BlackRock on Tuesday reported a higher third-quarter profit as a rally in global markets lifted fee income and pushed its assets under management to a record $13.46 trillion.

Resilient consumer spending despite higher borrowing costs helped sustain the US economic momentum, fuelling gains in equity markets and prompting investors to pour money back into lower-cost index strategies.

A cooling labour market and moderating inflation pushed the Federal Reserve to cut interest rates in September - its first reduction this year - while expectations of further easing later in 2025 fuelled strong inflows into BlackRock's fixed-income exchange-traded funds (ETFs).

This inflow helped the firm offset softer performance fees and higher costs linked to the acquisition of alternative asset manager HP

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