(Reuters) – Assets under management at BlackRock Inc, the world’s largest asset manager, hit a record $10.65 trillion in the second quarter on Monday, as rising values of client assets and investors poured money into the company’s exchange-traded funds.
The company’s shares rose 1.2% in premarket trading.
Stocks have hit record highs in recent months on growing hopes of a soft landing for the U.S. economy and investor enthusiasm for artificial intelligence stocks.
The benchmark S&P 500 index rose about 11% in the reported quarter, and BlackRock’s assets under management rose to $10.65 trillion from $9.43 trillion a year earlier. Fees from managing and servicing client assets make up a large portion of the company’s revenue.
BlackRock recorded total net inflows of $81.57 billion in the third quarter, slightly up from $80.16 billion in the same period last year.
Exchange-traded funds (ETFs) accounted for the majority of inflows, bringing in $83 billion, the best start to the year on record, according to BlackRock.
“BlackRock is taking advantage of the broadest range of investment opportunities we’ve seen in years, including in private markets,” CEO Larry Fink said.
Investment advisory and management fees, typically a percentage of assets under management, increased 8.6% to $3.72 billion.
Revenue from technology services increased 10% to $395 million, reflecting continued demand for its Aladdin investment risk management platform.
BlackRock’s total revenue rose 8% to $4.81 billion.
Net income for the three months ended June 30 was $1.5 billion, or $9.99 per share, up from $1.37 billion, or $9.06 per share, a year earlier.
Last month, the company agreed to buy data provider Preqin for nearly $3.2 billion, underscoring its efforts to become a major player in private markets.
The company’s shares have risen 2% so far this year, lagging the S&P 500’s 17.7% gain.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Pooja Desai)
