Yeah they have 10 trillion in assets, that doesn't mean they all produce income. For example, Berkshire Hathaway and Tesla stocks are REALLY valuable, and have a place in nearly every growth oriented fund in existence. But they don't pay dividends. Likewise, a lot Blackrock's 10 trillion is tied up in private equity and venture capital, which again, doesn't pay dividends. It's meant to grow in value and then be sold off at a later date.
The biggest thing a lot of people ignore is that there ARE rules to fund managing entities. For example, REITs (Real Estate Investment Trusts) Are required to pay out 90% of their income to the investors, with all employee salaries, etc. being taken out of the remaining 10%. There are similar rules that apply to mutual funds, ETFs, etc.
Black Rock DOES manage a lot of crap, but they don't make a massive amount of money off of it themselves as an entity.
Here's another example. Amazon has a total market value of over a $1 Trillion. Their revenue is a little over $386 Billion, and by the time they pay off their employees, settle annual debts, pay dividends to investors, they only make about $21 Billion. For the record, the reason Amazon has technically higher income is because they aren't a fund and can decide all the payout rules themselves.
https://en.wikipedia.org/wiki/BlackRock
Yes I know that's wikipedia, but that shows my point. Blackrock's revenue is apparently $16 Billion, so I was a billion off. But their income is only $5 billion from ALL of their funds. That's because that $10 Trillion is AUM (assets under management). That's basically a private version of your retirement fund or social security. They don't own those investments, but manage them on behalf of the owners through their various funds and get paid a fee for doing so.
Yeah they have 10 trillion in assets, that doesn't mean they all produce income. For example, Berkshire Hathaway and Tesla stocks are REALLY valuable, and have a place in nearly every growth oriented fund in existence. But they don't pay dividends. Likewise, a lot Blackrock's 10 trillion is tied up in private equity and venture capital, which again, doesn't pay dividends. It's meant to grow in value and then be sold off at a later date.
The biggest thing a lot of people ignore is that there ARE rules to fund managing entities. For example, REITs (Real Estate Investment Trusts) Are required to pay out 90% of their income to the investors, with all employee salaries, etc. being taken out of the remaining 10%. There are similar rules that apply to mutual funds, ETFs, etc.
Black Rock DOES manage a lot of crap, but they don't make a massive amount of money off of it themselves as an entity.
Here's another example. Amazon has a total market value of over a $1 Trillion. They're revenue is a little over $386 Billion, and by the time they pay off their employees, settle annual debts, pay dividends to investors, they only make about $21 Billion. For the record, the reason Amazon has technically higher income is because they aren't a fund and can decide all the payout rules themselves.
https://en.wikipedia.org/wiki/BlackRock
Yes I know that's wikipedia, but that shows my point. Blackrock's revenue is apparently $16 Billion, so I was a billion off. But their income is only $5 billion from ALL of their funds. That's because that $10 Trillion is AUM (assets under management). That's basically a private version of your retirement fund or social security. They don't own those investments, but manage them on behalf of the owners through their various funds and get paid a fee for doing so.
Yeah they have 10 trillion in assets, that doesn't mean they all produce income. For example, Berkshire Hathaway and Tesla stocks are REALLY valuable, and have a place in nearly every growth oriented fund in existence. But they don't pay dividends. Likewise, a lot Blackrock's 10 trillion is tied up in private equity and venture capital, which again, doesn't pay dividends. It's meant to grow in value and then be sold off at a later date.
The biggest thing a lot of people ignore is that there ARE rules to fund managing entities. For example, REITs (Real Estate Investment Trusts) Are required to pay out 90% of their income to the investors, with all employee salaries, etc. being taken out of the remaining 10%. There are similar rules that apply to mutual funds, ETFs, etc.
Black Rock DOES own a lot of crap, but they don't make a massive amount of money off of it themselves as an entity.
Here's another example. Amazon has a total market value of over a $1 Trillion. They're revenue is a little over $386 Billion, and by the time they pay off their employees, settle annual debts, pay dividends to investors, they only make about $21 Billion. For the record, the reason Amazon has technically higher income is because they aren't a fund and can decide all the payout rules themselves.
https://en.wikipedia.org/wiki/BlackRock
Yes I know that's wikipedia, but that shows my point. Blackrock's revenue is apparently $16 Billion, so I was a billion off. But their income is only $5 billion from ALL of their funds. That's because that $10 Trillion is AUM (assets under management). That's basically a private version of your retirement fund or social security. They don't own those investments, but manage them on behalf of the owners through their various funds and get paid a fee for doing so.