BLK BlackRock Inc

By Dawn Lim 

BlackRock Inc.'s quarterly profit rose 49% as the giant asset manager benefited from surging markets and investors' willingness to bet on an economic recovery.

The money manager posted a first-quarter profit of $1.2 billion, or $7.77 a share, up from $806 million, or $5.15 a share, a year earlier. BlackRock's revenue rose 19% to $4.4 billion from $3.7 billion in the year ago period when panicked investors fled to cash while a pandemic rippled through the globe.

The firm's adjusted per-share profit of $7.77 slightly beat analyst's expectations.

The world's largest money manager scaled a new milestone, with assets under management rising to $9 trillion.

The exchange traded funds business it is best known for -- a lineup of funds that trade on exchanges and track all kinds of markets -- took in $68 billion in net flows in the first quarter.

Banks, pension funds, hedge funds and traders often turn to BlackRock's exchange-traded funds to get quick and broad exposure to markets. New darlings such as Cathie Wood's ARK Investment Management LLC are stealing the spotlight from entrenched firms. Many index providers have slashed fees to near zero and reached deeper into nichier corners of the market to stay relevant.

BlackRock Chief Executive Larry Fink's challenge is making sure that the firm stays ahead of these and other rivals.

After helping usher in the ETF revolution, Mr. Fink's next big bet is riding on investors' interest in companies with higher environmental, social and corporate-governance rankings.

BlackRock already provides technology to help banks and investors account for environmental risks and is aggressively adding to ESG-themed funds. BlackRock recently launched funds that invest in companies it views as better positioned for a global regime that gives priority to a lower carbon footprint.

Across all strategies, BlackRock took in $171.6 billion in net new money, up from roughly $35 billion in the year-ago quarter.

(END) Dow Jones Newswires

April 15, 2021 07:04 ET (11:04 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.