New York-based BlackRock
reported a third quarter loss of $9.8 million, or $0.15 per diluted share, down from $0.73 per diluted share at the end of the second quarter or $0.61 per diluted share at the same period last year.
The company took a hit of $57.1 million, or $0.87 per diluted share to fund its long-term retention and incentive plan. BlackRock began expensing the plan this quarter because the company met a performance trigger, which requires the BlackRock stock to trade at above $62 for three months consecutively.
BlackRock officials said that the earliest that awards would be paid, provided the company continues to meet performance hurdles, is January 2007. Employees have to be working at the company on the payout date to receive awards.
Total mutual fund assets were $78.8 billion at the end of the third quarter, down 11 percent from $88.5 billion last quarter. Compared to the same period last year, total fund assets were down five percent, from $82.6 billion.
Net mutual fund outflows were $1.5 billion from the second quarter to the third quarter.
BlackRock Funds assets were $16.3 billion, BlackRock Global Series funds assets were $1.3 billion, BlackRock Liquidity Funds assets were $47.1 billion, closed-end fund assets were $14.9 billion, and other commingled fund assets were $918 million at the end of the third quarter.
BlackRock reported total assets under management -- mutual fund assets and separately managed account assets -- of $323.5 billion, up four percent from $309.7 billion at the end of the second quarter.
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