BlackRock hits record high $11.5 trillion in assets on market rally, ETF boost

The world's largest asset manager registered $160 billion in long-term net flows in the third quarter

BlackRock's assets under management hit a record high for the third straight quarter on Friday, helped by surging inflows to the company's exchange-traded funds and a searing equity rally that boosted the value of its clients' investments.

Stock markets overcame the August selloff and broadened their rally in the third quarter, driven by renewed hopes of a soft landing for the world's largest economy after encouraging inflation data.

The broader equity market benchmarks finished higher in the third quarter, with the S&P 500 gaining 5.4%, while the MSCI's gauge of stocks across the globe rose 6.2%.

Assets managed by BlackRock shot up to $11.48 trillion in the third quarter, up from $9.10 trillion a year earlier and $10.65 trillion in the second quarter.

The world's largest asset manager registered $160 billion in long-term net flows in the third quarter. Total net flows hit a quarterly record of $221.18 billion, up from $2.57 billion a year ago.

A majority of the inflows were captured by ETFs, at $97.41 billion. Meanwhile, clients poured in $62.74 billion into BlackRock's fixed-income products.

Asset managers have contended with softer inflows in recent years as rate hikes boosted the appeal of safe-haven assets like cash. Some investors also sat on the sidelines, waiting for more certainty on the interest-rate trajectory, before stepping back into riskier assets.

But with the U.S. Federal Reserve finally kicking off its long-anticipated easing cycle, asset managers are poised to benefit as huge piles of cash on the sidelines move into riskier assets such as fixed-income products.

BlackRock's net income rose to $1.63 billion, or $10.90 per share, in the three months ended September 30, from $1.60 billion, or $10.66 per share, a year earlier.

Its shares have advanced about 18% in 2024 as of last close, trailing the 21% jump of the S&P 500.