BofA® Global Capital Management will Transfer Investment Management
Responsibilities for Approximately $87 billion* of Client Assets
Transaction Strengthens Cash-Distribution Relationship
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. and Bank of America’s asset management business, BofA®
Global Capital Management have entered an agreement to transfer
investment management responsibilities of approximately $87 billion of
AUM currently managed by BofA® Global Capital Management to BlackRock.
Through BofA® Global Capital Management, clients currently have access
to a suite of taxable and tax-exempt money market funds; a U.S. dollar
offshore fund; and customized separate account strategies.
The transaction will combine BlackRock’s global cash management
expertise and product suite with the strength of BofA® Global Capital
Management’s client relationships, resulting in a platform of high
quality, global liquidity investment solutions accessible to a broader
spectrum of clients. Upon closing, BlackRock’s global cash management
platform is expected grow to approximately $370 billion in assets under
management, based on current asset levels. BlackRock will continue to
enjoy a strong distribution partnership with Bank of America and will
have expanded access to several broad distribution channels.
"Expanding our partnership with Bank of America presents a tremendous
growth opportunity for BlackRock’s cash management business. This
partnership allows us to further leverage our global scale,
comprehensive product suite and best-in-class risk management
capabilities to serve a new universe of clients,” said Tom Callahan,
BlackRock’s Co-head of global cash management. “At a time of tremendous
change in the cash management industry, this alliance underscores
BlackRock's commitment to market leadership in delivering outstanding
liquidity solutions to our clients."
“BlackRock and existing BofA® Global Capital Management clients will
benefit from a combined platform with greater scale and global reach,”
said Rich Hoerner, BlackRock’s Co-head of global cash management.
“Additional scale will better enable BlackRock to continue to manage
client balances of various sizes and investment time horizons.”
“BlackRock is a best-in-class liquidity solutions provider with a
demonstrated ability to deliver on clients’ needs for liquidity and
yield,” said Michael Pelzar, President of BofA® Global Capital
Management. “Our selection of BlackRock was made after careful
consideration of our clients’ needs, our long-standing relationship with
BlackRock, and their demonstrated ability to provide a comprehensive
range of global liquidity management solutions.”
Both BlackRock and BofA® Global Capital Management are fully committed
to continuing excellent service for BofA® Global Capital Management’s
cash management clients and will work in partnership to ensure a
seamless transition.
The transaction is expected to close in the first half of 2016 and is
subject to fund boards, BofA® Global Capital Management’s fund
shareholders and regulatory approvals. The financial impact of the
transaction is not material to BlackRock earnings. Terms were not
disclosed.
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At September
30, 2015, BlackRock’s AUM was $4.506 trillion. BlackRock helps clients
around the world meet their goals and overcome challenges with a range
of products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. As of September 30, 2015, the firm had approximately 12,900
employees in more than 30 countries and a major presence in key global
markets, including North and South America, Europe, Asia, Australia and
the Middle East and Africa. For additional information, please visit the
Company’s website at www.blackrock.com
| Twitter: @blackrock_news | Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
*Source: Bank of America as of September 30, 2015. BofA® Global Capital
Management managed assets consist of assets under the discretionary
management of BofA Advisors, LLC, an SEC-registered investment advisor
and indirect, wholly owned subsidiary of Bank of America Corporation.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006010/en/
US Media:
BlackRock, Inc.
Tara McDonnell, 212-810-5337
tara.mcdonnell@blackrock.com
Source: BlackRock, Inc.