US investment manager BlackRock reported third-quarter assets under management of $1.3 trillion, a 6 per cent jump from the previous quarter, driven largely by $41 billion in new business. The majority of new business — about $30 billion — flowed into BlackRock’s cash management strategies, a direct result of investors seeking stability during a volatile, unsettled third quarter, company officials said on an earnings call this morning. Assets managed for retail and high net worth investors worldwide reached $402.6 billion, up $18.4 billion during the quarter. Net new business totalled $8.1 billion, including $3.8 billion in fixed income, equity and alternative investments. Overall, BlackRock reported a 12 per cent increase in cash management assets, totalling $290.7 billion. The company’s assets in other strategies also increased during the quarter, with fixed income up 4 per cent to $509.8 billion; equity and balanced assets up 4 per cent to $454.2 billion; and alternative assets up 7 per cent to $44.9 billion. BlackRock’s institutional assets, both in the US and internationally, drove a significant portion of its overall growth in assets during the quarter as well. US institutional assets totalled $576.6 during the quarter, a 6 per cent increase, driven mostly by $25.1 billion in net flows into cash management products. International institutional assets were up 6 per cent to $320.4 billion, on $7.6 billion of net new business. For the year, BlackRock’s assets under management are up 21 per cent, with equity and balanced assets up 27 per cent, cash management assets up 27 per cent, fixed income up 15 per cent and alternative assets up 2 per cent. Overall, the company reported net income for the third quarter and nine months ended 30 September 2007 of $255.2 million and $672.8 million, respectively. Net income was up 15 per cent from the second quarter. Third quarter earnings included a one-time expense of $128.1 million associated with the insourcing of certain closed-end fund administration and servicing arrangements with Merrill Lynch and a one-time tax benefit of $51.4 million due to recent tax legislation changes in the UK and Germany.