BlackRock Inc released its quarterly profit report on Tuesday with figures far exceeding initial analysts' expectations.
The world's largest asset management firm reported a huge influx of funds into its cash management business and fixed-income funds, partly due to increasing worries over the slowing global economy.
During its latest quarter, BlackRock revealed that it had gained over $84.25 billion in new funds, raising its overall managed assets to $6.96 trillion.
According to the company, the increase in funds was partly due to its low-fee passive-investment products, which have recently become a go-to investment fund for those looking to shift away from other more volatile markets.
The asset management firm reports a 15 percent increase in its iShares ETFs, which took in nearly $41.5 billion. The company cash management business jumped by $32 billion in the third quarter, sending its total cash management assets to $510 billion.
For its third-quarter ending in September, BlackRock did report a slight drop in net income from $7.54 per share last year to $7.15 per share this year. Despite the slight dip, its net income still managed to beat initial analysts' expectations, which were pegged at around $6.96 per share. BlackRock managed to beat expectations mainly due to its lower-than-expected expenses for the quarter.
Overall revenue for the quarter had increased by 3 percent to $3.69 billion. The company credited the rise in its revenues for the quarter to its increased base fees and increased technology services revenue.
According to the company, it has managed to increase its technology unit's revenues by 30 percent for the quarter to $259 million. BlackRock aims to become an even bigger player in the financial technology sector by providing enhanced products for Wall Street.
Following the release of its earnings report, the company saw its shares jumped by as much as 2.6 percent. Since the start of the year, BlackRock has seen its stock climb by nearly 14 percent.
BlackRock Chief Executive Larry Fink had mentioned that the company seemed to be gaining more investors given the current economic situation. Global markets have been struggling to cope with investor reactions and sentiments to the ongoing trade dispute with the United States and China.
The current situation has driven a number of investors to look elsewhere to grow their assets, and BlackRock's cash management and fixed-income products have become a very popular option. The company has touted that they are still able to provide relatively comprehensive investment options for customers, regardless of the current market situation.
