Despite Blackrock’s traditional focus on liquid markets, new market dynamics have driven greater demand for illiquid investments which in turn has become a key focus area for the global asset manager as a source of alpha generation. According to Fink, Blackrock is launching new strategies to meet such demand, including «long-term private capital», to obtain higher and uncorrelated returns.
An expanded ETF offering and ESG integration in its alternatives platform were also named as sources of alpha generation.
Tech: Aladdin
Fink also spotlighted Blackrock’s proprietary tech platform «Aladdin» as a key driver of success. The asset management platform is used to process market data, risk factors and client objectives from a portfolio construction perspective and the firm continues to make revisions and upgrade to enhance its usage.
«In a fee-based advisory world, technology that simplifies portfolio construction and risk management is more important than ever before for the industry and for clients looking to achieve financial well-being,» he added.
«Shared Humanity»
«We have all been impacted in some way by the coronavirus,» Fink ended in his letter, highlighting earlier that 90 percent of Blackrock employees around the world on some days were simultaneously working from home.
«This pandemic – and the collective responsibility required to stem its spread – is an important reminder of our shared humanity. We must be unified in supporting each other, protecting our health and constantly strengthening our ability to prepare and respond to crises like this.»
The letter also saw the exit of Ivan Seidenberg, a director on Blackrock’s board since January 2011, who Fink thanked for «good corporate governance» alongside key contributions on tech-related issues.
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