Blackrock, Inc. · NYSE:BLK
Blackrock — Investor Day (June 2023)
138 slides from Blackrock's investor day presentation, Jun 14, 2023
Slide 1: Investor Day 2023
BlackRock. Investor Day 2023
Slide 2: Forward-looking Statements
Forward–looking Statements This presentation, and other statements that BlackRock may make, may contain forward–looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. For
Slide 3: Strategy: Delivering platforms for performance to clients
Martin Small Chief Financial Officer and Global Head of Corporate Strategy Strategy: Delivering platforms for performance to clients Investor Day 2023
Slide 4: Our strategy is serving clients with excellence
Our strategy is serving clients with excellence Who we serve1 How we serve them 40 million >$50 billion People using iShares ETFs2 Invested across private markets in last two years3 $9.1T “Units of Trust” 35 million 130,000+ Americans with retirement Aladdin users5 assets managed by BLK4 Wealth ma
Slide 5: We are a platform for performance
We are a platform for performance Delivering strong Providing scale across Translating our investment asset management & efficiency performance technology to savings for our clients Active AUM above peer Savings in fixed income Private markets deals 81% median or benchmark for 5–yr period1 9,000 rev
Slide 6: BlackRock's cloud-like platforms fuel value for clients
BlackRock’s “cloud–like” platforms fuel value for clients Trends with asset owners match industrial Cloud computing spend to grow ~1.5x vs. change driving “on–prem” to “cloud” traditional IT from 2019 to 2025E Spend on cloud computing2 • Access innovation & scale Spend on traditional IT2 • Faste
Slide 7: Our strategy continues to deliver
Our strategy continues to deliver s w hole portfolio $400B+ NNB generated from ad ada vis $100B+ AUM transition mega–mandates1 in last 3 years e or investing platform4 .L a der in sustai l le na 4 ba bl ive growth e o . Dr 2 gl in $1.1B in 3–year ETF NNBF – the ts ve $82B in private markets rke stin
Slide 8: Bring strategy to life via access, expertise, and service
Bring strategy to life via access, expertise, and service Exp ert ise Markets, portfolios & advisory s whole portfol io a ada dv Le iso in der sustai 4. le a na al r b ve gro bl o . Dri wth 2 l e eg in ts ke th ve ar stin 3. Be Platform ET Private M Service 1. Alpha Fs Excellent performance, in g at
Slide 9: Asset management revenue remains highly fragmented
Asset management revenue remains highly fragmented Asset Management1 Revenue share of top 3% Investment Banking2 8% Cloud Computing3 33% firm in each industry: 3% 7% 26% 31% Clients’ Whole Portfolios 69% 74% 90% BlackRock #2–5 The rest Top 5 The rest Top 5 The rest Note: For footnoted
Slide 10: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 4 – Our strategy is serving clients with excellence 1. AUM as of 3/31/2023. Client split as of FY2022. 2. Data as of 12/31/2022. Source: Broadridge, ExtraETF, AMF, Le Monde, Wisdom Tree, Finanzas, Italian As
Slide 11: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 6 – BlackRock’s "cloud–like" platforms fuel value for clients 1. iShares exposures accounted for coming from total countries listed in MSCI EM Index as of May 2023. MSCI EM Index accounts for large and mid–c
Slide 12: Platform as a Service
Rob Goldstein Chief Operating Officer Platform as a Service Investor Day 2023
Slide 13: We are a platform for scale...
We are a platform for scale… The only “Platform as a Service” (PaaS) in asset management One BlackRock Investment teams Client segments Fundamental Fundamental Real Decarb & Fundamental High Fundamental Fixed Equities Secondaries Transition FixedIncome Income Alpha Estate Equities Americas Instituti
Slide 14: ...with the unique ability to service clients no matter their requirements
…with the unique ability to service clients no matter their requirements Access Expertise 19,500 Service employees1 Asset classes across the Whole Portfolio 1BLK: Seamless connectivity 25% 33% across businesses are corporate are tech and and business data operations professionals2 Investment strateg
Slide 15: The BlackRock Ecosystem in action
The BlackRock Ecosystem in action Client Case Study: Insurance Company1 2017 2020 2023 New Client Aladdin Risk implemented for the whole portfolio Entire portfolio managed end–to–end on the Aladdin Enterprise platform, including eFront Advisory: Started investment and insurance $1B infrastructure ad
Slide 16: Combining capabilities unlocks innovation across investment strategies
Combining capabilities unlocks innovation across investment strategies Investments Case Study: Private Equity Partners + BlackRock Systematic Investing Leveraging BlackRock’s Systematic Model to identify and catalyze private equity investments Evolution of private data science Private Equity Partner
Slide 17: Unlocking operating leverage through Aladdin
Unlocking operating leverage through Aladdin Technology Case Study: Aladdin–izing Alternatives Acquired Aladdin Community • “Whole Portfolio” is expanding the Aladdin pipeline – What’s coming 40% of new Aladdin clients leverage eFront1 in 2019 to bring • Insight data business has grown from ~$6M to
Slide 18: Clients are consolidating to trusted providers, with room to grow
Clients are consolidating to trusted providers, with room to grow Market share of asset management industry AUM, % 1 Market share (revenue) of industry, % 3% 7% $75T $108T 80% 76% Rest of industry U.S. Asset Credit 43% Management2 Card 57% Issuers3 90% BlackRock #2-5 The rest Top 5 The rest 16% 13%
Slide 19: The BLK Model
The PaaS value proposition is resonating with clients more and more Asset managers have historically been We start with the client, always – designed around their skills as opposed to the their needs are our north star needs of the client The BLK Model We work together as One BlackRock No firm has b
Slide 20: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 14 – …with the unique ability to service clients no matter their requirements 1. BlackRock 1Q23 10–Q filing. 2. BlackRock as of 3/31/23. 3. BlackRock 2022 Annual Report. Slide 15 – The BlackRock Ecosystem in
Slide 21: Outsourcing: A scale engine for our clients
Stephen Cohen Head of Europe, Middle East and Africa Outsourcing: A scale engine for our clients Investor Day 2023
Slide 22: BlackRock's outsourcing platform
BlackRock’s outsourcing platform Mega mandates2 organic growth $114B $200B+ $252B $719B 1Q23 LTM net new business2 $400B+ Outsourcing AUM1 $73B 3–year net new business2 $280B Outsourced CIO EMEA & APAC Wealth Solutions $500B+ 5–year net new business2 Insurance1 Managed Models Note: For footn
Slide 23: The investment management industry is seeing rapid transformation
The investment management industry is seeing rapid and multi–dimensional transformation… Regulatory change Competitive pressure Challenging macro environment Portfolio of the future Scalable growth Focus on core strengths 23
Slide 24: ...changing the needs of our clients
… changing the needs of our clients Regulatory change Competitive pressure Challenging macro environment Portfolio of the future Scalable growth Focus on core strengths Clients are looking to scaled asset managers to provide a whole platform of investment management and technology services 24
Slide 25: Whole portfolio outsourcing is growing faster
Whole portfolio Global whole portfolio solutions market1 AUM ($T) outsourcing is growing faster $5.3 than the CAGR industry 16% $2.9 2017 2022 Note: For footnoted information, refer to slide 29. 25
Slide 26: BlackRock is well-positioned for growth in outsourcing
BlackRock is well–positioned for growth in outsourcing through our global scale, broad investment platform and technology Global Scale Diversity and Technology Local Trusted Breadth of Presence and Execution Platform Talent Delivering outsourcing solutions to clients 26
Slide 27: Clients are entrusting us with their portfolios in every region
Clients are entrusting us with their portfolios in every region Asia–Pacific U.S., Canada & LatAm Wealth Managers Corporate Pensions State Pensions Insurance Companies Corporate Pensions Europe, Middle East & Africa Endowments Family Offices Wealth Managers Insurance Companies Asset Managers Corpora
Slide 28: BlackRock is driving investment management and technology transformation
BlackRock is driving investment management and technology transformation for our clients Driving Creating Expanding into Support our innovation enhanced value new markets clients’ long–term for our clients growth Combining And a scalable Across regions and By delivering scale and investment and plat
Slide 29: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 22 – BlackRock’s outsourcing platform 1. AUM as of 3/31/23. Insurance assets represent AUM associated with insurance mandates greater than $5B in assets. 2. Mega mandates reflect client outsourcing assignmen
Slide 30: Innovating Aladdin for the future
Sudhir Nair Global Head of Aladdin Innovating Aladdin® for the future Investor Day 2023
Slide 31: Aladdin technology solves for key aspects of the investment process
BlackRock’s Aladdin® technology solves for key aspects of the investment process Technology revenue $1.4B For institutional investors Aladdin Enterprise Aladdin Risk Aladdin Climate 2022 revenue1 eFront Aladdin Accounting Aladdin Studio For wealth managers 12% 3–year revenue CAGR2 Aladdin Wealth Fo
Slide 32: Industry dynamics are reshaping the investment landscape
Industry dynamics are reshaping the investment landscape End Investors Demand custom–tailored portfolios at high value for money Wealth Managers & Distributors Serve end clients with a high–quality value proposition Investment Managers Need technology to operate horizontally and efficiently Technolo
Slide 33: BlackRock delivers differentiated growth through technology innovation
BlackRock delivers differentiated growth through technology innovation Expanding the Pursuing new Creating a Enabling suite of capabilities client segments platform with 3rd technology party partners transformations
Slide 34: Expanding the suite of capabilities
BlackRock delivers differentiated growth through technology innovation Expanding the suite of capabilities Expanding the Pursuing new Creating a Enabling suite of capabilities + End–to–end capabilities client segments platform with 3rd technology + Multi–asset party partners transformations + Sustai
Slide 35: Pursuing new client segments
BlackRock delivers differentiated growth through technology innovation Pursuing new client segments Expanding the Pursuing new Creating a Enabling U.S. → Global suite of capabilities client segments platform with 3rd technology party partners Public markets → Private markets transformations Institut
Slide 36: Creating a platform with 3rd party partners
BlackRock delivers differentiated growth through technology innovation Creating a platform with 3rd party partners Expanding the TechnologyPursuing new Asset servicing Creating Strategic a Enabling suite of capabilities partners client segments network investments platform with 3rd technology party
Slide 37: Aladdin is a high-quality, fast-growing technology business
Aladdin® is a high–quality, fast–growing technology business that fuels BlackRock's growth Technology services revenues1 ($B) 15% $1.4B CAGR ACV2 in 2022 $1.4 $1.3 $1.1 $1.0 $0.8 11% 17 3–Year ACV New large client CAGR3 wins4 in 2022 2018 2019 2020 2021 2022 Note: For footnoted information, refer to
Slide 38: The market opportunity for Aladdin continues to grow
The market opportunity for Aladdin® continues to grow ~$12.5B addressable market1: Aladdin® Platform: ~11% of market captured ~$6B Smaller Of ~$12.5B addressable market institutions Market share increasing ~$5B By continuously investing in our platform and Large institutional & solving for client ne
Slide 39: Our strategy targets the needs of the future investor
Our strategy targets the needs of the future investor Enabling a Empowering our Opening Aladdin® Leading in Whole Portfolio clients through sustainability ecosystem data Investing in our engineering talent Leveraging new technology 39
Slide 40: We are delivering on our mission to make Aladdin the language of portfolios
We are delivering on our mission to make Aladdin® the language of portfolios BlackRock is Aladdin® is Technology Low to mid–teen leading through interwoven into revenues are long–term innovation BlackRock’s diversified growth target strategy 40
Slide 41: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 31 – BlackRock’s Aladdin® technology solves for key aspects of the investment process 1. Technology services revenue per BLK 2022 Form 10–K filing. Revenue as of 12/31/2022. 2. BLK Form 10–K filings for resp
Slide 42: A scale growth platform to access an expanding world of investments
Salim Ramji Global Head of iShares and Index Investments A scale growth platform to access an expanding world of investments Investor Day 2023
Slide 43: ETF & Index Investing at BlackRock is a scale growth platform
ETF & Index Investing at BlackRock is a scale growth platform ETF organic asset and revenue growth $719B 10% 3–year average ETF organic asset growth3 $2.9T $5.9T ETF & Index AUM1 $3.1T 3–year ETF net new business2 $1.1B 3–year ETF organic revenue growth2 8% 3–year average ETF organic revenue growth4
Slide 44: BlackRock's ETF & Index Investing platform is differentiated
BlackRock’s ETF & Index Investing platform is differentiated P iShares ETFs are used by 40 million people globally1 Over 1,300 ETF choices to access a world of investments2 iShares Fixed Income ETFs Individual investors through digital wealth platforms iShares Factor ETFs Wealth managers primarily t
Slide 45: iShares generated high single-digit organic revenue growth
iShares generated high single–digit organic revenue growth, driven by strategic product segments iShares ETF product segments: $3.1T 18 bps $5.7B $1.1B 8% Strategic ETF segments organic revenue Enabling clients to efficiently access: growth 5 • An expanding universe of Fixed Income exposures 17 bps
Slide 46: iShares generated over $1.1 billion in organic revenue growth
iShares generated over $1.1 billion in organic revenue growth, more than the next three ETF issuers combined 3 year organic revenue growth ($M)1 $1,108 Strategic ETF segments Fixed Income, Factor, Sustainable/Transition, Thematic Core Equity ETFs Precision ETFs $462 $279 $296 $314 $318 ETF Iss
Slide 47: We expect the ETF industry to grow to $25T of AUM by 2030
We expect the ETF industry to grow to $25T of AUM by 2030 Industry trends driving ETF adoption Projected ETF industry AUM ($T)4 Fixed Income ETFs Equity ETFs Digital wealth: $17T market growing 15% as ETFs become the preferred vehicle1 $25T 6 Model portfolios: $4.2T market growing 16% with ETFs
Slide 48: BlackRock's platform unlocks multiple trillion-dollar growth opportunities
BlackRock’s platform improves clients’ access to investments and unlocks multiple trillion–dollar growth opportunities 01 02 03 Increase investment Enable wealth and Modernize the bond access for tens of millions asset manager CIOs to market by unlocking of people by making build and customize clien
Slide 49: Increase investment access through digital wealth platforms
1 Increase investment access for tens of millions of people by making iShares central on digital wealth platforms Digital wealth is a global growth channel Triple ETF assets in digital wealth to $1T by 2030 Global iShares ETF AUM on digital wealth platforms ($T)1 Tens of millions of people use iShar
Slide 50: Enable wealth and asset manager CIOs to build managed models
2 Enable wealth and asset manager CIOs to build and customize managed models with iShares and BlackRock ETFs A majority of iShares ETF flows are now from managed Managed models are growing and our breadth of ETFs models, especially third party managed models are playing an expanded role in portfolio
Slide 51: Modernize the bond market with fixed income ETFs
3 Modernize the bond market by unlocking client use cases for fixed income ETFs to generate returns more efficiently Unique features of iShares are unlocking active client use cases Triple fixed income ETF assets to $2.5T by 2030 Global iShares fixed income ETF AUM ($T)6 Choice: ~500 ETFs tracking s
Slide 52: BlackRock's investment engine delivers performance and customization at scale
BlackRock’s investment “engine” delivers performance and customization at scale and innovative access to new markets BlackRock’s ETF & Index Investing “engine” Our investment “engine” enables performance and customization at scale ETF technology access to Custom / direct indexing, Leading ETF qualit
Slide 53: ETF & Index Investing summary
ETF & Index Investing at BlackRock is a scale growth platform to access an expanding world of investments A differentiated Multiple trillion–dollar Scale investment “engine” ETF & Index business growth opportunities enabling innovation • Efficient access for tens of millions • Triple ETF assets in d
Slide 54: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 43 – ETF & Index Investing at BlackRock is a scale growth platform 1. Source: BlackRock, as of March 31, 2023. 2. Source: BlackRock, as of March 31, 2023. Net new business (NNB) represents net asset inflows
Slide 55: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 49 – Increase investment access for tens of millions of people by making iShares central on digital wealth platforms 1. Source: BlackRock, as of March 31, 2023. 2027T and 2030T are targets. Estimates include
Slide 56: Growth beyond the U.S.
Rachel Lord Chair and Head of APAC Growth beyond the U.S. Building BlackRock in local markets Investor Day 2023
Slide 57: BlackRock's international platform
BlackRock’s international platform Non–U.S. organic growth and revenue $428B $133B $628B 3–year avg. organic $927B 7% asset growth3 $463B 3–year net new business2 $3.5T $1.0B 3–year Avg. non–US Organic base $245B client assets1 6% fee growth5 3–year net new base fees4 $130B $8.3B Americas ex–U.S.
Slide 58: We have deep local presence
We have deep local presence Strong Regional Connectivity1 Americas ex-US UK Europe ex–UK Middle East & Asia ex–Japan Japan Australasia Africa $400B+ AUM $900B+ AUM $1.1T+ AUM $100B+ AUM $200B+ AUM $400B+ AUM $100B+ AUM ~400 employees ~3,700 employees ~2,300 employees 50+ employees 3,700+ employees ~
Slide 59: How we drive growth and create value for clients and shareholders
How we drive growth and create value for our clients and shareholders Outpacing the broader industry Powered by our localized approach and global platform 3–Year Organic Asset Growth, 2020–20221 (%) 6% Localized approach Global platform 4% ✓ Investing strengths ✓ Global investment capabilities ✓ Mar
Slide 60: Opportunity in developed local markets
Opportunity in developed local markets Growth in local markets driven by key …with non–U.S. markets continuing to strategic focus areas… drive market share gains BlackRock1 Industry2 Global & Local Private Markets ETFs $191B AUM $4.4T AUM Germany +10% org. growth +4% org. growth Outsourcing and Tech
Slide 61: Opportunity in fast-growing local markets
Opportunity in fast–growing local markets Embedded local asset manager Partnering in infrastructure Building offshore presence Positioning for the future Mexico Saudi Arabia India China How we differentiate ourselves • Diverse platform across local • Decades–old institutional • Driving investment in
Slide 62: Regional industry trends as tailwinds to consolidate share
We see regional industry trends as strong tailwinds for BlackRock to consolidate share EMEA APAC Sustainable Portfolio Regional Manager investing customization investing consolidation Sustainable products Significant growth in Increasingly localized Clients increasingly driving a tectonic shift in c
Slide 63: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 57 – BlackRock’s international platform 1. AUM as of 3/31/23. AUM refers to client assets in each region. 2. Represents last 3 years ending 3/31/23. Net new business represents net asset inflows. 3. Represen
Slide 64: Active for the portfolio of the future
Rich Kushel Head of the Portfolio Management Group Active for the portfolio of the future Investor Day 2023
Slide 65: BlackRock active strategies
BlackRock active strategies Organic growth and revenue $207B $411B $570B 3–year net new business2 8% 3–year average organic asset growth3 $2.5T $1.1B $758B (2)% Active AUM1 3–year average organic base fee growth4 3–year net new base fees2 7% $1,099B $7.3B 2022 Base and Performance Fees5 (15) % 7% 3–
Slide 66: BlackRock is growing faster than the industry
BlackRock is growing faster than the industry, and has significant room to grow share BlackRock and industry active organic asset growth1 BlackRock active market share2 $2,606 $2,474 $2,251 $2,317 12% 12% $1,947 7% 5% 5% 4% 2% 3.1% 3.2% 2.9% 3.0% 1% 2019 2020 2021 2022 1Q23 (1%) 2019 2020 2021 2022
Slide 67: Strong relative performance across active platform
Strong relative performance across active platform Differentiated long–term performance Strong lineup of 4– and 5–star active mutual funds2 % of assets above benchmark or peer median for the 5–year period1 # Funds % of AUM 73 60% 90% Equity 90% 90% 83% 81% 78% 71% 66% 64% 45 59% Fixed Income 47 57%
Slide 68: Whole portfolio business is delivering outcomes for clients
BlackRock’s whole portfolio business is delivering outcomes for clients, and unlocking new channels for delivering active BlackRock Outsourced CIO AUM ($B) BlackRock–Managed Models ($B)1 EMEA & APAC Wealth Solutions AUM ($B) 22% 33% $114 174% $73 CAGR $252 CAGR CAGR $110 $34 $1 2018 1Q23 2018 1Q23 2
Slide 69: Accelerating demand for whole portfolio solutions and model portfolios
Accelerating demand for whole portfolio solutions and model portfolios Outsourced CIO and U.S. Wealth SMA Industry ($T)1 U.S. Model Adoption and Addressable Market ($T)2 2022 industry estimates $5.1 13% CAGR >$9.0T 5–year expected growth CAGR (2017–2022): U.S. Wealth SMAs 2.3 11% $2.9 >2x 1.4 Outsou
Slide 70: BlackRock model growth outpacing the industry
BlackRock model growth outpacing the industry, with additional channels to drive growth \ U.S. Model Portfolio Solutions Industry1 U.S. Advisor Segments and Model Outsourcing2 BLK outpaced the industry 4x Traditional Organic CAGR model buyers (2019–2021) increasingly 20% saturated Broker Dealers 67%
Slide 71: Custom Model Solutions (CMS)
Custom Model Solutions (CMS): differentiated outcome– oriented capabilities through mass customization $23B Scaled Q1 2023 AUM infrastructure through Aladdin $8B Custom NNB in 2022 and Q1 2023 models Strong RIA BlackRock relationships building blocks $15M NNBF in 2022 and Q1 2023 71
Slide 72: Expanding custom model offerings with RIA clients
Expanding custom model offerings to grow share with RIA clients Typical RIA Custom Model Solutions Client1: Asset Breakdown Qualified Taxable Illiquid & other Over $5M (20%) % of each RIA $2M–$5M firm assets (16%) Difficult to reach 26% (UHNW, Illiquids) Account size Whole portfolio expanded rea
Slide 73: We win in whole portfolios by managing complexity
We win in whole portfolios by managing complexity for our clients, leveraging our technology to scale Scalable Strategic, robust, performant Manager Investment solutions research tools Flexible Easily extendable and designed for varying client use–cases Models Client infrastructure reporting Integra
Slide 74: Portfolio construction & asset allocation
Combining our investment solutions with asset allocation expertise to deliver investment outcomes for clients World–class investment building blocks designed to meet evolving client needs Active Equities Portfolio Active Fixed Income construction & Multi–Asset asset allocation Private Markets expert
Slide 75: Well positioned to meet evolving client demand for active
Well positioned to meet evolving client demand for active over the long–term Delivering Unlocking new Effectively traditional active markets to deliver managing strategies through alpha in innovative complexity and whole portfolios ways for clients delivering alpha at scale through technology Abilit
Slide 76: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 65 – BlackRock active strategies 1. AUM as of 3/31/23. 2. Represents last three years ending 3/31/23. Net new business represents net asset inflows and Net new base fees represents net new base fees earned o
Slide 77: Built on Bonds
Rick Rieder Chief Investment Officer of Global Fixed Income Built on Bonds Investor Day 2023
Slide 78: BlackRock fixed income
BlackRock fixed income Fixed Income organic growth and revenue $727B 3–year average organic $2.7T $1.1T 10% asset growth3 3–year net new business2 $1.6T Fixed Income AUM1 $576M 3–year net new base fees2 (2)% 6% 3–year average organic base fee growth4 $3.5B Active Fixed Income ETF & Non–ETF Index
Slide 79: Platform delivers fixed income solutions...
Platform delivers fixed income solutions… Technology and Insights risk management BlackRock Fixed Income Breadth and Market access diversity of platform Delivering Liquidity Core Allocations Returns & Income investment Tier liquidity in cash allocations Access yield and equity Seek higher returns by
Slide 80: ...and scale benefits to clients
… and scale benefits to clients 8400+ 25% 01 Proprietary deal sourcing for unique and bespoke investment opportunities primary market sourcing savings in execution costs opportunities compared to annually1 market average2 02 Strength of access to and execution of deal flow unlocked by of our vast gl
Slide 81: Active platform backed by strong long-term performance
Active platform is backed by strong long–term investment performance and award–winning investment teams Long–term performance1 Strong line–up of 4– and 5–star active 12 Fixed Income Funds awarded Gold % of taxable fixed income assets above benchmark or bond funds2 medals by Morningstar2 peer median
Slide 82: Leading fixed income franchise with significant room to grow
Leading fixed income franchise with significant room to grow Fixed income net inflows ($B) ETFs Active – Institutional Active – Retail Non–ETF Index $264 $250 $230 $158 $79 2018 2019 2020 2021 2022 Industry: Organic asset growth1 1% 7% 5% 7% (2)% BlackRock: Organic asset growth 4% 14% 7% 9%
Slide 83: A historic evolution of the capital stack and return opportunities
A historic evolution of the capital stack and return opportunities in Fixed Income… The size of capital markets generally resembles a funnel, until But for over 2 decades now, investors have been rewarded for taking on more volatility as the returns have very much been you get to the large equity ba
Slide 84: Constituents
… and as opposed to the past 10 years, returns come with dispersion and volatility making active management of these yields a valuable part of a total Fixed Income allocation… The range of yields available across major Fixed Income asset classes has more than doubled in the last 18 months alone 1 Fi
Slide 85: Multiple tools now available for return, diversification, and stability
Multiple tools are now available to provide return, diversification, and stability to complement a broad investment portfolio… EUR IG EUR HY 1 US HY BB Mexico 2Y Significance Date US 3m Yield US 10Y Yield US IG 3Y Yield 1-3Y Yield BB Yield Brazil 2Y Yield (FX Hedged) Yield (FX Hedged) Yield Today 6/
Slide 86: Diversity and connectivity of our fixed income platform
Diversity and connectivity of our fixed income platform positions us to deliver outcomes for clients and grow our share We invest across the full spectrum We share insights globally We see the full opportunity set Creating a mosaic of market activity Collaborating across sectors, Providing investors
Slide 87: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 78 – BlackRock fixed income 1. AUM as of 3/31/23. 2. Represents last 36 months ending 3/31/23. Net new business represents net asset inflows and Net new base fees represents net new base fees earned on net a
Slide 88: Indices
Indices 1–3Y IG = Bloomberg US Corporate 1–3 Yr Index US 10Y = US Generic Govt 10 Yr AAA CMBS = Bloomberg CMBS Investment Grade: AAA Total Return Index US 3m = US Generic Govt 3 Mth ABS = Bloomberg US Agg ABS Index US 6m = US Generic Govt 6 Mth Brazil 2Y = Brazil Government Generic Bond 2 Year US Ag
Slide 89: Private Markets: Essential building blocks of the modern portfolio
Edwin Conway Global Head of Equity Private Markets Private Markets: Essential building blocks of the modern portfolio Investor Day 2023
Slide 90: BlackRock alternatives
BlackRock alternatives Organic growth and revenue $83B $156B $102B 3–year gross fundraise2 12% 3–year average organic asset growth3 $320B alternatives client assets1 $412M 3–year net new base fees3 10% 3–year average organic base fee growth4 $2.2B $81B 3–year CAGR6 12% Private markets7 2022 Revenu
Slide 91: Private markets platform to deliver outperformance
We have designed a private markets platform that seeks to deliver outperformance and investment outcomes for clients BlackRock Private Markets $156B client assets $46B $38B $30B $30B $12B Infrastructure Private equity Real estate Private credit Multi-alternatives Note: For footnoted information, ref
Slide 92: Private Markets platform has delivered double-digit growth
Our Private Markets platform has delivered double-digit growth in client assets and revenue Private markets client assets ($B)1 Private markets revenue ($M)1 +16% +26% CAGR CAGR $1,037 $152 $156 $138 $876 296 14% $110 $660 208 $98 $624 $83 83 136 $418 70 741 $222 668 577 488 21 348 201 2018 2019 202
Slide 93: Well positioned for future revenue growth
Well positioned for future revenue growth Committed capital ($M) Gross carried interest balance ($M)3 Ongoing fundraising and deployment $33B +40% $1,458 Multi–alternatives platform providing: committed but not yet CAGR deployed capital1 Access to high quality opportunities Improved transparency $26
Slide 94: Industry AUM is expanding as investors increase private markets allocations
Industry AUM is expanding as investors continue to increase allocations to private markets X Investor asset allocations to private alternatives1 Private markets industry assets expected to grow to $18T by 20272 2021 – 2027E CAGR Institutions Wealth +13% Expected 2025 Allocations Infrastructure 28–30
Slide 95: Our flagship franchises are steadily scaling
Our flagship franchises are steadily scaling X Fundraising on track to meet 2021 investor day target ($B)1 Successfully scaling successor funds ($B)2 $82B $7.5 $7.0 Raised $5 $5 $3 $2 $1 $1 Fund I Fund II Fund III Fund IV Investor Day 2021 Targets $100B+ 3–year gross fundraise target from ’21–’23
Slide 96: Differentiated deal flow in private markets drives performance
Our differentiated deal flow1 in private markets is a key driver of performance and our value proposition to clients We tap into the broader BlackRock X ecosystem to drive fund performance and Sample BlackRock private markets deals3 help our clients meet their objectives with whole portfolio solutio
Slide 97: Differentiated capabilities translate into long-term investment performance
These differentiated capabilities continue to translate into long– term investment performance, driving outcomes for clients Net IRR of select flagship strategies, most recent vintages Long Term Private Capital Diversified Infrastructure Climate Infrastructure (private equity flagship) 31.6% 13.5% 1
Slide 98: Our strategy to lead in constructing whole portfolios
Our strategy to lead the industry in constructing whole portfolios Positioned across public and private markets on behalf of clients Evolving to drive better investment outcomes for Whole Portfolio Partnership clients Multi–Alternatives Grounded in solving client Solutions needs Integrated view of u
Slide 99: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 90 – BlackRock alternatives 1. Client Assets figures as of 3/31/23. Client assets includes AUM and non–fee paying committed capital. Committed capital are non–fee paying and are not included in AUM. These co
Slide 100: Transition Investing: Unlocking new markets for clients
Dickon Pinner Head of Transition Capital Jessica Tan Head of Sustainable and Transition Solutions Transition Investing: Unlocking new markets for clients Investor Day 2023
Slide 101: The transition to a low-carbon economy will transform economies
The transition to a low–carbon economy will transform economies, sectors, and business models… Technology Consumer preferences Policy 79% 40% >$470B Reduction in battery costs Electric vehicle share of U.S. pledged over the past decade1 global passenger vehicle transition funding3 sales by 20302 ~€6
Slide 102: Transition expected to spur significant capital investment
…and we expect the transition to spur significant capital investment 2015 - 2021 2023 - 2050 $2.3 Trillion $3.5 - 4 Trillion invested per year on average in energy invested per year on average through 2050, supply and demand, increasing to…1 across high and low carbon2 Note: For footnoted informatio
Slide 103: Connecting sources of capital to investible transition opportunities
The transition requires connecting sources of capital to investible transition opportunities globally Sources of capital Uses of capital Financial world BlackRock Physical world Enablers and facilitators 103
Slide 104: Opportunities and challenges across the corporate lifecycle
This presents opportunities – and challenges – across the corporate lifecycle Transition Transition Transition Transition Launch Scale–up Infrastructure Public Markets Venture Capital & Private Equity Core, Core+, and Index & Active Growth Equity Value–Add Equity Direct Lending High Yield & Venture
Slide 105: Our approach builds on our history of delivering outcomes
Our approach to transition investing builds on our history of delivering investment outcomes for clients A 35–year track–record Consistent approach across platform Anticipating client needs Client Choice Performance Managing investment risk We start with the client We seek the best risk– adjusted re
Slide 106: Our $100B+ transition platform spans asset classes
Our $100B+ transition platform spans asset classes BlackRock Transition Investing1 Index Active Private Markets $50B $40B $17B Whole portfolio advisory Proprietary research, technology, & analytics Corporate network & sourcing capabilities Note: For footnoted information, refer to slide 111. 106
Slide 107: Index and active options to invest in the transition
BlackRock’s options across index and active allow clients to invest in the transition to a low–carbon economy based on their investment objectives Index Active Broad Paris Aligned Benchmark Low Carbon Transition Readiness strategies Climate Transition Benchmark Targeted Self–Driving EV and Tech Futu
Slide 108: Diversified private markets platform with more in the pipeline
We have a diversified private markets platform – with more in the pipeline Private Decarbonization Partners Late venture capital / early-stage growth equity investments that Markets advance decarbonization solutions Our teams Climate Infrastructure Renewable power generation assets, transition–enabl
Slide 109: Access to global transition investment opportunities
BlackRock provides clients with Americas1 CO2 Capture Battery Storage access to global transition Renewable Natural Gas Hydrogen/Carbon Black investment opportunities Solar PV Waste Management Gas & Blue Hydrogen EMEA1 Transmission & Battery Storage EV Charging LNG Carriers Onshore Wind Offshore Win
Slide 110: Whole portfolio transition platform
Our whole portfolio transition platform helps our clients navigate and invest in the transition to a low-carbon economy Service Access Expertise Deliver as One BlackRock 110
Slide 111: End notes
End notes All $ figures in this presentation are given in USD. These notes refer to the financial metrics and/or defined term presented on: Slide 101 – The transition to a low-carbon economy will transform economies, sectors, and business models… 1. BloombergNEF, Top 10 Energy Storage Trends in 2023
Slide 112: Bringing it together for clients
Mark Wiedman Head of the Global Client Business Bringing it together for clients Investor Day 2023
Slide 113: What we deliver to clients
What we deliver to clients Institutions Wealth (~46% of revenue)1 (~54% of revenue)1 Defined benefit Platform as a service Wealth managers Defined contribution Outsourcing iShares Private banks Asset managers Aladdin Independent advisors Private markets Insurers Units of trust Retail banks Sovereign
Slide 114: Look deeper . . .
Look deeper . . . Portfolio reset From products amid regime to whole change portfolios Data and analytics What clients want Customization Do more with fewer Thirst for Professionalization private markets Client Investments and… Portfolio counsel trends • • Commercial advice and help Yield and cash R
Slide 115: Our mission: deepening partnerships with our clients
Our mission: deepening partnerships with our clients across investment and commercial needs Product Portfolio provider constructor Strategic Business consultant co–builder 115
Slide 116: Global strategy, locally delivered
Global strategy, locally delivered Bringing One BlackRock together Where the magic happens1 Note: For footnoted information, refer to slide 118. 116
Slide 117: How we grow with clients - our 5% ambition
How we grow with clients – our 5% ambition 2023–2027 2019–2022 (projected/ (average) target) Industry organic asset growth1,2,3 3% 3% Industry organic base fee revenue 4% 3% growth1,2,3 BlackRock organic base fee revenue 5% 5% growth1,4 Target BlackRock share of industry base 2.8% 3.1% fee revenues1
Slide 118: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 113 – What we deliver to clients 1. Revenue as of fiscal year 2022. Revenue includes base, securities lending and performance fees. Slide 116 – Global strategy, locally delivered 1. Source: BlackRock. Office
Slide 119: Driving value for our shareholders
Martin Small Chief Financial Officer and Global Head of Corporate Strategy Driving value for our shareholders Investor Day 2023
Slide 120: Longstanding framework for delivering shareholder value
We have a longstanding framework for delivering shareholder value Organic growth Operating Capital leverage management EPS growth 120
Slide 121: Successful execution of our financial framework
Successful execution of our financial framework Organic growth Operating margin (as adj.) Capital management $7.9 billion shares repurchased (7)% share count reduction 46.8% in 2021 $19.52 44.1% Primarily 5% 5% 2022 beta organic asset organic base 42.8% impact growth1 fee growth2 $10.00 10% CAGR 1/1
Slide 122: Organic asset growth higher and less volatile than peers
Organic asset growth higher and less volatile than peers Organic asset growth1 Standard deviation1 9% 5% BLK organic base fee growth 7% 6% 7% 5% 5% 5% 5% 4% 4% 3% 1% 1% (1%) (5%) (6%) A B C D E F G A B C D E F G BLK Traditional Asset Manager Peers Captive Peers BLK Traditional Asset Manager Peers Ca
Slide 123: Diversified platform supports 5% organic base fee growth target
Diversified platform supports 5% organic base fee growth target 7% 3–Year Average BlackRock Organic Base Fee Growth 2 Effective Fee 17 8 31 27 67 12 4 Rates (bps)1 19% 14% 12% 3–Year 7% Avg Organic 6% Base Fee Growth 4% 6% Rates2 Strategic Core 1% Equity Precision ETFs Active ex–Illiquid Alts4 Illiq
Slide 124: Ability to meet client needs scales our AUM
Our ability to meet client needs across a variety of market environments continues to scale our AUM 9% CAGR $9.1T Net inflows ($B) $540 $429 $391 $367 $307 $2.9T $3.8T $120 $194 $150 $202 $124 $110 increase from net inflows Market / FX movements ($B) $1,025 $856 $770 $752 $386 $134 $220 $385 $2.2T a
Slide 125: Differentiated organic growth and margin over the long-term
Differentiated organic growth and margin over the long–term, with near–term results impacted by historic market headwinds 20121 2021 2022 $3.8T AUM +163% (14)% $2.5T of net inflows $10.0T $307B of net inflows $8.6T $9.3B Revenue +109% 1 $19.4B (8)% $17.9B 40.4% Margin as adj. +640bps1 46.8% (400)bps
Slide 126: Consistent capital management policy
Consistent capital management policy to invest first and then return cash to shareholders Prioritization of cash use Cash payout & payout ratio1,2 (Figures in $B) Organic business investments 94% 84% 84% 76% 100% 6 63% G&A Headcount Seed & Co–invest 5 $4.9 50% 4 $3.6 $3.8 $3.8 $3.7 0% Tactical acqui
Slide 127: Using our balance sheet to support profitable growth
Using our balance sheet to support profitable growth Seed1 Co–invest1 Revenues from seeded funds ($B) Revenues from co–invested funds ($B) $0.9 $1.8 $0.2 $0.82 Seed portfolio ($B) 26% Co–investment portfolio ($B), including 25% IRR on unfunded commitments IRR on shareholder shareholder $2.6 $2.3 cap
Slide 128: Increasing co-investment portfolio as private markets scales
Increasing co–investment portfolio as private markets scales, delivering revenue growth and profitability for shareholders Scaling private markets Carry increasingly contributing to revenue Significant potential performance fees Private markets gross fundraise1 ($B) Carry performance fees ($M) Gross
Slide 129: Inorganic investments accelerate organic growth
Inorganic investments accelerate organic growth, support strategic initiatives, and deliver return for shareholders Tactical acquisitions Strategic minority investments 1 Technology Alternatives 1 Global Distribution Whole Portfolio 1. Subject to customary regulatory and closing conditions. Acquisit
Slide 130: Steady dividend increases
Steady dividend increases $20.00 $19.52 $16.52 $14.52 17% $13.20 CAGR $12.02 $10.00 $9.16 $8.72 $7.72 $6.72 $6.00 $5.50 $4.00 $3.12 $3.12 $2.68 $1.68 $0.80 $1.00 $1.20 1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Ann'd Note: For footnoted
Slide 131: Share repurchase program since 2013
Share repurchase program since 2013 171M shares outstanding 12/31/12 (13)% 150M shares outstanding 12/31/22 $13B+ repurchased $428 average price per share +15% compound annual return1 Note: For footnoted information, refer to slide 136. 131
Slide 132: Differentiated organic base fee growth across market environments
BlackRock has delivered differentiated organic base fee growth across various market environments… S&P 500 Returns 30% 11% (1)% 10% 19% (6)% 29% 16% 27% (19)% 11% Avg: 5% 7% 7% 5% 6% 6% 5% Organic base fee growth1 2% 1% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YoY as adj. 100 150 – 90 30
Slide 133: Driving BlackRock stock outperformance over the long-term
…driving BlackRock stock outperformance over the long–term Total return to shareholders1 319% 251% 106% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3/31/23 2022 BLK S&P 500 Large-Cap Traditional Peers Note: For footnoted information, refer to slide 136. 133
Slide 134: Access Service Expertise
BlackRock will 1BLK Platform continue to invest and Organic growth leverage our scale to drive Operating Capital Service Access long–term leverage management shareholder value EPS growth Expertise 134
Slide 135: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 121 – Successful execution of our financial framework 1. Organic asset growth rate is calculated by dividing net asset inflows over beginning of period assets. 5% reflects average over the 5–year period. 2.
Slide 136: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 128 – Increasing co–investment portfolio as private markets scales, delivering revenue growth and profitability for shareholders 1. Gross fundraising includes assets counted in net inflows and committed capi
Slide 137: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($mm, except per share data) 2012 1,2 2013 1,2 2014 1,2 2015 1,2 2016 2 2017 2 2018 2 2019 2 2020 2 2021 2 2022 2 Operating income Operating Income, GAAP basis $3,524 $3,857 $4,474 $4,664 $4,565 $5,254 $5,457 $5,551 $5,695 $7,450 $6,385 Non-GAAP expense ad
Slide 138: Important notes
Important notes The opinions expressed herein are as of June 2023 and are subject to change at any time due to changes in the market, the economic or regulatory environment or for other reasons. The information should not be construed as research or relied upon in making investment decisions or be u