BlackRock assets hit record $10.5 trillion as markets surge

April 12 (Reuters) – Assets at BlackRock (BLK.N), opens new tab hit a record $10.5 trillion in the first quarter and the firm posted a 36% jump in profit as rising global equity markets boosted its investment advisory and administration fees, the world’s largest asset manager said on Friday.

Global stock markets rallied in the first quarter on expectations that the world’s major central banks were done with monetary policy tightening and would pivot to cutting interest rates, helping boost BlackRock’s assets under management (AUM). The MSCI’s gauge (.MIWD00000PUS), opens new tab of global stock performance rose 7.7% in the first three months of the year, while the S&P 500 (.SPX), opens new tab jumped 10%.

BlackRock’s AUM surged 15% in the first quarter from a year earlier, while investment advisory and administration fees, typically a percentage of AUM and the company’s chief source of revenue, climbed nearly 8.8% to $3.63 billion.

“I see the greatest opportunities I’ve ever seen for BlackRock, for our clients, and for our shareholders,” Larry Fink, the company’s chairman and CEO, said during a conference call to discuss the results.

He mentioned investor opportunities in areas such as artificial intelligence, certain emerging markets, and the need for new infrastructure.

BlackRock announced in January the acquisition of Global Infrastructure Partners for $12.5 billion, as the asset manager aims to expand into private markets and alternative assets through infrastructure investments around the globe.

Source: REUTER