Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We continue to have a lot of conviction in our low to mid-teens ACV growth for the Aladdin business over the next several years |
| I really think the growth opportunities in Europe are incredible for the ETF market |
| Expanding the total addressable market in which our Latin business operates, we think would be an attractive but also regional plays |
| As many of you know, BlackRock, with $9 trillion in asset management, is the largest and most diversified global asset manager that we cover, with best-in-class organic growth, supported by leading position in ETFs, growing footprint in private markets and multi-asset markets as well |
| We think we're really well positioned to capture it |
| And actually our ability to still drive positive organic revenue growth in markets that are weaker or tepid or even monumentally down like in 2022, is also really strong on a relative basis |
| When we can get an acquisition to do both, we think it's really great |
| It allows clients to grow faster |
| But to me, if you were to look at where has BlackRock been in terms of upside capture, our upside capture is really high on organic base fee growth in those years where markets are really coming on strong |
| The second thing that I listen for is, is BlackRock really well positioned, because we want to be a structural grower, right? We want to be a structural grower in how we're serving those portfolios with excellence |
| Is BlackRock really well positioned when it comes to those wholesale changes to the stock, as well as the moves that clients are making with the flow? And I come away from those conversations with a lot of energy about why BlackRock is a structural grower in those markets |
| All those things have been happening, and you've seen a decidedly more positive tone and sentiment in markets that I'm very optimistic will carry into 2024 |
| And we've seen some good firming up in precision ETFs that are positive to the tune of about $8 billion also, which tells you something not just about the seasonality of those flows, but investors having a more positive sentiment in terms of where they're moving from cash and into risk assets |
| But that's our footprinting, that's our technology, that's our organizational design such that we can grow revenues and assets in a way that continue to create operating leverage |
| We've made huge strides on that over the years which is one of the reasons that we have a premium operating margin |
| We've grown organically, I think, in a way that is very compelling |
| So we're seeing some of the best opportunities that we've had |
| It'll come from a lot of the work that we've done in integrating Aladdin into the provider ecosystem that we really think has great benefits, sort of win, win, win for the providers, custodians clients and BlackRock in that triumvirate |
| We've been a good acquirer |
| We have a market leading position in a structural growth market |
| And I think it's a place where we can really log differentiated growth |
| But importantly, I think our ability to originate transactions that are really different, that come from this incredible position of service and trust, working with public and private institutions together, I think it's a real differentiator in who we are, what we do and how we can grow |
| But all of that in the context of we've delivered a premium operating margin |
| And if anything, I think we've been a good acquirer |
| We have the ability to add large volumes of assets without commensurately growing the expense base and that has become a real advantage to us over time |
| So this is a place where we see great momentum, and I really think there's outsized potential for growth for BlackRock |
| So I think it’s a great strategic advantage for us, and that’s the path to me as to how we’ve propelled outsized growth |
| I think it’s absolutely remarkable |
| We've grown well organically |
| We have forecast of the ETF market being a $25 trillion market by 2030 with $19 trillion of equities, $6 trillion of fixed income ETFs, and we’re in a market leading position |
| Statement |
|---|
| money market flows were negative |
| I'm not sure we all knew that they would go up with the velocity and ferocity with which they went up, but everybody knew they had to go up eventually and that we would be seeing portfolios lose a significant amount of value |
| And I think that was a real shock for clients |
| And you've sort of highlighted the building blocks, obviously the last kind of several quarters the last year, so it's been tougher than that |
| So when you have obviously a double digit decline in the Ag, for example, we're going to see some of that weigh on the revenues |
| If you look at the Broadridge data, the ICI data, the Equiplex [ph] data, gross sales in mutual funds are off a $1 trillion this year relative to the last five years |
| But it's really profound |
| We’re the only my statistics just got terrible |
| So this correction of the last two years where we knew everybody in this room knew that interest rates eventually had to go up |
| They’re down 1% kind of year-on-year |
| And if anything, these markets where people feel the profound effects of what it means to have great risk analytics versus not when all of a sudden you have double digit market declines |
| When we've seen these shocks in monetary policy, we saw it right in 2013, we saw it also in 2019 a little bit with the pause |
| But we're really mindful of making sure that we're driving profitable growth |
| So I see big opportunities for that in terms of fixed income re-risking, but I still think there's a cautious element to it |
| And if you were to summarize, I guess 2023 not a huge surprise |
| After the pause, we tend to see flows really come back |
| So we have hit our 5% organic growth objective over the last five years |
| But we don't feel like our fortunes in terms of being able to hit 5% through a cycle are tied to short-term market conditions |
| Volatility in interest rates, volatility in markets, just put a lot of folks over trillion dollars into money market funds, I think, or so in 2023 alone |
| And I like having some of this pro cyclicality in our revenue base |
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