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Traditional asset managers have struggled since the start of the year to adjust to a rapidly changing macroeconomic environment, characterized by rising inflation, interest rate hikes and fears of a possible recession, made worse by Russia’s “special military operation” in Ukraine.
However, BlackRock (NYSE:BLK) has been able to weather the harsh market conditions due to its diversified business model. Its size and reach into every corner of the market places it at a relative advantage to some of its smaller rivals, analysts have said.
“As the world continues to face geopolitical and economic uncertainty, our investments over the years to build BlackRock’s all-weather platform position us well to advise our clients and help them pursue their long-term financial goals,” Chief Executive Officer Larry Fink said in a statement.
BlackRock’s shares were up marginally at $720 in premarket trading following the results. They fell nearly 17% in the first quarter.
The New York-based firm ended the past quarter with $9.57 trillion in assets under management, up from $9.01 trillion a year earlier. That compares with a record high of $10.01 trillion in the fourth quarter.
The asset manager attracted total net flows of $86 billion in the first quarter, down from $172 billion a year earlier, primarily due to seasonal cash management outflows of $27 billion.
Adjusted profit rose to $1.46 billion, or $9.52 per share, in the three months ended March 31, from $1.2 billion, or $8.04 per share, a year earlier.
Analysts on average had expected a profit of $8.75 per share, according to Refinitiv IBES data.
Total revenue rose about 7% to $4.69 billion, helped by higher investment advisory and administration fees. That compared with estimates of $4.73 billion.
