BlackRock (NYSE:BLK) Conference Transcript

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.