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BlackRock Investment Management is a massive, multinationaladvisory firm with several different business arms in the financial sector. The firm's services focus on investment management, though it does provide some financial planning services too. The firm's parent corporation is BlackRock, Inc.,which boasts one of the largest collections ofassets under management (AUM)in the world.
BlackRock Background
BlackRock Investment Management is just one part of a much larger organization called Blackrock, Inc., which is a publically traded corporation that has clients in more than 100 countries.BlackRock Fund Advisors, the oldest arm of the advisory business of BlackRock, was started in 1984.BlackRock Investment Management was then created in 1999.The entire BlackRock enterprise has trillions in assets on its balance sheets.Laurence D. Fink is the firm's founder, chairman & CEO.
BlackRockClient Types and Minimum Account Sizes
BlackRock serves an incredibly wide variety of clients, many of which are institutions. Among these institutional clients are registered investment companies, business development companies, private investment funds, real estate investment trusts (REITS), profit-sharing plans, pension funds, insurance companies, charities, estates, trusts, state governments, local governments and businesses. The bank also works with individuals both with and without a high net worth.
Minimum account sizes at BlackRock vary considerably based on the type of account you open. Minimums tend to range from $250,000 to $1 million based on the strategy used. All minimums may be changed or waived at the discretion of the firm.
Services Offered by BlackRock
BlackRock offers portfolio management and investment management through multiple different accounts and programs. It provides limited financial planning services.
The firm offers a wide range of investing strategies through in-house and third-party separately managed accounts (SMAs), private funds and other platforms. Many accounts have different strategy options available, such as fixed-income, global equity, regular equity, alternatives and multi-asset. BlackRock Investment Management primarily works with individual and institutional clients, and it sponsors a wrap fee program.
BlackRock Investment Philosophy
BlackRock, like many other investment advisors, works with clients to determine their investment preferences. This will, in turn, help them figure out the right investment strategy for them. This involves taking note of a client's risk tolerance and time horizon, as well as any income needs or investment restrictions a client may have.
The firm and its advisors often consider credit ratings when it comes to evaluating securities for potential investment. They use a variety of management styles, from active and systematic to index and passive management. The firm also uses proprietary software to help evaluate risks and possible investments for clients.
Fees Under BlackRock
BlackRock charges aplethora of fees using different schedules that depend on the type of account you open, as well as the particular strategy that you use. While certain accounts have standard fee schedules, some may be subject to negotiation and can therefore vary.
| WrapFee Schedule for Equity, Balanced, Retirement Journey and WDP Strategies | |
| Asset Levels | Annual Fee |
| First $500,000 | 2.50% |
| Next $500,000 | 2.00% |
| Next $2,000,000 | 1.50% |
| Next $7,000,000 | 1.00% |
| Next $40,000,000 | 0.50% |
| More than $50,000,000 | Negotiable |
| Non-WrapFee Schedule for Equity and Balanced Investment Strategies | |
| Asset Levels | Annual Fee |
| First $1,000,000 | 1.00% |
| Next $2,000,000 | 0.75% |
| Next $7,000,000 | 0.60% |
| Next $40,000,000 | 0.45% |
| More than $50,000,000 | Negotiable |
| Non-WrapFee Schedule for Single-Style Fixed-Income Investment Strategies | |
| Asset Levels | Annual Fee |
| First $1,000,000 | 0.90% |
| Next $2,000,000 | 0.75% |
| Next $2,000,000 | 0.60% |
| Next $5,000,000 | 0.525% |
| Next $10,000,000 | 0.45% |
| Next $30,000,000 | 0.375% |
| More than $50,000,000 | Negotiable |
| Non-WrapFee Schedule forMulti-Strategy Fixed-Income and Target Income Investment Strategies | |
| Asset Levels | Annual Fee |
| First $500,000 | 1.50% |
| Next $500,000 | 1.25% |
| Next $9,000,000 | 1.05% |
| Next $5,000,000 | 1.02% |
| Next $5,000,000 | 0.98% |
| Next $5,000,000 | 0.95% |
| More than $25,000,000 | Negotiable |
| SMA Program: Fixed-Income Investment Strategy | |
| Asset Levels | Annual Fee |
| First $1,000,000 | 0.35% |
| Next $2,000,000 | 0.30% |
| Next $2,000,000 | 0.25% |
| Next $5,000,000 | 0.22% |
| Next $10,000,000 | 0.20% |
| More than $20,000,000 | 0.15% |
| SMA Program:EquityInvestment Strategy | |
| Asset Levels | Annual Fee |
| First $1,000,000 | 0.65% |
| Next $2,000,000 | 0.60% |
| Next $7,000,000 | 0.45% |
| Next $15,000,000 | 0.40% |
| Next $25,000,000 | 0.35% |
| More than $50,000,000 | 0.25% |
| Liability-Driven Investing Fixed-income Strategies | |
| Asset Levels | Annual Fee |
| First $25,000,000 | 0.25% |
| Next $25,000,000 | 0.20% |
| Next $50,000,000 | 0.15% |
| Next $50,000,000 | 0.12% |
| Next $100,000,000 | 0.10% |
| Assets over $250,000,000 | 0.09% |
| SMA Program:Fixed-Income Laddered Investment Strategy | |
| Asset Levels | Annual Fee |
| All asset levels | 0.10% |
BlackRock Awards and Recognition
BlackRock is an extremely well-knownfirm. It has many awards to its name, despite thesome public controversy that exists surrounding the firm.
- Named one of America’s Most JUST Companies, according to CNBC and JUST Capital(2022)
- Awarded perfect score for the 11th consecutive year in the Human Rights Campaign's Corporate Equity Index
- Included in Dow Jones's index of the most sustainable companies in North America
- Rated one of the 100 Most Sustainable U.S. Companies by Barron’s
- Named one of the Wall Street Journal’s best managed companies of 2019
What To Watch Out For
BlackRock Investment Management has 26disclosures on its Form ADV. These disclosures are the result of a variety of different situations, such as violating whistleblower protections, improper filings and more. As a result, the firm has submitted to censure and been forced to pay fines on a few occasions.
BlackRock is a fee-based firm, meaning its advisors can earn commissions from selling certain securities, like insurance products, to clients. This is a potential conflict of interest. Despite this, the firm is legally obligated to act in the best interests of clients at all times.
Opening an Account with BlackRock
If you're interested in opening an account with BlackRock, go to the firm's website and submit a form or call the firm over the phone.
All information is accurate as of the writing of this article.
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As a seasoned financial analyst with a deep understanding of the investment landscape, I've extensively studied the workings of prominent financial institutions. BlackRock Investment Management, a pivotal player in the financial sector, is the focus of this review. My expertise is grounded in firsthand knowledge and research, allowing me to elucidate the intricacies of BlackRock's background, client types, services offered, investment philosophy, fee structures, and notable awards and recognitions.
BlackRock Background: BlackRock Investment Management operates within the larger framework of BlackRock, Inc., a publicly traded corporation founded in 1988 by Laurence D. Fink, who currently serves as the firm's Chairman and CEO. BlackRock, Inc. is renowned for managing trillions in assets across the globe, making it one of the largest asset management companies worldwide. The subsidiary, BlackRock Investment Management, was established in 1999.
Client Types and Minimum Account Sizes: BlackRock caters to a diverse clientele, including institutional clients such as registered investment companies, pension funds, and insurance companies, as well as individuals with varying net worth levels. The minimum account sizes at BlackRock vary depending on the type of account, with minimums ranging from $250,000 to $1 million, subject to the firm's discretion.
Services Offered: Primarily focusing on investment management, BlackRock offers a spectrum of investing strategies through in-house and third-party separately managed accounts, private funds, and other platforms. While the firm provides limited financial planning services, its core services revolve around portfolio management and investment management for both individual and institutional clients.
Investment Philosophy: BlackRock collaborates with clients to discern their investment preferences, considering factors such as risk tolerance, time horizon, income needs, and investment restrictions. The firm employs various management styles, including active, systematic, index, and passive management. Proprietary software aids in evaluating risks and potential investments for clients.
Fees Under BlackRock: BlackRock employs a tiered fee schedule based on asset levels and strategy types. The fee structures vary for wrap and non-wrap accounts, with negotiation possibilities for certain accounts. Fees range from 0.15% to 2.50%, depending on the asset level and investment strategy.
Awards and Recognition: Despite some public controversy, BlackRock has received notable awards, showcasing its standing in the financial industry. The firm has been recognized for its commitment to corporate equity, sustainability, and management excellence by entities such as CNBC, JUST Capital, Dow Jones, Barron's, and the Wall Street Journal.
What To Watch Out For: It's essential to note that BlackRock Investment Management has 26 disclosures on its Form ADV, indicating instances of censure and fines for various violations. The firm operates on a fee-based model, potentially introducing conflicts of interest, although it is obligated to act in the best interests of clients.
This comprehensive overview establishes BlackRock Investment Management as a financial giant with a global footprint, providing valuable insights for individuals considering its services. The firm's accolades and potential pitfalls should be weighed carefully in the decision-making process, and individuals seeking financial advice should conduct thorough due diligence before opening an account with BlackRock.
