Nov. 19, 2014, 9:53 AM
Nov. 11, 2014, 3:32 PM
- Effective at the start of next year, BlackRock (BLK) is splitting its private client-focused sales force into two groups, reports Reuters: Wirehouses and Independent Broker Dealers, and has hired Lee Beck, a former managing director with JPMorgan funds to lead the wirehouses group.
- The move looks to be about extending the company's inflow momentum - it was in 2011 when Frank Porcelli - the head of BLK's U.S. wealth advisory business - established a goal of $300B in actively-managed fund business by the end of 2014. As of September 30, the funds had $525.5B.
- The change also comes as fund companies look to capture a chunk of the money exiting Pimco in wake of Bill Gross' departure.
- "We are preparing to capture more fully opportunities in the independents and wirehouses," says Porcelli, in a memo outlining the changes.
Nov. 6, 2014, 1:28 PM
- With nearly all evidence pointing to no systemic risk from asset managers, the Financial Stability Oversight Council will instead solicit views from the public and industry as to what activities from the likes of companies like BlackRock (NYSE:BLK) and Fidelity could threaten the financial system.
- It was about a year ago - under industry, legislative, and logical pressure - the FSOC backed away from maybe labeling the two SIFIs, and the current move appears to be a way for the council to look like it's doing something without really doing anything.
Nov. 3, 2014, 6:16 PM
- Most had expected the crossing of the $2T barrier to take somewhat longer, but it's looking like ETFs will hit the mark early next year.
- Long preferred vehicles for institutional types and investment advisors, ETFs in the years since the financial crisis have attracted individual investors who have begun to notice so many actively-managed mutual funds underperforming benchmarks (mutual funds have $11.6T in assets).
- Since 2008, stock ETFs have taken in a net $574B, bringing their total AUM to $1.47T. Stock mutual funds have brought in a net $122B, bringing their total AUM to $7.07T.
- The list of those firms taking in the bulk of ETF funds is highly top-heavy, led by BlackRock's (NYSE:BLK) iShares unit, Vanguard, and State Street (NYSE:STT). A smaller, but pure-play ETF provider, WisdomTree (NASDAQ:WETF) has roughly tripled since its IPO less than four years ago.
Oct. 30, 2014, 1:51 PM
- U.S-listed fixed-income ETFs are set to record their biggest monthly inflow on record, with BlackRock data showing inflows through Wednesday of $17.4B, which would top February's $17B.
- Those in the loop say a large chunk of that is money exiting Pimco's Total Return fund in the wake of Bill Gross' departure. They note a surge in trading volume in short-term government bond ETFs and board-market trackers which more or less act as cash substitutes. Those funds soaking up the bulk of the money this month: SHY, AGG, and BND.
- BlackRock's (NYSE:BLK) head of fixed-income strategy at its iShares unit Matt Tucker says his people have been talking to clients about using AGG as a bridge position while they figure out which manager they now want to stick with.
- ETFs: AGG, BOND, BND, SCHZ, LAG, SAGG, GBF, FBND, IUSB, VBND
Oct. 29, 2014, 9:53 AM
- Not saying whether the move has anything to do with the exit of Bill Gross, Prudential is dropping Pimco (OTCQX:AZSEY -0.1%) as the subadviser of the $6.16B AST Pimco Total Return Bond Portfolio in favor of BlackRock (BLK +0.2%). Pimco will also be dropped as manager of the U.S. fixed-income portion of the $8.75B AST Advanced Strategies Portfolio.
- The changes will take place shortly after the new year.
- BlackRock has been losing market share to Pimco for years, but the trend has begun to shift - first helped by better performance for BlackRock's fixed-income assets, and now by the management upheaval at Pimco.
Oct. 27, 2014, 11:32 AM
- By cutting the fees on the institutional shares of its Total Return Fund to 45 basis points from 52 - now inline with Pimco's (OTCQX:AZSEY -0.3%) Total Return Fund - BlackRock (BLK -0.3%) is aiming to capture some of the money exiting Pimco in the wake of Bill Gross' departure.
- BlackRock also cut fees on its Core Bond Fund and its Low Duration Fund.
- Alongside the cheaper fees on BlackRock's Total Return, the fund has outperformed most peers for the past one, three, and five years, according to Morningstar - a far better track record over those time frames than the Pimco version.
- "This is a shot across the bow at Pimco," says Lipper's Jeff Tjornehoj.
- Pimco Total Return Fund share classes: PTTAX, PTTPX, PTTRX, PTTBX, PTTCX, PTTDX, PTUPX,PTUZX, PTUCX, PTUIX
Oct. 22, 2014, 1:01 PM
- In a decision issued today, the SEC denied applications by Precidian Investments and BlackRock (BLK -0.3%) seeking to launch actively-managed ETFs which would not have been required to disclose portfolio holdings on a daily basis.
- Active ETFs are available in the U.S., but SEC rules requiring daily disclosure of holdings are among the factors discouraging providers - worried about their ideas being front-run - from offering the products. The proposal blocked today would have allowed for the funds to be more like mutual funds - disclosing holdings quarterly, and often with a 60-day lag.
- Behind the SEC denial, is concern the mechanism proposed to keep the market price of these funds in line with NAV is insufficient.
Oct. 15, 2014, 7:37 AM
- Q3 adjusted net income of $890M or $5.21 per share vs. $672M and $3.88 one year ago. Adjusted operating income of $1.214B up 24% from a year ago, with adjusted operating margin of 44.2% up a whopping 300 basis points.
- $250M of shares repurchased during quarter.
- Retail net flows of $4.86B brings Sept. 30 AUM to $525.479B. AUM as a percent of total is 12%. Base fees of $846M is 35% of total
- iShares net flows of $18.209B brings Sept. 30 AUM to $974.170B. AUM as a percent of total is 23%. Base fees of $850M is 35% of total.
- Boosted fixed-income strategy paying off, with 87% of taxable fixed-income assets outperforming benchmarks over 3-year period.
- Conference call at 8:30 ET
- Previously: BlackRock beats by $0.55, beats on revenue
- BLK +1.4% premarket
Oct. 15, 2014, 6:23 AM
Oct. 14, 2014, 5:30 PM
Oct. 14, 2014, 9:52 AM
- Excluding acquisitions, BlackRock (BLK +0.5%) has been expanding AUM by just 4% annually, says co-President Robert Kapito, but he's betting "trillions of dollars" currently on the sidelines is itching to be allocated to the markets and that will fuel the reaching of the 5% target.
- “I have to rely upon what our clients need, what the markets do; I can’t dictate either of those things,” he says. “When that money does come back into the marketplace, I think we’ll capture a significant market share. That’s what our strategy is.”
Oct. 10, 2014, 2:46 PM
- More than $9B flowed into U.S.-listed fixed-income ETFs during the two weeks from Sept. 26-Oct. 8, with BlackRock's (BLK -1.2%) iShares capturing $6.2B of that money, according to the firm.
- The iShares Core U.S. Aggregate Bond Fund (AGG) had inflows of $1.59B (Vanguard's BND saw inflows of $1.68B), the iShares 1-3 Year Treasury Bond Fund (SHY) drew in $1.68B, and the iShares 7-10 Year Treasury Bond ETF (IEF +0.2%) had $640M of inflows.
- This isn't all Pimco related as unsteady equity markets have sent a wave of money into fixed income over the past few days.
Oct. 6, 2014, 12:29 PM
- Thanks to its iShares franchise, BlackRock (BLK -0.4%) has been a massive beneficiary of the trend of shunning actively managed mutual funds for low-cost ETFs. Still, active funds remain an enticing source of business for BlackRock, and it's busy recruiting fund managers, rolling out new offerings, and changing the way it sells the products.
- BlackRock's more than 100 open-end active funds have just $220B of the $15T U.S. fund market, meaning there's plenty of room for growth compared to its core ETF business which already holds a 40% market share.
- Some of the new fund hires have struggled, others have done well, but in the area of capturing more of the "retail" market, BlackRock remains encouraged.
Oct. 3, 2014, 3:00 PM
- Bill Gross' move to Janus (JNS -2.1%) was enough to get Citi's William Katz to pull his Sell/Underweight rating, but he's not upgrading any higher than Neutral for now. Katz says Gross has requested just one trader to assist him, and notes no one from Pimco has joined him, suggesting one of Gross' edges - his ability to get more and better information than anyone else in fixed-income - is no longer there.
- Katz says the market has priced into Janus a $25B-$50B migration of assets, thus setting up for disappointment should AUM growth not reach those lofty levels.
- Bigger winners might be shops like DoubleLine, MetWest, and BlackRock (BLK +1%) - whose Aggregate Bond ETF (AGG -0.1%) broke its inflow record in the days following Gross' departure.
Sep. 30, 2014, 10:35 AM
- The Total Return ETF (NYSEARCA:BOND) - far smaller, but following a similar strategy to the Total Return Fund - saw $446.5M pulled on Friday following the announcement of Bill Gross' departure from Pimco. The redemption accounted for 12.5% of the fund's shares. Withdrawals slowed to $98M yesterday.
- It seems a good portion of those funds were placed for at least safekeeping BlackRock's (NYSE:BLK) iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG), which saw more than $400M of inflows.
- What's Pimco selling? Traders say Pimco was seeking bids on more than $170M of agency-backed CMBS.
BLK vs. ETF Alternatives
Other News & PR