blackrock 2013 annual report

8/18/2019 BlackRock 2013 Annual Report

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OUR

PLEDGETO YOU

BLACKR OCK 2013 ANNUAL REPORT


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BLACKROCK, INC. 2013 ANNUAL REPORT

In 2013, we celebrated the 25th anniversary of BlackRock.As we reect on our history, we are reminded that the futurecomes quickly in our business. We owe it to our clients,

shareholders and employees to be prepared for tomorrow.As we look forward to the next 25 years, we are committedto challenging ourselves to meet our client and duciaryobligations in every respect. By doing so — and insistingon excellence in everything we do — BlackRock will fulllits mission to help clients build better nancial futures.

A COMMITMENT

FROM OUR GLOBALEXECUTIVE COMMITTEE

OUR GLOBAL EXECUTIVE COMMITTEE(left to right)

BLACKROCK, INC. 2013 ANNUAL REPORT

Kenneth F. K ronerGlobal Head of Multi-Asset Strategies,Head and Chief InvestmentOfcer of Scientic Active Equity

Charles S. HallacChief Operating Ofcer

Kendrick R. Wilson IIIVice Chairman

Gary S. ShedlinChief Financial Ofcer

Barbara G. Nov ic kVice Chairman

Jeffrey A. SmithGlobal Head ofHuman Resources

Bennett W. GolubChief Risk Ofcer

Philipp HildebrandVice Chairman

Laurence D. FinkChairman &Chief Executive Ofcer

Quintin R. PriceGlobal Head ofAlpha Strategies

Derek N. SteinGlobal Head of BusinessOperations & Technology


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1 BLACKR OCK, INC. 2013 ANNUAL REPORT

We pledge to:

Perform to the highest ethical, investment and operational standards

Understand our clients’ real-world needs and build solutionsto meet them

Lead by harnessing our collective intelligence and global reach

Advocate as a responsible voice and valued source of informationfor investors

Evolve to stay ahead of change and deliver for clients, shareholdersand employees

Mark K. WiedmanGlobal Head of iShares

Linda G. RobinsonGlobal Head of Marketing& Communications

Matthew J. MallowGeneral Counsel

Amy L. SchioldagerGlobal Head ofBeta Strategies

Mark S. McCombeChairman ofAsia-Pacic

Robert S. KapitoPresident

Patrick M. OlsonGlobal Head of Strategy andPlanning & Secretary of the GEC

Robert W. FairbairnGlobal Head ofRetail & iShares

J. Richard KushelDeputy ChiefOperating Ofcer

David J. BlumerHead of Europe,Middle East & Africa

Robert L. GoldsteinGlobal Head of InstitutionalClient Business &BlackRock Solutions


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BLACKROCK, INC. 2013 ANNUAL REPORT 2

DRIVING PERFORMANCE “We strive to be outstanding‘investment athletes.’We’re focused on constantlylearning and improving.We utilize the best tools,resources and processesto generate consistentperformance for our clients.”

ALPHA STRATEGIES

PERFORMANCE MATTERSAt BlackRock, performance is at the heart of everythingwe do — because our clients depend on us to meet theirlife goals and investment objectives, and because ourshareholders count on us for competitive returns — andbecause our business is built on trust.

As a leading asset manager , we pursue superiorinvestment performance while relentlessly managingrisk in our clients’ portfolios. We offer a wide range ofactive and passive investment capabilities across assetclasses and regions, the global expertise to packagethese capabilities into specic solutions to meet real-world needs and best-in-class risk management toolsand analytics to support these solutions.

As a duciary , we have an obligation to clients toperform to the highest ethical and operational standards.We understand that more than ever in today’s complexmarkets, we must earn the trust and condence ofinvestors — in our offerings and our business — in orderto succeed. We believe that if our employees seek to actalways with integrity, performance follows.

INVESTMENT EXCELLENCE TO DRIVE ALPHAGenerating alpha at BlackRock is a function of our people,our process and our culture of investment excellence.We’ve structured our business to give portfolio managersthe autonomy, technology, insights and risk managementtools to promote the exceptional risk-adjusted returnsour clients expect. Even as we work to enhanceperformance in the funds we already manage, we’realso exploring new alpha sources that align with ourclients’ long-term interests.

WE PLEDGE TO

PERFORMTO THE HIGHEST ETHICAL, INVESTMENTAND OPERATIONAL STANDARDS

$1.4TBLACKROCK ACTIVE AUM

82%

65%

49%

91%

TaxableFixed Income

Tax-exemptFixed IncomeFundamentalEquityScienticEquity

% OF ACTIVE AUM ABOVE B ENCHMARKOR PEER MEDIAN OVER THREE YEAR PERIOD

Performance data as of December 31, 2013.


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3 BLACKROCK, INC. 2013 ANNUAL REPORT

AND BE RELENTLESSIN MANAGING RISK.THERE’S NOTHING PASSIVE ABOUT INDEXINGBlackRock is untiring in our quest to deliver better beta.Our index and iShares strategies are designed to deliverreturns linked to targeted benchmarks and our focus,technology and expertise enable us to deliver superiorperformance for our clients. Dedicated research teamsfocus on index methodology, projection of index changesand value-added trading strategies — thousands ofdecision points each year are an opportunity to createand preserve value for clients.

FOUNDED ON RISK MANAGEMENTRelentless risk management is embedded in our culture:we were founded on the need to thoroughly understandthe risks our clients face, using world-class analytics andtechnology. Our common investment and risk managementplatform, Aladdin, ensures that portfolio, risk and accountmanagers share the same timely information and insight,creating an effective and virtuous cycle. Our foundation ofrisk management is key to safeguarding our clients’ trust.

$2.6TBLACKROCKPASSIVE AUM

98%OF PASSIVE AUM ABOVE /WITHIN TOLERANCE FORTHREE YEAR PERIOD


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UNCOVERING CLIENT NEEDS “We have a profound appetitefor uncovering and meetingour clients’ needs, even whenthat means doing things we’venever done before. We takepride in helping clients achievetheir desired outcomes whileminimizing operational risk.”

BETA STRATEGIES

WE PLEDGE TO

UNDERSTANDOUR CLIENTS’ REAL WORLD NEEDS

FOCUS ON CLIENTSWe believe true success comes from listening to ourclients. Providing the outcomes our Institutional,Retail and iShares clients are seeking, wherever theyare in the world, starts with understanding theirunique needs — from those of a large pension fundmatching assets to liabilities, to an individual investorseeking steady income in retirement or achievingother life goals. By bringing together diverse assetclasses and investment styles with deep expertisein portfolio construction, we help each client ndthe right solution for their nancial futures.

AUM

Institutional Retail iShares

Base Fees

$4.3TTOTAL ASSETS MANAGEDON BEHALF OF CLIENTS

% OF LONG TERM AUM AND BASE FEESBY CLIENT TYPE

65% 12% 23%

31% 34% 35%


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DELIVERING THE FIRM “Our mission is to bring the full breadth

of BlackRock’s expertise to the retailmarket, so advisors can build betterportfolios for their clients. That includesknowing where and how to use the rightcombination of iShares and active funds.”

RETAIL & iSHARES

CUSTOMIZED SOLUTIONS “Our clients’ investment challengesget more complex every day. We focuson understanding their objectivesand provide analytics, thoughtleadership and strategic advice todeliver customized solutions.”

CLIENT SOLUTIONS

AND BUILD SOLUTIONS TO MEET THEM.RETAIL &iSHARESBlackRock’s Retail & iShares sales force is dedicatedto bringing the same consultative “One BlackRock”approach that we offer leading institutions to everyconversation with a retail client — along with the sameworld-class risk management and portfolio constructiontools. Together with our distribution partners andnancial advisors, we work to provide a framework forblending active and passive strategies into real-lifeanswers to real-life challenges — like achieving growthwith minimum volatility, protecting against ination,funding a retirement, paying for a college education oreven starting a business.

INSTITUTIONAL &BLACKROCK SOLUTIONS BlackRock offers institutional clients a holistic approachto investing. More than ever before, we’re leveraging bothour Institutional and BlackRock Solutions capabilitiesto dive deep into their complex nancial challenges andmodel portfolios that help them meet their objectives.Our understanding of client behavior and global industryand market trends, coupled with the depth and breadthof our platform, allows us to generate customizedinvestment approaches backed by superior research,risk analytics and client service.


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WE PLEDGE TO

LEADBY HARNESSING OUR COLLECTIVEINTELLIGENCE AND GLOBAL REACHINTELLIGENCE POWERED BY AL ADDINFrom our earliest days, we’ve worked to build and improvea common technology platform that allows us to think, actand mobilize global resources as one rm. Aladdin is akinto a central nervous system that unites the information,people and technology needed to manage money in realtime and at every step in the investment process. It powersand empowers collective intelligence — connectingdifferent teams and time zones on a single platform —so everyone benets continuously from the person sittingnext to them and the person sitting halfway around theworld. It enables our employees and clients to:

• Communicate Better: people, data and processes areinstantly and transparently united so everyone worksfrom the same playbook, speaks the same language anduses the same data

• See Clearer: our teams see the markets and the wholeinvestment process more clearly, giving real-timeinsights into exposures and risks across every productand asset class

• Work Smarter: provides information needed to makebetter investment and risk management decisionsat investors’ ngertips, helping everyone focus theirtime and “mind share” on what matters most to clients

• Move Faster: unique ability to process data withconsistency, efciency and speed on a single,shared system

• Scale Further: helps power growth and drive efciency

PEOPLE +TECHNOLOGY +PROCESS “ Aladdin powers ourcollective intelligence andour collective intelligencepowers Aladdin — it’s thecommon platform linkingportfolio managers, traders,compliance ofcers, accountmanagers, executives and,

ultimately, our clients, tothe information and riskmanagement they need.”

AL ADD IN



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TO APPLY OUR BEST THINKINGIN A RAPIDLY CHANGING WORLD.

1,600INVESTMENTPROFESSIONALS

KNOWLEDGE EXCHANGE “Our Daily Global Meetingoffers our 1,600 investmentprofessionals a chance todiscuss market developmentsin real time and sharediverse, global investmentinsights, helping us translateexpertise from one partof the world into foresightand action in another.”

BLACKROCK INVESTMENTINSTITUTE

BRINGING INVESTORS THE BEST OF BLACKROCKThe best solutions are driven by a collection of diverseinsights. BlackRock not only offers global breadth anddepth of expertise, but works hard to apply the informationand ideas we generate across geographies and businessesto meeting our clients’ objectives. This connectivity keepsus at the forefront of change and allows us to look at andaddress every investment problem from a perspectiveinformed by our shared expertise.

BLACKROCK INVESTMENT INSTITUTE BIIThe BlackRock Investment Institute was created witha single goal: to harness the best insights from our globalinvestment teams through robust dialogue and applythem to driving investment performance for our clients.BII is a global platform that allows our portfolio managersto stay connected, informed and on the cutting edge ofinvestment thinking. Through topical investment forumsand workshops, teams from around the world cometogether to debate and collaborate, enabling BlackRockto identify key market themes. BII deepens BlackRock’sdirect engagement with clients through high-valueresearch, meetings with investment strategists and largerconferences where our investors share their perspectiveswith clients.

80+KNOWLEDGEEXCHANGE EVENTSSINCE BII INCEPTION


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WE PLEDGE TO

ADVOCATEAS A RESPONSIBLE VOICE AND VALUEDSOURCE OF INFORMATION FOR INVESTORS

REAL ANSWERS FOR T ODAY’S WORLDAt BlackRock, we feel we have a responsibility to be a voicefor investors and to offer them the nancial guidance andsupport they need today. That means not just the world’sgovernments and leading institutions and companies,but also the retirees and workers whose pensions wemanage and individual investors who entrust us with their

savings. They are looking for real, actionable answerson what to do with their money as they face longerretirements, struggle to reach their life goals and confronta complex and volatile investing environment. Our jobis to provide the clarity they’re looking for and help thembe better investors.

ESSENTIAL CONVERSATIONS“The people of BlackRock neverforget that the reason we cometo work every day is to help ourclients build better nancialfutures. We need to meet them ontheir terms, speak their languageand provide clear advice asthey work toward their goals.”

MARKETING & COMMUNICATIONS


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TO FULFILL OUR OBLIGATIONAS A FIDUCIARY.A VOICE FOR INVESTORSOur global Government Relations team partners withcontent experts and professionals throughout BlackRockto bring the voice of the investor to the regulatory andpolicy environment. The team focuses on positivelyimpacting public policy developments affecting our clientsand our business by distinguishing thought leadershipand demonstrating BlackRock as a resource for decisionmakers. BlackRock is committed to supporting clienteducation and advocacy efforts and working with ourinvestors to understand market implications of publicpolicy issues.

BETTER GOVERNANCE MEANSBETTER PERFORMANCEOur duciary duty to our clients leads us to use theowner ship position we hold in companies around the worldto protect their interests by advocating for good corporategovernance. Through direct engagement with manage-ment teams and effective use of our proxy voting power,we work to ensure the strong leadership and prudentmanagement that we believe ensures sustained perfor-mance and better returns on our clients’ investments.

A BETTER FINANCIAL ECOSYSTEM “Our leadership position in the assetmanagement industry creates boththe forum and the responsibilityto advocate on behalf of our clientsfor policies that will foster a betternancial ecosystem for all investors.”

GOVERNMENT RELATIONS


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WE PLEDGE TO CHALLENGE O URSELVES TO

EVOLVETO STAY AHEAD OF CHANGE AND

DELIVER FOR CLIENTS, SHAREHOLDERSAND EMPLOYEES

CONTINUOUS TRANSFORMATIONTO SERVE OUR CLIENTSOur goal is not just to react to change — but toanticipate and shape it. Throughout our history andgrowth, BlackRock has continually transformed ourplatform to prepare for the emerging needs of ourclients and trends in the marketplace. We will continueto evolve — and improve — our ability to understandrisk, uncover opportunity, solve our clients’ problemsand deliver on their expectations.

OUR STR ATEGIC FOCUS AREAS:MARKET AND CLIENT DRIVENOur success in building the capabilities to adapt andexcel in a changing investment world allows us to deliveragainst a set of strategic focus areas for 2014 thatreect our clients’ needs and market opportunities.

Income

Alternatives

Outcome Investing

ETFs

Emerging Markets

Retirement Solutions

Opportunistic Fixed Income

EVOLUTION REQUIRES INNOVATION“We believe innovation leads to the kind

of evolution that truly benets clients.Having the courage and discipline —and displaying the speed and nimble-ness — to put smart ideas into actionfor those we serve can occur anytime,anywhere and at any level in the rm.”

STRATEGIC PRODUCT MANAGEMENT


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WHILE STAYING TRUE TOOUR FUNDAMENTAL PRINCIPLES.THE BLACKROCK PRINCIPLESOur mission is to help our clients build better nancialfutures. The BlackRock Principles guide us in this missionby providing a shared understanding of who we are, whatwe stand for and how we conduct ourselves.

We are a Fiduciary to Our ClientsWe operate with a duciary mindset —which means putting our clients’ interests rst.

We are Passionate about PerformanceWe are passionate about our work and intensely focusedon performing at the highest levels. We take emotionalownership of every aspect of the work we do.

We are One BlackRockWe challenge ourselves — and each other — to collectivelyraise our game. The best solutions result from the ideasand contributions of a diverse team of partners.

We are InnovatorsContinuous innovation helps us bring the best of BlackRockto our clients by introducing new and innovativeapproaches across all dimensions of our business.

GROUNDED IN PRINCIPLES “Our culture is central to what we doand helps us maximize performanceand drive excellence. Our Principlesare a call to action to the entirerm to meet the highest standardsof performance and behavior —every day — to lead ourselves, leadeach other and lead the business.”

HUMAN CAPITAL COMMITTEE


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20112009 2010 2012 2013

$16.58

$7.13

$13.68

$11.85

$10.94

BLACKR OCK, INC. 2013 ANNUAL REPORT 12

AUM$4.324 TRILLION

ADJUSTED EPS

FINANCIAL HIGHLIGHTS

($mm, except per share data) 2013 2012 2011 2010 2009

Revenue $10,180 $9,337 $9,081 $ 8,612 $ 4,700

Net income attributable to BlackRock, Inc., GAAP 2,932 2,458 2,337 2,063 875

Net income attributable to BlackRock, Inc., as adjusted 2,882 2,438 2,239 2,139 1,021

Operating income, as adjusted 4,024 3,574 3,392 3,167 1,570

Operating margin, as adjusted 41.4% 40.4% 39.7% 39.3% 38.2%

Per Share

Diluted earnings, GAAP $16.87 $13.79 $12.37 $10.55 $6.11

Diluted earnings, as adjusted 16.58 13.68 11.85 10.94 7.13

Dividends declared 6.72 6.00 5.50 4.00 3.12Diluted weighted-average common shares 173,828,902 178,017,679 187,116,410 192,692,047 139,481,449

Total AUM (end of period) $4,324,088 $3,791,588 $3,512,681 $3,560,968 $3,346,256

Long-term AUM (end of period) 4,012,209 3,482,366 3,137,946 3,131,116 2,835,812

23%CAGR

REVENUE$10.2 BILLION

Active equity

Non-ETF index equity

iShares equity

Active xed income

Non-ETF index xed income

iShares xed income

Multi-asset

Core alternatives

Currency & commodities

Cash management

Advisory

Equity base fees

Fixed income base fees

Multi-asset base fees

Alternatives base fees

Cash management base fees

Performance fees

BRS & Advisory

Other revenue

Please review the Important Notes on page 21 for information on certain non-GAAP gures shown aboveand through page 19, as well as for source information on other data points on pages 2 through 20.


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MY FELLOW SHAREHOLDERS:2013 MARKED BLACKROCK’S 25TH ANNIVERSARY.WE FOUNDED OUR COMPANY IN 1988 ON ONE CORE COMMITMENT:TO SERVE OUR CLIENTS AS A TRUSTED PARTNER ANDFIDUCIARY, DELIVERING INVESTMENT PERFORMANCE,RISK MANAGEMENT AND INNOVATION AS A SINGLE FIRM.

LAURENCE D. FINKCHAIRMAN ANDCHIEF EXECUTIVEOFFICER

Over our rst 25 years, we have workedhard to stay ahead of changing marketsand the ever-evolving needs of our clients,while always embracing the highestethical standards. Our fundamentalprinciples have guided this approach.

As we focus on the next quarter century,BlackRock’s Global Executive Committeehas incorporated these principles into

a pledge to all of our stakeholders —and to ourselves — that reafrms ourcommitment to helping our clientsbuild better nancial futures. Workingtogether, we pledge to:

• Perform to the highest ethical,investment and operational standards

• Understand our clients’ real-worldneeds and build solutions to meet them

• Lead by harnessing our collectiveintelligence and global reach

• Advocate as a responsible voiceand valued source of informationfor investors

• Evolve to stay ahead of change anddeliver for clients, shareholdersand employees

In this annual report, we highlight howBlackRock fullled this pledge in 2013 —and how we will redouble our efforts todo so in the years to come.

POLICY DRIVING MARKETS

Despite global political volatility, uneveneconomic recovery and uncertainty overmonetary policy, the S&P 500 Index rose30% in 2013, its largest annual advancesince 1997. Equities in developed regionsoutpaced those in emerging marketsas well as commodities at a historic rate,while the end of a three-decade bull

market in bonds produced losses inlong-duration xed income. This marketbehavior highlighted the importancenot only of being invested, but also oftaking a balanced approach.

A core belief at BlackRock is thatpatient, long-term investing is the bestpath to nancial success, and 2013again conrmed the risk to investors ofremaining on the sidelines. Those whosteadfastly invested in a diversiedportfolio were rewarded. Those who wereindecisive or tried to time the marketmissed another opportunity to improvetheir nancial position.

We remain believers in global equitymarkets. Developed markets continuetheir recovery and, while emerging marketperformance has lagged materially,those economies retain their role assubstantial long-term drivers of growth.

Yet market performance remainsstubbornly tied to political outcomes.In recent years, central bank policy inthe United States, Europe and Japanhas been a dominant factor in generatingasset appreciation and aiding globaleconomic recovery. Today, the impactof monetary policy tools on economicgrowth is diminishing, portending greatervolatility, given the unpredictability of


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political activity in many parts of the world.As the rst months of 2014 highlighted,geopolitical instability remains elevatedand investor condence is likely to betested further.

The next stage in expanding economicand market growth will depend on thewillingness and ability of governments andthe private sector to provide leadership .To broaden recovery, strengthen marketsand, in particular, tackle persistentunemployment, political leaders mustlook beyond monetary policy and enactscal and economic reforms thataddress the structural challenges to theglobal economy and the investmentlandscape. Leadership must also involvechanging the culture of savers worldwideto encourage long-term investing andsmart, measured risk-taking in themarkets, which creates the potentialto generate growth and meaningfulincome over time.

Two-thirds of theassets that BlackRockmanages supportpeople in their retire-ment, and we have

an obligation to be astrong voice in publicdebate on how govern-ments, corporationsand individuals cancon front the challengesof longer lives.

BlackRock will continue to respondforcefully as well — both within ourbusiness and as a responsible advocatefor the investors we serve. Our rm todayreects our vision of how the investmentenvironment was likely to change overtime. Now, as we build the BlackRock of

tomorrow, we are keenly focused onunderstanding the mega-trends shapingthe future and offering our best thinkingon solutions to policymakers, opinionleaders and investors.

We’re Living Longer — Yet UnpreparedForemost among these global trends,and perhaps the dening investmentchallenge of our age, is increasinglongevity — and the lack of preparednessfor it. In the United States, for example,only 40% of Americans take part in anyretirement plan. Savings for pre-retireesaverage just $12,000. Fewer workersaround the world participate in denedbenet plans, and too many of thoseare underfunded. The scal costs ofsupporting an aging population continueto increase.

Two-thirds of the assets that BlackRock

manages support people in theirretirement, and we have an obligationto be a strong voice in public debate onhow governments, corporations andindividuals can confront the challengesof longer lives. I believe that bold policyideas must be considered, such as thecompulsory retirement savings modelused in Australia’s superannuationsystem. Pension funds also shouldconsider a broader range of investments,including alternatives and nontraditional

xed income, to achieve the returnsthey need to meet their liabilities.

BlackRock is investing in the tools andtechnology to inform and equip thecurrent generation of savers — and thenext. We continue to evolve our offeringsin the growing category of target datefunds, where we now serve more thaneight million clients through our LifePathfranchise. In 2013, we also introducedour new CoRI index tool, which givespre-retirees a measure of how muchretirement income their savings canprovide and, in early 2014, launched venew funds linked to the CoRI index.

LIFEPATH DROVE

$24BIN TARGET DATENET FLOWS IN 2013,AN ORGANICGROWTH RATE OF

38%

DEFINED CONTRIBUTIONASSETS UNDERMANAGEMENT OF

$526B

$117 BIN LONG TERMNET FLOWS


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Recognizing the social, political andnancial signicance of longevity,we recently created a dedicated U.S.Retirement group to harness BlackRock’sbest ideas and drive innovative solutionsin this area.

The Infrastructure Opportunity Exacerbating the longevity crisis isthe slow pace of job creation in manyeconomies. Addressing persistentunemployment requires a multifacetedresponse by governments andbusinesses, and one of the mostpromising opportunities is investmentto meet the massive global need forinfrastructure. Around the world,the energy revolution; the aging ofroads, rail links, airports and othertransportation resources; and socialand economic development all callfor trillions of dollars of infrastructurespending in the coming decades.

Yet action on this front remains elusive,if not ambiguous. Governments simplycannot afford to self-fund infrastructureprojects, demonstrating the need toharness the capacity of the private sector.

Private institutional investors with lowrisk tolerances and long-term liabilitystructures, such as pension funds andinsurance companies, are ideally suitedto put money to work in yield-oriented,multidecade projects that providecurrent income and can act as a naturalination hedge. Attracting that investmentrequires matching institutional demandand capital with attractive projects in jurisdictions where regulatory, legal andpolitical conditions are conducive tosuccessful public-private partnerships.

Countries that get it right will positionthemselves for job creation and economicgrowth and create signicant competitive

advantages for their economies. This isan important area for BlackRock to workwith both policymakers and institutionalinvestors to facilitate bringing theinfrastructure opportunity to scale.

Technology and Our Collective IntelligenceBlackRock’s business is centered onmanaging risk and delivering investmentsolutions, but I believe that todayall companies are in the technologybusiness. The pace of innovation isaccelerating, with dramatic implicationsfor markets and society. The sheermass of information available and thespeed of access to it are staggering.

Innovation highlights the importance ofmanaging legacy systems. Companiesthat do not take advantage of innovationcan become caught up in an increasinglycomplex and risky tangle of technology.Winners will be those rms that arediligent about breaking down andintegrating systems and establishinga common technology language.

The question now is which rms —and which societies — will seize theopportunity and build transformationalbusiness models based on technologyinnovation. BlackRock is committed towinning in a world reshaped by technology.As our company has grown, so hasour technological leadership. We haveleveraged that leadership to foster aculture of collective intelligence thatallows us to share our best thinkingnot only with each other but also withour clients around the world.

BlackRock Solutions (“BRS”), includingour Aladdin, Financial Markets Advisoryand Client Solutions groups, brings tobear a unique set of analytical tools andsophisticated advisory services thatelevates the level of our interaction anddeepens the relationships and trust webuild with clients.

BRS is pervasive in our conversationswith clients, helping them understandrisk across their entire portfolios

and develop customized, long-terminvestment strategies. It has alsoallowed us to be a valued advisor toinstitutions, governments and centralbanks confronting critical economicand nancial challenges.

INFRASTRUCTURE DEBT& RENEWABLE POWERINFRASTRUCTUREEQUITY CONTRIBUTED TO

$6BIN ILLIQUIDALTERNATIVESCOMMITMENTS

AL AD DIN REVENUEIN MILLIONS

14%CAGR

20102009 2011 2012 2013

2 4 5 2

8 0 3

2 3

3 7 4

4 2 1


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Outcome-Oriented InvestingBlackRock’s analytical and risk manage-ment capabilities are more importantthan ever in today’s investing environment.For decades, investors took comfort ina simple paradigm: when stocks go up,bonds go down. The nancial crisis of2008–2009 provided ample evidence thatcorrelation is the enemy of portfolioconstruction, and the post-crisis periodhas been marked by a signicant risein investor preference for uncorrelated,risk-adjusted returns. This is drivingan increased appetite for alternativestrategies and for uncons trainedproducts that offer fund managersgreater exibility in delivering returnsto shareholders.

Solving problems anddelivering outcomesis at the core of whatwe do — and has beensince our founding.

Outcome-oriented investing is aboutlooking beyond relative performance andsolving for future goals — how do clientsearn enough income for retirement inthe current interest rate environment orhow can clients protect themselvesagainst ination concerns? BlackRock’sbroad investment platform positions usto construct and deliver the investmentoutcomes our clients are searching for bycombining active and passive offeringsacross asset classes and leveragingthe analytical and risk managementcapabilities of BlackRock Solutions .

Solving problems and delivering

solutions is at the core of what we do —and has been since our founding. Fromhelping governments and troubledinstitutions work through some of themost challenging issues of the nancial

10%RETAIL ORGANICGROWTH IN 2013VS. 3% I N 2012

crisis, to helping clients move beyondbenchmark-driven investing to generateoutcomes, BlackRock is and will continueto be a partner in building solutions.

The shift to outcome-orientedstrategies is driving the Global Retailgrowth opportunity, as client demandfor packaged solutions, including liquidalternatives, increases. We continueto evolve our product set, enhanceour distribution capabilities and buildour global brand to better deliverBlackRock to our clients.

We are also expanding the proleand capabilities of our leading iShares franchise to take advantage of theincreasing use of ETFs to constructinvestment solutions and the secularshift to passive investing. Clients areturning to iShares to generate alpha

through asset allocation models, as aliquidity tool to manage exposures,as a buy-and-hold investment in theircore portfolios and to access a widevariety of global markets efcientlyand transparently.

ANTICIPATING CHANGE TO DELIVERFOR CLIENTS AND SHAREHOLDERS

Over the years, BlackRock has not just responded to changing times andmarkets but anticipated them by building

breadth and diversity into our platform.As we built our technology and analyticscapabilities, we expanded our scopeto meet client needs in a way we believeis unique in the industry. In 2006, weacquired Merrill Lynch InvestmentManagers, which expanded our equitybusiness overnight, forged our globalfootprint and took us into the retailbusiness. Our acquisition of BarclaysGlobal Investors in 2009 introduced usto the passive market through iShares

ETFs and a wide range of institutionalindex offerings.

$103BNET FLOWS INRETAIL/ iSHARES =

88%OF LONG TERMORGANIC GROWTH

43RETAIL/ iSHARES FUNDSEACH GENERATED

$1BIN NET FLOWS,DEMONSTRATINGTHE BREADTH OFOUR PLATFORM


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Our success in building and positioningour platform to take advantage of achanging investment ecosystem drovestrong nancial results in 2013. Weattracted $117.1 billion in long-term netnew ows in 2013, representing a 3.4%organic growth rate. We achieved a 9%increase in revenues to $10.2 billion, a13% rise in adjusted operating earnings

and a 21% increase in adjusted earningsper share versus 2012. We increased ouradjusted operating margin to 41.4%,demonstrating our commitment to rein-vesting in our business for growth whilemaintaining expense discipline. Finally,we returned $2.2 billion to share holdersthrough dividends and share repurchasesand, in January 2014, announced a15% increase in our annual dividend to$7.72 per share.

BlackRock’s growth and consistentnancial performance result from ourcommitment to put clients at the centerof all we do, and understand andanticipate their needs. We will continueto invest in our business to solve forour clients’ investment goals, build ourbrand, enhance our product set anddistribution capabilities and driveorganic growth.

A Commitment to Per formanceInvestment performance remains

the bottom line for investors. The shiftto index and ETF investing reects anappreciation that active managersseeking higher fees must offer valuebeyond replicating a benchmark.However, those who proclaim the endof active management are mistaken.The creation and delivery of excessreturns plays a vital role and only thosemanagers who consistently outperformwill see strong ows in the currentwinner-take-all environment, in which

assets ow to only a handful of top-performing funds.

Superior investment performance hasbeen a signicant area of attention forBlackRock. Following the nancial crisis,we reassessed and restructured muchof our active xed income business.

This effort and our focus on helping ourclients assess risk in their xed incomeportfolios paid off amid the turmoilaffecting those markets in 2013, when82% of our taxable xed income assetsoutperformed their benchmarks or peermedians over the three-year period.Our ability to outperform across ourxed income platform at a time when

others have struggled earned BlackRockthe #1 industry ranking in U.S. RetailActive Fixed Income ows. We believe ourtrack record will provide a meaningfulcompetitive advantage in 2014.

To enhance performance in ourfundamental equities offerings, westreamlined our investment processand recruited top-quality managers toaugment BlackRock’s existing talentbase. Multiple-year track recordswill be the true measure of success,but early results show materialperformance improvement.

BlackRock’s growthand consistent nancialperformance resultfrom our commitmentto put clients at the

center of all we doand understand andanticipate their needs.

We are also taking advantage of ourscale and global reach to generateoutperformance in other ways, includingthrough the BlackRock InvestmentInstitute. The institute brings togetherour 1,600 portfolio managers, analystsand researchers to leverage our bestthinking for clients, through robustdialogue on investment drivers, trendsand opportunities.

NEW FUNDAMEN TALEQUITY MANAGERSOUTPERFORMEDBENCHMARKS BY ANAVERAGE OF MORE THAN

240 BASIS POINTSSINCE JOININGBLACKROCK

201020 09 2011 2012 2013

$ 3

. 1 2 $

4 . 0

0

$ 5

. 5 0

$ 6

. 0 0 $

6 . 7

2

DIVIDEND

21%CAGR


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LEADERSHIP AND ADVOCACY

Core to our mission is that we are aduciary to our clients. This is aresponsibility to help build better nancialfutures not just for corporations, pensionfunds, endowments and foundations,but for those whose investments weultimately manage — working people,retirees, families saving for college and

entrepreneurs starting businesses. It isimperative that we not only provide thebest investment advice and performancepossible, but also that we take a leadershiprole to advocate on behalf of theconstituencies we and our clients serve.

Promoting Investor-Friendly RegulationIn the face of signicant changes inthe regulatory environment, BlackRockis working to promote nancial reformthat increases transparency, protects

investors and facilitates responsiblegrowth of capital markets, whilepreserving consumer choice andmaintaining a level playing eld acrossindustries and products. We have beenactive participants in the public debateon issues ranging from money marketreform and ETF regulation to housingnance, market structure and liquidity.

Many post-crisis regulatory changeshave had a profoundly positive impact onthe safety and soundness of the globalnancial industry. However, we mustprotect against poor policy decisions andunintended consequences that can takedecades to rectify and potentially harmthe economy, businesses and investors.For example, we strongly believe that, inthe case of asset managers, regulationshould be focused where the risk occurs —at the product and practice level. Assetmanagers are agents, not principals. Weact as duciaries on behalf of our clients.

We agree that additional regulationof products and practices may benecessary to promote transparencyand stability and improve the nancialecosystem, but we believe the mosteffective regulatory action will focus onthose activities that pose actual risk.Across the rm we will continue to takea leadership role in driving constructive

change to increase the safety andsoundness of the nancial system.

BlackRock is workingto promote nancialreform that increasestransparency, protectsinvestors and facilitatesresponsible growth ofcapital markets, whilepreserving consumerchoice and maintaininga level playing eldacross industries andproducts.

Engaging for Better GovernanceBlackRock’s ownership position incompanies across geographies andindustries positions us to advocate forcorporate change on behalf of our clients.We believe that a sound corporategovernance framework promotes strongleadership by boards of directorsand prudent management practices,contributes to the long-term successof companies and leads to betterrisk-adjusted returns for investors.To that end, in 2013 we engaged withapproximately 1,400 companies oncorporate governance, including onsocial, environmental and ethical

ENGAGED WITH

1,4 0 0COMPANIES ONCORPORATEGOVERNANCE

VOTED ATMORE THAN

14,000SHAREHOLDERMEETINGS IN85 MARKETS


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issues, and voted at more than 14,000shareholder meetings in 85 marketsto protect and enhance the valueof our investments. We believe thatdirect engagement with management,rather than headline-grabbing publicpronouncements, are the most effectiveway to drive change. We will continueto challenge the management of the

companies in which we invest to engagewith us directly on governance issues.

EVOLVING TO LEAD FORTHE NEXT 25 YEARS

Much has changed over the rst 25 yearsof BlackRock’s existence. Our clientschanged, our competitors changed,the landscape changed. All we canpredict for certain is that change willaccelerate in the years to come. So as weembark on the next 25 years, we will

continue to evolve and align our offeringswith invest ment trends and marketopportunities to meet the needs andexpectations of our clients.

Evolving our platform in this mannerwill preserve our ability to deliverfor our clients, which will translateinto continued value creation for ourshareholders. We are committed toinvesting to drive organic growth andprudently managing the trade-offsbetween growth and margin, whilemaintaining a balanced approach tocapital management. Our pledge to youis that we will succeed in the pursuit ofthese goals with the same clear mission,leadership and ethical standards onwhich our reputation has been built.

Just as importantly, we will continueto invest in our people. Our more than11,400 employees are the core ofBlackRock — and I want to thank themfor their abiding determination to do

the right thing in every situation, everyday. We are committed to developingour talent and fostering an environmentin which all of our people can thrive both

personally and professionally. We willcontinue to challenge employees toquestion the status quo, shape the worldof tomorrow and never be afraid to failin pursuit of our objectives.

I also want to recognize the role thatBlackRock’s Board of Directors has playedin the continued growth and success ofthe company. Just as the company hasevolved, so too has our Board in pursuitof strong corporate governance andexcellence. We were pleased to welcomeour two newest directors to the Boardin 2013: Pamela Daley, former seniorexecutive at the General ElectricCompany, and Cheryl D. Mills, a lawyerwith diverse experience in public policy,international diplomacy and economicdevelopment. Sadly, 2013 also saw thepassing of our long-time director, DennisDammerman, who is dearly missed byhis many friends at BlackRock. We alsodeeply appreciate the service of JamesRohr and Thomas Montag, who, aftermany years of service to the Board, willcomplete their service at the 2014 AnnualMeeting of Shareholders. I am indebtedto all the members of our Board for theirrm engagement, collective wisdom,expert guidance and diligent oversight.

If the last 25 years are any indication, thefuture comes quickly in our business. I am

condent that we have the capabilities,culture and people in place to stay aheadof our evolving industry and the markets,and to create value for our clients,our shareholders and our employees.

Sincerely,

Laurence D. FinkChairman and Chief Executive Ofcer

CLIENTS IN

100+COUNTRIES

11,400EMPLOYEES INMORE THAN

30COUNTRIES


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BOARD OF DIRECTORSABDLATIF Y. AL HAMAD* 4,5 Director General/Chairman of the Board of DirectorsArab Fund for Economic and Social Development

MATHIS CABIALL AVETTA* 1,4,5Vice Chairman of the BoardSwiss Re

PAMELA DALEY*Former Senior Vice President ofCorporate Business DevelopmentGeneral Electric Company

WILLIAM S. DEMCHAK5President and Chief Executive OfcerThe PNC Financial Services Group, Inc.

JESSICA EINHORN* 5Former DeanPaul H. Nitze School of Advanced InternationalStudies (SAIS) at The Johns Hopkins University

LAURENCE D. FINK2Chairman and Chief Executive OfcerBlackRock, Inc.

FABRIZIO FREDA* 4President and Chief Executive OfcerThe Estée Lauder Companies, Inc.

MURRY S. GERBER* 1,2,3,5Former Chairman and Chief Executive OfcerEQT Corporation

JAMES GROSFELD* 3,4Former Chairman and Chief Executive Ofcer

Pulte Homes, Inc.

ROBERT S. KAPITOPresidentBlackRock, Inc.

DAVID H. KOMANSKY* 2,3Former Chairman and Chief Executive OfcerMerrill Lynch & Co., Inc.

SIR DERYCK MAUGHAN* 2,3,5Senior AdvisorKohlberg Kravis Roberts

CHERYL D. MILLS*Former Counselor and Chief of Staffto Secretary of State Hillary Clinton

THOMAS K. MONTAG5Co-Chief Operating OfcerBank of America

THOMAS H. O’BRIEN* 1,2,4Former Chairman and Chief Executive OfcerThe PNC Financial Services Group, Inc.

JAMES E. ROHR2Executive ChairmanThe PNC Financial Services Group, Inc.

IVAN G. SEIDENBERG* 1,4Former Chairman of the Boardand Chief Executive OfcerVerizon Communications

MARCO ANTONIO SLIM DOMIT* 1Chairman of the Board of DirectorsGrupo Financiero Inbursa

JOHN VARLEY* 1Former Chief ExecutiveBarclays PLC

SUSAN L. WAGNER5Former Vice ChairmanBlackRock, Inc.

Committees:

(1) Audit(2) Executive(3) Management Development & Compensation(4) Nominating & Governance(5) Risk

*Independent Director


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IMPORTANT NOTESOPINIONSOpinions expressed through page 20 are those ofBlackRock, Inc. as of March 2014 and are subject to change.

BLACKROCK DATA POINTSAll data through page 20 reect full-year 2013 results ordata as of December 31, 2013, unless otherwise noted.Organic growth for 2013 is dened as full-year net owsdivided by assets under management (AUM) for the entirerm, a particular client segment or particular product as ofDecember 31, 2012. Long-term product offerings include

active and passive strategies across equity, xed income,multi-asset and alternatives, and exclude AUM and owsfrom the Cash Management and Advisory businesses.

GAAP AND AS ADJUSTED RESULTSSee pages 32–34 of the 10-K for an explanation of the useof Non-GAAP Financial Measures.

PERFORMANCE NOTESPast performance is not indicative of future results.Investing involves risk, including possible loss of principal.

Except as specied, the performance information shownis as of December 31, 2013, and is based on preliminarydata available at that time. The performance data shownreect information for all actively and passively managedequity and xed income accounts, including U.S.registered investment companies, European-domiciledretail funds and separate accounts for which performancedata are available, including performance data forhigh-net-worth accounts available as of November 30,2013. The performance data do not include accountsterminated prior to December 31, 2013, and accounts forwhich data have not yet been veried. If such accountshad been included, the performance data provided mayhave substantially differed from those shown.

Performance comparisons shown are gross-of-fees forU.S. retail, institutional and high-net-worth separateaccounts, as well as EMEA institutional separateaccounts, and net-of-fee for European-domiciled retailfunds. The performance tracking shown for institutionalindex accounts is based on gross-of-fee performanceand includes all institutional accounts and all iShares funds globally using an index strategy. AUM informationis based on AUM available as of December 31, 2013,for each account or fund in the asset class shownwithout adjustment for overlapping management of

the same account or fund. Fund performance reectsthe reinvestment of dividends and distributions. Theinformation reported may differ slightly from that reportedpreviously due to the increased number of accounts thathave been veried since the last performance disclosure.BlackRock does not consider these differences to bematerial. The source of performance information and peermedians is BlackRock, Inc. and is based in part on datafrom Lipper Inc. for U.S. funds and Morningstar, Inc. fornon-U.S. funds.

A restructuring of BlackRock’s fundamental equity teamresulted in several portfolio management stafng

changes, which occurred between September 30, 2011,and February 28, 2013. References to investmentperformance since new fundamental equity managers joined BlackRock refer to this time frame.



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BLACKROCK, INC.FORM 10 KTABLE OF CONTENTSPART I

1 Item 1 Business

16 Item 1a Risk Factors

25 Item 1b Unresolved Staff Comments25 Item 2 Properties

25 Item 3 Legal Proceedings

25 Item 4 Mine Safety Disclosures

PART II

26 Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters andIssuer Purchases of Equity Securities

27 Item 6 Selected Financial Data

29 Item 7 Management’s Discussion and Analysis of Financial Conditionand Results of Operations

58 Item 7a Quantitative and Qualitative Disclosures about Market Risk

59 Item 8 Financial Statements and Supplemental Data

59 Item 9 Changes in and Disagreements with Accountants on Accounting andFinancial Disclosure

59 Item 9a Controls and Procedures

62 Item 9b Other Information

PART III62 Item 10 Directors, Executive Ofcers and Corporate Governance

62 Item 11 Executive Compensation

62 Item 12 Security Ownership of Certain Benecial Owners and Management andRelated Stockholder Matters

62 Item 13 Certain Relationships and Related Transactions, and Director Independence

62 Item 14 Principal Accountant Fees and Services

PART IV

62 Item 15 Exhibits and Financial Statement Schedules

66 Signatures

The following contains information from BlackRock’s Form 10-K as led on February 28, 2014.


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PART I

Item 1. Business

OVERVIEW

BlackRock, Inc. (NYSE: BLK; together, with its subsidiaries,unless the context otherwise indicates, “BlackRock” or the“Company”) is the world’s largest publicly traded investmentmanagement firm with employees in more than 30 countrieswho serve clients in over 100 countries across the globe. Weprovide a broad range of investment and risk managementservices and had $4.324 trillion of assets undermanagement (“AUM”) at December 31, 2013. Our clientsinclude retail, including high net worth, and institutionalinvestors, comprised of pension funds, official institutions,

endowments, insurance companies, corporations, financialinstitutions, central banks and sovereign wealth funds. TheCompany is highly regulated and serves its clients as afiduciary. We do not engage in proprietary trading activitiesthat could conflict with the interests of our clients.

Our unique platform enables us to offer active and passiveproducts and risk management capabilities to developtailored solutions for clients. Our product range includessingle- and multi-asset portfolios investing in equities, fixedincome, alternatives and/or money market instruments. Weoffer our products directly and through intermediaries in avariety of vehicles, including open-end and closed-endmutual funds, iShares ® exchange-traded funds (“ETFs”) andother exchange-traded products (together with ETFs,“ETPs”), collective investment funds and separate accounts.We also offer our BlackRock Solutions ® (“BRS”) riskmanagement and advisory services primarily to institutionalinvestors.

BlackRock is an independent, publicly traded company, withno single majority shareholder and over two-thirds of itsBoard of Directors consisting of independent directors. AtDecember 31, 2013, The PNC Financial Services Group, Inc.(“PNC”) held 20.9% of BlackRock’s voting common stock and21.9% of BlackRock’s capital stock, which includesoutstanding common stock and nonvoting preferred stock.

Management seeks to achieve attractive returns forstockholders over time by, among other things, capitalizingon the following factors:

• the Company’s diversified active and passive productofferings, which enhance its ability to offer a variety oftraditional and alternative investment products acrossthe risk spectrum and to tailor single- and multi-assetinvestment solutions to address specific client needs;

• the Company’s focus on strong performance providingalpha for active products and limited or no tracking

error for passive products;• the Company’s longstanding commitment to risk

management and the continued development of, andincreased interest in, BRS products and services;

• the Company’s positioning in the face of macrochallenges driving trends in investor behavior, includingthe secular shift to passive investingand ETPs, a focuson income and retirement, and barbelling of risk usingpassive and active products, including alternatives;

• the Company’s global presence and commitment tobest practices around the world, with approximately

48% of employees outside the United States supportinglocal investment capabilities and serving clients, andapproximately 44% of total AUM managed for clientsdomiciled outside the United States; and

• the growing recognition of the global BlackRock brand,and the depth and breadth of the Company’sintellectualcapital.

BlackRock operates in a global marketplace characterizedby a high degree of market volatility and economicuncertainty, factors that can significantly affect earningsand stockholder returns in any given period.

The Company’s ability to increase revenue, earnings andstockholder value over time is predicated on its ability togenerate new business, including business in BRS productsand services. New business efforts are dependent onBlackRock’s ability to achieve clients’ investment objectivesin a manner consistent with their risk preferences and todeliver excellent client service. All of these efforts requirethe commitment and contributions of BlackRock employees.Accordingly, the ability to attract, develop and retaintalented professionals is critical to the Company’s long-termsuccess.

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FINANCIAL HIGHLIGHTS

SelectedGAAP Financial Results

(in millions,except per share data) 2013 2012 2011 2010 2009 20085-YearCAGR(4)

Total revenue $ 10,180 $ 9,337 $ 9,081 $ 8,612 $ 4,700 $ 5,064 15%Operating income $ 3,857 $ 3,524 $ 3,249 $ 2,998 $ 1,278 $ 1,593 19%Operating margin 37.9% 37.7% 35.8% 34.8% 27.2% 31.5% 4%Nonoperating income (expense) (1) $ 97 $ (36) $ (116) $ 36 $ (28) $ (422) (175%)Net income attributable to BlackRock, Inc. $ 2,932 $ 2,458 $ 2,337 $ 2,063 $ 875 $ 784 30%Diluted earnings per common share $ 16.87 $ 13.79 $ 12.37 $ 10.55 $ 6.11 $ 5.78 24%

Selected Non-GAAP Financial Results

(in millions,except per share data) 2013 2012 2011 2010 2009 20085-YearCAGR(4)

As adjusted (2):

Operating income $ 4,024 $ 3,574 $ 3,392 $ 3,167 $ 1,570 $ 1,662 19%Operating margin (3) 41.4% 40.4% 39.7% 39.3% 38.2% 38.7% 1%Nonoperating income (expense) (1) $ 7 $ (42) $ (113) $ 25 $ (46) $ (384) (145%)Net income attributable to BlackRock, Inc. $ 2,882 $ 2,438 $ 2,239 $ 2,139 $ 1,021 $ 856 27%Diluted earnings per common share $ 16.58 $ 13.68 $ 11.85 $ 10.94 $ 7.13 $ 6.30 21%

(1) Netof net income(loss) attributable to noncontrolling interests (“NCI”) (redeemable andnonredeemable).

(2) BlackRockreports its financial resultsin accordance with accounting principles generally accepted in the United States (“GAAP”); however,management believes evaluatingthe Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financialmeasures.Management reviews non-GAAP financial measures to assess ongoing operationsand, forthe reasons describedbelow,considers them tobe effective indicators, for both management and investors, of BlackRock’s financial performanceover time.BlackRock’smanagement does notadvocate that investorsconsider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared inaccordance withGAAP.GAAP reported resultsinclude certainsignificant items, theafter-taximpact of which management deems nonrecurring,recurring infrequently or transactions that ultimately willnot impact BlackRock’s book value and, therefore, areexcluded in calculating as adjusted

results.

Seereconciliation to GAAP measures in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures, for further informationon as adjusted items for 2013, 2012 and 2011. Operating income, as adjusted, for 2009 excludedcertainexpenses incurred related to theintegration of theacquisition of Barclays Global Investors(“BGI”), as well as advisory fees, legal fees andconsultingtransaction expenses related to theacquisition of BGIfrom Barclays on December 1, 2009 (the “BGI Transaction”), and restructuringcharges. Operating income, as adjusted, for 2008 excluded restructuring charges. The portion of compensationexpense associated with certain long-term incentive plans (“LTIP”) funded or to be funded through share distributions to participants of BlackRock stock held by PNCand a MerrillLynchcash compensation contribution has alsobeen excluded because these charges do not impact BlackRock’s book value.Compensation expenseassociated with appreciation (depreciation) on investments related to certain BlackRockdeferred compensation plans has been excluded fromoperating and nonoperating income, as adjusted, as returns on investments setaside forthese plans, which substantially offset this expense, arereported in nonoperating income(expense).

(3) Operating incomeused formeasuring operating margin, as adjusted, isequal to operating income, as adjusted, excluding the impact of closed-endfund launch costs and related commissions. Management believes the exclusion of such costs and related commissions is useful because thesecosts can fluctuate considerably and revenues associated with theexpenditure of these costs will not fully impact the Company’s resultsuntil futureperiods. Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to related parties andother third parties.Management believes the exclusion of such costs is useful because it creates consistency in the treatmentfor certaincontractsfor similar services,which dueto the terms of thecontacts, areaccounted forunder GAAP on a net basis within investment advisory,administration fees and securitieslending revenue. Amortization of deferred sales commissions is excluded from revenue used for operating margin measurement, as adjusted,because such costs, over time, substantially offset distribution feerevenue the Company earns. In addition, in 2008, revenue used for operatingmargin, as adjusted, excluded reimbursableproperty management compensation, which representedcompensation and benefits paid to personnelof MetricProperty Management, Inc. (“Metric”), a subsidiary of BlackRockRealtyAdvisors, Inc. (“Realty”). Prior to thetransfer in 2008 to a third party,these employeeswere retained on Metric’s payrollwhen certain properties were acquired by Realty’s clients. Therelated compensation and benefitswere fully reimbursed by Realty’s clients andhave been excluded from revenue used for operating margin, as adjusted, because they did not bear aneconomic cost to BlackRock.

Netincomeattributable to BlackRock,Inc., as adjusted, and diluted earnings percommonshare, as adjusted exclude the after-tax impact of theitems listed above and also includethe effecton deferred income taxexpense attributable to changes in corporateincometax rates as a result ofincometax law changes and a state tax election.

(4) Percentage represents compounded annual growth rate (“CAGR”).

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ASSETS UNDER MANAGEMENT

A summary of the Company’s AUM by product type for the years 2008 through 2013 is presented below:

AUM by Product TypeDecember 31,

(in millions) 2013 2012 2011 2010 2009 2008

Equity $ 2,317,695 $ 1,845,501 $ 1,560,106 $ 1,694,467 $ 1,536,055 $ 203,292Fixed income 1,242,186 1,259,322 1,247,722 1,141,324 1,055,627 481,365Multi-asset 341,214 267,748 225,170 185,587 142,029 77,516Alternatives 111,114 109,795 104,948 109,738 102,101 61,544

Long-term 4,012,209 3 ,482,366 3 ,137,946 3 ,131,116 2 ,835,812 823,717Cash management 275,554 263,743 254,665 279,175 349,277 338,439Advisory 36,325 45,479 120,070 150,677 161,167 144,995

Total $ 4,324,088 $ 3,791,588 $ 3,512,681 $ 3,560,968 $ 3,346,256 $ 1,307,151

Component Changes in AUM by Product TypeFive Years Ended December 31,2013

(in millions) 12/31/2008NetNewBusiness

AcquiredAUM, net(1)

Market / FX 12/31/2013

5-YearCAGR

Equity $ 203,292 $ 260,503 $ 1,061,801 $ 792,099 $ 2,317,695 63%Fixed income 481,365 17,779 502,988 240,054 1,242,186 21%Multi-asset 77,516 139,077 45,907 78,714 341,214 35%Alternatives 61,544 (19,722) 68,351 941 111,114 13%

Long-term 823,717 397,637 1,679,047 1,111,808 4,012,209 37%Cash management 338,439 (118,341) 53,616 1,840 275,554 (4%)Advisory 144,995 (112,263) (10) 3,603 36,325 (24%)

Total $ 1,307,151 $ 167,033 $ 1,732,653 $ 1,117,251 $ 4,324,088 27%

(1) Amounts include acquisition adjustments and reclassification of certain AUMacquiredfrom BGI in December 2009, Swiss Re Private Equity Partners(“SRPEP”) in September 2012, Claymore Investments, Inc. (“Claymore”) in March2012, CreditSuisse’s ETF franchise (“Credit SuisseETF Transaction”)in July 2013, MGPA in October2013 and other reclassifications to conform to current period combined AUMpolicyand presentation. Amountsalsoinclude BGI merger-related outflows dueto manager concentrationconsiderations prior to the third quarter of 2011 and outflows from scientificactiveequityperformance prior to the secondquarter of 2011. As a result of client investment manager concentration limits and the scientificactiveequity performance,outflows were expected to occur for a periodof time subsequent to the close of thetransaction.

AUM represents the broad ranges of financialassets wemanage for clients on a discretionary basis pursuant toinvestment management agreements that are expected tocontinue for at least 12 months. In general, reported AUMreflects the valuation methodology that corresponds to thebasis used for billing (for example, net asset value). ReportedAUM does not include assets for which we provide risk

management or other forms of non-discretionary advice, orassets that we are retained to manage on a short-term,temporary basis.

Investment management fees are typically expressed as apercentage of AUM. We also earn performance fees oncertain portfolios relative to an agreed-upon benchmark orreturn hurdle. On some products, we also may earnsecurities lending fees. In addition, BlackRock offers itsproprietary Aladdin ® investment system as well as risk

management, outsourcing and advisory services, toinstitutional investors under the BRS name. Revenue forthese services may be based on several criteria includingvalue of positions, number of users, accomplishment ofspecific deliverables or other objectives.

At December 31, 2013, total AUM was $4.324 trillion,representing a CAGR of 27% over the last five years. AUMgrowth during the period was achieved through thecombination of net market valuation gains, net new businessand acquisitions, including BGI, which added approximately$1.844 trillion of AUM in December 2009, Claymore andSRPEP, which added $13.7 billion of AUM in 2012 and CreditSuisse and MGPA, which added $26.9 billion of AUM in 2013.These acquisitions significantly changed our AUM mix, frompredominantly active fixed income and equity in 2008 to abroadly diversified product range, as described below.

The Company considers the categorization of its AUM by client type, product type, investment style and client region useful tounderstanding its business. The following discussion of the Company’s AUM will be organized as follows:

Client Type Product Type Client Region

▫ Retail ▫ Equity ▫ Americas▫ iShares ▫ Fixed Income ▫ Europe, the Middle East and Africa (“EMEA”)▫ Institutional ▫ Multi-asset ▫ Asia-Pacific

▫ Alternatives▫ Cash Management

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CLIENT TYPE

We serve a diverse mix of institutionaland retail investorsworldwide. Clients include tax-exempt institutions, such asdefined benefit and defined contribution pension plans,charities, foundations and endowments; official institutions,such as central banks, sovereign wealth funds,supranationals and other government entities; taxableinstitutions, including insurance companies, financialinstitutions, corporations and third-party fund sponsors;and retail investors. iShares is presented as a separateclient type below, with investments in iShares by institutionsand retail clients excluded from figures and discussions intheir respective sections below.

Our organizational structure was designed to ensure thatstrong investment performance is our highest priority, andthat we best align with our clients’ needs to capitalize onbroader industry trends. Furthermore, our structurefacilitates strong teamwork globally across both functions

and regions in order to enhance our ability to leverage bestpractices to serve our clients and continue to develop ourtalent. Specifically, the client side of our business isorganized into two groups: one comprising Retail andiShares and another comprising Institutionaland BlackRockSolutions . The separation of the client functions into thesetwo teams allows us to focus on the unique needs of theseclient groups by bringing the full capabilities of the firm tobear in an organized, cohesive approach. Additionally, ourinvestments functions are split into five distinct strategies:Alpha, Beta, Multi-Asset, Alternatives and Trading/Liquidity.

AUMby Investment Style & ClientType

December 31, 2013(in millions) Retail iShares Institutional Total

Active $ 458,833 $ — $ 932,410 $ 1,391,243Non-ETF Index 28,944 — 1,677,650 1,706,594iShares — 914,372 — 914,372

Long-term 487,777 914,372 2,610,060 4,012,209Cash management 44,327 — 231,227 275,554Advisory 11 — 36,314 36,325

Total AUM $ 532,115 $ 914,372 $ 2,877,601 $ 4,324,088

Retail Investors

Component Changes in AUM— Retail

(in millions) 12/31/2012Net NewBusiness Adjustments (1) Acquisitions (2) Market/ FX 12/31/2013

Equity $ 164,748 $ 3,641 $ 13,066 $ — $ 21,580 $ 203,035Fixed income 138,425 14,197 3,897 — (5,044) 151,475Multi-asset class 90,626 14,821 2,663 — 8,944 117,054Alternatives 9,685 6,145 — 136 247 16,213

Long-term retail $ 403,484 $ 38,804 $ 19,626 $ 136 $ 25,727 $ 487,777

(1) Amounts include $19.6 billionof AUMrelated to fund ranges reclassed from institutional to retail.

(2) Amounts representAUM acquired in the MGPA acquisition in October 2013.

BlackRock serves retail investors globally through separateaccounts, open-end and closed-end funds, unit trusts andprivate investment funds. Retail investors are servedprincipally through intermediaries, including broker-dealers,banks, trust companies, insurance companies andindependent financial advisors. Clients invest primarily inmutual funds, which totaled $402.2 billion, or 82%, of retaillong-term AUM at year-end, with the remainder invested inprivate investment funds and separately managed accounts(“SMAs”). The majority (94%) of long-term retail AUM isinvested in active products, although this is impacted by thefact that iShares is shown separately. Retail represented

12% of long-term AUM at December 31, 2013 and 34% oflong-term base fees for 2013.

The client base is also diversified geographically, with 70%of long-term AUM managed for investors based in theAmericas, 24% in EMEA and 6% in Asia-Pacific at year-end2013.

• U.S. retail long-term net inflows of $21.3 billion, or 7%organic growth, were driven by flows into incomeproducts, with investors’ continued attraction to yield in

a low rate environment, and a growing appreciation forduration risk. Multi-asset class products led flows with$10.0 billion of net inflows, driven by demand for ourflagship Global Allocationand Multi-Asset Incomefunds. Fixed income net inflows of $9.4 billion reflectedgrowing interest in unconstrained fixed income, with ourStrategic Income Opportunities fund raising $6.9 billion.Our suite of six retail alternatives mutual fundscontinued to gain traction, raising $4.6 billion of netinflows, largely driven by our zero-duration liquid GlobalLong/Short Credit fund. This range of alternativesmutual funds now stands at $5.6 billion in AUM, and we

are committed to broadening the distribution ofalternatives funds to bring institutional-qualityalternatives products to retail investors. Net inflowsacross multi-asset class, fixed income and alternativeswere partially offset by equity net outflows of $2.8billion, driven by historical performance-relatedredemptions from U.S. large cap equities, where wehave implemented management changes to better meetour high performance standards. As of December 31,2013, we are the leading U.S. manager by AUM of SMAs,

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the second largest closed-end fund manager and a top-ten manager by AUM and 2013 net flows of long-termopen-end mutual funds 1. In 2013, we were also theleading manager by net flows for long-dated fixedincome mutual funds 1.

• We have fully integrated our legacy retail and iSharesretail distribution teams to create a unified client-facingpresence. As retail clients increasingly use BlackRock’scapabilities in combination — active, alternative andpassive — it is a strategic priority for BlackRock tocoherently deliver these capabilities through oneintegrated team.

• International retail long-term net inflows of $17.5billion, representing 15% organic growth, were positiveacross major regions and diversified across assetclasses. Equity net inflows of $6.4 billion were driven bystrong demand for our top-performing European

Equities franchise as investor risk appetite for thesector improved. Multi-asset class and fixed incomeproducts each generated net inflows of $4.8 billion, asinvestors looked to manage duration and volatility intheir portfolios. In 2013, we were ranked as the thirdlargest cross border fund provider 2. In the UnitedKingdom, we ranked among the five largest fundmanagers 2.

iShares

Component Changes in AUM— iShares

(in millions) 12/31/2012NetNewBusiness Acquisition (1) Market/ FX 12/31/2013

Equity $ 534,648 $ 74,119 $ 13,021 $ 96,347 $ 718,135Fixed income 192,852 (7,450) 1,294 (7,861) 178,835Multi-asset class 869 355 — 86 1,310Alternatives (2) 24,337 (3,053) 1,645 (6,837) 16,092

Total iShares $ 752,706 $ 63,971 $ 15,960 $ 81,735 $ 914,372

(1) Amounts represent $16.0 billion of AUMacquired in theCreditSuisseETF acquisition in July 2013.

(2) Amounts include commodity iShares .

iShares is the leading ETF provider in the world, with$914.4 billion of AUM at December 31, 2013, and was the top

asset gatherer globally in 2013 3 with $64.0 billion of netinflows for an organic growth rate of 8%. Equity net inflowsof $74.1 billionwere driven by flows into funds with broaddeveloped market exposures, partially offset by outflowsfrom emerging markets products. iShares fixed incomeexperienced net outflows of $7.5 billion, as the continuedlow interest rate environment led many liquidity-orientedinvestors to sell long-duration assets, which made up themajority of the iShares fixed income suite. In 2013, welaunched several funds to meet demand from clientsseeking protection in a rising interest rate environment byoffering an expanded product set that includes four new U.S.funds, including short-duration versions of our flagship high

yield and investment grade credit products, and shortmaturity and liquidity income funds. iShares alternatives had$3.1 billion of net outflows predominantly out ofcommodities. iShares represented 23% of long-term AUM atDecember 31, 2013 and 35% of long-term base fees for2013.

iShares offers the most diverse product set in the industrywith 703 ETFs at year-end 2013, and serves the broadestclient base, covering more than 25 countries on fivecontinents. During 2013, iShares continued its dualcommitment to innovation and responsible productstructuring by introducing 42 new ETFs, acquiring CreditSuisse’s 58 ETFs in Europe and entering into a critical newstrategic alliance with Fidelity Investments to deliverFidelity’s more than 10 million clients increased access to

iShares products, tools and support. Our alliance withFidelity Investments and a successful full first year for the

Core Series have deeply expanded our presence andofferings among buy-and-hold investors. Our broad productrange offers investors a precise, transparent and low-costway to tap market returns and gain access to a full range ofasset classes and global markets that have been difficult orexpensive for many investors to access until now, as well asthe liquidity required to make adjustments to theirexposures quickly and cost-efficiently.

• U.S. iShares AUM ended at $655.6 billion with$41.4 billion of net inflows driven by strong demand fordeveloped markets equities and short-duration fixedincome. During the fourth quarter of 2012, we debutedthe Core Series in the United States, designed toprovide the essential building blocks for buy-and-holdinvestors to use in constructing the core of theirportfolio. The Core Series demonstrated solid results inits first full year, raising $20.0 billion in net inflows,primarily in U.S. equities. In the United States, iSharesmaintained its position as the largest ETF provider, with39% share of AUM 3.

• International iShares AUM ended at $258.8 billion withrobust net new business of $22.6 billion led by demandfor European and Japanese equities, as well as adiverse range of fixed income products. At year-end2013, iShares was the largest European ETF provider

with 48% of AUM3.

1 Simfund

2 LipperFERI

3 BlackRock; Bloomberg

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PRODUCT TYPE

Component changes in AUM by product type and investment style for 2013 are presented below.

(in millions) 12/31/2012NetNewBusiness Adjustments (1) Acquisitions (2) Market/ FX 12/31/2013

Equity:Active $ 287,215 $ (15,377) $ — $ — $ 45,424 $ 317,262iShares 534,648 74,119 — 13,021 96,347 718,135

Fixed income:Active 656,331 10,443 — — (14,565) 652,209iShares 192,852 (7,450) — 1,294 (7,861) 178,835

Multi-asset class 267,748 42,298 5,998 — 25,170 341,214Alternatives:

Core 68,367 2,703 — 10,972 2,984 85,026Currency and commodities 41,428 (8,653) — 1,645 (8,332) 26,088

Subtotal 2,048,589 98,083 5,998 26,932 139,167 2,318,769

Non-ETF Index:Equity 1,023,638 10,515 (5,172) — 253,317 1,282,298Fixed income 410,139 8,515 (826) — (6,686) 411,142

Subtotal non-ETF index 1,433,777 19,030 (5,998) — 246,631 1,693,440Long-term 3,482,366 117,113 — 26,932 385,798 4,012,209

Cash management 263,743 10,056 — — 1,755 275,554Advisory 45,479 (7,442) — — (1,712) 36,325

Total AUM $ 3,791,588 $ 119,727 $ — $ 26,932 $ 385,841 $ 4,324,088

(1) Amounts include $6.0 billionof AUMreclassed from non-ETF index equity and fixed income to multi-asset.

(2) Amounts represent $16.0 billion of AUMacquired in theCreditSuisseETF acquisition in July 2013 and $11.0 billion of AUMacquired in theMGPAacquisition in October 2013.

Long-term product offerings include active and passivestrategies. Our active strategies seek to earn attractivereturns in excess of a market benchmark or performancehurdle while maintaining an appropriate risk profile. We offertwo types of active strategies: those that rely primarily onfundamental research and those that utilize primarilyquantitative models to drive portfolio construction. Incontrast, passive strategies seek to closely track the returnsof a corresponding index, generally by investing insubstantially the same underlying securities within the indexor in a subset of those securities selected to approximate asimilar risk and return profile of the index. Passive strategiesinclude both our institutionalnon-ETF index products andiShares ETFs.

Although many clients use both active and passivestrategies, the application of these strategies may differ. Forexample, clients may use index products to gain exposure toa market or asset class. In addition, institutional non-ETFindex assignments tend to be very large (multi-billiondollars) and typically reflect low fee rates. This has thepotential to exaggerate the significance of net flows ininstitutional index products on BlackRock’s revenues andearnings.

Equity

Year-end 2013 equity AUM of $2.318 trillion increased by$472.2 billion, or 26%, from the end of 2012, largely due toflows into U.S. and a range of international equity mandatesreflecting investors’ increased risk appetite and the effect ofhigher market valuations. Equity AUM growth included$69.3 billion in net new business and $13.0 billion in new

assets related to the Credit Suisse ETF acquisition in July2013. Net new business of $69.3 billion was driven by netinflows of $74.1 billion and $10.5 billion into iShares andnon-ETF index accounts, respectively. Passive inflows wereoffset by active net outflows of $15.4 billion, with netoutflows of $9.9 billion and $5.5 billion from fundamentaland scientific active equity products, respectively.

BlackRock’s effective fee rates fluctuate due to changes inAUM mix. Approximately half of BlackRock’s equity AUM istied to internationalmarkets, including emerging markets,which tend to have higher fee rates than similar U.S. equitystrategies. Accordingly, fluctuations in internationalequitymarkets, which do not consistently move in tandem with U.S.markets, may have a greater impact on BlackRock’s effectiveequity fee rates and revenues.

Fixed Income

Fixed income AUM ended 2013 at $1.242 trillion, declining$17.1 billion, or 1%, relative to December 31, 2012. Thedecline in AUM reflected $29.1 billion in market and foreignexchange losses, partially offset by $11.5 billion in net newbusiness and $1.3 billionin new assets related to the CreditSuisse ETF acquisition. In 2013, net new business was led bystrong flows into unconstrained fixed income offerings, such

as our Strategic Income Opportunities fund, which had netinflows of $6.9 billion during the year, despite overallindustry outflows from U.S. bond funds. Fixed income netinflows of $14.8 billion and $8.5 billion into fundamental andnon-ETF index products, respectively, were partially offsetby net outflows of $7.5 billion and $4.3 billion from iSharesand model based strategies, respectively.

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Multi-Asset Class

ComponentChanges in Multi-Asset ClassAUM

(in millions) 12/31/2012NetNewBusiness Adjustments (1) Market/ FX 12/31/2013

Asset allocation and balanced $ 140,160 $ 15,904 $ — $ 13,540 $ 169,604Target date/risk 69,884 26,073 5,998 9,453 111,408Fiduciary 57,704 321 — 2,177 60,202

Multi-asset $ 267,748 $ 42,298 $ 5,998 $ 25,170 $ 341,214

(1) Amounts include $6.0 billionof AUMreclassed from non-ETF index equity and fixed income to multi-asset.

BlackRock’s multi-asset class team manages a variety ofbalanced funds and bespoke mandates for a diversifiedclient base that leverages our broad investment expertise inglobal equities, currencies, bonds and commodities, and ourextensive risk management capabilities. Investmentsolutions might include a combination of long-only portfoliosand alternative investments as well as tactical assetallocation overlays.

Flows reflected ongoing institutionaldemand for oursolutions-based advice with $27.1 billion, or 64%, of netinflows coming from institutionalclients. Definedcontribution plans of institutionalclients remained asignificant driver of flows, and contributed $20.5 billion toinstitutional multi-asset class net new business in 2013,primarily into target date and target risk product offerings.Retail net inflows of $14.8 billion were driven by particulardemand for our Global Allocation suite, which saw$6.3 billion of net inflows, and our Multi-Asset Income fundwhich raised $4.1 billion in 2013.

The Company’s multi-asset strategies include the following:

• Asset allocation and balanced products represented50% of multi-asset class AUM at year-end, with growthin AUM driven by net new business of $15.9 billion.These strategies combine equity, fixed income andalternative components for investors seeking a tailoredsolution relative to a specific benchmark and within arisk budget. In certain cases, these strategies seek to

minimize downside risk through diversification,derivatives strategies and tactical asset allocationdecisions. Flagship products in this category include ourGlobal Allocationand Multi-Asset Income suites.

• Target date and target risk products grew 37%

organically in 2013. Institutional investors represented90% of target date and target risk AUM, with definedcontribution plans accounting for over 80% of AUM. Theremaining 10% of target date and target risk AUMconsisted of retail client investments. Flows were drivenby defined contribution investments in our LifePath andLifePath Retirement Income ® offerings, and included$10.4 billion of assets related to two large LifePathopen-architecture assignments where we providecustomized asset allocation glidepaths, direct assetmanagement and model the use of third-partymanagers. LifePath products utilize a proprietary assetallocation model that seeks to balance risk and return

over an investment horizon based on the investor’sexpected retirement timing.

• Fiduciary management services are complex mandatesin which pension plan sponsors or endowments andfoundations retain BlackRock to assume responsibilityfor some or all aspects of plan management. Thesecustomized services require strong partnership with theclients’ investment staff and trustees in order to tailorinvestment strategies to meet client-specific riskbudgets and return objectives.

Alternatives

Component Changes in Alternatives AUM

(in millions) 12/31/2012NetNewBusiness Acquisitions (1) Market/ FX 12/31/2013

Core:Hedge Funds $ 26,636 $ 4,440 $ — $ 1,102 $ 32,178Funds of Funds 29,083 (1,358) — 1,111 28,836Real Estate and Hard Assets 12,648 (379) 10,972 771 24,012

Subtotal Core 68,367 2,703 10,972 2,984 85,026Currency and commodities 41,428 (8,653) 1,645 (8,332) 26,088

Alternatives $ 109,795 $ (5,950) $ 12,617 $ (5,348) $ 111,114

(1) Amounts representAUM acquired in the Credit Suisse ETFacquisition in July 2013 and AUMacquired in theMGPA acquisition in October2013.

The BlackRock Alternative Investors (“BAI”) group coordinatesour alternative investment efforts, including productmanagement, business development and client service. Ouralternatives products fall into two main categories — coreand currency and commodities. Core includes hedge funds,funds of funds (hedge funds and private equity), real estateand hard asset offerings. The products offered under the BAIumbrella are described below.

We continued to make significant investments in ouralternatives platform as demonstrated by our acquisition ofMGPA, which doubled the size of our real estate investmentadvisory platform in addition to extending our real estatedebt and equity investment capabilities to Asia-Pacific andEurope, and the build out of our alternatives retail platform,which now stands at $16.2 billion in AUM. We believe that asalternatives become more conventional and investors adapt

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their asset allocation strategies to best meet theirinvestment objectives, they will further increase their use ofalternative investments to complement core holdings, andas a top 10 alternative provider 4 our highly diversified$111.1 billion alternatives franchise is well positioned to

meet growing demand from both institutionaland retailinvestors.

Core.

• Hedge Funds net inflows of $4.4 billion were led by netinflows of $5.9 billion into single-strategy hedge funds.Single-strategy net inflows were driven by net inflows of$4.6 billion into retail alternative mutual funds, pacedby our zero-duration liquid Global Long/Short Creditfund. Single-strategy net inflows were offset by returnof capital of $2.5 billion on opportunistic funds, largelydue to a partial liquidation of an opportunistic 2007vintage closed-end mortgage fund. Hedge fund AUMincludes a variety of single-strategy, multi-strategy, andglobal macro, as well as portable alpha, distressed andopportunistic offerings. Products include both open-end hedge funds and similar products, and closed-endfunds created to take advantage of specificopportunities over a defined, often longer-terminvestment horizon.

• Funds of Funds AUM included $16.9 billionin funds ofhedge funds and hybrid vehicles and $11.9 billion inprivate equity funds of funds. Net outflows of $1.4billion were predominantly from funds of hedge funds.

• Real Estate and Hard Assets AUM grew 90% comparedto year-end 2012, primarily due to $11.0 billion in newassets from the acquisition of MGPA. Offerings includehigh yield debt and core, value-added and opportunisticequity portfolios and renewable power funds. Wecontinued to grow our real estate platform and productofferings with the acquisition of MGPA.

During 2013, we secured $6 billion of alternativescommitments in offerings including infrastructure, strategiccredit and funds of funds. The majority of thesecommitments are unfunded and are expected to be deployedin future quarters.

blackrock 2013 annual report

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