BlackRock (BLK) 15 Jul 242024 Q2 Earnings call transcript

Good morning. My name is Jennifer, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock, Inc.

Second Quarter 2024 Earnings Teleconference.

Our host for today's call will be Chairman and Chief Executive Officer, Laurence D. Martin Officer; Financial Chief S. Fink; Small; Robert S. General and Counsel, Christopher J. Kapito; Meade. [Operator Instructions]

Meade, Mr. your you conference. you. begin may Thank

Thank Chris Counsel Meade, operator. the you, Good General of morning, BlackRock. everyone. I'm

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

that BlackRock has what some filed reports cause SEC, BlackRock the of lists factors we from know, with of which to the you may today. materially results the As differ say

assumes undertake statements. forward-looking BlackRock and duty no does to update not any

So with that, I'll turn to Larry. over it

is Chris. weekend. the very was relieved abhorrent. occurred like I'd And killed. by begin he over wasn't you, seriously The addressing thinking of on the attempt person victims injured. about the what innocent who Trump I Thank assassination I'm shooting, was to President the especially former

following As united Americans. I hope and event as our our my in for we BlackRock we Saturday period. colleagues wrote to promote all hours part provide to do unity country condemn stand violence must for kind, of the Americans, and evening, And any horrific to must political civility immediately the

I'll it to turn Martin over now.

morning, good everyone. and Larry, Thanks,

Before results financial to for I turn XXXX. Larry, business it our performance the of and back I'll review second quarter

financial be focusing I'll as-adjusted and primarily results, Our as-adjusted earnings GAAP discloses release our results. both on

entrusted flows, second record $XX.X of client $XXX billion in $XX with excluding highest X We trillion. base growth growing some We our than X% and fee of AUM income by net saw was the quarter generated and of quarter second of It the strongest quarter new delivered assets. We're first The rates year-over-year. basis second points margin We billion organic our double-digit last highest faster annualized episodic years. XXXX of ended Clients over XXX performance BlackRock's half us post-pandemic growth, activity. expanded period. year. operating with and of growth over

and Our technology markets our aggressively and line set putting base organic business swiftly fee sight the growth. we've our a in strongest them blocks our year, all-weather fuel moving into mandates long we position have seasonally and the seen and of our We're target into putting the building future of private asset accelerated, on At ever core to opportunity in should executing X% business and We're we're over that Infrastructure be tends organic growth of exceed technology. premium firm management global acquisitions to We're the same or for stronger Preqin. opportunities of achieve and to of new place term. time, Partners with the the the that's growth organic Global back building half broad future. planned

like growth scaling technology believe markets, We're both earnings building and can and drive multiple active. cycles. our by this growth secular resilience through strong mix and of areas We and and whole technology, revenue towards and ETFs earnings portfolio markets for model private will our organic mandates and we growth higher greater diversification in compelling platforms, powered Through shareholders. we deliver our expansion private believe portfolios market

indexing portfolios, corporates long-term the relationships the wealth in trillion private they shareholder aligned trusted At markets. public management, in our fuel investors, markets. global And and trusts, highly relationships, sector under We across clients. creating infrastructure especially platforms, iShares becoming public corporates. continue units is and partner advisory assets and Through more of long-standing power capital and benefit sector. capital a markets. unique the organic premier opportunities they We're with private Through $XX.X and governments to platform to relationship transactions, the developed the connecting growth. with than are build of These for to XX.X partner our our clients' BlackRock's technology a the trillion capabilities, of of our and public we've we're

more In in the power missed clients on to cash second starting quarter, are record more and to investors assets. returns back significant into have the high stepping waiting rerisk. year saw equity Investors we out over markets equity another market and risk last

a BlackRock growth. is deploy as historically most thought investors when motion, their partner Clients as they a there's BlackRock periods eager rethink winner are its portfolios a BlackRock's and when share coming to sees technology. outsized are when or in platform to assets capital as investment leader,

in We diversified the continue has client And or liquidity income, chosen that markets assignments. few contracted across we've opportunities been most to equity execute mandates the multiproduct are Aladdin near-funding a large the and months, been years: of fixed over in and customized for of past active contracting. set broad and private accounts, late-stage is strong on slate

growth. $XX inflows second organic in organic fee BlackRock X% of billion the asset generated annualized total net base quarter, and X% representing annualized

redemption impacted $XX a large client income active activity. billion M&A approximately from to Flows an were fixed by linked insurance

Excluding item fee billion and index the total inflows nearly we saw net of this quarter. $XXX institutional single-client in specific low reflows,

year-over-year, Higher movements Second fee over services and revenue impact the driven organic positive billion of revenue AUM and performance quarter of by market revenue months. technology on $X.X XX growth also contributed growth. fees average base was to X% higher last the

share year-over-year. $XX.XX each income of and of billion up earnings were per XX% Operating $X.X

net investments. for by the of included and investment seed primarily on million results mark-to-market gains Nonoperating noncash driven gains $XXX minority unhedged investments our quarter capital

second the XX%. Our as-adjusted tax approximately for quarter was rate

We rate items The legislation. projected differ nonrecurring of XXXX. tax effective run because for is actual continue or tax or reasonable rate of that remainder in changes discrete may a tax to the potential XX% estimate

base lending lending the of our in and current X% Second impact revenue year-over-year market base organic was quarter of X% growth was fee AUM up base base and partially reflecting average offset fee fee annualized up lending reflected appreciation and securities growth $X.X and revenue securities revenue. positive quarter. lower billion the AUM, X%, average higher securities by fee organic Sequentially, and on

quarter. the spot recovered X% AUM April was first effective than compared annualized after sharply was flat average Ending Our markets declines. quarterly as fee to AUM rate higher

Performance increased driven and year from technology by XX% products. liquid sequentially, XX% go-lives. ago, compared up revenue reflecting Quarterly a $XXX alternatives up a was ago services fees long-only X% successful million both client and of to year

of or value, have multiple this XX% contract logo range products. XX% come technology demand sustained year offerings. from new for opportunities, full Annual sales ACV, year-over-year reflecting increased our of Aladdin including

ACV low have We a multiproduct mid-teens to growth the long term. strong remain committed to over and pipeline

ACV range. target Preqin is our expected growth to accelerate planned services within technology

higher higher prior by as increased income driven in G&A and reflecting year-over-year, sales, was professional benefit G&A X% a higher Employee incentive primarily expense. year up incentive operating primarily compensation and expense expense. was result timing compensation, X% and asset higher year-over-year, expense expense X% account Total and fees. services year-over-year the up due and to performance of technology spend of the compensation

by as X% average year X% expense higher Direct X% Sales, primarily compared fund account a driven a ETF to direct higher asset fund expense. result sequentially, and increased and ago, primarily of AUM. expense increased year-over-year

on margin ago, reflecting revenue XXX of Our year basis positive markets from this a quarter. as-adjusted of the and impact up XX.X% organic growth points was operating

rubric our drive expect execution profitable operating improve, and growth to leverage. financial on markets we As

count impact Global XXXX present, at line expect related be head and of Infrastructure G&A transaction we percentage increase expense. Partners, In costs, expect Preqin XXXX our to broadly we in a would with excluding and our flat guidance would also low and the to in January core in mid-single-digit

excess to where our support strategy scale capital share dividends to business return an to we to either first, remains, growth a efficiency in strategic and initiatives investments growth through management times, opportunity invest see Our combination initiatives. accelerate to repurchases. operational cash At we inorganic shareholders make or drive and and our then may of strategic

relative we previous We the opportunities for rate of January. guidance shares per which in exceeded repurchased as million for saw the on $XXX $XXX present, and of capital our At least run in in of year, worth based million balance we attractive the subject quarter, stock. consistent spending market second at our common anticipate our plans repurchasing conditions, will our valuation with shares year quarter the to planned

the present, and customary XXXX, other of close our At GIP quarter expect of in we to approvals planned regulatory to conditions. closing subject acquisition third

Preqin, point into launching a announced we planned ago, And weeks the extension data our private adjacent an of both of and fast-growing few marking acquisition the markets just markets capabilities private our segment.

We contribution expect it revenue of growth and technology will the accelerate services.

to in the build visible public Preqin The iShares, and stock to creation do the benchmarks of bigger indexing we expertise markets. markets. What private is the can machine leveraging and combination our longer-term capital the our through for for markets, especially believe of opportunity markets with private indexing drive of BlackRock engines did Aladdin

quarter, in client. large is quarter our total last $XX previously which included to The mentioned the with inflows momentum we second of one net from spoke in flows visible billion the outflow

outflow, across single client Excluding flows positive index. and active that and product were types

the channel type, than second led half and in other flows region flows by and product and for industry BlackRock the of quarter, first XXXX more the are ETF diversified any issuer. our

respectively. net ETF $XX billion growth as billion net portfolio allocations, billion $XX equity. inflows ETFs, exposures and in which tactical added Precision reassessed $XX of billion BlackRock income $XX saw quarter adding led inflows, fixed by inflows quarter Second of and clients of equity their were core ETFs the net to

inflows the in second $X quarter continues first X its ETF another months. bitcoin net for $XX BlackRock's to lead, of in billion gathering billion

Retail Aperio little continued billion active net over reflected we organic X the net income. of strength the milestone, over business in billion years since inflows a logging and recently broad-based into ago. crossed acquired fixed growth inflows AUM $X Aperio $XXX XX%

clients. allocations through advisers are As wealth way of world, BlackRock include and their the fee-based looking grow which through of distribution serve model managers distribution in that better third-party to practices has models business the our we to typically and their fiduciary scale iShares. the wealth are main as as well portfolios strong grow models models, own managed leading across

with net and Last growth XX% new XXXX. nearly X we years partnership sales BlackRock month to Envestnet on to advisers programs annualized and Envestnet across in grow platform indexing, the to personalized and consulting. Envestnet quarter, saw have in and continues expand generated best on second our announced portfolio strategies products Envestnet the assets models through the Our month, BlackRock drive In investment into direct models. help organic platform

offerings, markets models a and platform GeoWealth's segment. approach portfolio will custom and The expand private advisers which announced combines with custom to offered a represents solution. scalable we public June, in our through with one models models Also provide that in fastest-growing the GeoWealth streamlined partnership

We Institutional our active portfolio multi-alternatives seek funding single-client were platform. mentioned by redemption. net comprehensive outflows out of as the saw markets of and impacted $X the strength several leverage clients private in assignments billion whole previously and

their rebalanced portfolios were net large record equity Several $XX Institutional concentrated clients, of levels equities. index for mostly amid index States, outflows low-fee the outside markets. billion in United

Private net of inflows $X markets billion. generated

our equity Continued demand private $X about infrastructure from billion, realizations strategies. of solutions partially equity and for successful were offset private by primarily

inflows redeeming Net between international new included of Finally, markets inflows teams us in of were multiple and April net $XX cash balances advice funds. the March. market cash week Flows cash deliver billion reinvesting benefited large prime from capital holistic government by clients as our and mandates in clients driven early in last to part strategies during connectivity management client and insight. allows after

platform. active scale management liquidity our sustained cash around and approach their growth are for Our clients in driving

nimbly more operating and and on BlackRock's future grow platform scale across We're Momentum delivering convictions about than BlackRock platform. across capabilities, significant generation. about Teams clients client required to shareholders. our in ever innovation to deliver needs, share product our positioned efficiently. investment connected about growth our about with and are technology, opportunities, for they're in strategy our rooted evolution, client build and better continues driving profitable

it over Larry. I'll to turn

Thank seen last you, growth upward in the core a Martin. call BlackRock's strongest with ever is shift earnings since April. X we've nearly years business significant in our

lower approximately and were excluding fee activities. episodic M&A inflows net institutional index core quarter Second billion, $XXX

base Our best models, Aladdin areas since ETFs, steadily fee growth structural the growth. powering second higher XXXX. growers, private like are quarter represented markets, fee and organic Organic base

month any June flows strongest with for billion start other net ETF's the inflows, year the our strongest and issuer. our been and history in were has iShares' of record on in XXXX $XXX

on both planned our of acquisitions across GIP executing are has feedback and closing We on landmark platform Preqin and been and mandates Preqin. increasingly on Client GIP our stakeholder enthusiastic. and

clients and a meet and data believe growing capabilities you, our relationships are We our to our for and market deepen need in to technology, infrastructure this to transform path the private shareholders. We will value and our benchmarking. differentiated deliver with

and organic should multiple Our growth less expansion. revenues, premium, provides earnings private new a engine in markets whole for both growth diversified future and drive of beta-sensitive which

reach will to base organic X% expected doubling our on focused AUM strong third approximately to on are potential, GIP base fees fee target. private And organic our on have add conviction base of we pace adding We growth our closing growth $XXX the quarter fee and billion of markets infrastructure.

we always need to every outcomes markets what better in and client. intensely anticipate we to can At are BlackRock, how where going, ways ourselves clients push and each better deliver will

We the investing iShares management over set buy-side BGI launching acquired both risk to the redefine by blending for We XX by whole years on outcome-oriented and to indexing technology and standard investors better of portfolio desktops Aladdin active portfolios. build ago.

our about iShares $XXX of is acquisition trillion was AUM client Today, announced in approaching iShares' XXXX. when billion we money. $X

becoming where of of celebrated the BlackRock. acquisition the part than now eFront anniversary recently X-year has doubled We ACV since more

ourselves, and importantly, We have about taking transform shy industry. bold, big, transform never to our most to moves been strategic

delivering new are today our our shareholders. and for our performance clients markets transformations business up successful growth strong and meaningful opening for Our

mission integrated all We investing, unique our seamless technology of BlackRock an our view single data is help investment approach one market delivering markets. private to onto continue aspects and private management, clients to into transform enabling into platform. in on across a

and clients emerging markets. of we infrastructure a origination clients will sector of common debt with offer with global holistic infrastructure full for the range world solutions. strong culture manager across a GIP, serving our together unique will and we provide and exposures With We'll a across developed deliver excellence equities,

agreement the markets Our platform. Preqin recently is to another of technology in announced our private step transformation and acquire

markets. believe planned acquisition Preqin We of will the As Ultimately, more workflows. to data compete whole high-quality this increased become in delivering important. and accessibility grow, increasingly data by private portfolio will help integrated and drive our with should private analytics markets efficiencies

portfolios. and of opportunity And private Aladdin presents to full Preqin eFront markets, generation a an of next for the the combination powering common find with language

of equity. of and standardization to both developed broad envision in We relationships through a the data, the investments performance principles of through of bring we indexing years better network markets and can has long-term corporate private through many our BlackRock through benchmarking tools. debt global

we're equity, the invested or where that whether investors, pre-IPOs, global consistent, debt We of companies our always-there a we brand and not our appreciate We're and through For transactional. recognize post-IPOs, capital. relationship, invest cycles, long-term, they it's early uniqueness we are and a track stay in Unique deal markets flywheel future our This and unlocks could the expertise performance for create across exits valuable we and industries. turn, makes effect, successful provide a of us clients. more fundraising opportunity enabling and scaled record partner, flow and funds. companies

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classes. and our XXXX, our of asset flows breadth organic In positive has Importantly, were across all the platform. active growth great diversified across first half and index business in with

our and the grew Our double of driver, year. digit active first year. And platform, representing including net in last our growth services technology of billion. total already $XX flows billion the alternatives, than remains half inflows a contributed ETF more XX% of secular $XXX of crossing revenue

notified scaled wealth a we quarters. expect over Importantly, that of institutional for we coming fundings the number fund management to have

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we across to premium momentum strong investors. to and results. was or our share business Earnings Growing year-over-year asset our margin and platform XXX XX% technology income margin growth is organic remain driving points basis XX%, operating a financial up committed scaled per of differentiated management up and was delivering expansion. BlackRock's

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we announced raising target In close $X.X its the billion. that second final above inaugural had fundraising a its fund quarter,

depth the of attracted over longstanding representing The the is client XX a relationships team. countries. to diversity our of XX first-time fund clients investor institutional The strength and and our testament base

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were Just general a our few weeks large-scale a account ago, allocation credit structured for mandate. we first private awarded

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for our energy for both for needs, infrastructure these clearer The has demand critical generational X begun through last will infrastructure, GIP meeting the in be of partnerships. AI finance data only the that stand-alone a planned and months. There's industrial even capital informed centers including and and logic in capital transition. public-private Private acquisition

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flows the ETF industry are market expansion. leads and we facilitating also BlackRock in

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Operator, for let's open it questions. up

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

quarter firm's pipeline organic of trajectory comments of from lots obviously on for heard growth, and the echoing I So organic premium and strong Martin's the last maybe guys optimism around growth. comments you some around

like classes? the help What ultimately, anticipate, more, firm's organic what growth little what look you base conversions contextualize means back kind a bit timing And this of of of some So half today? that the fee that of pipelines maybe these asset do for for what 'XX? the the

and think X%. organic Larry start But We I start that in Alex. was will year seasonally I some color. fee of mentioned, add base QX QX. as growth, the Thanks, had typically I'll slow

thought I think it's about just and that X%, and So in be excellent for in target at really see June. where momentum got our we comments. May We we'd you Larry's

growth, I'd But a fixed for months, bond income say fee of keeps X%. growth organic measures should cuts market on grinding precipice normalize markets. reset. on normalize to the we last by Alex, last drive flows. X Rate They fuel should are equities. And percentage that velocity of fee months, allocations. sort really X% base months, XX look should up this we at X should last X now point. It's feel X% and really They They

at outperformer of BlackRock for were well rate sort organic We've look election cycles, capture. reductions, 'XX, I periods. those upside previous really been meaningful rerisking these our In huge growth had 'XX, If above a we through-the-cycle in in targets 'XX, periods.

think growth, even growers, grow to it's these we supportive in those Aladdin. models, come structural things ETFs, I and when faster going look strong from And at markets,

see as markets a planned huge growing $XXX billion we in and our with private over growth that markets business, expanding AUM acquisition we're closing private GIP in our opportunity. Our and

So drive durable really engines significant, assumptions, think, growth the growth to most we'd additional to those and on multiple differentiated, I for modest even capture beta that expect really end expansion. hits our and targets, markets earnings

we And as years. organic We on We've leverage market the that longer-term ambition, look base of in better time be our our has periods at a and X gives and conviction to average the of think, 'XX, target positive X% half over X% as team. last I fee all in path growth us a BlackRock grow this to technology. lot back of the X% private markets to rerisking a achieved the at great premium of also deal about the or

just me let Alex, add holistic more a texture. little

across dynamic have truly been We the more world, has than across positioning had had I in now more products. never we've never robust. conversations iShares ever believe today our

innovation there's, of going precision-type more Our to for our I our products the products when with more say, active us clients. in delivery on crypto, world conversations now fragmentation in have having more would differentiated allows ETFs,

some sophisticated feedback the most GIP be over feedback could now the our more we partner, develop investors to trying acquisition we and worldwide how of of how of been things. close But planned never -- the could of has having months more about we're with X robust conversations

prepared and this transaction my ever X to have governments, our suppliers, world. is AI biggest of in data utilization to the the of every investments. the infrastructure months we're of trillions And going the the to in with about with the formalizing for conversations I big it. AI believe And power And dollars the opportunity contemplating when everybody, the one require develop suppliers, the hyperscalers, just we growth just ago not trying it's centers were engines our of we confluence our conversations way world's for AI start with -- beyond cogeneration I've and we just imagined going as even everyone. I talking is conversations chiller and organization, powerful but talked remarks, for be AI in country and for

that the is from eFront for our that channels, need has investors funds most now we the and across growing. and now with no Preqin with more to data Aladdin, with right sovereign conversations we And RIA only the assist and position the analytics sector sophisticated investors. with conversations more could wealth be firm have to going private the Our

in a that, that we're So we've the approach done obviously, differentiated taking past.

crossed like my and And I big investments. in bought would a say Martin eFront, we've we've do and about just things I price AI When AUM. boldly. talked where about I for to we yet at there believe that thought -- remarks, in BlackRock do Aperio ACV. talked pretty $XXX just AI doubled these we everybody over said billion was prepared we

more believe in now outperformance. billion be to approximately I see opportunities big And now systematic to that going XX% track of we've record we equities, the $X do I of had a where about close One is saw XX-year have only AI for of is more how you and flows. utilizing going big data. utilizing finest can of as and looking accelerating the platforms this be investments now investors I AI, are we at use to believe

I'm utilizing products, about but high-fee I'm excited platform. could potential the products more provide across very more in So excited we just how we the high-growth about our board as and better ETF have

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

your larger existing that now timing how services revenue want question growth is XX%, XX% closes? into Preqin, So contract the end our target deal tech the With technology growth. is the at within also the for after to And you given of future long-term outlook visibility have in you ACV wins low your which will XX% the clients. that if and of trajectory pipeline with XXXX conversations have the on range, to see impact we target

we in great I just see and the It's an what investment And engine think, in are investing spend, tell start in it's that I'll acceleration I right? CFO, operating I It's consistent just the main Craig. growth experiences clients invest spend are know rate in would. using drive performance, firms, engine tech the Larry in very Generally you have if can more the a how marketplace, main there's I as across could Technology, a board. tech technology. for to I client great to will leverage. growth. Thanks, fuel add.

importantly, private have. think to have of a want providers. across they patchwork They to and I want leverage clients ecosystems. are to and But legacy fewer this data integrations spaghetti fintech They deep view whole do portfolio to They public across markets. systems the kind retire of want trying

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sight, had. in assignments now potential Craig, right the are but of broadest, our ever with we line Aladdin probably largest conversations

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deliver. we big, want in where are made two, There then years, years, implementation. I promises underline have And delayed were people many examples there to broad the

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Your next question comes from Michael Cyprys with Morgan Stanley.

the some in for Just to a could strategies infrastructure space? there over XX steps some about take to in private bring market including market in are marketplace, the months? third just the expectations into the GIP raising and about be quarter. the be on maybe talk may the What the the wealth with or next question to extending that to talk alts your raising deal the new products in flows you the you And of channel? close Can expected you business able

are conversations. is until Great having we are in legal incredible that Thank close. is whatever obviously, of X and you. terms Well, GIP said, incredible sure operating we making that we having BlackRock can conversations. that question. But we are sure we -- making doing there legally approvals get entities being

right beyond which imagination. team our allowed feels and so between way and have. And meetings, the now their team opportunity have our do. We enthusiasm This between business organizations we're integration the we fantastic to our are

is post-closing, this to other later be are you be expect the I things that in we I'm opportunities and incredible are need therefore, amazing to amazing third enthusiasm showing of what to talk we we talking announcements in have not some just we have, we're the have -- then, opportunities and believe do doing. will what we some the about. But have. What our I announcements. the And quarter, said, really that announced deals, third Hopefully, be things we permitted As quarter. what could about the we

comes TD with from Your Bill question Katz Cowen. next

opening for comments. your you Thank

Just Preqin think the nature do How pathway the the of back and you evolution a through the the for illiquid opportunity And for to markets. here underlying product the you given see sort investments? evolution? of of of sort there coming private is ETFs,

Bill. Thanks,

to unlocks So whole the opportunity segment segment we're grow BlackRock. it by we extremely think We excited a new transaction. really we And our for and it really eFront and whole for of about it our growth connecting data Aladdin clients, new complementary services capabilities. think with Preqin this see unlocks Preqin a

As reach. data a well Preqin as, lot stand-alones. continue Pro offer products relationships obviously, and in of we We'll to significant have as distribution the client

I focused on things in there's here that Preqin transaction. we're driving really X think the successful

and and workflow driving more building that fund simply first deal-level The into unified sales, a a out clients. is comprehensive better databases integrating platform data really serves

innovating products. launching by data The new and second is

this risk allocation. think and markets, think when relationship indexing, remarkable I have it's about about indexes the you and to asset fairly market that think done you public models symbiotic benchmarking, data public create

really this of All markets in that to index of benchmarks models, the of We us the bringing private one BlackRock. and those ahead the are investable in history by attractive of markets most the risk private together had opportunities think indices. is opportunity we've

of to have a we drive the last, scale. ability lot And

can factories, data Preqin think operating efficiency that primary really we the have but we factories. drive making this by transaction, It's scale data seamless this a has rationale We not profitable and for growth, organization. increase

reaction to clients. are from data Preqin providers, from to service excited the strong, the a and LPs, opportunity sets. of bring together all had They're transaction good GPs, about really the which eFront Preqin who We've from enthusiastic

there's before And to great and transaction Preqin lot the so the the looking of continue to here opportunities we end think grow, to of year. a we're forward closing

we sign the ecosystem make how I had have. from would great from from take going can to has, a utilize that inquiries we is vendors, that we've and opportunity just The to about Aladdin, that. are distribute add and that we one be that sees more Preqin big what we point exchanges, the how organizations able how and that can different eFront that to

got that really markets. of upon add real -- And to and strengths public I'm we've to transformational to we've were position private got But we of this that unique now it. take to can something execute was I it very it. foundation BlackRock. it whole said we obviously, it in the got just have -- -- and really earlier, a one is of be close change and And we and -- because And think is this as I we've I then and and of clear very eFront this think Aladdin,

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Jefferies. Fannon Dan Your with comes next from question

up. to Wanted follow

You evolves? talked still about guess of time. in for of environment the bit topic incremental mixed a a that you been one across rate more Flows lot momentum year-to-date. has conversations see you're I the do having, the as have of some as a been income Fixed business. the interest areas growth big

XX% with I Well, makes the lot markets equity you as lost year sitting in unless prepared yield a X% think, up my alone. you put long-dated, XX% in in of your I because and are said money remarks, actually -- sense liabilities if this

flows, beginning the rerisking if basically at we fixed market iShares' look But clear, flat. that other let's you being other be to said, was to starting see are rerisk. They're and -- clients income

at look you AUM in really iShares so -- all fixed income growth rerisking. was the the If

That's private an markets this think continues ETFs. a evolution and saying, we're on. Obviously, to going one, ownership I see on. through in seeing that's growth statement credit, and good private is that in more you're income going more fixed

going as to are and widely bullish more more are be debt. clients We using infrastructure

I our foundation. more getting exposure core continue fixed and may core and this more to And I to they example more in here in and about bond fixed that a in you're a think in as so just their start see we seeing is more barbelling a income this used more And people effect, out, talk are ETFs seen year that are we're to a we've they're market equities bond as where portfolios more as in going of ETFs starting think growth using market flat plays all element, people to ETFs income like the use equities, a great more.

in of infrastructure credit. they're And going illiquid more securities. going they're try me, starting do their of And to get going it. do fixed that They're to alpha excuse And more space they're that in do in the that to to going to debt. beta more to income mortgage-backed private in if -- side, do they're

are also positioned well ETFs people moment for heavily very out And bond we're of alternative believe more to into products. when going going alternative cash. to be funds the be that I of fixed income it's it's recalibrating So and -- income-oriented

question with JPMorgan. next Worthington Ken Your from comes

you are to say market a where to strong of And higher of had banks out migrating would To in funds money or extent the clients cash [ seeing management global terms Cash forms additional ] you markets seeing what quarter. still and to different get institutional higher transition this yield? management? are yielding of

of asset called migration of you seeing Or And are risk What either really couple rerisking? other within Are seeing of is the of or curve sort equities? going out times. duration rerisking in rerisking a the rerisking a last you out in classes, you terms out then coming question, that to extending cash?

Thanks, Martin. Ken. It's

billion. $XXX than large an platform the new It's government April. Friday driven multiple, So and then mandates. out years. cash at have over that where on as We and investors, mentioned, and flagged a prime international client increase we come more funds. Good by saw kind dynamic the And real flows March I of today end in clients earning cash cash. and early had they largely in We dynamic, the return $XX significant about the I had return of balances that are billion, a X last XX% is grown

investors that rerisk. expect will We

cash. good of Valley customized of that clients dynamics manage they of manager to and Post definitely more put way We an sort we a platform. seen how I'd for technology that's in just saw in business, grow. But saw a like being kind think, flexible institutional in able a Bank, and we together BlackRock, accounts tactical operationally can been trend largely mindful, Cachematrix, Silicon being through the I our say we've of in couple we institutional liquidity that think

this basically how a real for over mentioned, flag have But Larry we in of proxies clients ETFs year, organic as also think, I ultimately, as business cash been are of traded bond cash. seen manage or grow. along have and ETFs. the that then $XXX clients managing money used last seen accounts kind their billion liquidity growth the we've cash I'd And separate been I bond instruments surrogate, as across And have way funds, which ETFs, dynamically think like

towards more into add little rerisking. me a But asset the more allocation let

think a I it's Ken. bag, mixed

gave pension remarks, if we're those own equity little that, That's lot bit. liability. don't I be reached level. of much in are saying said need liability if obviously, a my we who as to assets our continue persistent going As funds equities. my we I'm down, interest at to My prepared seeing the top that's staying to liabilities pension And of that have funds liability the on with if rising back set. markets. But a rates rate higher rates -- will go go longer, out

instruments. volatility less going I coupon. is This in of you into investments, have so some can't. just we're see are into seeing not fixed the where where they going -- clients they're believe clients because income ] and But high lot infrastructure, -- A of [ to equities cash, are derisking other more more you're derisking from higher returns, investments into and out derisking? But where they actually into going probable equities fixed

sitting for risk. we'll their excess are some world that. see way who and recalibrate clients they much There they're So rerisk. too obviously were the we're paying cash And seeing how around in clients --

private out had you But clients saw had I distribution, strategies headline the probably when that rerisking. months, unlock in liquidity the equity markets like the overall, and some itself overweighted see X issues, you the illiquid balances. a first them there's they think that the could going and maybe little cash private I to of more for say if and If are keeping cash where equity more

going privates, more to the deeper infrastructure, equity is mix So years, towards But you're over whole a private trends continue. bond especially last bag. a credit and seeing macro the I of allocation extensive the believe do XX allocation towards because rally

tools board. believe component against that using do the barbell a in the I larger as investors I do become a would They're And and more, well is then income of fixed core larger as the and believe going ETFs ETFs to more equity more to illiquid more of invest. BlackRock going more component say, ETFs, I is across maybe of any positioned for portfolios as diversified, use And firm core strategies using how world.

Mr. you Ladies and for allotted questions. have any time gentlemen, we remarks? do reached have Fink, the closing

I do, all operator. us BlackRock. you in Thank continued for interest thank your you. for morning And joining and this

because are BlackRock around possible and clients approach results our in Our we're second everything One in world do. partnerships the with we deep our quarter

We our we're acquisitions in are across Preqin. of landmark our closing and our and execute GIP well to on platform, on mandates positioned planned

the shareholders for see We and rest beyond. for opportunities unbelievable our XXXX growth of our clients and

quarter. Enjoy cool. few weeks. great a the Everyone, conversations lovely summer please active and our a you political stay next Stay best have safe. Have over as can. Be

teleconference. today's concludes This

disconnect. now may You