BlackRock Inc (NYSE:BLK) stock fell 1.20% (As on October 14, 11:43:11 AM UTC-4, Source: Google Finance) after the company posted a smaller-than-expected drop in quarterly profit on Thursday as strong demand for exchange-traded funds and other low-risk products cushioned the hit to fee income from a global market rout, but its assets under management fell below expectations. The company’s assets under management (AUM) dropped to $7.96 trillion in the third quarter, down 16% year-on-year, as the stronger dollar dampened the value of investments in Europe and Asia. AUM declined below analysts’ expectations from about $8.5 trillion at the end of the second quarter. The threat of a global recession, rapidly rising interest rates and the Ukraine crisis have slammed both bonds and stocks this year. Overall net inflows were positive in the quarter, with long-term net inflows of $65 billion, as momentum from ETFs offset the hit from retail clients withdrawing about $5 billion. Year-to-date inflows amounted to $248 billion. Net inflows into ETFs were about $22 billion in the quarter, boosted by $37 billion of flows in bond ETFs.

BLK in the third quarter of FY 22 has reported the adjusted earnings per share of $9.55, beating the analysts’ estimates for the adjusted earnings per share of $7.07, according to IBES data from Refinitiv. The company had reported 15 percent fall in the adjusted revenue to $4.31 billion in the third quarter of FY 22. Net income fell to $1.4 billion for the three months ended Sept. 30, from $1.68 billion, a year earlier. There has been 6% increase in technology services revenue year-over-year reflects continued strong client demand for Aladdin, despite the negative impact of foreign exchange movements. Investment advisory, administration fees and securities lending revenue decreased $412 million from the third quarter of 2021, primarily driven by the negative impact of market beta and foreign exchange movements on average AUM, partially offset by organic base fee growth over the last twelve months and the elimination of yield-related fee waivers on money market funds. Securities lending revenue of $162 million increased from $152 million in the third quarter of 2021, primarily reflecting higher spreads. Technology services revenue increased $18 million from the third quarter of 2021, reflecting continued strong client demand for Aladdin, despite the negative impact of foreign exchange movements. The company posted 21% decrease in operating income (22% as adjusted) year-over-year includes the impact of $96 million of fund launch costs in the third quarter of 2021.