Q2 2024 BlackRock Inc Earnings Call

Please stand by, we're about to begin.

Operator: and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated Second Quarter 2024 Earnings Teleconference. Our hosts for today's call will be Chairman and Chief Executive Officer Laurence D. Fink, Chief Financial Officer Martin S. Small, President Robert S. Kapito, and General Counsel Christopher J. Meade. All lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer period. If you'd like to ask a question during this time, simply press star and then the number 1 on your telephone keypad. If you'd like to withdraw your question, please press star 2.

Jennifer: Good morning, my name is Jennifer and I will be your conference facilitator today. At this time, I'd like to welcome everyone to the BlackRock Incorporated second quarter 2024 earnings teleconference.

Jennifer: Our hosts for today's call will be Chairman and Chief Executive Officer Laurence D. Fink, Chief Financial Officer Martin S. Small, President Robert S. Kapito, and General Counsel Christopher J. Meade. All lines have been placed on mute to prevent any background noise.

Speaker Change: After the speaker's remarks, there will be a question and answer period. If you'd like to ask a question during this time, simply press star, then the number 1 on your telephone keypad. If you'd like to withdraw your question, please press star 2. Thank you. Mr. Meade, you may begin your conference.

Operator: Thank you. Mr. Meade, you may begin your conference. Thank you, operator. Good morning, everyone.

Christopher Joseph Meade: I'm Chris Meade, the General Counsel of BlackRock. Before we begin, I'd like to remind you that during the course of this call, we may make a number of forward-looking statements. We call your attention to the fact that BlackRock's actual results may, of course, differ from these statements. As you know, BlackRock has filed reports with the SEC that list some of the factors that may cause the results of BlackRock to differ materially from what we see today.

Speaker Change: Thank you, Operator. Good morning, everyone. I'm Chris Meade, the Dental Counsel of BlackRock.

Speaker Change: Before we begin, I'd like to remind you that during the course of this call, we may make a number of forward-looking statements.

Speaker Change: We call your attention to the fact that BlackRock's actual results may, of course, differ from these statements.

Speaker Change: As you know, BlackRock has filed reports with the FEC which list some of the factors that may cause the results of BlackRock to differ materially from what we see today.

Christopher Joseph Meade: BlackRock assumes no duty and does not undertake to update any forward-looking statements. So with that, I'll turn it over to Larry. Thank you, Chris. I'd like to begin by addressing what occurred over the weekend. The assassination attempt on former President Trump is abhorrent, and I was very relieved he wasn't seriously injured.

Speaker Change: BlackRock assumes no duty and does not undertake to update any forward-looking statements.

Speaker Change: So with that, I'll turn it over to Larry.

Larry: Thank you, Chris.

Larry: I'd like to begin by addressing what occurred over the weekend.

Larry: The assassination attempt on former President Trump is abhorrent.

Laurence Douglas Fink: And I'm thinking about the victims of the shooting, especially the innocent person who was killed. As I wrote to my BlackRock colleagues in the hours immediately following the horrific event on Saturday evening, we must condemn political violence of any kind, period.

Larry: I was very relieved he wasn't seriously injured.

Larry: And I'm thinking about the victims of this shooting.

Larry: especially the innocent person who was killed.

Speaker Change: As I wrote to my BlackRock colleagues in the hours immediately following the horrific event Saturday evening,

Speaker Change: We must condemn political violence of any kind, period.

Laurence Douglas Fink: And as Americans, we must stand united to do our part, to promote civility, and unity for a country, and provide hope for all Americans. I'll turn it over to Martin. Thanks, Larry, and good morning, everyone. Before I turn it back to Larry, I'll review our financial performance and business results for the second quarter of 2024. Our earnings release discloses both GAAP and as-adjusted financial results, but I'll be focusing primarily on our as-adjusted results.

Speaker Change: And as Americans, we must stand united to do our part.

Speaker Change: To promote civility,

Speaker Change: and Unity for a Country.

Speaker Change: and provide hope for all Americans.

Laurence Douglas Fink: The first half and second quarter of 2024 saw some of BlackRock's strongest performance and highest growth rates of the post-pandemic period. We're growing faster than last year. We delivered double-digit operating income growth and expanded our margin by 160 basis points year-over-year. Clients entrusted us with over $80 billion of net new assets. It was $150 billion of flows, excluding episodic client activity.

Speaker Change: I'll turn it over to Martin now.

Martin: Thanks, Larry, and good morning, everyone.

Martin: Before I turn it back to Larry, I'll review our financial performance and business results for the second quarter of 2024.

Martin: Our earnings release discloses both GAAP and as-adjusted financial results. I'll be focusing primarily on our as-adjusted results.

Martin: The first half and second quarter of 2024 saw some of BlackRock's strongest performance and highest growth rates of the post-pandemic period. We're growing faster than last year. We delivered double-digit operating income growth and expanded our margin by 160 basis points year-over-year.

Martin: Clients entrusted us with over 80 billion of net new assets. It was 150 billion of flows excluding episodic client activity.

Martin Small: We generated 3% annualized organic base feed growth, our highest second quarter in three years. We ended the second quarter with a record AUM of over $10.6 trillion. Our business tends to be seasonally stronger in the back half of the year, and we have line of sight into a broad global opportunity set of new asset management and technology mandates that should fuel premium organic growth. We're executing on the strongest opportunities we've ever seen in our core business and building for the future. We're moving swiftly and aggressively to position our firm to achieve or exceed our 5% organic base feed growth target over the long term.

Martin: We generated 3% annualized organic base feed growth, our highest second quarter in three years.

Martin: We ended the second quarter with record AUM of over $10.6 trillion. Our business tends to be seasonally stronger in the back half of the year, and we have line of sight into a broad global opportunity set of new asset management and technology mandates that should fuel premium organic growth.

Martin: We're executing on the strongest opportunities we've ever seen in our core business and building for the future. We're moving swiftly and aggressively to position our firm to achieve or exceed our 5% organic base feed growth target over the long term.

Martin Small: At the same time, we're putting the future building blocks of accelerated, all-weather organic growth, that is, private markets and technology, into place with our planned acquisitions of global infrastructure partners and pre-quotas. We're building our mix towards higher secular growth areas like private markets, technology, whole portfolio mandates, and model portfolios powered by both ETFs and active management. We believe this will deliver greater diversification and resilience and revenue and earnings through the market cycle.

Martin: At the same time, we're putting the future building blocks of accelerated all-weather organic growth, that's private markets and technology, we're putting them into place with our planned acquisitions of global infrastructure partners and pre-quit.

Martin: We're building our mix towards higher secular growth areas like private markets, technology, whole portfolio mandates, and model portfolios powered by both ETFs and active.

Martin: We believe this will deliver greater diversification and resilience in revenue and earnings through market cycles.

Martin Small: Through strong organic growth and scaling of our private markets and technology platforms, we believe we can drive compelling earnings growth and multiple expansion for our shareholders. We continue to build with our clients, and with more than $10.6 trillion in assets under management, and $10.6 trillion units of trust, BlackRock's platform is becoming the premier long-term capital partner across public and private markets. We're connecting investors, corporates, and the public sector to the power of the capital market.

Martin: Through strong organic growth and scaling of our private markets and technology platforms, we believe we can drive compelling earnings growth and multiple expansion for our shareholders.

Martin: We continue to build with our clients.

Martin: and more than $10.6 trillion in assets under management, $10.6 trillion units of trust. BlackRock's platform is becoming the premier long-term capital partner across public and private markets. We're connecting investors, corporates, and the public sector to the power of the capital markets.

Martin Small: Through our iShares and indexing platforms, we've developed long-standing relationships. We have highly aligned shareholder relationships with global corporations. Through our advisory and technology capabilities, we're a trusted partner to governments and the public sector. These relationships are creating a wealth of opportunities for unique transactions, especially in infrastructure and private markets, and they benefit our clients' portfolios. They fuel organic growth.

Martin: Through our iShares and indexing platforms, we've developed long-standing relationships

Martin: Highly aligned shareholder relationships with global corporates. Through our advisory and technology capabilities, we're a trusted partner to governments and the public sector.

Martin: These relationships are creating a wealth of opportunities for unique transactions, especially in infrastructure and private markets. And they benefit our clients' portfolios. They fuel organic growth.

Martin Small: In the second quarter, we saw equity markets power to another record high, and more clients starting to re-risk. Investors waiting in cash have missed out on significant equity market returns over the last year, and more investors are stepping back into risk athletics. BlackRock's a share winner when there are assets in motion, periods when investors are eager to deploy capital, or historically when BlackRock's platform sees its most outsized growth. Clients are coming to BlackRock as a thought leader, as a partner, as they rethink their portfolios and investment technology.

Martin: In the second quarter, we saw equity markets power to another record high, and more clients starting to re-risk. Investors waiting in cash have missed out on significant equity market returns over the last year, and more investors are stepping back into risk assets.

Martin: BlackRock's a share winner when there's assets in motion, periods when investors are eager to deploy capital, or historically when BlackRock's platform sees its most outsized growth. Clients are coming to BlackRock as a thought leader, as a partner, as they rethink their portfolios and investment technology.

Martin Small: We continue to execute on a strong set of large opportunities that are contracted in near funding or in late-stage contracting. And over the past few months, the slate of client mandates we've been chosen for is the most broad and diversified it's been in years, across active equity and fixed income, customized liquidity accounts, private markets, and multi-product Aladdin assignments. BlackRock generated total net inflows of $82 billion in the second quarter, representing 3% annualized organic asset and 3% annualized organic-based feed growth.

Martin: We continue to execute on a strong set of large opportunities that are contracted near funding or in late-stage contracting.

Martin: And over the past few months, the slate of client mandates we've been chosen for is the most broad and diversified it's been in years, across active equity and fixed income, customized liquidity accounts, private markets, and multi-product Aladdin assignments.

Martin: BlackRock generated total net inflows of $82 billion in the second quarter, representing 3% annualized organic asset and 3% annualized organic base fee growth.

Martin Small: Flows were impacted by an approximately $20 billion active fixed income redemption from a large insurance client linked to M&A activities. Excluding this single client-specific item and low-fee institutional index equity flows, we saw nearly $150 billion of total net inflows in the quarter.

Martin: Flows were impacted by an approximately 20 billion active fixed income redemption from a large insurance client linked to M&A activity.

Martin: Excluding this single client specific item and low fee institutional index equity flows, we saw nearly 150 billion of total net inflows in the quarter.

Martin Small: Second quarter revenue of $4.8 billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performance fees and technology services revenue also contributed to revenue growth. Operating income of $1.9 billion and earnings per share of $10.36 were each up 12% year-over-year. Non-operating results for the quarter included $113 million of net investment gains, driven primarily by non-cash mark-to-market gains on our unhedged seed capital investments and minority investors.

Martin: Second quarter revenue of $4.8 billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performance fees and technology services revenue also contributed to revenue growth.

Unknown Executive: Operating income of $1.9 billion and earnings per share of $10.36 were each up 12% year-over-year. Non-operating results for the quarter included $113 million of net investment gains driven primarily by non-cash marked market gains on our unhead seed capital investments and minority investments. Our as-adjusted tax rate for the second quarter was approximately 24%. We continue to estimate that 25% is a reasonable projected tax run rate for the remainder of 2024.

Martin: Operating income of $1.9 billion and earnings per share of $10.36 were each up 12% year-over-year.

Martin: Non-operating results for the quarter included $113 million of net investment gains, driven primarily by non-cash mark-to-market gains on our unhedged seed capital investments and minority investments.

Martin Small: Our as-adjusted tax rate for the second quarter was approximately 24%. We continue to estimate that 25% is a reasonable projected tax run rate for the remainder of 2024. However, the actual effective tax rate may differ because of non-recurring or discrete items or potential changes in tax legislation.

Martin: Our as-adjusted tax rate for the second quarter was approximately 24 percent. We continue to estimate that 25 percent is a reasonable projected tax run rate for the remainder of 2024. The actual effective tax rate may differ because of non-recurring or discrete items or potential changes in tax legislation.

Unknown Executive: The actual effective tax rate may differ because of non-recurring or discrete items, or potential changes in tax legislation. Second quarter-base fee in securities lending revenue of $3.9 billion was up 7% year-over-year and reflected positive organic base fee growth and the impact of market appreciation on our average AUM, partially offset by lower securities lending revenue. Sequentially, base fee and securities lending revenue was up 3%, reflecting higher average AUM and 3% annualized organic base fee growth in the current quarter. Our annualized effective fee rate was flat compared to the first quarter. Ending spot AUM was 2% higher than quarterly average AUM, as market sharply recovered after April declines.

Martin Small: Second quarter base fee and securities lending revenue of $3.9 billion was up 7% year-over-year and reflected positive organic base fee growth and the impact of market appreciation on our average AUM, partially offset by lower securities lending revenue. Sequentially, base fee and securities lending revenue was up 3%, reflecting higher average AUM and 3% annualized organic base fee growth in the current quarter. Our annualized effective fee rate was flat compared to the first quarter.

Martin: Second quarter base fee and securities lending revenue of $3.9 billion was up 7% year-over-year and reflected positive organic base fee growth and the impact of market appreciation on our average AUM, partially offset by lower securities lending revenue.

Martin: Sequentially, base fee and securities lending revenue was up 3%, reflecting higher average AUM and 3% annualized organic base fee growth in the current quarter.

Martin Small: Ending spot AUM was 2% higher than quarterly average AUM as markets sharply recovered after April's decline. Performance fees of $164 million increased 39% from a year ago, driven by both liquid alternatives and long-only products. Quarterly technology services revenue is up 10% compared to a year ago and up 5% sequentially, reflecting successful client go-lots. Annual Contract Value, or ACV, increased 10% year-over-year, reflecting sustained demand for our full range of Aladdin technology. Additionally, 80% of new logo sales this year have come from opportunities including multiple products.

Martin: Our annualized effective fee rate was flat compared to the first quarter. Ending spot AUM was 2% higher than quarterly average AUM as markets sharply recovered after April declines.

Unknown Executive: Performance fees of 164 million increased 39% from a year ago, driven by both liquid alternatives and long-only products. Quarterly technology services revenue was up 10% compared to a year ago and up 5% sequentially, reflecting successful client go-lives. Annual contract value or ACV increased 10% year-over-year, reflecting sustained demand for a full range of Aladdin technology offerings. 80% of new logo sales this year have come from opportunities including multiple products. We have a strong multi-product pipeline and remain committed to load a mid-team ZACV growth over the long-term. Prequent is expected to accelerate plan technology services ZACV growth within our target range.

Martin: Performance fees of $164 million increased 39% from a year ago, driven by both liquid alternatives and long-only products.

Martin: Quarterly technology services revenue is up 10% compared to a year ago and up 5% sequentially, reflecting successful client go lives.

Martin: Annual contract value, or ACV, increased 10% year-over-year, reflecting sustained demand for our full range of Aladdin technology offerings.

Martin: 80% of new logo sales this year have come from opportunities including multiple products.

Martin Small: We have a strong multiproduct pipeline and remain committed to low to mid-teens ACV growth over the long term. Prequin is expected to accelerate planned technology services ACV growth within our target range. Total expense increased 5% year-over-year, primarily driven by higher incentive compensation, G&A, and sales asset and account expense.

Martin: We have a strong multi-product pipeline and remain committed to low to mid-teens ACV growth over the long term. Prequin is expected to accelerate planned technology services ACV growth within our target range.

Unknown Executive: Total expense increased 5% year-over-year, primarily driven by higher incentive compensation, GNA, and sales asset and account expense. Employee compensation and benefit expense was up 4% year-over-year, reflecting higher incentive compensation as a result of higher operating income and performance fees. GNA expense was up 7% year-over-year, primarily due to the timing of technology spend in the prior year and higher professional services expense. Sales, asset, and account expense increased 4% compared to a year ago, primarily driven by higher direct fund expense. Direct fund expense increased 4% year-over-year, and 6% sequentially, primarily as a result of higher average ETF AUM.

Martin: Total expense increased 5% year-over-year, primarily driven by higher incentive compensation, G&A, and sales asset and account expense.

Martin Small: Employee compensation and benefit expense was up 4% year over year, reflecting higher incentive compensation as a result of higher operating income and performance. G&A expense was up 7% year over year, primarily due to the timing of technology spend in the prior year and higher professional services. Sales, asset, and account expense increased 4% compared to a year ago, primarily driven by higher direct funding. Direct fund expense increased 4% year-over-year and 6% sequentially, primarily as a result of higher average ETF AUF.

Martin: Employee compensation and benefit expense was up 4% year-over-year, reflecting higher incentive compensation as a result of higher operating income and performance fees.

Martin: G&A expense was up 7% year-over-year primarily due to the timing of technology spend in the prior year and higher professional services expense.

Martin: Sales, asset, and account expense increased 4% compared to a year ago, primarily driven by higher direct fund expense.

Martin: Direct fund expense increased 4% year-over-year and 6% sequentially, primarily as the result of higher average ETF AUM.

Martin Small: Our as-adjusted operating margin of 44.1% was up 160 basis points from a year ago, reflecting the positive impact of markets on revenue and organic growth this quarter. As markets improve, we expect execution on our financial rubric to drive profitable growth and operating leverage. In line with our guidance in January, and excluding the impact of global infrastructure partners, frequent, and related transaction costs, at present, we would expect our headcount to be broadly flat in 2024, and we would also expect a low to mid-single-digit percentage increase in our 2024 core G&A expense.

Unknown Executive: Our as-adjusted operating margin of 44.1% was up 160 basis points from a year ago, reflecting the positive impact of markets on revenue and organic growth this quarter. As markets improved, we expect execution on our financial rubric to drive profitable growth and operating leverage.

Martin: Our as-adjusted operating margin of 44.1% was up 160 basis points from a year ago, reflecting the positive impact of markets on revenue and organic growth this quarter.

Martin: As markets improve, we expect execution on our financial rubric to drive profitable growth and operating leverage.

Unknown Executive: In line with our guidance in January and excluding the impact of global infrastructure partners, frequent and related transaction costs, at present we would expect our head count to be broadly flat in 2024, and we would also expect a low to mid-single-digit percentage increase in 2024 Core GNA expense. Our Capital Management Strategy remains first to invest in our business, to either scale strategic growth initiatives or drive operational efficiency, and then to return excess cash to shareholders through a combination of dividends and share repurchases. At times, we may make an organic investment where we see an opportunity to accelerate growth and support our strategic initiatives.

Martin: In line with our guidance in January , and excluding the impact of global infrastructure partners, frequent and related transaction costs,

Martin: At present, we would expect our headcount to be broadly flat in 2024, and we would also expect a low to mid-single-digit percentage increase in 2024 core-GNA expense.

Martin Small: Our capital management strategy remains first to invest in our business, to either scale strategic growth initiatives or drive operational efficiency, and then to return excess cash to shareholders through a combination of dividends and share repurchase. At times, we may make inorganic investments where we see an opportunity to accelerate growth and support our strategic initiatives. We repurchased $500 million worth of common shares in the second quarter, which exceeded our planned run rate as we saw attractive relative valuation opportunities in our stock.

Martin: Our capital management strategy remains first to invest in our business, to either scale strategic growth initiatives or drive operational efficiency, and then to return excess cash to shareholders through a combination of dividends and share repurchases.

Martin: At times, we may make inorganic investments where we see an opportunity to accelerate growth and support our strategic initiatives.

Unknown Executive: We repurchase 500 million worth of common shares in the second quarter, which exceeded our plan run rate as we saw attractive relative valuation opportunities in our stock. At present, based on our capital spending plans for the year and subject to market conditions, we still anticipate repurchasing at least 375 million of shares per quarter for the balance of the year, consistent with our previous guidance in January. At present, we'd expect our planned acquisition of GIP to close in the third quarter of 2024, subject to regulatory approvals and other customary closing conditions. And just a few weeks ago, we announced our planned acquisition of Pre-Quip, marking both an extension of our private markets capabilities and a launching point into the adjacent fast growing private markets data segment.

Martin: We repurchased $500 million worth of common shares in the second quarter, which exceeded our planned run rate as we saw attractive relative valuation opportunities in our stock.

Martin Small: At present, based on our capital spending plans for the year and subject to market conditions, we still anticipate repurchasing at least 375 million shares per quarter for the balance of the year, consistent with our previous guidance in January. At present, we'd expect our planned acquisition of GIP to close in the third quarter of 2024, subject to regulatory approvals and other customary closing conditions. And just a few weeks ago, we announced our planned acquisition of PreQuim, marking both an extension of our private markets capabilities and a launching point into the adjacent, fast-growing private markets data segment.

Martin: At present, based on our capital spending plans for the year and subject to market conditions, we still anticipate repurchasing at least 375 million of shares per quarter for the balance of the year, consistent with our previous guidance in January .

Martin: At present, we'd expect our planned acquisition of GIP to close in the third quarter of 2024, subject to regulatory approvals and other customary closing conditions.

Martin: And just a few weeks ago, we announced our planned acquisition of PreQuim, marking both an extension of our private markets capabilities and a launching point into the adjacent fast-growing private markets data segment. We expect it will accelerate the growth and revenue contribution of technology services.

Martin Small: We expect it will accelerate the growth and revenue contribution of technology services. The bigger, longer-term opportunity is leveraging our engines in Aladdin and indexing with our capital markets expertise to build the machine for the indexing of private markets. What the creation of public benchmarks did to drive stock markets, especially visible through iShares, we believe the combination of BlackRock and Prequin can do for private markets. The momentum we spoke about last quarter is visible in our flows, with $82 billion of total net inflows in the second quarter, which included the previously mentioned large outflow from one client. Excluding that single client outflow, flows were positive across product types and active in the index.

Unknown Executive: We expect it will accelerate the growth and revenue contribution to technology services. The bigger longer-term opportunity is leveraging our engines and Aladdin and indexing with our capital market expertise to build the machine for the indexing of private markets. What the creation of public benchmarks did to drive stock markets, especially visible to riceers, we believe the combination of Black Rock and pre-quin can do for private markets. The momentum we spoke to last quarter is visible in our flows, with 82 billion of total net inflows in the second quarter, which included the previously mentioned large outflow from one client.

Martin: The bigger, longer-term opportunity is leveraging our engines in Aladdin and indexing with our capital markets expertise to build the machine for the indexing of private markets.

Martin: What the creation of public benchmarks did to drive stock markets, especially visible through iShares, we believe the combination of BlackRock and PreQuint can do for private markets.

Martin: The momentum we spoke to last quarter is visible in our flows, with 82 billion of total net inflows in the second quarter, which included the previously mentioned large outflow from one client. Excluding that single client outflow, flows were positive across product types and active in index.

Unknown Executive: Excluding that single client outflow, flows were positive across product types and active in index. Black Rock led the ETF industry in flows for the first half of 2024 and the second quarter, and our flows are more diversified by product type, channel, and region than any other issue. Second quarter Black Rock ETF net inflows of 83 billion were led by fixed income and core equity ETFs, which saw 34 billion and 32 billion of net inflows, respectively. Precision ETFs added net inflows of 14 billion in the quarter as clients reassessed their tactical portfolio allocations, adding exposures to growth equity.

Martin Small: BlackRock led the ETF industry and flows for the first half of 2024 and the second quarter. And our flows are more diversified by product type, channel, and region than any other issuer. Second quarter BlackRock ETF net inflows of $83 billion were led by fixed income and core equity ETFs, which saw $34 billion and $32 billion of net inflows, respectively. Precision ETFs added net inflows of $14 billion in the quarter as clients reassessed their tactical portfolio allocations, adding exposures to growth equity.

Martin: BlackRock led the ETF industry in flows for the first half of 2024 and the second quarter, and our flows are more diversified by product type, channel, and region than any other issuer.

Martin: Second quarter BlackRock ETF net inflows of $83 billion were led by fixed income and core equity ETFs, which saw $34 billion and $32 billion of net inflows respectively.

Speaker Change: Precision ETFs added net inflows of 14 billion in the quarter as clients reassess their tactical portfolio allocations adding exposures to growth equity.

Unknown Executive: Black Rock's Bitcoin ETF continues to lead, gathering another 4 billion in the second quarter for 18 billion of net inflows in its first six months. Retail net inflows of 6 billion reflected continued strength in a period and broad-based net inflows into active fixed income. A period recently crossed the 100 billion AUM milestone, logging over 20% organic growth since we acquired the business a little over three years ago. As fee-based fiduciary wealth advisors grow across the world, managed model portfolios are the main way in which wealth managers are looking to scale their practices and better serve their clients.

Martin Small: BlackRock's Bitcoin ETF continues to lead, gathering another $4 billion in the second quarter for $18 billion of net inflows in its first six months. Retail net inflows of $6 billion reflected continued strength in Aperio and broad-based net inflows into active fixed income. Aperio recently crossed the $100 billion AUM milestone, logging over 20% organic growth since we acquired the business a little over three years ago. As fee-based fiduciary wealth advisors grow across the world, managed model portfolios are the main way in which wealth managers are looking to scale their practices and better serve their clients.

Speaker Change: BlackRock's Bitcoin ETF continues to lead, gathering another $4 billion in the second quarter for $18 billion of net inflows in its first six months.

Speaker Change: Retail net inflows of $6 billion reflected continued strength in Appirio and broad-based net inflows into active fixed income. Appirio recently crossed the $100 billion AUM milestone, logging over 20% organic growth since we acquired the business a little over three years ago.

Speaker Change: As fee-based fiduciary wealth advisors grow across the world, managed model portfolios are the main way in which wealth managers are looking to scale their practices and better serve their clients.

Martin Small: BlackRock has the leading models business, and we grow through distribution of our own models, as well as through distribution of third-party models that typically include strong allocations to iShare. Our partnership with InvestNet continues to help InvestNet advisors grow and to drive assets into BlackRock products through models. In the second quarter, we saw our best net sales month on the platform in nearly three years and have generated 20% annualized organic growth in 2020.

Unknown Executive: Black Rock has the leading models business, and we grow through distribution of our own models, as well as through distribution of third-party models that typically include strong allocation die shares. Our partnership with investment continues to help investment advisors grow and to drive assets into BlackRock products through model. In the second quarter, we saw our best net sales month on the platform in nearly three years and have generated 20% annualized organic growth in 2024. Last month, Investment and BlackRock announced new programs to expand personalized investment strategies on the Investment Platform across direct indexing, models, and portfolio consulting.

Speaker Change: BlackRock has the leading models business, and we grow through distribution of our own models, as well as through distribution of third-party models that typically include strong allocations to iShares.

Speaker Change: Our partnership with Investnet continues to help Investnet Advisors grow and to drive assets into BlackRock products through models.

Speaker Change: In the second quarter, we saw our best net sales month on the platform in nearly three years and have generated 20% annualized organic growth in 2024.

Martin Small: Last month, Investnet and BlackRock announced new programs to expand personalized investment strategies on the Investnet platform across direct indexing, models, and portfolio consulting. Also in June, we announced a partnership with GeoWealth to expand our custom model offerings, which represents the fastest growing segment. The custom models offered through GEO Wealth's platform will provide advisors with a streamlined and scalable approach that combines public and private markets in one portfolio solution. However, institutional active net outflows of $2 billion were impacted by the previously mentioned single client redemption. We saw the funding of several whole portfolio assignments and strengthened private markets as clients sought out and leveraged our comprehensive multi-alternatives platform. Institutional index net outflows of $35 billion were concentrated in low-fee index equity.

Speaker Change: Last month, InvestNet and BlackRock announced new programs to expand personalized investment strategies on the InvestNet platform across direct indexing, models, and portfolio consulting.

Unknown Executive: Also in June, we announced a partnership with GeoWealth to expand our custom models offerings, which represents the fastest growing model segment. The custom models offered through GeoWealth's platform will provide advisors with a streamlined and scalable approach that combines public and private markets in one portfolio solution. Institutional active net outflows of 2 billion were impacted by the previously mentioned single client redemption. We saw the funding of several whole portfolio assignments and strengthen private markets as clients seek out and leverage our comprehensive multi-alternative platform. Institutional index net outflows of 35 billion were concentrated in low-fee index equities.

Speaker Change: Also in June , we announced a partnership with GeoWealth to expand our custom models offerings, which represents the fastest-growing model segment.

Speaker Change: The custom models offered through GEO Wealth's platform will provide advisors with a streamlined and scalable approach that combines public and private markets in one portfolio solution.

Speaker Change: Institutional active net outflows of $2 billion were impacted by the previously mentioned single client redemption. We saw the funding of several whole portfolio assignments and strengthened private markets as clients seek out and leverage our comprehensive multi-alternatives platform.

Speaker Change: Institutional index net outflows of $35 billion were concentrated in low-fee index equities.

Martin Small: Several large clients, mostly outside the United States, rebalanced their portfolios amid record levels for equity markets. Private markets generated net inflows of $2 billion. Continued demand for our infrastructure and private equity solutions was partially offset by successful realizations of about $4 billion, primarily from private equity strategies. Finally, cash management net inflows of $30 billion were driven by government and international prime funds.

Unknown Executive: Several large clients, mostly outside the United States, rebalanced their portfolios amid record levels for equity markets. Private markets generated net inflows of 2 billion. Continued demand for our infrastructure and private equity solutions were partially offset by successful realizations of about 4 billion, primarily from private equity strategies. Finally, cash management net inflows of 30 billion were driven by government and international prime funds. Flows benefited in part from clients reinvesting in cash strategies in early April after redeeming balances during the last week of March. Net inflows included multiple large new client mandates, as connectivity between our cash and capital markets teams allows us to deliver clients holistic advice and market insight.

Speaker Change: Several large clients, mostly outside the United States, rebalanced their portfolios amid record levels for equity markets.

Speaker Change: Private markets generated net inflows of $2 billion. Continued demand for our infrastructure and private equity solutions were partially offset by successful realizations of about $4 billion, primarily from private equity strategies.

Speaker Change: Finally, cash management net inflows of $30 billion were driven by government and international prime funds.

Martin Small: Flows benefited in part from clients reinvesting in cash strategies in early April after redeeming balances during the last week of March. Net inflows included multiple large new client payments, as connectivity between our cash and capital markets teams allows us to deliver clients holistic advice and marketing. Our scale and active approach with clients around their liquidity management are driving sustained growth in our cash platform, strategy, and platform evolution. They're rooted in our convictions about future clients, about required investment capabilities, about technology, and about scale generation.

Speaker Change: Flows benefited in part from clients reinvesting in cash strategies in early April after redeeming balances during the last week of March. Net inflows included multiple large new client mandates as connectivity between our cash and capital markets teams allows us to deliver clients holistic advice and market insight.

Unknown Executive: Our scale and active approach from clients around their liquidity management are driving sustained growth in our cash platform. BlackRock's strategy and platform evolution, they're rooted in our convictions about future client needs, about required investment capabilities, about technology, about scale generation. Teams across BlackRock are committed, are connected in delivering on significant client opportunities, driving product innovation, and operating more nimbly and efficiently. Momentum continues to build across our platform. We're better positioned than ever to grow our share with clients and deliver profitable growth for our shareholders.

Speaker Change: Our scale and active approach to clients around their liquidity management are driving sustained growth in our cash platform.

Speaker Change: BlackRock's strategy and platform evolution, they're rooted in our convictions about future client needs, about required investment capabilities, about technology, about scale generation.

Martin Small: Teams across BlackRock are connected in delivering on significant client opportunities, driving product innovation, and operating more nimbly and efficiently. Momentum continues to build across our platform. We're better positioned than ever to grow our share with clients and deliver profitable growth for our shareholders. I'll turn it over to Larry.

Speaker Change: Teams across BlackRock are connected and delivering on significant client opportunities, driving product innovation, and operating more nimbly and efficiently. Momentum continues to build across our platform. We're better positioned than ever to grow our share with clients and deliver profitable growth for our shareholders.

Laurence Fink: I'll turn it over to Larry. Thank you, Martin. BlackRock's four business growth is the strongest we've seen in nearly three years. With a significant upward shift ever since our last earnings call in April. Second quarter core net inflows were approximately 150 billion, excluding lower fee episodic M&A and institutional index activities. Our structural growers, areas like ETS, models, Aladdin and private markets, are powering steadily higher organic basic growth. Organic basic growth represented the best second quarter since 2021. 2024 has been our ETS strongest start in a year on record, with 150 billion dollars of net inflows.

Laurence Douglas Fink: Thank you, Martin. BlackRock's core business growth is the strongest we've seen in nearly three years, with a significant upward shift ever since our last earnings call in April. Second quarter core net inflows were approximately $150 billion, excluding lower fee episodic M&A and Institutional Index Activity. Our structural growers, areas like ETS, Models, Aladdin, and private markets, are powering steadily higher organic-based seed growth. Organic-based feed growth represented the best second quarter since 2021.

Speaker Change: I'll turn it over to Larry.

Larry: Thank you, Martin.

Larry: BlackRock's core business growth is the strongest we've seen in nearly three years.

Larry: with a significant upward shift ever since our last earnings call in April .

Larry: Second quarter core net inflows were approximately a hundred and fifty billion.

Larry: excluding lower fee episodic M&A

Larry: and Institutional Index Activities.

Larry: Are structural growers, areas like ETS, models, Aladdin, and private markets

Larry: Are Powering Steadily Higher Organic-Based Seed Growth?

Larry: Organic base feed growth represented the best second quarter since 2021.

Laurence Douglas Fink: 2024 has been our ETF strongest start on a year on record with $150 billion of net inflows, and June flows were the strongest month in our history and for any other issuer. We're executing on landmark mandates across our platform and on closing our planned acquisitions of GIP and PreQuint. Client and stakeholder feedback on both GIP and PreQuint has been increasingly enthusiastic. We are on a differentiated path to transform our capabilities in infrastructure and meet the growing need for private market technology, data, and benchmarking.

Larry: 2024 has been our ETF's strongest start in a year on record with $150 billion of net inflows and iShares June flows were the strongest month in our history and for any other issuer.

Laurence Fink: And I share as June flows with the strongest month in our history and for any other issue. We are executing on landmark mandates across our platform and on closing our planned acquisitions of GIP and Frequent. Blind and stakeholder feedback on both GIP and frequent has been increasingly enthusiastic. We are on a differentiated path to transform our capabilities in infrastructure and the need to grow in need for private market technology, data, and benchmarking. We believe this will deepen our relationships with clients and deliver value to you, our shareholders. Our growth in private markets provides a whole new engine for premium, diversified organic growth and less beta-sensitive revenues, both of which should drive future earnings and multiple expansion.

Larry: We're executing on landmark mandates across our platform and on closing our planned acquisitions of GIP and frequent.

Larry: Client and stakeholder feedback on both GIP and Frequent has been increasingly enthusiastic.

Larry: We are on a differentiated path to transform our capabilities and infrastructure and to meet the growing need for private market technology, data, and benchmarking.

Laurence Douglas Fink: We believe this will deepen our relationships with our clients and deliver value to you, our shareholders. Our growth in private markets provides a whole new engine for premium diversified organic growth and less beta-sensitive revenues, both of which should drive future earnings and multiple expansion. We have strong conviction that we are on pace to reach our 5% organic base feed growth target.

Larry: We believe this will deepen our relationships with our clients and deliver value to you, our shareholders.

Larry: Our growth in private markets provides a whole new engine for premium diversified organic growth and less beta sensitive revenues, both of which should drive future earnings and multiple expansion.

Laurence Fink: We have strong conviction we are on pace to reach our 5% organic base fee growth target. And the expected third quarter closing on GIP will add on to our organic both base fee growth potential, doubling our private market's base fees and adding approximately $100 billion of AUM focused on infrastructure. At BlackRock, we always intensely push ourselves to anticipate where markets are going. What clients will need and how we can deliver better outcomes in better ways to each and every client. We set the standard for buy-side risk management technology by launching Aladdin on the death tops of investors over 20 years ago.

Larry: We have strong conviction we are on pace to reach our 5% organic base feed growth target.

Laurence Douglas Fink: And the expected third quarter closing of GIP will add to our organic base fee growth potential, doubling our private market base fees and adding approximately $100 billion of AUM focus on infrastructure. At BlackRock, we always intensely push ourselves to anticipate where markets are going, what clients will need, and how we can deliver better outcomes in better ways to each and every client. We set the standard for buy-side risk management technology by launching Aladdin on the desktops of investors over 20 years ago.

Larry: And the expected third quarter closing of GIP will add on to our organic base fee growth potential, doubling our private market base fees and adding approximately $100 billion of AUM focus on infrastructure.

Larry: At BlackRock, we always intensely push ourselves to anticipate where markets are going, what clients will need, and how we can deliver better outcomes in better ways to each and every client.

Larry: We set the standard for buy-side risk management technology by launching Aladdin on the desktops of investors over 20 years ago.

Laurence Fink: We acquire BGI and I share to redefine whole portfolio investing by blending both active and indexing to build better outcome-oriented portfolios. I shares AUM was about $300 billion when we announced our acquisition in 2009. Today I shares is approaching $4 trillion of client money. We recently celebrated the 5-year anniversary of the E-Front acquisition, where ACV has now more than doubled since becoming part of BlackRock.

Laurence Douglas Fink: We acquired BGI and iShare to redefine whole portfolio investing by blending both active and indexing to build better outcome-oriented portfolios. iShares AUM was about $300 billion when we announced our acquisition in 2009. Today, iShares is approaching $4 trillion of client money. We recently celebrated the five-year anniversary of the E-Front acquisition, where ACV has now more than doubled.

Larry: We acquired BGI and iShare to redefine whole portfolio investing by blending both active and indexing to build better outcome oriented portfolios.

Larry: iShares AUM was about 300 billion dollars when we announced our acquisition in 2009. Today iShares is approaching 4 trillion dollars of client money.

Larry: We recently celebrated the five-year anniversary of the eFront acquisition where ACV has now more than doubled.

Laurence Douglas Fink: This is becoming part of BlackRock. We have never been shy about taking big, bold, strategic moves to transform ourselves and, most importantly, to transform our industry. Our successful business transformations are delivering our strong performance today and opening up meaningful new growth markets for our clients and for our shareholders. We continue on our mission to transform the private market. BlackRock is unique in delivering an integrated approach to help our clients across all aspects of private market investing, enabling a seamless view into investment management, into technology, and data onto one single platform.

Larry: This is becoming part of BlackRock.

Laurence Fink: We have never been shy about taking big, bold, strategic moves to transform ourselves and, most importantly, to transform our industry. Our successful business transformations are delivering our strong performance today and opening up meaningful new growth markets for our clients and shareholders. We continue on our mission to transform private markets. BlackRock is unique in delivering an integrated approach to help our clients across all aspects of private market investing, enabling a seamless view into investment management, into technology and data onto one single platform. With a strong common culture of serving clients with excellence together with GIP, we will deliver for our clients a holistic global infrastructure manager across equities, debt, and solutions.

Larry: We have never been shy about taking big, bold, strategic moves.

Larry: To transform ourselves, and most importantly, to transform our industry.

Larry: Our successful business transformations are delivering our strong performance today and opening up meaningful new growth markets for our clients and for our shareholders.

Larry: We continue on our mission to transform private markets.

Speaker Change: BlackRock is unique in delivering an integrated approach to help our clients across all aspects of private market investing, enabling a seamless view into investment management, into technology, and data onto one single platform.

Laurence Douglas Fink: With a strong common culture of serving clients with excellence, together with GIP, we will deliver for our clients a holistic global infrastructure manager across equities, debt, and solutions. We'll provide the full range of infrastructure sector exposures, and we will offer unique origination across developed and emerging world markets. Our recently announced agreement to acquire Prequin is another step in the transformation of our private markets and technology platform. As private markets grow, data and analytics will become increasingly important. We believe our planned acquisition of Precuin will help to compete the whole portfolio by delivering high-quality data, integrated with Workflows.

Speaker Change: With a strong common culture of serving clients with excellence, together with GIP, we will deliver for our clients a holistic global infrastructure manager across equities, debt, and solutions.

Unknown Executive: We will provide the full range of infrastructure sector exposures, and we will offer a unique origination across developed and emerging world markets.

Speaker Change: We'll provide the full range of infrastructure sector exposures, and we'll offer a unique origination across developed and emerging world markets.

Unknown Executive: Records. Our recently announced agreement to choir prequen is another step in the transformation of our private markets and technology platform. As private markets grow, data and analytics will become increasingly more important. We believe our planned acquisition of Prequen will help to compete the whole portfolio by delivering high quality data integrated with workflows. Ultimately, this should drive increased accessibility and efficiencies in private markets. And the combination of Prequen with Aladdin and E-front presents an opportunity to find a common language for private markets, powering the next generation of full portfolio. We envision we could bring the principles of indexing to the private markets through standardization of data, through benchmarking, and through better performance tools.

Speaker Change: Our recently announced agreement to acquire Prequin is another step in the transformation of our private markets and technology platform.

Speaker Change: As private markets grow, data and analytics will become increasingly more important.

Speaker Change: We believe our planned acquisition of Prequin will help to compete the whole portfolio by delivering high-quality data

Laurence Douglas Fink: Ultimately, this should drive increased accessibility and efficiencies in private markets, and the combination of PreQuint with Aladdin and eFront presents an opportunity to find a common language for private markets. Powering the Next Generation of Full Portfolios. We envision that we could bring the principles of indexing to the private markets through standardization of data, benchmarking, and better performance tools. BlackRock has developed a broad network of global corporate relationships through our many years of long-term investments in both debt and equity. For companies where we're investors, they appreciate that we are long term, consistent, and always their capital. We're not transactional.

Speaker Change: Integrated with Workflows.

Speaker Change: Ultimately, this should drive increased accessibility and efficiencies in private markets.

Speaker Change: And the combination of PreQuint with Aladdin and eFront presents an opportunity to find a common language for private markets.

Speaker Change: Powering the next generation of full portfolios.

Speaker Change: We envision we could bring the principles of indexing to the private markets through standardization of data, through benchmarking, and through better performance tools.

Unknown Executive: BlackRock has developed a broad network of global corporate relationships through our many years of long-term investments in both their data and equity. For companies where we're investors, they appreciate that we are long-term, consistent, always there are capital. We're not transactional. We invest early, and we stay invested through cycles. Whether it's data, equities, pre-IPO, post-IPOs, companies recognize the uniqueness of our global relationship, our brand, and our expertise across markets and industries. This makes us a valuable partner and turn and locks the opportunity and performance we could provide for clients. Unique D flow and track record of successful exits create a flywheel effect, enabling future fundraising and more scaled funds.

Speaker Change: BlackRock has developed a broad network of global corporate relationships through our many years of long-term investments in both debt and equity.

Speaker Change: For companies where we're investors, they appreciate that we are long-term, consistent, always their capital.

Laurence Douglas Fink: We invest early, and we stay invested through cycles, whether it's debt or equities, pre-IPO or post-IPO. Companies recognize the uniqueness of our global relationship, our brand, and our expertise across markets and industries. This makes us a valuable partner and, in turn, unlocks the opportunity and performance we can provide for clients. Unique deal flow and a track record of successful exits create a flywheel effect, enabling future fundraising and more scaled funds. Corporates and clients increasingly want to work with BlackRock, and we are executing on the best opportunity sets we've seen in years across iShares, private markets, whole portfolio solutions, and Aladdin. Importantly, our business has great breadth, with organic growth diversified across our platform. In the first half of 2024, flows were positive and active in the index and across all asset classes.

Speaker Change: We're not transactional. We invest early and we stay invested through cycles. Whether it's debt or equities, pre-IPO, post-IPOs, companies recognize the uniqueness of our global relationship, our brand, and our expertise across markets and industries.

Speaker Change: This makes us a valuable partner and in turn unlocks the opportunity and performance we can provide for clients.

Speaker Change: Unique deal flow and track record of successful exits create a flywheel effect enabling future fundraising and more scaled funds.

Unknown Executive: Corporate and clients increasingly want to work with BlackRock. And we are executing on the best opportunity sets we've seen in years across high shares, private markets, whole portfolio solutions, and Aladdin. Importantly, our business has great breath with organic growth diversified across our platform. In the first half of 2024, flows were positive in active in index and across all asset classes. Our active platform, including alternatives, contributed $11 billion. ETF remains a secular growth driver, crossing $150 billion of net inflows and already representing more than 70% of our total flows of last year. And our technology services revenue grew double-digit in the first half of the year.

Speaker Change: Corporates and clients increasingly want to work with BlackRock.

Speaker Change: And we are executing on the best opportunity sets we've seen in years across iShares, private markets, whole portfolio solutions, and Aladdin.

Speaker Change: Importantly, our business has great breath with organic growth diversified across our platform.

Speaker Change: In the first half of 2024, flows were positive and active in index and across all asset classes.

Laurence Douglas Fink: Our active platform, including Alternatives, contributed $11 billion. ETF remains a secular growth driver, crossing $150 billion of net inflows and already representing more than 70% of our total flows of last year, and our technology services revenue grew double digits in the first half of the year.

Speaker Change: Our active platform, including Alternatives, contributed $11 billion. ETF remains a secular growth driver, crossing $150 billion of net inflows, and already representing more than 70% of our total flows of last year.

Speaker Change: and our technology services revenue grew double-digit in the first half of the year.

Unknown Executive: Importantly, we have notified fundings for a number of scaled institutional wealth management that we expect to fund over the coming quarters. For example, in the second quarter we were selected to manage a $10 billion US corporate plan, a multi-billion fixed income portfolio for a large defined benefit scheme, and scientific active equity strategies for several global financial clients. These add to the global mandates which we've seen that we've been chosen over the last six months, including a large US RIA, a UK pension fund, and a European captive asset management, are just a few examples.

Laurence Douglas Fink: We have notified fundings for a number of scaled institutional wealth management projects that we expect to fund over the coming quarters. For example, in the second quarter, we were selected to manage a $10 billion U.S. corporate plan, a multi-billion fixed income portfolio for a large defined benefit scheme, and scientific active equity strategies for several global financial clients. These add to the global mandates that we've seen that we've been chosen for over the last six months, including a large U.S. RIA, a U.K. pension fund, and a European captive asset management are just a few examples.

Speaker Change: Importantly,

Speaker Change: We have notified fundings for a number of scaled institutional wealth management that we expect to find over the coming quarters.

Speaker Change: For example, in the second quarter, we were selected to manage a $10 billion U.S. corporate plan, a multi-billion fixed income portfolio for a large defined benefit scheme, and scientific active equity strategies for several global financial clients.

Speaker Change: These add to the global mandates which we've seen, that we've been chosen over the last six months, including a large US RIA, a UK pension fund, a European captive asset management are just a few examples.

Unknown Executive: Schools. As we look to unbord these mandates and more in future quarters and delivering the outcomes of our clients and their constituents and what they need. Roy and business momentum across our scaled asset management and technology platform is driving strong financial results. BlackRock's operating income was up 12% year over year for 160 basis points of margin expansion. Earnings for share was up 12%, and we remain committed to delivering differentiated organic growth and a premium margin to our investors. We continue to generate leading organic growth, and our operating margin of 44.1 is over 10 points above the traditional peer average.

Speaker Change: As we look to onboard these mandates and more in future quarters and delivering the outcomes of our clients and their constituents and what they need.

Laurence Douglas Fink: As we look to onboard these mandates and more in future quarters and deliver the outcomes of our clients and their constituents and what they need, join Business Momentum across our scaled asset management and technology platform is driving strong financial results. BlackRock's operating income was up 12% year over year for 160 basic points of margin expansion.

Speaker Change: Growing business momentum across our scaled asset management and technology platform is driving strong financial results.

Speaker Change: BlackRock's operating income was up 12% year-over-year for a hundred and sixty basic points of margin expansion.

Laurence Douglas Fink: Earnings per share were up 12%, and we remain committed to delivering differentiated organic growth at a premium margin to our investors. We continue to generate leading organic growth, and our operating margin of 44.1 is over 10 points above the traditional peer average. Principles say 5% yields on cash have kept many investors overweight in cash, and nearly $9 trillion still sits in money market funds.

Speaker Change: Earnings per share was up 12% and we remain committed to delivering differentiated organic growth and a premium margin to our investors. We continue to generate leading organic growth and our operating margin of 44.1 is over 10 points above the traditional peer average.

Unknown Executive: Principles say 5% yields in cash have kept many investors overweight in cash, and nearly $9 trillion still sits in money market funds. Those waiting in cash would have missed out on a broad stock market returns of over 26% over the last year, including 17% so far in 2024. Long-term outcomes and future liability matching needs more than a 5% return. Investors will have to re-risk, which should improve flows into equities and credit markets. BlackRock is always a share winner when assets are in motion and a meaningful outperformer in periods of investors re-risking. BlackRock operates from a position of strength.

Speaker Change: Principles say 5% yields in cash have kept many investors overweight in cash and nearly $9 trillion still sits in money market funds.

Laurence Douglas Fink: Those waiting in cash would have missed out on broad stock market returns of over 26% over the last year, including 17% so far in 2024. However, long-term outcomes and future liability matching need more than a 5% return. Investors will have to re-risk, which should improve flows into equities and credit markets. BlackRock is always a sheer winner when assets are in motion and a meaningful outperformer in periods of investor re-risking. BlackRock operates from a position of strength.

Speaker Change: Those waiting in cash would have missed out on a broad stock market returns of over 26% over the last year, including 17% so far in 2024.

Speaker Change: Long-term outcomes and future liability matching needs more than a 5% return. Investors will have to re-risk, which should improve flows into equities and credit markets.

Speaker Change: BlackRock is always a sheer winner when assets are in motion and a meaningful outperformer in periods of investors re-risking.

Laurence Douglas Fink: We have a clear path to our 5% organic base feed growth target, and we're transforming ourselves to build a firm that can exceed that target. Clients increasingly see the value in the BlackRock model. A single, unified platform designed for clients, unmatched in breadth, powered by BlackRock, and totally built on trust. It goes beyond clients simply wanting to do more with BlackRock. They're looking for a partner that innovates and helps them grow.

Unknown Executive: We have a clear path to our 5% organic basic growth target, and we're transforming ourselves to build a firm that can exceed that target. Clients increasingly see the value in the BlackRock model, a single unified platform designed for clients unmatched and breath powered by BlackRock and totally built on trust. And it goes beyond clients simply wanting to do more of BlackRock. They're looking for a partner that innovates and helps them grow. The world's largest asset owners won deep strategic partnerships, increased customization and innovation, approaching that might include creative co-investment opportunities and co-development of strategies. BlackRock's decarbonization partners joined Venture with Tomasig is one example of this type of relationship.

Speaker Change: BlackRock operates from a position of strength. We have a clear path to our 5% organic base feed growth target and we're transforming ourselves to build a firm that can exceed that target.

Speaker Change: Clients increasingly see the value in the BlackRock model.

Speaker Change: A single, unified platform designed for clients, unmatched in breadth, powered by BlackRock, and totally built on trust.

Speaker Change: And it goes beyond clients simply wanting to do more with BlackRock, they're looking for a partner that innovates and helps them grow.

Laurence Douglas Fink: The world's largest asset owners want deep strategic partnerships, increased customization, and innovation, approaches that might include creative co-investment opportunities and co-development of strategies. BlackRock's decarbonization partners joint venture with Temasek is one example of this type of relationship. In the second quarter, we announced that its inaugural fund closed at a final close above its fundraising target, raising $1.4 billion. The First Time Fund attracted over 30 institutional clients representing 18 countries.

Speaker Change: The world's largest asset owners want deep strategic partnerships, increased customization and innovation, approaching that might include a creative co-investment opportunities and co-development of strategies.

Speaker Change: BlackRock's decarbonization partners joint venture with Tomasic is one example of this type of relationship. In the second quarter we had we announced that its inaugural fund had a final close above its fundraising target raising 1.4 billion dollars.

Unknown Executive: In the second quarter, we announced that it's a inaugural fund and a final close above its fundraising target range of $1.4 billion. The first time fund attracted over 30 institutional clients representing 18 countries. The diversity in depth of the investor base is the testament to our long standing client relationships and the strength of our team. Ensures represents some of our most long standing relationships and clients. And we're leveraging your insurance expertise and diversified global platform to deliver fixed income technology and increasingly private market solutions. BlackRock manages nearly $700 billion in long-term AUM for insurance clients.

Speaker Change: The First Time Fund attracted over 30 institutional clients representing 18 countries.

Laurence Douglas Fink: The diversity and depth of the investor base is a testament to our longstanding client relationships and the strength of our team. Insurance represents some of our most long-standing relationships and clients, and we're leveraging our insurance expertise and diversified global platform to deliver fixed income technology increasingly as a private market solution. BlackRock manages nearly $700 billion in long-term AUM for insurance clients, and we are an industry leader in managing for fixed income for insurance companies generally. Insurance CIOs are expanding their mandate with BlackRock to include private markets and structured assets.

Speaker Change: The diversity and depth of the investor base is a testament to our long-standing client relationships and the strength of our team.

Speaker Change: Insurers represent some of our most long-standing relationships and clients and we're leveraging our insurance expertise and diversified global platform to deliver fixed-income technology and increasingly private market solutions.

Speaker Change: BlackRock manages nearly 700 billion dollars in long-term AUM for insurance clients and we are an industry leader in managing for fixed income for insurance companies general accounts. Insurance CIOs are expanding their mandate with BlackRock to include private markets and structured assets.

Unknown Executive: And we are an industry leader in managing poor fixed income for insurance companies' general accounts. Insurance CIOs are expanding their mandate with BlackRock to include private markets and structured assets.

Unknown Executive: Justice. Just a few weeks ago, we were awarded our first large-scale general account allocation for a private structure credit mandate. We also had successful insurers and dedicated SMAs for infrastructure debt where we have different energy capabilities. We have deep, long-standing relationships across our insurance client channel with a dedicated insurance portfolio management team. We see significant opportunities to work more closely with our insurance clients and to leverage our GA business as a potential durable source of long-term capital for our private debt franchises. The industrial logic that informed our planned acquisition of GIP has only begun even clear in the last six months.

Laurence Douglas Fink: Just a few weeks ago, we were awarded our first large-scale general account allocation for a private structured credit mandate. We have also had success with insurers and dedicated SMAs for infrastructure debt, where we have differentiated capabilities. We have deep, long-standing relationships across our insurance client channel with a dedicated insurance portfolio management team. We see a significant opportunity to work more closely with our insurance clients and to leverage our GA business as a potential durable source of long-term capital for our private debt franchises.

Speaker Change: Just a few weeks ago, we were awarded our first large-scale general account allocation for a private structured credit mandate. We also had success with insurers and dedicated SMAs for infrastructure debt where we have differentiated capabilities.

Speaker Change: We have deep, long-standing relationships across our insurance client channel with a dedicated insurance portfolio management team.

Speaker Change: We see significant opportunities to work more closely with our insurance clients and to leverage our GA business as a potential durable source of long-term capital for our private debt franchises.

Laurence Douglas Fink: The industrial logic that informed our planned acquisition of G.I.P. has only begun to become even clearer in the last six months. There is a generational demand for capital and infrastructure, including finance data centers for AI and for energy transition. Private capital will be critical in meeting these infrastructure needs both standalone and through public private partnership, by its reception to G.I.P.

Speaker Change: The industrial logic that informed our planned acquisition of GIP

Unknown Executive: There's a generational demand for capital and infrastructure, including the finance data centers for AI and for energy transition. Private capital will be critical in meeting these infrastructure needs, both standalone and through public-private partnerships. Plants' reception to GIP has been overwhelmingly positive, with strong reverse inquiries from clients excited to partner with a newly scaled infrastructure platform. We see particularly strong demand for opportunities in the AI data centers and energy transition spaces. Through BlackRock's relationships with corporates and sovereigns, BlackRock is at the center of the investment opportunity being shaped by the demand for generative AI. AI cannot truly happen without investments in infrastructure.

Speaker Change: has only begun to even clear

Speaker Change: In the last six months, there's a generational demand for capital and infrastructure, including the finance data centers for AI and for energy transition.

Speaker Change: Private capital will be critical in the meeting these infrastructure needs, both standalone and through public-private partnerships.

Laurence Douglas Fink: The response has been overwhelmingly positive, with strong reverse inquiry from clients excited to partner with a newly scaled infrastructure platform. We see particularly strong demand for opportunities in the AI data centers and energy transition spaces. Through BlackRock's relationships with corporates and sovereigns, BlackRock is at the center of the investment opportunity being shaped by the demand for generative AI. However, AI cannot truly happen without investments in infrastructure. These technologies require a new generation of data centers, which will need enormous amounts of energy to power them.

Speaker Change: My reception to GIP has been overwhelmingly positive.

Speaker Change: With strong reverse inquiry from clients, excited to partner with a newly scaled infrastructure platform.

Speaker Change: We see particularly strong demand for opportunities in the AI data centers and energy transition spaces.

Speaker Change: Through BlackRock's relationships with BlackRock is at the center of the investment opportunity being shaped by the demand for generative AI.

Unknown Executive: These technologies require a new generation of upgrade data centers, which will need enormous amounts of energy to power them. With the AI fuel need to build data centers, we see great potential to monetize the 4.3 gigawatts of power production and capacity of generational assets currently owned by BlackRock's infrastructure funds. When we talk to leaders in industry and governments, they express their desire to build out data centers, AI technology, at the same time to decarbonize. Our diversified infrastructure fund recently invested in my no-love webhouse, a first of its kind partnership, to invest in a hyperscale data center platform in Frankfurt, run entirely on renewable energy.

Speaker Change: AI cannot truly happen without investments in infrastructure. These technologies require a new generation of upgrade data centers, which will need enormous amounts of energy to power them.

Laurence Douglas Fink: With the AI-fueled need to build data centers, we see great potential to monetize the 4.3 gigawatts of power production capacity of generational assets currently owned by BlackRock's infrastructure fund. When we talk to leaders in industry and governments, they express their desire to build out data centers, AI, and technology at the same time as they decarbonize. Our Diversified Infrastructure Fund recently invested in Minova Webhouse, a first-of-its-kind partnership to invest in a hyperscale data center platform in Frankfurt, run entirely on renewable energy, and our planned acquisition of GIP will add a number of global data centers to our portfolio.

Speaker Change: With the AI-fueled need to build data centers, we see great potential to monetize the 4.3 gigawatts of power production capacity of generational assets currently owned by BlackRock's infrastructure funds.

Speaker Change: When we talk to leaders in industry and governments, they express their desire to build out the data centers, AI, technology, at the same time to decarbonize.

Speaker Change: Our Diversified Infrastructure Fund recently invested in Minova Webhouse, a first-of-its-kind partnership to invest in a hyperscale data center platform in Frankfurt, run entirely on renewable energy.

Unknown Executive: And our plan acquisition of GIP will add a number of global data centers assets in our portfolio. We plan to be a leader in the space, leveraging our expertise to drive capital formation and unique D flow to regenerate return for our clients.

Speaker Change: And our planned acquisition of GIP will add a number of global data centers, assets in our portfolio. We plan to be a leader in this space, leveraging our expertise to drive capital formation and unique deal flow to generate return for our clients.

Laurence Douglas Fink: We plan to be a leader in this space, leveraging our expertise to drive capital formation and unique deal flow to generate return for our clients. For decades now, BlackRock has helped investors benefit from the growth of the capital market, supporting their path to financial security and long-term objectives like retirement. Early in the second quarter, we successfully launched LifePath Paycheck with a subset of committed clients.

Unknown Executive: For decades now, BlackRock has helped investors benefit from the growth of the capital markets, supporting their path to financial security and long-term objectives like retirement. Early in the second quarter, we successfully launched Lightpath Paycheck with a subset of committed clients. We expect additional commitment plan sponsors to fund over future quarters, and we have a very strong late stage pipeline. More than half the assets we manage are related to retirement. Our growth investments to enhance our capabilities and strategy, like active target date and infrastructure underpin, are committed to improving retirement outcomes. BlackRock continues to create more access and connections between long-term investors and capital markets both in the United States and throughout the world.

Speaker Change: For decades now, BlackRock has helped investors benefit from the growth of the capital markets.

Speaker Change: Supporting their path to financial security and long-term objectives like retirement.

Speaker Change: Early in the second quarter, we successfully launched LightPath Paycheck with a subset of committed clients. We expect additional commitment plan sponsors to fund over future quarters and we have a very strong late-stage pipeline.

Laurence Douglas Fink: We expect additional commitments from plan sponsors to fund over future quarters, and we have a very strong late-stage pipeline. Furthermore, more than half of the assets we manage are related to retirees. Our growth investments to enhance our capabilities and strategies like active target date and infrastructure underpin our commitment to improving retirement outcomes. BlackRock continues to create more access and connections between long-term investors and capital markets, both in the United States and throughout the world.

Speaker Change: More than half of the assets we manage are related to retirement.

Speaker Change: Our growth investments to enhance our capabilities and strategies like active target date and infrastructure underpin our commitment to improving retirement outcomes.

Speaker Change: BlackRock continues to create more access and connections between long-term investors and capital markets, both in the United States and throughout the world.

Unknown Executive: Early this quarter, we announced an agreement with the Public Investment Fund, the PIF, to launch an Investment Management Platform in Riyadh, which aims to accelerate the development of our local capital markets and enable foreign investments into the region. We expanded our Geo BlackRock joint venture in India beyond asset management to brokerage and wealth management. And just last month, we joined a new coalition to mobilize infrastructure investments in the Indo-Pacific region alongside GIP and other global investors. In the US, we announced a new opportunity for BlackRock to help expand domestic capital markets by investing in the creation of the Texas Stock Exchange.

Laurence Douglas Fink: Early this quarter, we announced an agreement with the Public Investment Fund, the PIF, to launch an investment management platform in Riyadh, which aims to accelerate the development of our local capital markets and enable foreign investment into the region. We expanded our GEO BlackRock joint venture in India beyond asset management to brokerage and wealth management. And just last month, we joined a new coalition to mobilize infrastructure investments in the Indo-Pacific region alongside GIP and other global investors.

Speaker Change: Early this quarter, we announced an agreement with the Public Investment Fund, the PIF, to launch an investment management platform in Riyadh, which aims to accelerate the development of our local capital markets and enable foreign investments into the region.

Speaker Change: We expanded our Geo-BlackRock joint venture in India beyond asset management to brokerage and wealth management, and just last month we joined a new coalition to mobilize infrastructure investments in the Indo-Pacific region alongside GIP and other global investors.

Laurence Douglas Fink: In the U.S., we announced a new opportunity for BlackRock to help expand domestic capital markets by investing in the creation of the Texas Stock Exchange. The exchange aims to facilitate greater access to and increase liquidity in U.S. equity capital markets for investors. Our investment builds on a history of investing in similar market structure opportunities for the benefit of BlackRock clients. ETS will continue to grow as a technology that provides simple, efficient access to capital markets, making investments easier for clients of all sizes. Our investments over time are driving accelerated momentum across our ETF platform. Second quarter ETF flows of $83 billion were positive across our core equity, strategic, and precision categories.

Speaker Change: In the U.S., we announced a new opportunity for BlackRock to help expand domestic capital markets by investing in the creation of the Texas Stock Exchange. The exchange aims to facilitate greater access and increase liquidity in U.S. equity capital markets for investors.

Unknown Executive: The exchange aims to facilitate greater access and increase liquidity in U.S. equity capital markets for investors. Our investment builds on a history of investing in similar market structure opportunities for the benefit of BlackRock clients. ETS will continue to grow as a technology that provides simple, efficient access to capital markets, making investments easier for clients of all sizes. Our investments over time are driving accelerated momentum across our ETF platform. Second quarter, ETS flows of 83 billion were positive across our core equity, strategic, and precision categories. ETS flows of 150 billion in the first half of 2024 represents our best start to the year in eye-shared history, and are more than double what they were in the first half of last year.

Speaker Change: Our investment builds on a history of investing in similar market structure opportunities for the benefit of BlackRock clients.

Speaker Change: ETS will continue to grow as a technology that provides simple, efficient access to capital markets, making investments easier for clients of all sizes.

Speaker Change: Our investments over time are driving accelerated momentum across our ETF platform.

Speaker Change: Second quarter ETF flows of 83 billion were positive across our core equity, strategic, and precision categories.

Laurence Douglas Fink: ETF flows of $150 billion in the first half of 2024 represent the best start to the year in iShares history and are more than double what they were in the first half of last year. BlackRock leads the ETF industry and flows, and we are also facilitating market expansion. Our Bitcoin ETF reached nearly $20 billion in its first six months and is the third highest grossing exchange-traded product in the industry this year. Three of the five top asset-gathering bond ETFs are iShares, and our active ETFs are growing contributors with $12 billion of net inflows in 2024.

Speaker Change: ETF flows of $150 billion in the first half of 2024 represents a best start to the year in iShares history and are more than double

Unknown Executive: BlackRock leads ETS industry in flows, and we are also facilitating market expansion. Our Bitcoin ETF reached nearly $20 billion in its first six months, and is the third highest grossing exchange-strated product in the industry this year. Three of the five top asset-gabbing bond ETS are eye-shared, and our active ETS are growing contributors with $12 billion in net inflows in 2024. We remain focused on innovating our product offerings, particularly with active ETS, growing bond ETS with extending distribution partnerships to make eye-shared the provider of choice across all well-platforms. In June, we expanded access to our alpha-seeking expertise through the launch of active U.S.

Speaker Change: What they were in the first half of last year.

Speaker Change: BlackRock leads the EHF industry in flows, and we are also facilitating market expansion.

Speaker Change: Our Bitcoin ETF reached nearly 20 billion dollars in its first six months and is the third highest grossing exchange traded product in the industry this year.

Speaker Change: Three of the five top asset gathering bond ETFs are iShares and our active ETFs are growing contributors with 12 billion dollars of net inflows in 2024.

Laurence Douglas Fink: We remain focused on innovating our product offerings, particularly active ETFs, growing bond ETFs with extending distribution partnerships to make iShare the provider of choice across all wealth platforms. In June, we expanded access to our alpha-seeking expertise through the launch of active U.S. equities and high-yield ETFs managed by some of our leading investors. And we're partnering with a number of international banks and brokerage platforms to expand distribution and access to our products.

Speaker Change: We remain focused on innovating our product offerings, particularly with active ETFs. Growing bond ETFs with extending distribution partnerships to make iShares a provider of choice across all wealth platforms.

Speaker Change: In June , we expanded access to our alpha-seeking expertise through the launch of active U.S. equities and high-yield ETFs, managed by some of our leading investors. And we're partnering with a number of international banks and brokerage platforms to expand distribution and access to our products.

Unknown Executive: equities and high yield ETF, mounted by some of our leading investors, and we're partnering with a number of international banks and broker platforms to expand distribution and access to our products. Examples include our relationship with ETF saving plan providers, and our recent selection as a premier partner to invest that. For winning our first plan to serving millions of investors today, Aladdin has been the technological foundation for how we deliver our clients across our platform. Aladdin isn't just the key technology that powers BlackRock. It also powers many of our clients.

Laurence Douglas Fink: Examples include our relationship with ETF savings plan providers and our recent selection as a premier partner to invest in that, for winning our first client to serving millions of investors today. Aladdin has been the technological foundation for how we deliver our clients across our platform. Aladdin isn't just the key technology that powers BlackRock.

Speaker Change: Examples include our relationship with ETF saving plan providers and our recent selection as a premier partner to invest that.

Speaker Change: For winning our first client to serving millions of investors today, Aladdin has been the technological foundation for how we deliver our clients across our platform. Aladdin isn't just the key technology that powers BlackRock, it also powers many of our clients.

Laurence Douglas Fink: It also powers many of our clients. We see clients increasingly using technology investments across the fintech and data ecosystem. We're partnering with clients who are increasingly looking for comprehensive technology solutions across their entire portfolio, from risk analytics, investment management, and accounting capabilities. The need for integrated investment and risk technology as well as whole portfolio views across public and private markets is driving durable ACV growth. Years ago, we anticipated that clients would benefit when alternative investments were evaluated inside a portfolio-level risk management framework.

Unknown Executive: France. We see clients increasingly using the technology investments across the Fintech and data ecosystem. We're partnering with clients who are increasingly looking for comprehensive technology solutions across their entire portfolio, from risk analytics, investment management, and to accounting capabilities. The need for integrated investment and risk technology, as well as whole portfolio views across public and private markets, is driving durable ACV growth. Years ago, we anticipated the clients would benefit when alternative investments were evaluated inside a portfolio-level risk management framework. As allocation to private markets increased, we knew the ability to seamlessly manage portfolios and risk across public and private asset classes and a single platform would be critical.

Speaker Change: We see clients increasingly using the technology investments across the FinTech and data ecosystems.

Speaker Change: We're partnering with clients who are increasingly looking for comprehensive technology solutions across their entire portfolio, from risk analytics, investment management, and to accounting capabilities.

Speaker Change: The need for integrated investment and risk technology as well as whole portfolio views across public and private markets is driving durable ACV growth.

Speaker Change: Years ago we anticipated that clients would benefit when alternative investments were evaluated inside a portfolio level risk management framework.

Laurence Douglas Fink: As allocation to private markets increased, we knew the ability to seamlessly manage portfolios and risk across public and private asset classes on a single platform would be critical. BlackRock invested ahead of these clients' needs, acquired eFront in 2019, and went on to integrate it with Aladdin to deliver a whole portfolio view.

Speaker Change: As allocation to private markets increased, we knew the ability to seamlessly manage portfolios and risk across public and private asset classes on a single platform would be critical.

Unknown Executive: BlackRock invested ahead of these client's needs, a choir e-front in 2019 and going on to integrate it with Aladdin to deliver a whole portfolio view. And our planned acquisition of Prequel will expand our capabilities beyond private markets, investment management, and technology to data. We see a significant runway ahead as private market allocations from our clients will continue to grow alongside their need for an integrated enterprise-level investment technology data and analytics. Much of BlackRock's success and our momentum today has come from anticipating and making calls on what our clients will need as they pursue long-term outcomes like retirement and financial security.

Speaker Change: BlackRock invested ahead of these clients' needs, acquired eFront in 2019, and going on to integrate it with Aladdin to deliver a whole portfolio view.

Laurence Douglas Fink: And our planned acquisition of Preco will expand our capabilities beyond private markets, investment management, and technology to data. We see a significant runway ahead as private market allocations from our clients will continue to grow alongside their need for integrated enterprise-level investment technology, data, and analytics. Much of BlackRock's success and our momentum today has come from anticipating and making calls on what our clients will need as they pursue long-term outcomes like retirement and financial security.

Speaker Change: And our planned acquisition of Precum will expand our capabilities beyond private markets, investment management, and technology to data.

Speaker Change: We see a significant runway ahead as private market allocations from our clients will continue to grow alongside their need for an integrated enterprise-level investment technology data and analytics.

Speaker Change: Much of BlackRock's success and our momentum today

Speaker Change: has come from anticipating and making calls and what our clients will need as they pursue long-term outcomes like retirement and financial security.

Laurence Douglas Fink: We constantly innovate, we constantly evolve, we transform ourselves, and we make sure we deliver for each and every one of our clients. We have spent decades building our global network of relationships.

Unknown Executive: We constantly innovate; we constantly evolve; we transform ourselves and we make sure we deliver for each and every one of our clients. We have spent decades building our global network of relationships of data and analytics integrating technology. And these are the key differentiations to deepening our relationship with clients and accessing unique investment opportunities and partnerships. With our planned acquisition of GIP and frequent and core business strength, BlackRock's capability have never been stronger. We have the most comprehensive platform in the asset management industry integrating across public markets, private markets, and our Aladdin technology. And we are creating a different engineering private markets approach.

Speaker Change: We constantly innovate, we constantly evolve, we transform ourselves, and we make sure we deliver for each and every one of our clients.

Speaker Change: We have spent decades building our global network of relationships of data and analytics integrating technology.

Laurence Douglas Fink: And these are the key differentiations, to deepening our relationship with clients and accessing unique investment opportunities and partnerships, with our planned acquisition of GIP and frequent and core business strength BlackRock's capabilities have never been stronger. We have the most comprehensive platform in the asset management industry, integrating across public markets, private markets, and our Aladdin technology. And we are creating a differentiating private markets approach. We're building what our clients need for success, a skilled private market platform, encompassing investment, workflow through eFront, and data and risk analytics through PreQuest, by bringing together investments, tech, and data across public and private markets.

Speaker Change: And these are the key differentiations.

Speaker Change: to deepening our relationship with clients and accessing unique investment opportunities and partnerships.

Speaker Change: With our planned acquisition of GIP and frequent and core business strength, BlackRock's capability

Speaker Change: have never been stronger.

Speaker Change: We have the most comprehensive platform in the asset management industry, integrating across public markets, private markets, and our Aladdin technology.

Unknown Executive: We're building what our clients need for success, a skilled private market platform encompassing investment, workflow through eFront, and data and risk analytics through Frequent. By bringing together investments, tech, data across public and private markets, we have the opportunity to drive better up portfolio outcomes for investors and open up a diversified higher multiple earnings dreams for our shareholders you. We look forward to delivering strong performance for our clients along differentiated growth, which will be an opportunity for you, our shareholders.

Speaker Change: And we are creating a differentiating private markets approach. We're building what our clients need for success, a skilled private market platform encompassing investment, workflow through eFront, and data and risk analytics through PreQuit.

Speaker Change: by bringing together investments, tech, data across public and private markets

Laurence Douglas Fink: We have the opportunity to drive better portfolio returns for investors and open up a diversified higher multiple earning streams for our shareholders. We look forward to delivering strong performance for our clients alongside differentiated growth, which will be an opportunity for you, our shareholders. Operator, let's open it up for questions. Thank you. At this time, I'd like to remind everyone, in order to ask a question, please press star then the number one on your telephone keypad. When you ask a question, please take your phone off its speaker setting and use your handset to avoid any potential feedback.

Speaker Change: We have the opportunity to drive better up portfolio comes for investors and open up a diversified higher multiple earning streams for our shareholders you.

Speaker Change: We look forward to delivering strong performance for our clients along differentiated growth, which will be an opportunity for you, our shareholders. Operator, let's open it up for questions.

Operator: Operator, let's open it up for questions. Thank you. At this time, I like to remind everyone that in order to ask a question, please press star, the number one on your telephone keypad. If you do ask a question, please take your phone off its speaker setting and use your hands up to avoid it. Any potential feedback? Please let me yourself to one question. If you have a follow-up, please re-enter the queue. We'll pause for just a moment to compile the Q&A roster.

Speaker Change: Thank you. At this time I'd like to remind everyone, in order to ask a question, please press star then the number 1 on your telephone keypad. If you do ask a question, please take your phone off its speaker setting and use your handset to avoid any potential feedback.

Speaker Change: Please limit yourself to one question. If you have a follow-up, please re-enter the queue. We'll pause for just a moment to compile the Q&A roster.

Alex Blostein: Your first question comes from Alex Blostein of Goldman Sachs.

Operator: Please limit yourself to one question. If you have a follow-up, please re-enter the queue. We'll pause for just a moment to compile the Q&A roster. Our first question comes from Alex Blostein of Goldman Sachs. Good morning, Alex. Hey, good morning, Larry.

Laurence Fink: Good morning, Alex. Hey, good morning, Larry.

Speaker Change: Your first question comes from Alex Blostein of Goldman Sachs.

Unknown Executive: Hello, everybody. So lots of optimism on the firm's trajectory for gaining growth. And I heard you guys obviously echoing maybe some of the comments from last quarter. Around strong pipeline and Martin's comments are on premium organic growth. So maybe help contextualize this a little bit more. What do the pipelines look like today? What kind of the timing of some of these conversions that you anticipate what asset classes? And ultimately what that means for the firm's organic base fee growth for the back half of 24. Thanks. Thanks, Alex.

Alexander Blostein: Hello, everybody. Lots of optimism on the firm's trajectory for organic growth, and I heard you guys obviously echoing maybe some of the comments from last quarter around the strong pipeline and Martin's comments around premium organic growth. So maybe help contextualize this a little bit more. What do the pipelines look like today? What is the timing of some of these conversions that you anticipate, what asset classes, and ultimately what that means for the firm's organic base fee growth for the back half of 24? Thanks.

Alexander Blostein: Good morning, Alex.

Alexander Blostein: Hey, good morning, Larry. Hello everybody. So lots of optimism on the firm's trajectory for organic growth and I heard you guys obviously echoing maybe some of the comments from last quarter around strong pipeline and Martin's comments around premium organic growth. So maybe help contextualize this a little bit more. What do the pipelines look like today? What kind of the timing of some of these conversions that you anticipate? What asset classes?

Alexander Blostein: and ultimately what that means for the firm's organic base feed grill for the back half of 24. Thanks.

Martin Small: Thanks, Alex. I'll start, and I think Larry will add some color, but Q2 organic-based feed growth, as I mentioned, was 3%. We had that typically seasonally slow start of the year in Q1, so 3% is just about at our target for where we thought we'd be in May and June. We really see excellent momentum, and I think you picked up on that in Larry's comments. But I'd say on the measures we look at for feed growth velocity, sort of last three months, last six months, last 12 months, organic-based feed growth, Alex, keeps going up by a percentage point.

Unknown Executive: I'll start, and I think Larry will add some color, but Q2 organic base fee growth, as I mentioned, was 3%. We had that typically seasonally slow start of the year in Q1. So 3% it's just about at our target for where we thought we'd be in May and June. We really see excellent momentum. And I think you got that in Larry's comments. But I'd say on the measures we look at for fee growth velocity, sort of last three months, last six months, last 12 months, organic base fee growth, Alex keeps grinding up by a percentage point is 1 to 2 and now 3%.

Alexander Blostein: Thanks, Alex. I'll start and I think Larry will add some color, but Q2 organic base feed growth, as I mentioned, was 3%.

Larry: We had that typically seasonally slow start of the year in Q1, so 3%, it's just about at our target for where we thought we'd be in May and June . We really see excellent momentum, and I think you got that in Larry's comments.

Larry: But I'd say on the measures we look at for feed growth velocity, sort of last three months, last six months, last 12 months, organic-based feed growth, Alex, keeps grinding up by a percentage point. It's one to two and now three percent.

Martin Small: It's 1% to 2%, and now 3%. And we really feel that markets are on this precipice of a reset. Rate cuts should normalize bond markets.

Unknown Executive: And we really feel that markets are on this precipice of a reset. You know, rate cuts should normalize bond markets. They should normalize fixed income allocations. They should fuel equities. They should really drive flows. We've been a really meaningful app performer in these re risking periods. If I look at sort of previous election cycles, you know, rate reductions, BlackRock had huge upside capture in 17, 18, 21. We were well above our through-the-cycle targets for organic growth in those periods. And I think when we look at growth, it's going to come from these strong structural growers.

Larry: And we really feel that markets are on this precipice of a reset, you know, rate cuts should normalize bond markets, they should normalize fixed income allocations, they should fuel equities, they should really drive flows.

Martin Small: They should normalize fixed income allocations. They should fuel equities. They should really drive flows.

Martin Small: We've been a really meaningful outperformer in these re-risking periods. If I look at sort of previous election cycles, rate reductions, BlackRock had huge upside capture in 17, 18, 21. We were well above our through-the-cycle targets for organic growth in those periods.

Larry: We've been a really meaningful outperformer in these re-risking periods. If I look at previous election cycles, rate reductions, BlackRock had huge upside capture in 17, 18, 21. We were well above our through-the-cycle targets for organic growth in those periods.

Martin Small: And I think when we look at growth, it's going to come from these strong structural growers, and those things grow even faster in supportive markets. ETFs, models, and Aladdin are expanding their private markets business. We're closing in on and growing our EWM by over $100 billion in private markets with our planned GIP acquisition, and we see that as a huge growth opportunity. So we'd expect those engines to really capture additional growth that hits our targets. And even on the most modest growth assumptions, I think it is possible for beta in markets to really drive significant, differentiated, durable earnings and multiple expansion. We look at this all the time as a team.

Unknown Executive: And those things grow even faster in support of markets. It's ETFs, models, Aladdin are expanding private markets business. We're closing in and growing our EWAM by over 100 billion in private markets with our planned GIP acquisition. We see that as a huge growth opportunity. So we'd expect those engines to really capture additional growth that hits our targets. And even on the most modest growth assumptions, I think for beta and markets to really drive, you know, significant differentiated durable earnings and multiple expansion. We look at this all the time as a team. We've achieved our premium organic base to be growth target of 5% on average over the last five years.

Larry: And I think when we look at growth, it's going to come from these strong structural growers.

Larry: and those things grow even faster in supportive markets.

Larry: ETFs, Models, Aladdin, are expanding private markets business. We're closing in and growing our EOM by over $100 billion in private markets with our planned GIP acquisition, and we see that as a huge growth opportunity.

Larry: So we'd expect those engines to really capture additional growth that hits our targets.

Larry: And even on the most modest growth assumptions, I think, for beta and markets to really drive, you know, significant, differentiated, durable earnings and multiple expansion, I, we look at this all the time as a team. We've achieved our premium organic base feed growth target of 5% on average over the last 5 years.

Martin Small: We've achieved our premium organic-based feed growth target of 5% on average over the last five years, and BlackRock has a lot of positive leverage on re-risking periods in the market. That gives us a great deal of conviction about the path to 5% and the back half of 24. And also our longer-term ambition, I think, to be at 5% or better as we grow private markets and technology. Alex, let me just add, um... A little more holistic texture.

Unknown Executive: And BlackRock has a lot of positive leverage to re-risking periods in the market that gives us a great deal of conviction about the path to 5% in the back half of 24. And also our longer term ambition. I think to be at 5% or better as we grow private, private markets and technology.

Larry: And BlackRock has a lot of positive leverage to re-risking periods in the market. That gives us a great deal of conviction about the path to 5% in the back half of 24, and also our longer-term ambition, I think, to be at 5% or better as we grow private markets and technology.

Laurence Fink: Now let me just add a little more holistic texture. We have never had more dynamic conversations than we've had now across the world, across products. I truly believe our positioning in ice shares today has never been more robust. Our delivery now of active ETFs are innovation in crypto. having more precision type products when there's, I would say, more fragmentation going on in the world. Allowing them to have more conversations with differentiated products for our clients. But the feedback now, you know, over six months of feedback of our planned acquisition of GIP and the conversations we're having with some of the most sophisticated investors worldwide, has never been more robust about how we could partner, how we could be trying to develop more things.

Speaker Change: Alex, let me just add

Laurence Douglas Fink: We have never had more dynamic conversations than we have now across the world, across products. I truly believe our positioning in iShares today has never been more robust. Our delivery now of active ETFs, and our innovation in crypto. Having more precision type products when there's, I would say, more fragmentation going on in the world allows us to have more conversations with differentiated products for our clients. But the feedback now, close, you know, over six months of feedback on our planned acquisition of GIP and the conversations we're having with some of the most sophisticated investors worldwide have never been more robust about how we could partner, how we could be trying to develop more things. And in my prepared remarks, I talked about the confluence of power and AI and data centers.

Speaker Change: A little more of a holistic texture.

Speaker Change: We have never had more dynamic conversations than we've ever had now across the world, across products.

Speaker Change: I truly believe our positioning in iShares today has never been more robust.

Speaker Change: Our delivery now of Active ETS, our innovation in crypto.

Speaker Change: Having more precision type products when there's, I would say, more fragmentation going on in the world allows us to have more conversations with differentiated products for our clients.

Speaker Change: But the feedback now, close, you know, over six months of feedback of our planned acquisition of GIP and the conversations we're having with with some of the most sophisticated investors worldwide.

Speaker Change: has never been more robust about how we could partner.

Laurence Fink: And in my prepared remarks, I talked about the conformance of power and AI and data centers. And I believe this is going to be one of the world's biggest growth engines. As we start trying to develop AI for everyone, AI, not just for the big powerful organizations, but AI utilization for everybody, for every country in the world. And it's going to require just, we're talking trillions of dollars of investments. And our conversations with a haper scalers, our conversations with governments, our conversations with the chiller suppliers, the co-generation suppliers. The opportunities we have in infrastructure is way beyond I've ever imagined, even just seven months ago, and we were contemplating the transaction and formalizing it.

Speaker Change: How are we going to be trying to develop more things? And in my prepared remarks, I talked about the confluence of power and AI and data centers. And I believe this is going to be one of the world's biggest growth engines.

Laurence Douglas Fink: And I believe this is going to be one of the world's biggest growth engines as we start trying to develop AI for everyone, AI not just for the big, powerful organizations but AI utilization for everybody, for every country in the world. And it's going to require trillions of dollars of investment. And our conversations with the hyperscalers, our conversations with governments, our conversations with the chiller suppliers, the cogeneration suppliers, the opportunities we have in infrastructure are way beyond what I'd ever imagined, even just seven months ago when we were contemplating the transaction and formalizing it.

Speaker Change: As we start trying to develop AI for everyone, AI not just for the big powerful organizations, but AI utilization.

Speaker Change: for everybody.

Speaker Change: for every country in the world and is going to require just we're talking trillions of dollars of investments

Speaker Change: And our conversations with the hyperscalers, our conversations with governments, our conversations with the chiller suppliers, the cogeneration suppliers.

Speaker Change: The opportunity we have in infrastructure is way beyond I've ever imagined, even just seven months ago when we were contemplating the transaction and formalizing it.

Laurence Fink: Our conversations with investors from the most sophisticated, sovereign wealth funds to our conversations with the RIA channels. The need for data and analytics across the private sector is only going to be growing. And no firm, no firm right now has the position that we have with Aladdin, eFront, and now a frequent that we could insist more and more investors. So we're taking a differentiated approach that obviously we've done that in the past. And I would just like to just say that, you know, and I sit in my prepared remarks. We do these things pretty boldly.

Laurence Douglas Fink: From our conversations with investors from the most sophisticated sovereign wealth funds to our conversations with the RIA channels, the need for data and analytics across the private sector is only going to be growing. And no firm, no firm right now has the position that we have with Aladdin, eFront, and now with PreQuint so that we can assist more and more investors. So we're taking a differentiated approach that, obviously, we have done in the past. And I would just like to say that, you know, and I said in my prepared remarks, we do these things pretty boldly.

Speaker Change: Our conversations with investors from the most sophisticated sovereign wealth funds

Speaker Change: to our conversations with the, you know, the the RIA channels. The need for data and analytics across the private sector is only going to be growing and no firm

Speaker Change: No firm right now has the position that we have with Aladdin.

Speaker Change: eFront, and now with PreQuint that we could assist more and more investors. So we're taking a differentiated approach that obviously we've done that in the past.

Speaker Change: And I would just like to say that, you know, and I said in my prepared remarks, we do these things pretty boldly. When we bought E-Front, everybody thought that was a big price, and yet, you know, we've doubled ACV.

Laurence Fink: When we bought eFront, everybody thought there was a big price, and yet, you know, we've doubled ACV. Martin talked about a period where we crossed over $100 billion in AUM. I do believe we've talked about AI and BlackRock AI for investments. One of the big opportunities I see is going to be systematic equities where we've had now a 10-year track record of approximately 90% outperformance. And I do believe that we saw now, you know, close to about $5 billion of flows. I believe this is only going to be accelerating now. As more and more investors are looking, how can you use AI for investments?

Laurence Douglas Fink: When we bought E-Front, everybody thought there was a high price and yet, you know, we've doubled ACV. Martin talked about a period when we crossed over $100 billion in AUM. I do believe, you know, we've talked about AI and BlackRock AI for investors. One of the big opportunities I see is going to be systematic equities, where we now have a 10 year track record of approximately 90% outperformance. And I do believe that we have now seen close to about $5 billion of flows. I believe this is only going to be accelerating now. As more and more investors are looking, how can you use AI for investments?

Martin: Martin talked about Aperio, where we crossed over $100 billion in AUM.

Martin: I do believe, you know, we've talked about AI at BlackRock AI for Investments. One of the big opportunities I see is going to be systematic equities, where we've had now a 10-year track record of approximately 90% outperformance.

Martin: And I do believe that we saw now, you know, close to about $5 billion of flows.

Martin: I believe this is only going to be accelerating now as more and more investors are looking at how can you use AI for investments.

Laurence Douglas Fink: And we have one of the finest platforms utilizing AI and big data. So I'm very excited about the high growth potential we have in more and more high-fee products, but I'm just as excited about how we could provide better products across the board utilizing our ETF platform. Your next question comes from Craig Siegenthaler with Banks America. Good morning, Craig. Hey, good morning, Larry.

Unknown Executive: And we have one of the finest platforms utilizing AI using utilizing big data. So I'm very excited about the high growth potential we have in more and more high-fee products. But I'm just as excited about how we can provide better products across the board utilizing our ETF platform.

Martin: And we have one of the finest platforms utilizing AI, using, utilizing big data. So I'm very excited about the high growth potential we have in more and more high fee products, but I'm just as excited about how we could provide better.

Martin: Products across the board utilizing our ETF platform.

Craig Siegenthaler: Your next question comes from Craig Siegenthaler with Bank of America. Good morning, Craig. Hey, good morning, Larry. So our question is on the outlook for technology services revenue growth. With Tech ACV growth at 10%, which is the low end of your long-term target range, we want to see if you have visibility into the future trajectory given the timing of larger contract winds within your existing pipeline. In conversations of clients, and now that you have pre-quin, how will that also impact the 10 to 15% target in 2025 after the deal closes? Thanks, Craig.

Craig William Siegenthaler: So our question is on the outlook for technology services revenue growth. With tech ACV growth at 10%, which is the low end of your long-term target range, we want to see if you have visibility into the future trajectory, given the timing of larger contract wins within your existing pipeline and conversations with clients. And now that you have pre-quin, how will that also impact the 10 to 15% target in 2025? Thanks, Craig. I'll start, and I know Larry will add more.

Speaker Change: Your next question comes from Craig Siegenthaler with Banks America.

Craig William Siegenthaler: Good morning, Craig.

Craig William Siegenthaler: Hey, good morning, Larry.

Craig William Siegenthaler: So our question is on the outlook for technology, services, revenue growth.

Speaker Change: with tech ACV growth at 10% which is the low end of your long-term target range.

Speaker Change: We want to see if you have visibility into the future trajectory.

Speaker Change: Given the timing of larger contract wins within your existing pipeline.

Speaker Change: and conversations with clients. And now that you have pre-quin, how will that also impact the 10 to 15% target in 2025 after the deal closes?

Martin Small: Technology is just the main engine for investment performance, right? It's the main engine to drive operating leverage. It's what great firms, I think, are using to have great client experiences that fuel growth. And we see a very consistent growth rate in how clients are investing in more technology. I can tell you as a CFO, if I could invest in tech spend, I would. Generally, in the marketplace, there's just an acceleration in tech spend across the board. But, importantly, clients are trying to retire this kind of spaghetti patchwork of legacy systems they have. They want to leverage fewer providers.

Unknown Executive: I'll start, and Larry will add, technology; it's just the main engine for investment performance, right? It's the main engine to drive operating leverage. It's what great firms I think are using to have great client experiences at fuel growth. And we see a very consistent growth rate in how clients are investing in more technology. I can tell you, as a CFO, if I could invest in tech spend, I would. Generally, in the marketplace, there's just an acceleration and tech spend across the board. But I think, importantly, clients are trying to retire this kind of spaghetti patchwork of legacy systems they have.

Speaker Change: Thanks, Craig. I'll start, and I know Larry will add.

Speaker Change: Technology, it's just the main engine for investment performance, right? It's the main engine to drive operating leverage.

Speaker Change: It's what great firms, I think, are using to have great client experiences at Fuel Growth.

Speaker Change: And we see a very consistent growth rate in how clients are investing in more technology. I can tell you as a CFO , if I could invest in tech spend, I would, generally in the marketplace. There's just an acceleration in tech spend across the board. But I think importantly, clients are trying to retire this kind of spaghetti patchwork of legacy systems they have. They want to leverage fewer providers. They want to do deep integrations across the FinTech and data ecosystems. They want to have a whole portfolio view across public and private markets.

Unknown Executive: They want to leverage fewer providers. They want to do deep integrations across the thin tech and data ecosystems. They want to have a whole portfolio of you across public and private markets. That's always been the thesis of the Aladdin platform. It's how we use it at BlackRock and with our external clients. It was what drove the integration of E front in Aladdin. And now with Aladdin E front and frequent, we think we have even more opportunities to benefit new clients. And the pipeline is very strong. You know, tech services revenue was up 10% year on year, 5% sequentially.

Martin Small: They want to do deep integrations across the FinTech and data ecosystems. For example, they want to have a whole portfolio view across public and private markets. That's always been the thesis of the Aladdin platform, and it's how we use it at BlackRock and with our external clients. It was what drove the integration of eFront and Aladdin. And now, with Aladdin eFront and Prequin, we think we have even more opportunities to benefit new clients, and the pipeline is very strong. Tech services revenue was up 10% year on year and 5% sequentially.

Speaker Change: You know, that's always been the thesis of the Aladdin platform. It's how we use it at BlackRock and with our external clients.

Speaker Change: It was what drove the integration of E-Front in Aladdin, and now with Aladdin E-Front and PreQuint, we think we have even more opportunities to benefit new clients, and the pipeline is very strong. Tech services revenue was up 10% year-on-year, 5% sequentially. As we continue to get the big assignments and new sales from the prior years going live, we expect those revenue numbers to stay strong.

Unknown Executive: You know, as we continue to get the big assignments and new sales from the prior years going live, we expect those revenue numbers to stay strong. Our ACV target credits; it's over the long term. We've achieved it on average since we first started disclosing ACV in 2020. And we think we have a real opportunity to apply and drive indexing principles using frequent Aladdin E front together across tech data and investments. Prequins expected to accelerate our plan technology services ACV within our target range. It's going to increase current ACV dollars by about 15%. So we'll continue to target low to mid-teens growth and tech services ACV.

Martin Small: As we continue to get the big assignments and new sales from the prior years going live, we expect those revenue numbers to stay strong. Our ACB target, Craig, is for the long term. We've achieved it on average since we first started disclosing ACB in 2020.

Craig William Siegenthaler: Our ACB target, Craig, it's over the long term. We've achieved it, on average, since we first started disclosing ACB in 2020. And we think we have a real opportunity to apply and drive indexing principles using pre-QIN, ALADD, and EFRNT together across tech data and investments.

Martin Small: And we think we have a real opportunity to apply and drive indexing principles using Prequin, Aladdin, and eFront together across tech data and investments. Prequin's expected to accelerate our planned technology services business, ACV, within our target range. It's going to increase current ACV dollars by about 15%. So we'll continue to target low to mid-teens growth in tech services ACV. And we'd expect bringing together Aladdin, Efron, and Prequin to be the way that we get there over the next year.

Craig William Siegenthaler: Prequin is expected to accelerate our planned technology services ACV within our target range. It's going to increase current ACV dollars by about 15%. So we'll continue to target low to mid-teens growth in tech services ACV, and we'd expect bringing together Aladdin E-Front and Prequin to be the way that we can get there over the next few years.

Laurence Fink: And we'd expect bringing together Aladdin E front and frequent to be the way that we can get there over the next few years. Correct, but our line of sight. We are in conversations right now with probably the broadest, largest potential Aladdin assignments ever had. So the conversations we're having are with broad, deep conversations than we've ever had. And much would have to do like, you know, the serious big giant conversation we're having right now are based on the ability that Aladdin can provide both public and private data analytics. And to we deliver. There are many examples where people have made big, broad promises, and there were years.

Martin Small: Craig, but our line of sight, we are in conversations right now with probably the broadest, largest... a potential Aladdin assignment ever had. So the conversations we're having are with broad, deep conversations than we've ever had. And much of it has to do, you know, the serious, big, giant conversation we're having right now is based on the ability that Aladdin can provide both public and private data analytics. And two, we do. There are many examples where people have made big, broad promises, and they haven't kept them for years.

Craig William Siegenthaler: Craig, but our line of sight, we are in conversations right now with probably the broadest, largest

Craig William Siegenthaler: A potential Aladdin assignment ever had. So the conversations we're having are with broad, deep conversations than we've ever had.

Craig William Siegenthaler: And much of it has to do, you know, the serious big giant conversation we're having right now are based on the ability that Aladdin can provide both public and private data analytics.

Laurence Douglas Fink: I want to underline years of delay in the implementation. We have a deep history of delivering on time. That doesn't mean it doesn't take a long time to do it, but we have a huge reputation because of our expertise in delivering the technology platform on time. These are very big and complex, and we do it very well.

Craig William Siegenthaler: and to We Deliver.

Craig William Siegenthaler: There are many examples where people have made big, broad promises and they were years. I want to underline, years delayed in the implementation.

Unknown Executive: I want to underline years delayed in the implementation.

Laurence Fink: Austin. We have a deep history of delivering on time. That doesn't mean it doesn't take a long time to do it, but we are, we have a huge reputation because of our expertise in delivering the technology platform on time. These are very big and complex when we do it very well. And now, with a combination of Frequent alongside eFront and Aladdin, we have probably the biggest opportunity we've had in 10 years or more in delivering even a more differentiated technology and analytical platform. And by doing so, it could really then expand our entire platform in terms of benchmarking and indexing.

Craig William Siegenthaler: We have a deep history of delivering on time. That doesn't mean it doesn't take a long time to do it, but we have a huge reputation because of our expertise in delivering the technology platform on time.

Craig William Siegenthaler: These are very big and complex and we do it very well. And now with a combination of frequent...

Laurence Douglas Fink: And now, with a combination of frequent... Alongside Ephraim and Aladdin, we have probably the biggest opportunity we've had in 10 years or more in delivering even a more differentiated Technology and Analytical Platform. And by doing so, it could really expand our entire platform in terms of benchmarking and indexing. As you know, that's been a province of other organizations, historically, asset managers, who were precluded by the SEC from being in this business. This is why we were never in this business.

Craig William Siegenthaler: Alongside Ephraim and Aladdin, we have probably the biggest opportunity we've had in 10 years or more in delivering even a more differentiated

Craig William Siegenthaler: Technology and Analytical Platform. And by doing so, it could really then expand our entire platform and towards the benchmarking and indexing.

Laurence Fink: As you know, that's been a province of other organizations, historically asset managers who were precluded by the SEC to be into this business. This is why we were never in this business. Asset management firms can now be in it, as you know, and we create some type of customized index. But we look at this as a unique opportunity now, or BlackRock, with our position, with our role, we are going to do this with the same, I would say, industrial fortitude as we did in the early years when we were just an Asset Manager needing analytics, so we did it ourselves.

Craig William Siegenthaler: As you know, that's been a province of other organizations, historically asset managers who were precluded by the SEC to be into this business. This is why we were never in this business.

Laurence Douglas Fink: Asset management firms can now be in it, as you know, and we create some type of customized index. But we look at this as a unique opportunity now for BlackRock, with our position, and our role. We are going to do this with the same, I would say, industrial fortitude as we did in the early years when we were just an asset manager needing risk analytics, so we did it ourselves. And then we were so proud of what we had done ourselves, we offered it in the 1990s to our clients.

Craig William Siegenthaler: Asset Management Firms can now be in it, as you know, and we create some type of customized index. But we look at this as a unique opportunity now for BlackRock.

Craig William Siegenthaler: with our position, with our role, we are going to do this with the same, I would say, industrial fortitude as we did in the early years when we were just an asset manager needing risk analytics, so we did it ourselves.

Unknown Executive: And then we are so proud of what we did ourselves; we offered it in the 90s for clients. We are going to do this in the profit markets. And we're going to, you know, this is going to take time, but I think we have a real ability to provide a very differentiated platform in this. And this is something of sheer excitement. And if we succeed, we'll add a whole new revenue line on BlackRock's revenue side. Thanks.

Craig William Siegenthaler: And then we are so proud of what we did ourselves. We offered it in the 90s to our clients. We are going to do this in the private markets.

Laurence Douglas Fink: We are going to do this in the private market. And we're going to, you know, this is going to take not a, you know, this is going to take time, but I think we have a real ability to provide a very differentiated platform for this. And this is something of sheer excitement. And if we succeed with this, we'll add a whole new revenue line on BlackRock's revenue side. Thanks. Your next question comes from Michael Cyprys with Morgan Stanley. Hey, good morning, Larry.

Craig William Siegenthaler: And we're going to, you know, this is going to take not a, you know, this is going to take time, but I think we have a real ability.

Craig William Siegenthaler: to provide a very differentiated platform in this. And this is something of sheer excitement. And if we succeed, this will add a whole new revenue line on BlackRock's revenue side. Thanks.

Michael Cypress: Your next question comes from Michael Cypress with Morgan Stanley.

Speaker Change: Your next question comes from Michael Cyprys with Morgan Stanley .

Laurence Fink: Hi, good morning, Larry. Just a question on the alt-business and GIP with the deal expected to close in the third quarter. Can you just talk about your expectations for flows there in the infrastructure space? What strategies are you in the market raising or could be in the market raising over the next 12 months? And maybe talk about some of the steps that you may be able to take to bring some new products to the marketplace, including extending into the private wealth channel. Great question. Thank you. Well, obviously, you know, we are doing whatever we legally can in terms of making sure that we are making sure that there are two operating entities until we get legal approvals and we close.

Michael J. Cyprys: Just a question on the alts business and GIP, with the deal expected to close in the third quarter. Can you just talk about your expectations for flows there in the infrastructure space? What strategies are you in the market raising or could be in the market raising over the next 12 months? And maybe talk about some of the steps that you may be able to take to bring some new products to the marketplace, including extending it to the private wealth channel. Great question!

Speaker Change: Hey, good morning, Larry.

Mike: Hi Mike, just a question.

Mike: Hey, just a question on the alts business and GIP with the deal expected to close in the third quarter. Can you just talk about your expectations for flows there in the infrastructure space? What strategies are you in the market raising or could be in the market raising over the next 12 months?

Mike: and maybe talk about some of the steps that you may be able to take to bring some new products to the marketplace.

Laurence Douglas Fink: Thank you. Well, obviously, you know, we are doing whatever we legally can in terms of making sure that we are making sure that they're two operating entities until we get legal approvals and we close. But that being said, BlackRock is having an incredible conversation. G.I.P.

Mike: Including and extending it to the Private Wealth Channel.

Speaker Change: Great question. Thank you. Well, obviously, you know, we are doing whatever we legally can in terms of making sure that we are that we are Making sure that they're two operating entities until we get legal approvals and we close but that being said

Laurence Fink: But that being said, BlackRock is having incredible conversations. GIP is having incredible conversations. We have business integration fees, which we're allowed to do. And the enthusiasm between our team and their teams have to are way beyond our imagination. You know, it just feels so fantastic right now between our organizations and the opportunity we have. As we said, we expect this to be announced in the third quarter. Hopefully, later in the third quarter, we have other announcements of things that we could be talking about. But I'm not really permitted to talk about what are the deals; one of the things you're doing.

Laurence Douglas Fink: 's having incredible conversations. We have business integration meetings, which we're allowed to do, and the enthusiasm between our team and their teams is way beyond our imagination. This feels so fantastic right now between our organizations and the opportunity we have. As we said, we expect this to be announced in the third quarter. Hopefully, later in the third quarter, we have other announcements of things that we could be talking about. But I'm not really permitted to talk about the deals, what we're doing.

Speaker Change: is having incredible conversations.

Speaker Change: G.I.P.'s having incredible conversations.

Speaker Change: We have business integration meetings which we're allowed to do and the enthusiasm between our team and their teams are way beyond our imagination. This feels so fantastic right now between our organizations and the opportunity we have.

Speaker Change: As we said, we expect this to be announced in the third quarter. Hopefully later in the third quarter, we have other announcements of things that we could be talking about, but I'm not really permitted to talk about what are the deals, what are the things we're doing.

Laurence Fink: What I need to be just showing you is our incredible enthusiasm that what we have and the opportunities we have. And I do believe we will have post closing some amazing opportunities, and then, therefore, some amazing announcements.

Laurence Douglas Fink: What I need to be just showing you is our incredible enthusiasm for what we have and the opportunities we have. And I do believe we will have, post-closing, some amazing opportunities, and then, therefore, Your next question comes from Bill Katz with TD Cowan. Okay, thank you very much for taking the question. Good morning, everybody, and thank you for your opening comments. Just coming back to the opportunity for pre-quint, and you sort of think through the evolution of the private markets, how do you sort of see the product evolution, and is there a pathway here for ETFs, given the underlying illiquid nature of the investments? Thank you.

Speaker Change: Need to be just showing you is our incredible enthusiasm That what we have and the opportunities we have and I do believe we will have Post closing some amazing opportunities and then therefore some amazing announcements

Unknown Executive: Smith Smith.

Bill Katz: Your next question comes from Bill Katz with TD Cowan. Good morning. Good morning, everybody, and thank you for opening comments. Just coming back to the opportunity for frequent, and you sort of think through the evolution of the private markets. How do you sort of see the product evolution? And is there a pathway here for ETFs, giving the underlying liquid nature of the investments? Thank you. Thanks, Bill.

Speaker Change: Your next question comes from Bill Katz with TD Cowen.

Speaker Change: Okay, thank you very much for taking the question. Good morning, everybody, and thank you for your opening comments.

Speaker Change: Just coming back to the opportunity for pre-quint

William Raymond Katz: And you sort of think through the evolution of the private markets. How do you sort of see the product evolution? And is there a pathway here for ETFs given the underlying illiquid nature of the investments? Thank you. Transcribed by https://otter.ai

William Raymond Katz: Thanks, Bill. So we're extremely excited about this PreQuin transaction. We think it really unlocks a whole new segment of growth for our clients, and we think it unlocks a whole new data services segment for BlackRock. And we see a real opportunity to grow PreQuin by connecting it to our complementary Aladdin and eFront capabilities, as well as obviously, we have a lot of client relationships and significant distribution reach. We'll continue to offer PreQuin Pro and the data products as standalones.

Unknown Executive: So we're extremely excited about this frequent transaction. We think it really unlocks a whole new segment of growth for our clients. And we think it unlocks a whole new data services segment for BlackRock. And we see really the opportunity to grow frequent by connecting it with our complimentary Aladdin and E front capabilities, as well as obviously we have a lot of client relationships and significant distribution reach. We'll continue to offer frequent pro and the data products as standalone.

William Raymond Katz: Thanks, Bill. So we're extremely excited about this frequent transaction. We think it really unlocks a whole new segment of growth for our clients.

William Raymond Katz: and we think it unlocks a whole new data services segment for BlackRock.

William Raymond Katz: And we see really the opportunity to grow Prequin by connecting it with our complementary Aladdin and E-front capabilities.

William Raymond Katz: As well as, obviously, we have a lot of client relationships and significant distribution reach. We'll continue to offer PreQuint Pro and the data products as standalones.

Laurence Fink: I think there's really three things that we're focused on here in driving a successful frequent transaction. The first is simply driving more sales, building out comprehensive fund deal level databases, and really integrating data and workflow into a unified platform that better serves clients. The second is by innovating and launching new data products. I think it's fairly remarkable when you think about the public markets; you think about this symbiotic relationship that risk models and indexes and data have done to create public market indexing, benchmarking, asset allocation. All of those opportunities are ahead of us in the private markets by bringing together risk models, benchmarks, and investable indices.

Martin Small: I think there are really three things that we're focused on here in driving a successful PreQuin transaction. The first is simply driving more sales, building out a comprehensive fund deal-level database, and really integrating data and workflow into a unified platform that better serves clients. The second is by innovating and launching new data products.

William Raymond Katz: I think there's really three things that we're focused on here in driving a successful pre-quint transaction. The first is simply driving more sales, building out comprehensive fund deal level databases, and really integrating data and workflow into a unified platform that better serves clients.

William Raymond Katz: The second is by innovating and launching new data products.

Martin Small: I think it's fairly remarkable when you think about the public markets; think about this symbiotic relationship that risk models, indexes, and data have created to create public market indexing, benchmarking, and asset allocation. All of those opportunities are ahead of us in the private markets by bringing together risk models, benchmarks, and investable indices. We think this opportunity to index private markets is really one of the most attractive that we've had in the history of BlackRock. Last, we have the ability to drive a lot of scale. We have data factories. PreQuin has data factories.

William Raymond Katz: I think it's fairly remarkable when you think about the public markets.

William Raymond Katz: You think about this symbiotic relationship that risk models and indexes and data have done to create public market indexing, benchmarking, asset allocation. All of those opportunities are ahead of us in the private markets by bringing together risk models, benchmarks, and investable indices. We think this opportunity to index the private markets is really one of the most attractive that we've had in the history of BlackRock.

Unknown Executive: We think this opportunity to index the private markets is really one of the most attractive that we've had in the history of BlackRock. And last, we have the ability to drive a lot of scale. We have data factories; frequent has data factories, not the primary rationale for the transaction, but we really think that we can drive profitable growth, increase scale and efficiency by making this a seamless operating organization. We've had a really good reaction to the transaction from GPs, from LPs, from service providers, all of which are strong, enthusiastic, frequent clients. They're excited about the opportunity to bring together the E front frequent data sets.

Martin Small: It's not the primary rationale for the transaction, but we really think that we can drive profitable growth, increased scale, and efficiency by making this a seamless operating organization. We've had a really good reaction to the transaction from GPs, from LPs, from service providers, all of whom are strong, enthusiastic PreQuin clients. They're excited about the opportunity to bring together the eFront and PreQuin data sets.

William Raymond Katz: And last...

William Raymond Katz: We have the ability to drive a lot of scale. We have data factories, PreQuint has data factories. It's not the primary rationale for the transaction, but we really think that we can drive profitable growth, increase scale and efficiency by making this a seamless operating organization. We've had a really good reaction to the transaction from GPs, from LPs, from service providers, all of which who are strong, enthusiastic PreQuint clients.

Unknown Executive: And so we think there's a lot of great opportunities here to continue to grow.

William Raymond Katz: They're excited about the opportunity to bring together the E-Front and PreQuint datasets. And so we think there's a lot of great opportunities here to continue to grow, and we're looking forward to closing the PreQuint transaction before the end of the year.

Martin Small: We think there are a lot of great opportunities here to continue to grow. We're looking forward to closing the PreQuin transaction before the end of the year. And I would just add one more point to that.

Unknown Executive: And we're looking forward to closing the frequent sans action before the end of the year.

Laurence Fink: I would just add one more point to that. The inquiries that we've had from big vendors, from exchanges, from different organizations about how can we take what a Latin frequent and E front has. How can we make that, and how are we going to be able to distribute that and utilize that. It is a great sign that, you know, the ecosystem sees the opportunity that we have. And I don't, I think it was very clear that because of we have E front and a lot, and we were just in a very unique position to take this and then add it to it.

Laurence Douglas Fink: The inquiries that we've had from big vendors, from exchanges, from different organizations about how we can take what Aladdin Frequent and E-Front have, how can we make that, you know, and how are we going to be able to distribute that and utilize that, is a great sign that, you know. The ecosystem sees the opportunity that we have, and I think it was very clear that, because we have E-Front and Aladdin, we were just in a very unique position to take this and add it to it. And I think this is one of the real, real strengths of BlackRock. And now we've got to actually, obviously, close it, and we've got to execute upon it.

Speaker Change: I would just add one more point to that. The inquiries that we've had from big vendors

Speaker Change: and Chris Chappell. Thank you.

Speaker Change: from exchanges, from different organizations about how can we take what Aladdin, Frequent, and E-Front has, how can we make that, how can we, you know, how are we going to be able to distribute that and utilize that?

Speaker Change: is a great sign that you know

Speaker Change: The ecosystem sees the opportunity that we have.

Speaker Change: And I don't I think

Speaker Change: It was very clear that because of

Speaker Change: We have E-Front and Aladdin. We were just in a very unique position to take this and add it to it. And I think this is one of the real strengths of BlackRock. And now we've got to close it, and we've got to execute upon it.

Laurence Fink: And I think this is one of the real, real strengths of BlackRock. And now we got to exit; obviously, we got to close it, and we got to execute upon it.

Laurence Fink: But I'm, as I said earlier, this is something that we can really be transformational and really change the whole foundation of public and private markets. If we do what we did for public markets with Aladdin and data, what we did for public markets with ETFs and I share is if we do that and transform more and more private products into more retail products using our data and analytics, it will transform the capital markets. So that's that's something that BlackRock has been proud of, how we've moved the capital markets, and this is just another step for us, how we could be added into the global capital markets.

Laurence Douglas Fink: As I said earlier, this is something that we can really be transformational and really change the whole foundation of public and private markets. And if we do what we did for public markets with Aladdin and data, what we did for public markets with ETFs and iShares, if we do that and transform more and more private products into more retail products using our data and analytics, it will transform capital markets. That's something that BlackRock has been proud of how we've moved the capital markets. And this is just another step for us, showing how we could be additive to global capital. Your next question comes from Dan Fannon with Jeff. Good morning, good morning.

Speaker Change: As I said earlier, this is something that we can really be transformational and really change.

Speaker Change: The whole foundation of public and private markets and if we do what we did for public markets with Aladdin and data What we did for public markets with ETFs and iShares if we do that

Speaker Change: and transform more and more private products into more retail products.

Speaker Change: using our data and analytics. It will transform the capital markets and that's that's something that BlackRock has been proud of how we've moved the capital markets and this is just another step for us how we could be additive to the global capital markets.

Daniel Fannon: Your next question comes from Dan Fannon with Jefferies. Morning, good morning. Morning, I wanted to follow up. You talked a lot about a lot of momentum across the business. You know, fixed income has been a topic for some time. Flows have been a bit more mixed here. I guess in the conversations you're having, you still see that as one of the big areas of incremental growth as the interest rate environment evolves.

Speaker Change: Your next question comes from Dan Fannon with Jefferies.

Daniel Thomas Fannon: This morning, I wanted to follow up. You talked a lot about a lot of momentum across the business. You know, fixed income has been a topic for some time, and flows have been a bit more mixed here year to date. I guess, in the conversations you're having, you still see that as one of the big areas of incremental growth as the interest rate environment evolves. Well, I think, as I said, my prepared remarks sitting in 5% yield make a lot of sense unless you put in the if your liabilities are long dated, you lose money actually because with equity markets up 24 and 17, you know, this year alone.

Daniel Thomas Fannon: Good morning. Good morning. Good morning. I wanted to follow up. You talked a lot about a lot of momentum across the business.

Daniel Thomas Fannon: You know, fixed income has been a topic for some time, flows have been a bit more mixed here year-to-date. I guess in the conversations you're having, do you still see that as one of the big areas of incremental growth as the interest rate environment evolves?

Laurence Fink: Well, you know, I think as I said in my prepared remarks, sitting in 5% makes a lot of sense unless you put in the if your liabilities are long data, you lost money actually because with equity markets up 24 and 17, you know, this year alone. But that being said, we are beginning to see other clients are in the re risk, they're the re risking other. And let's be clear, if you look at, if you look at iShares, fixed income flows, you know, the market was basically flat. If you look at the, you know, so all the AUM growth and in Ice Shares, fixed income was really re risking.

Speaker Change: Well, you know, I think, as I said in my prepared remarks, sitting in 5% yield makes a lot of sense unless, you know, you put in the, if your liabilities are long dated, you lost money actually, because with equity markets up 24 and 17, you know.

Daniel Thomas Fannon: But that being said, we are beginning to see other clients starting to re-risk, or they're re-risking others, and let's be clear, if you look at iShares' fixed income flow, and the market was basically flat, if you look at the, you know, all the AUM growth and, and I share is that fixed income was really re-risked. And I think this is a good statement saying, you know, one, we're going to see more and more ownership in fixed income through ETFs. That's the evolution that's going on.

Speaker Change: This year alone, but that being said, we are beginning to see other clients starting to re-risk or they're re-risking other, and let's be clear, if you look at

Speaker Change: If you look at iShare's fixed income flows

Speaker Change: You know, the market was basically flat. If you look at the, you know, so all the AUM growth in

Speaker Change: and I share is fixed income was really re-risky.

Laurence Fink: And what I think this is a good statement saying, you know, one, we're going to see more and more ownership in fixed income through ETFs. That's evolution that's going on. Obviously, you're seeing growth in private markets and private credit that continues on. We are wildly bullish as more and more clients are going to be using infrastructure debt. And so I think you're going to start seeing, as all this plays out, like we've seen in equities. You know, we used to talk about equity more of a barbelling effect. I think we're starting to see that here in the bond market, where more and more people are in their core fixed income portfolios. They may continue to just use ETS as a foundation.

Speaker Change: And what I think this is a good

Speaker Change: statement saying, you know, one, we're going to see more and more ownership in fixed income through ETFs.

Laurence Douglas Fink: Obviously, you're seeing growth in private markets and private credit that continues. We are wildly bullish as more and more clients are going to be using infrastructure debt. And so I think you're going to start seeing, as all this plays out, like we've seen in equities. We used to talk about equities more of a barbelling effect.

Speaker Change: That's the evolution that's going on.

Speaker Change: Obviously you're seeing growth in private markets and private credit that continues on. We are wildly bullish as more and more clients are going to be using infrastructure debt.

Speaker Change: And so I think you're going to start seeing as.

Speaker Change: As all this plays out, like we've seen in equities, you know, we used to talk about equities more of a barbelling effect. I think we're starting to see that here in the

Laurence Douglas Fink: I think we're starting to see that here in the bond market, where more and more people are in their core fixed income portfolios, they may continue to just use ETFs as a foundation. And our growth in bond ETFs this year in a flat market is a great example that more and more people are getting fixed income exposure as a core element, and they're using ETFs more and more. And if they're starting to try to get more beta, excuse me, more alpha in their fixed income side, excuse me, they're going to do it.

Speaker Change: [inaudible]

Laurence Fink: And our growth in bond ETFs this year in a flat market is a great example that more and more people are getting fixed income exposure as a core element. They're using ETFs more and more. And if they're starting to try to get more beta, excuse me, more alpha in their fixed income side. Excuse me, they're going to do it in, they're going to do that in the more the illiquid space of private credit. They're going to do that in mortgage-backed securities, and they're going to do that in, they're going to do that in infrastructure debt.

Laurence Douglas Fink: In, They're going to do that in the more illiquid space of private credit. They're going to do that in mortgage-backed securities, and they're going to do that in infrastructure debt. So I believe we're very well positioned for that moment when people are recalibrating out of cash. And it's going to be heavily into fixed income bond funds, but it's going to be in also more alternative ETFs, alternative income-oriented products. Your next question comes from Ken Worthington with J.P. Morgan. Good morning. Hi, good morning.

Speaker Change: Excuse me, they're going to do it.

Speaker Change: They're going to do that in more the illiquid space of private credit.

Speaker Change: They're going to do that in mortgage-backed securities, and they're going to do that in They're going to do that in infrastructure debt, so I believe we're very well positioned for that moment when people are recalibrating out of cash

Laurence Fink: So I believe we're very well positioned for that moment when people are recalibrating out of cash. And it's going to be heavily into fixed economy, bond funds, and it's going to be an also more of the alternative ETF alternative acre-moriented products.

Speaker Change: And it's going to be heavily into fixed income bond funds, but it's going to be in also more the alternative ETFs, alternative income-oriented products.

Kenneth Worthington: Your next question comes from Ken Worthington with JP Morgan. Good morning. Hi. Good morning. Thanks for taking the question. Cash management had a strong quarter.

Speaker Change: Your next question comes from Ken Worthington with J.P. Morgan.

Kenneth Brooks Worthington: Thanks for taking the question. Cash management had a strong quarter. To what extent are you seeing, or still seeing, different and additional institutional clients migrating out of banks to money market funds to get higher yields? And where would you say the global markets are in terms of this transition to higher yielding forms of cash management? And then, on the last question, you called out re-risking a couple of times.

Kenneth Brooks Worthington: Good morning. Hi

Kenneth Brooks Worthington: Good morning. Thanks for taking the question Cash management had a strong quarter. To what extent are you seeing or still seeing

Unknown Executive: To what extent are you seeing or are still seeing different and additional institutional clients migrating out of banks to money market funds to get higher yield. And where would you say the global markets are in terms of this transition to higher yielding forms of cash management. And then to the last question you called out, re-risking a couple of times. Are you seeing re-risking coming out of cash, or is re-risking really a migration within other asset classes, either extending duration or going out to risk curve inequities? What do you sort of seeing in terms of that re-risking?

Kenneth Brooks Worthington: Different and additional institutional clients migrating out of banks to money market funds to get higher yield.

Speaker Change: And where would you say the global markets are in terms of this transition to higher yielding forms of cash management? And then to the last question, you called out re-risking a couple of times.

Martin Small: Are you seeing re-risking coming out of cash, or is re-risking really a migration within other asset classes, either extending duration or going out the risk curve in equities? What are you sort of seeing in terms of that re-risking? Thanks, Ken.

Speaker Change: Are you seeing re-risking coming out of cash or is re-risking really a migration within other asset classes, either extending duration or going out the risk curve in equities? What are you sort of seeing in terms of that re-risking?

Unknown Executive: Thanks, Ken.

Martin Small: So cash flows, $30 billion, as I mentioned, largely driven by government and international prime funds. We had that dynamic at the end of March and the Good Friday dynamic where clients would come out, and then we saw a significant kind of return and an increase in balances in early April. We had multiple large new client mandates. I flagged that the cash platform today is about $780 billion. It's grown more than 50% over the last five years.

Unknown Executive: It's March, so cash flows, 30 billion. As I mentioned, largely driven by government and international prime funds. We had that dynamic at the end of March and the Good Friday dynamic where clients have come out. Then we saw a significant kind of return and an increase in balances in early April. We had multiple large new client mandates. I flag that the cash platform today is about $780 billion. It's grown more than 50% over the last five years. And investors, they are earning a real return cash. We expected investors will re-risk. But I'd say a couple of dynamics we've definitely seen in the platform post Silicon Valley Bank.

Speaker Change: Thanks, Ken. So cash flows, $30 billion, as I mentioned, largely driven by government and international prime funds. We had that dynamic at the end of March and the Good Friday dynamic where clients would come out, and then we saw a significant kind of return and an increase in balances in early April .

Speaker Change: We had multiple large new client mandates.

Martin Small: And investors, they are earning a real return in cash. We expect that investors will re-risk. But I'd say a couple of dynamics we've definitely seen in the platform.

Speaker Change: I flagged that the cash platform today is about $780 billion. It's grown more than 50% over the last five years.

Speaker Change: And investors, they are earning a real return in cash. We expect that investors will re-risk. But I'd say a couple of dynamics we've definitely seen in the platform, post-Silicon Valley Bank, we saw through sort of cash matrix, we saw in our institutional business, I think clients just being more mindful, tactical, and kind of operationally flexible in how they manage cash. We think that largely for an institutional manager like BlackRock, that's been a good trend of being able to put together technology and customize liquidity accounts in a way that we can grow.

Martin Small: Post-Silicon Valley Bank, we saw through a sort of cash matrix; we saw in our institutional business, I think clients just being more mindful, tactical, and kind of operationally flexible in how they manage cash. We think that, largely for an institutional manager like BlackRock, that's been a good trend of being able to put together technology and customize liquidity accounts in a way that we can grow. And then, ultimately, we have seen this business grow.

Unknown Executive: We saw through sort of cash matrix. We saw on our institutional business. I think clients just being more mindful, tactical and kind of operationally flexible, how they manage cash. We think that largely for an institutional manager like BlackRock, that's been a good trend of being able to put together technology and customize liquidity accounts in a way that we can grow. And then ultimately, we have seen this business grow. But I'd also flag that bond ETFs have been a real surrogate. I think for kind of how clients are managing cash. As Larry mentioned, over the last year, we've seen $100 billion basically of organic growth in bond ETFs, which I think have been used as cash or cash proxies along the way as clients manage their liquidity, liquidity dynamically across money funds, separate accounts.

Martin Small: But I'd also point out that bond ETFs have been a real surrogate, I think, for kind of how clients are managing cash. And as Larry mentioned, over the last year, we've seen $100 billion of basically organic growth in bond ETFs, which I think have been used as cash or cash proxies along the way as clients manage their liquidity dynamically across money funds, separate accounts, and traded instruments like ETFs. But let me add a little more towards the asset allocation towards more re-risking. I think it's a mixed bag, Ken.

Larry: And then, ultimately, we have seen this business grow, but I'd also flag that bond ETFs have been a real surrogate, I think, for kind of how clients are managing cash. And as Larry mentioned, you know, over the last year, we've seen $100 billion basically of organic growth in bond ETFs.

Larry: which I think have been used as cash or cash proxies along the way as clients manage their liquidity dynamically across money funds, separate accounts, and traded instruments like ETFs.

Unknown Executive: And traded instruments like ETFs.

Unknown Executive: But let me add a little more towards the asset allocation into more risking. I think it's a mixed bag, can as we said in our prepared remarks. We're seeing a lot of pension funds who are saying I'm at my liability. You know, my assets reached my liability level. I don't need to own as much equities. That's going to be persistent if we continue to have rising equity markets. And on top of that, if we, you know, you know, if with with rate stain higher, longer, that gave those pension funds the liability rate that's set. But obviously, if interest rates go back down, the liabilities will go out a little bit.

Speaker Change: But let me add a little more towards the asset allocation into more re-risking.

Laurence Douglas Fink: As we said in our prepared remarks, we're seeing a lot of pension funds who are saying, I'm at my liability. You know, my assets have reached my liability level. I don't need to own as much equities.

Kenneth Brooks Worthington: I think it's a mixed bag, Ken, as we said in our prepared remarks. We're seeing a lot of pension funds who are saying, I'm at my liability.

Kenneth Brooks Worthington: You know, my assets reached my liability level. I don't need to own as much equities.

Laurence Douglas Fink: That's going to be persistent if we continue to have rising equity markets. And on top of that, if we, you know, you know, if rates stay higher longer, that gives those pension funds the liability rate that's set. But obviously, if interest rates go back down, the liabilities will go out a little bit. But and so we're seeing some clients actually de-risking because they can, but where are they de-risking?

Kenneth Brooks Worthington: That's going to be persistent if we continue to have rising equity markets and on top of that if we, you know, you know, if

Kenneth Brooks Worthington: With rates staying higher longer that gave those pension funds the liability rate that's set But obviously if interest rates go back down the liabilities will go out a little bit

Unknown Executive: But, and so we're seeing some clients actually de-risking because they can, but where are they de-risking? A lot of clients are not just de-risking, going from, you know, out of equities into cash or going into equities into other fixed income instruments. This is where I believe you're going to see more and more investments into infrastructure, where you have less volatility and investments, higher probable returns, high fixed coupon. So we're seeing clients around the world recalibrate the risk. There are some clients who are, you know, we're sitting away excess too much cash, and they're obviously paying for that.

Laurence Douglas Fink: A lot of clients are not just de-risking going from, you know, out of equities into cash; they're going into equities into other fixed income instruments. This is where I believe you're going to see more and more investments into infrastructure where you have less volatility in the investments and higher probable returns. HiFixCoupon.

Kenneth Brooks Worthington: And so we're seeing some clients actually de-risking because they can't. But where are they de-risking? A lot of clients are not just de-risking going from, you know, out of equities into cash. They're going into equities into other fixed income instruments.

Laurence Douglas Fink: So we're seeing clients around the world recalibrate their risk. There are some clients who are, you know, we're sitting in on way too much cash, and they're obviously paying for that, and we'll see how they re-risk. But overall, you know, I think if I had to say the headline for the first six months, the clients that are overweighted in illiquid strategies like private equity where they have liquidity issues, you saw them keeping more cash balances. If and when the private equity markets unlock themselves and there's a little more distribution, maybe you could see some of that cash going out and re-risking. So you're seeing a whole mixed bag.

Kenneth Brooks Worthington: So we're seeing clients around the world recalibrate their risk. There are some clients who are, you know, we're sitting in way excess too much cash and and they're obviously paying for that and we'll see how they re-risk but

Unknown Executive: And we'll see how they re risk. But overall, you know, I think probably if I had to say the headlines for the first six months, the clients that are over weighted in illiquid strategies like private equity, where they had liquidity issues, you saw them keeping more cash balances. If and when the private equity markets unlock itself, there's a little more distribution. Maybe you could see some of that cash going up and re risking. So you're seeing a whole mix bag. But I do believe the macro trends towards more bond allocation because of the extensive equity rally over the last 10 years.

Kenneth Brooks Worthington: Overall, you know, I think probably if I had to say the headline for the first six months,

Kenneth Brooks Worthington: The clients that are over-weighted in illiquid strategies like private equity where they have liquidity issues, you saw them keeping more cash balances, if and when.

Kenneth Brooks Worthington: The private equity markets unlock itself and there's a little more distribution. Maybe you could see some of that cash going out and re-risking. So you're seeing a whole mixed bag.

Laurence Douglas Fink: But I do believe the macro trends towards more bond allocation because of the extensive equity rally over the last 10 years. A deeper allocation towards privates, especially private credit, and infrastructure, is going to continue, and I do believe the tools of using ETFs as a core component of portfolios are going to become a larger and larger component of how investors invest. They're going to use more core fixed income ETFs, more equity ETFs, and then balance against using more, I would say, more diversified, maybe more illiquid strategies across the board.

Kenneth Brooks Worthington: But I do believe the macro trend towards more bond allocation because of the extensive equity rally over the last 10 years.

Unknown Executive: of deeper allocation towards private, especially private credit and infrastructure, is going to continue. And I do believe the tools of using ETFs as a core component of portfolios is going to become a larger, larger component of how investors invest. They're going to use more core six-take METS, more equity ETFs, and then barbell against using more, I would say, more diversified, maybe more illiquid strategies across the board. And I do believe BlackRock is as well positioned for that as any firm in the world.

Kenneth Brooks Worthington: Deeper allocation towards privates, especially private credit and infrastructure is going to continue. And I do believe the tools

Kenneth Brooks Worthington: of using ETFs as a core component of portfolios.

Kenneth Brooks Worthington: is going to become a larger and larger component of how investors invest. They're going to use more core fixed income ETFs, more equity ETFs, and then barbell against using more...

Kenneth Brooks Worthington: I would say more diversified, maybe more illiquid strategies across the board. And I do believe BlackRock is as well positioned for that as any firm in the world.

Laurence Douglas Fink: And I do believe BlackRock is as well positioned for that as any firm in the world. Ladies and gentlemen, we have reached the allotted time for questions. Mr. Fink, do you have any closing remarks? I do, operator. Thank you.

Operator: Ladies and gentlemen, we have reached the allotted time for questions.

Laurence Fink: Mr. Fink, do you have any closing remarks? I do operator, thank you. And thank you for all joining us this morning and for your continued interest in BlackRock. Our second quarter results are possible because of our deep partnerships with our clients around the world and our one BlackRock approach in everything we do. We are well positioned to execute on our landmark mandates across our platform, and we're closing in on our plan acquisitions, a GIP and frequent. We see unbelievable growth opportunities for our clients and our shareholders for the rest of 2024 and beyond.

Speaker Change: Ladies and gentlemen, we have reached the allotted time for questions. Mr. Fink, do you have any closing remarks?

Laurence Douglas Fink: And thank you for joining us this morning and for your continued interest in BlackRock. Our second quarter results are possible because of our deep partnerships with our clients around the world and our one BlackRock approach to everything we do. We are well positioned to execute on our landmark mandates across our platform, and we're closing in on our planned acquisitions of GIP and pre-quota. We see unbelievable growth opportunities for our clients and our shareholders for the rest of 2024 and beyond.

Laurence Douglas Fink: I do, operator. Thank you. And thank you for all joining us this morning and for your continued interest in BlackRock. Our second quarter results are possible because of our deep partnerships with our clients around the world and our one BlackRock approach in everything we do.

Laurence Douglas Fink: We are well positioned to execute on our landmark mandates across our platform, and we're closing in on our planned acquisitions of GIP and PreQuint.

Laurence Douglas Fink: We see unbelievable growth opportunities for our clients and our shareholders for the rest of 2024 and beyond.

Unknown Executive: Everyone, please stay safe, stay cool, and have a lovely summer as best you can. Enjoy our political conversations over the next few weeks; be active and have a great quarter.

Laurence Douglas Fink: Everyone, please stay safe and stay cool. Have a lovely summer as best you can. Enjoy our political conversations over the next few weeks. Be active and have a great quarter. This concludes today's teleconference. You may now disconnect. Unknown Executive, Alexander Blostein, Martin Small, Aidan Hall, Sudhir Nair, BlackRock

Laurence Douglas Fink: Everyone please stay safe, stay cool, have a lovely summer as best you can, enjoy our political conversations over the next few weeks, be active, and have a great quarter.

Operator: This concludes today's teleconference. You may now disconnect. Thank you very much.

Speaker Change: This concludes today's teleconference. You may now disconnect.

Speaker Change: Aidan Hall, Robert Goldstein, Kenneth Worthington, Martin Small, Aidan Hall, Sudhir Nair,