BlackRock, Inc. (BLK) Bundle
A Brief History of BlackRock, Inc.
BlackRock, Inc., founded in 1988, has evolved into a global leader in investment management, risk management, and advisory services. As of 2024, the company manages assets across various asset classes, including equity, fixed income, multi-asset, and alternatives.
Company Overview
As of June 30, 2024, BlackRock’s total assets under management (AUM) reached approximately $10.65 trillion, an increase from $10.47 trillion at March 31, 2024, and $10.01 trillion at December 31, 2023.
Financial Performance
For the second quarter of 2024, BlackRock reported a total revenue of $4.805 billion, up from $4.463 billion in Q2 2023. The operating income for the same period was $1.800 billion, compared to $1.615 billion in the previous year.
Assets Under Management by Product Type
| Product Type | AUM (in millions) | Net Inflows (Outflows) (in millions) |
|---|---|---|
| Equity | $5,827,135 | $6,438 |
| Fixed Income | $2,815,884 | $35,409 |
| Multi-Asset | $921,412 | $4,460 |
| Alternatives | $303,248 | $5,059 |
| Total AUM | $10,645,721 | $81,565 |
Stock Performance
BlackRock's stock price as of June 30, 2024, was approximately $787.32, reflecting an increase from approximately $673.58 at the beginning of the year.
Dividends and Share Repurchases
For the second quarter of 2024, BlackRock declared dividends of $5.10 per share, amounting to $758 million. The company also repurchased $500 million of its shares during this period.
Long-Term Debt
As of June 30, 2024, BlackRock had total borrowings of approximately $9.857 billion. The company issued $2.5 billion in new senior unsecured notes in July 2024, intended to fund strategic acquisitions.
Recent Developments
In 2024, BlackRock announced a strategic acquisition of Preqin, a data provider for alternative assets, expected to enhance its capabilities in the alternatives market.
Global Reach
BlackRock operates globally, with significant market presence in the United States, Europe, Asia, and emerging markets. The company continues to expand its investment offerings and services to meet the needs of diverse clients, ranging from individual investors to large institutional clients.
A Who Owns BlackRock, Inc. (BLK)
Major Shareholders
As of 2024, BlackRock, Inc. (BLK) has a diverse ownership structure characterized by a mix of institutional and retail investors. The following table summarizes the largest shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Vanguard Group, Inc. | 8.42% | Institutional |
| BlackRock, Inc. | 7.12% | Institutional |
| State Street Corporation | 4.92% | Institutional |
| FMR LLC (Fidelity) | 4.76% | Institutional |
| Capital Research Global Investors | 3.25% | Institutional |
| Other Institutional Investors | 67.57% | Institutional |
| Retail Investors | 0.20% | Retail |
Institutional Ownership Trends
Institutional ownership of BlackRock has remained robust, with approximately 90% of the company's shares held by institutional investors as of mid-2024. This indicates strong confidence among large asset managers and investment firms. The top institutional investors include:
- Vanguard Group, Inc. - 8.42%
- BlackRock, Inc. - 7.12%
- State Street Corporation - 4.92%
- FMR LLC (Fidelity) - 4.76%
- Capital Research Global Investors - 3.25%
Retail Ownership
Retail investors currently hold a minor portion of BlackRock's total shares, accounting for approximately 0.20% of ownership. This reflects the company's focus on institutional clientele and the nature of its investment products.
Recent Changes in Ownership
In the first half of 2024, notable changes in ownership patterns included:
- Increased holdings by Vanguard Group, Inc. by 1.5%.
- Reduction in stake by FMR LLC (Fidelity) by 0.5%.
- BlackRock, Inc. increased its own shareholding slightly as part of its stock buyback strategy.
Stock Buybacks and Share Repurchase Program
As of June 30, 2024, BlackRock has executed share repurchases amounting to approximately $875 million for 1.1 million shares. The company still has around 4.6 million shares authorized for repurchase under its existing program.
Performance-Based Compensation
BlackRock also incentivizes its employees through performance-based stock options, which totaled approximately $365 million in intrinsic value at the end of Q2 2024. The company granted performance-based RSUs valued at $101 million during the first half of 2024.
Conclusion
BlackRock's ownership is predominantly institutional, with Vanguard and State Street being significant stakeholders. The company's strategic focus on institutional clients continues to shape its shareholder structure.
BlackRock, Inc. (BLK) Mission Statement
Mission Overview
BlackRock, Inc. aims to help investors achieve their financial goals through a comprehensive range of investment solutions and services while focusing on long-term sustainability and responsible investment practices.
Core Values
- Client-Centricity: Prioritizing the needs and interests of clients in all investment decisions.
- Integrity: Upholding the highest ethical standards in business operations.
- Innovation: Leveraging technology to enhance investment processes and client experiences.
- Diversity and Inclusion: Fostering a diverse workforce and inclusive culture to drive better outcomes.
- Sustainability: Committing to sustainable investing and environmental responsibility.
Financial Performance
As of June 30, 2024, BlackRock reported a total revenue of $4.805 billion for the second quarter, up from $4.463 billion in the same period of 2023. The company achieved a net income of $1.495 billion, compared to $1.366 billion year-over-year.
Assets Under Management (AUM)
BlackRock's AUM reached approximately $10.646 trillion at the end of June 2024, reflecting a significant increase from $9.425 trillion in June 2023. This growth was driven by net inflows across various investment products.
| Type of Client | AUM (in billions) | Net Inflows (Outflows) (in billions) |
|---|---|---|
| Retail | $992.2 | $5.7 |
| ETFs | $3,855.8 | $83.1 |
| Institutional Active | $1,968.2 | ($2.1) |
| Institutional Index | $3,051.5 | ($35.4) |
| Total Long-term AUM | $9,867.7 | $51.4 |
Shareholder Returns
BlackRock declared dividends totaling $10.20 per share for the first half of 2024, compared to $10.00 for the same period in 2023. The company has consistently prioritized shareholder returns through both dividends and share repurchases.
Recent Strategic Initiatives
In June 2024, BlackRock announced plans to acquire Preqin for approximately $3.2 billion to enhance its data and analytics capabilities in private markets, aiming to integrate Preqin's offerings with its existing platforms.
Market Position
BlackRock remains the world's largest asset manager, maintaining a competitive edge through its extensive range of investment solutions across multiple asset classes and geographies.
Conclusion
The mission statement and strategic focus of BlackRock, Inc. emphasize its commitment to client service, innovation, and sustainability, underpinned by robust financial performance and significant AUM growth.
How BlackRock, Inc. (BLK) Works
Company Overview
BlackRock, Inc. (BLK) is a global investment management corporation. As of June 30, 2024, it manages approximately $10.65 trillion in assets under management (AUM). The company operates primarily through investment advisory and administration fees, with significant contributions from performance fees and technology services.
Financial Performance
For the second quarter of 2024, BlackRock reported:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $4.81 billion | $4.46 billion |
| Operating Income | $1.80 billion | $1.62 billion |
| Net Income | $1.50 billion | $1.37 billion |
| Earnings per Diluted Share | $9.99 | $9.06 |
| Effective Tax Rate | 24.2% | 24.5% |
Assets Under Management (AUM)
As of June 30, 2024, the breakdown of AUM is as follows:
| Client Type | AUM (in millions) |
|---|---|
| Retail | $992,152 |
| ETFs | $3,855,774 |
| Institutional Active | $1,968,232 |
| Institutional Index | $3,051,521 |
| Cash Management | $778,042 |
Net Inflows and Outflows
For the six months ended June 30, 2024, BlackRock reported net inflows as follows:
| Product Type | Net Inflows (in millions) |
|---|---|
| ETFs | $150,382 |
| Retail | $12,855 |
| Institutional Active | $12,626 |
| Institutional Index | $(48,084) |
Expense Breakdown
For the second quarter of 2024, total expenses were $3.01 billion, with key components as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Employee Compensation and Benefits | $1,503 |
| Sales, Asset and Account Expense | $929 |
| General and Administration Expense | $534 |
| Amortization of Intangible Assets | $39 |
Market Performance and Trends
During the first half of 2024, BlackRock experienced a net market appreciation of $599 billion, largely attributed to the rise in global equity markets. Additionally, AUM decreased by $106 billion due to foreign exchange movements, particularly the strengthening of the US dollar against major currencies.
Shareholder Returns
For the second quarter of 2024, BlackRock declared a cash dividend of $5.10 per share, totaling approximately $1.55 billion in dividends declared. The company has been consistent in returning capital to shareholders through dividends and share repurchases.
Conclusion
As a key player in the asset management industry, BlackRock's operations and financial performance demonstrate its ability to adapt to market changes while continuing to focus on growth through both organic inflows and strategic acquisitions.
How BlackRock, Inc. (BLK) Makes Money
Revenue Streams
BlackRock generates revenue through several key streams, primarily from investment advisory and administration fees, performance fees, technology services, distribution fees, and advisory and other revenues.
| Revenue Stream | Q2 2024 (in millions) | Q2 2023 (in millions) | Six Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2023 (in millions) |
|---|---|---|---|---|
| Investment advisory, administration fees, and securities lending revenue | 3,875 | 3,611 | 7,653 | 7,113 |
| Investment advisory performance fees | 164 | 118 | 368 | 173 |
| Technology services revenue | 395 | 359 | 772 | 699 |
| Distribution fees | 318 | 319 | 628 | 638 |
| Advisory and other revenue | 53 | 56 | 112 | 83 |
| Total Revenue | 4,805 | 4,463 | 9,533 | 8,706 |
Assets Under Management (AUM)
As of June 30, 2024, BlackRock's total AUM reached $10.65 trillion, a significant increase from $9.43 trillion a year earlier. This growth is attributed to net inflows and market appreciation.
| AUM Component | June 30, 2024 (in millions) | June 30, 2023 (in millions) |
|---|---|---|
| Retail | 992,152 | 903,630 |
| ETFs | 3,855,774 | 3,215,932 |
| Institutional Active | 1,968,232 | 1,812,719 |
| Institutional Index | 3,051,521 | 2,782,790 |
| Total AUM | 10,645,721 | 9,425,212 |
Net Inflows and Outflows
In the twelve months ending June 30, 2024, BlackRock experienced long-term net inflows of $178 billion, driven significantly by ETFs and retail investments.
| Client Type | Net Inflows (Outflows) (in millions) |
|---|---|
| ETFs | 267,000 |
| Retail | 13,000 |
| Institutional Active | 13,000 |
| Institutional Index | (89,000) |
| Total Net Inflows | 178,000 |
Operating Performance
For the second quarter of 2024, BlackRock reported an operating income of $1.8 billion, reflecting a 37.5% operating margin, increased from 36.6% in the previous year.
| Performance Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Income (in millions) | 1,800 | 1,615 |
| Operating Margin | 37.5% | 36.6% |
| Net Income (in millions) | 1,550 | 1,399 |
| Earnings per Share | $10.36 | $9.28 |
Expenses
BlackRock's total expenses for the second quarter of 2024 were $3.0 billion, driven by employee compensation, sales, and general administration costs.
| Expense Type | Q2 2024 (in millions) | Q2 2023 (in millions) |
|---|---|---|
| Employee Compensation and Benefits | 1,503 | 1,429 |
| Sales, Asset, and Account Expense | 929 | 889 |
| General and Administration Expense | 534 | 493 |
| Total Expenses | 3,005 | 2,848 |
Dividends and Share Repurchases
BlackRock declared a cash dividend of $5.10 per share in Q2 2024, with a total of $1.5 billion in dividends declared for the quarter.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Dividends per Share | $5.10 | $5.00 |
| Total Dividends Declared (in millions) | 1,553 | 1,544 |
| Shares Repurchased (in millions) | 875 | 752 |
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