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BLK Blackrock

Participants
Christopher Meade General Counsel
Gary Shedlin Chief Financial Officer
Laurence Fink Chairman and Chief Executive Officer
Brian Bedell Deutsche Bank
Dan Fannon Jefferies
Michael Cyprys Morgan Stanley
Craig Siegenthaler Credit Suisse
Alexander Blostein Goldman Sachs
Robert Lee KBW
Call transcript
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Operator

Good morning. My name is Jerome, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the BlackRock, Incorporated First Quarter 2021 Earnings Teleconference.

Our hosts 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. Thank Instructions] you. [Operator Mr. Meade, begin conference. you your may

Christopher Meade

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

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

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

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

Gary Shedlin

It's good hope results everyone. I present and of families for everyone the Chris first are morning pleasure and my quarter to their Thanks, healthy. XXXX. and remaining safe

turn I'll comments, Before offer to business review our over I to results. performance and Larry this it financial

recently ETFs, appetite. in high as both leverage industry-leading capabilities. We've develop technology, both I results. index can primarily as clients earnings and adjusted risk private regardless release clients so our investing, meet franchises markets, whole for platform their and has such areas, invested portfolios that we results, growth BlackRock's our years discloses on more time been environment help built objectives financial sustainable to While or market over focusing help resilient, GAAP as be of to will construct active adjusted and

of culture operate. future investment meet our year business, us purpose investments strengthened and and emotional best-in-class centered the all pandemic collaborative mindset with we are generated encourages annualized BlackRock including in the resolve of growth entire consistently which employees, communities incredible that in inflows quarterly evolve later, billion driving live come have annualized clients, The clients could in that of a $XXX BlackRock Strong billion build technology to one fee to in performance this quarter where a organic fiduciary would our human the a our always first base first consecutive our ownership our franchise, order and shareholders, of has contributed quarter, business. over made asset in fee X% COVID-XX in stakeholders, a net past organic invest record across our continue quarter's economic and of to our needs platform once few organic While around BlackRock the the representing and predicted only the to inflows, for to events be of growth unifying we the fourth still from have robust XX% entire challenges active growth. again, $XXX growth. momentum confronting year

diverse representing the generated in inflows, excess billion of has pairing XX our $XXX months, X% capabilities risk with Over base our growth, over last investment rigorous now and target. organic XX% management platform technology net total of fee best-in-class broad-based long-term well

nearly impact $X.XX of was of First by quarter current $X.X $X gains share the XX% lower million net as income with quarter ever billion the launch of for impact non-operating year higher income rate, largely the diluted quarter. offset rose of compared billion the revenue also minority a in our offset a in partially our results tax our $X.X included co-investment approximately largest ago, by count lower portfolio Non-operating million share XX% year-over-year, Innovation per income $XXX Trust, Envestnet. Earnings mark-to-market of $X to reflecting and stake a the were effective associated while the in closed-end and reflected costs operating in investment late Growth up of BlackRock and March. of fund increased XX% of billion

compensation of for tax Our discreet that awards included in million XX% best approximately each quarter year. to $XX quarter stock-based of was rate and first the related first the adjusted tax as benefits

continue XXXX, discrete tax non-recurring the for legislation of during the to projected the remainder potential changes a reasonable run a year. consequence items rate effective or tax XX% of the rate actual or is may in so tax estimate We differ as

were XXXX, billion resilience the in from effect days and fee the year client base less technology crisis, securities higher quarter revenue low day the fee fees million remains by ago, offset a to COVID lending demand current related liquid on significantly waivers, Aladdin's lending fee revenue revenue driven to increased effective We lending in investment strong year ago. securities our market in base of and $XXX day strong and driven a year. by disruption to up First equivalent strong organic base Annual of X%. differentiator investments value, of of impact quarter active by AUM, rate fee securities impacted long-term particularly from growth based primarily teens sales volatility XX% by foreign quarter. growth exchange up in our Performance was higher current throughout the over reflecting lower waivers pandemic. market has year movements money services quarter, more a in discretionary the of the ago. market fee and first XX% ACV $X.X average and COVID was year-over-year, one contracting impact long-only of revenue, discretionary contract platforms up performance of positive basis, securities from committed the been the was fee reflecting or and remain and organic partially and slower essentially and year-over-year, revenue market the compared XX% key the over growth last which Quarterly alternative pricing was offset fourth higher strong. a money ACV, than the lending lower a our and fee businesses count strategic an mid early the increased quarter On growth Sequentially, beta fee flat and strong

which Aladdin's a PennyMac and it charitable making versus constructing capabilities, in and Advisory reflecting reflecting central grants these quarter fund our that year-over-year, average down million compensation was deferred risk reflecting absence relative future. Quarterly and were by adjustments equity impacted essentially we of costs, services primarily up the higher Year-over-year approximately we detail, contingent year-over-year, more out the revenue technology fund benefit exclude expense million in And by impact XX% AUM. G&A of in discuss adjusted equity compensation amortization year-over-year tremendous the ago driven increase spending climate management sustainability higher expect impact building and year of continue costs. quarter. $XX to earnings of certain quarter expense approximately incur see Recall by to the to which G&A as expense as million margin. performance disclosed reflecting higher a method increased impact direct of G&A fair mark-to-market of of the previously G&A will higher opportunity incentive and XX%, offset programs from On fund XX% non-core a ratio index which compensation driven comparisons compensation, stake $XXX compensation our value the higher $X expense. contribution increased planned product operating mark-to-market G&A related and sustainable on expense higher compensation portfolio the the to $XX million fees the expense income of primarily data closed-end year launch analytics revenue Approximately professional $XXX additional G&A was of in quarter, the launch marketing fund million and to was of compensation, expense million year-over-year, Larry the February closed-end year-over-year, primarily and other benefited primarily portfolios sequentially $XXX deferred the the up a number XXXX, was revenue and Total costs launch remainder matters. reporting fees. deferred Employee in legal a by transition XXXX, and expense increased first lower flat certain non-core consideration programs. core the lower ago. when of expense areas, of our XX% acquisition also Aperio, in was also following T&E, to first costs basis, as of tangible of operating we current and and remaining included as Xst. quarterly in well expense Direct attributable closed year. as was As delay reflecting depress year-over-year spend over result to levels this and

benefiting lower was a investments year in in part timing the versus Our ago XXX first the significantly non-core G&A operating quarter. level quarter ago, year margin expense of spend as of certain current from points adjusted basis XX.X% up delayed a of and from

possible. we and been stated advantage in better efficient organic before the our take in us, optimizing remain opportunities January, As never of positioned committed has most way we growth the to to business

We China, and including see pursue invest and for sustainable intend private opportunities technology, numerous responsibly. to continue these to opportunities to growth, markets, investing,

Our capital to business strategy then excess combination in through first management invest cash and share remains shareholders repurchases. to dividends return to of and our a

and accelerate invest co-investments BlackRock seed strategic growth to our of M&A investments and our success, to prune through and to for continue minority tactical continued use sheet We ambitions. position balance through growth best to through organic support

We acquisition common per with in During announced quarterly as in previously co-invest worth quarter. in of increase of share in common quarter, Temasek discuss Aperio, to partnership our $XXX our first $X.XX XX% the a of also to we will and and million technology. a shares decarbonization detail, more the first repurchased dividend closed Larry announced stock innovative

no to opportunistic year. you While repurchases respect year, share is we the there earlier to we guidance will remain repurchase during minimum to this provided additional with the change

billion As from to their we for unique and them of solutions the reflect been as positive net insights, our of with investment quarter, including client of help franchise long-term deliver across in asset Record our the style, needs. Larry, meet to better and investment never flows guidance, region. $XXX you'll broad-based class, flows BlackRock positioned first also $XXX long-term clients channel leverage billion hear strength inflows has every

$XX net Our our equity ETFs segments asset sustainable led billion, the iShares franchise base and of core XX% by in with continued strength organic ETF fee growth the generated and within representing growth. diversity highlight of annualized and BlackRock product inflows Results ETFs.

for strong exposures, to particularly worldwide. rerisk, equities in also flows continued portfolios reopening our as position of their precision higher driven liquid international clients tactically and We economies markets saw into the feed

capture base organic will and ETF especially $X.X was reflected organic to positive of of benefit internationally continue inflows, flows by into drag led of reflected retail reacted offset ETF entirety platforms. equity franchise LDI are sought alternatives XX% of to net strength significant once equity Record products, LTV growth. billion index of and active fixed outflows from billion immunize and active which any our XXXX. the fee platform, clients secular of in across Inflows fixed yield, resurging $XX U.S. which including income from bond performing $XX BlackRock's yield, through both income fixed portfolios our asset appetite steepening These and longer generated major rate duration client curve LifePath fixed as well-positioned including broad-based to were strategies. largely again even demand to to yield term offset our demand diversity speak and net or strategies after Institutional long-term XX% shorter by growth rate meet for growth income continued which for the with high date floating outflows, the billion inflows growth duration where across for classes, the the institutional the gains unconstrained and inflows, diversified most market market quarter longer franchise, income positioned First investors is net to since and in more net rebalanced $XX exposures, top strong our annualized fixed. active inflows annualized portfolios demand inflows investor representing net which from significant international by environment. range, broad reflected asset all billion, than equities as in were ETFs, target

manager. investment likely our into client retail Midcap inflows, XXXX equity their in our a illiquid client for capital equity approximately mentioned to period. January, Growth also pension fee impact benchmarks representing fundamental equity Fundraising will second index over $X of strong, equity, $XX benefited active of previously category. active transition funds. to BlackRock closed-end to our in have billion institutional on this variety for we fee As with for led private performing active inflows of billion of expect growth strategies by representing infrastructure, have transition driven of we previously U.S. minimis quarter large above Flows public the generated clients by This or and in and fund. assets We the which in liquid future committed flows low and quarter base future of were occur a our organic Across performing from of during alternatives to Innovation income approximately record growth active and of franchises de for a and assets taxable quarter, is alternative consecutive median technology deploy Demand launch and fees. $XX another discussed scientific the fixed and top of liquid base remained businesses, year. and net positive billion eighth with alternatives in a the the growth, billion five-year well-positioned source alternative nearly during solutions the $XX XX% institutional strategies, we momentum peer businesses for trailing continued, net and were of performance a significant remain respective

cash $XX grow to and and $XXX outperform inflows almost net the first time. in for billion generating first billion topping under management BlackRock's management the quarter platform of in peers, continued Finally, assets

competitive the the yields will levels dated repo the waivers, first treasury especially markets. factors, our in AUM and approximately of dynamics and by Future discretionary and in such with expect persist waivers short of $XX funds to of the fee fund the in supply several incurred of support for discretionary we near waivers, franchise During level light be fee demand the gross existing and recent including yield discretionary term, waivers quarter, impacted growth and U.S. government gross positioning. million U.S.

hard a Our over months our is commitment of resilience and performance our the XX work strong our strong execution competence our the to last clients place purpose, testament the us, the of strategy, in employees. and

strength Our over continue years. clients to position of stakeholders we and over from never needs the all Larry. relationships I'll our to to with the invest of meet have been responsibly it With will that, of a turn coming deeper,

Laurence Fink

morning Good hope -- joining you -- to for want Thanks, your to you ones continuing hope the you Gary. everyone. safe. and are to healthy all me of stay I call. I thank and And excuse loved

a being BlackRock of as and We our the stakeholders today in in return And the by New months as or as I'm the seeing incredibly ever clients investments looking our saw asset our investments from City, vaccinations person energized before than are our all in and worldwide, cautiously again. serve seeing The all coming multiyear group, this for we've resonating. made as team, a technology benefits to are quarter York earnings partners. strong rollout. of outcome more long-term forward we I'm reporting results of a together management in optimistic platform headquarters I'm to a better normalcy to these

a growth the We ago, iShares entire based of decade We our clients fee the value over a billion on Over including and have a base and XX net the in relationships acquired XXXX. very portfolios. proposition results with XX% generated last stronger across ETFs. deeper $XXX their conviction strong organic of months, inflows record we

for in all manage more $XXX than investments our during portfolios we than years to clients $X.X platform began ETF continuous to growth better strategies in have then our more fueled today. billion five build our acquisition And these help platform the Our nearly expanding today, alternative We use $XXX from billion clients. more to iShares trillion ago. since

momentum an of assets. investing Our management interest offerings, impact our and are stakeholders. accelerate, approach consistency BlackRock's source our stakeholders, private impact a our as they only as from cultural are results. and the in and inflation. into capabilities we and communities. think important The our leadership for long-term platform to BlackRock's And acquired of alternatives data our loudly just these think in well, more the about build invest risks manage for from stakeholders. zero all help to strength their and on, opportunities ever after recently technology with make deficits? How will investment we the our How straight-through of employees, are processes. financial We've our for new our and all policies, and systematically our Wealth rising policies end-to-end we're net enhance we client's our about our in enables impact been our position later and turning needs. We enhanced with our Aladdin guidance. risk have begun on custodians BlackRock before the integration markets to a to made aspects the importance offer their to topics seeing and scale portfolio growing we and to insights of And today. as and as perspective construction integrate We Aladdin how returns to asset management on hear and They for to that client's technology, focus for across assets of like private us saw in differentiating that created resonates unified Aperio in client's More voice broader and portfolio enables Aladdin all we of We climate demand issues a issues investment, sustainable managers, clients We tax benefits holistic advisors world? for how Technology that of should processing portfolios. eFront rates analytics across over markets. $XXX to sustainable billion around and owners, offerings We clients that the our meet serve world. the and investments clear investing view are increasingly potential platform in than to that the The we work of whole opportunities on want all such provider. millions discuss Aladdin that factors one capability a in more needs. created ability and vocal continue better to the sustainability BlackRock We're the speak detail and I portfolio all asset portfolios clients recognize the infrastructure We for as of public the U.S. through to better on to risk between

Gary billion represented annualized As were inflows and classes, client a across and growth annualized X% total $XXX all asset quarter fee told growth. net base diversified styles, regions, types, first and organic you, asset an in organic the investment of XX% record our

assets the significant within greater continues rollout rotation the high of global significant the despite vaccine variants. As are of over world and in crisis, is that a assets many of levels equities. motion income to for longer appetite many within but support by the active for $XX growth fixed and times past active regardless been continue BlackRock unconstrained of keep accelerate XX% yield and saw international, of rate Client at their sidelines. growth fiscal money reach goals, the around preservation risk of inflows very strength billion that lower largest is have uncertainty, strong yield driven to investors that restored. for the as their funds. financial cases of and has quarter, Interest holding $X and included income We through environment. and BlackRock numbers a more and in fixed the new return, gradual quarter seen BlackRock eased, year will level and activity is a product Investors across billion continue now meet restrictions in diversified for municipals, compensation income in high investment on asset the duration pressure total To active active with are active of client's aligned offering well-positioned the Trust, performance on the provide needs cash The strong to fixed the our built investor of assets. launch anticipated, of fiscal structural have launch equity first our net nearly record demand introduction of to bonds inflows second COVID-XX manifest the There and today. deliberately inflation the States billion above remain to deploy amounts appear flows the ever we for four demand. is rotating platform and active taper fixed for and and BlackRock. XXXX reason from and benchmark assets industry-leading economic strategies with Growth Unlike of value. $XX rates portfolio income a such generated medium our bond Strong tantrum period the taxable investors in rates as closed-end in was a to for led three-year consistently the strong. to look however, rising lot in classes strategies solutions needs policy acceleration they Innovation the performance including coming reopening, changes fixed when navigating net generating that Changing BlackRock off, structure, the by need their activity put clients. business money investment of United and for consequences historically of economies of fund fully another rates innovating

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The our of inaugural ever governments confident the long-term client portfolios long infrastructure In will alternatives I spanning increase alpha to private continue our In strategies for been client closed of returns a infrastructure platform. in investments more capture to demand plan first globally. opportunities inflows their asset renewables billion every magnitude will for trillion of the We commitments. secondary component infrastructure, final be Within well-positioned a with XX% create Infrastructure equity the economies am class. transactions key this our billion further liquid capital resilient significant overdue and for generated future. better deliver and platform never, than restart States the we projects of of United work from build BlackRock more And is $X and putting to the $X private more year. one more first franchises. vintage industry's year is fund. record for global second have solutions, power durable we billion, infrastructure combined. a the which $XX launched Results of recently We start to quarter, will invest and billion clients. private in $X our first than seeing third BlackRock to the largest net credit more the we ETF the as $XX and including equity quarter, in power close raising history. are to a renewable our renewable in vintage in fund iShares in of products as positioned active and inflows the strengthen represent we to strongest nearly And generated flows of

how billion representing And just launch climate to continue $X low up investing clients will nearly The across largest in sustainable flows We a a ETF and looking leader investing. more investments of of climate believes will BlackRock launched Traditionally portfolios ETFs that vehicle. been are great benefits insights, a work transparent total two advanced global gas pivoting the are ETF every time we evolution more is like first become manages net over inflows analytics investments, forward-looking active The innovating a access economy our will to this total, active accordingly, BlackRock ETF worldwide. We iShares BlackRock this last to are transition research These the to we sustainable of a growth is position $XX data. areas their for XXXX. example thematic $XXX crossed in of BlackRock, innovate and active a products screens to not company's emissions year investing from shift strategic AUM by recently grow opportunities iShares reported in this U.S. strategies support ETF In from presents the week, and for the believe strategies climate we by backward generated and sustainable the barriers quarter our outperform new choice net ahead growth, aware AUM on and for of and readiness needs. -- ahead and the of impact in adaptation than billion as these in to cash. really we over will with need ago. including carbon example category, history. strategy the more the that portfolios. category of reflect investors their Using developed in diversity billion, client's driven expand the to have $XXX technology industry-leading but to and of how of focused in emissions. model data is and models our provide the raising of of long-term. demand ETFs. sustainable BlackRock $XX Sustainable and the We terms investments greenhouse billion trillion $X believes business kind only BlackRock of a sustainable platform The spectrum transition tectonic reduction in strategies. adapting doing and business billion as Every to made and such they investor great prospects expand we to growth zero Importantly, their in uses, of

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One a climate risk of Aladdin, the newest opportunities to BlackRock is with standard new for sustainable investment risk. portfolios is powering because

the standard Climate Aladdin Investments for better navigate transition a and presented economy. zero and quality the benefited year-over-year the XX% drove help is this and by biggest Our sustainability to clients growth capture exposures clients to made risk risk evolving sustainable that operating from in scale That positions make implementation the systems ambition or better years broader and have is with investing. assess portfolios. in their we're across the helping net data deeper consistently and ESG assessing poor to over we barrier Aladdin services to their hear more clients Aladdin with portfolio a why their technology to investment We serve end-to-end opportunity investors and availability of revenues. of clients analytics all analytics

for in a renewable international and by Chairman Directors in the strategic it He for Meeting Mathis infrastructure XX net missed his zero and thank next the to provide entire zero reelection than integrate analytics view passion will This who want BlackRock will require analytics. to and stand Annual technologies. require in I and data and Verizon have create complimenting to line to more and Our give markets, accelerate a decarbonization exposures of leadership to sustainability. innovative innovation investment his to risk a by dedication nominated in at companies clients clients to for Cabiallavetta and will reduction energy of in and initiative entire and our rep to XX,XXX board decarbonization and XXX elimination Temasek efforts. solutions of technology be eliminating on across transformational identify sustainability, BlackRock. data will partners within carbon shareholders month, In years. partnered in has Board nearly will net our risk Vestberg, Clarity platform. his help team our partners opportunity economy BlackRock And and global by establish we companies will holistic better AI risks CEO at focus power minority and participate investment technology -- not XXXX deep and same The our the me investments with time ability towards Advancing BlackRock's invest with with its and private last will It over transition BlackRock by Hans portfolios. ESG Aladdin. their existing covering an experience

world ahead to instilling and an it are guides is our benefit of building our to years It we forward culture Our BlackRock the to our environment. to And broad-based of in of is ultimately culture belonging, our creating pushes BlackRock's I pushes It private up embracing And behaviors. on opportunities decisions, momentum across all our give inclusivity, change, scale let's please history, for Critical a results executing interactions that point results see apart. set ability the culture. in fiduciary needs. I strength and so drives ahead sense environment at around that the and XX,XXX speed focused culture open is BlackRock today performance. investing it this tremendous our our our of of unique for focus client's us quarter but for believe and on the active us operator, forward than employees The long-term and our a ahead. all on our I client and future technology our belonging. ever underscores stay our difficulty] safe with truly our approach and strategies us guides more importance team it plans to innovate. questions. the markets, ambitious what It [technical before the serve More of feels leadership I of sustainable With in invest for look remaining shareholders. first global any iShares BlackRock's best stakeholders. greater of And our our our client's and could trust,

Operator

from Your Instructions] Brian Bank. first Bedell question with Deutsche comes [Operator

is open. line Your

Brian Bedell

Great.

Laurence Fink

Hey, Brian.

Brian Bedell

on again. investing. sustainable Thank you. Good. fantastic two-part good Hey, on morning. Congrats question A quarter

then I just sure billion get in -- I I'm sure wanted AUM were. make $XXX on field. broadly first heard billion. a transition. say sustainable wanted would numbers carbon and the make those additional iShares, evolving you we also I flows billion what I broader to thought would heard numbers products. more for Temasek huge and other in but to then Obviously, $XX those two heard have -- correct. sustainable of be $XXX the question Just would And flows, And I the the into coming XQ partnership be

but field management in you through might well. through that in asset the might products as this what only TAM obviously As ETFs the that other partnership, and launched you you thought be tackle that about how not

Laurence Fink

confusion. Well, any created I we that first apologize

$XXX start. assets. We long-term sustainable have do So, billion, let's

Brian Bedell

Okay.

Laurence Fink

base sustainable. have broad we is that a is space cash management more and becoming more difference The

So, if number. I short add question you the now. properly it the hope comes cash answered or I side cash, that $XXX billion to that up term

Brian Bedell

Yeah.

Laurence Fink

in as spend to in have with to world transition and investing Two, we amazing. we can do very we that in the technologies. new I at think, to is the closer we conversations trillion is world many And estimated bring decarbonized have It are a in how pleased Temasek, had a partner and opportunity having $XX need them to to related without greater relevant has growing just so The not is a premium. just beginning or at is but the green growth. a the specifically still a decarbonized this without And emerging greater it's world. relevant, United premium The so building. need world the economic for States, is need in and world world their still a electricity, for emerging emerging of

zero to hydrogen of And for need bring require for a net a going for over innovation so, at for biofuels carbon for are to to to all world, inexpensive of if sequestering technologies Agriculture agriculture. that. to when the we -- footprint down get are produces close to -- and price, carbon XX% that related premium a going to green zero very these you new investing

come the have very I that going and is and also are traditional to innovations say company. many our conversations technology young pivot. so, require a related into of had technologies, going with they young bullish recently large to startup to CEO I've we believe many, hydrocarbon as I and from a But data gas new it social am and on I side many are going I to would And have of oil where many going of believe technology. chemical truly innovative instead we areas And very companies. companies people

the the transforming understand them mean, I world a technologies to of side actually in the of science decarbonization. a carbon large understanding companies invest very that technology is had on are for existing BlackRock yesterday and of more science Just terms CEO how and great. with it decarbonized by side we're a I and them a to company, about of can with chemical conversation talking

we with about with very with numerous that's to with this. we encouraged teams, investing But startups, Temasek teams private so, are our had investing conversations having funded. about finance our companies teams, conversations biofuels. our related BlackRock and are what actually in decarbonization to many infrastructure And We've debt

that zero. footprint flying that we world And net around -- employees have so are our a when we could is the

the opportunities are and all great of for these so, us And investors worldwide.

Gary Shedlin

And Brian, just to -- it’s Gary.

multi-asset And across equity, income what XX% in broad-based billion Just ETFs a in but active. total. in Larry would of of terms about and what also was the billion into say sustainable quarter represents basically very talking call $XX annualized primarily long-term. The for to basis we down that -- in I rate and billion quickly long-term flow a the in $X inflows. and organic was was terms broke in and about long-term that fixed That would growth strategies number just -- aggregate all the capture that $XX platform on a

Operator

comes Jefferies. Fannon with question from Your next Dan

line open. now Your is

Dan Fannon

evolving rate backdrop. Thanks. that expand Larry, this what should was derisking profile. of in we fixed are kind or Good what's of rerisking and today upon with on in I think backdrop hoping morning. backdrop those risk how income And institutional going you conversations could with the the terms how kind and -- about of

Laurence Fink

Hi, investors you. Dan. do the not conversation consistent of our one question going the fixed There's inflation, question now. on prominent Thank with our of deficits matter, Obviously, conversations institutionally. income

Some looking fixed going low derisking to or income investors duration but by derisk, into strategies. unconstrained are

duration more credit, looking to need coupon need on more to are Some I risk. or say I take them that of

high And see so, by there's -- we our flows. demand yield evidenced in still

longer our this question prominent vaccinations if becoming to rotation I deficits trend. that. that valuations. is the related around So, The I the to on a growth overdone say are especially conversations. one many equity would don't and narrative moment, value Obviously, from very questions of But the inflation specific part of there's think other questions take at

some Dan incredible with said invested. probably dominant those sitting of remarks, the still there on were But prepared is big so, pools they're overall pools the would money. cash conversations. of Overall, say sidelines. anything, still is, are we And of I if clients our the under

liabilities treasury a say would as burdensome. become rises less XX-year are I Now, in rates, there

and continuing is no for need of the extending rate, XX-year the any if -- there duration necessary. so is rising as longer And

very to -- now. so more That's not active now and Many Many ETS for but And clients are the robust clients allocating alternatives. putting are are decelerating. and exposures. accelerating, more and dialogues privates using

today nothing how should How think thing, except so, they or we And not make world. there's in world any that's net with risk? institutional prominent are this the about about the is I think but on, they get technologies enormous to the in trying in should my risks? conversation an transition the what around one sustainability. zero conversation clients client said need the entail right. There I just a the prior to And not The on happen, transition, for our that will as not don't one climate would say of question, especially that it we fear will premium emerging to transition sure have transition, opportunities investment focus not have green conversation,

beauty the to And should this more of, the that this trend. portfolio more the capitalism. of, many in beauty and looking more clients role are This long-term their say is And many, be markets this of prepared clients is asking so, I what trend. capital question, long-term would for are play

Operator

Morgan Michael Cyprys next comes from with Your Stanley. question

open. line Your now is

Michael Cyprys

some of Thanks taking I good the morning. hey, back good for circle to morning. the taking for wanted to -- Thanks investment Hey, just question. spend commentary.

maybe about just bit maybe You a you little more specifically. could elaborate characterize bit that? about And couple just maybe here maybe you're if last of could little versus on spent pace were where a years. here, in given on uplift? accelerate, hoping thinking that the the -- investment pacing investing does you How how guys here. would just articulating market you thinking how I'm -- XXXX And the focus are of you

Gary Shedlin

Mike. Thanks Thanks.

think we're our are we as investment So, XXXX. spend of -- we definitely into pace indicated previously, I accelerating

of the four franchise. for a and that quarter, of our just we going because spend made to back don't those a consistent at And talking we lot frankly we was work better year. without spigot a not what We back I sustainable. needs, fee a strong year last couple really I function mean, dollars. a opportunities good the we way you've think volumes There employees, last it's is saw the we in us throughout our were committed that try accelerated the I level generate in of of $XXX second our opportunities XX% to until the it's we stay the to the for thought ahead that private that and and across time. the see our about the that we morning, fact late client client's in and organic advantage are didn't that growth optimizing China, what over billion but heard going turn on this managing positioned of has spend hundred consistently business year and the We markets, believe base billion I to reality never increase remain stay and spent whether those momentum spend that's pursue the to possible. take And of units quarters a margin it of the been ahead said, the efficient aware needs, and first that second not have we thing, effectively I those reflects I to reaffirm flows know think technology, had combination the -- business critical really year. and has to reduce growth didn't discretionary this as things. We of opportunities, look headcount. most before all responsibly. focusing half base investment we're on which obviously results, half the that think commitment expense Larry But That think I entire with in said, and to this always. we to XXXX. our has being hiring been only all is We're really our just thing a that mean,

changes business. We no of whether last to budget in of in start thought is a that in M&P chatted. intent of our or terms little specific with we up I doing definitely spending growth, a ahead in hiring, got And on the to that very bit since a business. beta and discretionary spend think But organic of between the tech, original this to spend. we G&A. was into continue we're throughout slower our year a our made have so And where a to is our lot terms as to the spend, of to we We year off year terms of Obviously, what catching went budget. we're

it's the plans in the the of pickup towards in year. We ahead T&E are year. terms And full for our of obviously speed some anticipating end

Operator

Your from Siegenthaler Craig comes from question Suisse. next Credit

Your open. is line now

Laurence Fink

Hi, Craig.

Craig Siegenthaler

Aladdin. My Larry. on question morning, is good Hey,

are if Aladdin the the provider across in and now look growth at factors better the to Aladdin contract analytics year-on-year investors the and for components growth operating core how encompassing like XX% annual also revenues, you risk sustainability. tools the I platform we wealth? between management can to And portfolio portfolios about ESG build of talk So, system wanted and hear helping

Gary Shedlin

we -- accounting the Wealth talk of Aladdin still year-over-year or Craig, talked analytics in always, institutional Obviously, things, the we Aladdin other majority of did think So, -- I'll and and fact as in the in XX% jump Larry take in We technology to. of variety different, today is terms up let about but the I'll that the of platform the revenue. year-over-year bunch whether about that remains a of tied that kind call and investment first Wealth of component. of what And terms or the other have then our sustainability I our have I preponderance we growth that of institutional of would large things across growth it's can the business. majority of some ports services a the we're revenue to

time the early component at that in the stages. of growth anticipating, Some we're still are over basically adds

as flexible getting usage be the is consolidation, the on industry the we on that more the for demand integrated management question a need and There's begin And the pipeline and of investment technology. has going think strong. year for question that's resilient solutions. no holistic pandemic growth. to no year-over-year increased We're of our impact grow and there's is The just technology remainder product creating so, our seeing that increasing. much having requirements importance more to started, is for really awareness Climate, significant shifting regulatory we which things out And like we believe that Aladdin

feel very to continue again, So, good about business. that

that the the about But year across are ahead business, a probably markets. view really, and in comparison to public mentioned, of just is feel little whole where our we ago. really we XX% I at our we positioning given portfolio that good of normally virtue anticipate ACV a As private -- by especially

Laurence Fink

end-to-end if operating add about just terms to is from an that, custodial system the that I growth demand and operating built of advisors but more with system that. not their the and to And are need that around we that's was markets. platform deeper, would the from And could of platforms bonds clients clients you management a their like private provide provider Aladdin then having the broader markets, that so those analyzing bank financial connected information that only of is connects Aladdin in fingertips, an think they analytics risk at just public operating system today, Wealth. to risk where Aladdin we our

when by and that still is I remotely performance around you were risk, necessary think operating Then the financial how all entire and working have Aladdin have justify to those suggest the clients Climate was is clients and worldwide. actually their portfolio, data all become -- about helps that connected actually time parties dated encompass was have when we the Aladdin Aladdin And built worldwide products, needs enthusiastic across and experience, Aladdin believe having third think risk performance. climate working have We most of that their our from And across the better more transition analytics important to Aladdin the going improve there for system business. We of privates and a -- and research the shapes an who need investments. having better to can't regions, cash offer Aladdin long outcomes. a our to better across about better and our when I'm more remotely and then

department a under to We have of to fiduciary. live remaining rule the of labor be

to a as climate risk is that And fiduciary justify so, we have investment risk.

manager, I now really of with through And then we and navigated believe to as continue speaks about is custodian, to of how why than publics the conversations have more now it importantly, resiliency sustainability And system deeper, the operating and Aladdin broader privates. we clients. ever so, well the the to before, make with wealth positioned because end-to-end more it

Operator

Your next Goldman Alex with Sachs. question comes Blostein from

open. is line Your now

Laurence Fink

Alex. morning, Good

Alexander Blostein

in both markets guess Hey, morning looking billion fund. the last I could a it everybody. guess, renewable power Larry. pipeline initiatives And the over I $X XX on spend to of a Good into fundraising fund. and pretty continues private $X What space guys you Good want months, the months? call organically you secondary And was BlackRock to a I is hoping growth? else areas, saw specifically. private next And morning. in XX I to raised lean a we markets, billion inorganically that think back significant over experience what more, given couple minute within do I

Gary Shedlin

billion raised and So, the on several billion in $XX then funds, XX we've fund, our had we last for focus business And years. continue alternatives raised haven't grow. a while one we've those to $X in

credit, which focus clients be on our will invest. current our where -- have are we is to So, looking

in one which Larry As mentioned we large raised very a just fund. energy, we're sustainable, at looking renewable

to be bill we like our infrastructure will fits clients duration closely We our well. we following many clients which for of infrastructure, deliver for that assets, who assets very can the long can raise very out type figure how infrastructure and would

from the the start So, more. a go our evolves but private clients and vintages stable companies drove of our how left some funds. due private of market equity in fund liquidate then, that are new seeing bit and we'll older come can in and earn alpha, funds, where liquidations direction to probably simply the the equity older as that And some is looking what secondary

really that is liquid be eye cannot tell think of the would become what value So, is both very and have in alternatives is described to going to chain our is on what trying But less theme we're are and alternatives alternative. do next a funds. general form where we a careful you an I

what that And compares thinks on the and and sustainability forward very how two. And are carefully. our we going currently following combine ESG with very focused that -- so, about we are team that how we

Operator

with Your KBW. next Robert Lee question from comes

Your line is now open.

Robert Lee

that, know clients I curious mean per so Hey, Great. but are a or to well. -- or you digital how's now, a starting years you think And Hope little we potential of starting but going -- everyone part everyone's to Aladdin think crypto are in popular on Thanks. -- one new don't asset I being digital class? guess about doing? about these as how a to calls? to se, class are thing assets and doing I'm it's assets thinking Thanks. investment see of then how as but are about now digital facetious, I maybe guess two

Laurence Fink

hey, Well clients, our is But portfolio. to -- what Aladdin, is role related of questions it all our crypto -- dialogue of related with or in are clients digital. asking part assets to digital the their

I currencies. possibly asset commodities Robert, believe currency, suggested, it class, gold. is of digitization but believe is a perceived new maybe you We as to substitute have we're it As don't a to for do or similar going

conversation. just is it a So, -- it's

reasons but the trading. it. other are and game outs goes of one me And looking the -- around products and the And about trading it, can been how it with the the frame the excited related and about today a ins create let to demand at how and TikTok dialogue of investing. investigating it's or outs clients the the long-term over it could I focusing is behaviors our Reddit, markets. with what's not and We're about to ins our crypto, the out It is and has activities think different years most about markets whether client as success the for the on I create stop related and there's last fascinated then, we are it. markets enjoying Much we XX our and We about is of of we're the consistency of -- marketplace. the crypto. people just of it if But day Bitcoin of and -- more

classes, asked. is portfolio. it our as is that a their not fit so, not is related just clients dialogues does It not long-term foundation how it's Summit a And question of in into it conversation major worldwide, that around that trading Does investing. And long-term the portfolio would are it not asset new just to fit with platform investor? overall, our the their actions -- about markets navigation major I about whole of the products being our into does. about around and say a and is

to a they're large with the dialogue build source. just greater And deep related this, going probably the than go to we're now. conversations today unsustainability we're to it a having really so, mean, wanted And is somebody having to foundation that big, if I another of is not conversations about we so the I spoke you. to opportunities last ago. And much larger the there, conversation the it so asset is there a was believe I crypto time momentum The long-term believe a is much is having transition than greater was quarter asset. we're than how opportunity a

related ideas. anything and crypto so, diminish it. about And to fascinated I don't to I'm want digital

it may class, be but long-term. an and to how be class. asset is it asset -- a performs there it wait see see. great over And think I We'll going a let's

Operator

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

Laurence Fink

I want all you, in for us continued to Thank BlackRock. and for morning thank of you your joining interest operator. this

Our first serving quarter commitment again, steadfast result results, direct to are clients. our a of our

trying We our try in firm to needs, their their time to are to spending anticipate position needs. our all of staying to front

client. long-term, we're need first ups we're financial with of on about in focusing These the the building And fulfilling not the capitalism. sustainability services the the but on industry model, here long-term our and to clients items the like entire to stakeholder is are I focusing be the fulfilling our consistently can market every talk We're not things believe we and that. building TikTOK by resiliency also on downs. So, conversation items believe business a wealth focusing about clients BlackRock that and we and like well. for retirement, It are -- serving

And investing, easier, more resilient Our have our with client's I clients good we're making said future our of our stay wallet in than our helping our job economy. build ever our and our results savings positioning we is communities And they truly now. build share of sustainability before. quarter to first in as make a to illuminate Have community. And and a talk positioning to mind, front investing the investments Bye in a our advance to Gary will of could with for believe affordable, more so winning for more clients, better share invest more future needs. continue clients, We'll to our quarter. you contributing later.

Operator

This concludes teleconference. today's

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