By Kate Duguid
NEW YORK (Reuters) -BlackRock Inc, the world’s largest asset manager, is moving more aggressively into private market investments, the company explained in an investor presentation https: // ir. blackrock.com/news-and-events/events-and -presentations / event-details / 2021 / BlackRock-Inc-2021-Investor-Day / default.aspx Thursday.
Since interest rates were brought down to near zero across the world at the start of the coronavirus pandemic, investors have sought other sources of yield. BlackRock, in its Investor Day presentation Thursday, said alternative investments – including private equity, real estate, hedge funds and venture capital – can offer an edge in the market. Private market investments saw revenue growth of 18% for the company last year, twice the rate for the industry as a whole.
BlackRock, which manages $ 279 billion in alternative assets, said its portfolio advisory business is moving away from the traditional model of a portfolio allocation of 60% to equities, 40% to fixed income in favor of ‘a 50% split in public stocks, 30% in bonds and 20% private markets split.
The company also highlighted the growth opportunities it sees in China. A spokesperson for BlackRock said that had accelerated since the company in May received a license in China for a majority-owned wealth management firm, the country’s fast-growing asset management market.
BlackRock chief executive Larry Fink told investors on Thursday that he has no plans to leave the company anytime soon, but is confident that when he does, he will be “in good hands.” . CNBC https://www.cnbc.com/2020/04/06/biden-donors-float-elizabeth-warren-larry-fink-others-for-key-roles.html among other media reported the year last as major donors to then-candidate Joe Biden’s campaign floated Fink’s name for possible roles in the administration.
Fink founded BlackRock in 1988 with seven partners, according to the company’s website https://www.blackrock.com/corporate/about-us/leadership/larry-fink.
(Report by Kate Duguid, edited by Chizu Nomiyama and David Gregorio)