(Reuters) – Blackrock Inc. (BLK.N) Topped Wall Street’s projections on Friday, helped by investors investing in the world’s largest asset manager’s bond fund in the second quarter as global financial markets overturned strongly in March with a COVID-spark savage brutality. gave.
BlackRock ended the quarter with $ 7.32 trillion in assets under management, up from $ 6.84 trillion a year earlier.
The S&P 500 .SPX rose 20% in the second quarter, falling in the first three months of 2020 after a coronovirus pandemic struck the economy.
In an interview, Chief Executive Larry Fink said, “Our interactions with our customers over the last six months were more than we probably collected over the years.”
“Customers are looking at Blackrock more than ever.”
Blackrock jumped 21% in quarterly profit as investors poured money into their fixed-income funds and cash management services.
The net income of the New York-based company rose to $ 1.21 billion, or $ 7.85 per share. Analysts had expected a profit of $ 6.99 per share, according to Refinitiv’s IBES data. (Bit.ly/2ZEPkNv)
Asset manager’s fixed-income funds raised $ 60.27 billion in new money. Its cash management business attracted $ 24.2 billion in net inflows in the second quarter.
“Better investor sentiment led to stronger asset accumulation,” said Kyle Sanders, an analyst at St. Louis-based financial services firm Grab Jones.
“We were most encouraged by the sharp rebound in asset flows, as we believe that continuous flow growth over industry peers is a key driver for the stock,” he said.
The asset manager’s technology business, a key area of the firm’s growth, recorded a 17% increase in revenue.
Blackrock’s financial markets advisory unit, which manages the US Federal Reserve’s bond-buying program, generated $ 39 million in revenue, down from $ 53 million for the same quarter a year earlier.
Blackrock’s shares, about 13% for the year, were up nearly 1% in early Friday trading.
Reporting by Saqib Iqbal Ahmed New York and Bharat Manjesh in Bengaluru; Editing by Sriraj Kalluvila and Steve Orlofsky