BlackRock’s top shareholder sells out
PNC Financial, BlackRock’s top shareholder, is to sell its 22% stake in the investment management company.
PNC Financial, BlackRock’s top shareholder, has said that it will sell its 22% stake in the investment management company, which is currently worth $17bn, says the Financial Times. BlackRock’s share price has outperformed its listed US fund-management peers for years as the company has “grown and diversified its revenues, in part by expanding into technology”. PNC’s stock price jumped by 6% as investors in the bank welcomed the “long awaited” move, which comes with “tax advantages” that may disappear in the near future. It will also allow it to bolster its balance sheet and “pursue potential acquisitions”.
PNC may be leaving BlackRock for good, but the investment, which cost it just $240m in 1995, has already produced “a steady stream of fees and profits from the asset manager’s robust growth”, say Dawn Lim and Orla McCaffrey in The Wall Street Journal. More broadly, the rise of BlackRock, which manages $6.5trn in assets, is also a sign of how asset managers “have gained ground on the biggest Wall Street banks”. Its reach spans markets from exchange-traded funds to private equity.
PNC’s decision to sell its stake in BlackRock removes a regulatory “headache” for both companies, says Antony Currie on Breakingviews. Still, even after this sale, BlackRock’s sheer size means that it could still face calls “for greater scrutiny”. What’s more, by selling its stake, PNC is “giving up a diversifying income stream that accounted for 15% of earnings last year”; BlackRock is losing a big shareholder whose support it “could count on”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrency
According to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
By Chris Newlands Published
-
Investing for children this Christmas – five ideas
It might not come with a shiny ribbon, but an investment fund could be the gift that keeps on giving. We share five ideas if you are investing for children this Christmas.
By Katie Williams Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
By Ruth Emery Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published
-
UK recession: How to protect your portfolio
As the UK recession is confirmed, we look at ways to protect your wealth.
By Henry Sandercock Last updated