Summary of BlackRock's 2026 Conference Call Company Overview - **Company**: BlackRock (NYSE: BLK) - **Industry**: Asset Management - **AUM**: Over $14 trillion, making it the largest asset manager globally [3][4] Key Financial Performance - **Organic Base Fee Growth**: Achieved a record 12% in Q4 2025, with an annual growth of 9% for the year, significantly above market expectations [3][4] - **Sustainable Growth Projection**: Expected normalized organic base fee growth of 6%-7% moving forward [5][6] Strategic Priorities for 2026 - **Integration of Acquisitions**: Focus on integrating recent acquisitions, including Global Infrastructure Partners and HPS Investment Partners, to maximize synergies [11][12] - **Fundraising Goals**: Targeting $400 billion in growth fundraising by 2030, leveraging institutional relationships and wealth channels [12][13] - **iShares Growth**: Continued double-digit organic growth in ETFs, with $530 billion of organic asset growth in 2025 [13][14] - **Technology and Data**: Aiming for mid-teens annual contract value (ACV) growth in the Aladdin business, which finished 2025 at 16% ACV [14][15] - **Wealth Management Expansion**: Significant opportunities in wealth management, particularly in integrating private markets into wealth platforms [15][16] Market Trends and Opportunities - **Consolidation in Asset Management**: The top five asset managers are capturing approximately 80% of industry flows, indicating a trend towards consolidation [6][7] - **Digital Wallets and Crypto**: BlackRock sees digital wallets as a new distribution channel, with 820 million crypto wallets holding significant economic value [22][23][26] - **Tokenization of ETFs**: Plans to tokenize ETF offerings to tap into the growing digital wallet ecosystem [29][30] Systematic Active Equity Business - **Strong Demand**: Experienced $50 billion in inflows into systematic strategies, highlighting a shift in the perception of scale as a driver of alpha [40][43] - **Diverse Product Offering**: Growth across multiple products, including active ETFs and hedge funds, contributing to systematic flows [45][46] M&A Strategy - **Focus on Integration**: Current emphasis on integrating recent acquisitions rather than pursuing new large-scale M&A [66][67] - **Selective Acquisitions**: Open to smaller, accretive transactions that align with growth in private markets and technology [66][67] Operating Margins - **Current Margin Performance**: Achieved an adjusted operating margin of 45% in Q4 2025, with expectations to maintain or exceed this level [59][61] - **Long-term Margin Goals**: Potential to grow fully burdened operating margins above 45% through strategic investments and organic growth [61][62] White Space Opportunities - **Expansion Areas**: Identified opportunities in secondaries, investment-grade finance, and data completion related to Preqin [69][71] Conclusion - BlackRock is well-positioned for continued growth through strategic integration of acquisitions, expansion in wealth management, and leveraging technology in asset management. The focus on digital wallets and tokenization reflects a forward-looking approach to evolving market dynamics.

For the first time since 2022, international stocks blew past the U.S. market. In 2025, the MSCI EAFE Index, which tracks stocks in developed markets outside the U.S. and Canada, returned roughly 32%, while the MSCI Emerging Markets Index climbed about 34%. Both easily topped the S&P 500, which represents the top 500 U.S. companies, as it finished the year with gains of nearly 18%. Must Read After years of U.S. domination, especially in big tech, this deep shift may have investors wondering if it’s tim ...

Group 1 - BlackRock Inc. is seeking regulatory clearance in India to acquire a stake in Aditya Birla Renewables Limited, indicating its commitment to expanding in the renewable energy sector [1] - The company plans to invest $333.6 million in Aditya Birla Renewables, which operates in solar, wind, and battery storage, owning a portfolio of 4.3GW across 10 Indian states [2] - This investment aligns with India's significant energy transformation and growing demand for renewable energy driven by decarbonization efforts [2] Group 2 - BlackRock confirmed a 6.72% stake in Ireland's Avadel Pharmaceuticals, enhancing its exposure in the healthcare sector [2] - Morgan Stanley has reiterated an Overweight rating on BlackRock, setting a price target of $1,514, reflecting confidence in the company's expansion in private markets and technology solutions [2] - BlackRock is the world's largest asset manager, managing trillions of dollars in assets across various investment vehicles, including stocks, bonds, and real estate [2]

Core Insights - BlackRock reported a strong financial performance in 2025, with record net inflows and significant growth in revenue and earnings per share, indicating a robust operational momentum as the company enters 2026 [4][3][21] Financial Performance - In Q4 2025, BlackRock achieved revenue of $7 billion, a 23% increase year over year, driven by acquisitions and organic growth [2] - The full-year as-adjusted revenue reached $24 billion, up 19% from the previous year, with operating income of $9.6 billion, an 18% increase [3][6] - Earnings per share for the full year were $48.09, reflecting a 10% rise [3][6] Net Inflows and Asset Management - BlackRock reported approximately $698 billion in net new assets for 2025, with iShares contributing $527 billion, marking a record for the firm [7][12] - Retail net inflows were $107 billion, significantly boosted by an $80 billion separately managed account assignment from Citi Wealth [13] - Institutional active net inflows totaled $54 billion, while institutional index saw outflows of $119 billion, primarily due to redemptions from low-fee strategies [14] Strategic Initiatives - The board approved a 10% increase in the Q1 2026 dividend and authorized share repurchases of about $1.8 billion for 2026, focusing on growth in private markets, wealth, insurance, and retirement [5][7] - BlackRock aims to raise $400 billion in gross private markets fundraising through 2030, emphasizing its strategic priorities in private markets and technology [15][17] Technology and Integration - The integration of acquisitions such as HPS and Preqin has been successful, contributing to revenue growth and enhancing technology services [8][20] - Technology services and subscription revenue grew by 24% year over year, reflecting strong client onboarding and expansions [8] Expense Management - Total expenses rose by 19% in 2025, driven by higher compensation and general administrative costs, with employee compensation increasing by 20% [9] - The adjusted operating margin for Q4 was 45%, slightly down from the previous year, but management expects to maintain a target of 45% or greater [10][11]

Group 1 - JPMorgan is expanding its ETF business to better compete with iShares/BlackRock [1] - The JPMorgan ActiveBuilders Emerging Markets Equity fund is part of its 'Active Builders' suite [1] - Binary Tree Analytics (BTA) focuses on providing transparency and analytics for capital markets instruments, particularly in CEFs, ETFs, and Special Situations [1]

Financial Data and Key Metrics Changes - BlackRock reported full-year revenue of $24 billion, up 19% year-over-year, with operating income of $9.6 billion, an 18% increase, and earnings per share (EPS) of $48.09, which increased by 10% [7][8] - Q4 revenue reached $7 billion, a 23% increase year-over-year, driven by acquisitions and organic base fee growth [7][8] - The company achieved nearly $700 billion in net new assets for the year, with a 9% organic base fee growth and a 16% technology annual contract value (ACV) expansion [3][4] Business Line Data and Key Metrics Changes - Q4 base fees and securities lending revenue totaled $5.3 billion, up 19% year-over-year, supported by market beta impacts and organic growth [9] - Performance fees for Q4 were $754 million, reflecting higher revenue from alternatives, including $158 million from HPS [10] - Technology services and subscription revenue increased by 24% year-over-year, with annual contract value (ACV) rising 31% [10] Market Data and Key Metrics Changes - iShares led the industry with $527 billion in net inflows for 2025, representing 12% organic asset growth [14] - Full-year retail net inflows were $107 billion, driven by significant assignments and strong performance in various asset classes [15] - BlackRock's institutional active franchise generated net inflows of $54 billion, while institutional index net outflows were $119 billion, primarily from low-fee index equity strategies [15] Company Strategy and Development Direction - BlackRock aims to build leading franchises in high-growth markets, including private markets, digital assets, and active ETFs, targeting $500 million revenue generators in the next five years [6] - The company plans to raise $400 billion in gross private markets fundraising by 2030, leveraging strong client relationships and investment performance [15][22] - BlackRock is focused on integrating public and private markets, enhancing its technology and data capabilities through platforms like Aladdin and Preqin [6][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, with a strong pipeline of business across products and regions, and a commitment to delivering durable, profitable growth [18][20] - The company anticipates continued organic base fee growth of 6% or higher, supported by structural growth strategies and favorable market conditions [40] - Management highlighted the importance of cash management and the potential for elevated cash holdings as global capital markets grow [45][47] Other Important Information - BlackRock returned a record $5 billion to shareholders in 2025 through dividends and share repurchases, with a 10% increase in the dividend per share planned for Q1 2026 [13][21] - The company is integrating Preqin to enhance its private market data capabilities and aims to create investable indices for private markets [80][82] Q&A Session Summary Question: What is the outlook for net flow pipeline and the money market business? - Management noted that organic base fee growth continues to outperform expectations, with a diversified fundraising plan for 2026 [40][41] - They expect money market yields to fall with rate cuts, but anticipate strong demand for fixed income offerings [42][43] Question: How is BlackRock prioritizing growth in Asia? - Management highlighted the rapid growth of capital markets in Asia, particularly in Japan and India, and the opportunities for self-directed retirement platforms [51][52][55] Question: How does BlackRock differentiate in the insurance channel? - Management emphasized their full-service capabilities and strong relationships with insurance companies, positioning them well for growth in private credit and high-grade portfolios [61][65] Question: What is the outlook for operating margins in 2026? - Management targets a 45% or greater adjusted operating margin, with expectations for margin expansion driven by strong growth in private markets and technology [69][71]

Financial Data and Key Metrics Changes - BlackRock reported full-year revenue of $24 billion, up 19% year-over-year, with operating income of $9.6 billion, an 18% increase, and earnings per share (EPS) of $48.09, which increased by 10% [7][8] - Fourth-quarter revenue reached $7 billion, a 23% increase year-over-year, driven by acquisitions and organic base fee growth [7][8] - The company achieved nearly $700 billion in net new assets for the year, with a 9% organic base fee growth and a 16% technology annual contract value (ACV) expansion [3][4] Business Line Data and Key Metrics Changes - The fourth-quarter base fees and securities lending revenue totaled $5.3 billion, up 19% year-over-year, supported by market beta impacts and organic growth [9] - Performance fees for the fourth quarter were $754 million, reflecting higher revenue from alternatives [10] - Technology services and subscription revenue increased by 24% year-over-year, with ACV growing 31% [10] Market Data and Key Metrics Changes - iShares led the industry with $527 billion in net inflows for 2025, representing 12% organic asset growth [13] - Retail net inflows for the year were $107 billion, significantly boosted by a $80 billion SMA assignment from Citi Wealth [14] - Institutional active franchise generated net inflows of $54 billion, while institutional index net outflows were $119 billion, primarily from low-fee index equity strategies [14] Company Strategy and Development Direction - BlackRock is focusing on building leading franchises in high-growth markets such as private markets, digital assets, and active ETFs, targeting $500 million revenue generators in the next five years [6] - The company aims to raise $400 billion in private markets by 2030, leveraging its strong client relationships and investment performance [19] - BlackRock is integrating public and private markets through technology and data, positioning itself as a leader in the evolving asset management model [6][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, with expectations of continued organic base fee growth of 6% or higher [5][33] - The company anticipates a favorable operating environment, with a focus on delivering better outcomes for clients and enhancing shareholder value [31] - Management highlighted the importance of adapting to market changes and leveraging technology to drive future growth [30][56] Other Important Information - BlackRock returned a record $5 billion to shareholders in 2025 through dividends and share repurchases, with a 10% increase in the dividend per share planned for 2026 [12][13] - The company is targeting a mid-single-digit percentage increase in general and administrative expenses for 2026, while maintaining a flat headcount [12][52] Q&A Session Summary Question: What is the outlook for net flow pipeline and the money market business? - Management noted that organic base fee growth continues to outperform expectations, with a strong pipeline in private markets and systematic strategies [32][33] - Regarding the money market business, they expect flows to be affected by rate cuts, but anticipate opportunities in intermediate-term bonds [34][35] Question: How is BlackRock prioritizing growth in Asia? - Management highlighted the rapid growth of capital markets in Asia, particularly in Japan and India, and emphasized the potential for self-directed retirement platforms [40][41] Question: How does BlackRock differentiate in the insurance channel? - The company is the largest insurance company general account manager, focusing on delivering customized solutions and integrating public and private portfolios [43][44]

Financial Data and Key Metrics Changes - BlackRock reported nearly $700 billion in net new assets for 2025, with a 9% organic base fee growth and a 16% technology annual contract value (ACV) expansion [3][4] - Full year revenue reached $24 billion, up 19% year over year, while operating income was $9.6 billion, an 18% increase [8] - Earnings per share (EPS) for the full year was $48.09, reflecting a 10% increase [8] Business Line Data and Key Metrics Changes - Fourth quarter base fees and securities lending revenue amounted to $5.3 billion, a 19% increase year over year, driven by market beta impacts and organic growth [10] - Performance fees in the fourth quarter were $754 million, up from the previous year, with significant contributions from alternatives [11] - Technology services and subscription revenue increased by 24% year over year, reflecting successful client onboarding and the closing of the Preqin transaction [11] Market Data and Key Metrics Changes - iShares led the industry with $527 billion in net inflows for 2025, representing 12% organic asset growth [15] - Retail net inflows for the year were $107 billion, significantly boosted by a $80 billion SMA assignment from Citi Wealth [16] - Institutional active franchise generated net inflows of $54 billion, while institutional index net outflows were $119 billion, primarily due to low-fee index equity strategy redemptions [16] Company Strategy and Development Direction - BlackRock aims to build leading franchises in high-growth markets such as private markets, digital assets, and active ETFs, targeting $500 million revenue generators in the next five years [6][7] - The company plans to raise $400 billion in private markets by 2030, leveraging strong client relationships and investment performance [22] - BlackRock is focused on integrating public and private markets, enhancing its technology and data capabilities through platforms like Aladdin and Preqin [7][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing strong client relationships and a diversified pipeline across products and regions [18][19] - The company anticipates continued organic base fee growth of 6% or higher, supported by a favorable market environment [38] - Management highlighted the importance of adapting to changing market conditions and the potential for increased cash holdings as capital markets grow [42][43] Other Important Information - BlackRock returned a record $5 billion to shareholders in 2025 through dividends and share repurchases, with a planned 10% increase in the dividend per share for 2026 [13][14] - The company is targeting a $1.8 billion share repurchase program for 2026 [15] - BlackRock's platform is positioned to capture flows with strong performance across various asset classes, including fixed income and active ETFs [28][29] Q&A Session Summary Question: What is the outlook for net flow pipeline and the money market business? - Management noted that organic base fee growth has consistently outperformed expectations, with a strong pipeline for private markets and systematic strategies [37] - They expect money market yields to fall with potential rate cuts, but anticipate continued demand for fixed income offerings [39][40] Question: How is BlackRock prioritizing growth in Asia? - Management highlighted the rapid growth of capital markets in Asia, particularly in Japan and India, and emphasized the potential for self-directed retirement platforms [45][46] Question: How does BlackRock differentiate in the insurance channel? - BlackRock is the largest general account manager for insurance companies, focusing on delivering customized solutions and integrating public and private portfolios [50][52]

Core Viewpoint - Dividend stocks provide a combination of growth and income, making them an attractive investment option for building wealth [1] Group 1: Importance of Dividends - Dividends have significantly contributed to stock market returns, accounting for 95% of the S&P 500's cumulative total return since 1960 through compounding and reinvestment [2] - Companies that consistently increase their dividends have outperformed non-dividend-paying stocks, delivering annual returns of 10.2% compared to 4.3% [3] Group 2: Realty Income (O) - Realty Income is a REIT that owns over 15,000 commercial properties under long-term, triple-net leases, resulting in stable and predictable cash flows [6] - The company pays monthly dividends, offering an annual yield of 5.6%, with a history of increasing its monthly dividend 133 times over the past three decades [8][9] Group 3: BlackRock (BLK) - BlackRock is the world's largest asset manager with over $13.5 trillion in assets under management, benefiting from the growing trend of passive investing through its low-cost ETFs [11] - The company has raised its dividend payout for 16 consecutive years, providing a yield of around 1.8% and annual returns of over 14.8% over the past decade [14] Group 4: Ares Capital Corporation (ARCC) - Ares Capital offers a high dividend yield of over 9% due to its structure as a business development corporation, which requires it to distribute 90% of taxable income to shareholders [15] - The company has over 20 years of experience lending to middle-market companies, delivering solid performance even during economic downturns [19]

Summary of BlackRock Conference Call - December 09, 2025 Company Overview - **Company**: BlackRock (NYSE: BLK) - **Assets Under Management**: $13.5 trillion - **Growth Target**: Plans to double the business by 2030 - **Current Growth**: Organic base fee growth at 8% for the last 12 months, exceeding the 5% target [10][12][20] Key Points and Arguments Financial Performance - **Organic Base Fee Growth**: Achieved 8% growth, with expectations for continued strong performance into Q4 2025 [12][20] - **iShares Flows**: Approximately $100 billion in iShares flows for Q4, totaling $450 billion for the year, setting an annual record [21] - **Private Markets**: $16 billion in private markets through Q3, with a strong pipeline for Q4 [22] - **Revenue Growth Strategy**: Focus on structural growth engines such as SMAs, models, systematic equities, and digital assets, aiming for 6-7% organic base fee growth in the future [24][25] Market Trends and Strategic Shifts - **Total Portfolio Approach (TPA)**: Shift from traditional strategic asset allocation to TPA, allowing for more nimble investment strategies [70][72] - **Institutional Investor Trends**: Notable movement among large institutional investors, including CalPERS, towards TPA, indicating a significant market shift [72][78] Acquisitions and Integration - **HPS Investment Partners**: Integration has led to increased origination opportunities and a larger pipeline for credit investments [81][87] - **Credit Market Conditions**: Current credit conditions remain stable, with non-accruals and recovery rates in line with historical norms [88][90] Product Development and Innovations - **New Product Launches**: Plans to develop a family of retail alternative funds and expand private market offerings [109][110] - **401(k) Opportunities**: Target date funds with private market allocations expected to launch in 2026, aiming to bring private market exposure to defined contribution plans [126][127] Digital Assets and Tokenization - **Tokenization Strategy**: Focus on bridging traditional finance with decentralized finance (DeFi), including plans to tokenize iShares and develop digital wallet capabilities [139][143] - **Stablecoin Management**: Managing approximately $65 billion in Circle Stablecoin, with expectations for significant growth in digital wallets and tokenized assets [140][142] Additional Important Insights - **Expense Management**: BlackRock aims for adjusted operating margins of 45% or greater, with a focus on aligning organic revenue growth with controllable expenses [49][52] - **Market Conditions**: Anticipation of increased default rates in the credit market, particularly among smaller companies, while larger companies are expected to perform better [92][96] This summary encapsulates the key insights and strategic directions discussed during the BlackRock conference call, highlighting the company's robust growth trajectory, market adaptations, and innovative product developments.