BlackRock Financial Planning & Investment Management Cameron L. • Courtney H. • John M.• Marina D. • Matt P. • Ryan M. • Ryan W.

Brief History 1988: Founded by The Blackstone Group 1995: Became subsidiary of PNC Financial 1999: Went public $165 -$342 billion in assets from end of 1999 - end of 2004 2006: Acquired Merrill Lynch investment managers 2009: Acquired Barclays Global Investors Today: Leading global asset manager with $4.89 trillion in assets

Company Headquarters - Company URL Headquarters: Midtown Manhattan CEO - Laurence D. Fink 135 investment teams in 30 countries Estimated 12,000 employees www.blackrock.com/investing/

Publicly Traded? BlackRock went public in 1999 selling at $14 per share Earned a total of $165 billion assets under management by year end 68% increase in AUM since 1994 Ticker Symbol: (BLK) Traded on the NYSE Daily Range: 358.29 - 362.61 Has outperformed the S&P 500 since it’s been public

Has outperformed the S&P 500 and the Asset Management industry since 2006 http://performance.morningstar.com/stock/performance-return.action?t=BLK&region=USA&culture=en_US

YTD Performance Steady volatility (Beta=1.65) 52 -week range: 280.55-376.65 January: Oil prices drop and China’s economic slowdown June 23-27: Brexit caused a panic and brief drop August 30: Second highest peak in 10 years selling at $376 per share Shares are currently at all-time highs BlackRock's Koesterich thinks the link between oil and stocks makes little sense. "It's an overreaction and misinterpretation. Oil is going down because we just have too much of it. It's not telling you anything about the state of the economy," Koesterich said. -Second time in the past 10 yrs it has hit a high of 376, last time was in february 2015 - January 2016: "Clearly this was an awful month. The selling was more about sentiment than a change in the actual fundamentals,” -Russ Koestrich, global chief investment strategist at BlackRock

A Closer Look BLK 6 Month Performance Compared to the Dow Jones and the S&P 500 https://www.google.com/finance?q=NYSE%3ABLK&ei=bXjqV5H6G86_et-wtaAD

What does BlackRock Sell? BlackRock currently has 4.7 trillion Assets Under Management (AUM) with a market cap of 49 billion, dominating the market share Main “Products” Include: Mutual Funds iShares Exchange-Traded Funds Closed End Funds (CEF’s) Between Mutual Funds, iShares Exchange-Traded Funds and Closed End Funds, BlackRock has an enormous and diverse option plan for clients totaling 1,053 different funds

BlackRock offers roughly 647 different mutual funds Exposure: Commodity Equity Fixed Income Multiple Asset Funds Strategies: Active and Index College Savings Income-Generating Managed Volatility Navigating Bonds

iShares ETF’s BlackRock offers 333 different ETF’s to clients Exposure: Equity Commodity Fixed-Income Strategies: Currency-Hedged Fixed-Income Core Beta Smart Beta

Closed-Ends Funds BlackRock offers 73 different CEF’s to clients Exposure: Equity Fixed Income Strategies: National Municipal State Municipal High Yield Floating Rate Multi-Sector High-Yield

Growth Strategy- Acquisitions Notable Acquisitions: 2006- BlackRock acquires Merrill Lynch Investors Valued at $9b Brought BlackRock’s assets to over $1t Purpose was to acquire more equity, multi-asset and alternative mutual funds 2009- BlackRock acquires Barclays Global Investors Valued at $13.5b Brought BlackRock’s assets over $2.7t Purpose was to expand global presence and gain exposure to ETF market through iShares

Growth Strategy- Organic iShares is the focus of BlackRock’s growth strategy: BlackRock is the leading provider in index strategies (ETFs) Over 700 different ETFs, total AUM of $1.2t TF AUM has grown over 200% since 2009 Control about 40% of ETF market

Growth Strategy- Opportunities BlackRock is focusing on growing the overseas ETF business: BlackRock dominates the US market, but overseas is up for grabs Tough for overseas investors to gain access to ETF’s Targeting the UK, Netherlands, and Switzerland Just over $100b in South America/Asia, compared with $573b in the US BlackRock wants to target financial advisors and private banks: BlackRock ETFs are not a large part in high net worth portfolios or large investment portfolios Need to market their products to high net worth advisors and private bankers Starting to target pension plans and retirement funds

Blackrock’s Current Market Share Blackrock only had 204 billion dollars in AUM in the year 2000, tremendous growth since then. Today Blackrock is the largest in its industry’s market share with 4.4 trillion dollars in AUM. The AUM for the largest 300 US money managers is estimated at 42 trillion dollars giving Blackrock a 10.5% total market share S&P Capital predicts a growth in AUM of 7.5% (at this rate they would lose market share). The market is expected to grow with baby boomers making last minute contributions to their IRAs, making the next few years crucial to their control over the market. Top Five Competing Firms 1.Vanguard 2.State Street Global Advisors 3.Fidelity Investments 4.JP Morgan 5.Bank of New York Mellon

The Jump to the Top of the Market Share During 2008 Blackrock decided to buy Barclays Investment Group for 13.5 million dollars. This Merger increased AUM by roughly 1.5 trillion dollars and made the largest asset manager in history.

Current iShares ETF War Black Rock has just over 1 trillion dollars managed in their iShares fund. This is down from 2009 when they had captured over 45% of the market share They still currently hold more market share than both state street and vanguard combined

ETF War Vanguard capitalizes on smaller retail investor from local business due to their interest in lower expense fees. These retail investors make up 1.8 Trillion dollars of the AUM market share. Has stabilized in the past 3 years however competition is still fierce "Every basis point that you cut a fee impacts revenues, but we don't really look at that – we look at the profitability of our ETF business over the long term“ - BlackRock executive Frank Porcelli

Relative Performance World’s largest asset manager with $4.89 trillion in assets under management Biggest competitors: –State Street (STT) –Vanguard Together, 3 companies account for 80% US ETF Market 70% Global ETF Market

http://marketrealist.com/2015/02/blackrock-positioned-benefit-global-etf-growth/

U.S. & Global Markets Largest player in and outside of U.S. industry Controls around 38% ETF Market (U.S. & Global) Total ETF offering split 70:30 equity and debt composition Considered ideal in any long-term risk-averse investment

http://finance. yahoo. com/news/does-blackrock-compare-peers-220551822 http://finance.yahoo.com/news/does-blackrock-compare-peers-220551822.html

The Future of BlackRock Currently the worlds largest manager of Exchange Traded Funds (ETF’s) They project Smart Beta ETF assets will reach $1 Trillion by 2020, a 19% annual organic growth If they continue investing in Smart Beta ETF’s then they too should see expediential growth

Major Risks Because these ETF’s are traded on the open market they are exposed to market risk Crucial that managers do their research and chose an index with a promising future The recent growth in the ETF market has drawn in lots of competition Must continue offering low cost ETF’s with positive returns to keep their top spot in the market

Questions?