Full Description

BlackRock, Inc. (BlackRock) operates as an investment management firm in the United States. As of December 31, 2008, the Company had $1.307 trillion of assets under management (AUM). BlackRock provides diversified investment management services to institutional clients and to individual investors through various investment vehicles. Its investment management services primarily consist of the active management of fixed income, cash management and equity client accounts; the management of a number of open-end and closed-end mutual fund families, and other non-United States equivalent retail products serving the institutional and retail markets, and the management of alternative funds developed to serve various customer needs. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution.

Fixed Income

The Company offers an array of fixed-income products across currencies, sectors and maturities. BlackRock’s fixed income client base remains largely institutional, with 86% of AUM, managed on behalf of institutional clients and 14%, managed for retail and high net worth investors. At December 31, 2008, 35% of fixed-income AUM was managed for non-United States investors.

Cash Management

BlackRock’s cash management products cover the short end of the duration spectrum. As of December 31, 2008, under its cash management business, Company had $338.4 billion of AUM, including a variety of money market funds and customized portfolios. BlackRock’s cash management activities are primarily conducted on behalf of United States clients. At December 31, 2008, cash management AUM for United States investors reached $297.7 billion and assets for international investors were $40.7 billion. Institutional clients represent the largest percentage of the Company’s cash management platform with $309.2 billion of assets at December 31, 2008. Retail and high-net-worth client cash management assets totaled $29.2 billion as of December 31, 2008.

Alternative Products

The Company’s capabilities include private equity, private equity funds of funds, real estate equity and debt, hedge funds of funds, single-strategy hedge funds, long-only absolute return strategies, commodities and structured products. BlackRock’s real estate offerings span a range of strategies, including core, value-added and opportunistic equity and high yield debt for institutional and private investors. Assets on the real estate platform as of December 31, 2008 were $25.8 billion. The Company’s fund of funds platform, which operates under the name, BlackRock Alternative Advisors (BAA), manages a variety of multi-manager strategies investing in hedge funds, private equity funds and real asset funds. All of these assets are managed on behalf of institutional and high net worth clients, split almost evenly between United States and international investors. BlackRock real estate investments span a range of strategies, including core, value-add and opportunistic equity, and high-yield debt for institutional and private investors.

BlackRock Solutions

BlackRock offers investment systems, risk management and advisory services under the BlackRock Solutions brand name. The BlackRock Solutions operating platform, Aladdin, serves as the investment system for BlackRock and a growing number of institutional investors. BlackRock Solutions also uses Aladdin to support ongoing risk management, investment accounting outsourcing, financial markets advisory and transition management services. During the year ended December 31, 2008, the Company added 72 new assignments, including 46 short-term engagements.

BlackRock Solutions’ core products consist of tools that support the investment process. These include Aladdin and a variety of other analytical tools for clients that do not require all of the functionality of the enterprise system. In addition, BlackRock Solutions offers a variety of risk management and financial advisory services. At December 31, 2008, 36 institutions on four continents had selected Aladdin as their investment operating platform, including eight implementations completed in 2008.

Equity and Balanced

BlackRock manages a range of equity strategies that span the risk/return spectrum, along with several targeted opportunities in specific market sectors. As of December 31, 2008, BlackRock’s equity and balanced AUM totaled $280.8 billion. The Company’s equity and balanced products employ primarily either an active quantitative approach or an active fundamental approach, both of which seek to add value principally through stock selection.

The Company’s equity platform is diversified across its clients and channels. As of December 31, 2008, 49% of the Company’s total equity and balanced AUM, or $136.4 billion, was managed for United States investors, and 51%, or $144.4 billion, was managed for non-United investors. As of December 31, 2008, 53% of assets were managed on behalf of institutions, and 47% managed on behalf of retail and high-net-worth investors.