BlackRock, the world’s largest asset manager, announced on Friday that it had reached a record $10.5 trillion in assets under management in the first quarter. The company also reported a 36% increase in profit, propelled by a resurgence in global equity markets that boosted investment advisory and administration fees.
During the first quarter, global equity markets experienced a significant rally, driven by expectations of central banks shifting towards interest rate cuts rather than tightening monetary policy. The S&P 500 index surged by 10%, while the MSCI’s global stock performance index rose by 7.7%, contributing to the growth in AUM for BlackRock.
BlackRock’s AUM rose by 15% compared to the previous year’s first quarter, with investment advisory and administration fees increasing by nearly 8.8% to $3.63 billion. Larry Fink, the company’s chairman and CEO, expressed optimism about the opportunities ahead, highlighting areas such as artificial intelligence, certain emerging markets, and the demand for new infrastructure.
In January, BlackRock announced the acquisition of Global Infrastructure Partners for $12.5 billion, signaling its expansion into private markets and alternative assets through infrastructure investments globally. Despite challenges in revenue growth and political scrutiny of its environmental, social, and corporate governance business, the acquisition is expected to close in the third quarter.
While total net inflows decreased to $57 billion from $110 billion compared to the previous year, analysts anticipate a rebound in industry flows following potential interest rate cuts. Exchange-traded funds attracted the majority of inflows, with BlackRock’s iShares Bitcoin Trust contributing $14 billion in net inflows since its launch in January.
The company reported a total revenue increase of 11% to $4.73 billion in the quarter, driven by higher performance fees, technology revenue, and the impact of higher markets on average AUM. BlackRock’s technology revenue rose by approximately 10.9% to $377 million, reflecting sustained demand for its Aladdin investment management platform.
Overall, BlackRock’s net income for the quarter reached $1.57 billion, or $10.48 per share, compared to $1.16 billion, or $7.64 per share, in the same period last year.
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