General presentation of BlackRock :
Let's now take a look at BlackRock and its various activities. Indeed, you must know perfectly the sources of income of this group to understand its future stakes, threats and opportunities.
The BlackRock Group is an American company in the financial sector. More specifically, BlackRock is currently one of the largest asset managers in the world. The group has $7,429.6 billion of assets under management which are broken down by asset type as follows :
- Equities represent 51.4% of BlackRock's assets.
- Fixed income securities represent 31.2% of assets.
- Multi-asset investments represent 7.6% of assets.
- Hedge funds represent 2.4% of assets.
- Finally, 7.4% of these assets are other assets.
It is also interesting to know the geographical distribution of the BlackRock group's activities. The group currently generates 66.7% of its turnover in the Americas, 28.6% in Europe and 4.7% in Asia-Pacific.
To know the competition of the BlackRock share :
We now propose you to discover BlackRock's main competitors on the international market with a quick presentation of the largest asset management groups today:
- The Vanguard Group: This American investment fund company holds shares in numerous companies including Michelin, Pernod Ricard, Monsanto, Exxon Mobil, Alphabet, Time Warner and Dow Chemical. It is the largest shareholder of Goldman Sachs, Apple and Amazon.
- State Street Global Advisors: This is the investment management division of State Street Corporation and the third largest asset manager in the world. It has over $2.8 trillion in assets under management and offers investment strategies for non-profit foundations, corporations, societies, associations, governments, educational institutions and religious organizations. In addition to these services, SSGA offers investment vehicles for the retail market in the United States, Europe, Asia and Australia.
- JP Morgan Chase & Co: This NYSE-listed company is a financial holding company created following the merger between Chase Manhattan Bank and JP Morgan & Co in 2001. It is currently the largest bank in the United States and one of the largest in the world in this sector. It has assets of $2,513 billion and JP Morgan operates in more than 60 countries.
- The Capital Group Companies: This is one of the largest pension fund management companies in the world, along with The Vanguard Group.
- Golman Sachs: This investment bank, which we no longer present, was created in 1869 and is now established in many countries with offices in New York, Tokyo and Paris.
- Amundi: Finally, BlackRock's last major competitor is the French company Amundi, which is also an asset management company and currently manages €1,425 billion in assets under management. It is of course the largest asset management company in Europe and one of the leaders in this sector worldwide.
The strategic alliances set up by the BlackRock group :
After having discovered BlackRock's main adversaries, we propose you to discover its allies with some examples of recent partnerships that this company has set up. Indeed, the creation of partnerships often has the effect of reinforcing investors' confidence and buying positions, which most often leads to an increase in the share price concerned.
- Nalo: At the beginning of this year 2020, BlackRock joined forces with Nalo, a French fintech company. The latter has indeed launched a low volatility portfolio in partnership with this asset management giant. This portfolio will be accessible in Nalo's life insurance contract, Nalo Patrimoine, which is insured by Generali and has a target return of 3%. It should be noted that Nalo does not market standard management profiles but portfolios associated with its clients' life projects based on the principle of management by objectives. However, investors' first contract is often a prudent and low-risk allocation, which is built using a precautionary savings pocket that can be mobilised quickly and is mainly made up of euro-denominated funds. It is precisely this allocation that will gradually be replaced by BlackRock's High Income funds.
- UBS: Also in 2020, BlackRock has teamed up with Swiss asset manager UBS to launch a new ETF fund. This ETF invests in a multilateral development bank and will be offered as an alternative to traditional high quality fixed income investments such as government bonds.
The advantages and strengths of the BlackRock share as a stock market asset :
If you want to know if it is interesting to trade BlackRock stock on the buy or sell side, we now propose you to discover the different advantages and disadvantages of this stock.
As regards the benefits of this value, the following points should be noted:
- First of all, BlackRock's positioning in its industry is undoubtedly a major asset as it is currently the largest investment and asset management fund in the world.
- We can also highlight the impressive performance achieved by this company in a rather difficult context and environment.
- BlackRock's business diversification strategy also enables it to stimulate growth while reducing risk.
- Finally, BlackRock's Aladdin investment and risk management platform is also driving its growth.
Disadvantages and weaknesses of the BlackRock share as a stock market asset :
Of course, the BlackRock share has some flaws as well :
- The fact that the group depends solely on a single risk management platform is a handicap compared to certain competitors who manage to use several platforms.
- Regulation of financial investment is also becoming increasingly stringent in many countries and may therefore have an impact on the activities of this group.
- Finally, BlackRock is highly exposed in the event of major stock market and financial market turmoil and in the event of a crash.
You need to compare these advantages and disadvantages in order to understand whether or not this stock is attractive to investors and therefore whether its price is more likely to rise or fall.