trusted to manage more money than any other investment firm in the world

138 Pages·2015·5.04 MB·English

TRUSTED TO MANAGE
MORE MONEY THAN
ANY OTHER INVESTMENT
2014 ANNUAL REPORT
FIRM IN THE WORLD
We built blAckRock on:

—
SupeRioR inveStment
peRfoRmAnce
—
RelentleSS client focuS
—
A DiffeRentiAteD
inveStment plAtfoRm
—
GlobAl AnD
locAl StRenGth
—
RiSk mAnAGement
& AlAddin®
Statement on cover is based on $4.65 trillion of
assets under management as of 12/31/14.
As the world of investing grows
increasingly complex, our goal remains
the same: to deliver superior value
to our clients, our shareholders and
our employees.
BlackRock has the world’s foremost
combination of investment strategies,
risk management capabilities and
client-fi rst culture to create the right
solutions for our clients and to perform
in all market environments.

this is why BlackRock is trusted to
manage more money than any other
investment fi rm in the world.
supeRIoR Investment
peRfoRmance
—
Our primary responsibility
is to generate superior
investment performance
on behalf of our clients.
% of assets aBove BenchmaRk $35B
oR peeR medIan foR 3-yeaR peRIod
taxable active
fixed Income 91% In actIve
tax-exempt active 70% net Inflows
fixed Income
scientifi c In 2014
86%
active equity
fundamental
48%
active equity
0 20 40 60 80 100
delIveRIng supeRIoR Investment peRfoRmance foR ouR clIents
BlackRock is positioned to leverage our We have a cultural principle that great investors,
deep local and global knowledge of markets, with their own investment processes, perform
intellectual capital and best practices across better when they have structured mechanisms to
teams to generate alpha in active portfolios share thoughts, perspectives and information.
and manage tracking error in index portfolios. The expertise of our investment professionals
Our 120 investment teams in 15 countries is supported by the global resources and
all share a common operating system and capabilities of Aladdin, our proprietary risk and
performance culture. investment management platform, the BlackRock
Investment Institute, which harnesses the vast
Our investment platform is built upon distinct intellectual output of our investment teams
teams with autonomous investment processes through a global knowledge-sharing platform,
that manage a wide range of portfolios across and our Risk and Quantitative Analysis team,
the risk/return spectrum. Our investment teams which performs intricate risk management
benefi t from having fundamental, model-based and quantitative analysis across all portfolio
and index investment strategies managed on a investment activities.
single platform. Fundamental teams use tools
developed by model-based teams, and model- We strive to earn and maintain our clients’
based teams have access to insights developed trust, by seeking to deliver superior investment
by fundamental teams—both of which are performance in the portfolios we manage.
enhanced by our index capabilities and insights.
2 BlackRock, Inc. 2014 annual RepoRt BlackRock, Inc. 2014 annual RepoRt 2
— —
Our team-based approach Our culture of knowledge
to portfolio management sharing and collective
enables us to address our intelligence enhances
clients’ investment objec- our ability to exceed our
tives and challenges, while clients’ performance
rigorously managing risk in expectations.
their portfolios.
98 $146B
%
of Index equIty and In Index
fIxed Income assets
net Inflows
wIthIn oR aBove
In 2014
toleRance
foR 3-yeaR peRIod
3 BlackRock, Inc. 2014 annual RepoRt 3
Relentless clIent focus
—
We are a fi duciary
to our clients.
Their interests
always come fi rst.
manage 4,000
+
$4.7t
InstItutIonal clIent
of assets RelatIonshIps

on Behalf of clIents
focused on secuRIng BetteR fInancIal futuRes foR ouR clIents
BlackRock serves a diverse range of clients, create the best combination of strategies
from global institutions to intermediaries to help clients achieve their desired invest-
to individual investors, all of whom trust ment outcomes.
BlackRock to help secure better fi nancial
As a fi duciary, we represent each client fairly
futures for themselves or those they serve.
and equally and take a leadership role in
Our specialized client teams are experts in advocating for their best interests. We work
the investment needs and challenges of our on behalf of clients to promote fi nancial
clients. They engage in consistent dialogue reform that increases transparency, protects
with clients, providing insights and advice on investors and facilitates responsible growth
markets and industry events, and look across of capital markets.
BlackRock’s diverse investment platform to
4 BlackRock, Inc. 2014 annual RepoRt BlackRock, Inc. 2014 annual RepoRt 4
— —
It is our mission to drive We deliver an unmatched
results for our clients, client experience, based
protecting and enhancing on understanding each
the value of the assets client’s specifi c investment
they entrust to us. objectives and tailoring
multifaceted solutions.
Retail
clIents In long-teRm Base fees
100 By clIent type
+ 35%
countRIes 30%
35%
Institutional
iShares®
5 BlackRock, Inc. 2014 annual RepoRt 5
a dIffeRentIated
Investment platfoRm
—
BlackRock is the only asset
manager to offer active and
index capabilities globally
and at scale, on a single
platform — across equity,
fi xed income, multi-asset,
alternatives and cash.
equity fixed Income alternatives
multi-asset
56 32 9 3
% % % %
long-teRm assets By asset class
a full Range of Investment solutIons
BlackRock offers clients a full range of As the nature of our clients’ investment challenges
invest ment solutions across asset classes changes, so does the nature of the solutions
and geographies, extensive market intelli- they require. Increasingly, a single investment
gence and industry-leading risk management product, asset class or style does not provide a
and analytic capabilities. Our investment suffi cient long-term solution. The breadth
management teams span Alpha and Beta and diversity of BlackRock’s platform enables
Strategies, including equity and fi xed income, us to work closely with our clients to create
Multi-Asset Strategies, Alternative Strategies the most appropriate blend of solutions to solve
and Trading & Liquidity Strategies. their most diffi cult investment challenges.
6 BlackRock, Inc. 2014 annual RepoRt BlackRock, Inc. 2014 annual RepoRt 6
— —
Our platform diversifi cation Investment solutions
enables us to create across the platform are
the most appropriate supported by unparalleled
blend of investment technology and risk
strategies for our clients management through
to achieve their desired Aladdin and our Risk &
investment outcomes. Quantitative Analysis team.
1,900 RetaIl and iSHARES®
+
pRoducts

each geneRatIng
Investment
$1B+ In net Inflows
pRofessIonals 43 56
woRldwIde
In 2013
In 2014
7 BlackRock, Inc. 2014 annual RepoRt 7
gloBal & local stRength
—
BlackRock has a
broad global footprint,
supporting a global
investment platform
and local relationships
with clients.
41
gloBal long-teRm aum
countRIes
americas $2,652B
wIth clIents foR whom
we manage at least emea $1,314B
$1B
asia-pacifi c $367B
In assets
gloBal Reach and local expeRtIse
BlackRock provides global and local strength We seek to maximize investment opportunities
to our clients, with offi ces in more than for our clients through the combination of
30 countries and nearly 70 cities across the our on-the-ground presence and our ability to
Americas, Europe, Asia-Pacifi c, the Middle provide the industry’s broadest set of global and
East and Africa, and clients in more than local investment solutions. BlackRock’s global
100 countries. Our global footprint is designed investment and distribution infrastructure
to deliver consistent, exceptional service positions us to capitalize on the future growth
across regions while supporting the localized and development of the world’s capital markets.
needs of our clients. Our scale gives us the fl exibility to innovate and
adapt the global and local nature of our platform
to best serve our clients’ changing needs.
8 BlackRock, Inc. 2014 annual RepoRt BlackRock, Inc. 2014 annual RepoRt 8