Businessweek

BlackRock, Inc. provides diversified investment management to institutional clients, intermediary and individual investors through various investment vehicles. The company’s investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. It offers its investment products in various vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), collective investment trusts and separate accounts. In addition, the company provides market risk management, financial markets advisory and enterprise investment system services to various clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. The company’s product range includes single- and multi-asset class portfolios investing in equities, fixed income and/or money market instruments. It also offers its BlackRock Solutions (BRS) investment systems, risk management, and advisory services to institutional investors. Products Equity and Fixed Income: Equity and fixed income assets under management (AUM) include a range of active and passive strategies. Multi-Asset Class: BlackRock’s multi-asset class team manages various bespoke mandates that utilize its investment expertise in global equities, currencies, bonds, and commodities and its risk management capabilities. Investment solutions might include a combination of alternative investments, as well as tactical asset allocation overlays. Alternative Investments: During 2010, the company launched BlackRock Alternative Investors (BAI) to coordinate its alternative investment efforts, including product management, business development and client service. The company offers high yield debt and core, value-added and equity portfolios. It offers both open-end hedge funds and similar products and closed-end funds that have been created to take advantage of specific opportunities over a defined, often longer-term investment horizon. The company provides a range of active and passive products primarily managed through institutional separate accounts. Cash Management and Securities Lending Cash management products include taxable and tax-exempt money market funds and customized separate accounts. The company’s cash management clientele is largely institutional. The cash management team also invests the cash the company receives as collateral for securities on loan in other portfolios. Investment Styles Long-term product offerings include active and passive (index) strategies. Active Strategies: The company offers two types of active strategies: those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive security selection and portfolio construction. Active Equity: BlackRock manages active equity portfolios for a base of institutional and retail and high net worth investors globally. Active Fixed Income: Fixed income mandates are often tailored to client-specified liabilities, accounting, regulatory or rating agency requirements, or other investment policies. Multi-Asset and Alternatives Majority of AUM in multi-asset class mandates and the majority of AUM in alternative investments are managed in active strategies. Institutional index AUM is managed in common trust funds or separate accounts. iShares/exchange-traded products (ETPs) The company’s product range offers investors the building blocks required to assemble diversified portfolios and implement tactical asset allocation strategies and the liquidity required to make adjustments to their exposures. In addition, the company is the major ETF manager in Mexico, has pioneered the product in Chile and Peru, and introduced products in Brazil, Australia, Hong Kong, and Japan. BlackRock Solutions and Advisory BlackRock offers investment systems, risk management, outsourcing, and advisory services under the BlackRock Solutions brand name. BRS also offers risk