BlackRock is an American multi-national investment company based in New York City. It was originally founded as a risk management firm but today is the world’s largest asset manager, with US$10 trillion in assets under management as of January 2022. The company specializes in fixed income and is a leader in the financial services industry.
In early 2020, BlackRock’s FMA unit, which is separate from the firm’s investment management operations, played a key role in the US government’s response to the coronavirus pandemic. It also won a job handling the Federal Reserve’s emergency asset-purchasing program – a position no other asset manager could have won.
BlackRock is one of the most influential financial institutions in the world, with $10 trillion in assets under management. That’s more than the GDP of all countries except the United States and China combined. Moreover, it is the largest shareholder in every major global industry, with stakes in technology, oil and gas, retail, big banks, and even weapons manufacturing. Its influence on our daily lives can’t be underestimated.
BlackRock earns most of its revenue through investment advisory and administration fees, which are based on predetermined percentages of the AUM of their clients. These fees cover equity, fixed income, multi-asset alternative, and cash management services. BlackRock generated $411 million in Q4 FY 2021 from these fees, representing approximately 8% of its total revenue.
In addition to supporting police power, BlackRock is also one of the largest shareholders in Axon, a supplier of body cameras, tasers, and surveillance software throughout the United States. It owns 10.4% of the company’s stock, and has invested over $600 million in the company.
BlackRock also controls some of the world’s most polluting oil companies. Its stakes include Marathon Petroleum and ConocoPhillips. It also leads a consortium of investors that invested $15 billion in Saudi Arabia’s state-owned oil company, Aramco. The company has been criticized for its role in the global climate and energy crisis.
In terms of size, BlackRock is the world’s largest asset manager, overseeing more than $10 trillion. This is more than the combined GDP of all other countries besides the United States and China. Founded by Larry Fink in 1988, BlackRock is relatively young by Wall Street institution standards. The firm manages funds for both public pension plans and foundations. It also has a distinct strategy known as smart beta, which is based on rules instead of market capitalization.
Despite Fink’s efforts to brand BlackRock as a climate-friendly company, its investment activities have led to significant damage for Indigenous communities and people of color around the world. In addition to supporting the fossil fuel industry, BlackRock has also invested more than $6 billion in military and civilian gun manufacturers. This is a scandal that has raised concern in the financial community.
