Blackrock has reported a 16 per cent jump in profit in the first quarter driven by record net inflows.
The asset manager saw net income rise to $1.2bn in the three months to 31 March, equivalent to $7.77 per share, up from $6.60 a year earlier.
It also reported revenue of $4.4bn, beating analysts’ prediction of $4.31bn.
This was driven by a record $172bn of quarterly total net inflows to its various funds, or eight per cent annualised organic asset growth, with positive flows across all regions and investment types.
Fixed income attracted the biggest inflows with a net $60.8bn, followed by equities at $49.9bn.
Asset managers have benefited from optimism in capital markets as signs of an economic recovery grew against the backdrop of the vaccine rollout.
The S&P 500 jumped nearly six per cent after President Biden announced a nearly $2 trillion stimulus package.
Net flows into long-term products like ETFs and mutual funds reached $113bn in the first quarter, a stark contrast to the net $18.7bn outflows in the same period last year as uncertainty took hold.
Blackrock’s assets under management grew to a record $9 trillion in the period, up from $6.47 trillion a year earlier.
“BlackRock’s differentiated platform and our insights on some of the biggest issues society is facing today are resonating with clients,” chief executive Larry Fink said.
“To help them navigate toward a net zero world, we’re systematically integrating climate and broader sustainability factors into our portfolio management process.”
The world’s largest asset manager recently announced a decarbonisation investment partnership, committing a combined $600m in initial capital to invest in multiple funds.