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BlackRock Financial Management, Inc.-blackrock financial management inc

Item 1 Cover Page
BlackRock Financial Management, Inc.
Park Avenue Plaza
55 East 52nd Street
New York, NY 10055
212-810-5300
September 2, 2011
This Brochure provides information about the qualifications and business practices of BlackRock Financial Management, Inc. as
well as certain other affiliated registered investment adviser subsidiaries of BlackRock, Inc. If you have any questions about the
contents of this Brochure, please contact BlackRock Financial Management, Inc. at 212-810-5300. The information in this
Brochure has not been approved or verified by the United States Securities and Exchange Commission ("SEC") or by any state
securities authority.
BlackRock Financial Management, Inc. is registered as an investment adviser with the SEC. Registration as an investment
adviser does not imply any level of skill or training.
Additional information about BlackRock Financial Management, Inc. is available on the SEC's website at
www.adviserinfo.sec.gov.
Item 2 Material Changes
Item 2 Material Changes
As of March 31, 2011, Bank of America1 owned approximately 7.1% of the total capital stock of BlackRock, Inc. Because of its
material interest in BlackRock, Inc., the Brochure described the relationships or arrangements with Bank of America Corporation
and its subsidiaries, including Merrill Lynch and its affiliates, that created possible conflict of interests or the appearance of a
conflict of interest between the Advisers and a client.
On June 1, 2011 BlackRock, Inc. repurchased Bank of America's remaining ownership interest in BlackRock, Inc. (the
"Transaction"). More information about the Transaction can be found at:
http://www2.blackrock.com/global/home/News/PressReleases/index.htm
As a result of the Transaction, this Brochure has been updated to reflect that Bank of America no longer owns any material
interest in BlackRock, Inc. The principal items within the Brochure that were updated include Item 10 ("Other Financial Industry
Activities and Affiliations") and Item 11 ("Code of Ethics, Participation or Interest in Client Transactions and Personal Trading").
Since the last amendment of this Brochure on June 9, 2011, the investment advisory services provided by State Street Research
& Management Company ("SSRM") were reorganized and merged with those of its affiliated adviser, BlackRock Financial
Management, Inc. ("BFM"), effective July 1, 2011. Consequently, a Form ADV-W was filed to withdraw SSRM's registration as
an investment adviser, and the Form ADV for BFM was amended to reflect the succession.
The investment advisory services provided by BlackRock Institutional Management Company ("BIMC") also were reorganized
and merged with those of its affiliated adviser, BlackRock Advisors, LLC ("BAL"), effective July 31, 2011. Consequently, a Form
ADV-W was filed to withdraw BIMC's registration as an investment adviser and the Form ADV for BAL was amended to reflect
the succession.
In addition, BlackRock Investment Management, LLC relocated to 1 University Drive in Princeton, New Jersey in August 2011.
The principal items in this Brochure that are being updated to reflect the changes described above are Item 4 ("Overview of
BlackRock Registered Investment Advisers"), Item 7 ("Types of Clients") and Item 9 ("Disciplinary Information").
1 The shares were owned by and repurchased from Merrill Lynch & Co., Inc. ("Merrill Lynch"), which is a wholly-owned subsidiary of Bank of
America Corporation (together with its subsidiaries, ("Bank of America")).
Page ii
Item 3 Table of Contents
Item 3 Table of Contents
Item 1 Cover Page........................................................................................................................i
Item 2 Material Changes.............................................................................................................ii
Item 3 Table of Contents ...........................................................................................................iii
Item 4 Advisory Business ..........................................................................................................1
OVERVIEW OF BLACKROCK REGISTERED INVESTMENT ADVISERS .................................... 1
ADVISORY SERVICES................................................................................................................... 1
Separately Managed Accounts .................................................................................................................... 3
SERVICES OF AFFILIATES ........................................................................................................... 4
Item 5 Fees and Compensation .................................................................................................5
ADVISORY FEES............................................................................................................................ 5
FEE SCHEDULES........................................................................................................................... 5
US Registered Funds ................................................................................................................................... 5
Private Funds ............................................................................................................................................... 5
Private Investors Accounts........................................................................................................................... 5
Separately Managed Accounts (Other than Private Investors Accounts).................................................... 8
Dual Contract SMA Program Accounts........................................................................................................ 8
TIMING AND PAYMENT OF ADVISORY FEES ............................................................................. 9
OTHER FEES AND EXPENSES..................................................................................................... 9
Item 6 Performance Based Fees and Side-By-Side Management.........................................10
Item 7 Types of Clients.............................................................................................................11
OVERVIEW OF CLIENTS ............................................................................................................. 11
US Registered Funds ................................................................................................................................. 11
Institutional Separate Accounts.................................................................................................................. 12
Private Funds ............................................................................................................................................. 12
Other Pooled Investment Vehicles............................................................................................................. 13
Separately Managed Accounts .................................................................................................................. 13
Item 8 Methods of Analysis, Investment Strategies and Risk of Loss .................................14
FIXED INCOME MANDATES........................................................................................................ 14
EQUITY MANDATES .................................................................................................................... 14
CASH MANAGEMENT MANDATES............................................................................................. 15
ALTERNATIVE MANDATES ......................................................................................................... 15
MULTI-ASSET MANDATES.......................................................................................................... 15
INDEX MANDATES....................................................................................................................... 15
OTHER STRATEGIES .................................................................................................................. 15
Borrowing Arrangements ........................................................................................................................... 15
Risk Management ...................................................................................................................................... 16
INVESTMENT STRATEGY RISKS ............................................................................................... 16
Item 9 Disciplinary Information................................................................................................18
Item 10 Other Financial Industry Activities and Affiliations..................................................19
AFFILIATED BROKER-DEALERS ................................................................................................ 19
Page iii

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