Money Manager’s profit up 6% in fourth quarter
Revenue rose 14% to $5.11 billion. Analysts polled by S&P Global Market Intelligence predicted $5.15 billion.
BlackRock ended the year with assets of $10.01 trillion, as investment gains and new client funding helped the firm pass the milestone. The decade-long boom of the stock market, and investor appetite for low-cost funds that track market indices, have fueled the firm’s growth.
However, in the fourth quarter, BlackRock benefited from strong inflows into its actively managed investments. Active funds brought in nearly half of the $211.7 billion in net new client money added by the firm over the period.
The boom in active business, which includes stock- and bond-picking funds and options such as infrastructure, real estate and private loans, has helped make BlackRock more profitable; Active funds charge higher fees than index mutual and exchange-traded funds.
“Our business is more diversified than ever,” said Lawrence Fink, president and chief executive officer of BlackRock. “Proactive strategies, including options, contributed more than 60% to the 2021 organic base fee increase.”
For the year, BlackRock earned $5.9 billion, or $38.22 per share, on revenue of $19.37 billion.
Shares of BlackRock fell $2.58 to $867.58 in early trading Friday. The stock is up 17% in the past year.