BlackRock earnings beat estimates as 2014 inflows set record
By Jessica Toonkel
(Reuters) - BlackRock Inc, the world's largest money manager, reported a higher-than-expected quarterly profit as assets under management increased.
The New York-based company ended the fourth quarter with $4.65 trillion in assets under management, up 8 percent from a year earlier.
The firm had $87.8 billion in net inflows for the quarter. Long-term net inflows for the year came to $181.3 billion for an organic growth rate of 4.5 percent, up from 3.5 percent in 2013.
The 2014 net inflows represent a 55 percent jump from the prior year and a record for BlackRock.
"While the magnitude of the flows was quite large, it is the composition of the flows that was really interesting," BlackRock Chief Executive Officer Larry Fink told Reuters. "We now manage over $1 billion in 41 different countries across the world."
Net income for the quarter fell to $813 million, or $4.77 per share, from $841 million, or $4.86 per share, a year earlier.
Excluding a compensation program associated with shareholder PNC Financial Services Group Inc, earnings were $4.82 a share, beating the analysts' average estimate of $4.68, according to Thomson Reuters I/B/E/S.
BlackRock's fourth-quarter flows went largely into its fixed income funds, making up 55 percent of long-term flows for the period. Investors poured $48.4 billion into BlackRock's fixed income funds in the quarter. Continued...