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BlackRock 2nd-quarter profit rises 8.6%

[BENGALURU] BlackRock, the world's biggest asset manager, reported an 8.6 per cent rise in quarterly profit on Monday, helped by higher fees.

The company's index-tracking exchange-traded funds have been growing at a record pace.

But the asset manager has been trying to restructure its actively managed stockpicking to thrive in a business that has seen its growth prospects slashed as investors move to low-cost funds.

The company has been cutting fees and has recently launched new bond ETFs in efforts to lure more investors to its products from traditional debt markets.

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BlackRock ended the quarter with US$5.69 trillion in assets under management, up from the preceding quarter, when managed assets totaled $4.89 trillion.

The company's net income rose 8.6 per cent to US$857 million in the second quarter.

In the most recent quarter, the company's iShares ETF business took in US$73.8 billion in new money, up from US$15.7 billion, a year earlier.

Net investment in fixed-income securities totaled US$42.92 billion. BlackRock attracted total "long-term" net flows of US$103.62 billion in the quarterly period.

The company's shares were marginally down in premarket trading on Monday.

REUTERS

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