BlackRock disappointed analysts today by reporting quarterly earnings $0.11 below expectations. The New York-based asset manager reported $46.5 million in net income, or $0.70 per diluted share for the first quarter, the company announced in a release on Tuesday.

Assets under management, however, grew quarter-over-quarter. Total assets under management were $391.3 billion, up 15 percent from $341.7 billion at the end of the year. The growth was largely driven by separate account assets, which ballooned 18 percent from $247.9 billion to $292.2 billion quarter-over-quarter.

"The significant increase in AUM was driven in large measure by the acquisitions of SSR from MetLife, Inc. and a closed-end fund from Cigna Investment Advisors, Inc., which contributed $50.1 billion of AUM, after giving effect to outflows of $1.3 billion and market appreciation subsequent to closing of these acquisitions," officials stated in the release.

While AUM increased from the SSRM acquisition, first quarter earnings took a hit of $8.9 million, or $0.08 per diluted share, related to the transaction.

BlackRock's mutual fund assets also increased, but by a more modest amount. Mutual fund assets under management grew from $93.8 billion at the end of the year to $99.1 billion at the quarter ended March 31, an increase of nearly six percent.

Within mutual funds, the asset manager's BlackRock Funds and Commingled Funds saw the greatest quarterly growth, increasing by 54 percent and 26 percent, respectively. Both increases were fueled by net inflows, and not market appreciation.

Conversely, assets under management in BlackRock's Global Series funds and Liquidity Funds declined nine percent and eight percent, respectively, due to net outflows.  

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