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

2. 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 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

3. Company Headquarters - Company URL
Headquarters: Midtown Manhattan
CEO - Laurence D. Fink
135 investment teams in 30 countries
Estimated 12,000 employees

4. 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:
Has outperformed the S&P 500 since it’s been public

5. Has outperformed the S&P 500 and the Asset Management industry since 2006

6. YTD Performance Steady volatility (Beta=1.65)
52 -week range:
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

7. A Closer Look
BLK 6 Month Performance Compared to the Dow Jones and the S&P 500

8. 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

9. 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

10. 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

11. 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

13. 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

14. 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

15. 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

16. 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

17. 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.

18. 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

19. 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

20. 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

22. 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

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

24. 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

25. 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

26. Questions?