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.
“Additional scale will better enable BlackRock to continue to manage client balances of various sizes and investment time horizons.”
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.
