April 14 (Reuters) - BlackRock reported a rise in first-quarter profit on Tuesday, as the asset manager saw strong inflows into its exchange traded funds and earned more from performance fees, sending its shares up 2.8% in trading before the bell.
The company's active ETFs have attracted investors looking to capitalize on market dispersion through its low cost products, at a time when macroeconomic pressures from global geopolitics have pressured the broader market.
BlackRock saw total net inflows
of $130 billion in the first quarter of the year, with the lion's share going into its iShares ETFs. Its private markets business drew inflows of $9 billion in the quarter.
The company's assets under management have also remained resilient due to strong inflows that have helped the investment manager counter the impact of a falling market.
Total AUM at the world's largest asset manager came in at $13.89 trillion, up from $11.58 trillion in the year ago period.
Shares of the company have declined 4.4% so far in 2026, underperforming its smaller peer State Street. The S&P 500 index lost 4.6% in the first three months of the year.
PERFORMANCE FEES GROW
BlackRock's expansion into private markets have also helped the company, as these vehicles generate higher yields and trigger performance payouts even when the broader market is volatile.
The strategies - active ETFs and alternative investments - have allowed the asset manager to diversify during times of market trouble. During the first quarter of 2026, it helped BlackRock earn more from performance fees.
The asset manager's investment advisory performance fees came in at $272 million in the first the months of 2026, a significant spike over the $60 million in the year ago period.
The company reported a net profit of $2.21 billion, or $14.06 per share, for the three months ended March 31. That compares with $1.51 billion, or $9.64 per share, a year earlier.
(Reporting by Pritam Biswas in Bengaluru and Colin Barr in New York; Editing by Leroy Leo)
