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

Jan 15, 2015 • 08:00 am ET

Previous

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

Share
Close

Loading Event

Loading Transcript

Q & A
Executive
Larry Fink

fundamental equities, we've always said this is a five year project, 2015 begins the third year.

We are committed to this and if you do believe in the world of great divergence, if you believe in a world that one day you will have - whenever that day will be, higher rates, it generally means - historically you would think this is a better environment for stock picking in fundamental equities. So our model is purposely built and positioned to benefit on this active and passive world, but the one thing that I am going to be pretty loud about, I do believe the most neglected component of the equity investing is basically model or factor based investing where we have a great platform, we've had great returns specially overseas. And I am very bullish on building this out as a component of our active equity area and I am quite frustrated to be frank that we haven't seen the momentum that I thought we would, but this is an area where in my most recent meetings, last week in Asia, every client asked about factor based investing in a divergent world.

So we'll see how that plays out, Bill. But I do believe in this divergent world and the way we are built the model of BlackRock will be a beneficiary of that.

Analyst
Bill Katz

Okay. That's helpful. Thank you.

Operator
Operator

Our last question comes from Brian Bedell with Deutsche Bank.

Analyst
Brian Bedell

Larry, if you can just comment on the inflow situation from the money in motion and PIMCO and other competitors in terms of your fixed-income franchise and do you think a lot of that went into the ETF component and might shift over as those investors reallocate throughout the year? And do you still see that as a tens of billions opportunity next year?

Executive
Larry Fink

We see because of where rates are and the expectation where rates might go, I think people are focused on having a higher allocation to a fixed income ETFs and the R&D generics.

And there is a lot of money in motion because of people's plans for fixed income and rate of use for fixed income this year. And certainly because some money is flowing from various competitors and I think that's money because of the rates are, because of the fees are in general in the asset management business that EPS will see a larger percentage of [Indecipherable].

Executive
Rob Kapito

I just had one thing. There is so much noise about our West Coast friend and competitor. Much of the money in motion is totally in related to what's going on there. I think there is more dialogue going on because of this low rate environment and how should that be played out.

And I think that's the compelling story. How does an income oriented investor whether it's an insurance company, a retiree who is struggling to meet the income needs of the - this is where we are in much greater dialogue. I have had great dialogue