Updated version 1 - BlackRock profits surge as stable market performance boosts management fee growth

The full text has been supplemented with details.

Reuters, October 14 - BlackRock BLK.N announced a significant increase in third-quarter profits on Wednesday, as the world's largest asset management company earned higher management fee income by managing client funds.

The company's shares rose 3.1% in premarket trading.

In the three months ended September 30, its profit rose to $1.66 billion, or $10.57 per share, compared with $1.32 billion, or $8.43 per share, in the same period last year.

BlackRock's assets under management—a key measure determining most of its earnings—increased to $15.49 trillion from $13.46 trillion a year earlier.

The benchmark S&P 500 Index is currently trading near record highs, continuing its steady upward momentum this quarter, and investors have also continued to show willingness to allocate assets to investment firms such as Blackstone Group.

Since the beginning of this year, asset management companies have been grappling with increasingly volatile market conditions—constantly changing trade policies and surging oil prices triggered by the Iran war have kept investors on edge, but thanks to the ongoing rise of AI-related stocks, the US market has remained strong.

Despite the market's continued strength, soaring bond yields, combined with market expectations that the Federal Reserve's recent rate hikes mark the start of a tightening cycle, have raised questions about whether this rally can be sustained.

Prolonged rising yields could put pressure on the market, as investors may shift funds into safe-haven assets to lock in better risk-adjusted returns.

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