The asset management giant BlackRock reported on Tuesday that profit rose 10 percent in the first quarter on gains from renewed investor interest in the stock market.
Investors put $39.4 billion of new money into BlackRock products, with most of that going into stock-related investments. That, along with rising markets, helped the assets under management at BlackRock increase 7 percent from a year ago, and 4 percent from a quarter earlier.
The company’s revenue and profit grew from a year ago, though both were down slightly from the record levels reached in the final quarter of 2012. BlackRock’s net income in the first quarter was $632 million, or $3.62 a share. The earnings per share was slightly higher than the $3.58 cents a share expected by analysts.
The firm’s chief executive, Laurence D. Fink, said in a statement that in the current atmosphere of low interest rates, Americans have been shifting away from the bond investments that used to be the most popular choice for many retirees.
“Investors turned to iShares as a way to quickly and efficiently increase their exposure to equity markets,†Mr. Fink said in the statement.
An economic recovery that appeared to be gaining a steadier footing broadly drove Americans to step back into the stock market. At BlackRock, 86 percent of the inflows, or $34 billion, went into equity investments, with much of that going into BlackRock’s iShares exchange traded funds, which are baskets of stocks, bonds and other assets that can be traded on a stock exchange.
BlackRock has been expanding its marketing effort for iShares to maintain its position as the largest provider of E.T.F.’s. BlackRock recently signed a deal with Fidelity to provide its investors with easier access to iShares E.T.F.’s.
