Low-fee BlackRock funds rake in cash but revenues disappoint

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NEW YORK (Reuters) – BlackRock Inc, the world’s biggest asset manager, reported a massive influx of cash into its low-cost funds but nonetheless fell short of Wall Street’s forecasts as price cuts and lower performance fees dented revenue.

The New York-based company’s largely index-tracking iShares exchange-traded funds have been growing at a record pace, pulling in a record $74 billion during the most recent quarter, up from $16 billion a year earlier.

Investors of all types have been scooping up the funds and fleeing more expensive products as a way to access the market. Fees have raced toward zero on some products as BlackRock faces competition from asset managers offering ETFs at or near their cost of managing them.

Fast asset-gathering helped push BlackRock’s assets under management to nearly $5.7 trillion, while revenue gained 6 percent to $2.97 billion and earnings per share rose 10 percent to $5.22, or $5.24 after adjusting for non-recurring items and charges that do…



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