Whether it's sustainable investing and activism, regulation influence on behalf of clients, or a central risk analytics tools that have been relied on by the Fed in times of stress we're always thinking about what we can do to serve our clients better.
BlackRock stands out in its dedication to using technology as a resource in all of its work. From its efforts to bring in top talent in technology and in subsets like artificial intelligence, BlackRock is at the cutting edge of developing new ideas and new resources to better fulfill its role as a money manager. Former Analyst at BlackRock. I think work-life balance is a very difficult thing to achieve for individuals in the financial services industry, and BlackRock did better than most other financial companies in trying to make sure its analysts were able to have that balance.
Be the first to mark this as helpful. In the second quarter, the firm saw strong client demand for ETFs, with over half of net inflows here coming from fixed-income and sustainable ETFs. BlackRock is a leading provider of sustainable ETFs , but in an effort to put sustainability at the center of portfolios it looks to bring enhanced climate risk models to investment managers.
That's where its technology comes into play. CEO Larry Fink says BlackRock's investment platform and portfolio construction expertise put the firm in solid position to meet its customers' changing needs, and it's all made possible by Aladdin, the company's investment and risk management technology offering.
It gathers data from public markets and private markets, which allows investors to view their portfolios -- of both public and private assets -- on a single platform.
This is the same technology BlackRock uses for its investments, and it's evolving to expand the company's climate offering, too. The company has been developing Aladdin Climate, a technology solution for investors looking for climate risk analytics. The tool measures risks at the asset and portfolio levels and gauges the impact from physical risks like extreme weather, new technologies, and energy supply. As part of this platform, BlackRock formed a partnership with Baringa to improve its climate analytics and risk management tools.
The partnership will combine Baringa's climate transition risk models with Aladdin's financial and physical risk models to help investors customize their climate risk exposures. BlackRock continues to lead the pack when it comes to portfolio solutions.
The firm has done a splendid job of building out its iShares ETF offerings. All the firm has to do is package different securities in a new way, add a unique name to it, and the find the right market.
The beauty of iShares funds is that they concentrate on everything from preferred stock to home construction and biotechnology to emerging markets. When Fink was asked his opinion on the hordes of investors dumping loads of money into ETFs, his response was simply that clients are no longer looking for products. Mutual funds, closed-end funds, college saving plans, and retirement income, for which it has its own name, CoRI, are just a few of its other offerings. BlackRock aims to offer unique products.
For example, saving for retirement can be tough, but its CoRI retirement indexes make it easy to plan. These are a series of age-based indexes that help you plan for retirement and determine how you'll generate funds post-retirement. Each index allows you to evaluate, up to ten years prior to retiring, how much income your current retirement savings could generate for you. This helps you determine how much you'll really need to retire and, with this knowledge, you can plan ahead for smart ways to save for retirement.
It earns investment management fees, performance fees on certain portfolios , and sometimes even securities lending revenue. The firm also generates revenue by offering its proprietary investment system, Aladdin, as well as outsourcing, advisory and technology services, and risk management to institutional investors and wealth management intermediaries. The beauty of this platform is that it can widen or narrow from a broad view of firm-wide risk to homing in on a single trade in no time at all.
For example, the ability to monitor stocks and European markets was added in to the platform once the company bought Merrill Lynch Investment Managers. Fink goes as far as to state that nowadays, using technology is no longer a differentiator. I have always known that betting big on technology and client satisfaction was the way to rake in huge returns. This transaction made BlackRock one of the first top financial services companies to purchase a robo.
And then, once it had the robos in hand, it took it a step further and leveraged them to help distribute its iShares ETFs. Taking a cue from its extraordinary success with Aladdin, BlackRock continues to identify other ways, besides robos, to run several aspects of its operations. For example, its active equity investment platform relies more on lower-priced strategies based on quantitative computer models.
By the time Deese and Adeyemo got to BlackRock, they already had experience working in government. Deese was previously a senior advisor to President Barack Obama and served as deputy director of the National Economic Council, which he is now set to lead under Biden.
Adeyemo, who was appointed as deputy Treasury secretary in the Biden administration, had previously worked as Obama's senior international economics advisor. While at BlackRock, one of his roles was Fink's interim chief of staff. Pyle, who has worked as BlackRock's global chief investment strategist, had also previously worked in Obama's administration by the time he started at the asset manager. He was a special assistant to the president on economic policy matters and also worked in the Treasury Department and the Office of Management and Budget.
Thomas Donilon, who is now chairman of the asset manager's research arm, previously served as national security advisor to Obama. Donilon's brother, Mike, was Biden's chief strategist during his presidential campaign.
Read more: Joe Biden's Cabinet-in-waiting: Meet the people in play for a new administration, and Biden's picks for key roles like Secretary of State and national security advisor. BlackRock has hired other former policy-makers and regulators. Dalia Blass, a longtime former Securities and Exchange Commission official who most recently ran the SEC's investment management division, joined the firm this week to lead external affairs.
Blass now oversees the firm's global public policy group and social impact and corporate sustainability teams, along with a new group formed to research stakeholder capitalism, according to BlackRock.
She left in , according to LinkedIn. The FMA unit, which is effectively BlackRock's consulting arm , separate from its investment management operations, had a significant role to play in the US government's coronavirus pandemic response this year. There was no process where other asset managers could have bid for the job, according to a Wall Street Journal report.
After an analyst said on an April earnings call that investors viewed BlackRock's mandate as a "bailout" for his firm or the exchange-traded fund industry broadly, Fink called the question "insulting. Read more: Inside BlackRock's powerful consulting arm that's made the most influential money manager an advisor to world powers. The investment manager had been there before, defending its connection to the Federal Reserve.
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