BlackRock’s third quarter profit beats estimates on recovery rally

Photographer: Scott Eells/Bloomberg

BlackRock, the world’s largest asset manager, trounced analysts’ profit estimates for a fifth straight quarter on Tuesday as the recovery rally in global financial markets boosted asset values and pulled in more investor funds.

The company ended the third quarter with $7.81 trillion in assets under management, up from the $7.32 trillion in the second quarter and $6.96 trillion a year earlier.

Financial markets rallied in the third quarter, building on a dramatic rebound in the second from the pandemic-fueled low hit in March, as an accommodative stance from global central banks and improving growth prospects lifted risk appetite.

Still, investors remained cautious ahead of the U.S. presidential election on Nov. 3 and data underlining the uneven economic recovery against the backdrop of a resurgence in coronavirus cases around the world.

The New York-based company’s net income rose 27% to $1.42 billion, or $9.22 per share, in the third quarter ended Sept. 30, from $1.12 billion, or $7.15 per share, a year earlier. Analysts had expected earnings of $7.80 per share, according to IBES data from Refinitiv.

BlackRock‘s performance fees jumped more than four-fold from a year earlier.

Net inflows in the quarter totaled $129 billion, the company said, compared with $100 billion in the prior quarter. More than 50% of the company’s long-term inflows were driven by clients in Europe and Asia.

The asset manager’s fixed-income funds took in $70.36 billion in new money, while its cash-management business attracted $27.8 billion in net inflows in the third quarter.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.