REUTERS: BlackRock Inc , the world's biggest asset manager, reported a 8.2 percent rise in quarterly profit that beat Wall Street estimates on Wednesday, helped by higher fees as investors moved more money into low-cost exchange traded funds.
Fees from the company's index-tracking iShares rose 38 percent to US$1.07 billion. BlackRock's iShares exchange-traded funds business took in US$52.3 billion in new money, up from US$51.26 billion, a year earlier.
Index-tracking ETFs have gained popularity among investors in recent years and are now responsible for the lion's share of the billions in cash BlackRock pulls in annually but have become a source of consternation to traditionalist stock pickers who typically charge higher fees.
Investors have been piling into ETFs and dumping more expensive alternatives.
The company ended the third quarter with US$5.98 trillion in assets under management, up from the preceding quarter, when managed assets totaled US$5.69 trillion.
BlackRock's net income rose to US$947 million, or US$5.78 per share, from US$875 million, or US$5.26 per share, a year earlier.
Excluding items, the company earned US$5.92 per share. Analysts were expecting earnings of US$5.56.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Bernard Orr)