Institutional Investors Competitive Landscape

Part
01
of three
Part
01

BlackRock

As a global firm, BlackRock has 70 offices in 30 countries; it combines several benefits of global reach with localized investment services and relationships serving over 100 countries (106 approximately). Additional details into the competitive landscape of BlackRock are accessible via this link.

1. COMPANY BACKGROUND

2. KEY PRODUCTS

3. APPROACH

  • The exchange-traded funds (ETF) of BlackRock strategically tracks the Barclays US Aggregate Bond Index, which is the leading yardstick for United States bond performance.
  • BlackRock funds are managed as passive ETFs strategically designed to reduce total fund costs.
  • BlackRock investment strategies that have acquired domestic bliss for it include the "alpha and beta — exclusionary insider argot for active and index, respectively."

4. COMPETITIVE ADVANTAGE

  • With lower investment fees than their counterparts, BlackRock iShares Core S&P 500 ETF gives investors access to large United States companies.
  • The iShares Core U.S. Aggregate Bond ETF is a successful product of BlackRock Inc. (NYSE: BLK) as one of its successful "iShares ETF series."
  • The BlackRock iShares ETF series is backed by all the resources of the largest money manager in the globe and doesn't lack any recognition or marketing.
  • According to CNBC, BlackRock is the issuer of the largest ETFs in the United States with assets worth $1.5 trillion.
  • BlackRock's iShares currently dominate flows for the American ETF business and manages close to $4 trillion.
  • Additional details into the competitive landscape of BlackRock are accessible via this link.

5. BLACKROCK MESSAGING LINK

6. COMPETITIVE ADVANTAGE

  • With lower investment fees than their counterparts, BlackRock iShares Core S&P 500 ETF gives investors access to large United States companies.
  • The iShares Core U.S. Aggregate Bond ETF is a successful product of BlackRock Inc. (NYSE: BLK) as one of its successful "iShares ETF series."
  • The BlackRock iShares ETF series is backed by all the resources of the largest money manager in the globe and doesn't lack any recognition or marketing.
  • According to CNBC, BlackRock is the issuer of the largest ETFs in the United States with assets worth $1.5 trillion.
  • BlackRock's iShares currently dominate flows for the American ETF business and manages close to $4 trillion.

7. KEY MESSAGING

  • From its recent communications/press releases, BlackRock seems focused on alternative investments in institutions.
  • According to the Financial Times, the most significant change that has occurred with BlackRock is about alternative investors.
  • BlackRock recently proved its commitment to alternative investment and decided to purchase eFront, an alternative investment company, for $1.3b billion.
  • BlackRock recently overhauled its management ranks, promoted a new batch of management executives in a shake-up of its business "alternatives."
  • In 2018, BlackRock's message to investors, as shown in a New York Times press release was: "Contribute to Society, or Risk Losing Our Support."
  • A letter from the CEO of BlackRock in January 2019 on the evolution of corporate America revealed that "society is increasingly looking to companies" for their contribution.
  • The January 2019 message has the same tagline as that of 2018 for BlackRock on contributing to society.
  • By April 2019, following a change in management, it seems BlackRock messaging has changed to alternative investments.

METHODOLOGY

Our research team scoured through press releases, financial publications, the website of BlackRock, among other resources for the competitive landscape of BlackRock detailing its background, products, approach, competitive advantage, and key messaging. None of the uncovered reports contained such comprehensive details in one piece. We were able to uncover the number of years the company has provided investment services and the key products of BlackRock through a straightforward method.

Research through BlackRock web pages for its overall approach/strategy around institutional investment management did not uncover any useful insights. BlackRock web publications have content relevant to the subsidiaries in the United States and other parts of the world. We researched through financial and investment trade publications such as Investopedia for overall approach/strategy around institutional investment management specific to the United States. Insights uncovered were relevant to institutional investment management strategies and their advantages. These were obtained by researching through Investopedia and CNBC for how BlackRock stands out from others in their industry as competitive advantage revealed BlackRock's iShares currently dominate flows for the American ETF business and manages close to $4 trillion among other competitive advantages.

To gain insights into the key messaging of BlackRock, we studied through credible Financial Times publications, NY Times publication, among other publications and provided screenshots where needed. We researched for patterns or phrases that seemed repeated across several communications of BlackRock as well as those tagged explicitly as messages/messaging. We concluded that as of 2018, "Contribute to Society, or Risk Losing Our Support" was the messaging of BlackRock as of 2018 since it was published and quoted as messaging. We also assumed that up to January 2019 when the CEO of BlackRock sent a letter to companies; the tagline was still "contribution" as the letter insisted that "society is increasingly looking to companies" for their contribution.

When the BlackRock management team composition was altered in April 2019, it seems BlackRock messaging also changed to alternative investments. This assumption was made because the alternative investment message became prominent in Black Rock messaging after April 019. Below are observations.
(1) BlackRock seems focused on alternative investments in institutions.
(2) According to the Financial Times, the most significant change that has occurred with BlackRock is about alternative investors.
(3) BlackRock recently proved its commitment to alternative investment and decided to purchase eFront, an alternative investment company, for $1.3b billion.
(4) BlackRock recently overhauled its management ranks, promoted a new batch of management executives in a shake-up of its business "alternatives."
Part
02
of three
Part
02

PGIM

We have added the requested information on PGIM's institutional investment products and services in rows 3 – 9, column D of the attached spreadsheet. PGIM is one of the top 10 global asset managers with over $1.2 trillion of assets under management and operating through eight businesses. One of the main competitive advantages of PGIM is its decentralized regional office network that offers additional insights into local and regional markets. Below you will find some of the findings of our research.

PGIM'S BACKGROUND AND KEY PRODUCTS

  • PGIM is a leading global asset management firm with over $1.2 trillion of assets under management (AUM) and 140 years of operational experience.
  • Founded and headquartered in Newark, New Jersey, the firm has more than 1,200 investment professionals in 37 locations in 15 countries across four continents
  • Among the eight, except for PGIM Investments that focuses on retail investors, all other businesses focus on institutional investments.

Listed below are its businesses with the respective total assets under management:
  • PGIM Fixed Income [AUM $776 Billion]
  • PGIM Real Estate [AUM $72.5 Billion]
  • Jennison Associates [AUM $176.4 Billion]
  • QMA [AUM $121.8 Billion]
  • Prudential Capital Group [AUM $86.5 Billion]
  • PGIM Real Estate Finance [AUM $65.3 Billion]
  • PGIM Investments [AUM $110 Billion]
  • PGIM Global Partners [AUM $94.3 Billion]
  • Some products/vehicles that operate in these businesses are Large Cap Growth Equity, Equity Indexing, Small- and Mid-Cap Equity, Global Leveraged Finance, Municipal Bonds, Mutual Funds, Agricultural Debt, Global Real Estate Securities, Bank Loans, Mezzanine, Privately Placed Debt, etc.

STRATEGY, COMPETITIVE ADVANTAGE, AND KEY MESSAGING

  • One of the strategies of PGIM is to invest in a diversified portfolio of fixed income securities, including U.S. government securities, mortgage-related securities, corporate debt, and foreign securities.
  • The approach the firm adopts to achieve this is by doing fundamental research in the credit markets, performing quantitative analysis in the U.S. government and mortgage markets, and rigorous technical and relative value analysis.
  • The group's decentralized regional office network provides an advantage to its professionals with the potential to gain detailed insights into local, regional, and industry cycles.
  • “Contrary to popular sentiment, the disruption unleashed by technological change has spread well beyond Silicon Valley and will ultimately reshape every industry in the global economy. The implications will radically transform investment opportunity across asset classes and geographies” says Taimur Hyat, PGIM’s chief strategy officer.
Part
03
of three
Part
03

PIMCO

PIMCO is positioned as an authority in fixed income investments. It is well-known for its intellectual capital, global intelligence, and data analytics capabilities. Additional information pertaining to the company has been populated in the attached spreadsheet.

SUMMARY

  • PIMCO is a 48-year old firm with 17 offices across the Americas, Europe, and Asia.
  • Most of the products it offers are fixed income type. It is a leader in the fixed investment space.
  • Investments vehicles:
    • Mutual Funds
    • ETFs
    • Internal Funds
    • Closed-end Funds
    • Managed Accounts
  • PIMCO has a top down plus bottom up approach to investing. It gathers insights through its annual Secular forums and Cyclical forums and does its own ground level risk assessment.
  • PIMCO's strengths are its intellectual capital, global intelligence, data-analytics capabilities, and consultative relationship building skills.
  • PIMCO's tagline is "Your Global Investment Authority". It is building a brand image of being a socially responsible company.
  • PIMCO's CSR initiatives focus on hunger and gender equality.
Sources
Sources

From Part 02
Quotes
  • "What does PGIM truly stand for? With a powerful multi-manager model, PGIM is built on the strength and stability of a 140-year legacy. Developing deep expertise in managing liabilities, we bring a long-term perspective, having weathered multiple market cycles, and see opportunity in periods of disruption."
Quotes
  • "At PGIM, we see alpha in our distinctive multi-manager model, which enables independent asset management businesses to specialize by asset classes and investment approach. Each business maintains its own investment culture, singularly focused on delivering investment returns for our clients."
Quotes
  • "The Core Plus Fixed Income Strategy seeks total return by investing in a diversified portfolio of fixed income securities, including U.S. government securities, mortgagerelated securities, corporate debt, and foreign securities. "
Quotes
  • "Our Competitive Advantage: Relationships, Capital, Consistency"
Quotes
  • "Contrary to popular sentiment, the disruption unleashed by technological change has spread well beyond Silicon Valley and will ultimately reshape every industry in the global economy. The implications will radically transform investment opportunity across asset classes and geographies."