(Reuters) -Assets managed by BlackRock (NYSE:), the world’s largest money manager, hit a record high of $10.65 trillion in the second quarter on Monday, thanks to rising client asset values and as investors pumped money into the company’s ETFs.
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.
The benchmark jumped about 11% in the reported quarter, boosting BlackRock’s assets under management to $10.65 trillion, up from $9.43 trillion a year earlier. Fees earned from managing and servicing its client assets make up a substantial portion of the company’s revenue.
BlackRock registered total net inflows of $81.57 billion in the quarter, slightly higher than $80.16 billion a year earlier.
Exchange-traded funds captured the majority of flows, at $83 billion, marking its best start to a year on record, BlackRock said.
“BlackRock is executing on the broadest opportunity set we’ve seen in years, including in private markets,” CEO Larry Fink said.
Investment advisory and administration fees, typically a percentage of AUM, rose 8.6%, to $3.72 billion.
Revenue from technology services jumped 10%, to $395 million, reflecting sustained demand for its investment risk management platform, Aladdin.
BlackRock’s total revenue jumped 8%, to $4.81 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.
Last month, the company agreed to buy data provider Preqin in a deal valued at nearly $3.2 billion, underscoring BlackRock’s push to become a major player in private markets.
Its shares have risen 2% so far this year, underperforming the 17.7% gain of the S&P 500 index.