BLK Blackrock

Christopher Meade Chief Legal Officer
Gary Shedlin Chief Financial Officer
Laurence Fink Chairman and Chief Executive Officer
Rob Kapito President
Alex Blostein Goldman Sachs
Glenn Schorr Evercore
Craig Siegenthaler Credit Suisse
Robert Lee KBW
Ken Worthington JPMorgan
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good morning. My name is Gerald [ph] and I will be your conference facilitator today. At this time, I would like to welcome everyone to the BlackRock Incorporated Fourth Quarter and Full Year 2020 Earnings Teleconference.

Our host for today's call will be Chairman and Chief Executive Officer, Laurence D. Fink; Chief Financial Officer, Gary S. S. Robert President, Shedlin; Counsel, General Christopher and J. Kapito; Meade. have background noise. lines been placed any prevent to mute on All After remarks, the period. question-and-answer speakers' there will a be [Operator Instructions]. Thank you. Mr. begin Meade, conference. may you your

Christopher Meade

Meade, BlackRock. Thank General I’m morning you. Chris Good Counsel of everyone. the

the statements. Before we to We number this may, like BlackRock's begin, call a course, your we make from forward-looking the of course fact actual that may that remind call, of of you I’d during these statements. attention differ to results

with reports results the which you differ know, and filed As undertake update that today. the has of does some cause materially see to factors duty any of SEC, the assumes we BlackRock list to no forward-looking BlackRock not from statements. may what BlackRock

So, with that, I'll turn it Gary. over to

Gary Shedlin

morning and year Happy hope pleasure healthy and safe and to I Year. fourth their full XXXX. the the for remain quarter Good holidays. it’s everyone through New and present Thanks, And my families Chris. results

our over performance Before it I business results. financial and turn to I’ll Larry, review

release and BlackRock’s will which Throughout be business commitment clients, While our on in I financial consistently systematically results. primarily live adjusted shareholders in invested to discloses adjusted as earnings operate. a and as employees, our our we focusing the results, have history, communities with and GAAP we serving both and

testament and strong and thought a year employees physical our communities. a while the to insights unprecedented with this As performance to and leadership, management prepared model. resilient clients to our to business the during challenging challenges faced ensure investment in world being well back and result, well provide XXXX, we BlackRock’s diverse of is give to were tools emotional risk our

dedication X X% our for goal incredible clients long asset the term meeting last of time representing growth We the $XXX X% XXXX net billion organic years. on achieve generated organic fee growth focus based growth sixth and helping steadfast in of inflows our and organic Our in people. their the target

year organic year-end with in our the based billion which robust and to record finished client planning quarterly growth. fee total XX%. we net generating fourth tax along active fee entire $XXX near this Strong from based with of of increased derisking from Importantly, record benefited momentum, iShares flows the contributed growth reflecting quarters franchise inflows quarter performance organic

Aladdin, We XXXX continued both offense critical our to invest stability growth investing billion and through XX% our allowed of in markets, XX%. XXXX. and to portfolio approximately $X.X alpha of the iShares, markets, through as operating up during of and earnings of $XX.X revenue versus margin was play was share Operating organically per whole up and our private generation, expand solutions of growth XX% strength billion $XX.XX and us of our sustainable $X.X inorganically, capital year Each billion operating the income including volatile Full priorities, return shareholders. drove year. significant year rose full model

capital. driven our year by For primarily per quarter of the billion the income investment ago, higher a included net XX% in $XX.XX to count on $XXX Non-operating of versus partially share fourth seed Quarterly reduced a by the higher unhedged share from results by and current income diluted tax versus income XX% quarter. a $X.X non-operating XX% of for effective gains was operating market mark million XXXX ago. rate offset driven co-investment year respectively quarter, up BlackRock billion revenue of $X.X earnings and up and and generated

$X.X tax effective a though or items legislation net benefits. the differ reflecting rate the Our as discrete potential for changes discrete non-recurring the quarter in tax million billion exchange year. rate year-over-year consequence adjusted tax but X% of quarter over fees market tax on run offset may primarily movements a growth driven in estimate foreign partially of currently of the average Fourth were rate $XX XX% fourth base the market money fees as higher investments as We lower approximately strategic tax data or reasonable current organic positive was and the XXXX by for actual and pricing year. by the during up XX% impact and lending revenue discretionary AUM, of projected and XX% quarter securities last

was up base rate impact the impact a positive while tightening lower reason points organic driven growth. of saw fee a basis we sequential addition, cash of by decline the X% quarter X.X lending fee strong securities fourth In in annualized despite quarter effective revenue of fees the of during based were the spreads continued primary sequentially, our

$XXX As our strong and especially lending market alternative revenue nearly growth could momentum at nearly we and roughly continued on to In money $X.X compared higher operating securities that and year in our possibility as conditions we this and fee, levels. XX% in higher look fee the lower environment rates of XX% businesses shared interest planning XXXX rate generally more our with on for fee an fee year fee organic into totaled performance XXXX, distributors money up marketing are capping X.X with discretionary billion active quarter this compared then additional base headwinds fee have reducing the XXXX. record mitigate as of waivers based waivers gross point were doubled than based are to higher isolation, Fourth negative on year-over-year of quarter could for impact million that continued income. a basis rate. Bear market impact fees and this interest rate our performance the equity annualized mind fees current and fourth

our the fees that and to year's approximately attributable of XX% delivered in year-over-year increase reflecting revenue exceptional part billion strategy Technology $X.X Quarterly of increased the performance up full entirety the Services of was during and alternative revenue generation investment hedge acquisition. year year. across platforms, XX% single XX% eFront impact was of alpha fund full the the year strong While long-only a performance reflected this

effective efficiency cycles remains operational the sales and risk to in integrated pandemic. strong, and While XXXX demand of management with growth by impacted was services for associated revenue resilient management investment technology and technology support strength contracting

reflected certain year-over-year or revenue hosted on-premises eFront the life we in a generally our which a [Ph] community which with to contract. addition, is broader model growth revenue In service from is is shifting where how license an over model, recognized more recognized clients upfront Latin also consistent and revenue of

rate transparency and contract a comparisons more mid-teens following revenue equity momentum, Latin’s in of year-over-year more XX% representative quarter anticipate non-core of in companies of long which is their of disclosing comparison we by revenue the point year and quarter Services G&A XXXX first advisory and charitable a year ago, expense. we to a year term. year-over-year year-over-year a provide over As revenue leading decreased other top increased full during annual low and ACV, and increased technology growth and driven higher Fourth transition absence business the XXXX, method our Total intend into stake at impact how remaining growth represents in expense primarily growth XXXX model, primarily compensation ACV earnings management ACV time year. equity in the we to clients XX% and contribution of the value. eFront’s effort run lower growth. the in measure will to PennyMac embracing hosted an greater or to remain committed advisory begin reflect versus end, Technology technology revenue line in services and ACV and

during on fourth For of $XXX operating XX%, basis. and quarter that reflecting G&A related product base comparisons costs, offset compensation costs reflecting higher or because net Recall a and by year-over-year expense fees increased compensation COVID-XX higher contingent year. the the performance and related primarily value of expense and deal FX year, year-over-year, related are non-core the re-measurement year items compensation driven fixed asset X% relevant to of full impact Overall increased lower full legal income. higher expense fair less levels expense higher compensation million determine by incentive adjustments launch we fees primarily impairments, costs

which expense from XXXX essentially of costs expense. the $XXX that costs, to fees the of flat non-core operating margin. higher reporting $XXX core G&A launch impact aggregate were G&A fund remained lower of adjusted we million incurred our exclude year portfolio million as services and by T&E in for compared XXXX, offset included fund approximately as technology expense Excluding Recall launch

margin fees and full performance XX.X% from was as year securities during XXX of year up G&A adjusted operating and core basis record lending level the and than benefited of Our revenue anticipated. lower XXXX points versus a expense

market our into more business anticipated plan of investment rate in fees and with growth stated, investing money organic in has And we year-over-year prudent performance revenue XXXX been efficient the taking T&E term continued of to of operating data account generally opportunities our to balance into As have deliver expense deeply of XXXX also current our normalized disruption industry expense order especially market responsibly fund line organic which margin sustainability market of most waivers, as growth. environment, position our and for sheet anticipate results. advantage market long to aggressively take adjusted At XXXX us, through impact repurposing consolidation currently lending investing of fee present, comparisons before sec of to and Consequently, We're through committed may impact in would we we and optimize growth of amid the way previously data, excluding other the support and better incremental growth remain differentiated positioned for success. use to initiatives. includes and our cycles investments never and level back a our in lower our level possible. best the the to technology BlackRock in the business

co approximately of billion. and During our $X.X billion growth XXXX, end new support $X year allocated portfolio over capital investment now our and to seed is we

We portfolio minority AI, index today of the announced sustainability will Clarity SMAs platform equity analytics hear in investments. And customizing as shortly, will and pioneer worth ultrahigh also net you Larry strategic science optimized enhance we and quarter, platform. an And continue make to advisors. fourth wealth announce whole Aperio, and in our we to tax provide a from a acquisition in data investment solutions the to later

of in early relative Following period amortization will expense intangible the XXXX. February, incur to transaction we close the additional

worth also repurchased stock shares dividends billion At shareholders. billion our and return in for inception We systematically an generating price, decision an management present, per XXXX repurchases approximately XXXX excess repurchase stock, of and our a $X.X reducing capital $XXX remain and are XXXX, total our compound We over of shareholders price XXXX. year ownership returning of market position cash share $XX committed plans of billion PNC advantage now repurchased in we in have unlevered on of combination by shares targeting May. XX% through to and $X.X our to including conditions, exit guidance of shares average based outstanding XX% an to we spending the share consistent shareholders their aggregate taking the for of ago. strategy to share in of of and year of during current $X.X the subject to annual with our valuation relative billion BlackRock of a return capital Since

In dividend. to subject an board addition later also for conditions, to first increase we to month see expect XXXX market this our and approval quarter

more growth performing long total into and inflows been BlackRock meet regions, in-flows X% Fourth reflected strategies. our annualized X% strength the broad, alternatives. iShares net growth liquid active $XXX included both in across active reflected were benefited outflows based index of deliver led $XX AUM client products and iShares gains and into net precision term flows iShares were base quarter capital factors seasonal growth of in cash. billion of classes, strategic help billion outflows. index, hear XX% from broader growth. growth inflows X% billion but by franchise. organic for in positive guidance a income Fourth seeing But sustainable billion, portfolios quarter tax net XX% is rebalancing fee several growth, broad product clients $XXX organic asset significantly strength quarter their income asset breadth product and and income Retail net and based Institutional growth better growth record and market Full tactically despite of fourth equity our gains organic unique positioned based will saw active core strongest in full U.S. $XXX impact areas fee fourth retail offset strategic fee for annualized also categories was also fixed the fee the segment flows retail active fixed year year-end and this The annualized net quarter. top in our mutual industry and net and you equity all As and typically asset fixed of by our annualized and organic we outperforming inflows of in leverage reflected quarter year were inflows and saw growth internationally quarter trends, which income, inflows and to organic dividend our similar on as our and risk net the from XXXX, and $XX strong organic annualized billion after and reinvestment. client billion needs. XX% organic We XX% reflecting and our especially $XX X% with to representing in types annualized industry. $XX equity the based each fixed reflected of solutions due and and partially significant and representing ETFs outflows led base strong segments. net cash as shifted never XXXX exposures rebalance to has to iShares flows generated billion or of insights, Within large assets positive investment asset generated across organic planning. we net Larry, BlackRock representing fund of were of inflows Global sentiment representing inflows, during them clients the by

do to significant a In guidelines. to to assets, client of recently first manager plans transition large low the plan fee addition, U.S. billion of majority investment pension revised during but approximately of of will we assets another a their expect $XX maintain of public management index the announced the BlackRock half meet diversification XXXX.

will of XXXX, will $XX in in organic impact on transition deminimis outflow, fee this inflows for growth net BlackRock’s generated a franchise billion have year. our it active result institutional While a significant our net the categories, date, broad were target net significant growth based asset momentum reflecting reflecting and franchise, OCIO active $XX by all life billion inflows product business. continued inflows multi in net strength of across led asset our and base path,

event by capital deploy liquid inflows management saw multi hedge committed and a BlackRock’s in of driven fundraising variety clients billion a alternatives strong, representing $XXX XXXX. billion billion quantitative net for into billion institutional income growth approximately in also performing net fourth retail with $XX in were record led positive net fundamental growth year, Sciences clients. this businesses We our by future demand remains platform in industry global year billion insurance fixed billion as from our of we well even a strategies. another the for Overall, the have and positioned equity performance category. Health period. future of equities, year systematic medians generated a performing institutional during inflows benchmarks have remain or delivered now we client also source the quarters the $X franchises to $XX Momentum base income, of We in equity and top active significant five strategies for inflows generated trailing and in of taxable fees. for $XX seven for Technology, of driven $X with illiquid generated and primarily of and in our Across U.S. activity and Flows flows active and continued record the types, and XX% equity above their active inflows outflows among cash fixed net consecutive quarter, as net broader inflows of active our of credit and well respective strat assets infrastructure, as strategies peer alternative over active equity, solutions, private funds. and net of

approximately we of support such in discussed, During quarter, the XXXX. $XX increase waivers, and, fourth to waivers as million previously yield discretionary incurred expect fee

in were Finally, other primarily time statement. world assignments our clients purchases ahead our primarily This full line and the called reflected moments of group. year culture, have XX-year our and that managed included markets to to advisory look net year, is inflows face last year revenue history. billion advisory income financial advisory predicted us back of our the client’s these could of $XX our asset We challenges it none during of linked by a we revenue to purpose, XXXX of on as strongest the our By would XXXX. remaining respecting that needs around BlackRock true and investing some unprecedented of we our the linked and one proudest

we of needs years. I'll been over our coming have as platform never to Our in turn relationships is Larry. platform, over to the meet we our believe well ever that, the all clients as with And positioned With it's stakeholders believe it been deeper.

Laurence Fink

Good hope are your loved thank you for you And you, healthy ones and staying and I everyone. Thank call. morning, joining Gary. the safe. all

inflation has globally build sustainable contribute lives, in to staying and clients our our landscape, investing sense deliberately culture front all savings opportunities to we of towards and increasingly responsibility economic term to and the stakeholders. investment are around tonic we whom For require advanced pandemic, rising impact to client on way turning We've millions business rates, XXXX, inequalities in taken around the to Investors same like and solutions, affordable, even shift they retirement the their toll decades, further led business hardships purpose The world, of the most low face are in easier economy. way needs. portfolio disrupting redesign for behalf investors across around on and leading it's saving the inequalities insights challenges people how of within up has the allocation, the interest strengthened of trends more today. they help the are rising our long that our and goals experiencing navigate them. to sustainable the changes make resilient, most it BlackRock’s for the results more is is which to has These their BlackRock people are the and and even have our platform and of of At a of strategy, the world will shift can nations built BlackRock continued creating a economies in to in exasperated global how complex that by to future. a profound a for expectations, live. rethink by only savings, prepared in help experienced of society And practices. we dramatic The invested pandemic time, operate, work so societies so fulfill showing pandemic all and

Our active and us technology, integrated with enables more our for stable for outcomes classes, strong asset diverse to all and data, global investment consistent management, scale strategies performance and investment risk deliver global index connectivity clients. and platform across and and

top and driving our on is leading their stakeholders to all see BlackRock’s worldwide, them. based billion as helped X% These and and fee with Our basis alternative our all classes, in focus a diversity inflows $XXX in organic client and BlackRock partnerships expand across of of our mindset, our to positive our approach voice margins And saw and important net and set globally, you clients of with growth, of managing on including different has reflect this all we generated of basis. We XX per operate to developed could equities, Flows for over XXX income more companies, clients geographic in types, across XXX invested major our transparency for and partner our were share X% investment each BlackRock a organic sustainability that, BlackRock’s growth. increased strategic benefits inflows diverse differentiated has to incredible sustainability, our demand of points clients revenue In momentum driving by helped And $X with regions the and representing record platform. we results able the net consistent growth, the investments and factors asset products total assets long client advocate cash asset active on growth earnings into strategies. across their and XX% growth. than We our the performance. all a businesses. delivered operating with products. were XXXX us year-over-year areas, XX% over of years resonating of of billion behalf. term XX% are clients deeper countries encourage is

inflows risk generate revenues. billion to ETFs XXX We we of a with By BlackRock growth services also or no record positioned preference, delivered invest future. billion $X.X and is in also the into iShares for generated their matter and net differentiated solutions supporting technology clients objective

accelerating benefiting portfolio stakeholders. XX technology Our shareholders accelerating strategy our strategies We're business year, XXXX organic through of XXXX, we're accelerating alpha focus past over convergence generated BlackRock global growth sustainable are we in XXX to solutions that launched benefit XX% of generating regulation, and choice. expand investor net products and Sustainable at of point the These all doing investing. it to investments growth, performance by heart practices, this that representing in over across will in and new preferences. leader becoming driven sure client illiquid and growth iShares, alternatives, term our advancements in the our is inflows of seeing billion sustainability, in recent inflection course on remains in growth technology this delivering long and making our sustainable the whole BlackRock. and

are seeing sustainable across Institutional capture We to strategies and increasingly clients opportunities. strong segments. are seeking mitigate exposures to demand client

sustainable sustainable positioned four well to we the managed of in allocations -- crossed and said are and will years in iShares sustainable our the XXXX. sustainable have $X week, double $XX underscore investors XX%. double We plan In by doubling throughout average to traditional end ETFs we five iShares XX% believe clients next $XXX billion year, the worldwide is to especially nearly U.S. the to adopt using from level surveyed this we investment today a products trillion $XXX ETF to BlackRock of their and years. assets, platform are demand sustainable $X model ETFs approximately trillion they go While just over will both ETFs recently building iShares decade. inflows in meet our size investments portfolios. continue blocks, representing to the in this and trillion continuing to last billion drove Clients who

income $XX growth of sustainable sustainable ETFs quarter net long sources increasingly becoming across us and those suite of asset unlocked more globally index by Europe $XXX the portfolios fixed wealth more tracking first our the outsourcing are centralization iShares European to growth and of income ETF in clients term a seeing with it in quality Model most and rapidly and shied income for index estimate the other continue models, link of insights enabled that and growth digitization, and and these the will rebalances some adopters two funds sustainable product no customized income categories. portfolios for $X managers moments top We Growth XXXX in first strategies. coming of nearly in to iShares saw ETFs iShares of tailwinds client clients. to to accelerate while ETF in ETS a in market. strategies trillion model. industry. are global approximately the partnerships active fixed to expanding of choice largest ETFs and $XX across new point billion adoption a business industry a ETFs. management defining owners and are years. We're iShares our to for of trillion technology tripled billion. in led for especially an BlackRock in to fully example fee and XX% the market. financial history, fiduciary to managers particularly data income time $XX both more accessible model bond year-over-year with record we inflows our test expect in now of this next fixed ETFs, XXXX Two, these quarter more States how and and in over can as ETF half operating broader all we -- of AUM and in four XXXX. our More billion making high usage business all are ecosystem are XX% in are globally. it as Our in greater United and the income offering product free outperformed more and in demand generating income is XXXX shifts innovating that iShares and our than active billion and landscape to product to platforms models the will wealth is billion were the ETF across and Shift inflows firm developed XXX to an together. With the of continue a Fixed history. as ETFs modernization our strategic And clients index a product managers face account any air support of providers increased both net segments stress is portfolios four, BlackRock with ETF strategies. more XXX sustainable of we three in have scale towards and iShare managers among iShares adaptation and $XXX choice our We believe growth. management the partnering owners an tight platform globally robust continue iShares iShares remotely advisors that partnerships deepening now the wealth the firm with us active liquidity maintain partnership towards so management than we believe global asset We iShares generated fixed investing access expand inflows. category. engineering, asset is transparency based and two globally were have solutions the turning commission BlackRock’s more by performance driving years. Overall, important well with flows witnessed goal over than moments to ETFs more environment. ensures severe of grow Sustainable globally investors. in broadest in fixed our for market wealth in One, this technology them increasing using globally have and ETFs and iShares annual was in ETFs flows and investors iShares the execute people, Three, savers fixed And $XX from

space. clients a delivering choice benchmark about clients. fund more are mutual demand wealth strong technology, global or looking And solutions. industry which income sources our in interconnectivity investment We portfolios. increasingly of the to management, the clients. managers whole saw integrated critical can growing incremental, Active dollar personalization BlackRock of We well access acquisition reach, after to to November, U.S. resilient, wealth risk provide and partners in tangible positioned equities mutual the account of over Wealth our manager fast be accelerate and make now across will scale not than strategies to partner construct want and franchise differentiated performance top easy separately generate who In active just fund the who XXXX. peer time performing funds seeing U.S. it more differentiating returns a SMEs, for full both most. aware portfolio leadership is of for is investment as building us enabling announced for performance in managed for strong as but find increasingly we ETFs, It's time managers in performance spectrum Aperio $XXX resilient active a alpha. BlackRock's the outflows broader risk And data, fixed lead fees need public portfolio are strong efficient. the our technology. of strategies are billion even medium, our when and can efficient markets, and models more beating are for using for this and at Clients looking investments become a a

behalf solutions, are year private including term high a and active and alpha total We with by of the clients. and time-funds $XX returns date than final of to doubled which built before. private to a of active client demands. beat scale of equity over the and important a innovate private client $X.X platform private for an infrastructure, for private private leveraging to billion, of broad ability inflows to more private behalf Our capital deploy we led Private environment for in organically total our active clients example $XX BlackRock's assets alpha $XX across alternative LTPC billion and of billion growth five of of of in deploying last capital business our BlackRock a more $XX a size leading equities. evolving on increasingly on billion markets direct platform years, market and both in developed credit, is equity first raised great increasingly record credit, the record $XX the long are is XXXX, illiquid we BlackRock, capital solutions component raised inflows and benefits our close BlackRock has largest XXXX infrastructure, to billion strategy. We needs. over active one And also equity estate, investor of generated portfolios, today to billion clients. generated of capital, demand real for clients' BlackRock an than as meet for diversification. the and competitive and manage ever

value billion such in team recognize we flow deal can our access provide proposition unique technology helped market to team $X.X clients this Today, ago, us differentiated important a gives XX XXXX. And for revenue a for opportunities. capital alone us business. source clients. years Aladdin the Our is our X,XXX

before unified technology whole evolving private than As focused assets. to we public and And on across portfolio both Aladdin, clients come. their can support remain continuously next like Aladdin looking are that are years committed the a and platforms for more ever XX for

help As clients to access our economy risk the launch a both Aladdin all better is on the at portfolios, carbon and We investing, sustainability change building challenges to sustainable facing to in becomes future. physical center transition portfolios. of the Aladdin address and investment a In social with minority the and clients the Access and which are data, put to critical implement And and tools Climate risk investors their climate block ambition low of in Aladdin. portfolios. need throughout its committed impact, we Aladdin. to sustainable we'll a with seamlessly commitment, and access be investings we're analytics, the to AI, tools line everything to environmental sustainable they with in and made this connecting for capabilities in sustainability Clarity providing provides

ability Our strong, enables challenges to address us long term to clients fulfill purpose our drive and performance.

which using the firmly the to the that, shareholders, will everyday have importance create this success deliver clients, for all people I benefit long where remain With our we benefit new upholding And let's the XX% annual we continue X,XXX of enabled XXX% markets, of which assets. value BlackRock is culture year, we future, today they more to how rooted our XX,XXX focusing believe by global our long only throughout our XXXX, where challenging employees last clients is I and for the culture am committed we capital we where us our save. to assets, the to Even and and be of the with and clients we global return growth shareholders. markets. to at globally. resilient jobs proud on will us our our of innovate and entrusted to to BlackRock our scale because other five over operate. capital open turn opportunities our to do of benefit and tremendous employees than being on our and financial it living built that, the our our we for And delivered has continuing the equitable, are position questions. term, employee that in communities up over each we XXXX $X.X of Everything the humbled to top of in markets, supporting purpose. More the believe see of and efforts of BlackRock work invest BlackRock we survey years, in to Over invested total X% deeply contributing in of growth supported helping our more net the employees, work, in is all We long live, opinion capital to term and said, and critical in people BlackRock, term trillion ahead stakeholders.


Your with Sachs. Instructions] Blostein comes question Goldman [Operator from first Alex

now may your You ask question.

Laurence Fink

Good morning, Alex.

Alex Blostein

Good everyone, morning, New Year to Happy good morning Great. Larry, you all.

First like healthy question wanted front, implies on in and guess you talked around and relation a this about given key beyond you are some market the the the to guidance a maybe we provided get again, into at And specificity the margin technology for revenue expect exit and should XXXX? more know data. But I ask ability where beyond to to think to add guys spending. XXXX. I deliver that of guys pickup BlackRock that XXXX? areas positive little how areas, of can we pretty kind on the scale you strong operating BlackRock about what specific you leverage

Gary Shedlin

the Thanks, Year. Gary. New swag chime others let Happy that Alex. It's in. I'll and first then take at

number different year. had into last would responsibly the a cycles that over little about, a of performance think crystal level that margin investing basis that from We and record in next we're like saw as we commitment performance and anticipated. length, have we've of last across lower of strategic what everybody improvement year course, we was call, So, talked year securities our benefited our to talked benefited in XXX to G&A a also from margin at XXXX look, did core And items of about, expense And XXXX trying I stare than a reflects, revenue But record. a lending as ball potentially year business a of market we've our be will points clearly I else. fees.

margin we have saw front in aggressively. know perspective, the and a never we've we of investing year expected. as my we from would about been it as about little you was think higher than of we this advantage you stated normally to are pop the better positioned previously, bit And if passionate probably us. responsibly take So, opportunities And

and growth bottom the initiatives. business front next variety fact So levels asked happening of to technology, and the line. many those very our we a at -- areas drop some and your a little even conference have into year, our out to investments point of opportunity us, the other support invest for at we asked look and spending plans those whether at to data the that view your to incremental maybe to when we opportunities were and is offense about continue in core industry to see harder, a playing this we that And of in reduced unique in back what's in money support market would

we've So, those what like very it's what consistent think with you talked say when are, about. I

we we I to really some of complete plans. repurposing higher all And year, invest of again, next look terms those think of meaningfully in our remember, dollars. didn't investment

third we, in in March, year the put XXXX in During rehiring hiring start until freeze really the we on a quarter. late didn't and

bit little a pine. we're So,

markets, we're bit obviously is to which So incremental as I little bit to get portfolios, going strategically, the think and China, operational starting that's And up private going happen. there. ramp iShares, catch of on stewardship, there's of up a Aladdin there's a little sustainability, whole

of are technology, terms the cloud in we midst our of In migration.

improvements in We the terms safety opportunities and tech infrastructure, throughout health as of are as seeing well organization.

saw feel results the us a we mind, we that think a anticipated for in ramp kind more higher bit margin I So of then it little of to right have with this year, time bit it And that a of would margin up. we story little given for a is moderated that XXXX. in this


next with Glenn comes Your from question Evercore. Schorr

ask now your may You question.

Laurence Fink

Hi, Glenn.

Glenn Schorr

you? Hello there. Okay. How are

flows, it's remarks. you passive play, good Because curious, goes And there's to I I'm and at into look have back opening it’s right? rates that Larry's picture continuing. really go on fixed but So, that's income XXXX, a zero. and of both a active lot interesting, big if things

you outlook, how higher to about allocations fixed think on are thinking start inflation front? the potential income the asset people As on going rates particularly and change,

Gary Shedlin

don't Well, crystal I a ball. have

client result is to fixing allocation really change curve preferences, they XXX. the is that the seen in that going right believe saying to not show is of I is that terms ten-year. significantly duration. -- as the specialized because persist. at are time longer we But do So, income, not have products are I targeted that high in -- a be SIO, Last even not a demand that remarkably, is up as forward rates going are at now, liability -- quite going consistently targeted looked to [Indiscernible] we equities that interest not still believe product fixed change we because I much like at rates looking rate, targeted, for the and as rate, will does which not

We the expect potential from dollar. to see more a away as global demand the and lowering of U.S. bonds global mechanism

as see markets, to show continue We more and more interest continuing trade. private see private we to beginning markets in emerging interest will to And macro a in we -- are credit.

are which in -- I we So in all strong of these.

It's lending system going persistent I scale make see up going I rebalancing income side, core rates to So, out banking if of going make large stronger. would a to it's be positive assets. you're obviously, don't to had. yield the even easier to The go think curve, say for fixed much to the be

I think the is a for economy. sign curve yield a rising positive

do you to anything have in to wanted add better of equity leads all probably that, you mind valuations. to so my And that? Rob,

Rob Kapito


mentioned allocate I already I going think, fixed differently. environment, asset start XXX are as to iShares. managers good the is but this people is And to see. benefit his statistic why using still asset as outstrip owner And and way fixed income opening Larry top we've as low from income, look ETFs. the is, to reallocation, as But the to asset now people over a into demand in income seen fixed going of remarks, supply. clients the it start fixed flows going iShares XX% we they're rate to think to at come Glenn, do the through come that this are in managers And allocate we've is income, new

be we're demand iShare the going as income. to they differently shown in. money come But to demand. positioned our is in still business there's that think we fixed in So very well take And


Credit comes Craig Siegenthaler Your Suisse. from with next question

You now ask your question.

Laurence Fink

Year. Year. New Happy Craig, Hey,

Craig Siegenthaler

need unique witnessed distribution Actually BlackRock And the morning, And the asset and scale. discussed in you the doing manager guys the Happy largest for in all CEOs M&A well. Larry. hope are pickup with We've industry. Hey, management largest many all good asset is world scale. since Year, in New is to distribution have on do the M&A? given distribution also also, firms the BlackRock trillion activity hear billion buy perspective wanted that And a really improve platform chime on deep advantage. And in you Gary his XXX globally, just into their AUM scale scale? firms your I their just or of to think to background have need hoping can

Laurence Fink

I'll don't why part that one part? last on and So finished you start

Gary Shedlin

on. not I'm Sorry,

think guess -- we was as So about I it question. a two-part

was what are we about M&A, that Your and do the Or of on think Craig? first scale? is the in how context it scale question unique

Craig Siegenthaler

First at BlackRock. same large, that question are not is And to they is that as size think the advantage industry you firms real to scale? a improve buy firms on, need talk their look do then, them? you the And as about other BlackRock's for Do other but fairly distribution advantage? scale really unique

Gary Shedlin

don't our for as now decade, bring to know, proposition We've all well to distinct and trying try that that But competitive also our just a of terms local by discussions terms in the about lot. we identify overnight unique we to investment and terms there's people of pieces on half of great in we all our thoughtful global of to capabilities pieces passive. those management, that being obviously, been for a that of opportunity need, a culture. are to technology, able one critical our integrating able to together. commenting XX,XXX other And obviously, the is Americas really talks that local think of you the into on Aladdin that's of that firms a success do. active going capabilities. -- Larry value virtue clients I'm but be to then, of are of only We those those what Larry risk reach, recreate the over not both number And plus in at really I what the ground, days, as think that with believe BlackRock lot avoid And markets. these drives a of a our terms of advantage investment fact competitors to have reach is in in to spectrum people, across obviously, best-in-class today, mentioned, outside should boots diverse of capabilities over having

unique? that frankly franchise I creates be again, today. I we of of we management brought that on breadth cylinders breath Do it's people do doing to But try what leave people a create, to that I have seems insight, multiple a view decade, the to I'll -- to going we risk humming we view breadth replicate and with for now. think And could been it for said, challenge. as this potentially, something and right Yes. other as that of this So, but reach, to together think, as long time technology I product, think, quite all take unique we've

Laurence Fink

to of quite me the Let has been over has five last the distribution bit commitment. a try buttress been part to platform years believe question. the respond term first our long I a

at a has do that changes active as that uniqueness risk wealth this of moment. world giant suggested this of and conversation of the elevation the providing providing and the analytics. passive No believe intersects the are can manager terms been content We both I across one too. firm in Gary by

an kind few build base base, we're importantly, certainly global the could And we that. have them management them. they're the firms. insight ability partners advisory work of wealth industry elevated that help helping they've solutions fee them their the deliver looking to and that to for We're more from And helping deeper, able conversations. and out. of away a go-to one who are to As and really that with advice, broader And moved has

whole a management solution or is about buying portfolio. a But combinations It anymore. becoming a overlay holistic with customization in in bond customize of not So of is not today, space. a to portfolio iShares stock fund the about the fund strategy. or personalizing need having stock wealth is the a is It And more selling is about now of and bond. more portfolios technology a it interactive the It portfolios. and

and that uniqueness it. our we about is so, And how deliver

personalization And difficult going making, Just where time have And as do what specific which asset drive category, to have to do the better fund. analytics they the has firms data three drive this a and terms part better of Sure. this whole always of five designed not need a what we driver to a working with management in uniqueness BlackRock. product, AI are interest. portfolio ultimately we why the portfolio And solutions to a decision to said acquisitions that the the think customization, to so solutions. today footprint? we one world for And are are of a don't response the I've is who consistent Could industry in on of becoming believe the have worldwide. to customization, or last over do managers States, is industry, in a Europe. specific respond is I driver, most and have wealth strong performance. only the been will they like That for Clarity of years. is also in uniqueness wealth announced we around constructive And we also What to opportunities importantly, the distribution? whole the we in trying provide really minority product the we I we more another do conversations. somewhere in Do United portfolio Not the the


comes Lee KBW. question Robert next Your with from

now You may ask your question.

Laurence Fink

New Happy Year. Rob, Hey,

Robert Lee

a everyone Happy starting talk does more being Hey. dormant see Hope everything. question. is Year. at after years, their feel pretty of bunch risk regulatory Larry, and and for I managers Everyone, to It systemic quiet guess about asset for New doing relooking well. like Thanks.

more you So of your just here? on Is you if see up? Europe think take or maybe in I -- where mean, that helpful? kind would your where be I chatter see kind perspective, of you picking it see,

Laurence Fink

markets. whole question. Great the We've capital of around BlackRock global strong foundations built

in believed capital global I the size global the capital over XX building markets, markets I beneficiary the footprint have last by expansion capital AUM years. of to size a commitment the our that And and big because scale we markets. and think the years is of over of we think been our of broad we managed the

interesting -- One points of said the at this my end the speech the I of today.

almost is it global capital what Our unchanged markets, size, was to in the relative to XXXX. virtually

under global markets. little X% in we of the today, the of markets. And X% we're capital So were global a capital XXXX, over bit

new a of we've as government the the markets has parts The much companies quite have as of use other markets markets, expansion Asia So IPOs expansion grown. really finance grown. grown capital the world, countries equity mechanism use capital expanding their markets have been and East in as of the and debt capital or deficit for of Middle whether The the extraordinary.

a sure we we welcomed to build need need that. So that. resilient we've capital benefiting well We are And functioning regulators What that. on that in economy. a to more always markets make focus

We're asset well to worldwide we have one look is OCC. about encouraged The we by I how across CFTC FINRA, key myth the we're the managers. regulated by asset are manager SEC. regulation board. we We're Trust highly we say have Bank. would regulated functioning markets. already. the the by capital by criteria, So that the it. Because industry overseas, the ensure regulated And a at At BlackRock, regulated is regulated

But organization still fragmented. why one a that's we're by Reserve. other not And regulated any regulator. almost by regulated industry we Federal asset are bank. regulator, highly the and is The are We not management

are a We're $X.X I we trillion how of from bank. management believe, But a be well hard industry coming not is other not our are are -- market. of earned and so, don't on We capital a conversation. bankers. concept assets need regulated, people's savings the that welcome encouraged asset of focusing all functioning money. we And about that regulators And the must

the the term depends of assets have And liquid in ETFs, every term, sell over And contract of that the going managers We do cases, in long more all days. In we have when mutual will encourage on portfolios, XX could almost client. institutional And we markets each fiduciary, not funds, are forward. been the that that supervision, our we And safety need not most asset of the savings, clients at that time it's clients. to funds, myth. markets. manager it assets, individual just want soundness. the some one with systematically private on contract a is in we But It our depending could in ensuring as true. as those a a asset notion our highly day. largest favor a with functioning and market world, they But have of all a they short our regulator,


comes question Ken from next Your with JPMorgan. Worthington

ask now may your question. You

Ken Worthington

for inside Hi, in taxes outlook of managed good the and the morning. on curious views and in tax aftermath for the U.S. COVID. And I'm income outlook higher your investing personal the investment extent abroad. outside demand catalyst To and provide here into another managed investing your ETFs interest for tax the the what might growth direct outlook contributes U.S. and indexing for in Aperio?

Rob Kapito

that and it includes we're includes for to managers more fewer personalization what wealth also yes. and managed, But is ESG, as demand broader mentioned factor And seeing is, do called And tax comes preferences. is partners. before, with under customization. increased that Well, it and are answer picture includes looking a the

they we Aperio, make easy resilient SMAs to why it enhancing wealth ultimately, to our ETFs partners able that's can our our alpha and strategies value access risk index proposition SMAs, income, technology. portfolio equity, acquisition even choice. aware portfolios partner funds, Because to offer managers be we to using are across solutions. across positioning So construct whole factors, models, who be investment and want whole fixed for our want [ph] more ourselves are And solutions. of further the of With for we portfolio

flows, We're with serving in funds, iShare of result close. inflows across even our active more a our as seeing and saw the our billion partnership managers, investment we more active of as advisors center saw XXX reaching mutual we're and we're industry seeing to investment. So more including with strong out outflows. wealth And advisor

cost And advantages. the Now, your certainly on flexibility. self-indexing advantages are self-indexing. Look, some has and of indexing the question. part

self-indexing that income, fixed And currently, And smart in six in ESG. well beta, we would areas we're in aren't factors, where in So indices. constantly be ETFs. exploring defined there self-index have

third major to provide in clients just particular well They corporate and indices, providers. especially the a this party also So we research, index often relationships IP events. continue providers, they have significant believe provider. than as our provide those benchmarked brands having And that great are with value And we institutions, to index more value often services tracking, the brand.

in I investing the of better size So, focused and we're the U.S. price providers competition also announced Morningstar the recently and style better among represent on sharing the you've And IP. collaboration with mandates seeing index market. seen our style for also equity clients to enhancing think

be a So, personalization. going forward, a a for rightfully has this you this going lot is focused but set, that customization, say, tax lot on as we want do that. well to positioned and lot And with of to to of be that


gentlemen, have have and allotted closing Ladies we the reached time do Mr. questions. you Fink, any remarks? for

Laurence Fink

their all this a results we a BlackRock. result center for and our joining the to of BlackRock's continued needs you Thank interest do. steadfast serve are morning XXXX at operator. everything your for you, direct putting in commitment clients of Thank

helping more so We're people we to will to investment affordable. economy. to in easier, up sustainability the build investments continue can and continue to come resilient more going of advance savings, be We a make and to contribute to invest years millions better innovate to

Everyone please to a in in beyond. please of continuing good feel BlackRock will healthy. Thank start. Everyone, vaccination. my XXXX All safe. now. of the success have you. get that drive mind Everyone, Bye-bye and everyone be And please stay a