BlackRock Inc (NYSE:BLK) Q4 2014 Earnings Conference Call - Preliminary Transcript

Jan 15, 2015 • 08:00 am ET

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BlackRock Inc (NYSE:BLK) Q4 2014 Earnings Conference Call - Preliminary Transcript

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Q & A
Executive
Larry Fink

believe this just creates more money in motion and more opportunity for BlackRock especially with our flows.

Analyst
Dan Fannon

Great. That's helpful. And then Gary, if you could please just characterize the budget and how your outlook for 2015 with regards to kind of core expense growth.

Executive
Gary Shedlin

I would say, let's break it down. I think that in terms of G&A, I think when we look at the fourth quarter on G&A obviously it was slightly elevated by virtue of some closed end fund launch cost, and obviously some FX measurement.

But I think once you kind of exclude those two items, I think the fourth quarter is generally a decent run rate for the year in terms of G&A.

And then more broadly as we think about margins, obviously notwithstanding some of the seasonality that we have in our own margins especially in the first quarter, margins more broadly are dependent on lots of things, especially the beta environment, the future business mix, the various reinvestment opportunities that we see in our business and obviously the competitive compensation environment. So I don't - our margin guidance really hasn't changed, as you know, we don't manage the business to a specific margin target and we remain ever committed to generating operating leverage, we're also reinvesting in the business.

Analyst
Dan Fannon

Great. Thank you.

Operator
Operator

Great. Thank you.

Your next question comes from Craig Siegenthaler with Credit Suisse.

Analyst
Craig Siegenthaler

First, I was wondering if you could provide a quick update on SIFI? Found new commentary from both the SEC and FSOC, especially related to some of the activities that it seems like they are targeting like ETFs, alternatives, derivatives, securities lending with those being pretty relevant for you guys.

Executive
Larry Fink

I don't think they're targeting any one product. I think you're investigating products where there is obviously large growth and where there is areas where you may have mismatches of liquidity and or you may have need for greater disclosure.

So, there is nothing new from our point. We are - if a regulator asks us to provide information we do that worldwide. We are embracing in a very positive way the movement towards the review of activities. We will be the largest beneficiary if the market is perceived to be stronger or transparent, easier to understand by more investors we will be one of the largest beneficiaries of that event and so we are embracing the concept of better financial ecosystem for our clients and if that means greater disclosure, greater transparency, we will embrace that.

But I think it's incorrect to say they are targeting because I don't think they are targeting at all, the conversations we're having - there are open dialogues, they're expressive. We are providing information as asked. Obviously the dialogues are one dimensional asked, why can't we provide information - and that's all we know. We presume these questions are being asked by dozens of dozens of different managers and - but we're up in this process and we will all wait