based BlackRock Inc, the world’s biggest asset manager, reported a rise of its net income to $1.09 billion as its first quarter profits, beating analysts’ estimate.
BlackRock benefited from volatility in global markets.
In its first quarter profits, BlackRock reported a rise of 17% in its investment advisory, administration fees and securities lending revenue from $2.52 billion to $2.95 billion, from a year earlier.
Since last Friday, midst an overheating economy and fears of a trade war between two of the world’s largest economies – the U.S. and China, markets across the globe have come under pressure with investors shifting between asset classes which in turn has added to the volatility in the market.
However, its iShares family of ETFs added $34.65 billion in new money in the quarter, down from $64.48 billion a year earlier.
Excluding items, BlackRock earned $6.70 per share. Analysts on an average expected BlackRock to report $6.39 per share and reported a rise in total revenues by 15.88% to $3.58 billion.
During the first quarter, BlackRock reported $6.32 trillion in assets under its management, up from $6.29 trillion at the end of the fourth quarter.