BlackRock profit beats as ETFs attract more investment

Published 12/01/2018 in Business, Economy & Finance

BlackRock profit beats as ETFs attract more investment
FILE PHOTO: A woman walks next to a BlackRock sign pictured in the Manhattan borough of New York, October 11, 2015. REUTERS/Eduardo Munoz

(Reuters) – BlackRock Inc (BLK.N) on Friday reported a better-than-expected quarterly profit, as investors flooded into the world’s biggest asset manager’s exchange-traded funds (ETFs).

The company’s profit was boosted by a $1.2 billion gain related to the recent enactment of the U.S. tax laws, and the company also raised its quarterly cash dividend by 15 percent.

Booming markets drove demand for index-tracking ETFs in the fourth quarter ended Dec. 31, and helped push the assets BlackRock oversees past $6 trillion.

The company ended the quarter with $6.29 trillion in assets under management, up 22 percent from $5.98 trillion at the end of the third quarter.

BlackRock’s Fink: Market run-up a ‘recalibration’ of U.S. earnings

Net investment in fixed-income securities totaled $42.95 billion. BlackRock attracted total “long-term” net flows of $102.93 billion in the quarterly period.

BlackRock shares were up nearly 2 percent in pre-market trading on Friday.

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