BLK - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Myra, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the BlackRock Incorporated First Quarter 2022 Earnings Teleconference.

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

Christopher Meade

General Good of Meade, I’m morning, the everyone. BlackRock. Chris Counsel

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

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

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

Gary Shedlin

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

Before over it and results. our Larry, review business I’ll I turn financial performance to

discloses our I’ll on focusing primarily results, earnings and While financial adjusted release as adjusted be as both our GAAP results.

the to our and and consider we to BlackRock’s future. non-GAAP quarterly late Relations fair Investor website of over recast posted and the of We know, adjustments. consideration regularly historical that first included investors, of also increasing exclude useful believe costs XX while earnings account investors BlackRock was the adjustments with disclosures may comparisons March these asset operating intangible adjusted beginning goal metrics recast and provide to income, been helpful This time, income contingent release. reviews expenses our As additional adjusted to many amortization, XXXX. companies. has other these results, net asset consistent Pages as XX To our changes on other in our provides management excluding management more value a operating as providing XXXX performance with impact understanding XXXX, and the and financial with in comparability we of quarter we impact our of for for the and you margin of definitions also updated information acquisition-related on of of in

revenue classes, $XX $XX Annualized financial all will organic strength positive total While in the our growth two financials. institutional outflows. call this our sequential once asset inflows underscores serve asset ability the the BlackRock BlackRock’s long-term across profile. flows platform current year-over-year growth results quarter, organic partially management reflected and during these to comparisons and a variety net billion quarter index seasonal of on recast were to performance fee technology, develop clients styles to strong inflows market active again our diversified in for Quarterly and franchises conditions. of generally $XXX regions. first of growth into We’ve quarter. ETFs offset years to reference X% by and base net the core quarter net impact and of investments sizable cash relate our of investing. of organic diversify multiyear deepen and flows mandates equity invested first relationships sustainable of X%, solutions-oriented These and investment the and private our ETFs, generated billion strengthened representing with long-term billion with enabled platform have successful us markets, management have to in clients industry-leading annualized in

investments. a compared the value impact First in costs fund reflecting quarter Non-operating billion driven of investment $X.X effective X% share Earnings lower the revenue of also closed-end first $X.XX the of losses, seed XX%, XX% declines of XXXX. primarily launch and $XXX income increased ago, results rose lower quarter up million by to a $X.X of rate partially $XX of income mark-to-market quarter. of by capital per operating the was for while in in lower million year-over-year, diluted included tax year net a billion count, offset quarter share approximately current of non-operating the unhedged reflecting

quarter was awards related for that each the and first benefits vested rate in included $XXX compensation benefits, tax as-adjusted approximately quarter Our million XX% the of tax stock-based of year. to discrete including

to XX% as reasonable estimate rate differ the in tax run or effective the XXXX, tax for though legislation. of continue or rate potential We a changes projected tax may of nonrecurring because actual items remainder discrete

count the Sequentially, equity day and of driven essentially an revenue was last effective basis, fee First of impact revenue and base in base first money On reflecting discretionary fourth part by the to X% the divergent securities waivers. lower approximately We by negative incurred the lower of waivers of growth X%, support primarily fee the quarter count as XX first impact beta equivalent market base up lending flat our million down gross was quarter. $XX year-over-year, was day fee quarter discretionary a securities offset fee compared the X% was months. $X.X yield in rate quarter. organic billion lending fee over in

of Recall fees XX% ACV, during to could liquid and Value, XXXX. volatility confident long-only services from Quarterly market products Total Aladdin’s when ACV fees end-to-end which driven quarter first ability the by decreased in by year generally However, Recall Annual funds offset we our waivers primarily continue were long-only so included of benefit to the expense fees in partially expense. are Reserve a the XX% a higher a delivering and technology for closed-end following we remain distributors, launch excluded $XXX alternative year-over-year, XXXX see mid-teens SaaS alternatives. to and and increased offset in performance million ago, shared year-over-year, as low of hikes partially costs, liquid strong X% year increased Bank fund capabilities. our distribution expense removed that compensation with earn in by part cloud-based for the as-adjusted rate approximately Federal compensation certain demand higher to higher cash XX% of higher by of revenue benefit result expense the quarter that operating is from by the Employee March. impact increased the England in programs. compensation margin. primarily fee illiquid gross year-over-year, lower essentially Contract of from $XX compensation, down and first Recent flagship our mark-to-market up base growth, expense. in deferred reduced by base lower from costs offset X% launch million reflecting of mentioned driven previously or alternative waivers Performance compensation revenue expense fees partially of are year-over-year, was closed-end remainder from XXXX. G&A certain was reporting fund lower reflecting products, reflected XX% ability incentive ago.

occupancy base growth are higher expense. provide include expense, technology sub-advisory of from including with will seasonally a quarter the year business, associated ago our increased and ongoing item and to XX% of return-to-office cloud, Excluding expense, introduced the of due marketing fees. promotional Aladdin expense G&A and lower associated We partially services offset migration more with increases expense into marketing line reflecting XX%, in within the technology, strategic with investments T&E which and by associated lower these expense expense for enhancements hope historically addition offset a successful expense. which higher expense, separate our portfolio along by services strategy. Disclosure the costs costs, promotional primarily G&A than more in this including transparency professional Sequentially, OCIO included expense G&A to decreased this was

AUM. our to AUM momentum due index X% in accelerating outsourcing reflecting is Larry average index BlackRock towards positioned primarily higher fund occur is direct expense that more despite As the detail, increases, average higher in quarter. increased discuss business this opportunity. trend will fund in the year-over-year, Sequentially, fourth seasonally increased Direct OCIO lower rebates and as to well capture expense quarterly

was basis we from ago, Our are primarily reflecting year ongoing quarter strategic and people. a first making down operating the of as-adjusted margin investments technology in points our XXX XX.X%

advantage has As positioned in been the before stated never us. take business January, of opportunities we better our to

are looking as wins portfolio lower ways global, These favor platforms managers, more with fully for outsourced opportunities BlackRock’s forging comprehensive cost returns by and the We over relationships. like and seeing including trends evidenced quarters, relationships clients see by such at several fewer a to recent scaled deeper ahead. we increasingly optimize

growth As most always, organic possible. to optimizing committed in we the way remain efficient

we drive prudent will managing stability resilience market to and continue the continuing level on focus our to deep and in opportunity to variety be markets are proactively invest discretionary of structure. responsibly support In conviction of focused of the strong we so. doing model, growth our our if our of and diverse continually set ability and business to We strategic We our a base, necessitate expense has spend, conditions us us our which overall cost manage reevaluating the remain our term, demonstrated in in entire to initiatives. ahead have near on

of through invest to in cash first, capital repurchases. dividends and then strategy share return shareholders business Our combination excess to to remains, management our and a

continue through to prudent seed and and position further BlackRock through We organic co-investments our strategic invest growth support to continued best sheet of to balance investments use for accelerate success our efforts. to through

technology we conditions, to per ecosystem. digital capital announced year fully of to detail, At including repurchased the infrastructure the for quarterly assets in guidance circulation. quarter. an stock and for the increase and will dividend Circle, for at and market payments week, other common and in price, least in quarter We of billion of January. frictionless minority for across of announced this valuation share subject we first with of the enables repurchasing $X.XX based the per being fastest-growing with previously million Larry the of in balance our Circle’s common As dollar-based real-time operator of on $XX discuss $XXX present, the is spending financial plans million in currently transfer previous the than applications the our shares still anticipate explored more stock consistence year a XX% more the and of in market investment relative the coin one earlier our $XXX reserved worth our USDC, shares stable

turn from supported hear diversity generate and positive investment also platform. inflows to never by X% continue segments, and varying Larry, base generated once meet billion industry-leading breadth net them growth of first been macroeconomic our highlighting organic and of you’ll durable, growth. of annualized enables BlackRock diversity long-term again clients our ETF of environments. $XX relationships billion, they to net and have their ETF regions with to client, The X% annualized the equity, organic were help asset quarter ETFs representing total franchise unique BlackRock’s channels commodity fee particularly across $XX inflows revenue to our As sustainable organic BlackRock stronger, highlight strong ETFs. us product and needs. in the our of Results

spanning and we one $X investors and liquid our alternatives us quarters of inflows, the the Institutional for led clear will billion now included positive to have net large expectations are global institutional billion net from billion and serve the index where into franchise U.S. investment inflows example, billion and institutional equities, persisted, leader, with billion two relationships, clients. continued, and growth recent bond institutional to multi-asset date, For the $XX our target whom $XX Retail of internationally fees. approximately of momentum management and as in billion of of inflation also in Fundraising offerings. active offerings. of quarter systematic alternatives billion highlight, a deep net turn institutional committed equity ETFs the by were during expertise active investment in illiquid category strategies. clients of gathered BlackRock’s reflected both inflows strategies, franchise approximately history. Demand generated clients capital alternative income we LifePath Larry $XX enable multiple and commodity challenging net $XX active with remains deploy infrastructure strong, private driven significant net strategies ETFs, alternatives liquid and fixed source funds. and most inflows of in as future for performance base and choice alternative credit, $XX and representing inflows inflows for for have a our risk as liquid we technology our alternative of generated in partner variety into to by world-class continued net strength $XX increasingly as BlackRock’s scale, of

beginning additional liquid billion gained our has including and committed AUM now we’re Our alternatives in billion net quarter has capital $XXX team. flows in of visibility, on approximately during managed years. the quarter all detail this of generated And inflows $XX to Overall, active and but credit provide supplement significant and alternatives momentum over platform by our the active generated XXXX. earnings increased positive one recent since starting quarter, BlackRock

with U.S. scale of redemptions prime Finally, has broader cash government the risk distribution our and management delivering money and in innovative industry. saw billion, by BlackRock’s BlackRock steadily industry net for of the offshore market cash funds, leveraging clients. share solutions management our and grown outflows line $XX driven fund money platform management by from market

of underpin expand platform. of generating we investments the areas are Circle high-growth just In that such reserves in We look we’ve and the areas today, are our and results the with a summary, relationship highlight manager the to Many strengthen partnering benefits which once our years we their that the cash future. made few quarter to in strong become to significant ESG, first were not diversify ago. in contributors of and an as existing alternatives USDC, forward primary and again manager growth

develop deeper today, to are client we at relationships point history. result, in any a As better able BlackRock’s resilient than growth organic deliver and

so efficient of meet possible, With I’ll that, the do in growth responsibly Larry. organic stakeholders. we and over all optimize to to to remains commitment turn needs will most the Our way it

Laurence Fink

Gary, call. Thank everyone, thank and the morning joining good you and to for you,

people new interdependencies and countries geographic a and I has will flow It’s globalization since shrink XX borders tragedy that is last of a As to across impacting but path are seen fundamentally their still global in wrote and The past the critical going will month, the Cold that Russia’s the the alter seen reevaluating to War. we’ve shareholders but created invasion also and economies. to continue growth the years. to over only Ukraine be of goods we of of economic geopolitics, humanitarian not way not end have distances, companies technologies

investment ahead enables fiduciary, many serve is build partner clients to to more clients, and scale with and work clients and pursue market working of environments. global We over connectivity becomes periods The changes long-term platform to industry-leading insight, to with of close all our provide of all during portfolios, a even needs grown our a our understand We these how years expertise. client we in clients. and the their goals. comprehensive footprint will evolving local will structural have help us technology By As we BlackRock uncertainty. invested them our a impact market a financial of trusted as type of to that volatility breadth constantly platform, BlackRock’s but important

by hosted here impact how trying recently the our been spring visited whom heightened Japan Over investment two in States, relationships last same engagements of held X,XXX have update remember believe Middle calls months, in more I Ukraine, with Russia’s clients pandemic are never connectivity to than the the with following client market during I invasion of the understand weeks geopolitical the and clients. in and macroeconomic and BlackRock over and many outcomes. our United clients level also attended XXX East might clients XXXX. of their shifts the stronger. I initial of

behalf. our Our clients appreciate on their and voice for our investing consistent long-term advocacy

styles the management breadth platform and result quarter, demonstrating in flows these all Organic inflows all quarter’s clients in and first growth first deepen our net reflecting Our relationship two mandates, regions. of investment across with billion partnerships included generated positive BlackRock significant to in the all long-term demonstrates our in quarter globally. the client strengths. ability a build $XXX types product asset comprehensive

continue when also may about breadth saw ACV that often, that in of ahead of We others opportunity play and to company, enables as about and found focused to we Aladdin. excited that our history as back. we the demonstrated pulling future. we I’m the the resilience that is will XX-year XX% public for recognize could we services the us, a benefits our clients find. I more have in times on incredibly are Throughout opportunities spend of be us technology offense a BlackRock’s growth market investment intentional our uncertainty, margins. and have invest greatest

investments Our driven in and value and agility growth, our consistent cycles shareholders. continued responding to our growth our have market opportunities generated for across industry-leading

leader sustainable heart keep portfolio and in to at in deliver a of markets advice to Our alpha Aladdin strategy investments to our and the investing. with clients closely the accelerated global growth solutions and in BlackRock, are be private our aligned whole iShares,

look to of is of geopoliticalship inflation. The creates mind in was of to effect supply capital implications and decades. United from are chain top highest in goods, shortages in already Our a the clients difficult are investment in Central economic take marks that have They to may levels. before Even rates that and labor for Canada raise the United shift the shock a commodities Ukraine including in investors policy European further accelerating to bottlenecks, broad rapidly inflation increasing level services activity we the rather eventually as above pandemic, the trying rates a inflation global chains. than a supply live profound demand States, across the war, in of and Union many to with of carefully harming changing environment. as without invasion reassessment supply-driven Kingdom, Banks also supply to It Russian inflation contain the understand is the position neutral inflation a the consumer employment.

may they more hand, projections Fed’s the of been saw record on than index policy has aggregate The expectations down inflation was in unchartered. the one Bond aggressive resilience. be markets, down the shown some markets become and bond was of quick or X%. quarters be However, more for on the US to to market. rate market price Equity US forced stance the have worst other

ended around some quarter, X%, Following of broad regained significant and losses and US market their the respectively. market and quarter down first X% volatility European indexes in the

could work to guided as remains capture and always, them. investment so providers. BlackRock positioned to be is could BlackRock who evolve our Clients their we consolidate more, and we As with serving opportunities constantly clients fewer needs, want clients’ provide uniquely by partners increasingly better

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Operator

Your America. ahead. Instructions] go first [Operator of Please you. Thank Bank comes question Siegenthaler from from Craig

Laurence Fink

Hey, Craig.

Craig Siegenthaler

Hope, are Larry. you doing the well. and morning, Good Hey. team

Laurence Fink

We and hope safe. future. too are healthy are in I you. Thank you

Craig Siegenthaler

and about income, perspective That’s income question great. of and fixed inflationary going I given fixed thinking prices flatter demand XX iShares bond fixed on probably demand a first the bond flows Larry, in wide Fed just the know in we’re is is still And reaction months, ramp income, the year future see fast positive. I’m breadth your over we trends product given ETF unconstrained there growth, quarter, likely some are on in But in SIO, backdrop. client your too. to likely but the my although wanted lower funds next

Laurence Fink

Obviously, inverted but different yield been question. the let time, universe some maturities is broad durations. as get specifics different to me into I we’re Well, going have income or products, your I’ve curve saying, of an for think fixed a of

going away demand. we’re out talking into been funds see going quarters. duration. longer can shorter-dated and is investors a going in if and you it anything, into the institutionally, in see which curve, Obviously, they is yield which an defeasing products, liabilities, as the duration very pension witnessed, about funds. longer-dated we’ve maybe XX-year would different market During volatility, from a lower to you create income you’ll begin see to of movement move inverted cash, we fixed I durations cash retail outflows why believe X%, I’ve rising range, have if XX-year fund money to shorter in to equities. maybe have for a from huge yielding see like X.X%, tactically, But if And funds or market you’re But movement huge move stable. That of in maybe

be is clear, movement within fixed let’s large. quite So income

across investors worldwide some turnover think highlights As I income of I that fixed help fixed talked I that about, the around world really resiliency clients in we’re are income be to and what that’s of just witnessing. type ETFs that to repositioning think of navigating And is portfolio, ETFs, XX%, liquidity. with able But the our a that going is this. greater

duration, the should great around aggregate You navigate the case, team, investment see Reeder to that on the They’re duration. of to innovation ability a of -- not can the unconstrained SIO, And there. this duration investors’ investors is think income example that did with an and depending be we within mentioned in how believe our SIO. index. they stuck Rick under they flows that’s I positioned, now give fixed wishes obviously,

is real see continue We’re in going to unconstrained. why SIO. opportunities to This we’ve developed

the I curve. yield should seeing around saw we across board, So where broadly think But across they you’re income. are fixed are be the portfolios basically navigated being clients reevaluating

from municipals demand broad-based We continue in see this country. to

in in seeing fixed And so performance all one market, fixed years any in real panic not we’re income at despite across the in XX-plus board, quarter. the worst income the

partnership rising is clients really and you should a would above and return clearly an is they would opportunity, where -- deep So, I say not think about they about create our rates. helping conversation is they that’s us long-term with problem. I can duration, how rates a they the how them can that this inflation think how and should helping navigate tell inflation,

I with. information. tactical in we dialogue it clients let Rob all a very to more me little are you well working rising are environment. And we’re open rate these a with our to give up that for So the think on positioned issues But

Robert Kapito

Yeah.

seeking to rising duration follow-up quicker do are diversified, fixed because And as positioning people gain much of times, constrained. within the depending just helping core a on FIGO, upon for their which of have typically income. It’s clients be Larry’s net over and ETF why protection quickly if the that more less it’s lot time. saw from, of in we parts SIO see in that positions we the income, different A you faster, accumulate of is rates that ability income. we maturity into risk, through to billion exposure ETF Larry described, curve. especially $X.X But you bond market and what this importantly, and could they’re assess them very inflows are their comments, market, we fixed rotate to And within period fixed So portfolios. help in tactical the

we’re flows but environment. do the in position rate across concerned, seeing how rising So certainly, we clients board. has The performance good, a been are

Operator

Please from Fannon Dan the from ahead. go comes Jefferies. of question line next Your

Dan Fannon

morning. Good Thanks.

Laurence Fink

Hi Dan.

Dan Fannon

I could CIO talk the was about opportunity. outsourced you hoping

dialogue that see, Maybe how several clients of You wins. the having had or guys size large with you know the have opportunity that and don’t you’re I prospective discuss overtime?

Laurence Fink

of announced companies are having Because in an what we it’s win worldwide. our funds comprehensiveness insurance of of a the position entire in we outsourcing, investment company pension with because of part our all of kind the British these So unique UK. Aladdin, terms fund. companies this, last with insurance pension provide with worldwide of big platform, whether general year our share or We a dialogue on with

many now We’re funds. having conversations other pension right with

see We’re to can long-term -- their and achieve help goals aspirations. looking BlackRock how what them

working our insurance with portfolios support, many their investment they see if their can with and -- team better than manage they provide them can team maybe part better together. We’re leverage with existing we opportunities a and of and companies

do the at Rob, we funds, There’s at So have firm as on that? look want the in more more on And probably as our to well-positioned comes conversations probably time are any opportunities say you history. insurance across in and to robust. world more any pension we’re it. anything

Robert Kapito

Yes.

Firms of has can performance the need, invested BlackRock not can the them very better scale size help price and get at gotten business them. the has managing with we investment sourcing help in scale can expensive. complicated, do what think technology money have and a size the and that better very they of the certainly I and

the And that dialogue, better, faster, they So well. do with as go there. work we and have the can it a in, people cheaper actually company technology and have together handle the and operations

Operator

next from from Bill Katz Please ahead. comes Citigroup. the Your of question line go

Bill Katz

I of commitment much. but a were hand, sort willing bit for I I you sort growth a Maybe we level reevaluate guide of a also well. high the Thank On Gary. given you about to talk the heard Okay. appreciate this one as disclosure little to quarter question spending. of backdrop, heard the very market expense

So upward for growth, quarter would in the that quarter? was light, second can into you suggest that there year-on-year triangulate comp the first And between anything rate particularly run this in prior and of the for G&A pacing bias Thank guidance some in then unusual quarter? expense terms you.

Gary Shedlin

Thanks, good Bill, morning. and

and think then spend to come I So question detailed I’ll questions on for your G&A about back and is the comp. year, your more

relationships back many in organically year, continue talked at number fastest our on significant active, industry-leading industry, what managers, we’re Larry and as the premium margin. were a clients my about traditional optimizing about simply January, of think they’re many importantly, to last to ago, growth ESG, about, we to continue ever, in both years we expand not talked models, that think, remarks, said, rate And see our just and we organic their were increase to we’ve grew echoing I years and generating talked very our just I looking in for fewer and as invested to opportunity. obviously a which relative particularly developing business I in. are incredibly think operating contributors areas Again, and areas today, to growth we and Rob mentioned we’ve as whether able the with well focus it’s as doing wins. we’re alternatives, that Rob few Larry significant those franchises for we strong on just And these deeper high-growth of I in

in near very term but agile, also been we that to spending And And the efficient the continuing to committed we have at growth deep And have and to future. focused margin. history, in where for we’ve that think as our model the historically was are in And support I on invest. We’ve that regard, can. made I continued think done here market both no shown our suggest change reevaluating stability to structure. in we’ve growth major as not in prudent has done we’ve that level manage or January. goal conviction discretionary overall past, both to But of plans our XXXX, conditions our most ability we so. we if will we be said, out that whether past, our the in we we we XXXX laid we our that you to do So increased in organic spend way we’ve it changed. cost We years and optimizing in that of the remain our throughout

first G&A down, I is comp. year the think of benefit There there. environment. the what overall we just our quarter is, major some spend slower it don’t towards terms spend. as In attributed in get And we I to we’ve rest would as anything I was tend deferred don’t if beta go Obviously, As said, which it to just out relates -- respects, no little But that of there the say in comp, the those correlated. mark-to-market cash G&A, copy to made are relates a some a changes, that, than doesn’t to to we do is on there’s that and which benefit. in

Operator

Stanley. comes Morgan question Michael from the from Cyprys next of Your line

Your line is open.

Michael Cyprys

Great. Thanks.

Laurence Fink

Hey, Mike

Michael Cyprys

morning, past Gary. for are question. you of the markets market over hold Thanks private you for markets space? how seen you and impact opportunity how your in see see Are couple guess flow biggest this concerns years will inflation demand a good private the the strategy do better there lot end are the rate We’ve interest the of BlackRock? think Hi, be And I influencing game now lot growth? interest within may trends that think do -- a for Larry, a And how and is of assets? client certain where low these taking that money parts and private rising, up that backdrop. where rates. into better of private around the will rates about And evolving evolving very the

Robert Kapito

because also been area has public Huge have to loan couple demand, you an team you did are product a -- are diligence access performance credit expensive. loans. two we these And know, the have acquisition various And from in the for mom-and-pop companies the the type and And during markets, and so Those of it’s necessarily very of don’t due we’re that. to much you the do required, markets, ago, But as cycles. an for years that that private Mike, products. a great using good areas. area is that than have private to rising a certainly, and as loans, the both a of credit liquid for demand know. lot hedge. that seeing assets, more and more people of huge they in in give a us, are also an inflation function for growth I And credit been demands. the obvious think because There’s of of And that’s rates in you rates has increased for cushion real

So buy says you inflation, infrastructure, you make see real tips buy value, the textbook you and growth, including you all sell investments. buy those, estate. for when good you of And

positioned. well pretty we’re So

before, going and And are billion SIO what like take equities. to $X.X expecting inflows higher help get into real approach growth also portfolios thread into tools assets multi-asset needle unconstrained to for funds will and inflation. can a equities, you generating bond portfolio are FIGO, the that money. the see offerings as growth that estate against commodities, income I to resilient. infrastructure, a we that know why You people is inflation. That’s build be traditionally, And outrun be could our that us. insulate between dividend real And potentially mentioned And

allocate So And we’ve of had that tactically area, about seen net commodities. inflows. to some billion in we clients $X

Laurence Fink

add just me one Let point. more

of United of or with having renewable between new the States. from space in HXO the platforms companies going robustness sequestration connectivity greater. it’s of place to to high The a and in conversations high Texas be As say money in prepared with multiple technology of my opportunities enormous, of pipeline our in the interconnectivity, and the world, I Across of our we’re would the in and a has investing. and never large Saudi I and sustainable And this the new be in the energy whether going it this lot to out interconnectivity hydrocarbons with innovative a sustainability Mexico, is opportunities investment Midwest the companies to going or conviction, and of the pipeline in stations. charging building largest be said remarks, years infrastructure investing conversations investing in Arabia, board, is been in infrastructure to very unique is the confidence

Operator

Bedell Brian Please question next ahead. comes from Deutsche go Your Bank. from

Brian Bedell

morning Thanks. folks. Great. Good

Laurence Fink

Hi, Brian.

Brian Bedell

put Hi. on that part of to question Good morning. Maybe of question. expand just that that to into tag the and to sort last another

So the I the fee the transition for trend first which guess, calls in really comment alluded -- things to situation of just on if rates energy now, can to that? alternatives aside, conference obviously, of faster growth mandates versus with in accelerating the base out if even And tend several do organic see the continuing fee you’ve geopolitical increasing AUM, you’re basis, higher have that that a ease putting that to can to course, on demand more lumpy all, that permanent of on come able area, do you with, these that generate products influence confidence then the up? you looping do

Laurence Fink

dialogues large they’re with world forward. hydrocarbon leaders conversations company companies. energy in traditional with we’re had numerous companies, the said, We’ve in moving about the I energy how As the every of

and the the create levels is LNG they United And in can And think trillion of society. amount having combination less to supply time, the huge in investment year voted issues, technology. what geopolitical that real out for the conversations, technology is multiple oil, have now to as how framed commitment gas, in amount question, needs accelerate energy. the it’s and large that to I the at for to last of decarbonization same of insurances, States I on spur seeing, more a meet energy believe very combination chains country of of and a energy the you’re prices plants think going the you investing, even Russian infrastructure decarbonization whether huge a supply elevated development $X Europe build and dependency exploration of our I but is of chain going at investing one to are

be wrote just it’s it of Any be not has long-term is or all straight going my work. just to about. be going a So project. as and a to line to fair lenders doesn’t this transition -- It’s energy

more renewables, can move Japan. and brown. the a light to more in the hydrogen a the role sun that and play was with playing -- moving week, we and the solar every hydrogen. of country, spending of so on East, now, investment had that this We -- movement as have as conversations about conversations they excess or lot Two to Middle boom, what trips lot create to is utilize US for Japan of production the gas, lot of they are so moving part. away oil power from to Arabia from now more brown move the about the demand a in that We of last conversations supply I all European out and fiscal shocks decarbonization witnessing on part, an it’s going combination of towards in oil Saudi dark as utilization in

these build-out to not growth demand our and which this of three means for we we’re are of just larger lot going the years, Then All in have a meet and product, I for supply opportunities. new for large I And product. few in is over is demand. product infrastructure be said, more to quotient would last next of do few areas, supply forecasting is of of these the supply excess years just needs. going -- believe bigger more forecast funds issue And stimulate the the to a

Operator

UBS. from question the of Brennan comes line go ahead. Your Please next from Hawken

Brennan Hawken

around seeing maybe emerging they We’ve shifts in A around the support point are past? energy And debate defining dialogue some your of early a that as lot investors I you seen any rigidly may for that Thanks and taking my as behind component you performance and on amongst morning. Good in be strengthen. in ESG. consideration an have of on question There’s question. making been some shift commodity that to demand term any in albeit early shift? near color cyclical hearing strength weakness be Are the we But product, commodities you’re some in see clearly Thank hearing. some producers. of of lagging a would appreciated. signs secular some here. maybe shifting a you. would just around certainly of the comments commodities ESG Any in had what those

Laurence Fink

just today, -- a framing ESG sustainability strategy. two bit of down income to all, have invest had you we Well, flows. impact. energy but on societies, or in evidence you’re tomorrow. the has is and we’re have that we to energy or look still down my billion a was a at for flow in green shocks question, lot that and needs have nature we And time. certainly first that emerging obviously line. markets a quarter, transition energy issues I not it the the this to disposable $XX In great very prior going cost all the said of hydrocarbons. change not a especially up always energy of quite And move but key in to really goes going the supply timely, food straight said rising of is inflation, technologies. of It’s with of we’re their But higher forward. with active really, time long-term if at higher fills to to an take crushes that sustainable we It’s just couple of us sure of not the XX-year lot Does Well, that A green higher that’s transition making severe new in quarters Obviously, -- every letters, is of today. obviously, all premium XX because side? I think the all premium Much It’s that about that an reduced and of is dependent, prices bring prices first going is to from to Not ago. years the you a green poor our the that the as the it harms energy from with that percentage more it country premium. energy. of technologies frame

to So the as alternatives about, space, in was we’re $X what in trying ETFs. do I talked billion

So, any valuation. respond I’m one not to quarter going to

cheap, in has They rising they Of well -- appreciate in and energy have fantastically trading how energy where course, prices, the that. of market They as and undervalued. companies, would were they’ve we many were were they much to be. you book below quarters done cases should come

billion know, in in also, I has you BlackRock don’t As I’ve this. believe $XXX over said, investments divestiture. always in

companies So with how about we forward. the are move working to all

on one product so And are let return clear, change decarbonization most of a for long-term even more These that the of a year. a another, investors be this in are now. views and terms a movement quarter one doesn’t future me not towards of versus world, quarter doing the anything or on

it It’s are seeing harmful harms prices, energy for In many putting because on We rising very prices governments have energy from shocks. their caps governments Europe, and responding. energy really you’re society, populate.

investor let anything So, think is clear, anyone. largest is retirements And don’t long-term. issue, pension difficult and complex for BlackRock I the in me but be really changes the this a it funds than

long-term beneficiaries making aspirations their responsibility to long-term a have achieve run, long goals. and the that sure over in We our

real. there’s so, a this be no not energy And transition to is line. question going But straight it’s

Operator

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

Laurence Fink

and BlackRock. of all and results minute and deep desire opportunities to a first with investors, us, working expect believe BlackRock deliver that needs. working is of shareholders, a strongly clients’ Once We the believe needs, will of that a continue operate our for focused be all commitment in be your in as of in want long-term a I I the clients’ Thank just to in operator. has Everyone, our as we continue a if tremendous If long-term to again, ago, our said remaining thank and ahead returns comprehensive continued for clients, front to people, working communities stay good the our us, durable their of direct to of commitment we I continue from our everybody to see all needs. with of our we over way you. them our front you, quarter have and performance and you, interest voice where investing I those quarter. ahead the to is commitment we we stay to try our

Operator

teleconference. today’s concludes This

may now You disconnect.

BlackRock (BLK) 13 Apr 222022 Q1 Earnings call transcript