BlackRock Inc, the world`s biggest asset manager, reported a 8.2 percent rise in quarterly profit that beat Wall Street estimates on Wednesday, helped by higher fees as investors moved more money into low-cost exchange traded funds.
Fees from the company`s index-tracking iShares rose 38 percent to $1.07 billion. BlackRock`s iShares exchange-traded funds business took in $52.3 billion in new money, up from $51.26 billion, a year earlier.
Index-tracking ETFs have gained popularity among investors in recent years and are now responsible for the lion`s share of the billions in cash BlackRock pulls in annually but have become a source of consternation to traditionalist stock pickers who typically charge higher fees.
Investors have been piling into ETFs and dumping more expensive alternatives.
The company ended the third quarter with $5.98 trillion in assets under management, up from the preceding quarter, when managed assets totaled $5.69 trillion.
BlackRock`s net income rose to $947 million, or $5.78 per share, from $875 million, or $5.26 per share, a year earlier.
Excluding items, the company earned $5.92 per share. Analysts were expecting earnings of $5.56.
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