On Thursday, BlackRock Inc posted a smaller-than-expected fall in quarterly profit as strong demand for exchange-traded funds (ETF) and other low-risk products cushioned the hit to fee income from a global market rout.

Rapidly increasing interest rates, the threat of a recession, and the Ukraine crisis have slammed stocks and bonds this year, keeping investors on the back foot in a blow to businesses such as BlackRock (NYSE:BLK).

The company’s assets under management (AUM) fell 16 per cent year-on-year to USD 7.96 trillion in the third quarter. A stronger dollar also piled on the pressure by dampening the value of investments in key European and Asian markets.

The world’s largest asset manager recorded a 16 per cent decline in adjusted profit to USD 9.55 per share.

Shares of the company, which were down 42 per cent this year, gained 0.4 per cent in premarket trading after the results. Reportedly, overall net inflows were positive in the quarter, coming in at USD 65 billion. The continued momentum from exchange traded funds offset the hit from BlackRock’s retail clients withdrawing about USD 5 billion.

Revenue dropped 15 per cent to USD 4.31 billion. The decline was mainly driven by significantly lower markets and dollar appreciation on average AUM and lower performance fees.
BlackRock’s net income dropped to USD 1.4 billion, or USD 9.25 per share, for the three months ended September 30, from USD 1.68 billion, or USD 10.89 per share, a year earlier.