Core Viewpoint - State Street and BlackRock, two of the largest global financial institutions, reported strong Q2 earnings, raising questions about which asset manager presents a better investment opportunity at the moment [1][2][3]. Group 1: State Street's Q2 Performance - State Street reported Q2 earnings of $2.53 per share, exceeding the Zacks EPS Consensus of $2.36 by 7% and marking a 17% increase from $2.15 in the same quarter last year [4]. - The company achieved record Q2 sales of $3.44 billion, an 8% increase from $3.19 billion a year ago, surpassing estimates of $3.37 billion [4]. - Fee revenue for State Street spiked 12%, driven by servicing, management, and software fees, alongside a 27% surge in FX trading volumes [5]. Group 2: BlackRock's Q2 Performance - BlackRock's Q2 EPS was $12.05, beating expectations of $10.71 by 12% and increasing 16% from $10.36 in the same quarter last year [6]. - The company's sales reached $5.42 billion, which, while a 13% increase from $4.8 billion in Q2 2024, fell short of estimates of $5.44 billion [6]. - BlackRock generated 7% organic base fee growth and over $650 billion in net inflows, attributed to record inflows for its iShares ETFs and expansions in private markets [7]. Group 3: Assets Under Management (AUM) - Both State Street and BlackRock achieved record AUM, with State Street's AUM increasing 17% year over year to $5.1 trillion, while BlackRock's AUM rose 18% to $12.53 trillion, making it the first asset manager to surpass $12 trillion [10]. Group 4: Dividend and Valuation Comparison - State Street announced an 11% increase in its quarterly dividend to $0.84 per share, resulting in a current dividend yield of 2.98%, which is higher than BlackRock's 1.99% [11]. - State Street trades at a forward earnings multiple of 10.5X, significantly lower than BlackRock's 22.5X and the S&P 500's 24.1X [13]. Group 5: Investment Outlook - Both State Street and BlackRock stocks have seen gains of over 4% year to date and more than 20% over the last year, indicating their viability as investments [14]. - State Street holds a Zacks Rank 1 (Strong Buy), making it an appealing option due to its dividend and P/E valuation, while BlackRock has a Zacks Rank 2 (Buy) and excels in technology and data-driven strategies [15].

BlackRock (BLK) Q2 2025 Earnings Call July 15, 2025 07:30 AM ET Speaker0Good morning. My name is Katie, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated Second Quarter twenty twenty five Earnings Teleconference. Our host for today's call will be Chairman and Chief Executive, Laurence D. Fink Chief Financial Officer, Martin S.Small President, Robert S. Capito and General Counsel, Christopher J. Meade. All lines have been placed on mute ...

Core Insights - BlackRock Inc. has completed the acquisition of HPS Investment Partners, marking a significant move into the private credit market, which is becoming increasingly lucrative in global finance [1][12]. Private Credit Market - The private credit sector is reshaping financial markets and facilitating the convergence of public and private markets, with capital markets becoming the primary financing avenue for asset managers [2]. Strategic Initiatives - To leverage opportunities in private credit, BlackRock is launching Private Financing Solutions (PFS), which will integrate its private credit, GP, LP solutions, and both private and liquid CLO businesses [3]. Financial Projections - The acquisition of HPS is projected to increase BlackRock's private markets fee-paying assets under management (AUM) by 40% and management fees by 35%. In 2025, HPS is expected to contribute approximately $850 million in base fees and nearly $360 million in post-tax fee-related earnings (FRE) at a 50% margin [4][12]. Growth Targets - BlackRock aims to raise $400 billion in private markets fundraising by 2030 as part of its strategy to enhance private credit capabilities [5]. Recent Acquisitions - In March 2025, BlackRock acquired Preqin to improve its private markets data offerings and previously acquired Global Infrastructure Partners to enhance its infrastructure capabilities [6]. AUM and Revenue Growth - BlackRock's AUM has shown a five-year compound annual growth rate (CAGR) of 9.2%, reaching a record $11.58 trillion as of March 31, 2025, with net inflows of $83 billion [7]. Product Diversification - The company is diversifying its product suite, which is expected to bolster revenue mix and reduce revenue concentration risk, aiding AUM growth [9]. Dividend and Share Repurchase - BlackRock announced a 2% increase in its quarterly dividend to $5.21 per share and has a share repurchase plan aiming to buy back $1.5 billion worth of shares in 2025 [14][18]. Analyst Sentiment - Analysts have revised the earnings per share estimates for 2025 and 2026 upward to $44.92 and $50.71, indicating positive growth expectations [19]. Valuation Metrics - BlackRock's price-to-book ratio of 3.39X is lower than the industry average of 3.73X, suggesting the stock is trading at a discount relative to expected earnings growth [25][27].

Core Viewpoint - The article emphasizes the trend of asset management companies moving towards platformization, which enhances operational efficiency and drives down fees, benefiting large, capable asset management institutions [1][2]. Group 1: Platformization in Asset Management - Asset management companies are embedding technology platforms across all business segments, including client acquisition, portfolio construction, management, and post-investment risk management [1]. - According to McKinsey's research, leading global asset management firms are actively promoting the process of platformization across various areas such as sales, marketing, investment management, and risk/compliance management [2]. Group 2: Historical Development of Platformization - The origin of platformization in asset management can be traced back to the 1980-2000 period, where risk control and pricing became the starting point for platform development [2]. - From 2000 to 2008, intensified competition in custody services led to the platformization of these services to enhance breadth and efficiency [2]. - The financial crisis from 2008 to 2015 prompted stricter regulations, which accelerated the attempts to platformize trading operations, although only multi-broker platforms survived [2]. - Since 2015, technological capabilities have differentiated various segments of asset management, promoting the comprehensive functionality of platforms and their direct client engagement [2]. Group 3: Advantages of Platformization - Distinctive platforms have emerged in various segments, such as BlackRock's Aladdin for risk control, Goldman Sachs' Marquee for pricing, and AmundiALTO for custody outsourcing, each creating core advantages in data collection, trading efficiency, and operational services [3]. - Platformization enhances overall industry efficiency, favoring large asset management institutions with strong platform capabilities, and promoting brokerage firms with competitive advantages in platformization and institutional service capabilities [3]. - The platformization of asset management drives the outsourcing and centralization of scalable segments, improving operational efficiency and leading to a decline in industry fees [3].

Group 1 - BlackRock, founded by Larry Fink, has evolved from a small firm to a global financial powerhouse, influencing national economies without direct political control [1][4][20] - The company’s rise was marked by the development of the Aladdin risk management system, which became crucial during the 2008 financial crisis, allowing BlackRock to manage assets effectively while competitors faltered [10][13] - BlackRock's acquisition of Barclays Global Investors in 2009 for $13.5 billion significantly increased its assets under management, making it the largest asset management firm globally [15] Group 2 - BlackRock's strategy in China began with its establishment as the first foreign wholly-owned public fund company, allowing it to directly raise capital and invest in A-shares [22] - The firm has made substantial investments in key sectors in China, including renewable energy and technology, while also seeking deeper involvement in corporate governance through data access and board observation rights [24][26] - The company's approach in China is characterized by a broad investment strategy combined with targeted acquisitions, raising concerns about its influence on sensitive technologies and national security [28][33] Group 3 - The growth of domestic asset management firms in China poses a competitive challenge to BlackRock, as these firms have seen significant growth in assets under management [31] - The Chinese government is increasingly focused on establishing its own financial infrastructure to counter the influence of foreign capital giants like BlackRock [31][33] - The ongoing financial dynamics between BlackRock and China highlight the need for a balance between capital flow and national security, emphasizing that open markets must be governed by sovereign rules [29][35]

Core Insights - BlackRock (BLK) aims to raise $400 billion in private markets fundraising by 2030, with the private credit market projected to grow from $1.6 trillion in 2023 to $4.5 trillion by 2030 [1][8] - The company targets to double its adjusted operating income to $15 billion and market capitalization to $280 billion by 2030, with an annual revenue target exceeding $35 billion, indicating a compound annual growth rate of 10% [2][8] - BlackRock expects organic base fee growth of 5% or more and adjusted operating margins of 45% or more by 2030 [3][8] Private Market Expansion - Over the past year, BlackRock has committed nearly $28 billion to acquire private-asset firms, including the acquisition of Global Infrastructure Partners for $12.5 billion and HPS Investment Partners for $12 billion [4][5] - Following the HPS acquisition, BlackRock anticipates managing approximately $220 billion in private credit client assets, in addition to over $225 billion in private equity, infrastructure, and real estate [5][8] - The acquisition of Preqin for $3.2 billion represents a strategic move to enhance BlackRock's Aladdin technology business in the private markets data segment [6][8] Product Diversification and Client Offerings - BlackRock is collaborating with Partners Group to create a diversified portfolio of private assets for retail clients, integrating private equity and credit investments into pre-built portfolios [7][8] - The company claims this offering is the first of its kind in the asset management industry, catering to the rising demand among individual investors [7][8] Financial Performance and Market Position - BlackRock's inorganic expansion strategy is expected to bolster its presence in alternatives and private equity assets, contributing to top-line growth and assets under management [8] - The combination of acquisitions and enhanced data capabilities is projected to drive solid revenue growth for BlackRock [9][8] - Over the past year, BlackRock shares have increased by 28.5%, outperforming the industry growth of 16.9% [10]

Good afternoon everyone. My name is Brennan Rosales and I am an AI engineering lead at BlackRock. I'm joined today with by my friend and colleague Pedro Vicente Valdez, principal AI engineer.We're extremely excited to be here today to share with you how Black Rockck is leveraging AI to really transform the investment management space. We're going to be f focusing today on the Aladdin platform and the agentic architecture supporting Aladdin Copilot. So let's start out with just a quick primer on what is Blac ...

Summary of BlackRock's Investor Day 2025 Company Overview - **Company**: BlackRock - **Event**: Investor Day 2025 - **Date**: June 2023 Key Industry Insights - **Market Dynamics**: The global financial landscape has seen ongoing conflicts, political polarization, and trade protectionism, leading to record equity markets alongside volatility [5][6] - **Client Trust**: BlackRock has received $900 billion in net inflows, translating to over $800 million in net new base fees [5][6] Financial Performance - **Revenue Growth**: In 2024, BlackRock generated over $640 billion in client inflows and reached $20 billion in revenue [7] - **Assets Under Management (AUM)**: Global iShares AUM surpassed $4 trillion, with iBit achieving $70 billion in AUM [7] - **Operating Margin**: Operating margin has expanded by 170 basis points since the introduction of the financial framework in 2022 [16] Strategic Initiatives - **2030 Vision**: BlackRock aims to achieve over $35 billion in total revenue and double both operating income and market cap by 2030 [19] - **Focus Areas**: The strategy emphasizes private markets, technology, and whole portfolio solutions, targeting 5% or higher organic base fee growth [18][19] - **Acquisitions**: The addition of GIP and Preqin has broadened Aladdin's reach and capabilities, enhancing BlackRock's position in private markets [8][24] Technology and Innovation - **Aladdin Platform**: Aladdin is central to BlackRock's operations, facilitating portfolio management and risk assessment [71][72] - **AI Integration**: BlackRock is leveraging AI to enhance investment processes, including the development of Aladdin Copilot for personalized portfolio management [43][88] - **Digital Assets Strategy**: BlackRock is expanding its digital asset offerings, including the iBit Bitcoin ETP, which has rapidly grown to $70 billion [56][57] Client Engagement and Market Position - **Client-Centric Approach**: BlackRock emphasizes understanding client needs and delivering tailored solutions across public and private markets [9][10] - **Market Leadership**: BlackRock is a top player in private credit, infrastructure, and ETFs, with over 90% of the top 100 asset owners as clients [20][22] - **Ecosystem Development**: The firm is focused on building partnerships and integrating services to enhance client experiences and operational efficiencies [26][30] Future Outlook - **Growth Opportunities**: BlackRock sees significant potential in private markets, with an aim to raise $400 billion in private market assets by 2030 [25] - **Client Relationships**: The firm is committed to deepening partnerships with clients, aiming for holistic strategic relationships that span multiple asset classes [21][22] - **Global Expansion**: BlackRock is expanding its presence in new markets, including the Middle East and APAC, to better serve local client needs [95] Conclusion - BlackRock's Investor Day highlighted the company's robust growth strategy, commitment to innovation, and focus on client relationships, positioning it well for future success in a rapidly evolving financial landscape.

Forward–looking Statements This presentation, and other statements that BlackRock may make, 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. Forward looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "pos ...

Invesco (IVZ) 2025 Conference June 10, 2025 11:25 AM ET Speaker0 Alright, we're gonna go ahead and get started here. For important disclosures, please see the Moran Stanley research disclosure website at moranstanley.com/researchdisclosures. Note that taking of photographs and the use of recording devices is not allowed. If you have any questions, please reach out to your Morgan Stanley sales representative. Good morning. Thanks for staying with us here at day one of Morgan Stanley Financials Conference. I' ...