BlackRock is a multi-national investment company based in New York. It was founded in 1988 as a risk management company and is now the world’s largest asset manager. As of January 2022, BlackRock managed US$10 trillion in assets. The company manages a wide variety of investment vehicles for individuals and institutional clients.
The company employs many former government officials in its senior leadership. For example, Deese, a senior adviser to President Obama, and Adeyemo, the deputy director of the National Economic Council, are among the company’s leaders. These people bring a broad range of experience to the firm, from asset management to government relations.
BlackRock offers a variety of investment strategies, including separately managed accounts, private funds, and alternative investments. Individual investors can choose from a variety of asset classes, such as fixed-income, global equity, and regular equity. They can also opt to choose a multi-asset strategy. The firm works primarily with individual clients, but also sponsors a wrap fee program for advisors. They work with each client to determine their personal investment preferences and risk tolerance. They will also consider their income needs and any investment restrictions.
BlackRock’s billions of dollars under management make it one of the world’s largest companies. It has more assets under management than the GDPs of all countries except the United States, including China. Its investments in various industries include oil and gas, retail, big banks, and even the manufacturing of military weapons. As such, BlackRock’s investments are incredibly influential.
As of midyear, BlackRock had $8.5 trillion in assets under management. Its holdings include many of the world’s most prominent oil and gas companies, such as Exxon Mobil Corp. and ConocoPhillips. In addition, the company owns stakes in a number of other fossil-fuel companies.
BlackRock earns most of its revenue from investment advisory and administration fees, which are usually based on a percentage of the assets under management (AUM). This includes equity, fixed income, and multi-asset alternative assets. It also offers wealth management and digital distribution tools. In Q4 FY 2021, BlackRock’s technology services generated $339 million in revenue, or 7.5% of total revenue. This was an increase of 16.9% over the prior year.
Despite its massive assets, BlackRock’s investments in fossil-fuel companies continue to fuel a global climate crisis. Considering that it has assets equal to the third largest economy, BlackRock has a responsibility to lead the way towards a just transition to a clean energy future. But it is failing to take any action to make a meaningful impact.
BlackRock is the world’s largest asset management firm with over $8 trillion in assets under management. The firm operates 120 mutual funds and an extensive collection of exchange-traded funds through its iShares unit. The funds are comprised of many different asset classes and geographies and employ analysts in 30 countries worldwide. BlackRock’s investment philosophy is smart beta, which is an index-based investment methodology that seeks to make decisions that align with a client’s goals and risk profile.
