(Reuters) -Assets of BlackRock, the world’s largest money manager, hit a record high of $10.65 trillion in the second quarter and the firm posted a 9% jump in profit on Monday, as stronger equity markets drove robust fee income growth.
Shares of the company rose 1.2% in premarket trading.
Stock markets have scaled record highs in the last few months amid rising hopes of a soft landing for the U.S. economy and investor frenzy around artificial intelligence-linked stocks.
That has boosted BlackRock’s assets under management to $10.65 trillion in the quarter, up from $9.43 trillion a year earlier. Fees earned from managing and servicing its client assets make up a substantial portion of BlackRock’s revenue.
The company’s investment advisory and administration fees, typically a percentage of AUM, rose 8.6%, to $3.72 billion.
Net income rose to $1.50 billion, or $9.99 per share in the three months ended June 30, from $1.37 billion, or $9.06 per share, a year earlier.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Pooja Desai)
