LIVE: BlackRock 4Q Earnings Call
28 January 2010 - 2:35AM
Dow Jones News
BlackRock Inc.'s (BLK) profit more than tripled in the fourth
quarter, its first earnings report that includes the integration of
Barclays Global Investors, which it purchased at the end of last
year.
The money management firm's $13.5 billion purchase of BGI helped
grow assets under management to $3.3 trillion, more than double the
$1.3 trillion of the year-earlier period.
BlackRock reported $278 million in base fees associated with the
BGI purchase. Fees are a key driver of public asset managers'
earnings.
10:04 a.m.: Answering a question about President Barack Obama's
bearish take on proprietary trading desks, Fink says it will take
some time for Congress to address what the president spoke about.
He then jokes, "I can't be committed on anything."
9:49 a.m.: Fink says investors continue to move their money from
cash to other risk-based assets and he thinks that will continue.
Also, clients are moving money from active strategies to index
strategies both in the U.S. and internationally, as "investors are
looking for some form of beta."
9:44 a.m.: Fink admits the overlap of BGI and BlackRock products
"is an issue" in terms of how to combine them in the best way. He
adds that he thinks the company has done a "great job to date," but
the company will know more in upcoming quarters.
9:38 a.m.: "We are not alone" regarding real estate problems,
Fink says, although the firm has "been highlighted the past few
weeks." (BlackRock and Tishman Speyer earlier this week said they
wouldn't make a debt payment to senior lenders of two New York
apartment complexes, triggering default.)
9:32 a.m.: About 40% ($1.3 trillion) of BlackRock's business is
now international. "This is where we are going to invest in the
future," Fink says, "especially in Latin America and in Asia."
9:23 a.m.: Full integration of all things BGI won't be completed
for two years, Fink says. It's something he's stated before. By the
end of the first quarter, all legacy BGI products will be on the
company's risk platform.
9:21 a.m.: The "merger closing went very well," Fink says,
despite some "mistakes" and miscommunication along the way.
9:18 a.m.: Chairman and Chief Executive Laurence D. Fink says
happy New Year, and notes this is the first public call since the
BGI transaction was closed Dec. 1.
9:10 a.m.: While much of the company's long-dated asset growth
can be attributed to the BGI transaction, Chief Financial Officer
Ann Marie Petach said $221 billion of the $2.8 trillion in
long-dated assets comes from assets BlackRock itself gained in
2009.
-By Joseph Checkler, Dow Jones Newswires; 212-416-2152;
joseph.checkler@dowjones.com
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