BlackRock Inc (NYSE:BLK) added more than US$1bn a day to its funds in the third quarter, taking its total assets under management to just shy of US$6trn.
News of the rise came as the US investment management giant comfortably beat Wall Street expectations with its third quarter results.
BlackRock reported adjusted diluted earnings per share of US$5.92 in the three months ended September 30; a year-on-year rise of 15% and easily ahead of analysts’ forecasts for US$5.58.
BlackRock is the world’s biggest provider of exchanged traded funds (ETFs) after it acquired iShares from Barclays back in 2009 and has benefited from the recent rise in demand for passive investment vehicles.
Third quarter net inflows totalled US$96.1bn, with iShares responsible for US$52bn of that. The continued demand for ETFs and positive sentiment in the global financial markets helped to boost total AUM by 5% to US$5.98trn.
With the third quarter inflows, BlackRock has now added US$264.3bn to its funds this year, which beats last year’s record total with three months to spare.
The asset manager’s active funds also took in nearly US$6bn in the third quarter, although the active equity funds suffered another US$3.3bn of net outflows.
“BlackRock’s third quarter results reflect the continued growth of our global investment and technology platform and the trusted relationships we have built with our clients,” said Laurence Fink, chairman and chief executive of BlackRock.
“Our ability to create investment solutions from a broad range of products – spanning index to illiquid alternatives – combined with industry leading technology and risk management, is resonating with clients and driving more impactful interactions than ever before.
BlackRock sharesopened modestly higher at US$467.20 – a gain of 0.4% or US$2.05.