BlackRock (NYSE:BLK), the world’s largest asset manager, surpassed third-quarter profit estimates, reporting an adjusted profit of $10.91 per share, well above analysts’ expectations of $8.26 per share. This impressive performance was driven by strong investment advisory fees.

However, the company experienced a sharp drop in net inflows, falling to $2.57 billion from $16.9 billion the previous year. This decline was attributed to $49 billion of net outflows from lower-fee institutional index equity strategies, including a significant $19 billion outflow from a single international client.Despite the drop in net inflows, BlackRock ended the third quarter with $9.10 trillion in assets under management (AUM), compared to $7.96 trillion a year earlier, reflecting the company’s overall growth.

CEO Larry Fink noted that clients are earning a real return in cash for the first time in nearly two decades, allowing them to wait for more policy and market certainty before re-risking, impacting industry and BlackRock’s third-quarter flows.

The company’s revenue rose nearly 5% to $4.52 billion, driven by organic growth, market movements, and higher technology services revenue. BlackRock’s primary source of revenue continues to be management fees earned as a percentage of total AUM.