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Blackrock Fundamental Analysis October 2023



Blackrock fundamental analysis. Headquartered in New York, BlackRock Inc. is a versatile financial institution offering a wide array of investment products. These products encompass active, enhanced, and index strategies, delivered through various structures such as separate accounts, mutual funds, iShares, and exchange-traded funds (ETFs).

In addition, BlackRock provides technology services, advisory services, and tailored solutions. The offer goes to both institutional and wealth management clients. It acts as a fiduciary, managing its clients’ assets with the utmost responsibility and trust.


Blackrock fundamental analysis. BlackRock expertly oversees its Assets Under Management (AUM) across several key categories:

  1. Equity: BlackRock’s equity AUM reflects the breadth and depth of its business model, offering a wide range of both active and passive investment strategies. As of June 30, 2023, this category boasted an impressive $4.96 trillion in AUM.
  2. Fixed Income: In the fixed income asset class, BlackRock expertly divides its management between passive and active mandates, resulting in an AUM of $2.67 trillion as of June 30, 2023.
  1. Multi-Asset Class: The multi-asset class team at BlackRock specializes in managing personalized mandates. The company has extensive expertise in global equities, currencies, bonds, commodities, and robust risk management capabilities. By June 30, 2023, this category had accumulated an AUM of $811.9 billion.
  2. Alternatives: The company directs its alternative investment endeavors, encompassing product management, business development, and client service. By June 30, 2023, this segment accounted for $272.9 billion in AUM.
  3. Cash Management: Cash management products offered by BlackRock include taxable and tax-exempt money market funds, along with customized separate accounts. As of June 30, 2023, AUM in this category totaled $710.1 billion.
  4. Advisory: As of June 30, 2023, BlackRock did not report any AUM balance under the advisory asset class.

BlackRock’s expansion over the years has been notable. Key acquisitions have bolstered its capabilities and offerings:

  • In 2017, BlackRock acquired the First Reserve Energy Infrastructure Funds and Cachematrix.
  • In 2018, it expanded by acquiring Tennenbaum Capital Partners and the asset management business of Citibanamex.
  • The year 2019 saw BlackRock’s acquisition of the Paris-based eFront.
  • In 2021, the company furthered its growth by acquiring Aperio Group LLC and the Climate Change Scenario Model from Baringa Partners.
  • Most recently, in August 2023, BlackRock added London-based Kreos Capital to its expanding portfolio.






BlackRock’s Growth.

BlackRock’s growth story has been significantly shaped by its strategic acquisitions, both within its home country and on the global stage. Notably, the recent acquisition of London-based Kreos Capital in August serves to reinforce its status as the leading global credit asset manager. Furthermore, BlackRock’s groundbreaking collaboration with Jio Financial Services Limited, it could revolutionize India’s asset management landscape. In 2021, the company expanded its capabilities by acquiring the Climate Change Scenario Model and the services of investment management provider Aperio Group. Over the years, BlackRock has adopted an aggressive acquisition strategy, progressively widening its reach and increasing its market share. The most substantial of these acquisitions was the 2009 takeover of Barclays Global Investors. Bolstered by a robust liquidity position, the company is well-positioned for future expansion through strategic buyouts.

Products diversification.

BlackRock’s diversification of products, revenue mix, and consistent growth in its Assets Under Management (AUM) all contribute to a positive outlook for its top-line performance. The company’s strategic acquisitions have been instrumental in driving AUM growth, resulting in a CAGR of 8.9% from 2016 to 2022. This upward trend has persisted in the first half of 2023. Though revenues experienced a decline during the initial months of 2023, this is expected to reverse as the company strengthens its iShares and ETF operations. Projections indicate total revenues will grow by 1.2%, 10.2%, and 15.1% in 2023, 2024, and 2025, respectively. AUM estimates suggest a CAGR of 8.4% by 2025.

Capital distribution.

BlackRock’s capital distribution initiatives have been notably impressive, featuring annual dividend increases. In January 2023, the company announced a 2.5% rise in its quarterly dividend. In the same month, the BOD approved the repurchase of an additional 7 million shares. By the end of June 2023, there were 6.8 million shares remaining to be repurchased. Given its strong earnings performance and substantial liquidity, BlackRock is expected to maintain efficient capital distributions, enhancing shareholder value in the process.

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