BlackRock profit up on income from fees
Source: Bloomberg News |
July 21, 2011, Thursday
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Print Edition
Print Edition
BLACKROCK Inc, the world's biggest money manager, said second-quarter profit increased 43 percent as fees climbed along with the assets it oversees for investors.
Net income increased to US$619 million, or US$3.21 a share, from US$432 million, or US$2.21, a year earlier, the New York-based company said yesterday in a statement. Excluding certain one-time items, BlackRock earned US$3 a share, compared with the US$2.89 average estimate of 13 analysts surveyed by Bloomberg.
BlackRock, which acquired Barclays Global Investors in December 2009 to add exchange-traded funds to the actively run stock, bond and hedge funds it oversees, said assets under management rose 0.3 percent to US$3.66 trillion. Chief Executive Officer Laurence D. Fink said in April redemptions related to the BGI deal are almost over, after clients who wanted to reduce investments with the combined firm pulled a net US$139 billion since the transaction was completed.
"One positive to the quarter was that the merger-related outflows are largely over," Macrae Sykes, an analyst at Gabelli & Co, said before the results were announced. "Industry-wide, fixed-income, alternatives and ETF products did well with investors so that's a positive for BlackRock, too."
Money managers, who earn fees on the assets they oversee for customers, benefited "despite difficult equity markets" in the second quarter because of investor deposits into bonds, global and hedge-fund-like strategies, Robert Lee, an analyst with Keefe, Bruyette & Woods Inc in New York, wrote in a July 1 note.
"We expect organic growth should improve as the overhang from BGI merger-related redemptions may have finally run its course," added Lee.
Net income increased to US$619 million, or US$3.21 a share, from US$432 million, or US$2.21, a year earlier, the New York-based company said yesterday in a statement. Excluding certain one-time items, BlackRock earned US$3 a share, compared with the US$2.89 average estimate of 13 analysts surveyed by Bloomberg.
BlackRock, which acquired Barclays Global Investors in December 2009 to add exchange-traded funds to the actively run stock, bond and hedge funds it oversees, said assets under management rose 0.3 percent to US$3.66 trillion. Chief Executive Officer Laurence D. Fink said in April redemptions related to the BGI deal are almost over, after clients who wanted to reduce investments with the combined firm pulled a net US$139 billion since the transaction was completed.
"One positive to the quarter was that the merger-related outflows are largely over," Macrae Sykes, an analyst at Gabelli & Co, said before the results were announced. "Industry-wide, fixed-income, alternatives and ETF products did well with investors so that's a positive for BlackRock, too."
Money managers, who earn fees on the assets they oversee for customers, benefited "despite difficult equity markets" in the second quarter because of investor deposits into bonds, global and hedge-fund-like strategies, Robert Lee, an analyst with Keefe, Bruyette & Woods Inc in New York, wrote in a July 1 note.
"We expect organic growth should improve as the overhang from BGI merger-related redemptions may have finally run its course," added Lee.
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