BlackRock (BLK) 14 Jan 222021 Q4 Earnings call transcript

Good morning. My name is Jerome and I will be your conference facilitator today. At this time, I would like to welcome everyone to the BlackRock Inc. Fourth Quarter 2021 Earnings Teleconference.

Our host for today’s call will be Chairman and Chief Executive Officer, Laurence D. Gary Officer, Financial Chief S. Fink; S. Shedlin; President, Robert Kapito; and Counsel, Christopher General J. Meade. you. Thank Instructions] [Operator Mr. you conference. begin Meade, your may

everyone. am morning, Good I of General BlackRock. Counsel Chris Meade, the

during that call, these begin, course We number differ call we I’d from to to statements. results statements. you Before the may attention fact course like of forward-looking of actual may we that this your make BlackRock’s a remind the of

BlackRock cause to was which materially As you any the of factors say results that [Technical forward-looking of no undertake we know, what some may assumes duty differ the from Difficulty] statements. BlackRock to BlackRock today. not update

that, I with Gary. over to So turn will it

It’s Good and present results my I Thanks, and and Year New for hope the morning fourth their to year remaining everyone are quarter XXXX. everyone. healthy. pleasure Chris. families full to Happy and safe

results, I Before review on as our BlackRock’s release operate. I invested discloses will both our in commitment and we have results, be our communities serving financial financial always, a to it with and while over clients, we our focus and to business focusing primarily earnings as long-term the history, turn GAAP Through our I will Larry, performance business systematically employees, in which and shareholders consistently results. as-adjusted adjusted and

assets long-term As premium reached growth management organic grew organically even a versus ever XXXX, under in to the these result our our expand at as and of we investments new our continue fastest industry highs. rate

growth levels areas seeing the $XXX our XX% year. generated priority growth of strategic and singular clients of inflows whole asset These organic they drove investments active representing have XXXX, and China. today. in platform record during significant of BlackRock reflect X% fee recently base franchises and ETFs, a and ESG We in private markets, Each are develop to investment portfolios focus organic the growth. technology, construct driving our billion continually invested are leading helping industry in net in resilient on all we more growth

billion despite net of Importantly, reflecting year organic the $XXX annualized of total we momentum, generating growth volatility, quarter inflows, fee fourth finished X%. with strong base

with management robust Continued entire from tax the strong flows iShares contributed fourth franchise, and typical our flows, growth. benefited to end year rebalancing quarter’s record active which organic from along

our billion We the versus $XX.XX billion XXXX continue and our $X.X to return build reinvest of billion of year XXXX. of our us in business, and model stability results approximately was XX% to income deliver to financial XX% as out allowed record platform capital in strength revenue $XX.X was operating aggressively XX%. up rose shareholders. of share per $X.X Operating Full of up and earnings

X% For ago, higher effective gains and income investment up included reflecting net non-operating the of $X.X for tax a quarter, of was mark-to-market results our total from up per a a income by XX% the year investment the of share XX% earnings quarter portfolio. lower of $XX driven primarily in rate income, equity Non-operating current private in quarter. operating million generated and $XX.XX, BlackRock billion and respectively billion, Quarterly revenue $X.X ago. year fourth versus

year. and AUM, over was data strategic may driven in X%. and XXXX, potential on Fourth for discrete quarter rate or quarter fee XX% though revenue items fourth last average by pricing or lending impact the year-over-year, of $X currently year billion securities partially of fee projected Sequentially, Our market and higher changes driven base securities revenue up was growth a versus discrete base tax up items. base as-adjusted discretionary differ investments money the a and legislation. rate tax approximately tax the for in XX% XX% that effective the actual lending was rate fee estimate by offset non-recurring quarter XX% We positive market approximately by fourth because fee waivers primarily organic ago reasonable is of part tax

end basis of growth revenue the as the bringing the approximately Our of and fourth current accelerated was third incurred equity waivers impact offset full decreased by for $XXX divergent two-tenths more discretionary rate $XXX quarter. total quarter than the third positive We quarter into million point lower fee million from by approximately as strong quarter, fee lending the annualized fourth impact securities effective of quarter, to essentially gross the negative support year. base quarter beta, organic of a the which labor yield same in in continued the

fee of shortly Given near increase most Funds term, now the the the see these resulting increase effective higher rate. in these that to shared fee Recall with XX we point anticipate prospects reducing in first would Fed point on rate, in after basis the current waivers rates the waivers of for XX% a basis operating impact are annualized approximately distributors, generally income. our gross X.X

increased increasingly were carry increased more year for For our to a up liquid XXX% and XX% we alpha across billion generated year-over-year platform year, than ACV, demand doubled or of a balance billion platform. than full performance ever. and from Annual end-to-end the strong of over unrecognized more reflected revenue and technology our markets as ago, diversified, $X.X to our Notably, than to continue and low fees since ACV our ability SaaS value, revenue Aladdin’s continues in we have cloud-based ago solution alternatives scale. year-over-year year private stronger services billion, confident Quarterly generation XX%. fees growth to mid-teens compared has contract which performance to XX% as delivering record $X.X year remain deferred is increased $X.X was

as growth higher fund Total capabilities and whole in order driven investing scale of demand G&A XXXX the high areas its private next Aladdin for and to leg are markets, expense. such in extend expense heavily in wealth primarily portfolio, XX% compensation, to our by direct increased We sustainability.

comparisons growth compensation expense in compensation operating higher marketing increased compensation of by higher promotional expense, final reflecting portfolio year-over-year the higher and For and income testing fourth G&A year, which relevant, driven and technology in higher expense the COVID expense. compensation full by quarter costs less reflecting XX%, deferred year compensation services salaries we higher and determined fourth base higher year-over-year, are expense expense Recall that because higher increased Fourth expense. T&D driven included higher and occupancy full expense, partially quarter quarter. XX% incentive

market offset Recall index For ESG increase up portfolio in and to fund direct the rebates G&A was the our year-over-year, related year, million average fund by data higher expense, revenue seasonally quarterly launch associated and sub-advisory data $XXX increased reflecting expense XXXX of compared driven the to aggregate wins included and was XXXX spend exclude portfolio which our by that fund of approximately million Aladdin support investments in G&A to as-adjusted fourth costs tech index support to occur associated non-core quarter. franchises higher our higher cloud AUM direct of we OCIO reporting that full core spend two-thirds Sequentially, excluding with expense broader fund services fees. Increased productivity the costs, are significant cost Approximately base to due $XXX expense improvements. AUM. impact primarily operating attributable and when migration largely average technology, year-over-year despite to XX% services expense launch index declined of growth. and our technology XX% margin. was XXXX. increase in all of core drive data G&A The expense, which

expense acquisition, intangible million February due year which increased in $XX full amortization closed to Finally, XXXX. year-over-year our Aperio

year up as-adjusted margin was versus full points operating XX.X% Our of XXXX. basis XX

our to the committed opportunities Aladdin’s invest deeply Aladdin us as At to growth, we more to in expect investing as the Our to never aggressively of a and differentiated in Consistent cloud as to people, we continue generate capabilities and pyramid present, we for on business by to our we footprint to advantage support future centers. promote open continuing increase XX% XX% infrastructure innovation new continued with would delivering remain can and cycles, core growth We are over optimizing expect the headcount growth has and increase migration, record also platform continue and strategic growing take G&A innovation. before targeting operations been by to XXXX. with our through organic client market our and to focus again priorities and roles including positioned scale completing long-term. during would we to technology platform iHub responsibly ambition, XX% much so this once junior investment talent

We are BlackRock prudent investing position to use through also of balance best our for success. sheet continued

our During XXXX, seed approximates billion $X.X our to end co-investment new and year growth now portfolio $X.X capital allocated we billion. support and of

our to strategy strategic to various for invest reinforcing we see minority opportunities elements physical accelerate and the and shareholders. inorganically areas, climate which of to transition growth building we when simultaneously capabilities very Baringa, we as be investments Aladdin. Our growth of strategic continue And returns are will within organic attractive our our generating our key through best-in-class risk did of acquisitions critical ESG models Rhodium and in

$X.X We also stock, share of we XXXX, and and shareholders XXXX. our valuation over outstanding capital stock in conditions, of strategy shares committed billion shareholders. a inception dividends an our the the XX% present, relative our cash during we and systematically remain of subject current generating now plans year have excess capital and repurchase through At to billion to market an repurchases annual shareholders returning $X.X of by targeting for management combination to are shares Since reducing our aggregate on of billion compound for the XX% unlevered $XX total price, BlackRock’s based spending to returned repurchased XXXX. of including in return of

a representing XX% of In increase current share, Directors addition, quarterly $X.XX an our of has of over declared cash Board per the dividend level.

early coupon rates a our XXXX. current BlackRock’s new completed and of issuance interest billion notes of and successfully to debt X.X% in $X raised debt Finally, coupon, June stack. notes X/X December, X to advantage $XXX in pre-refinance we the lowest XX-year dollar U.S. We with second million take the low

inflows of product and on relationships were and for fourth income and of of annualized in the occurring are XXXX, across accelerating in fixed across been in and inflows investment by grew our strength X% AUM inflows and you BlackRock’s of We deeper the year base redemption $XXX some largest reflected sustainable all representing $XXX both choice ETF the sentiment active full also rate by inflows billion investor net offers our seasonality, our with continued in express net objectives Larry, strategy billion and for driving portfolios after flows client investors doubled and our positive and nearly the and second particularly focused Sustainable fee regions Fourth environment. mutual market equity return, in $XXX and equity active top growth, growth, ETF outperforming and organic of and to were a also of most types, gains with inflows active fixed macro the XXXX, growth retail X% full in $XXX contributors institutional helping ETFs risk clients base continued Record franchise. risk-adjusted tactically total reflecting our remain generated of well assets all representing meet $XXX billion generated of into to flows. retail base significant flows performing ETF ETFs $XXX internationally, even needs. $XXX categories XX% partially disclosed exposures the on organic of net inflows net high platform. and fund our BlackRock net but alpha both yield fixed credit seasonal product income organic across shifts top strength XXXX large AUM clients reflecting low billion by platform use asset them our Fourth Institutional for to capital across record more net BlackRock’s rebalanced product franchise As billion quarter to our billion in were diversity billion, secular gains asset fixed of and of $XXX cash. ETFs also fee and billion $XXX dividend reflected in led broad-based shifted generated and inflows from segments, to representing fourth more flows the billion total saw organic of records reinvestment. net meet but trends, OCIO or market. index fixed and clients’ double-digits, hear $XX our broad-based fixed positioned previously funding year of quarter outflows in as growth. during impact similar relentlessly the industry. XX% has U.S. strategic reflected quarter, strategies our diversified client precision net and income income strategies. Record to strength one financial quarter in broader significantly quarter yield the core, platform Retail mandates. the organic growth but positive during $XX our years. styles reflected active always fee organically income performing We were many billion platform. broader and offset significant reflected across institutional the growth XX% net segments outflows, needs including guided by their income fee unconstrained, entire any several included challenging environments We billion, the and year. Clients will several broad-based year

fixed income in seeing strong our are fourth momentum by OCIO core We business, significant quarter. funding the evidenced another in

our client helping event-driven the by and pure XX% in growth equity, franchise for growth their during remain strategies world equities active record performing for inflows clients and demand $XXX strategies, retirement. growth to global fees by in of Across across $XX institutional income growth into led year, with and the institutional top strong a capital committed driven for aggregate, variety the of for billion X-year of our representing alternatives retail taxable active performing well medians LifePath assets billion above date around our or and trailing sciences in equity of multi-strat for over over funds. for as to plan performance fee liquid continued We a the X% U.S. led our organic billion approximately benchmarks potential Overall, fundamental net growth inflows notched committed types, $XX technology, respective also and also with We and investors Total we for remain future in our target as continued, XXXX generated alternatives active channel future active strategies health significant record institutional In quantitative credit, full and to and period. of base and and have invest hedge saw in $XX platform, equity franchises strategies. well systematic positioned active fundraising of BlackRock net deploy fixed base fees. illiquid million infrastructure a annual the alternative year in XXXX.

in of in quarter billion scale, we the generated risk and inflows billion grow platform on of in share environment Finally, net by our It BlackRock’s technology, a to has been cash net rate for BlackRock. $XX management as inflows continue another persistent $XX fourth strong behalf of and leveraging clients. low XXXX market product breadth, management year

global whether and the us more to challenging well-positioned industry-leading differentiated business or growth good allow diverse organic to investing sustain platform continue and shareholder our future, remains markets model and Our in deliver value. for long-term scale incredibly ones

will we all that, Larry. will it I turn organic growth needs most With commitment possible and the responsibly to to meet Our of optimize remains to way do in stakeholders. efficient the so over

the Good I all Gary. a you relentlessly investment history, clients have season you holiday healthy and on you and thank joining Throughout goals of and we hope safe. staying BlackRock’s you, challenges. morning, meet that our focused for complex call. helping everyone all most happy their have solve are their had Thank

most continually our technology We comprehensive to and and the to and and anticipate platform. deliver business evolving changing meet invested and reinvested needs clients’ our have investment in global

growth. benefits in in growth We XXXX our $XXX under of reached history truly XXXX, new investments. fee management results those generated record the as strongest representing the organic delivered base net Our our even in inflows demonstrated XX% organic billion a assets BlackRock highs.

inflows, X% have We billion relative to of with organic strong expanded base to reflecting $XXX premium clients ended portfolios. their relative seventh our growth of organic of quarter our more as we fourth above net quarter And competitors industry, momentum continue with growth fee year target. consecutive our entrust our to with the also our the steadily us

been. inflows. ever inflows alternatives, platform, than $XXX net of diversified more of is growth ETFs half our remained billion our representing nearly XXXX, Importantly, our active it’s our revenues contributed driver record In significant including results. $X.X business by $XXX services of billion. momentum entire record XX%, with across financial grew drove And a strong This billion. our technology flows growth reaching total

BlackRock Two delivered and ETFs at our into the growth operating the pandemic, For same expanded growth, XX% growth, year, XX% confront years time, we the revenue XX% to continue strains. income margins. virus we new

are focused the to is today. and technology the energy forward. transition given are we We’re energy changes significant clean are levels BlackRock traditional we United people see as economy between restriction the XX-year divergent on in time investing bottlenecks of and demand shortages high choice inflationary They goods several hold. States will differential that and gig services rate and higher about quit need cost in they value coming always confining change, Meanwhile, shifted as to country certainly move has why Labor our breadth country solutions. more the of is supply ahead approaches savings. a we uneven household BlackRock’s optimistic by spending ever inflation so They And of has BlackRock the at Consumer clients’ as confidence transition home structural recognize And from higher even employees. economy. more they in take has to insights, technology navigate green reached more inherently benefiting that an evolving needs as staying from been has global before. ever chain The the value have reflecting value our they causing people and the worldwide. our are to than of footprint.

As portfolio is more the across with clients deeper building result, partnerships BlackRock world. throughout a whole their

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confident Gary tailwinds, growth economies markets. diversification equity – area. to the for Infrastructure, returns. an well above period. and to growth client in nearly a allocation this raised mutual BlackRock build our future fix demand. they median strategies in real their for important significant and looking meet or for in and secular of X-year incredibly rated and system search has of U.S., as has to capture higher to credit, of example, investment for a fundamental private Morningstar and our remained BlackRock X, in funds ability that increasingly either positioning will private active well are performance benchmark increasing funds built to be Morningstar private broad opportunity or record As our Clients infrastructure, alternative of our equity in And are strong is engine estate driving accelerate growth. us positioned their leader a peer in across retractable for platform active a with stimulus X a fiscal XXXX capital as are XX% billion $XX We XX% our discussed, XX% future. for

of the one renewable of the one in managers power are of client We largest including with the infrastructure largest assets, $XX industry billion over platform.

and iShares BlackRock for in generated in forward also grown have our innovative each demand first crossed years. was $XX the $XXX time fixed than a the each asset first-time over of our of the and our asset the this our as and the over strength client for managers billion many billion accounts strategies core product global We Growth across billion macro years ETF of X for in and more and record year ETF precision of driven first XX our fixed for income wealth who had last as net nearly raise inflows look from greater to and ETFs We net owners, in categories environment more a platform self-directed in $XX by We last $X partnering approximately income industry despite X more recently, our sustainable ETFs for strong of billion saw trillion ETFs opened into XXXX. clients asset iShares funds broadly. class. new $XXX and annual flagship inflows the time. challenging investors income including new fixed inflows managers, saw ETF globally a adoption more launched fourfold we record million with vintages categories. in into investment

them range generation default enabling ETFs broad comes ETF for in markets barriers access down, to the new are of way product part a vehicle more using our investment of a bonds, way. and more inflation investment base, and many whom looking And across our both the ETFs sustainability for Our a client as market investors active of from choice Worldwide an in exposures and are is growth are increasingly vehicle. it range of active the exposures, bonds, and adoption benefited of a of diversity ETFs passive portfolio and of are to increasingly municipal their construction. emerging rate of as becoming diversity accessing

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a in in billion momentum accelerated. strategies investments client XXXX from net XXXX, we and ago a billion as a our choice now remain record We sustainable breakout committed of demand $XXX continued, AUM, in innovating more Following manage sustainable $XXX and than generated and to sustainable inflows and for double clients. expanding for year

opportunities the be of generation our clients navigate helping this economy. will global zero One the biggest of transition to net a

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ambition else. capital is more into than move Our to anyone transition

remain focused beyond. on for and platform We an next annual evolving investment in a Aladdin into differentiate continually and year-over-year. both We multi-decade Our asset as BlackRock billion generated leading continues $X.X provider. manager decade Aladdin technology fin-tech revenues, up technology the to XX%

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previously of Our quarter active inflows strategic billion fourth a included $XX income insurance mandate strong a from announced fixed client. large

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to long-term to enables us fulfill ability and Our our benefits client address purpose challenges drive performance that all stakeholders. our

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Alex from with of the first [Operator Sachs. line comes Instructions] Goldman Blostein Your question

open. Your line is

Hi, New Alex. Year. Happy

morning, everybody. as New Happy good to you Hi, Year well.

this for maybe question we just across record in start equity, in active the board, will XX also with you dynamics XXXX. asset then great also into etcetera. active year impact sustainable increases you year, allocation flows do could ‘XX. I And Clearly, a could how How guess, was expand income BlackRock could months? hoping decisions on I be, fixed to a around think over faster next the in rates XX So trend the interest

cold getting Sure. me. from my I’m over grandchild. Excuse

fixed built which income The quantitative of to income fixed in over BlackRock active fortifying we our really strategies, of our our last led where teams and our platform, years our out both active active our the investment illiquid BlackRock many performance. and over our BGI in X great to with equity the transformation space approach that history results manager, equity development of fundamental one is years, recommitment of strategies Our core was acquisition of an work. fantastic

from team, the you’re large of over Alex, billion was of The portion build-out our retail that channel, $XXX years, of and active. our aware build-out this, X addition, RIA last having in the our of distribution globally. inflows In

them, too. too. strategies teams not led built building active worldwide. well-positioned to be businesses, fortifying investment distribution And out with it and to strategies in choice our of continue from investors out was also more but our clear, side ETFs That’s just active more our of flows as all were be our building a many it’s let’s and a So

having major to my portfolio organizations of their to inflows for thing position from types in both best in organization a positioned interface the continue world our our So going I and we active looking balance and technology and quite We large meet an I index that bit model board, positioned. looking across to business prepared products those in sheets, the that great of remarks across to of our the of is, And about organization would insurance opportunities. to billion be we And it’s a that can company, well whole was clients, talked of the and are think having well will approach. probably endowment. $XXX are say a the I represented believe build more outsource whereas because performance, fund an XXXX. the components other are whether pension with this more quite

cornerstone a has is Especially And accelerate going momentum to going whole so I more results. saw flows continues that area to in been is that portfolios, this illiquids think in and really more success. the be forward. our our driving to active our going success if sustainability of be in of anything, in XXXX Obviously, OCIO and driven we

for am and I our beyond. positioning optimistic So, extremely on ‘XX

In rates, see are to rate. rising to are how we rates believe the to resulting is X.X-year, going of questions rates, If XX-year what be rising for that Are The how out which with a it rate. The banks we BlackRock we opportunity flattening a that going X.XX-year, short-term is are in. biggest to question we important. have a is steepening going to and curve. on going really depends real say, that to mean see of very raise Those to be forward suggests and be does rates rates, going plays is curve, a yield tend let’s how curve I rising we terms worldwide. do steepening part flat yield a yield have we of on. did have there central XXx, yield more Xx I the conversation all have with flattening opportunities whether have, a the rising our will we the we curve, really believe positioned investors curve

thing one for jump I on Alex. rates, just maybe can Larry, Yes, in just the

just for obviously, strategic assets the between things. One rates obviously, and our matched known. liability. institutional sticky of of sure. for I highlight is and primarily think is that is a – AUM, those are $X.X couple And very going dynamic But are I think up both our I trillion level would well

obviously well So, we have terms Two think very our very positioned are fixed assets. we income we platform. of is sticky in broad-based

return or short duration. it’s unconstrained, whether yield, high So, total

have we think got I that.

ready likely rates cash we a if really more is sidelines. for So, I bunch And is are rotation. up, importantly, the off a of think go to come

about year think And we of all point will amount incremental basis We will And million have annualized business fees I think into move so mentioned first as asset with quarter. increase and as rate. last to a in people we as effective talked a the XX other that those X.X classes. fee waivers. drop bottom move the the point that our that come free our that we while have line. roughly waived in up as my enable $XXX distributors share that cash importantly, Fed, early profitability half And many us basis of very first our could of to about cash obviously, That basically significant will remarks, by will of on almost that that

Your of comes Bank line question America. from the of Craig with Siegenthaler next

Your line open. is

Craig. Year. New Hi Happy

Hi, good well. morning are Hope Rob, you all doing Larry, Gary,

want just $XX trillion. asset reach manager congratulate on to I you to first the being First,

Thank number. you. Well, just it a

door been I focus State as business. So, regulator has on an of ETFs company my do a the ETF insurance York bonds this you question income open think the update clients? larger of a instead is We capital to just could saw but the the published on while, know this allocations insurance treatment that equities. from for ETF your New fixed

Rob. you that I to think give

question, great a That’s Craig.

permits treat you which the bonds playing Financial capital. field everybody firms portfolio. an insurance end on XXXX, bond towards catch a of bonds insurance to with ETFs of bond ETFs puts the published to Department for risk-based in New purpose the saw up liquid level diversified a like Services of rule As this York And

initial rule, ETFs. optimistic growth. very interest Because just gaining come level, small we XXXX really we believe a sign so decades another this of the And ETFs unlock know future excited going from trillion how an trillion to So, in we of and part $XX are to And $XX we reach that is are that capital growth that ETFs as this past, why far And are you by today. We is client increased expect as the by of are that. there feedback have which of markets, understanding. the would to be said ahead. this still still even could lead ETFs are at think we to

the about now ETFs to but and by question represent that use you. insight insurers portfolio, we will are excited so good And very fact more good a bond their a

Your next question Stanley. from comes of Morgan Cyprys from line the Michael

line is open. Your

everyone. morning Thanks Hi, the Happy good New taking for question. Year.

I update Just was number could ask lot wanted on your just on a of Aladdin, you us to initiatives. of hoping

a have guys going from where partnership, to could to there Azure expand Aladdin stand. progress initiatives they different the Snowflake lot the those on You on upon Climate. just Maybe migrating Microsoft you

that ahead? how of see been stages a little bit from earlier unlocking revenue early them sort clients, could feedback of that talk left Some built than you What’s you What’s others. out? and maybe growth the

and I tackle Azure me Snowflake. of Gary will Let and comment on Aladdin the the progress with have scale Climate,

comprehensive more companies more for their especially Aladdin for is opportunity remarks, markets. and as working, in expand an I really looking said the a more has platform, owners with asset investment whole of opportunities Aladdin ability accelerated, the highlights Aladdin and solution my more strength are a navigate and firms, to and platform insurance having and prepared to remote client demand As portfolio

more some As now And are be, Michael, connecting and on combination the managers whole in Aladdin investment Aladdin of Aladdin, suggested connected. rolling And of Aladdin ecosystem in wealth Aladdin with end-to-end. we my that extended to forward. its custodial users continue relationship, principal right space as we it our growing the the across mind, is eFront Aladdin of on whether to one will user then intersecting already sites is where Aladdin alternatives, that. built the drivers out, every provider, airline utilization connecting the And and for you of out really Aladdin of to entire the beta Climate. out going of utilization Aladdin Wealth, having them greater

the use, be greater I now Climate questions with risk measurement. as provider are add risk, Aladdin would I it with one great is can more people asking going utilize. Aladdin but forward. one of do across and a optimistic so truly And for am as do understanding Wealth will that tools incredibly terms to growth believe Climate need X believe and as years Aladdin the accelerated for Aladdin the that going are I measurements could mean is in Aladdin and people related other open there it about is many the we more the Aladdin I that last utilization quantify and opportunities the strengths for essential also one And drive over all I And to Climate why of have. Aladdin. of to how portfolios, you regulators

to them. We of user are models Aladdin their now are put own every proprietary in that allowing to

has as is to of communication to And operating to of doing helping become client, that the infrastructure Aladdin money, and And navigate been ecosystem the of has about what owners Snowflake. a asset bank we of then more that, the and system. I money your So, allow the categories, risk a infrastructure Aladdin system, having create in more across a management transitions Aladdin really the Aladdin. and custodial an the will are risk to Azure system resilient related is managers of and Gary proprietary own what Aladdin great not to monolithic dovetailing one to communication asset talk

Thanks, Larry.

of cloud, specifically asking think were about I comments. a I will give couple Mike, you just you So,

us data And mean data Aladdin the I both managed to with are migrating particular, localize Microsoft, BlackRock to a for partnership obviously and are of capabilities cloud. Aladdin brings clients. we We ourselves from four number to think hosting. that that, the centers big enhanced in

APIs As part strategy to of own Larry that our both and growth talked open express clients about, Aladdin, competitive looking a as to data ways where differentiate their help advantage. to them in key are use really and really unlocking

at demand elasticity going and data migrating us we computing support greater our help to finally, client accelerate to to clients scale innovation the We as see use are cloud looking increasing. to and clearly is

on making investments solutions. what future. of importantly, consider beyond mean just needs we the cloud. really a whole More the I to are investor portfolio address for though, the Obviously, the focus it’s we

Aladdin solutions and non-Aladdin and You flexible be is going I also analytics, data connectivity will of important. eFront, where tech talked very sustainability and know that in and but to We will we about acquisition one be platform, about, about capabilities that talked bring ecosystem allow both data critical. integrated combine which data, together our just to public we which clients think private

about in anticipate XXXX. plan of and two-thirds is those of first likely of migrations ahead initial client the complete with the That completing our we remainder are our half migrations. We client

Brian Your question comes next from with the line Bedell of Bank. Deutsche

Your line is open.

the that for the Europe. a in you talk differentiation. This well. I been about has in investing. And just pace Obviously, carbon market. Europe on of view making decade long-term talk know about recent maybe, you Great. trillion the you of of Thanks. don’t sort then mark engine over U.S. what seeing growth transition back be do? if $X And are well how you Year. be of trends to targeting demand also XX% maybe momentum have the continues. product a what area? sustainable type term to $XXX longer this that way Good billion, organic is But investing. continues the more morning. just on about over your on your versus just before from could now as if circle end sustainable on you Happy opportunity on But Larry, that looks developing in nearly a to to are at Maybe And of such can growth. It that market like size investment you New if well are you could AUM are products

more related we that billion saw in is and seen $XXX by billion have $XX we I billion interest about in tectonic Europe, And question. the in of evidence think you And Thanks, suggested Great $X in APAC. flows made large to from statement today. just U.S. we to shift flows $XX investment to sustainability. from to which worldwide. in of the Well, the occur billion XXXX we of Brian. went And continue a going rising in world. XXXX, EMEA, $XXX sustainability we billion see XXXX, from

those opportunity in flows for area I will Europe, lens, flows, it’s start In do to growing. by different awarded as coming sustainability want not we on the is looking you believe are in all is today. be investing not able to of Aladdin is are be evidenced mixed as us. and in think the are It’s of greatest still and those technology. Europe a to big looking at It suggested. United institution, new power will the you if all. as years. this a – we but depending create investing a an the spots component the portfolios, continue that opportunity to this investment is we this portfolio a, driving are clients – today. in any Customized I customized quite opportunity And new you have for States, it’s growing risk. In an because, sustainability The mandates I investment in a and

we my transition. already as so if heating economy like Even unfair the without Spain a countries lead tomorrow technology, caps green costs And to sustainability energy we we I have like France energy are focused rising said and that remarks, move European that. prepared As capping other in prices, witnessed with an governments and in have things seen places the and to new to unjust to going it’s many and on so consumer.

green green are sequestering create the hydrocarbons. going it who hydrogen over is find So, companies or line. in for to companies and solution. part going to blue to the very working whether is long very who to as long and new investing for be – the and transition going of working cement solution. discussed The and is be a of then years, be It’s investing start-ups a traditional or green with solutions It steel new ammonia part to a or going it’s very hydrocarbon straight this opportunity to to opportunities is not of blue are be I new with agricultural be in

is climate be power believe for huge And going for believe I opportunities we are going going be great. there transition to be new this to going investment So, opportunities do technology renewable forward. to is –

a don’t carry it’s new side-by-side you portfolio current it new of Gary, please? investing about investing too, technologies companies also So, sustainability, lends, start-ups. navigating but in combination on with as and in and talk your opportunities in hydrocarbon the why or

it, got think I you Larry.

additional just on key there the flows. I flows. of the specific you on all question think in unless terms was of you the mean anything parts I Brian, wanted color hit

sustainability basically U.S. about I think mentioned year. Larry being the the XX% captured it. EMEA of billion. flows Larry was for $XX

that notwithstanding only I a of U.S. But those captured otherwise, it’s the about still up it. I think importantly, XX% third think Larry, was flows. year-over-year, you

Thank you.

Okay.

and Fink, Alright. gentlemen, a Mr. we have Ladies do have lot for reached any questions. of you time closing remarks?

for you, all today BlackRock. us interest I your Thank operator. thank want joining in continued to you and of

believe where And durable, Talk be we for operate If full shareholders. to Our needs. we our what months. the biggest remains result in fourth and in Year, clients, we beneficiary. people, investing stay are long-term all is you I healthy ahead. our communities continue all we Rob, in going we their well, a tremendous direct now. see could let’s us in from the investing needs. stay to and our on BlackRock’s our to New focus quarter do enabled a great And few start hopefully, and of of and and in deliver you the serving to to our do and again, front shareholders opportunities you and commitment long-term all hope hear clients’ investing have Gary Thank I the strong, a is to returns year those safe. of performance our this Bye-bye And anticipating has for

teleconference. today’s concludes This

now may disconnect. You