BlackRock sees profits surge on equity demand

Michael Bow
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FUND titan BlackRock soared to a three year share price high yesterday after posting a 24 per cent increase in profits, led by high demand for its exchange traded funds (ETFs).

The New York based money manager, the world’s biggest with $3.8 trillion of assets under management, attracted $47bn of extra cash from investors in the three months until the end of 2012.

Around $36bn over the quarter flooded into its ETF range iShares.

This helped translate into a 24 per cent jump in profit, with $690m of net income versus $555m a year ago.

BlackRock, which snapped up Credit Suisse’s ETF business last week, now accounts for more than a third of the global ETF market through its iShares products.

Shares in BlackRock closed up 4.4 per cent to hit their highest level since the start of 2010.

The firm, listed on the New York Stock Exchange, has seen a 20 per cent increase in its share price since November on the back of strong numbers.

“Our results demonstrate not only the diversity of our platform and the breadth of our global product offering, but how we have differentiated the firm and continued to evolve in anticipation of our clients’ needs,” chief executive Larry Fink said.

The recent surge in equity markets also helped BlackRock add $62bn to the value of its portfolio, an increase of three per cent over the quarter and eight per cent over the year.