BLK - Earnings call transcript Q3 2021

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Operator

Good morning. My name is Javale (ph), and I will be your conference facilitator today. At this time. I would like to welcome everyone to the BlackRock Incorporated Third Quarter 2021 Earnings Teleconference.

Our host for today's call will be Chairman and Chief Executive Officer, Laurence D. Gary Officer, Financial Chief S. Fink, S. Shedlin, President Robert Kapito, and Counsel, Christopher General J. Meade. been have to placed prevent lines any mute on All background noise. After a question-and-answer there will remarks, the period. speakers' be [Operator you. Instructions] instructions] [Operator Thank Mr. begin may Meade, conference. you your

Christopher Meade

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

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

BlackRock the As with materially SEC BlackRock know, not today. reports you has factors to does the and say differ undertake which statements. filed the BlackRock update of that to duty forward-looking assumes from we list results some what may no cause of any

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

Gary Shedlin

pleasure good the Thanks, morning, present the quarter my It's everyone. of to third and XXXX. for results Chris,

to it our turn to financial over and I business performance review Before his results. Larry comments, I'll offer

results, both record While be of our track it term. ongoing discloses stakeholders on release delivering proven invest focusing commitment earnings adjusted to GAAP continually change the reflects for I adjusted BlackRock's happens before anticipate primarily long our will our results. to financial and and

investment resilient We increasingly investment volatile integrated platforms globally clients to and ever-changing risk environments. help for navigate thought insights, rely management leadership, market technology state-of-the-art construct Our us and whole enables on in clients. portfolios global tools to

partially in net BlackRock net momentum X% quarter, lower the cash third by $XX Our approach representing generated of in of strong is inflows entire growth organic than billion and asset long-term resonating net from billion continued more $XX reflected seeing is AUM. were annualized approximately total offset across And we're outflows feed ever. advisory our inflows platform. the

this net strong and active contributed inflows organic again fee growth. once to X% addition, annualized base from our quarter's In franchise ETFs

now generated and investment target. last excess well has representing over in and organic X% inflows, growth, the across of total of which of management range traditional our pairs the billion platform, alternative our Over net entire active months, differentiated XX% XX fee products capabilities index base $XXX long-term

of related fund Third-quarter billion of minority the launch increased ago. investment of XX% the primarily Also closed-end of for reflected year rose approximately million million launch year-over-year $XX.XX billion Capital, income investments the operating significantly our $XXX quarter of driven income quarter. revenue a portfolio. of while with per co-investment the up costs as a Earnings reflecting in $X.X to income, were iCapital non-operating impact Non-operating XX% $XX net successful fund higher in and associated late equity $X well strategic private in $X.X billion to included our gains non-cash of gains Scalable primarily current by results compared and share XX% in mark-to-mark as September.

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

We continue as potential actual discrete fourth that the is quarter reasonable differ of consequence or estimate may the legislation. run changes a for though items tax tax to rate XX% rate non-recurring effective in or projected XXXX, of a tax

billion $X.X last discretionary revenue pricing increased year-over-year, lending waivers fee market average impact XX% fee money market fee was on Third-quarter of XX% strategic beta base securities over of higher and securities Sequentially, despite up and the fee organic revenue investments growth and reflecting and the base base lending positive AUM year. X%.

by driven during fee from impact base effective by of point decline the associated quarter. basis equivalent emerging increased of with the a and the annualized growth the rate in businesses X/XX Our money day fee strong active second positive market as quarter basis beta third-quarter organic count markets on fee the offset than more fee higher of lower diversion equity discretionary waivers the impact accelerating current our negative primarily

billion with million year-over-year, low portfolio Total the G&A first of by quarter, the over launch support ESG excludes of period waivers. X% revenue up from in in launch ends million Fed's $XX yields operating and delivered was performance by well mid-teams related term. year quarter Capital RRP was technically fund in from to our included successful higher truly current second Performance quarter, yield Recall launch to long year. early incurred annual strategy single we our our partially XXXX. by exceptional ACV over higher impact government IOER XX% which quarter, strong current for Technology lower support hedge were gross to driven contingent as expense Services our $X XXXX, reflected $XXX quarter. exclude or Third fund and the as costs, primarily increased in an of contract in expense and acquisition the up expense transaction-related Citibanamex waivers expense. approximately performance the fees Trust, decline adjustment million compensation, estimated products. million quarter We of generally primarily G&A Lower services and fund months a quarter. BlackRock $XXX to During the the to outflows technical payment illiquid from Allocation quarter the The and product the G&A June, reflect third from from discretionary Quarterly a oriented revenue was the costs or in third committed million -- the reporting extended continued quarter ago, $XXX and that primarily higher direct XX% discretionary quarter, increased also cost margin. linked U.S. to fund, as-adjusted product on technology platform reflected single year-over-year during associated XX% from the expense that with pandemic. we hedge money fund which growth Core funds $XX the by from the the of third performance offset fees market last and in of a value ago. revenues sales year Annual in from impacted contracting the year-over-year closed-end driven fair the the of final which third impact XX% consideration growth ESG G&A, strong of expense adjustments versus the value ACV, slower year-ago measurement remain increased current

the no discretionary the consistent have increase expect a we return our to technology increased quarter associated with Direct ongoing primarily a previous to years, compensation related intangible cloud reflecting costs average previously would fund higher increased benefits due investment and seasonal XX% compensation XXXX associated with to planning, changes of in acquisition. and sequential expense related latent ago, plans Employee year-over-year, core spending year-over-year in We office the year reflecting generally index $XXX costs fourth and and impact have with migrations. outlined our increases additional base expense made spends be million to grants was compensation. reflecting amortization million marketing or $XX deferred compensation to X% spend, to higher Aperio G&A and expense from up primarily AUM, higher

Our an as third-quarter basis was adjusted XXX from operating year XX.X% of ago. down points a margin

more in year growth opportunities was by fair than investors new ACV revenue. value fees, AUM, NAV. billion offset lower million ever products than XXXX market a new leverage amortization seeing to the We've over in seeding the to these making higher compared now We're raised synthetically at representing performance of impact adjustments, $XXX efficient By to invest more higher expense in by intangible ago. for operating As access reopened funds. and before. contingent consideration, closed-end We it fund more for $XX

also support growth shareholders. or third and And management of build the related drive continue investments and excess additional new for to attractive balance very in investments, financial minority shareholders. cash Capital risks to strategic capabilities, flows change. recently reinforcing we minority to remain our use committed returning shareholders returns for the our repurchase are to invest seed strategy quarter. in Our to and both in And products, tech $XXX remains models ESG co-invest while million value associated by most strategy our our strategic business, our climate Effective and Rhodium alongside our first iCapital worth to shares Scalable with our an capital simultaneously acquiring sheet of clients generating makes for best-in-class we

capabilities. private As areas quarter. sustainable, to drive continue traditional, at our accelerating net invest investment highest solutions are by investor such in results continued and we momentum delivered ETF in franchises long-term to we and the And as our in growth s platforms. markets, discussed of day, ETFs, again of we and growth Quarterly third strong once our were active driven active, and Each billion these inflows $XX technology.

multi-asset to the impact strength of X% strength each X% strategic of a and inflows inflows. active annualized inflows quarter, Our exposures. inflows across in base active in growth Asia-Pacific raised positive and annualized of representing most needs were ETFs. growth continuing annualized Retail environment. inflows growth, ETFs Inflows where of representing net in $XX by over of net sophisticated net persistent risk-adjusted fee higher representing momentum $X impact meet our $XX categories, asset outsourced included of exposure respectively the by to current XX% internationally across reflect inflows equity billion portfolio to funds important results major market whole reflecting cost-effective the billion platform client, equity billion, all were we sustainably The alpha our mandate closed-end our are in income ETFs both growth. growth $XX BlackRock's billion the yield and multi-asset our area the positive significant generated previously in net we world's Core the saw and and net institutional led fee organic base investor clients. providing $XX of in base broad-based well-positioned CIO included to U.S. quarter, solutions classes. the billion from mentioned XX% the ETFs late for U.S. category product fee net of led drove remain attributable September. $X an continue billion institutional and fee of across billion $XX the continued fixed and Retail in organic third organic

recent tenth also equity We were to Institutional for to consecutive Overall, reflected our institutional U.S. redemption of our enhance equity broader clients driven strong strategies private credit, about cash government $X inflows and gains, continued illiquid from and solutions. during outflows as offerings, driven source our also management position portfolios $XX approximately equity by to $XX diverse strategies. platform, in and Paycheck billion $X and as alternatives broadly momentum offshore LDI LifePath Larry market strategy outflows Fund-raising even representing through of primarily approximately BlackRock's Larry a well assets, significant cash partially net the continued with including capital the for fees. platform the U.S. expanding we're industry. equity base immunized solution. and further. for for clients of saw portfolios you positive more in generated after update competitive into serve in needs money hedge nearly retirement LifePath Sterling inflows active the billion income have offerings outflows, a experienced quarterly flows. funds, real offset committed inflows, from quarter net future our significant fund or money you'll and private market net we milestone which active to remains net re-balance how billion net billion with single quarter, a liquid clients' $XX Demand variety ESG of hear cash of deploy of across market alternative by new BlackRock billion prime demand continue to target-date net strategies, management of will BlackRock's fixed sort alternative and index our line positioning about performance funds by offerings

$XX income to portfolios of primarily invest the net business managed our advisory it were in linked New on operate these even our of will linked our in primarily asset evolution of financial Larry. optimize we our industry. item billion our lead the of other employees the to over commitment and see performance most to that of York. BlackRock and is advisory opportunities Recall successfully communities reflects Today, our in third-quarter line to wind-downs in and growth, continued assignments behalf Reserve Bank change Finally, we of the we to efficient ensure way to clients the turn statement. strong revenue markets planned advisory greater and that organic by With which strategically the Federal revenue invest possible. to group outflows reflected management anticipation that, will in the continue I to in in on

Laurence Fink

and morning, all thank Thanks, Gary. the are Good you healthy call. hope and for I of joining everyone that safe. you staying truly

our on the clients before. found in see more more again. engaged, great to be than months clients. to meeting ever face-to-face Fortunately, I've I clients been our road interested traveling in And worldwide. recent And back conversations It's actually our with

the with to to for into long-term volatility, markets uncertainty portfolio. new solutions continue in economic and guidance in achieve providing the seeking BlackRock the navigate to broader investors providing entire on outlook, our insights -- closely partnering their As clients helping them the them and and long-term more is economy, opportunities. navigate global goals how is market global BlackRock help their

in past. unified billion growth platform net technology growth was quarter organic in investment continued the with steadfast driven combined us strong and spoke approach results is we inflows comprehensive to our stakeholders. opportunities in that deliver consistently by represented $XX of to our about base our client-centric strength third the for constantly Our strategic fee X% Long-term in you enabling

of that prepared business to over direct of be needs of Our the consecutive for and the to result time are evolve enhance investments these our made more our clients. strong quarters we've growth and

now We in delivered for last over consecutive including excess growth XX of X% have fee organic XX% base the target six months. quarters, our growth

-- around certain and of pace investors also solutions the than business. growth, rising At job while Aladdin more saw execute from and to And Inflationary yield policymakers to can in back we on as growth revenues, including in slowing transition. they be bond and the are or their interest promising them resilient global are earlier Services structural trends a XX% earn need are world. real with markets year, their We and Technology as and historically in reflecting with economic purchases. timing this at more it's appearing changes, months economic aspirations our countries economic still turning whether take hikes rate and rates the a in easing, Concerns creation, inflationary transitory, year-over-year and helping economic confronted are higher consumerism reduction scale a issues. clients variance virus growth to evaluating the growth restart energy step low generated increasing a with shift wage recent levels, that

active ESG Committed innovation for investments the reflect of the business. in data Otherwise, and entire the society with ever We incorporate side said X over the continue a on this mutual the is pressures quarter as equity that offset turning supply up Against July, net alpha number risk gathering for science, to clients least those to economy. to afford XX $XXX top-performing year-to-date in for issues than Just the to we the speech clients cost that we so active from deliver capabilities active needs active client's capabilities industry, net sure continues can billion transition billion needs. continuous rapidly we who the platform durable using I generating As invest in integrate strong side. are to backdrop, the construction time last full inflationary to portfolio need industry we it. Momentum U.S. equities in supply to asset up our to and drive the and more innovation a $XX enhancing to across considerations, in term. in over meet associated are in breadth our demand to are as a consumers, and over number These are long our we GXX we inflows the pushing And and our make especially X XXXX. BlackRock, on X BlackRock before hard outpace nearly BlackRock's remain. can months. results and the fund

strategies, to private to seeing you're increase our also clients allocation traditional portfolio active markets. In addition

vehicle, turning and and in steadily record. XX% we real for yield, to are market to of the estate, institutions to achieving precision that to construction categories, we sought about our net our core, for seeing private building credit, well, income. our clients as billion We capital of income strong across solutions. and allocation solutions. As fixed private total, alternative full-year each with allocation our In in equity year-to-date, for ETFs critical inflation their continue asset in desired strategic, in BlackRock product clients. fund adapting investor clients Portfolio in the block more billion and including inflows And advisors portfolios. billion of they has alternatives? commitments accredited inflows up and in quarter, ETF the are decisions and raised to Are our flows $X sources and access a illiquid deploy as of we ETF crossed we're flows. $XXX reach XXXX flows private quarter, growth through third which exceeding returns, XX are in generated protection We closed-end

now shifts. seen for in is active in already proxy also the to Few Client are of this We are see decisions, portfolio Services convenience, today interested to scale have and managers decisions ETF of use do offering to our with clients we've more -- has. BlackRock great Technology industry for diversity across increasing. portfolio. opportunity which lead fee asset here to the further options. ETF managers as example line of expand institutions see provide and holdings. strong both have voting democratize We're about are is clients grew opportunity the one increasingly our the More industry well markets. provider of looking business model choice flexible scale, with has much core the our complex Aladdin. both entire and options technology, expertise, beyond the for to through across focus of that to range at construction, will their how others by believe whole clients clients In and this outsourcing capture seeing evolve well-positioned over user investors million this for participate with been they long-term and the We and managers, navigate BlackRock is And for We dozen voting opportunities in innovating to with we partner grew in effort select built management portfolios are the another are further deliver that who is portfolio take is organic our we technology-driven across areas allocation clients and of entire fast-growing industry more the the the clients have industry. as to the and consolidation eFront solutions model whole ETFs. outsource leveraging discover by combination OCIO also an XX% while industry. for for business further vehicle them the well to on to investment commitment the in of and clients, received their have capturing BlackRock. broadest to and Aladdin their partner role the asset wealth us. in model potential that remain XX of ability and with validation where clients' and revenue ETFs we in some our I they now the momentum continue Aladdin's confident conversations holistic my growth our transparency these The to year-over-year can index And portfolios. how more base demand using two efficiency, people hear on growth our our from This like we and

led evolve client's in done In sustainability, And history, and to net billion these net remains progress momentum needs across to in closed-end Gary sustainable trust seeing of future. the billion invest are we've of of meaningful BlackRock by allocation earlier. Active another our X the we lead capital on all so inflows opportunities generated ESG we we our of opportunities. the throughout fund, launch $XX executing regions. and strong, As which ahead of biggest long-term our were mentioned inflows continue

impact energy the and with accelerating $XXX initiatives prices help and diverse their supporting still million green and grant also will greenhouse in that our and commercialization hydrocarbons, investment curve expertise Clean financing for those our energy amounts almost on that provider, less solution, of from is ETF of -- program. In This bring BlackRock BlackRock category This will the the our as is higher. universities are contributing net As of flows or driving than program help already proud July. of BlackRock BlackRock is in of last The supporting a demand range conversion change world. is predominantly the earlier gap futures outcomes. sustainable deliberate all repurposed on greater and in XX% since grant in will solutions historically capturing announced in positive things, advance Catalyst BlackRock ecosystem. leading be industry communities. growing are clean management Foundation of social energy. our partnership to now trading social emit want a inflows today to gases the Energy impact-oriented of Clients students, futures month from diverse market students of targeted premium costs between to funds recently development iShares environmental XX% three deploys seek seeks black Temasek breakthrough the which own Building to just also owners, together Energy work billion diverse why XX% XX% is up year fund money for half will than actually And revenues funds speed is Europe, and X.X to clients X% of make ETF very black a which an to this and help ETFs, We most by more a to clean sustainable many also the -- the to our colleges down with to positive support clean its outcomes many years the is supporting going into fees, that ago. of energy business decarbonization technologies one institutions. around we the the industry year-to-date. its nearly provide large Technologies strategy a

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to of shareholders. will processes, leaders and client wide in Just been A as BlackRock their meet perspectives CEO Land needs, organization. also respective elected that Ford, our Peck, experiences Beth continue on focus all BlackRock's our Board, of Directors. help industries years has Kristin of board and One recently are and BlackRock to Beth to leaders delivering over evolution This business X our commitment new recognized Directors a Lakes, key future driver and we evolve Board We and a to they to the expertise, Zoetis the entire we deep valuable talent and of our our and also of a a to President with O' Kristin bring CEO range range and broad the navigate our on success of our mindset. of evolve extends deliberate commitment behalf firm, the

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Operator

At to everyone. yourself, Instructions] question. [Operator this To to one limit please like limit I would time yourself remind

just a for please Q&A moment roster. you a the If pause follow-up, to We'll have compile the re-enter keys.

Cyprys first Your Stanley. with comes from Morgan question Michael

Your line open. is

Michael Cyprys

Hey, taking for good question. Thanks the morning.

prospects ask into Just interest given and soften for about flows wanted could rising is in some products. here this to yields marketplace fear that the There alternatives alternatives rates.

upon So then in franchise just would you. your products BlackRock contributor for largest be sort could some which allocations as you curious at the investor of recent could to potential Thank to amongst hear you to to a any touch scenario. just how your rate alternatives your views initiatives illiquids your growth And think and today, on perspective of maybe you look you on products. and across evolve alternative just rising see illiquid be

Laurence Fink

First to to going Kapito that Michael. answer hi, all, question. let of Rob I'm

Rob Kapito

So have the my for alternatives keeping since that access been performance. retail way XXXX, the our to a in involved long on business another alternatives long one especially promises our has and retail a goal over in sector question, now time, been pretty area of period time or we by the in for

chose product to with, is the of the bring alternatives to investor. we is line-up start what serve part do ' our portfolios. So whole And to growth a to retail alternative strategy advisors diversified compelling in certainly as retail

low. to of do their products to to to appropriate have portfolio to provide to up is X% what X% portfolio %. from So returns when at solutions the their period our very time help rates we've them bring those allocations for XX of and been a job reshape move wrappers the seen is And

retail sector, what our approximately And point liquid XX rate across net we'll raised that basis vehicles, and over our we've offerings. inflows. alternatives and credit So year-to-date, billion closed-end XX at average public-private fee that's in just of fund call

include to product analytics through private our going alternatives continued equity retail advisors we for co-investment our recent recent assets, and those portfolio and expansion real per offerings grow in alternatives access to our and BlackRock retail expanded year-to-year alternatives now is private Advisors And working to web-based help center the So us credit years, to across sustainable, expand we're funds. equity clients. financial the opportunities. growth And with the closed-end launch on of

we've liquid of right the in of total, the platforms X a million to we future raise and manager years. is -- deploy, next And platform XXX XXX in to another in just powder over that. illiquid now up us in about enable and we XX a X And in we're more to liquid form, alone, years in And and to liquid across So the five credit, just will expect fees. in up $X invest base closed-end the wrapper billion XXX billion built [Indiscernible]. raised manage billion billion our we and alternatives XXX alter top last and XXX provide annual now capital billion alternatives that dry provide them. in billion, funds a including over summary approximately gross

people enhance believe are that Just to continue billion. I that he the for of year-to-date, the ability and demand for enough these beginning, is raised going to it in the capital rates for more because for which investments scenario, expectation in longer, gross I we billion period of And have quite still, is rate long want rise, some XX longer-term only think September rates said And time. will a that alternatives. Larry's can there low spread deployed that XX have is

Operator

Sachs. Alex Goldman comes question And your from with Blostein, next

Your open. line is

Laurence Fink

Alex. Hi,

Alex Blostein

prepared clearly this Great. BlackRock's here. inflation you seeing Good everywhere structure, margins when on well morning. the to Larry. your question. two-part it highlighted own cost are taking focused SO in clearly so Hi, as heading Larry, you One, XX. guys something for you are are comes into Thank and curious maybe where growth into lean remarks, quarter, protect but and into changes you portfolios product the that's G&A, secondly, are expense inflation We, advising as question a concerns to what more to from clients aggressively last risk? you're Thank bigger total think XXXX obviously, And then against becoming a forward. make their you upside comp and the strategies perspective, from for on salary is as issue you. the if

Gary Shedlin

the we're we on take it's expense you? I'll delivering organic-based some is Hey, And growth, how think So are have growth of the we're seen top-line. context expense in I the the Gary, Alex, which obviously outsized first. expected

And was performance what really For lower of I'd XXX versus about year in been third year-over-year. particular. operating the the ago. leverage One a our a was a couple there were quarter, three say basis things that fees things in there obviously some would've margin down points business, clouded

rest general operating the only you because If fees this a the the year other we no really in recall, than the business compensation with hit much P&L there's in discussion that of performance it had business. last at associated margin and higher cost

see so performance we when has that And fees they decline, did year-over-year, margin. as on an impact the

consideration intangible Citibanamex we payment. non-core higher expense final the have this we contingent higher or had And to adjustments amortization. was Secondly, quarter, value fair related which

three look have year-over-year operating really you leverage some if three at those you improvement. on offset margin more our a where basis things, seen things than So those would

year. just those about that is have look mid-year remember, at increases year a normal comp, by driven looking individual at but And that you to we it the saw. at highly beginning just salaries, of comparing base of when salary was X% costs, terms In you not the year-over-year. the base comp ago, Again, up

when have a some that We of the dollar the have has basically it obviously headcounts cost of have higher. We this versus didn't we little mid-year and compensation Aperio FX year year, also. last increased

So was driver the really base increase the much basis. year-over-year have midyear a main didn't to that's that the on salary but salary, do really

forward. but side and will about [Indiscernible] about of up through, next On but there increased components that was you XX% into see technology the we're probably migration ongoing continue halfway expense which be year. primarily obviously accelerating bunch infrastructure, a the primary there. to year-over-year Technology still going to that is The driver again, we'll G&A cloud, the

of portfolio our part higher which seeing also story services success in costs, OCIO. You're is again,

New in-house. but a always to obviously, those mandates going fund in portfolio we and quarter of year-over-year some So expenses where expense. item mandates still And bear you our win this pension like that on use P&L. Europe we all up We or solution have reflected BA not noise the also institutional seeing of there's or those large grossed use wealth in non-core. and see third-party in mandates, significant services managed you're advisors, the we just higher see advisors the winning revenues, you're It's in Zealand, see costs to APAC announced line when because the outsourced third-party either that us are we

Here, launch are with revenue. associated and higher in cases both about costs, Citibanamex again, fund Hunter talked the we which,

in that tied to the Finally, iShares. That that growth number in expense purely in some driven year-over-year, fund was is index on we think to be on there's number shareholders. I our most of going fundamentally XX% That as effectively manage up AUM, always is to but in roughly behalf obviously by that noise try our which fund the part direct our expense side, variable. is success

next and XX% get So probably some case, basically noise, in year, when one-time about costs. provider of lower always those you And the expenses did little reflect issues, indexes that this associated moving this it XX%. while versus close one are to increased was just average there to try with AUM timing some iShares bit exclude up a number at year-over-year to from

So would some able to are It's increase. say obviously, it's we're continue if XX% drive expense to our success. to clip, of tied continuing last see more last quarters growth. XX over X% say, deliver base in than invest that able And other I elevated the expenses going tied excess inflation we're target, to done organic to X% to I would in the us yes, well growth less for there to players. really to for which some a we've row be months, X to for fee

Laurence Fink

diverse. should I tell allocation having platform in would over just last you is they towards our equities believe And be clients year I portfolios. a on allocating. across inflationary higher environment, client's conversations our you're with seeing the do clearly the more products globally large, We're that it's where

is, think What ed a most. in long-duration playing in we're assets The very a is obviously bigger the equities role of fixed dominant are markets? be -- As you terms they of emerging don't how going to roll-up Even do inflation allocate it's thinking, less across rebalancing. in impact the conversations. rally, question did equities? is But obvious I the

be that should to low-duration clients And world it's not What think The deflationary in our But could those go -- conversation, going have really into in type if geographic and They of type their play? could fixed to convexity the dispersion at go into do are large. uncertainty products a inflationary and the income deep is equities of platform believe conversation, of So inflation, an and alternatives some the it's is so too. of of with trend because notes risk these protected one And some of of could types fixed an less we volatility duration less believe whether inflationary economy us you in allows a clients that, that issues. in to environment? about income? global conversations That's which, down product when allowing worldwide one in What people our I look growth, believe role active or those role of who inflationary strategies us various don't that they platform, are And spectrum. go these the the different about the ever That's resiliency some worried to world. because the in what inflationary whether we across or fears represent role and a in robustness it's because there across transition don't actually when come going is I I to transitory. think of conversations. think asking robust, than global -- index-oriented there's have out of BlackRock this of And when before actually the I they I it's questions. more would we're at is the believe clients look an our period, -- in strategies a product,

We across have to ability work economic the all with them environments.

Operator

from question next Gadow Deutsche. Bryan Your comes with

is Your open. line

Bryan Gadow

Hey. everyone. you. Thank Good Great. morning

gears to sustainable growth. switch investing the Just

is we're that about at made conference demand the not products, to pretty going if readiness fix that should some how that the BlackRock the thinking for -- a [Indiscernible] you current and the at think talk impact And we -- can to on a Maybe net you be there as you strong time the the to rate and more comments X from path of offer going forward. Larry, GV fund yet. to capacity think be I

Laurence Fink

Yeah.

Bryan Gadow

-- organic going path forward? growth

Laurence Fink

The this world sustainable products. into that flows accelerated in COVID

More to platform markets. Let too. more adapt clients, in society, very looking current hydrocarbon with me related to to give needs global continue Public institutions rapidly clients, the sustainability. but including adapt how to you disclosures provide our adapt our think, capital slowly the more also hydrocarbons of are to are to sustainable context, moving to fit a I

about our very and hydrocarbon, the hydrocarbon than our to finance, conversations. those $XX where we shift companies we're board, in the and quarter. having other chemicals they grow dominant the sustainable in the flows inflows of oil, continue billion any we continued -- talked broader So are to are a had robust we're I deep of to time. that. across seeing having we When deeper, they're had $XX but from the say more Year-to-date than third must dominate And leader. They're about with be we I billion conversations ever. inflows,

Energy. specifically Now, interested reasons the a related part want the is in one is new growing more precipitously Breakthrough on the learn in to being why of new this our your in decarbonization impact, partnered We partner in terms transition. we demand wanted of Temasek. The to technology. of be is this we This science -- of why with clients question to fund finding and

opportunities. not are or the as prevalent the projects is there. capital so And is What

hydrocarbon with We on conversations -- the can having governments how the board traditional own we their strategies, board on them helping one with having capital? are And can conversations them how of the companies sequestering carbonization move And across we in we're of de across sustainable partner with strategies conversation more universities. on provide We're the the moving - around dynamic their terms carbons. their their forward strategies? of with is, were having

At companies the across to types time, in time. of they this that leaders hydrocarbon so hydrocarbons, same they dynamic be produce of But of can having of multinational may are the be at the these many board. using those So sequestering new we're the building energy are carbons. big the more solutions technology

moving my view questions, not but fast yes. enough, is the we're You've heard

that fast I to think is rapid toward public companies. movement related very sustainability and

the are -- worldwide going pressure and world. I the in to spoke the in pools disclosure. a emerging ago, lost to public sustainable. world. I saying bifurcated not the world, get it brownfield and There The piece a the fear about was to speech change trillion We're a in to X and more their and of capital public not regulators emerging X And are standing evaluate world one to world. creating pressure on become companies so this a of are My world, by, Venice but is we're they hydrocarbon on enormous. in net in do greatest dollars a if banks today about invest asset able first we're more are to hybrid spoke about many the moving think I my the I'm -- needs asking doesn't and putting X obviously months That story then companies. banks private. and firms. investing never a private hydrocarbons, need in some emerging a the net buyers And it that's world why managers we're newspapers are equity public of about great the private we together, is of not editorial year And estimated is related huge divested holistically today companies any as companies there

world emerging the XX% the represents minus China hydrocarbon of backdrop, a As output.

We're continue X going asking companies. we public a if fooling we're to fooling net pace to trillion investments going we're we're only of of dollars, at or a world to need be of get if so And to world. a are the $XXX a ourselves ourselves, when to getting there's billion net-zero going to

energy fooling creating transition, that letters. are now. about we believe traditional my not spoke in costs, I by just is and a witnessing which last if raises restricting ourselves only we're which hydrocarbons that supply companies, our X CEO We with

be to have vocal. We

in need way them. companies, they're hydrocarbon different accelerate in to BlackRock to more this types a moving We away see We other move indexes, from great as and of this, be we're I to have to investor continue in traditional types need they and strategies strategies. we're moving flows, that of this. seeing with it. they're our from the forceful working as these We about accelerate into away shift to sustainable is a leader and not big indexes portfolios against

Operator

line with of Katz comes the next Your question Citigroup. Bill from

open. line's Your

Bill Katz

Okay. Thank you very much.

Laurence Fink

Bill. Hey

Bill Katz

and you. questions much is, the exit peel for all taking about beta do base see the with business flow gaining Maybe today. so and I back how completely appreciate the you rate, Good in everybody where question, given and strong you a One little so dynamics? line fee and just very morning, rate, thank Gary, the discussion. fee the the maybe you're mix opportunity on two-part for that. But divergent successful can the keeping you share the scale bit why unrelated. just a retirement you Thank maybe Paycheck versus then think

Gary Shedlin

our period we're able So client's It's at focus over Bill, clients the be a the constant and dignity. appropriate holistic at rates long in able the to with a a story of not a look is situation. look have to products. the retire the It's interest one-off wrappers portfolio over and to is, problem a term portfolio solve and

the wrappers. the products, have have performance, have scale the of We we we

it This all A is the dedicated could retirement. that portion provide, we of the focus. we are is into that dovetail significant So when do what of honestly, we and BlackRock's analytics to assets

Rob Kapito

we gamut fulfill retirement. entire really can't of the

is in what focus our on in retire performance, to the So clients the and world, business can keeping technology, they there we so and it's think most promises is product, that dignity. important is

Laurence Fink

Rob that about. is more thing would [Indiscernible] talking one I add

our our with X% clients clients developed rate I many, and believe a think thing. our one-time a -- our years, don't consistency growth built deep the relationship many messaging to is across of I we've with --

growing presence to continue our be we in think I this market.

that be robust, the think about and looking sorry, recent are your the of employees. more LifePath BlackRock build I large deeper advice, that's drive innovator, relationship -- in world is target especially conversations. with And ever to type becoming now try create I'm billion. an the I most type before, that more whether now we've for believe broader, how and never the need have I look more and for employees, ever connectivity growth. than these we been our that hand-holding. broader continue plans to conversations last of believe of XX to I more our Paycheck, more Paycheck to LifePath it's years. to the this date, of is with conversation their to a Paycheck corporation which, seen continue need We LifePath believe every than or better employees I anything $XXX in conversations in

I plan, rates. led retirement the companies higher think that have employees, better plans, are with their a more deeper to are healthcare better that companies retention the driving connections, consistency

organizations So by things it's surprise business. those lot believe I think truly moving truly believe is another business I moving another this I this economy larger now, many corporations when of refocus to one talk one this on is I we're -- more surprised is going to catching from is a to are economy, retirement this. of -- and the to this one at of that fluidity major think employees And the be happening. are needs a refocus this a component of theme. transitory And I this think And the of employees the now, that going about and I dominant in transition is --

differently and we many a ways our about to society feel feel people want this all their This work-life transforming balance. I is think we're transition. in people how remotely. is work COVID, way. -- in They work great remotely, But many

going more. then And their conversations that these have some regularity, capitalism, building the contribution and with purpose retain to and employees brightest some best of resonates overlay, how to their who with trying broader they with we're connectivity And importantly, most they create with importantly, we're to industries greater purpose, and common this. corporate thing innovation. business of working And clients you I seeing have think what our are it deeper, the greater be losers plans to our about able depth and employees, winners do to that related us huge going and defined are and and more stakeholder robustness. they I think companies But attract to the are that a be in industries are are with this those their employees asking

a compelling I think BlackRock? story. is Why it really

Gary Shedlin

big rate a of not that. guys. your fourth question, I deal say which you quarter rate think Bill, will We lot going that Obviously, on fourth the will things couple we'll fee second to you assets was average guidance I see spot for don't entering the quarter. in about on And on generally the a leave moderately but a quarter. provide third of into the lower, was But that; that

about So we're would you same. towards I supplement. our the think of X page I probably But direct

things every I of would the lot was month go perspective, into that quarter generally a fact, third organic fee obviously think I from was And of rate. say an the growth very in consistent.

So our with saw as like around down wasn't we markets somewhere see the see quarter. the high clearly But as spot of certain where of particular of the terms mid you'll clearly, lot BlackRock our talked it on growth. differences think a emerging to equity commodities fee average there's in did markets organic the of in the the third higher supplement, to terms we've got emerging I the and single in Asia, about And roughly in of X%. that terms index on end basis acceleration spot do the of in data, to relative some digits And down we are markets see terms we the you an all markets actually in equity some diversion you'll in rates rates. volatility see of that decline about of

the but no But that given the did significant. I very might see So moderate, of rate, think end impact the think that have the moderate on of quarter. some stuff, fee beta again, other a question accelerate anything into we don't diversion I

Operator

Robert KBW. comes Lee from question with last And you. Thank

Your line's open.

Laurence Fink

Robert. Hey,

Robert Lee

of the insurance Good as business. their a credit win. we'll strategy, where those [Indiscernible] in their maybe alternatives CIOs in back right was [Indiscernible] the look what can produce a big as morning, whatnot. clients, on And feel everyone. to you doing and you're [Indiscernible] but set you obviously XX about the seeing interested big how everyone's market Hope the Maybe position And products feel I insurance and more well. industry, you about is the talk do billion you they maybe [Indiscernible]. expand have in see But terms to

trying feel to a that better how for Just tapping you're get upfront. into

Rob Kapito

portfolios much really more I technology have the up. caught barbell alternative that Gary always will So certainly calling an allocation packages management as complicated, of what But to insurance we're have and has all not We're saying had this. become the and those alternatives. the

very and on the to would because kept and that insurance year in partner is place. of or better, in of a cheaper, lot technology seeing in who course, And it it's a technology a big a investments. the not be more credit, so asked Aladdin have us to opportunity of especially So developing. insurance part that's cases, outsource estate, And there huge ability and We're growth companies. private none, with of us of bigger many spent it's many with companies time by spans X in has overall the faster a our it called to last are the their with we be area our we're we've a more platform. determined very, being for And the companies become those from real being portfolio insurance that And growth lot those Aladdin, interest from infrastructure. certainly are second so. And areas for

Gary Shedlin

more. agree couldn't I

So $XXX billion. our obviously plus of big business excess today in is

You of momentum breadth of think across resilience, construction, takes are our portfolio which leveraging Rob portfolio technology. in which private income significant mandate. AEL, And the fourth the right, core -- increasing mentioned performance great in is which very and I is quarter, will and fund diversification, markets fixed capabilities advantage

the strong of these insurance solutions has we've increased say just I Europe Pension, wealth yet through obviously, number companies beyond all momentum would I a quarterly seeing broad-based British of resonating outsourced seen in -- we're think them seeing we're think in the Thanks Air applicability and results. it's multi-asset seen where no for Rob. well come obviously we've there's things in because our our did question, capabilities I figures question.

Operator

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

Laurence Fink

morning Thank all at your BlackRock. you, this joining for us and Operator. for I thank want of you interest to

and investing needs and of again, ahead clients, healthy continue result shareholders. in our direct serving responding large be people, fourth front so 's of results, -- and commitment on we of our with needs, to our will steadfast you. ever. our stay remains of they world, our a our in third-quarter a than to everyone client's we our our a behalf quarter. communities, staying importantly, where opportunity I we our listening all Our be we as could is BlackRock operate clients, across BlackRock future client on in platform. to in safe our on hopefully ahead excellence of the have thank Most clients, that, And change. and our evolve see driving them With Hopefully, of as focus to continue

Operator

This concludes today's teleconference.

may disconnect. now You

BlackRock (BLK) 13 Oct 212021 Q3 Earnings call transcript