BlackRock's profit hit by lower fees for lending stocks

), the world’s largest asset manager, took in less cash last quarter as investors moved into lower-cost bond funds, and it made less money lending out stocks.

The company, manager of $6.8 trillion in assets, missed analysts’ estimates for quarterly sales and profits on Friday, despite attracting $151 billion in new money, as much of that cash moved into lower-fee fixed income funds and accounts used to store cash. The decline in fees for lending out stocks resulted from reduced demand by borrowers, typically hedge funds that want to “short” them, selling the stocks and hoping to buy them back later at a lower cost.

Meanwhile, BlackRock said its iShares-branded ETFs took in $36.10 billion of new money, up from $30.69 billion in the preceding quarter.

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