BlackRock, the world's largest asset manager, today missed analysts' estimates for its quarterly profit, as investment advisory and securities lending revenue fell and costs rose.
Its institutional funds added $87.36 billion in the second quarter, up from $29.12 billion in the first quarter.
Investors poured more money into BlackRock's actively managed funds aimed at beating the market over the low-fee passive-investment products.
BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.
Total revenue fell 2.2% to $3.52 billion from a year earlier.
The New York-based company's net income fell to $1 billion, or $6.41 per share, in the quarter ended June 30 from $1.07 billion, or $6.62 per share, a year earlier.
Analysts had expected a profit of $6.50 per share, according to IBES data from Refinitiv.
BlackRock's total expenses rose nearly 4% to $2.25 billion.
The company ended the quarter with $6.84 trillion in assets under management, up from $6.30 trillion a year earlier.
