In the first quarter, BlackRock announced record assets under management (AUM) of approximately $10.5 trillion and a 36% surge in profit, driven by a rebound in global equity markets that boosted its investment advisory and administration fees.

Expectations of major central banks pivoting to rate cuts led to a rally in global equity markets, resulting in a 15% increase in BlackRock’s AUM compared to the previous year. Investment advisory and administration fees, which are typically linked to AUM and represent a significant portion of BlackRock’s revenue, rose by nearly 8.8% to $3.63 billion.

Despite the strong financial performance, total net inflows declined to $57 billion from $110 billion a year earlier. Clients remained cautious, awaiting interest rate cuts before reallocating funds into riskier assets.

Analysts anticipate a resurgence in asset management industry flows following interest rate cuts, which would encourage cash reserves currently on the sidelines to flow into risky assets.

Total revenue for BlackRock rose by 11% to $4.73 billion in the quarter, driven by increased performance fees, technology revenue, and the impact of higher markets on average AUM.

BlackRock serves retail and institutional clients globally, including sovereign wealth funds, insurance companies, and large corporations, offering investment management and technology services. Its technology revenue increased by approximately 10.9% to $377 million, reflecting sustained demand for its Aladdin investment management platform.

Net income for the company surged to $1.57 billion, or $10.48 per share, in the first three months of the year, compared to $1.16 billion, or $7.64 per share, in the same period last year. Despite these positive results, BlackRock’s shares have declined by about 3.2% this year, underperforming the benchmark S&P 500 index, which has risen by 9%.