Larry Fink
Anjali Sundaram | CNBC
BlackRock, the world’s largest asset manager, missed analysts’ estimates for quarterly profit on Friday, as investment advisory and securities lending revenue fell and costs rose.
Its institutional funds added $87.36 billion in the second quarter, up from $29.12 billion in the first quarter.
Investors poured more money into BlackRock’s actively managed funds aimed at beating the market over the low-fee passive-investment products.
BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.
Total revenue fell 2.2% to $3.52 billion from a year earlier.
The New York-based company’s net income attributable to BlackRock fell to $1 billion, or $6.41 per share, in the quarter ended June 30 from $1.07 billion, or $6.62 per share, a year earlier. (bit.ly/2Ya6YZj)
Analysts had expected a profit of $6.50 per share, according to IBES data from Refinitiv.
Total expenses rose nearly 4% to $2.25 billion.
The company ended the quarter with $6.84 trillion in assets under management, up from $6.30 trillion a year earlier.
Shares of the company were up marginally before the opening bell.
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