QIC Inside Investor Relations Volume 45: Introduction in Foreign Institutional Investors – Blackrock
Source: BlackRock
For any listed company or investor relations officers, it is crucial for the company to understand who the investors are and their investment strategies to efficiently conduct investor meetings and benchmarking. In our previous volume of Inside Investor Relations, we introduced you to some of Taiwan’s key foreign institutional investors such as Schroder Investment Management, Franklin Templeton, Nikko Asset Management, Allianz Global Investors, and Matthews Asia. In this volume, we will go into a deep dive on another important foreign institutional investor in Taiwan – Blackrock.
Founded in 1988, BlackRock is a U.S. multinational investment management firm based in New York City. It first started off as a risk management and fixed income institutional asset management firm, went public in 1999 and acquired Merrill Lynch Investment Managers (MLIM) in 2006, thus expanding into equity, multi-asset and investment services. In 2009 Barclays sold its iShares (ETFs, active investments, and indexes) to Blackrock, the largest acquisition in the asset management industry, cementing BlackRock as the largest asset manager by asset under management (AUM).
BlackRock is the World’s largest asset management, risk management, and advisory services firm. As of January 2022, BlackRock had US$10 trillion in AUM, representing approximately 40% of U.S. GDP. The firm operates globally with 70 offices in 30 countries and clients in over 100 countries. Its primary focus is on investment management, risk management, and financial advisory services for institutional and retail clients. Well known funds from BlackRock includes: BlackRock Global Allocation Fund, BlackRock World Mining Trust, BlackRock Latin American Fund, BlackRock Emerging Europe Fund, BlackRock World Energy Fund, and BlackRock Global Funds – Sustainable Energy Fund.
BlackRock firmly believes that risk management is the foundation and cornerstone of the firm's entire platform. By combining the advantages of global scale with local services and partnerships, BlackRock offers clients a diverse range of investment solutions through market insight, a culture of information sharing through self-developed technology, and a focus on risk management.
BlackRock: The Industry Leader in ESG
In recent years, the AUM based on sustainable investment strategies has grown rapidly. Blackrock believes that sustainable investment aims to enhance investment performance and that companies selected under the sustainable investment strategy can be more resilient in the face of climate change.
Factors Driving the Growth of ESG Investing:
- Investors are demanding more disclosures from companies and searching for more diverse and sustainable investment solutions.
- Regulatory bodies are placing a greater emphasis on integrating sustainability factors into the investment decision process.
- There is a growing recognition that ESG factors can help identify better-performing assets.
A Sustainable Investment Strategy that incorporates ESG factors:
BlackRock offers both exclusionary and active screening ESG strategies. Exclusion strategies are designed to minimize or exclude companies with increased ESG risk or those that are against the fund values or mandate. Active screening strategies on the other hand focus on adding companies that perform well against ESG metrics. The inclusion of ESG factors means that ESG information is used as a factor in investment decisions, regardless of whether the investment strategy involves sustainable investment. BlackRock’s Stewardship includes direct engagement with companies and voting to create long-term sustainable growth and investment returns.
Source: BlackRock
BlackRock has cemented itself as an industry leader in the ESG Sector. BlackRock ESG Multi-Asset Fund is the first multi-asset offshore fund in Taiwan, investing in companies with an MSCI ESG rating of BBB or higher. The portfolio is constructed via a three-step philosophy of “remove poor performers, retaining good performers, and increasing exposure to the best”, while also excluding ten categories of controversial sectors.
Source: BlackRock
BlackRock’s Investments in Taiwan
According to our research, BlackRock’s investment teams with coverage in Taiwan are situated in the US, UK, Hong Kong, Japan, Canada, and Taiwan. As of August 17th, 2022, BlackRock has investments in 457 Taiwan-listed companies, with a total value exceeding US$30 billion. The top 5 Taiwanese listed companies by investment value are TSMC (2330 TT), Hon Hai (2317 TT), MediaTek (2454 TT), Chunghwa Telecom (2412 TT), and Delta (2308 TT).
Source: QIC database
Source: QIC database
QIC advisors consist of experienced professionals that have worked in major sell-side and buy-side companies. Leveraging our knowledge in industries and relationships with investors, we assist companies and investors to achieve effective two-way communication to enhance shareholder value. QIC also supports our clients with our many years of experience in corporate access services. We plan, schedule and execute tailor-made roadshows and targeted investor events for high-quality corporate clients. If you are interested in learning more about BlackRock or our services, you are welcome to contact us.
Contact: yvonnehuang@qtumic.com