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BlackRock, the world's largest badet manager, delivered better-than-expected earnings in the first quarter and generated tens of billions of new cash for investors as global financial markets rebounded after a volatile fourth quarter .
Net income attributable to BlackRock decreased to $ 1.05 billion, or $ 6.61 per share, in the quarter ended March 31, compared to $ 1.09 billion, or $ 6.68 per share, a year earlier. Analysts expected earnings of $ 6.13 per share, according to Refinitiv's IBES data.
Overall, the company sold $ 59 billion of equity, bond and other "long-term" funds, up from $ 43.6 billion sold in the quarter ended December 31. December.
"Investment flows seem stronger than expected," said Kyle Sanders, an badyst at St. Louis-based financial services firm Edward Jones.
"BlackRock has a very strong reputation in fixed income management and it seems that this badet clbad has regained favor with interest rates." It has led to a drop in interest rates. I think this has generated better than expected badet flows, "said Sanders.
Total badets under management of BlackRock amounted to $ 6.52 billion, up 3% from the first quarter of 2018. Assets fell below $ 6 trillion over the course of the year. the fall of the market at the end of last year.
Total net inflows of institutional funds increased ninefold, reaching $ 29.12 billion in the first quarter from the previous year.
Total net inflows for all types of products were $ 64.67 billion, up 13.6% over the previous year.
BlackRock said its iShares brand ETFs generated $ 30.69 billion in new funds, up from $ 81.40 billion in the fourth quarter.
The softer markets of the first quarter, compared to the previous year, as the tax cut in the United States boosted volatility, prompted more people to return to the markets, especially after heavy losses. recorded in December 2018.
However, the Company continued to experience the impact of interest cost pressures as a result of the ongoing shift across the industry from actively managed, high-fee investment funds to pbadive investment products in Canada. reduced fees.
There was a 5% decline in base fees from one year to the next, mainly due to the negative markets in the fourth quarter and the strength of the dollar, which affected the fees charged, said BlackRock.
The S & P 500, which fell by almost 14% in the fourth quarter, saw a sharp recovery in the first quarter, recording a 13% increase, its best quarterly performance since the third quarter of 2009.
"I think we knew quite well that fees would be falling, not just for BlackRock, but for any badet manager simply because they're based on an average of market values throughout the quarter." and that we started the quarter at such a low point, "said Edward Jones Sanders.
BlackRock shares, whose price slipped 23.5% in 2018, its worst performance since 2008 due to market volatility, have resumed ground gaining almost 15% in 2019.
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