(Reuters] -BlackRock Inc recorded a greater-than-expected quarterly profit as the largest asset manager in the world benefited from investments into active and index-traded funds.

Traditional asset managers are having difficulty adapting to the rapidly changing macroeconomic environment. It is characterised by increasing inflation, rising interest rates and fear of recession.

BlackRock (NYSE 🙂 was able to weather difficult market conditions thanks to its diversification business model. According to analysts, its size and ability to reach every market corner gives it a comparative advantage over some smaller competitors.

Larry Fink, Chief Executive Officer of BlackRock said that as the world faces economic and geopolitical uncertainty, BlackRock’s investments in the all-weather platform have placed us well to help our clients.

BlackRock shares rose marginally to $720 premarket after the results. In the first quarter, they fell by nearly 17%.

New York-based The firm had $9.57 trillion worth of assets under its management at the end of last quarter, an increase of $9.01 trillion from a year prior. Comparable to the record-breaking $10.01 Trillion in fourth quarter, this figure is quite impressive.

Asset manager Attracted net flows totalling $86 Billion in the first quarter. That’s down from $172 Billion a year ago, due to seasonal cash management losses of $27B.

The adjusted profit rose from $1.2 million, which was $8.04/share a year ago, to $1.46 Billion, or $9.52 per Share, during the three-months ended March 31.

According to Refinitiv IBES data, analysts had on average expected an $8.75 profit per share.

The increase in investment advisory fees and higher administration fees helped to drive the total revenue up by 7% to $4.69 Billion. Compare that to $4.73 billion estimates.