BlackRock’s assets under management increased to $9.1 trillion during Q1, but net income fell 19% over the past year, as the fund management giant saw hedge fund fees tumble sharply amid squeezed margins and subdued markets, according to a report by the Financial Times.
Overall, revenue fell 10% year-on-year to $4.2 billion, with performance fees on its hedge funds and other alternative investment offerings decreasing more than 40% to $55 billion, BlackRock said on Friday.
Net income fell 19 per cent year on year to $1.1 billion, or $7.93 a share, and ahead of the $7.67 expected by analysts polled by Bloomberg.
However, assets under management rose by $500 billion in the quarter to $9.1 trillion, above analysts’ expectations, but short of the $10 trillion peak at the end of 2021.
The increase was driven by a partial rebound in markets after last year’s lows, but BlackRock also saw inflows of $110 billion, fuelled by a strong showing among bond ETFs.
