BlackRock Review: what do you need to know?

1 min readLast updated May 30, 2024by Unbiased team

Learn more about multinational BlackRock, the investment firm with the most extensive footprint in the industry.

Summary 

  • BlackRock, Inc., is the biggest asset management company worldwide, with $10 trillion in assets under management as of 2023. 

  • It is a multinational investment firm with clients in 100 countries. 

  • BlackRock’s pricing and fee structure varies according to the account type and investment strategy provided.  

  • Get matched with an expert financial advisor for your unique financial journey. 

Introduction to BlackRock 

BlackRock, Inc., is an international investment management corporation founded in 1988 in New York City. It is the world's largest asset manager and offers various financial services, including asset management, risk management, and advisory services.  

With operations in nearly 40 countries, BlackRock manages portfolios for institutional clients, corporations, governments, and individuals. Its diverse investment strategies also cater to various risk appetites and financial goals.  

What services do BlackRock offer? 

BlackRock's comprehensive suite of financial products and services includes asset management, risk management, and advisory solutions. Its management services cover various asset classes, such as equities, fixed income, alternatives, and multi-asset strategies. 

BlackRock also provides investment solutions tailored to institutional clients, corporations, governments, and individual investors. Additionally, the company offers iShares Exchange-Traded Funds (ETFs), mutual funds, and retirement planning services. 

What is BlackRock’s investment philosophy?  

As fiduciaries, BlackRock aims to help clients experience financial well-being using a disciplined approach. The BlackRock Investment Institute (BII) generates proprietary research and tools to provide insights on international investments, helping BlackRock portfolio managers and clients navigate various financial markets. 

For instance, BlackRock’s investment advisors use a data-driven approach, leveraging advanced analytics and technology to identify investment opportunities and optimize portfolio performance. Sustainability and responsible investing form part of this strategy, so BlackRock portfolio managers integrate environmental, social, and governance (ESG) factors into their investment decisions. 

What is BlackRock’s pricing and fee structure? 

BlackRock reviews reveal that the firm’s pricing and fee structure varies according to the account type and investment strategy. Generally, the company charges management fees based on a percentage of assets under management (AUM). 

The tiered structures are outlined below: 

  • Wrap fee schedule for equity, balanced retirement journey, and WDP strategies: Annual fees range from 2.50% (up to $50,000) to 0.50% (between $40,000,000 to $50,000,000).

  • Non-wrap fee schedule for equity and balanced investment strategies: Annual fees range from 1.00% (up to $1,000,000) to 0.45% (between $40,000,000 and $50,000,000. 

  • Non-wrap fee schedule for single-style fixed-income investment strategies: Annual fees range from 0.90% (up to $1,000,000) to 0.375% between $30,000,000 and $50,000,000). 

  • Non-wrap fee schedule for multi-strategy fixed income and target income investment strategies: Annual fees range from 1.50% (the first $500,000) to 0.95% (between $5,000,000 and $25,000,000). 

  • SMA Program with a fixed-income investment strategy: Annual fees range from 0.35% (the first $1,000,000) to 0.15% (between $10,000,000 and $20,000,000). 

  • SMA program with an equity investment strategy: Annual fees range from 0.65% (first $1,000,000) to 0.25% (more than $50,000,000). 

  • Liability-driven investing fixed-income strategies: Annual fees range from 0.25% (for the first $25,000,000) to 0.09% (for assets over $250,000,000).

It is worth noting that while many accounts adhere to BlackRock's standard fee schedules, some fees may be negotiable based on factors like account size and client relationship. 

Is BlackRock trustworthy? 

BlackRock is widely regarded as a reputable and trustworthy investment firm, given its size, global presence, and favorable track record of delivering results for clients.  

There are many favorable Blackrock company reviews, and they have earned multiple awards and recognitions over the years, affirming its leadership in the industry, including: 

  • CNBC and JUST Capital named BlackRock one of America's Most JUST Companies in 2022. 

  • The Human Rights Campaign's Corporate Equality Index has awarded them perfect scores for 11 consecutive years. 

  • The Dow Jones Index included BlackRock as one of the most sustainable countries in North America. 

  • Barron's rated BlackRock as one of North America's Most Sustainable US Companies. 

  • Wall Street Journal named them as one of the best-managed companies of 2019. 

What are the pros and cons of BlackRock? 

Understanding if signing up with BlackRock is a good investment requires some consideration of the pros and cons of this giant corporation and its investment subdivision: 

Pros 

  • Global presence: BlackRock's widespread operations provide access to diverse investment opportunities worldwide. 

  • Industry leadership: As the largest asset manager globally, BlackRock's expertise and resources offer investors security and stability. 

  • Innovation: BlackRock is known for its innovative approach to investment strategies, leveraging technology and data analytics to drive performance and develop proprietary resources. 

  • Diversified offerings: The company offers multiple investment products and solutions catering to various risk profiles and financial goals. 

  • ESG integration: BlackRock's commitment to incorporating environmental, social, and governance factors into investment decisions aligns with growing investor demand for sustainable investing options. 

Cons 

  • Fee structure: Some investors may find BlackRock's fees relatively higher than those of other investment firms, especially for specific products and services. 

  • Potential conflict of interest: As a large financial institution, BlackRock may face conflicts of interest in managing various investment vehicles or engaging in corporate actions. 

  • Market influence: BlackRock's substantial market presence could raise concerns about its impact on market dynamics and competition. 

  • Limited personalization: Despite the wide variety of investment options, BlackRock's products may not always provide the customization individual investors desire. 

How to open an account with BlackRock? 

To invest in BlackRock, visit the company's website or contact a financial advisor affiliated with the company.  

You'll discuss considerations like investment goals, risk tolerance, and time horizon and be expected to provide personal information or documents for verification and compliance purposes. 

Additionally, consider the minimum investment requirements for the specific account or investment strategy you're interested in. Review the account terms, fees, and investment options to ensure they align with your preferences and financial objectives. 

Get expert financial advice  

BlackRock is the world's largest asset manager, trusted by clients in over 100 countries. Its trustworthiness, service delivery, and sustainable attitude have won it many awards. However, given its size and fee structure, investing through BlackRock may not be for everyone. 

Seeking advice from a certified investment broker or financial advisor is crucial if you want tailored guidance. Let Unbiased match you with the right financial advisor for your unique circumstances to ensure you get expert financial advice and build up a successful portfolio. 

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.