BlackRock 3Q net income up 7.9 pct. on ETF demand

BlackRock posts 7.9 pct. increase in 3Q net income on more investor interest in iShares ETFs

Associated Press

NEW YORK (AP) -- BlackRock Inc. said Wednesday that its third-quarter net income rose 7.9 percent, boosted by an influx of investor cash into its low-cost iShares exchange-traded funds.

The New York-based investment manager earned $642 million, or $3.65 per share, up from $595 million, or $3.23 per share. Excluding one-time items, the company posted an adjusted profit of $3.47 per share.

Revenue rose 4.3 percent to $2.32 billion from $2.23 billion.

The results easily beat Wall Street predictions. Analysts, on average, expected net income of $3.31 per share on $2.25 billion in revenue, according to FactSet.

The company's assets under management rose 10 percent from year-ago levels to $3.67 trillion. Its net inflows in long-term products totaled $31.3 billion, excluding the effect of a single, low-fee, institutional index fixed income outflow of $74.2 billion, which BlackRock said it declined to re-bid at extremely low fees.

Net inflows related to iShares totaled $25.2 billion, the most since BlackRock acquired the business in 2009.

Earlier this week, the company announced plans to reduce the investment fees charged at six of the unit's largest exchange-traded funds. BlackRock also said it would launch four new iShares ETFs and revamp some of its existing lineup with a goal of making ETFs more appealing to long-term, buy-and-hold investors.

BlackRock shares rose 45 cents to $190.42 in morning trading.

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