Additional Proxy Soliciting Materials (definitive) (defa14a)
March 30 2020 - 4:57PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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LARRY FINKS CHAIRMANS LETTER TO SHAREHOLDERS
To our shareholders,
Larry Finks Chairmans Letter to Shareholders Sunday,
March 29, 2020
When I originally sat down to write this letter, I was in my ofîce, thinking about how to describe the events of 2019 and
what BlackRock achieved last year. Today that seems a distant reality. BlackRocks ofîces globally are nearly empty and instead, I write to you in isolation from home, like millions of other people. Since January, the
coronavirus has overtaken our lives and transformed our world, presenting an unprecedented medical, economic and human challenge. The implications of the coronavirus outbreak for every nation and for our clients, employees and shareholders are
profound, and they will reverberate for years to come.
The virus has taken a severe toll. It has killed or sickened hundreds of thousands, and even for the
healthy, it has dramatically altered daily life and threatened înancial security. For governments, it has presented the astounding challenges of implementing quarantines on a scale never before seen and of responding to the
economic and înancial fallout from them. For the private sector, it has upended how companies operate and the demand for their products and services, with small businesses and their employees invariably shouldering the greatest
burden. And medical professionals, in almost all cases operating with insufficient
supplies and a lack of hospital capacity, are faced with wrenching decisions about how to keep the most people alive. These medical
professionals, on the frontline in this crisis, are todays heroes.
In my 44 years in finance, I have never experienced anything like this. The outbreak has
impacted financial markets with a swiftness and ferocity normally seen only in a classicînancial crisis. In a matter of weeks, global equity benchmarks fell from record highs into a bear market. A market-wide circuit breaker at the
New York Stock Exchange, built to give traders a pause and dampen extreme volatility, was triggered for the îrst time since 1997, then triggered three more times in quick succession. These conditions were exacerbated by record low
liquidity levels in US Treasuries, which serve as a benchmark for pricing risk across the market.
The outbreak has not simply pressured financial markets and
near-term growth: it has sparked a reevaluation of many assumptions about the global economy, such as our infatuation with just-in-time supply chains or our reliance on
international air travel. Even more profoundly, people worldwide are fundamentally rethinking the way we work, shop, travel and gather. When we exit this crisis, the world will be different. Investors psychology will change. Business will
change. Consumption will change. And we will be more deeply reliant on our families and each other to stay safe.
As dramatic as this has been, I do believe that
the economy will recover steadily, in part because this situation lacks some of the obstacles to recovery of a typical financial crisis. Central banks are moving quickly to address problems in credit markets, and governments are now acting
aggressively to enact îscal stimulus. The speed and the shape of these policies are deeply inîuenced by the worlds experience during the global înancial crisis in 2008. I also believe their
actions are likely to be more effective and work more quickly since they are not îghting against the same structural challenges as they were a decade ago.
That is not to say the world is without risk, nor to suggest that the market has reached its bottom. It is impossible to know. There are also signiîcant
challenges ahead for heavily indebted businesses, and if governments are not careful in the design of their stimulus programs, the economic pain from the outbreak will fall disproportionately on the shoulders of the most economically vulnerable
individuals.
Because of the nature of the crisis and its ability to reach us all, we are reminded of our shared humanity as we tackle this outbreak together. To
defeat this crisis, we need a response that cuts across partisan lines and national boundaries.
I have always believed in a long-term view. I have advocated for it in letter after letter. And I believe long-term thinking has never
been more critical than it is today. Companies and investors with a strong sense of purpose and a long-term approach will be better able to navigate this crisis and its aftermath.
At BlackRock, we take a long-term view of markets, and we take a long-term view in the way we run our company. The world will get through this crisis. The economy will recover. And
for those investors who keep their eyes not on the shaky ground at our feet, but on the horizon ahead, there are tremendous opportunities to be had in todays markets.
BlackRocks biggest responsibility now more than ever is to help our clients navigate this market environment and stay focused on long-term returns.
To ensure we could continue to serve clients around the world, despite the pandemic, we rebuilt BlackRock beyond the walls of BlackRock. On many days in recent weeks, we have had
over 90% of our people around the world working from home managing portfolios, serving clients and building technology. This is no small task. Our employees are caring for their families and loved ones while also adjusting to remote work and
the challenges of isolation. Making this transition successful has depended on careful planning and robust technology. But above all, it has depended on BlackRocks strong and deep-seated culture. Our commitment to each other, to our clients
and to our shared sense of purpose has bound us together during this difîcult period and enabled us to continue to serve our clients and our communities.
Since the emergence of coronavirus in mid_January, the BlackRock Investment Institute has devoted itself to helping investors understand the economic and
înancial implications of the outbreak and resulting volatility, hosting numerous calls for thousands of people and publishing a steady stream of research and insights. Our portfolio managers and relationship managers are in close
contact with clients through phone calls and video conferences, making sure that our clients are safe and healthy, that they have the information they need and get prompt answers to their urgent questions.
We continue to help clients position themselves to achieve their long-term objectives, and BlackRocks frequent engagements with these clients over time and our deep
understanding of their purpose enables us to better serve them in times like these. For some clients, the recent sell-off created an attractive opportunity to rebalance into equities. Indeed, many of our
clients even those who generally have a heavy allocation to îxed income due to their risk proîles are looking to increase their equity allocation in this market.
As clients seek to adjust their portfolios in this environment, we are focused on making sure they have the right tools and technology
to do so. iShares® ETFs once again proved to be extremely valuable tools for clients in their portfolios. As markets experienced signiîcant stress related to concerns over the global spread of the virus, ETFs traded in record
volumes, including $1.4 trillion in the US alone, or 37% of all US equity activity compared to a 27% average for 2019. ETFs are serving as tools for price discovery and delivering incremental liquidity and value.
As in past periods of market stress, BlackRock, through our Financial Markets
Advisory practice, is again serving and advising governments as they seek new ways to support the households, businesses and economies of their respective
nations in this unprecedented situation. We are honored to have been selected to assist the Federal Reserve Bank of New York and the Bank of Canada on programs designed to facilitate capital to businesses and support the economy. We will continue to
work with governments around the globe to help them navigate this difîcult period. Work like this focusing our expertise and capabilities on major public challenges is our purpose in action.
BlackRock is able to deliver for our clients during these volatile periods because of the commitment we have placed on resilience: on helping our clients manage risk and building
both an investment platform and a business strategy that can weather the unforeseen.
Resilience is about much more than withstanding a sudden shock to markets it also means understanding and addressing long-term
structural changes. I allocate a large part of my time to meeting with clients around the world, and from my experience, that ability to adapt, to listen to clients and to deliver what they truly need is what continues to drive BlackRocks
success.
This willingness to innovate, to take risks and to confront the biggest challenges is who BlackRock is.
The money we manage belongs to our clients, and we can only serve them if we address how global changes will impact their outcomes. We can only serve our shareholders if we focus
on the long term and constantly evolve our business, driving industry dynamics instead of reacting to them. And we can only serve our full set of stakeholders from our employees to the communities where we operate if we continue to
make a positive contribution to society. Through these times, we remain îrmly committed to our stakeholders by focusing on leading the evolution of asset management.
The Asset Management Landscape
As our industry continues to go through a period of
consolidation, fee compression and technological transformation, at the center of our business strategy is anticipating this change and always evolving the îrm from a position of strength. The biggest change for asset managers will
be how we use technology. In the future, asset managers have to be as good at using technology as anything else they do and as good at it as any tech îrm. It has to be part of who they are. Asset managers will have to fully
integrate technology to connect with clients, generate investment insights, create operational efîciencies and unify their organization on a single platform. And volatility of the markets, and the speed with which they have moved
these past few weeks, reinforces once again how essential technology is to managing risk today.
The decade following the înancial crisis was a positive environment for many asset managers. A strong market backdrop
beneîted the industry and during this time, many managers passed along the beneîts to shareholders by expanding margins and returning capital through dividends and repurchases. Too few, however, invested in
innovation to build resilience and stay ahead of emerging trends that are impacting the industry in full force today.
One of the most important of those trends is
demand from clients for a whole-portfolio approach.
Over the last decade, investors increasingly recognized that portfolio construction, not security selection,
drives the majority of returns. This knowledge helped motivate our 2009 merger with Barclays Global Investors. We knew that combining index and active would beneît our clients and help them build more effective portfolios. The
years since the merger and the academic research on the importance of beta have validated our decision. And this intellectual transformation, in turn, has driven an industry transformation, as investors have increasingly sought out
managers such as BlackRock that have the offerings, technology and client service capabilities to execute a whole-portfolio approach.
This approach is even more
important in todays environment, with interest rates back at historic lows, the price of oil down more than 50% since the beginning of the year and equities globally in bear market territory. As clients grapple with these developments, they
are turning to us because we understand and can serve their entire portfolio with a full spectrum of investing capabilities.
The way we connect with clients and
deliver solutions to them is also changing, particularly in the wealth management industry. Much like institutions, retail investors are demanding more transparency, better service and a more portfolio-based approach. Between these expectations and
new regulations, distribution models in the US and Europe are moving away from commissions toward fee-based advisory models. Additionally, we saw direct
brokerage platforms eliminate trading commissions in the US. This is a good thing for more people, because it makes it easier for them
to invest and beneît from the growth of capital markets. But it will also fundamentally change the distribution landscape for years to come. Because of these changes, we are having more comprehensive conversations with wealth
managers about delivering investment solutions and risk management and portfolio construction technology that can help them build portfolios at scale for their own clients.
Very few managers apart from BlackRock can offer clients that full set of capabilities. As a result, we are seeing massive consolidation in our industry. Because of the speed of
changes in the world today, asset managers are looking to acquire rather than build many of their capabilities, from product offerings to client bases to distribution networks to technology.
The growth BlackRock has generated and the strength of our client relationships are the fruits of a deliberate and careful corporate strategy. The transformative acquisitions we
have made were done from a position of strength, not under the pressures that many of our competitors are facing. Even then, combining two businesses wasnt easy. But we had the time and the resources to make them work and that enabled us to
build the resilient îrm that clients and shareholders demand.
Total return over the last decade
Source: Factset. The performance graph is not necessarily indicative of future investment performance. Large Cap Traditional Peers represent AB, AMG, BEN, EV, IVZ, LM and TROW.
BlackRocks resilience is especially evident in times like these. Our stock price declined 14%
since the beginning of the year, and although I am by no means happy with this performance, BlackRock is outperforming broader equity
markets and the asset management industry.
Our work is not done. Our strategy for growth is designed to withstand difîcult periods such as
this, and will carry us through this period. As the industry and investment landscape continue to change, we intend to be at the forefront of trends that will shape our ability to grow as a îrm and deliver our clients the best
possible set of outcomes.
BlackRocks Strategy for Long-Term, Resilient Growth
BlackRocks approach to evolution and innovation isnt something we do in bursts or sporadically. Its a constant of our culture. We are always reassessing and
changing our business to see how we can better serve clients, looking for ways to reallocate and seeking new opportunities.
This approach is integrated into every
level of the business and encouraged in every employee. It is overseen by BlackRocks Global Executive Committee, our 19 most senior leaders across the îrm, who dedicate signiîcant time to understanding
the short- and long-term impacts these trends will have on our clients and business. In normal times, we meet as a group on a weekly basis to discuss and debate these topics. More recently, however, because of the severity of the crisis and how
quickly things are moving, BlackRocks Global Executive Committee is meeting daily by videoconference. These meetings cover everything from ensuring we are operating effectively to monitoring and managing the health and safety of our employees
and their families to coming together to address the unique needs of our clients during this time.
While we have adapted and pivoted our primary focus to our
short-term strategy, we continue to examine and develop BlackRocks long-term strategy. We regularly review this strategy with BlackRocks Board of Directors and did so most recently earlier this month.
We have promised our shareholders that we aim to deliver an
aspirational 5% organic growth target over the long term.
Our strategy for achieving this target over the long term is to invest in the primary engines driving BlackRocks growth today and over the next several years: iShares,
illiquid alternatives and technology, innovate in alpha creation and most importantly, continue leading as the whole-portfolio provider to clients by staying ahead of their needs.
ETFs Are a Tool for Every Portfolio
Technology îrms are so successful today
not necessarily because of their underlying technology, but because their platforms create better price disclosure, greater efîciencies and ultimately, more convenience and simplicity for the end user. This is the same reason ETFs
are so successful because they are technology: they bring these same characteristics of transparency, convenience and simplicity to asset management. And during the recent turmoil, the biggest test ETFs have ever faced, they once again proved
their resilience and their ability to increase transparency and price discovery. ETFs have become one of the most important tools in modern înance.
Today, ETFs are being used across many portfolios. In a whole portfolio landscape where investors are focused on outcomes, Ive seen
îrsthand the steady adoption of ETFs by clients as more than just a way to access market cap-weighted index exposures. Our clients are using them as tools for alpha generation, factor
returns, advancing sustainable investing outcomes and more.
The biggest transformation we have seen so far is in îxed income, where ETFs are
transforming and modernizing the $100 trillion bond market itself.
Given how essential bonds are to the global economy as a source of risk management and
returns for investors, as a source of capital for companies and governments the lack of structural innovations to the bond market for many years was surprising. For decades, bond markets largely stayed the same. And in fact, investing in
bonds became more difficult
following the global înancial crisis, as greater regulatory oversight and capital restrictions
signiîcantly reduced banks balance sheets and as a result, bond inventories.
Fixed income ETFs have seen such tremendous growth precisely
because bond markets have historically been so difîcult to access. Even a decade ago, bond trading was very similar to when I îrst started my career at First Boston in 1976: buying and selling bonds was all done
over the phone, the difference between the value of the bond and what you paid was sizable, and pricing was opaque and could vary signiîcantly from one broker to another. It was expensive for even the largest institutions to manage
a diversiîed îxed income portfolio, while many individuals could only hold bonds through high-priced, actively managed mutual funds.
We saw the potential of îxed income ETFs when we launched the îrst iShares îxed income ETF nearly two decades ago. We
recognized that through an exchange-traded basket of îxed income securities, clients could quickly access (or sell) a diversiîed range of îxed income exposures from treasuries to credit to
emerging market debt all without needing to go to bank balance sheets. And as adoption of îxed income ETFs increases, we are seeing a virtuous cycle at play. The need to price and trade large baskets of bonds has pushed the
industry to develop algorithms that can price thousands of bonds simultaneously and technology to trade electronically. This, in turn, is creating more liquidity, transparency and efîciency in the bond markets for clients. Fixed
income ETFs and iShares are not only essential tools in a modern bond market, but they themselves are helping to drive this modernization.
The
beneît of îxed income ETFs becomes ampliîed in times of market stress. When liquidity disappears in the underlying bond markets, the transparency of an ETF allows clients to price the underlying
bonds. And the ability for buyers and sellers of the ETF to meet directly on exchange, and trade in secondary markets creates an additional layer of liquidity for clients. That capability is why ETFs both in equity and îxed
income are fast becoming investors go-to vehicles for quickly taking off risk exposure in times of market volatility. More and more investors are recognizing these beneîts, and
we saw record îows into our iShares îxed income business last year.
This work is just one part of the iShares growth strategy. We are
investing to create stronger market and trading infrastructure for all ETFs so we can continue delivering quality to our clients. And we continue to expand the way investors use ETFs to access critical exposure and achieve their outcomes.
Sustainable and factor strategies, for example, were for many years high-fee or available only
to large institutions through customized separate accounts. BlackRock is already making these strategies more accessible to more people at better value. We built the industrys largest offering of both sustainable and factor ETFs, because we
believe all investors should have equal access to a better future. There shouldnt be high hurdles for those who want to act, and people should have more choice for how to invest their money. In line with this belief, we have committed to
doubling the number of sustainable ETFs and index mutual funds we offer to more than 150 over the next few years. A New Era for Alpha Generation The rise of ETFs has coincided with a fundamental shift in the culture and process of alpha generation.
We have worked hard at BlackRock since our founding to avoid the star manager culture that has deîned our industry for decades. Alpha remains attainable, but the process for generating insights is also changing. The sheer volume
and rate of growth of publicly available data is creating signiîcant opportunities for investors who can leverage technology to process and analyze it in a consistent, reliable way. Today, clients are demanding greater transparency
and persistent returns, because many have realized they were paying high fees for far too long and not getting the outcomes they needed in their portfolios.
Were in a new era for alpha generation that requires going beyond the old standard: we need to align incentives, increasetransparency and innovate through
technology and product construction.Were in a new era for alpha generation that requires going beyond the oldstandard: we need to align incentives, increase transparency and innovate through technology and product construction.
A key focus area for us is illiquid alternatives. Low yields, a shortage of long-duration instruments and a view that alpha is more
attainable in private markets is driving client demand for illiquid alternatives, particularly from those who need to match long liabilities. Bigger allocations to private markets are a good thing for clients looking for higher, uncorrelated returns
and for asset managers who can deliver on those expectations. BlackRock is launching innovative strategies that set new standards for incentive alignment and address unmet client needs, such as Long Term Private Capital. In a landscape where
competition is intensifying for the best deals (and consequently, the strongest returns), we are leveraging our global footprint and scale to source the highest quality investments for clients. And just as we expanded our ETF offerings to make
investing accessible to more people, were also working on ways to deliver alternative investments in a safe and risk-managed way to more individuals. We are also putting an increased focus on sustainability across our alternatives platform. We
have already built one of the industrys leading renewable power franchises, but we are going further. Our alternatives specialists integrate ESG considerations across the platform in order to help our clients manage risk more effectively and
achieve outperformance. In order to maximize sustainability and to source and manage the best opportunities for our clients, we are also transforming the way that alternatives are managed. Through our acquisition of eFront and its integration into
Aladdin®, we are bringing an unprecedented level of transparency and analytics to alternatives. This capability will provide visibility across asset classes, geography and macro trends, enabling BlackRock and our clients to manage risk and
construct portfolios more comprehensively across public and private markets. Powering Our Business Through Technology Technology has always been central to BlackRocks investment approach, but new advances are deepening the ways in which we can
use it to help clients and improve our own operations. I view technology as an extension of our commitment to meeting client needs and delivering outcomes. It is why we built Aladdin, because asset management is about processing and
understanding information: market data, risk factors, clients objectives and more. Its also why we are constantly working to
evolve the platform to meet the needs of our clients and investment professionals. Evolving Aladdin enables us to better serve clients. Clients are turning to us for a unitied technology platform that can help them see their entire portfolio clearly
and run their businesses more effectively. Were looking to provide clients with better information on the entire portfolio and better tools to analyze that information in short, making Aladdin the language of portfolio construction. And
were bringing these capabilities to wealth managers and financial advisors, because just as iShares makes investing more accessible, Aladdin makes portfolio construction and risk management more accessible to more people. I wrote earlier about
the changing wealth landscape. In a fee-based advisory world, technology that simplies portfolio construction and risk management is more important than ever before for the industry and for clients looking to
achieve financial well-being. Preparing for the Future of Asset Management ETFs, illiquid alternatives and technology will drive BlackRocks growth this decade. But we cannot just focus on whats happening in front of us. BlackRock has
always dedicated time and resources to taking a step back and looking at our business and our industry beyond five- or even ten-year time horizon, because its
equally important to plant the seeds for the biggest opportunities yet to come.
In January of this year, we took a number of actions to make sustainability our new standard for investing. As I wrote in my 2020 letter
to CEOs, climate change will have a profound impact on our global economic system, from how food is produced, to where people are able to live to how diseases spread globally. These changes will reshape global înance by
driving a signiîcant repricing of risk and assets. And, the pandemic were experiencing now highlights the fragility of the globalized world and the value of sustainable portfolios. Weve seen sustainable portfolios
deliver stronger performance than traditional portfolios during this period. When we emerge from this crisis, and investors rebalance portfolios, we have an opportunity to accelerate into a more sustainable world.
In a January letter to our clients, BlackRocks Global Executive Committee explained why we must place sustainability at the core
of our approach as an investment manager. Since January, we have made substantial progress in executing on many of the commitments outlined in that letter. And, our actions around sustainability remain part of BlackRocks longstanding
commitment to staying ahead of our clients needs and to evolving our îrm as the world around us presents new and uncharted challenges for investors. Our focus on long-term opportunity and structural change is also
reîected in the way we approach growing markets, such as China. I continue to îrmly believe China will be one of
the biggest opportunities for BlackRock over the long term, both for asset managers and investors, despite the uncertainty and
decoupling of global systems were seeing today. We continue to invest in our presence in China and our local investment expertise, so we can help clients navigate this large and growing opportunity as they seek to increase exposure to
Chinas onshore assets. We are also focused on building our presence as a manager for Chinese clients. Chinas $14 trillion asset management industry is the third largest in the world, and as the Chinese market opens to foreign asset
managers, our global reach and whole-portfolio approach will help us become the leading foreign asset manager in China. Our commitment to look into the future, to îght against complacency and to make bold decisions is what will
drive us forward. We invest for the long term because BlackRocks future for our clients, our shareholders, our employees and more depends on it. BlackRocks Culture and Our Commitment to Stakeholders Eight founders
six men and two women started BlackRock thirty-two years ago with a commitment to do things differently. During the stock market crash in 1987, we saw people lose much of their life savings in a matter
of a few hours. These people and institutions were invested in the markets but were not intimately aware of the risks associated with their investments. BlackRock sought to îll a gap by bringing rigorous risk awareness and risk
management to the investment industry. From the earliest days of BlackRock, we were focused on building a strong, uniîed culture: one that is innately focused on the needs of our clients; one that is aware of the value of our
people; one that is powered by a deep commitment to making a positive contribution to society. As weve grown, that culture has continued to fuel BlackRock. It permeates every level of the organization and I truly believe is what ultimately
sets us apart from not only otherînancial services îrms, but other great companies. As businesses have adjusted to operating in a much more virtual environment because of the coronavirus outbreak, staying
connected is more challenging, but also more important than ever before. It requires clear planning, agile use of technology and a great deal of patience and personal îexibility. But most of all, it requires a strong culture. Our
employees are working in a challenging environment and deserve increased support and attention. In recent weeks, we have made a priority of clear and frequent communications from senior leaders as well as a range of internal communications to help
employees connect with each
other and the îrm. Although we are physically separated, we are continuing to strengthen the bonds of the
îrm. That is what enables us to deliver for clients and continue to grow BlackRock. Delivering on our commitments to our clients requires the constant re-investment in our business that
Ive discussed. But re-investment in our business wouldnt mean anything if we did not have the right people to carry it out. Every September, BlackRocks Board dedicates an entire meeting to
talent and succession planning where they review our process and pipeline for key senior leaders. While I have no intentions of leaving BlackRock anytime soon, I also will not be here forever. I have worked closely with my Board of Directors over
the last decade to ensure we have a thoughtful plan and process in place for not only my successor, but every senior leader at the îrm who plays a critical role in BlackRocks day-to-day activities. One of these senior leaders is Barbara Novick, my friend and co-founder. This year, Barbara announced her transition from Vice Chairman to senior
advisor after 32 years of extraordinary accomplishments at BlackRock and as one of the industrys most inîuentialîgures. Barbara led BlackRocks global client group for our îrst two decades,
and the strength of our client relationships today is a testament to her leadership. After the înancial crisis, I asked Barbara to lead our government relations group, knowing that between her command of the issues and her
îerce commitment to investors, no one would be better placed to be a voice for investors on post-crisis policy. About two years ago, as investment stewardship became an increasingly important part of our responsibilities to
stakeholders, I asked Barbara to take on oversight of BlackRocks Investment Stewardship team. Under her leadership, we have continued to grow our stewardship team, its capabilities and its commitment to transparency. As co-founders, Rob Kapito and I are sad to see Barbara transition to a new role. But we are eternally grateful for her contributions to the îrm, our clients and the industry, and we will continue to
rely on her counsel. I also want to thank a longtime director and friend, Ivan Seidenberg, who will be retiring from our Board this year. Ivan epitomizes good corporate governance: he never takes anything for granted and always asks the toughest
questions of me and the îrms senior leaders. He has provided invaluable wisdom and guidance during his tenure, including on key technology issues drawn from a long career in telecommunications. He has been a great partner for
whom I have the utmost respect.
Every one of BlackRocks 16,200 employees must be motivated, equipped and supported to be the best they can be. BlackRock invests
heavily in our people through a variety of programs, including leadership, development and educational opportunities for employees to enhance their skill sets and achieve fulîlling careers. It includes increasing all forms of
diversity throughout our organization because we know diversity drives better performance. Beyond focusing on the numbers, we are ensuring we have the right policies and programs to support a more diverse and inclusive BlackRock community and to
help everyone achieve their highest potential. Toward this end, we also strive to support all aspects of employees physical, emotional and financial well-being so they can stay energized, engaged and inspired. In normal times, as I travel to
see clients around the world, I make sure to meet with our employees in each city I visit, and I see firsthand how deeply each individual at BlackRock lives our purpose. That commitment is what gives me the confidence in our future as a
îrm. BlackRocks employees are active, involved members of our communities, and they help energize and advance our social responsibility to make a positive impact in our society. Through our Social Impact team, BlackRock
invests in ideas and solutions that support a more inclusive and sustainable economy and enable more people to be able to invest in their futures. To support our long-term charitable mission, we announced earlier this year our commitment of
$589 million and the establishment of the BlackRock Foundation. More pressing today, however, is supporting the response to the coronavirus outbreak. That is why BlackRock has committed $50 million in charitable funds to the immediate
relief of those who are most affected right now; to help address the financial hardship and social dislocation that this pandemic brings in its wake, as families grapple with job disruptions, school closures, unexpected childcare and medical costs.
The strength of our culture is what makes our platform more capable and better positioned for the future than it has been at any time in
our history. My co-founders, leadership team and I have spent tremendous time in making sure that we have instilled this deep îduciary culture at BlackRock. When we, or the next generation of
leaders, encounter either difîculty or opportunity, we will be guided by the same principles that we have always followed: doing what is best for clients and what is consistent with living our purpose. That purpose is how we will
continue to deliver long-term growth and value for all of our stakeholders, whose success and BlackRocks success are inextricable. Our shareholders, and the capital they provide, have enabled us to build the best possible investment and
technology platform and to consistently invest for the future. Our investments have enabled us to navigate and lead structural change in our industry and generate stronger, more consistent growth and long-term value. Our employees have powered these
innovations, transforming the asset management industry over the past 32 years and constantly raising the bar for what a manager can deliver for clients. Their commitment to our culture to serving our clients is why we are such a
resilient îrm. Our clients are why we exist. Everything we do is to help them achieve their goals. By helping them invest for the future, by making quality investments more accessible, by helping them navigate crises and by
enabling them to invest for a sustainable future, we achieve our purpose of helping more and more people experience înancial well-being.
And our clients investments power economic growth in communities around the world. Their capital helps create jobs, start
businesses and drive innovation. We must be responsible stewards of that capital, because it is these communities that give us our license to operate. These communities are our communities, and they have been transformed over the past three months.
We have all been impacted in some way by the coronavirus. This pandemic and the collective responsibility required to stem its spread is an important reminder of our shared humanity. We must be uniîed in supporting
each other, protecting our health and constantly strengthening our ability to prepare and respond to crises like this. To all our employees, to our friends, clients, and shareholders, and to all the communities where we operate, please do all you
can to stay healthy and be safe. Sincerely, Laurence D. Fink Chairman and Chief Executive Ofîcer © 2020 BlackRock, Inc. All rights reserved. IMPORTANT NOTES OPINIONS Opinions expressed are those of BlackRock, Inc. as of March
2020 and are subject to change. BLACKROCK DATA POINTS All data reflects as-adjusted full-year 2019 results or is as of December 31, 2019, unless otherwise noted. 2019 organic growth is defined as
full-year 2019 net flows divided by assets under management (AUM) for the entire firm, a particular segment or particular product as of December 31, 2018. Long-term product offerings include active and passive strategies across equity, fixed
income, multi-asset and alternatives, and exclude AUM and flows from the cash management and advisory businesses.
GAAP AND AS ADJUSTED RESULTS See pages 3738 of the 10K for an explanation of the use of NonGAAP Financial Measures and a reconciliation
to GAAP. ADDITIONAL INFORMATION AND WHERE TO FIND IT BlackRock, Inc. (the Company), its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies from shareholders in
connection with the Companys 2020 Annual Meeting of Shareholders (the 2020 Annual Meeting). The Company plans to île a proxy statement with the Securities and Exchange Commission (the SEC) in
connection with the solicitation of proxies for the 2020 Annual Meeting (the 2020 Proxy Statement). Additional information regarding the identity of these potential participants and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the 2020 Proxy Statement and other materials to be filed with the SEC in connection with the 2020 Annual Meeting. This information can also be found in the Companys definitive proxy statement for its
2019 Annual Meeting of Stockholders (the 2019 Proxy Statement), filed with the SEC on April 12, 2019, or the Annual Report on Form 10 K for the year ended December 31, 2018, filed with the SEC on February 28, 2020 (the
Form 10 K). To the extent holdings of the Companys securities have changed since the amounts printed in the 2019 Proxy Statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with
the SEC. SHAREHOLDERS ARE URGED TO READ THE 2020 PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), 2019 PROXY STATEMENT, FORM 10 K AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY HAS FILED OR WILL FILE WITH THE SEC BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain, free of charge, copies of the 2020 Proxy Statement (when filed), 2019 Proxy Statement, Form 10 K and any other documents filed or to be filed by the Company with the
SEC in connection with the 2020 Annual Meeting at the SECs website (http://www.sec.gov) or at the Companys website (http://www.blackrock.com) or by writing to the Companys Secretary at BlackRock, Inc., 40 East 52nd Street, New
York, New York 10022.
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