REUTERS: BlackRock Inc reported a better-than-expected quarterly profit on Tuesday, as more people poured money in its low-risk funds amid heightened trade tensions between Beijing and Washington.
More investors, however, pulled out money from the asset manager's institutional index funds, while putting in more money into its low-risk iShares exchange-traded funds.
The inflow and outflow of funds also show an ongoing shift in investor preference for low-cost funds that make it easier for them to move in and out of market compared with passive stock investing. The company makes money on every transaction in the form of advisory or distribution fees.
Uncertainty in global markets due to an escalating U.S.-China tariff war and a rout in the Turkish lira kept market volatility elevated through most of the third quarter.
The company's iShares ETFs took in US$33.67 billion in new money, down from US$52.31 billion, a year earlier, while investors pulled out US$24.76 billion from its portfolio managed index funds.
BlackRock's total long-term net flows were down US$3.1 billion.
Net income attributable to the world's biggest asset manager rose to US$1.22 billion in the third quarter ended Sept.30 from US$944 million a year earlier.
On a per share basis, BlackRock earned US$7.54, compared with US$5.76 a year earlier.
Excluding items, the company earned US$7.52 per share, while analysts had expected US$6.84 , according to I/B/E/S data from Refinitiv.
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)