Bloomberg News

BlackRock Says ‘Ample Opportunities’ to Grow Higher-Fee Products

September 12, 2011

Sept. 12 (Bloomberg) -- BlackRock Inc.’s Laurence D. Fink, chief executive officer of the world’s biggest asset manager, said the firm has “ample opportunities” to expand products that charge higher fees, such as private equity and active stock-picking.

“We’re improving our mix shift toward higher-fee businesses,” Fink said today at the Barclays Capital 2011 Global Financial Services Conference in New York. Products that garner higher fees represent 65 percent of the firm’s revenue, while only accounting for 35 percent of assets, Fink said today.

BlackRock’s active stock-picking, alternative investments such as private equity and real estate, and its iShares exchange-traded funds account for about $1.3 trillion in assets, Fink said. Those assets have had 7 percent average growth since the first quarter of 2010, Fink said.

BlackRock was co-founded in 1988 by Fink, who has since built the firm through a series of acquisitions including the December 2009 purchase of Barclays Global Investors. The firm manages $3.66 trillion in assets.

--Editors: Christian Baumgaertel, Steven Crabill

To contact the reporter on this story: Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus