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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is Masters in

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Speaker 1: Business with Barry Ritholts on Bloomberg Radio.

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Speaker 2: This week on the podcast Wow What Can I Say?

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Speaker 2: Jamie Majera is head of BlackRock's US wealth advisory business

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Speaker 2: as well as running their retirement business. Blackrock is the

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Speaker 2: twelve trillion dollar investment giant, the biggest asset manager in

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Speaker 2: the world. Jamie has been working for the firm effectively

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Speaker 2: since two thousand and one, where she began at Merrill

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Speaker 2: Lynch Investment Managers, which was merged with Blackrock in six

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Speaker 2: She's risen through the ranks and has really seen every

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Speaker 2: aspect of the wealth management and product services, everything from

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Speaker 2: ey shares to their Alpha products to alternate lives. She

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Speaker 2: has quite a fascinating history, and there are a few

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Speaker 2: people better able to describe and discuss how the wealth

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Speaker 2: management business is changing and where it's going than her.

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Speaker 2: I found this conversation to be fascinating, and I think

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Speaker 2: you will also, with no further ado, Black Rocks head

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Speaker 2: of US wealth advisory business, Jamie Majera.

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Speaker 3: It is so good to be here.

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Speaker 2: It's so good to have you. I've been looking forward

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Speaker 2: to this conversation. But I want to before we get

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Speaker 2: up to the US Wealth advisory business and retirement business

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Speaker 2: of Black Rock, let's talk a little bit about your background.

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Speaker 2: You go to University of Pennsylvania undergraduate. Would you study?

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Speaker 2: What was the plan?

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Speaker 4: So?

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Speaker 3: I studied psychology. I went to University of Pennsylvania. My

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Speaker 3: brother went there as well. My sister went there as well,

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Speaker 3: psychology major. I didn't have a plan. I didn't know

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Speaker 3: what I wanted to do. I was that kid that

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Speaker 3: loved working. So I had, you know, any job I

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Speaker 3: had when I was growing up, I just loved. I

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Speaker 3: was a babysitter, I worked at a bakery. I taught

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Speaker 3: tennis lessons. I did it all and I loved it.

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Speaker 2: Bought tennis. You still play?

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Speaker 3: I am incredible. So I don't play well or regularly

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Speaker 3: any longer. There is a story behind that, which maybe

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Speaker 3: I'll share with you. But my husband does play tennis.

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Speaker 3: He's incredible and he coaches at West Point.

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Speaker 2: Oh wow, that's amazing. Yeah, So what was the first

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Speaker 2: gig right out of pe?

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Speaker 3: So, so you know, I was a psychology major, and

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Speaker 3: I knew that I was fascinated with people and also

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Speaker 3: a distribution and I'll come on set in a second.

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Speaker 3: Because I was a music person. I loved music. I

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Speaker 3: wanted to be in the music industry. So my plan was,

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Speaker 3: do I go FBI criminal psychology or do I go

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Speaker 3: into the music industry?

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Speaker 2: Very similar?

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Speaker 3: Very similar.

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Speaker 2: And I'm not being sarcastic because you're profiling people who

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Speaker 2: perhaps have certain deviant perspectives about the world.

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Speaker 3: Yeah, I'll leave it there, okay. And so I had

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Speaker 3: to make a decision. And so I was going towards

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Speaker 3: the music industry. And so people always say, well, were

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Speaker 3: you a performer? Did you sing? Were you classically trained?

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Speaker 3: The answer is no. But I was fascinated with the

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Speaker 3: business of music and the distribution of music. And so

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Speaker 3: at that time, remember it was kind of napster, right,

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Speaker 3: so like things were going.

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Speaker 2: Like late nineties, Is that what you're talking about.

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Speaker 3: Oh yeah, so we're going from CDs to digital distribution.

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Speaker 3: And I just found it to be fascinating and what

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Speaker 3: did that mean for the business and the implications for artists.

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Speaker 3: And so I had this dream I was going to

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Speaker 3: be a big time record label EZAC. I had internships,

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Speaker 3: I got a job at the time it was Sony BMG,

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Speaker 3: and then I realized as I got my offer letter

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Speaker 3: that I wasn't quite sure how I was going to,

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Speaker 3: you know, sustain my life, pay my bills. My parents

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Speaker 3: helped massively with college, but there was some student debt

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Speaker 3: that I had to pay off. And so at the time,

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Speaker 3: my brother was a financial advisor. So I called him

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Speaker 3: up and I said, hey, big bro, what do you recommend?

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Speaker 3: What should I do? And I was thinking he'd give

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Speaker 3: me some financial advice, and his advice was, get a

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Speaker 3: real job that's going to help you pay your bills

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Speaker 3: and then you can go back into music after. And

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Speaker 3: so that's kind of how I made my way into finance.

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Speaker 2: So what was the real job?

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Speaker 3: So the real job was working at Mary Lynch.

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Speaker 2: So your whole career, you've been in the same more

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Speaker 2: or less the same place. That's amazing.

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Speaker 3: Yeah, and there's this theme as you kind of look

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Speaker 3: through different things I've done throughout my career. But I

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Speaker 3: started at Meryl Investment Managers, which was the asset management

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Speaker 3: arm of Mery Lynch, and I wanted to be the

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Speaker 3: farthest thing away from markets because I had no experience.

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Speaker 3: I didn't know what the markets were. I didn't even

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Speaker 3: know what a mutual fund was and so I joined

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Speaker 3: Merrill as an analyst in their analyst program and I

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Speaker 3: was a technology project manager.

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Speaker 2: Wait, so as an analyst, did you become a CFA?

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Speaker 2: Did you go through that process or I did not?

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Speaker 3: So you get all of your Series sevens and everything else.

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Speaker 3: But I was responsible for again let's date ourselves here.

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Speaker 3: The late nineties, early two thousands. E business was the thing, right, so.

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Speaker 2: It's gonna be a big one day.

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Speaker 3: It's gonna be big one day. There's this whole thing

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Speaker 3: called the internet. And so at the time, Meryl did

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Speaker 3: not even have a website for their financial advisors.

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Speaker 2: How is that possible? I know, can you imagine thousand

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Speaker 2: and one, We're gonna We're gonna wait and see if

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Speaker 2: this thing.

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Speaker 3: Becomes takes off, Right, I have a feeling, right, so

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Speaker 3: I have a good feeling. Yes, yeah, yeah, So that's

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Speaker 3: where I started.

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Speaker 2: And so did you help build out the first set

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Speaker 2: of Merrill Lynch websites for their is this for outward

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Speaker 2: facing for clients internally for advisors and brokers or a

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Speaker 2: little bit of.

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Speaker 3: Everything for advisors and brokers? And so that's where I

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Speaker 3: first learned, you know, the role of the financial advisor

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Speaker 3: and what it is to be a financial advisor and

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Speaker 3: how you serve your clients and how hard it is

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Speaker 3: and what it is to actually sell and support and

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Speaker 3: serve those financial advisors. But that was the job. It

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Speaker 3: was translating technology speak into business and client needs really interesting.

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Speaker 2: So I know you've had multiple multiple roles at both

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Speaker 2: Marylyn Blackrock, Let's quickly walk up the ladder. So from that,

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Speaker 2: what was the next role?

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Speaker 3: So I always had this idea that I wanted to

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Speaker 3: get closer to the client, so I'd move and you'll

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Speaker 3: see for my career, I moved into roles that were

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Speaker 3: closer to clients. So from there I went into marketing,

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Speaker 3: which you really learned strategic messaging and how to simplify

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Speaker 3: and help people understand what you're doing. I then went

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Speaker 3: into our retirement business. We're there. I used to help

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Speaker 3: participants understand how to enroll in their four O one

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Speaker 3: K plant. I mean literally going around the country helping

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Speaker 3: people figure out how to save and how to invest.

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Speaker 3: And then I moved back into the wealth business, which

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Speaker 3: is where I am today. Along with leading our retirement business.

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Speaker 3: And the wealth business was the first time when I

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Speaker 3: came back into it that I actually had direct client accountability,

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Speaker 3: and that was important to me because I had done

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Speaker 3: technology and marketing and product and strategy and everything else,

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Speaker 3: but I had never been responsible for helping to solve

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Speaker 3: client problems directly.

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Speaker 2: And to clarify, you didn't just kind of move into

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Speaker 2: the world health business. You are the head of BlackRock's

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Speaker 2: US wealth advisory business. That is not like just You're

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Speaker 2: not just casually drifting into that space. You're running it.

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Speaker 2: So let's talk a little bit about how you got there. So, Maryland,

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Speaker 2: Blackrock merged in two thousand and six when the dust settled.

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Speaker 2: What was your title back then?

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Speaker 3: So back then I had moved into marketing and I

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Speaker 3: was the head of marketing for our wealth business. Then

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Speaker 3: fast forward to Blackrock acquired BGI and I shares.

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Speaker 2: I recall one of the greatest acquisitions in finance history.

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Speaker 3: And a theme for Blackrock on just structural growth and

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Speaker 3: how we view where the world is going and how

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Speaker 3: we meet the needs to be there. But at that point,

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Speaker 3: leadership had asked me to bring together all of the

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Speaker 3: retirement businesses that were legacy Blackrock Legacy, I shares Legacy BGI,

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Speaker 3: and I was part of that team.

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Speaker 2: In other words, turn into one company instead of all

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Speaker 2: these separate pies race. How long did that process take?

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Speaker 3: It was, I mean every day. It was another step

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Speaker 3: in that process. And you know, we learn over the

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Speaker 3: years how important it is to integrate and to acquire.

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Speaker 3: When you acquire, you're acquiring for capabilities, but you're acquiring

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Speaker 3: for talent and culture. And so the match between the

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Speaker 3: firms is really strong, and that helped us to integrate

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Speaker 3: even faster.

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Speaker 2: So you began this process late two thousand and six

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Speaker 2: and right around the corner comes to financial crisis. How

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Speaker 2: did that get in the way or affect this entire

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Speaker 2: post merger situation. It had to be pretty disruptive, certainly

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Speaker 2: on the client level. How did it affect what you

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Speaker 2: were doing?

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Speaker 3: Yeah, I mean, of course it was disruptive. And I

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Speaker 3: think this kind of goes back to part of the

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Speaker 3: vision with Blackrock always was and I mentioned the term

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Speaker 3: structural growth, but what does that really mean. It means

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Speaker 3: durable engines of growth, resilient engine of growth, growth that

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Speaker 3: can persist market cycles. And so even through a financial crisis,

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Speaker 3: the fact that we had our I shares ETFE, we

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Speaker 3: had fixed income, we had equity, we had cash, we

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Speaker 3: had everything you could imagine, and we had a Laddin.

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Speaker 3: Remember Aladdin, our technology platform was massively helpful to so

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Speaker 3: many firms and institutions and governments during that time, So

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Speaker 3: we had multiple ways to lead through that and help

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Speaker 3: our clients through that crisis.

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Speaker 2: Huh. Really quite fascinating. And back then, you know, it

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Speaker 2: was a couple of trillion dollars. Now black Rock is

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Speaker 2: what eleven twelve trillion dollars. That's the largest asset manager

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Speaker 2: in the world. I want to say Vanguard is probably

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Speaker 2: ten twenty percent behind. You never knit your heels, But

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Speaker 2: between Vanguard and Blackrock, these are two of the most

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Speaker 2: storied firms. And in fact, the new CEO of Vanguard

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Speaker 2: used to run a division over a great friend of mine, Sting,

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Speaker 2: which really just goes to tell I recall interviewing him

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Speaker 2: when he was at Blackrock and like, Hey, that guy's

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Speaker 2: going to go somewhere one day. But what's fascinating is

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Speaker 2: just how so unbelievably successful the ieshare business became. But

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Speaker 2: people tend to think of retail investors tend to think

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Speaker 2: about Blackrock in terms of I shares, But Blackrock is

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Speaker 2: really so much more. It's not only passive beta, but

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Speaker 2: there are alpha seeking strategies and as we'll discuss later,

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Speaker 2: there are alternatives. So there are a lot of things

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Speaker 2: going on at Blackrock. As head of US wealth advisory,

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Speaker 2: What is the core focus? What are the bulls that

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Speaker 2: you keep in the air all the time.

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Speaker 3: Yeah. So one of the things I love about the

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Speaker 3: wealth business generally is that it is changing so rapidly.

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Speaker 3: It's dynamic. Every day there is something new. Investor preferences

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Speaker 3: are changing, there's different client segments, and as you said,

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Speaker 3: it's not just about I shares. I mean, we have

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Speaker 3: so many capabilities that we can bring to bear, and

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Speaker 3: so when we wake up every day, what we think

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Speaker 3: about at Blackrock is how do we make investing easier?

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Speaker 3: How do we get more people access to the capital markets?

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Speaker 3: And that used to be public markets now it's public

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Speaker 3: and private markets. But that's what we do. And when

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Speaker 3: you think about our wealth business, we do that through

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Speaker 3: financial advisors and with wealth management firms. So our job

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Speaker 3: in our wealth business is to help advisors and the

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Speaker 3: firms that they work for build better portfolios for their

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Speaker 3: clients so that they can achieve their dreams. And we

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Speaker 3: aim to power their growth, to help them scale their

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Speaker 3: businesses so that they can do what they do best,

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Speaker 3: which is serving their clients. And so that's what we

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Speaker 3: wake up doing every single day in the wealth business.

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Speaker 2: So I've seen a variety of areas Blackrock model portfolios.

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Speaker 2: If you have a bond ladder that you have concerns about,

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Speaker 2: you can run it by the Blackrock folks and hey,

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Speaker 2: here are your options. We really haven't talked about SMAs,

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Speaker 2: which I know is a really fast growing part of

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Speaker 2: the business. Is there a priority or are all these

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Speaker 2: things just day by day you're just checking off different

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Speaker 2: boxes and working on different projects.

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Speaker 3: Yeah, So our priority is serving the client, meeting their need.

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Speaker 3: And when we look at the wealth market it and

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Speaker 3: talk to advisors every single day, there's really three call

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Speaker 3: and client segments investor segments that advisors are trying to

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Speaker 3: serve and win and build relationships with, and we're trying

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Speaker 3: to help the advisor do so. So those three segments,

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Speaker 3: think about the next gen investor, think about women, and

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Speaker 3: think about high net worth, and we'll hit on kind

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Speaker 3: of direct indexing and everything that we do through that.

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Speaker 3: But if you think about those three segments, and it's

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Speaker 3: a broadway to think about this. You know, there's exceptions

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Speaker 3: to every rule here. But next gen what are we

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Speaker 3: talking about. It's the millennials, right, it's Z and gen Z.

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Speaker 3: It's forty four percent of the population. So it is

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Speaker 3: a massive number by quantity, but it's also a massive

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Speaker 3: number by assets.

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Speaker 1: Right.

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Speaker 3: That generation is going to inherit seventy jillion plus in

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Speaker 3: assets over the next few years. And so what's interesting

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Speaker 3: and what's different about these folks is that they want

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Speaker 3: to invest in line with their beliefs. They're incredibly tech savvy.

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Speaker 3: In fact, they trust digital and social more than they

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Speaker 3: might even trust humans these days. But they want advice advisors,

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Speaker 3: and they want to invest in things that are new

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Speaker 3: and interesting. And so you think about bitcoin, right, bitcoin?

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Speaker 3: Eighty plus percent of millennial millionaires hold crypto. They're more

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Speaker 3: inclined to use crypto than stocks and mutual funds. So

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Speaker 3: we were doing and investing and innovating in in service

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Speaker 3: of client demand, is creating a bitcoin ETF.

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Speaker 2: I BIT I bit one of, if not the fastest

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Speaker 2: growing ETF in history, fastest to a billion to five

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Speaker 2: billion to ten. I haven't even looked at what it is.

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Speaker 2: Eighty five unbelievable. This is less than two years old, right, Yes,

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Speaker 2: that's incredible. Eighty five billion dollars and no passwords, no

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Speaker 2: loss this, no that that they've taken. What was a

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Speaker 2: You know, whenever I see the return claims for bitcoin,

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Speaker 2: I always have to point out, hey, twenty thirty percent

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Speaker 2: of coins have been lost, last words have been lost,

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Speaker 2: drives break, so subtract a third off of that. But

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Speaker 2: really it's it's this or zero if you totally lost it.

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Speaker 2: You guys have made this a traditional financial product. So

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Speaker 2: it's pretty amazing, and we've seen like a general acceptance

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Speaker 2: of hey, everybody should have one percent or maybe a

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Speaker 2: little more, a little less, whatever your needs are of

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Speaker 2: some bitcoin, and this seems to be the easiest way

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Speaker 2: to do it.

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Speaker 3: I think we'll see a lot more of that too.

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Speaker 3: I think we're going to see a lot of firms

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Speaker 3: coming out now to say we are actually going to

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Speaker 3: allow advisors to incorporate this into portfolios on the FEEBA side,

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Speaker 3: on the advisory platforms, and so I think this is

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Speaker 3: just the beginning, but it's also just a perfect example

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Speaker 3: of if you understand where clients are going, and you

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Speaker 3: have the capability set to innovate and build products around it.

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Speaker 3: Then you can deliver those products to market and help

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Speaker 3: advisors better serve their clients.

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Speaker 2: And I Bit's a perfect example of that, really really

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Speaker 2: quite fascinating. Coming up, we continue our conversation with Jamie

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Speaker 2: and Manjera, head of black Rocks US wealth advisory business

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Speaker 2: and head of black Rocks Retirement Business, discussing wealth management

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Speaker 2: and retirement. I'm Barry Ritholts. You're listening to Masters and

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Speaker 2: Business on Bloomberg Radio. I'm Barry Ridults. You're listening to

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Speaker 2: Masters and Business on Bloomberg Radio. I'm speaking this week

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Speaker 2: with Jamie Majera. She's head of black Rocks US wealth

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Speaker 2: advisory business as well as retirement business. So let's talk

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Speaker 2: a little bit about both of these. I want to

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Speaker 2: start with the wealth management business. This is more than

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Speaker 2: just I shares. This is very holistic and comprehensive. Tell

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Speaker 2: us a little bit about the US wealth advisory business.

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Speaker 3: So our business is really focused on helping those advisors

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Speaker 3: who are really trying to go after multiple client segments

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Speaker 3: and help those client segments actually meet their goals. And so,

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Speaker 3: you know, we talked a little bit about next gen

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Speaker 3: and kind of the millennials and gen Z. The other

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Speaker 3: segment that is just growing an incredible rate is women.

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Speaker 3: Women today control a third of the world's assets. In

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Speaker 3: a few years, it'll be fifty percent. It'll be seventy

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Speaker 3: percent by twenty fifty seventy percent. And you know, part

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Speaker 3: of this is, let's talk about what's driving this. Women

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Speaker 3: are creating wealth right. More women are having careers or

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Speaker 3: reaching executive levels or starting their own businesses. Women are

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Speaker 3: also inheriting wealth right from family or from parents. Women

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Speaker 3: are also inheriting wealth. We call it the horizontal wealth

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Speaker 3: treadsours right divorce or widowed.

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Speaker 2: Tent taut live the husband. Yes, so it's a way

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Speaker 2: station before it goes to the kids.

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Speaker 3: Absolutely, absolutely, and women are quite frankly underserved in this market.

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Speaker 3: Women were not seen as as a significant growth segment

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Speaker 3: in the past, and now people are starting to come

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Speaker 3: around to wait a minute, this is a very important

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Speaker 3: segment that we need to get right. And women do

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Speaker 3: things differently, and so advisors need to help women do

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Speaker 3: things differently, and they need to serve them a little

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Speaker 3: bit differently. And women, you know, like to have impact.

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Speaker 3: We talk about the fact that some people invest as

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Speaker 3: a means to an end. You know, women tend to

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Speaker 3: invest as a means to what's next, right, they want

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Speaker 3: to impact their community, they want to impact their family.

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Speaker 3: They're always thinking about what can I do with this money,

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Speaker 3: as opposed to I want to make more money, and

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Speaker 3: so that's it's a nuance, but it's a difference that

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Speaker 3: really requires a very personal relationship with a financial advisor

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Speaker 3: and trust.

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Speaker 2: You know, it's been fascinating seeing what was previously a

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Speaker 2: male dominated industry slowly awakened to the idea that hey,

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Speaker 2: women have money and they're going to continue to accrue

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Speaker 2: more money. Maybe we should be more open to coming

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Speaker 2: up with a way to serve that demographic. It's like amazing.

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Speaker 2: It's taken so many decades for the industry to adjust,

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Speaker 2: but it's shockingly slow and sometimes stuck a little bit

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Speaker 2: in the past.

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Speaker 3: Yeah, it is.

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Speaker 1: You know.

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Speaker 3: The wake up call I think for many is when

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Speaker 3: a financial advisor has a client, maybe it's the man

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Speaker 3: in the household, and perhaps there's a divorce, or there's

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Speaker 3: a or the or the client passes away. Listen, seventy

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Speaker 3: percent of women leave their financial advisor leave their husband's

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Speaker 3: financial advisor after a divorce or death.

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Speaker 2: So obvious with divorce, but with death, it tells you

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Speaker 2: what a terrible job that advisor did speaking to both

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Speaker 2: of those. And you know, I've heard stories from advisors

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Speaker 2: about people kind of agast at somebody ignoring the spouse

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Speaker 2: in the room. It's just a totally wrong, wrong approach.

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Speaker 2: How does Blackrock help their advisor clients address this issue?

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Speaker 3: So we believe there's such an opportunity for advice here

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Speaker 3: right there. I mean, there's just this whole world of

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Speaker 3: women who want advice, they want to coach, they want

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Speaker 3: a partner, and so what we do is we work

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Speaker 3: with financial advisors to help them better serve these clients.

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Speaker 3: We do that through products. So for example, women want

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Speaker 3: to be able to customize and personalize their investments to

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Speaker 3: things that are important to them, so we'll talk about

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Speaker 3: direct indexing. But direct indexing and what we're doing through

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Speaker 3: a perio is a great way for an advisor to

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Speaker 3: serve his client and help her have impact with what

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Speaker 3: she's doing. We also care deeply about educating advisors on

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Speaker 3: this And to your point, it's not that the industry

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Speaker 3: just woke up, so nobody was really talking about it,

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Speaker 3: and so now we're really invested in talking about this

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Speaker 3: and helping and doing events and getting advisors to bring

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Speaker 3: their prospects in and we'll join them. We are a

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Speaker 3: minority investor in a company called Willow which focuses exactly

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Speaker 3: on this. It builds practice management and education and actually

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Speaker 3: helps connect female investors to advisors, and so we're really

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Speaker 3: focused on this, and it's just such an opportunity for

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Speaker 3: advice but also an opportunity for advisors to grow their business.

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Speaker 2: So you mentioned aperio. Let's talk a little bit about

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Speaker 2: direct indexing. I'm a big fan of it. We happen

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Speaker 2: to have started on a different product six years ago,

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Speaker 2: so we've been pretty locked in on that. Why do

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Speaker 2: you believe it's gaining so much popularity amongst both advisors

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Speaker 2: and clients.

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Speaker 3: Yeah, so direct indexing it still sounds like a new

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Speaker 3: phrase to many. It's been around for quite some time,

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Speaker 3: and previously it was really used for ultra ultra high

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Speaker 3: net worth families and direct indexing and ability to create

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Speaker 3: a portfolio, a custom index, if you will, of securities

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Speaker 3: that you can choose and select what securities you want

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Speaker 3: in that portfolio to align with how you want to

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Speaker 3: invest and you can also then manage taxes more effectively

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Speaker 3: in there because you can tax loss harvest. And so

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Speaker 3: it's a brilliant approach for not only aligning with your

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Speaker 3: beliefs on how you invest, but also really living in

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Speaker 3: an after tax world. We need to better look at

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Speaker 3: tax alfa in our investment portfolio.

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Speaker 2: So I'm so glad you said that. When we first

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Speaker 2: started working with O'Shaughnessy on their product, I was on

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Speaker 2: the impression that would first be like, the most common

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Speaker 2: use case would be, Hey, I don't want tobacco or guns,

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Speaker 2: or I don't want this whatever. I know. The New

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Speaker 2: York Bishop's Archdiocese Investment Pool uses it to say, hey,

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Speaker 2: we don't want a board efficients in our portfolio or

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Speaker 2: anything related to stuff that is in contradiction with our

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Speaker 2: belief system. I thought that would be the biggest use

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Speaker 2: And then hey, I work for Apple, so I don't

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Speaker 2: need all this tech. You could tune down tech in

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Speaker 2: my portfolio, and then taxes would bring up the rear.

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Speaker 2: I had it exactly backwards. In the past five six years,

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Speaker 2: after tax returns, tax alpha seems to be the dominant

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Speaker 2: usage for this concentrated portfolios low basis cost inherited stock.

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Speaker 2: Things like that really are a challenge to dealing with

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Speaker 2: capital gains. Tell us about black Rocks experience.

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Speaker 3: With this, Yeah, so we agree completely. In fact, back

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Speaker 3: in twenty twenty one, we acquired the firm Aparo and

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Speaker 3: Aperio is a pioneer in direct indexing. A Perio led

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Speaker 3: the market working with ultra high networth. They called it

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Speaker 3: the new institutional for the purpose of tax management after

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Speaker 3: tax returns. And you think about it, we live in

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Speaker 3: an after tax world. I bought my coffee with after

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Speaker 3: tax dollars. Yet we manage our investments before taxes. And

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Speaker 3: so we saw this trend coming and we could have

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Speaker 3: built it. It would have taken us probably a lot

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Speaker 3: more time. But we saw what Aperia was doing in

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Speaker 3: their capabilities and just their approach, and we thought, man,

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Speaker 3: if we could match that with our distribution reach and

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Speaker 3: our scale, we could really make some wonderful, wonderful solutions

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Speaker 3: for our clients. And that's what we did. We acquired

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Speaker 3: a Perio and we have a very significant direct indexing business.

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Speaker 3: And to your point, Barry, it is predominantly tax customization,

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Speaker 3: tax management.

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Speaker 2: Right any especially when we see markets or at all

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Speaker 2: time highs. People are sitting on enormous gains. Sometimes that

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Speaker 2: becomes very concentrated, to say nothing of people who work

437
00:23:01,760 --> 00:23:04,800
Speaker 2: for tech stocks and they've accumulated or other companies that

438
00:23:04,880 --> 00:23:09,840
Speaker 2: have just accumulated so much value that hey, maybe I

439
00:23:09,920 --> 00:23:12,160
Speaker 2: have too much single stock risk and I want to

440
00:23:12,200 --> 00:23:16,240
Speaker 2: diversify into things. Tell us, what else does Blackrock do

441
00:23:16,320 --> 00:23:20,760
Speaker 2: with direct indexing? How do you differentiate yourself? For everybody

442
00:23:20,800 --> 00:23:23,840
Speaker 2: these days seems to have a direct indexing product? What

443
00:23:23,960 --> 00:23:27,000
Speaker 2: makes black Rocks special or unique? Yeah?

444
00:23:27,040 --> 00:23:28,840
Speaker 3: So, you know, one of the things that we did

445
00:23:28,920 --> 00:23:31,920
Speaker 3: is when we acquired a Perio, we already had a

446
00:23:32,040 --> 00:23:36,480
Speaker 3: very significant separately managed account business. I mean for decades

447
00:23:36,520 --> 00:23:38,760
Speaker 3: we had fixed income and active equity, and what we

448
00:23:38,800 --> 00:23:42,040
Speaker 3: did not have was that direct indexing capability. When we

449
00:23:42,080 --> 00:23:44,880
Speaker 3: brought a Perio into Blackrock, we then pulled it all

450
00:23:44,920 --> 00:23:47,320
Speaker 3: together and said, how can we actually make all of

451
00:23:47,320 --> 00:23:50,600
Speaker 3: these capabilities together better serve our clients. So that means,

452
00:23:50,680 --> 00:23:54,119
Speaker 3: for example, tax loss harvesting on UNI portfolios, right, so

453
00:23:54,160 --> 00:23:56,280
Speaker 3: being able to take a capability and not just do

454
00:23:56,320 --> 00:24:00,320
Speaker 3: it on equities, but do it on fixed income. Last

455
00:24:00,359 --> 00:24:03,000
Speaker 3: year we acquired a company called spider Rock. I'm not sure,

456
00:24:03,040 --> 00:24:04,320
Speaker 3: if you're familiar with spider.

457
00:24:04,240 --> 00:24:05,960
Speaker 2: Structured notes, we've used them in the past.

458
00:24:06,040 --> 00:24:08,480
Speaker 3: Yeah, and option over similar kind of.

459
00:24:09,000 --> 00:24:13,040
Speaker 2: Not quite the same, but occasionally similar, a different solution

460
00:24:13,119 --> 00:24:14,120
Speaker 2: to a similar problem.

461
00:24:14,200 --> 00:24:16,760
Speaker 3: Yeah. And to your point on concentrated stock, what a

462
00:24:16,800 --> 00:24:20,199
Speaker 3: great way to hedge that concentrated stock position. If I

463
00:24:20,240 --> 00:24:22,240
Speaker 3: want to continue holding that stock, but I want to

464
00:24:22,240 --> 00:24:24,520
Speaker 3: hedge against it and manage the risk, or I want

465
00:24:24,520 --> 00:24:27,560
Speaker 3: to manage for tax implications, why not run an option

466
00:24:27,600 --> 00:24:29,720
Speaker 3: overlay on top of that. And So the beauty of

467
00:24:29,760 --> 00:24:31,960
Speaker 3: what we're doing now is we're bringing all of these

468
00:24:31,960 --> 00:24:37,159
Speaker 3: discrete capabilities together into one portfolio, one holistic offering. And

469
00:24:37,200 --> 00:24:39,359
Speaker 3: so you'll be able to will be able to work

470
00:24:39,359 --> 00:24:42,240
Speaker 3: with advisors and say, let's look across your client's entire

471
00:24:42,359 --> 00:24:45,160
Speaker 3: book and let us help you build a whole portfolio

472
00:24:45,440 --> 00:24:50,360
Speaker 3: of public markets, private markets, direct indexing, option overlay, all

473
00:24:50,400 --> 00:24:54,760
Speaker 3: in one. Really solving for unique needs, customized, really.

474
00:24:54,720 --> 00:24:57,320
Speaker 2: Really quite fascinating. So you mentioned you work with a

475
00:24:57,359 --> 00:25:00,840
Speaker 2: lot of different wealth management firms. What is that relationship

476
00:25:01,160 --> 00:25:04,600
Speaker 2: look like? What are these firms looking for from Blackrock?

477
00:25:05,160 --> 00:25:07,800
Speaker 3: So I remember when I first started in the wealth business,

478
00:25:07,880 --> 00:25:10,040
Speaker 3: years and years and years and years ago, you know,

479
00:25:10,080 --> 00:25:15,280
Speaker 3: the relationship between asset managers and wealth management firms was

480
00:25:15,320 --> 00:25:18,320
Speaker 3: often a kind of a vendor relationship. Yes, right, it

481
00:25:18,480 --> 00:25:21,480
Speaker 3: was you have a product, let's put it over here.

482
00:25:21,920 --> 00:25:25,359
Speaker 3: Our position and our partnership with wealth management firms today

483
00:25:26,080 --> 00:25:29,639
Speaker 3: is the only word I would say. It's like true partnership, right,

484
00:25:29,680 --> 00:25:34,160
Speaker 3: it's aligned interests. We are there to not only provide

485
00:25:34,160 --> 00:25:37,840
Speaker 3: them with investment capabilities, by the way, we have incredible

486
00:25:37,880 --> 00:25:40,240
Speaker 3: breath to do so, but we're also there to help

487
00:25:40,280 --> 00:25:43,639
Speaker 3: them with their technology needs, their operational and scale needs,

488
00:25:44,480 --> 00:25:46,920
Speaker 3: their advisory needs. How can we help them think through

489
00:25:46,920 --> 00:25:49,719
Speaker 3: how they can grow organic growth? That's everyone's challenge. How

490
00:25:49,720 --> 00:25:51,720
Speaker 3: do I grow organically? Well, you have to scale your

491
00:25:51,720 --> 00:25:54,480
Speaker 3: business and increase your margins to do so. We help

492
00:25:54,520 --> 00:25:56,639
Speaker 3: them think through all of that. And the other thing

493
00:25:56,680 --> 00:26:00,360
Speaker 3: that we do is we have incredible people that are

494
00:26:00,400 --> 00:26:03,120
Speaker 3: so expert and working with these firms and advisors every

495
00:26:03,160 --> 00:26:06,040
Speaker 3: single day to help them achieve their goals. And our

496
00:26:06,119 --> 00:26:09,320
Speaker 3: view is if we can help our clients, the wealth

497
00:26:09,359 --> 00:26:13,000
Speaker 3: management firms and their advisors grow, will naturally grow with them, right,

498
00:26:13,040 --> 00:26:14,440
Speaker 3: So our job is to help them grow.

499
00:26:14,960 --> 00:26:20,359
Speaker 2: So let's talk retirement. We're recording this post Labor Day.

500
00:26:20,440 --> 00:26:24,280
Speaker 2: But by the time this comes out, Blackrocks Big Report,

501
00:26:24,400 --> 00:26:27,360
Speaker 2: the Read on Retirement will be out tell us some

502
00:26:27,400 --> 00:26:29,679
Speaker 2: of the big takeaways for this.

503
00:26:30,000 --> 00:26:34,000
Speaker 3: So it's really special for me personally because I've just

504
00:26:34,080 --> 00:26:37,600
Speaker 3: now returned into the retirement business and have the responsibility

505
00:26:37,640 --> 00:26:40,119
Speaker 3: for this retirement business. And I say it's a responsibility

506
00:26:40,840 --> 00:26:44,680
Speaker 3: and an honor because we think about the thirty five

507
00:26:44,760 --> 00:26:47,960
Speaker 3: million people across America that we are helping to save

508
00:26:48,040 --> 00:26:51,240
Speaker 3: for retirement, like that is what we do. Over half

509
00:26:51,280 --> 00:26:53,399
Speaker 3: of the assets at Blackrock. Not many people know this,

510
00:26:53,520 --> 00:26:56,359
Speaker 3: Over half of the assets at Blackrock are helping people

511
00:26:56,400 --> 00:26:57,880
Speaker 3: save for retirement in some way.

512
00:26:57,960 --> 00:27:00,480
Speaker 2: Really, Also, when you say that it's for a wis

513
00:27:00,520 --> 00:27:01,639
Speaker 2: for three bees.

514
00:27:01,560 --> 00:27:03,720
Speaker 3: IRA's annitionis dB.

515
00:27:04,240 --> 00:27:04,560
Speaker 2: Wow.

516
00:27:04,640 --> 00:27:07,720
Speaker 3: Yes, that's amazing over fifty percent and that's not a

517
00:27:07,760 --> 00:27:10,040
Speaker 3: guess tho. Yeah, not many people know that, and so

518
00:27:10,520 --> 00:27:13,040
Speaker 3: you know, it's something that we are so proud of

519
00:27:13,680 --> 00:27:16,680
Speaker 3: and really for me, it was always my north star.

520
00:27:16,720 --> 00:27:18,920
Speaker 3: I remember when I was first in the retirement business

521
00:27:18,920 --> 00:27:21,000
Speaker 3: at black Rock, I was able to go home and

522
00:27:21,000 --> 00:27:23,320
Speaker 3: tell my parents what I did and explain it to

523
00:27:23,359 --> 00:27:25,240
Speaker 3: them in a way that I felt so good about

524
00:27:25,280 --> 00:27:27,359
Speaker 3: and they understood, and that's what we get to do

525
00:27:27,440 --> 00:27:30,320
Speaker 3: every day. You mentioned the survey, So it's our ten

526
00:27:30,359 --> 00:27:32,880
Speaker 3: year anniversary of doing the survey. We've been doing it

527
00:27:33,520 --> 00:27:35,800
Speaker 3: for a decade now, and every time we go out,

528
00:27:35,880 --> 00:27:38,760
Speaker 3: we go to plan sponsors, who are the employers building

529
00:27:38,840 --> 00:27:41,159
Speaker 3: the plans and offering them to their employees. We go

530
00:27:41,240 --> 00:27:44,680
Speaker 3: to the savers, who are the employees at massive corporations.

531
00:27:44,960 --> 00:27:47,600
Speaker 3: And then we also talked to retirees, people that have

532
00:27:47,680 --> 00:27:49,920
Speaker 3: saved and had access to a four to one K plan,

533
00:27:50,000 --> 00:27:52,400
Speaker 3: but they're now no longer working and they're in retirement.

534
00:27:52,760 --> 00:27:55,560
Speaker 3: And so this year I'll break it down in this way.

535
00:27:55,880 --> 00:27:59,120
Speaker 3: Savers those that are still working, the employers of these

536
00:27:59,160 --> 00:28:02,879
Speaker 3: are the employees of this company. Savers have the highest

537
00:28:02,880 --> 00:28:06,280
Speaker 3: confidence we've ever seen, like off the charts confidence. Now

538
00:28:06,320 --> 00:28:08,600
Speaker 3: it's come down a little bit because of market volatility.

539
00:28:08,640 --> 00:28:10,399
Speaker 3: And I think what that calls out is, of course

540
00:28:10,440 --> 00:28:14,160
Speaker 3: we're all more confident when markets are rising, but very

541
00:28:14,200 --> 00:28:18,280
Speaker 3: strong confidence in their ability to retire. However, we've seen

542
00:28:18,320 --> 00:28:20,959
Speaker 3: savings come down, and so the question is is that

543
00:28:21,000 --> 00:28:22,440
Speaker 3: because of confidence.

544
00:28:22,000 --> 00:28:24,280
Speaker 2: When you say savings, we mean savings.

545
00:28:23,920 --> 00:28:26,879
Speaker 3: Rates rates, right, Savings rates have come down thank you.

546
00:28:27,640 --> 00:28:29,800
Speaker 3: And so the question is is that because of confidence

547
00:28:29,840 --> 00:28:32,439
Speaker 3: or is that because actually people are spending more money

548
00:28:32,440 --> 00:28:34,879
Speaker 3: they need to maybe inflation maybe right, So like we

549
00:28:34,920 --> 00:28:37,480
Speaker 3: have to dig into that a little bit more. But importantly,

550
00:28:37,520 --> 00:28:41,320
Speaker 3: savers are seeing more confidence or feeling more confident. You

551
00:28:41,400 --> 00:28:43,640
Speaker 3: then ask the people in charge, the experts who are

552
00:28:43,640 --> 00:28:46,960
Speaker 3: building those plans. Confidence is very low, in fact lower

553
00:28:47,000 --> 00:28:50,120
Speaker 3: than we've seen. And I'll come back to that in

554
00:28:50,200 --> 00:28:52,640
Speaker 3: a moment, but I think there's a really interesting tension

555
00:28:52,680 --> 00:28:58,320
Speaker 3: there of perhaps over confidence in savers and reality in

556
00:28:58,400 --> 00:29:00,280
Speaker 3: those building the plans. And then when we move on

557
00:29:00,320 --> 00:29:03,760
Speaker 3: to retirees, very low confidence once they've retired and their

558
00:29:03,800 --> 00:29:06,880
Speaker 3: ability to actually figure out how to sustain their life

559
00:29:06,880 --> 00:29:09,200
Speaker 3: in retirement. And so some of the actions are some

560
00:29:09,240 --> 00:29:11,240
Speaker 3: of the insights that really came out of this. One

561
00:29:12,080 --> 00:29:15,760
Speaker 3: Savers are looking for access to professionally managed solutions, think

562
00:29:15,760 --> 00:29:19,160
Speaker 3: target date funds, right life path portfolios. Black Rock invented

563
00:29:19,200 --> 00:29:21,280
Speaker 3: the target date fund thirty years ago, but target date

564
00:29:21,320 --> 00:29:25,360
Speaker 3: funds are very very important. Two is, savers are looking

565
00:29:25,400 --> 00:29:28,800
Speaker 3: for some type of clarity or solution around guaranteed income.

566
00:29:29,080 --> 00:29:31,000
Speaker 3: Give me something that will just tell me what I'm

567
00:29:31,040 --> 00:29:35,040
Speaker 3: going to be able to spend every month, and better yet,

568
00:29:35,080 --> 00:29:37,600
Speaker 3: make that guaranteed so I know I have it every month.

569
00:29:37,800 --> 00:29:39,400
Speaker 2: So what does that look like? Are we talking an

570
00:29:39,400 --> 00:29:41,120
Speaker 2: annuity product or something else?

571
00:29:41,360 --> 00:29:44,840
Speaker 3: So imagine a target date fund with a guaranteed income

572
00:29:44,880 --> 00:29:47,400
Speaker 3: sleeve in that. So we have a product called life

573
00:29:47,400 --> 00:29:51,320
Speaker 3: Path Paycheck. Life Path Paycheck is among a few other

574
00:29:51,440 --> 00:29:53,960
Speaker 3: solutions in the marketplace, but Life Path Paycheck is the

575
00:29:54,000 --> 00:29:58,120
Speaker 3: fastest growing guaranteed income solution. What's amazing about this solution, though,

576
00:29:58,200 --> 00:30:02,360
Speaker 3: is that it gives employers and employees the choice to

577
00:30:02,440 --> 00:30:05,840
Speaker 3: turn on that guaranteed income. So you're investing, investing, investing,

578
00:30:05,840 --> 00:30:07,520
Speaker 3: and then you come to a point and you decide

579
00:30:07,560 --> 00:30:09,880
Speaker 3: do I want that guaranteed inclip the switch, flip the switch.

580
00:30:10,360 --> 00:30:13,760
Speaker 3: Really really interesting. And then the third point is people,

581
00:30:13,960 --> 00:30:18,160
Speaker 3: both employers and employees are saying we need to close

582
00:30:18,200 --> 00:30:20,880
Speaker 3: the gap on this saving shortfall, and we need to

583
00:30:20,880 --> 00:30:23,840
Speaker 3: find more returns and more protections. And so that's really

584
00:30:23,880 --> 00:30:25,600
Speaker 3: where you start to point to private markets.

585
00:30:25,880 --> 00:30:30,040
Speaker 2: So the I think of the traditional retirement savings as

586
00:30:30,600 --> 00:30:34,920
Speaker 2: classic sixty forty, and what I've been reading about and

587
00:30:34,960 --> 00:30:38,000
Speaker 2: hearing about for the past ten plus years is hey

588
00:30:38,040 --> 00:30:39,960
Speaker 2: sixty forty isn't going to get it done in the future,

589
00:30:40,080 --> 00:30:43,479
Speaker 2: especially with yields as low as they've been up until

590
00:30:43,720 --> 00:30:46,640
Speaker 2: twenty twenty two. Anyway, how do you see this side

591
00:30:46,640 --> 00:30:49,640
Speaker 2: of the business changing. Is it no longer sixty forty,

592
00:30:49,720 --> 00:30:52,280
Speaker 2: is it sixty thirty ten, or what does this look like?

593
00:30:52,520 --> 00:30:55,000
Speaker 3: Yeah, so it's you know, the one thing that's different

594
00:30:55,040 --> 00:30:58,000
Speaker 3: about the retirement space is it's versus the wealth space

595
00:30:58,040 --> 00:31:01,040
Speaker 3: is retirement is quite slow moving. The market itself is

596
00:31:01,120 --> 00:31:03,160
Speaker 3: quite slow moving. And so if you actually look back

597
00:31:03,200 --> 00:31:06,000
Speaker 3: twenty years, I would say there's probably less change over

598
00:31:06,040 --> 00:31:08,480
Speaker 3: twenty years then we'll expect to see over the next ten.

599
00:31:08,840 --> 00:31:14,640
Speaker 3: Meaning people are getting very focused policymakers, employers, asset managers,

600
00:31:14,680 --> 00:31:16,880
Speaker 3: record keepers on how do we close the gap between

601
00:31:16,880 --> 00:31:20,120
Speaker 3: this retirement saving shortfall? And so to your question, the

602
00:31:20,200 --> 00:31:24,840
Speaker 3: sixty forty worked. It works, but actually if you were

603
00:31:24,880 --> 00:31:28,120
Speaker 3: to have a fifty to thirty twenty, but strategically and

604
00:31:28,160 --> 00:31:31,280
Speaker 3: thoughtfully make sure that that glide path, that target date

605
00:31:31,320 --> 00:31:34,600
Speaker 3: fund that also incorporates private markets is doing so in

606
00:31:34,640 --> 00:31:39,160
Speaker 3: a way that helps people get more diversification, gain alpha,

607
00:31:40,080 --> 00:31:43,400
Speaker 3: possibly gain more income. We've done studies that show you

608
00:31:43,400 --> 00:31:46,600
Speaker 3: can get fifteen percent more return on a portfolio with

609
00:31:46,640 --> 00:31:49,240
Speaker 3: private markets a target date fund with private markets over

610
00:31:49,280 --> 00:31:52,920
Speaker 3: a forty year retirement. And so that's something to talk.

611
00:31:52,800 --> 00:31:57,200
Speaker 2: About, not nothing. That's pretty substantial. Coming up, we continue

612
00:31:57,200 --> 00:32:01,680
Speaker 2: our conversation with Jamie Majera, head of Blackrocks US wealth

613
00:32:01,680 --> 00:32:05,320
Speaker 2: advisory business as well as head of BlackRock's retirement business,

614
00:32:05,840 --> 00:32:10,920
Speaker 2: discussing the rise of alternatives in the investment space at Blackrock.

615
00:32:11,400 --> 00:32:15,400
Speaker 2: I'm Bury Ridults. You're listening to Masters in Business on

616
00:32:15,520 --> 00:32:26,600
Speaker 2: Bloomberg Radio. I'm Bury Ridults. You're listening to Masters in

617
00:32:26,680 --> 00:32:30,480
Speaker 2: Business on Bloomberg Radio. My guest this week is Jamie macgira.

618
00:32:30,720 --> 00:32:33,640
Speaker 2: She is the head of black Rocks US wealth advisory

619
00:32:33,680 --> 00:32:37,440
Speaker 2: business as well as the head of their retirement business.

620
00:32:37,880 --> 00:32:42,800
Speaker 2: The firm manages over twelve trillion dollars. So let's talk

621
00:32:42,840 --> 00:32:47,280
Speaker 2: about alternatives. This has been one of the fastest growing

622
00:32:47,320 --> 00:32:53,640
Speaker 2: space in investing. Tell us what Blackrock is doing. I

623
00:32:53,680 --> 00:32:58,040
Speaker 2: think a black Rock of ey shares and biggest manager

624
00:32:58,080 --> 00:33:01,920
Speaker 2: of public equities and in the world, what is Blackrock

625
00:33:02,040 --> 00:33:03,240
Speaker 2: doing with alternatives?

626
00:33:03,800 --> 00:33:07,800
Speaker 3: So if you think about the capital markets, public is

627
00:33:07,840 --> 00:33:10,360
Speaker 3: only one piece of those capital markets, and for so

628
00:33:10,480 --> 00:33:13,880
Speaker 3: long private markets the other part of capital markets have

629
00:33:14,040 --> 00:33:18,560
Speaker 3: been utilized for institutions or even the ultra ultra ultra

630
00:33:18,640 --> 00:33:22,240
Speaker 3: high at Worth, and so there is a world to

631
00:33:22,360 --> 00:33:25,880
Speaker 3: believe strongly an investment thesis that if you're going to

632
00:33:26,240 --> 00:33:29,360
Speaker 3: do the best thing for a portfolio, for an investment,

633
00:33:29,440 --> 00:33:32,600
Speaker 3: you need full exposure to public and to private markets.

634
00:33:33,040 --> 00:33:36,560
Speaker 3: And so Blackrock is doing a lot to help advisors

635
00:33:36,920 --> 00:33:40,520
Speaker 3: and their clients have easier access to private markets. So

636
00:33:40,560 --> 00:33:44,920
Speaker 3: you may recall last year we had a whirlwind news

637
00:33:44,920 --> 00:33:51,520
Speaker 3: announcements around HPS, GIP, pre Quinn, three acquisitions all related

638
00:33:51,520 --> 00:33:57,680
Speaker 3: to private markets. Pre Quinn related to data, GIP, infrastructure, HPS, credit,

639
00:33:57,840 --> 00:34:02,320
Speaker 3: and private financing. And so we acquired these firms so

640
00:34:02,360 --> 00:34:05,280
Speaker 3: that we could offer to our clients not just the

641
00:34:05,280 --> 00:34:08,200
Speaker 3: full power of the capital markets through public but now

642
00:34:08,239 --> 00:34:11,760
Speaker 3: also through private. And so we're very focused on really

643
00:34:11,760 --> 00:34:17,480
Speaker 3: democratizing access, helping everyday people, when appropriate, gain access to

644
00:34:17,520 --> 00:34:19,640
Speaker 3: this very important part of the capital markets.

645
00:34:19,880 --> 00:34:23,120
Speaker 2: And I mentioned earlier sixty forty. You peel ten percent

646
00:34:23,160 --> 00:34:25,960
Speaker 2: off the sixty and ten percent off the forty, and

647
00:34:26,000 --> 00:34:28,800
Speaker 2: you end up with something that looks like fifty thirty twenty.

648
00:34:29,480 --> 00:34:32,439
Speaker 2: Is that the future of this because typically we see

649
00:34:32,440 --> 00:34:35,239
Speaker 2: a lot of privates. They tend to be locked up

650
00:34:35,239 --> 00:34:37,120
Speaker 2: for a long period of time. They tend to be

651
00:34:37,920 --> 00:34:42,640
Speaker 2: complex to administer, custodians and reporting and fees. It's like

652
00:34:42,760 --> 00:34:45,600
Speaker 2: you buy an eye share, it's easy. You want to

653
00:34:45,600 --> 00:34:48,239
Speaker 2: get involved on the private side, it just seems so

654
00:34:48,360 --> 00:34:52,279
Speaker 2: much more complex for anyone less than I don't know,

655
00:34:52,280 --> 00:34:55,080
Speaker 2: pick a number, twenty million, ten million, and five million.

656
00:34:55,320 --> 00:34:59,000
Speaker 2: So what does the future of alternative investment look like

657
00:34:59,320 --> 00:34:59,960
Speaker 2: at Blackrock?

658
00:35:00,080 --> 00:35:01,960
Speaker 3: Yeah, so you hit on it, right. I mean, it

659
00:35:02,040 --> 00:35:05,960
Speaker 3: was so hard for people to gain access to it.

660
00:35:05,960 --> 00:35:08,360
Speaker 3: It was complicated if they were able to get access

661
00:35:08,400 --> 00:35:11,120
Speaker 3: to it. And to your point, liquidity was not necessarily

662
00:35:11,480 --> 00:35:14,879
Speaker 3: a top priority for various reasons. When you think about

663
00:35:14,920 --> 00:35:17,279
Speaker 3: where the market is going now, there's just been so

664
00:35:17,480 --> 00:35:20,800
Speaker 3: much change over the wealth industry on how the wealth

665
00:35:20,800 --> 00:35:24,799
Speaker 3: industry as a whole is starting to modernize access to

666
00:35:24,840 --> 00:35:26,920
Speaker 3: private markets. And so one thing we are doing at

667
00:35:26,960 --> 00:35:32,279
Speaker 3: Blackrock is we've focused very much on technology partnerships that

668
00:35:32,400 --> 00:35:37,319
Speaker 3: allow and relieve the advisor of all of that operational complexity.

669
00:35:37,640 --> 00:35:40,680
Speaker 3: So you think about a firm like I Capital, I Capital.

670
00:35:40,400 --> 00:35:42,000
Speaker 2: Right of which you are on the board of.

671
00:35:42,280 --> 00:35:44,400
Speaker 3: I am on the board. And you know, I Capital

672
00:35:44,440 --> 00:35:47,719
Speaker 3: has done so much to actually pave the way for

673
00:35:47,840 --> 00:35:51,960
Speaker 3: advisor's ability, wealth management firm's ability to access private markets.

674
00:35:52,239 --> 00:35:55,600
Speaker 3: But they are a technology platform. You still need the products.

675
00:35:55,600 --> 00:35:58,319
Speaker 3: And to your point on draw down and liquidity, we've

676
00:35:58,360 --> 00:36:01,239
Speaker 3: done so much work to build solution that actually are

677
00:36:01,280 --> 00:36:05,120
Speaker 3: semi liquid and that provide that liquidity on a regular

678
00:36:05,160 --> 00:36:08,600
Speaker 3: basis for advisors and their clients. And so that's something

679
00:36:08,640 --> 00:36:11,680
Speaker 3: that has really held advisors back in the past. I

680
00:36:11,719 --> 00:36:14,840
Speaker 3: think the last point vary is it's still new to

681
00:36:14,920 --> 00:36:17,640
Speaker 3: so many and there's a lot of education that's needed,

682
00:36:18,120 --> 00:36:20,440
Speaker 3: and you know, it's education on the asset class and

683
00:36:21,000 --> 00:36:22,960
Speaker 3: what does this really mean? And how do I actually

684
00:36:22,960 --> 00:36:25,440
Speaker 3: strip the ten percent here and the ten percent there?

685
00:36:25,719 --> 00:36:28,000
Speaker 3: And so we've gone a step further to say, how

686
00:36:28,040 --> 00:36:31,840
Speaker 3: do we make it even easier for advisors to build portfolios,

687
00:36:32,200 --> 00:36:34,319
Speaker 3: Not that I have my private markets over here and

688
00:36:34,360 --> 00:36:37,160
Speaker 3: my public markets over there and another account, but instead,

689
00:36:37,200 --> 00:36:39,840
Speaker 3: how do I build a portfolio that's one account and

690
00:36:39,880 --> 00:36:43,080
Speaker 3: it holds public and private together in one portfolio, that's

691
00:36:43,120 --> 00:36:46,880
Speaker 3: professionally managed asset allocation. All of the due diligence has

692
00:36:46,920 --> 00:36:50,560
Speaker 3: been done, and so recently, we've engaged in partnerships with

693
00:36:50,600 --> 00:36:53,680
Speaker 3: firms like GEOL and I Capital to be able to

694
00:36:53,680 --> 00:36:57,640
Speaker 3: bring models to market strategic asset allocated models that are

695
00:36:57,640 --> 00:37:02,080
Speaker 3: professionally managed, that incorporate private markets alongside of public markets.

696
00:37:02,360 --> 00:37:06,560
Speaker 2: So the pushback I hear from various people about alternatives.

697
00:37:07,160 --> 00:37:11,399
Speaker 2: They're expensive, they're liquid, you have these long lockups. Doing

698
00:37:11,480 --> 00:37:15,720
Speaker 2: due diligence is complex and expensive. All of the back

699
00:37:15,800 --> 00:37:19,680
Speaker 2: office aspect seem to be like a series of one offs.

700
00:37:19,760 --> 00:37:24,800
Speaker 2: There's no real scalability. How are you addressing these issues?

701
00:37:25,040 --> 00:37:28,080
Speaker 3: We have found a way to scale and make it

702
00:37:28,160 --> 00:37:30,759
Speaker 3: more convenient. So all of that work that you just

703
00:37:30,800 --> 00:37:34,160
Speaker 3: talked about, the due diligence, the operations, the complexity, we

704
00:37:34,320 --> 00:37:37,759
Speaker 3: have taken that on. We have built model portfolios that

705
00:37:37,840 --> 00:37:40,680
Speaker 3: do all of that for the advisor. The advisor just

706
00:37:40,719 --> 00:37:42,160
Speaker 3: has to offer that to their client.

707
00:37:42,440 --> 00:37:44,839
Speaker 2: Is this in an SMA or is this how does

708
00:37:44,880 --> 00:37:48,719
Speaker 2: this so? My firm we wear black Rock Vanguard, a

709
00:37:48,719 --> 00:37:52,560
Speaker 2: handful of other The bulk of our portfolios, either direct

710
00:37:52,640 --> 00:37:57,400
Speaker 2: indexing or mutual funds or ETFs, looks like that. Some

711
00:37:58,320 --> 00:38:01,919
Speaker 2: clients say, what do you offer in terms of alternatives?

712
00:38:01,920 --> 00:38:03,800
Speaker 2: And we have to click off and run of stuff.

713
00:38:04,239 --> 00:38:08,000
Speaker 2: And what I've noticed is once you start working into

714
00:38:08,080 --> 00:38:11,040
Speaker 2: the here's the costs, and here's the lockup, and here's

715
00:38:11,080 --> 00:38:13,239
Speaker 2: what the reporting looks like, and it's held at a

716
00:38:13,280 --> 00:38:17,120
Speaker 2: custodian here, the complexity tends to be like, is this

717
00:38:17,160 --> 00:38:22,640
Speaker 2: really worth it? Well, theoretically, it provides diversification, and historically

718
00:38:22,680 --> 00:38:27,040
Speaker 2: there have been some cases of outperformance. All that comes

719
00:38:27,040 --> 00:38:29,480
Speaker 2: off the advisor's plate and you guys handle all of it.

720
00:38:29,640 --> 00:38:32,000
Speaker 3: So, if an advisor wanted to build a portfolio for

721
00:38:32,120 --> 00:38:36,120
Speaker 3: you, you're the client. The advisor could call Blackrock, could say,

722
00:38:36,120 --> 00:38:38,600
Speaker 3: I want to build a custom portfolio. I wanted to

723
00:38:38,640 --> 00:38:41,920
Speaker 3: have this component of public markets, maybe it's I shares ETFs,

724
00:38:41,960 --> 00:38:44,880
Speaker 3: maybe it's direct indexing APERIO. I would like it to

725
00:38:44,920 --> 00:38:47,960
Speaker 3: have this component of private markets, perhaps it's Blackrock Credit,

726
00:38:48,080 --> 00:38:51,759
Speaker 3: Blackrock Equity on the private side. We will customize that

727
00:38:51,880 --> 00:38:54,040
Speaker 3: for them, and then it's waiting for them on a

728
00:38:54,040 --> 00:38:57,759
Speaker 3: platform like geowealth, which is a you know, geo wealth well,

729
00:38:58,280 --> 00:39:01,399
Speaker 3: a technology platform that will automatically rebalance it for them,

730
00:39:01,600 --> 00:39:03,960
Speaker 3: and that advisor can now then invest their clients in

731
00:39:03,960 --> 00:39:04,719
Speaker 3: that portfolio.

732
00:39:04,800 --> 00:39:06,879
Speaker 2: How about if a firm comes up to you and says, Hey,

733
00:39:06,920 --> 00:39:09,359
Speaker 2: we're pretty good on the stocks and bond side, we

734
00:39:09,400 --> 00:39:12,160
Speaker 2: really need help on the alt side. And we have

735
00:39:12,320 --> 00:39:18,280
Speaker 2: such embedded long term gains that it's painful to peel

736
00:39:18,400 --> 00:39:21,080
Speaker 2: too much off. But going forward, we want to build

737
00:39:21,080 --> 00:39:25,280
Speaker 2: this into what we offer and add this to existing clients.

738
00:39:25,600 --> 00:39:26,880
Speaker 2: What does that solution look like?

739
00:39:27,000 --> 00:39:30,520
Speaker 3: Call Blackrock. We have a team of you asked about

740
00:39:30,520 --> 00:39:34,799
Speaker 3: CFAs earlier. We have a team of CFAs portfolio consultants,

741
00:39:34,960 --> 00:39:38,719
Speaker 3: tax economists who do nothing but work with advisors every

742
00:39:38,800 --> 00:39:42,000
Speaker 3: day on solving those problems. They will work, they will consult,

743
00:39:42,080 --> 00:39:44,640
Speaker 3: they will help them take the portfolio they have. We

744
00:39:44,680 --> 00:39:47,160
Speaker 3: want to meet the advisors where they are right, so

745
00:39:47,200 --> 00:39:48,920
Speaker 3: we want to help them build on what they have,

746
00:39:49,320 --> 00:39:51,520
Speaker 3: and we will work with them to take that portfolio

747
00:39:51,719 --> 00:39:55,319
Speaker 3: and transition it into whatever the destination is they're going for.

748
00:39:55,480 --> 00:39:56,880
Speaker 3: We'll work with them in a way to do it

749
00:39:56,960 --> 00:39:59,840
Speaker 3: tax efficiently and at the appropriate cadence for their client.

750
00:40:00,360 --> 00:40:04,239
Speaker 2: And you guys very successfully took crypto and bitcoin and

751
00:40:04,280 --> 00:40:06,600
Speaker 2: put it into an ETF. Are we ever going to

752
00:40:06,600 --> 00:40:09,880
Speaker 2: get to a point where alts become an ETF product?

753
00:40:10,400 --> 00:40:13,359
Speaker 3: Look, I think there is a world where so much

754
00:40:13,400 --> 00:40:15,279
Speaker 3: can happen right in the next five years. I think

755
00:40:15,280 --> 00:40:17,760
Speaker 3: we're going to see a lot of things around private markets.

756
00:40:18,320 --> 00:40:21,279
Speaker 3: Part of that is solving for data and having the

757
00:40:21,320 --> 00:40:24,719
Speaker 3: transparency around the private markets. What is an ETF, right,

758
00:40:24,719 --> 00:40:28,640
Speaker 3: it's transparency into that index. Part of our thought process

759
00:40:28,680 --> 00:40:31,839
Speaker 3: in acquiring pre Kanals would be able to offer data

760
00:40:31,880 --> 00:40:35,400
Speaker 3: transparency around private markets. But I also think that sometimes

761
00:40:35,440 --> 00:40:39,319
Speaker 3: people naturally go to ETF as kind of shorthand for liquidity,

762
00:40:40,080 --> 00:40:43,839
Speaker 3: convenient and low cost. And I think there's a lot

763
00:40:43,880 --> 00:40:45,680
Speaker 3: of ways that we have to figure out as an

764
00:40:45,680 --> 00:40:47,960
Speaker 3: industry and black Rocks working on this right now. How

765
00:40:47,960 --> 00:40:52,040
Speaker 3: do you structure and build vehicles that allow for liquidity,

766
00:40:52,239 --> 00:40:56,239
Speaker 3: allow for lower cost, and allow for easier access, less

767
00:40:56,239 --> 00:40:59,520
Speaker 3: complexity around private markets. Maybe it's an ETF, maybe it's

768
00:40:59,560 --> 00:40:59,960
Speaker 3: something else.

769
00:41:00,239 --> 00:41:03,479
Speaker 2: Yeah, liquidity is always the challenge when you have an

770
00:41:03,480 --> 00:41:07,439
Speaker 2: investment product that buy design is supposed to play out

771
00:41:07,480 --> 00:41:10,520
Speaker 2: over five, seven, eight years. They're not public for a reason.

772
00:41:11,080 --> 00:41:14,239
Speaker 2: They need the breadth for whatever that market cycle is

773
00:41:14,280 --> 00:41:18,120
Speaker 2: to realize those gains. So I get the challenge, what

774
00:41:18,160 --> 00:41:21,799
Speaker 2: are you doing to educate advisors and clients about what

775
00:41:21,840 --> 00:41:22,960
Speaker 2: this process looks like.

776
00:41:23,080 --> 00:41:25,319
Speaker 3: I'm glad you asked that because I keep coming back

777
00:41:25,360 --> 00:41:28,879
Speaker 3: to liquidity is a challenge when it does not match

778
00:41:28,880 --> 00:41:32,759
Speaker 3: an expectation of a client, and so advisors need to

779
00:41:32,800 --> 00:41:36,359
Speaker 3: fully understand what they're working with when they delve into

780
00:41:36,360 --> 00:41:38,640
Speaker 3: private markets, and in some cases it is a five

781
00:41:38,680 --> 00:41:40,920
Speaker 3: to seven year lockup if they're doing drawdowns. In some

782
00:41:41,040 --> 00:41:44,680
Speaker 3: cases you do have a liquidity interval every quarter. And

783
00:41:44,760 --> 00:41:48,560
Speaker 3: so we are working with advisors all across the industry

784
00:41:48,920 --> 00:41:53,080
Speaker 3: to help educate them on the new type of private markets,

785
00:41:53,120 --> 00:41:56,040
Speaker 3: the new vehicles, the semi liquid structures, but then more

786
00:41:56,120 --> 00:41:58,839
Speaker 3: so we're working with them to help them understand how

787
00:41:58,880 --> 00:42:02,640
Speaker 3: do you actually put that in a whole portfolio. Talk

788
00:42:02,680 --> 00:42:06,160
Speaker 3: to me about how private markets sits alongside of public

789
00:42:06,200 --> 00:42:09,799
Speaker 3: markets and what that does for the risk profile, for

790
00:42:09,920 --> 00:42:12,840
Speaker 3: the return profile, and for the liquidity profile.

791
00:42:13,440 --> 00:42:16,560
Speaker 2: And Blackrock launched a model, i want to say, earlier

792
00:42:16,600 --> 00:42:21,240
Speaker 2: this year that uses both private and public assets under

793
00:42:21,680 --> 00:42:25,040
Speaker 2: one ticker. That sounds like really challenging to put together.

794
00:42:25,120 --> 00:42:26,719
Speaker 2: Tell us a little bit about that.

795
00:42:26,960 --> 00:42:30,800
Speaker 3: Yeah, it was challenging, very challenging, and it was something

796
00:42:30,800 --> 00:42:33,080
Speaker 3: that we could not do alone for all of the

797
00:42:33,120 --> 00:42:38,239
Speaker 3: reasons you mentioned. It took operations and technology platforms like

798
00:42:38,360 --> 00:42:43,040
Speaker 3: I Capital. It took operations and rebalancing and trade platforms

799
00:42:43,120 --> 00:42:46,360
Speaker 3: like geowealth to be able to allow us to deliver

800
00:42:46,440 --> 00:42:49,840
Speaker 3: this portfolio. So this was something that we announced earlier

801
00:42:49,880 --> 00:42:53,120
Speaker 3: this year alongside of Geowealth and I Capital, and it

802
00:42:53,160 --> 00:42:55,960
Speaker 3: was the first of its kind in the industry. A

803
00:42:56,040 --> 00:42:59,600
Speaker 3: model portfolio that in one model, in one account, you

804
00:42:59,640 --> 00:43:03,759
Speaker 3: can have of public and private automatic rebalancing customized for

805
00:43:03,840 --> 00:43:06,920
Speaker 3: your client, done so easily, so conveniently.

806
00:43:07,280 --> 00:43:10,520
Speaker 2: Some of what you're describing sounds a little bit like

807
00:43:11,320 --> 00:43:14,439
Speaker 2: OCIOs that kind of were the rage a few years ago,

808
00:43:14,920 --> 00:43:19,359
Speaker 2: outsource CIOs where a professional manager can bring a higher

809
00:43:19,440 --> 00:43:24,160
Speaker 2: level of professional wealth management to a smaller shop. Tell us,

810
00:43:24,560 --> 00:43:27,120
Speaker 2: is this similar to that or what are the parallels?

811
00:43:27,239 --> 00:43:32,040
Speaker 3: Yeah, it is one of the most accelerated trend we

812
00:43:32,080 --> 00:43:34,319
Speaker 3: are seeing in the wealth market right now, which is

813
00:43:34,360 --> 00:43:38,200
Speaker 3: this whole notion of outsourcing and whether an advisor is

814
00:43:38,280 --> 00:43:41,640
Speaker 3: doing it because they want to professionalize what they're offering

815
00:43:41,640 --> 00:43:43,840
Speaker 3: to their client, or whether an advisor is choosing to

816
00:43:43,840 --> 00:43:47,200
Speaker 3: outsource because they want to save time and their value

817
00:43:47,280 --> 00:43:49,600
Speaker 3: is being with the client and talking about the holistic

818
00:43:49,640 --> 00:43:52,680
Speaker 3: wealth plan, not the investment management component of it, and

819
00:43:52,760 --> 00:43:56,600
Speaker 3: so they turn to Blackrock to be the outsourced provider,

820
00:43:57,000 --> 00:43:59,840
Speaker 3: and so we have a model's business, which is effectively

821
00:44:00,120 --> 00:44:04,279
Speaker 3: ocio business. A model's business for the wealth channel is

822
00:44:04,320 --> 00:44:07,680
Speaker 3: three hundred and fifty billion today. It's grown rapidly over

823
00:44:07,719 --> 00:44:10,080
Speaker 3: the past few years. We think that'll double in the

824
00:44:10,120 --> 00:44:13,160
Speaker 3: next few years. And it's because advisors are turning to

825
00:44:13,239 --> 00:44:15,560
Speaker 3: us to say, please, let us outsource to you. And

826
00:44:15,600 --> 00:44:18,120
Speaker 3: it's not just advisors, wealth managers are doing the same

827
00:44:18,440 --> 00:44:21,480
Speaker 3: because again, wealth managers are going to focus on their

828
00:44:21,520 --> 00:44:25,320
Speaker 3: core value, which is serving their clients, helping their clients

829
00:44:25,360 --> 00:44:29,200
Speaker 3: build financial plans, and helping them navigate their wealth picture holistically.

830
00:44:29,600 --> 00:44:31,600
Speaker 3: They turned to black Rock to help them scale their

831
00:44:31,640 --> 00:44:35,040
Speaker 3: investment management and that's where our outsourcing capabilities come in.

832
00:44:35,320 --> 00:44:38,520
Speaker 2: So we've talked about wealth management, we've talked about I

833
00:44:38,719 --> 00:44:43,960
Speaker 2: shares and as well as alpha pursuit and retirement planning.

834
00:44:44,400 --> 00:44:48,880
Speaker 2: My last question for you is what do you think advisors, clients,

835
00:44:48,960 --> 00:44:52,680
Speaker 2: investors are not thinking about but perhaps should be. What

836
00:44:53,040 --> 00:44:55,719
Speaker 2: important topics It could be an asset, it could be

837
00:44:55,760 --> 00:44:58,080
Speaker 2: a geography, it could be a policy or data point.

838
00:44:58,960 --> 00:45:01,560
Speaker 2: What do you think is getting over looked but just shouldn't.

839
00:45:01,800 --> 00:45:06,680
Speaker 3: I think taxes is still not being discussed enough. Taxes

840
00:45:06,719 --> 00:45:08,720
Speaker 3: as a concept. I mean, there is so much value

841
00:45:08,719 --> 00:45:10,600
Speaker 3: you can bring as an advisor to your client by

842
00:45:10,680 --> 00:45:13,879
Speaker 3: just having that conversation asking the question. So I would

843
00:45:13,960 --> 00:45:16,640
Speaker 3: encourage everyone to do that. That is such a way

844
00:45:16,680 --> 00:45:19,160
Speaker 3: to build loyalty, trust and deep in relationship. And by

845
00:45:19,160 --> 00:45:21,160
Speaker 3: the way, your client starts to tell you where they

846
00:45:21,160 --> 00:45:24,080
Speaker 3: have assets elsewhere. The other area, I would say, is

847
00:45:24,200 --> 00:45:28,040
Speaker 3: just really thinking about the future growth drivers of our economy.

848
00:45:28,200 --> 00:45:32,040
Speaker 3: So infrastructure AI. We didn't talk about AI, but.

849
00:45:32,080 --> 00:45:37,080
Speaker 4: That the another thing might be big ones exactly, but

850
00:45:37,320 --> 00:45:37,799
Speaker 4: you know, you.

851
00:45:37,680 --> 00:45:40,680
Speaker 3: Think about some of these future growth drivers infrastructure as

852
00:45:40,760 --> 00:45:43,920
Speaker 3: part of you know why we acquire GIP, but we

853
00:45:43,960 --> 00:45:47,520
Speaker 3: have I share solutions that really align with infrastructure as well.

854
00:45:47,520 --> 00:45:51,000
Speaker 3: And I just think that's such an under discussed opportunity.

855
00:45:51,280 --> 00:45:53,400
Speaker 2: Really interesting. All Right, I only have you for a

856
00:45:53,440 --> 00:45:56,560
Speaker 2: few more minutes, so let's jump to our favorite questions

857
00:45:56,560 --> 00:45:59,120
Speaker 2: that we ask all our guests, starting with tell us

858
00:45:59,120 --> 00:46:02,040
Speaker 2: about your mint who helped shape your career.

859
00:46:02,800 --> 00:46:06,080
Speaker 3: So this is such a good question and hard question.

860
00:46:06,160 --> 00:46:08,959
Speaker 3: I will answer it this way. There are so many

861
00:46:09,040 --> 00:46:11,560
Speaker 3: I love to have a board of director's approach, Like,

862
00:46:11,600 --> 00:46:13,680
Speaker 3: I have this whole crew of people that I go

863
00:46:13,760 --> 00:46:16,799
Speaker 3: to for different things, and I truly like, you know,

864
00:46:16,880 --> 00:46:19,840
Speaker 3: you mentioned Salim Ramsey, He's one of them. Martin Small,

865
00:46:19,960 --> 00:46:23,040
Speaker 3: Rob Goldstein, Rob Carpedo, Mark Weedman, Like there's so many

866
00:46:23,640 --> 00:46:26,200
Speaker 3: Ann Ackerley who used to run the retirement business at

867
00:46:26,200 --> 00:46:28,879
Speaker 3: Black Rock, and they've all played a different role in

868
00:46:28,920 --> 00:46:30,239
Speaker 3: my career and in my life.

869
00:46:30,480 --> 00:46:33,480
Speaker 2: Huh really really interesting. Let's talk books. What are some

870
00:46:33,520 --> 00:46:35,439
Speaker 2: of your favorites? What are you reading right now?

871
00:46:36,560 --> 00:46:40,920
Speaker 3: Lama Lama red pajama.

872
00:46:39,600 --> 00:46:40,600
Speaker 2: To your kids at night?

873
00:46:40,680 --> 00:46:44,040
Speaker 3: Is that what that three year old he loves Lama Lama.

874
00:46:44,120 --> 00:46:46,600
Speaker 3: So any Lama Lama you can imagine. But actually I

875
00:46:46,680 --> 00:46:49,600
Speaker 3: just finished a great book for the second time. A

876
00:46:49,640 --> 00:46:55,200
Speaker 3: more beautiful question, huh, warren Berger. It talks about the

877
00:46:55,360 --> 00:46:59,160
Speaker 3: art of inquiry and using inquiry too. I mean, gosh,

878
00:46:59,160 --> 00:47:01,280
Speaker 3: the heart of any in event. Why does the world

879
00:47:01,320 --> 00:47:03,279
Speaker 3: not have this? What if the world did have this?

880
00:47:03,440 --> 00:47:05,520
Speaker 3: How do we get the world to have this? And

881
00:47:05,560 --> 00:47:08,359
Speaker 3: so it really talks about the art of inquiry as

882
00:47:08,400 --> 00:47:12,560
Speaker 3: a way to better understand, to fuel curiosity, and to

883
00:47:12,600 --> 00:47:15,320
Speaker 3: innovate and create better solutions.

884
00:47:15,600 --> 00:47:18,799
Speaker 2: I love that name. I'm gonna check that out. Let's

885
00:47:18,840 --> 00:47:23,799
Speaker 2: talk streaming. What are you watching or listening to these days? Netflix? Amazon? Podcasts?

886
00:47:23,960 --> 00:47:25,560
Speaker 2: Tell us what's keeping you entertained?

887
00:47:25,640 --> 00:47:29,160
Speaker 3: So I have this this Barbell approach. I go, I

888
00:47:29,200 --> 00:47:32,640
Speaker 3: love reality TV below Deck? Do you watch Below Deck?

889
00:47:32,760 --> 00:47:34,279
Speaker 2: No, but I know plenty of people.

890
00:47:34,040 --> 00:47:36,680
Speaker 3: Who do so good. But that's kind of one side

891
00:47:36,680 --> 00:47:41,040
Speaker 3: of it. The other side of it is I like intensity. So,

892
00:47:41,120 --> 00:47:45,560
Speaker 3: like Mayor of Kingstown, I'm watching Terminal List Dark Wolf

893
00:47:45,719 --> 00:47:51,359
Speaker 3: right now. I think that's on Amazon. It is very good, basically, Yes,

894
00:47:51,560 --> 00:47:54,240
Speaker 3: Navy Seal turna operative.

895
00:47:54,080 --> 00:47:58,680
Speaker 4: Very interesting, right, yeah, yeah, we just finished Killing Eve.

896
00:47:58,920 --> 00:48:03,400
Speaker 4: Oh my wife watched it, loved it and said you

897
00:48:03,440 --> 00:48:05,480
Speaker 4: have to watch this, and she rewatched it with me.

898
00:48:05,920 --> 00:48:10,680
Speaker 4: If you like that sort of high intensity espionage, really

899
00:48:10,920 --> 00:48:15,680
Speaker 4: great cast, really strong recommend So our final two questions,

900
00:48:16,280 --> 00:48:18,680
Speaker 4: what sort of advice would you give to a recent

901
00:48:18,719 --> 00:48:23,880
Speaker 4: college grad interest in the career in retirement services, wealth

902
00:48:23,920 --> 00:48:25,040
Speaker 4: management investing?

903
00:48:25,239 --> 00:48:26,319
Speaker 2: How would you advise them?

904
00:48:26,719 --> 00:48:29,239
Speaker 3: So I go back to my way my entry into

905
00:48:29,239 --> 00:48:31,440
Speaker 3: this industry. I didn't know the first thing about anything.

906
00:48:31,440 --> 00:48:33,320
Speaker 3: I didn't think I wanted to be in this industry,

907
00:48:33,600 --> 00:48:35,720
Speaker 3: but I went in with open eyes and I asked

908
00:48:35,760 --> 00:48:38,000
Speaker 3: a lot of questions, and in some ways it was

909
00:48:38,080 --> 00:48:40,719
Speaker 3: like because I didn't have the experience, it made it

910
00:48:40,840 --> 00:48:44,120
Speaker 3: easier for me to be just like an everyday person

911
00:48:44,160 --> 00:48:46,239
Speaker 3: that we were trying to serve. And so I say,

912
00:48:46,320 --> 00:48:48,840
Speaker 3: come into this industry. You don't need a traditional background.

913
00:48:48,880 --> 00:48:51,320
Speaker 3: In fact, I prefer people not to have a traditional

914
00:48:51,400 --> 00:48:54,279
Speaker 3: background of finance or econ. Come into this industry and

915
00:48:54,320 --> 00:48:55,200
Speaker 3: help us make it better.

916
00:48:55,880 --> 00:48:58,560
Speaker 2: Love that and our final question, what do you know

917
00:48:58,600 --> 00:49:04,160
Speaker 2: about the world of wealth management retirement services? Investing today

918
00:49:04,480 --> 00:49:06,759
Speaker 2: would have been useful twenty five years or so ago

919
00:49:06,800 --> 00:49:08,120
Speaker 2: when you were first getting started.

920
00:49:08,600 --> 00:49:12,440
Speaker 3: I was really fortunate to have my father tell me

921
00:49:12,480 --> 00:49:14,400
Speaker 3: that the first thing I needed to do when I

922
00:49:14,400 --> 00:49:16,680
Speaker 3: got a job was start saving in an ira and

923
00:49:16,719 --> 00:49:18,279
Speaker 3: in my four one K and even when it hurt

924
00:49:18,360 --> 00:49:21,000
Speaker 3: to do, I did it. I wish I had known

925
00:49:21,200 --> 00:49:23,239
Speaker 3: back then that I could have been saving in many

926
00:49:23,239 --> 00:49:25,840
Speaker 3: different ways. I could have been investing in many different ways.

927
00:49:26,120 --> 00:49:28,120
Speaker 3: And so you know, to anyone who is out there

928
00:49:28,160 --> 00:49:30,480
Speaker 3: thinking about are they saving enough or investing enough, the

929
00:49:30,480 --> 00:49:33,480
Speaker 3: answer is probably know and you should do more. And

930
00:49:33,560 --> 00:49:35,759
Speaker 3: there's so many ways to do it. You can use

931
00:49:35,800 --> 00:49:38,120
Speaker 3: a financial advisor, you can go direct. You can do

932
00:49:38,200 --> 00:49:41,040
Speaker 3: it in many different ways, but just do it. Just start.

933
00:49:41,320 --> 00:49:42,439
Speaker 3: That's something I would have done.

934
00:49:42,760 --> 00:49:46,080
Speaker 2: Huh, really really good advice. Thank you Jamie for being

935
00:49:46,120 --> 00:49:49,160
Speaker 2: so generous with your time. We have been speaking with

936
00:49:49,280 --> 00:49:53,360
Speaker 2: Jamie Majera. She's head of black Rocks US Wealth Advisory

937
00:49:53,400 --> 00:49:57,360
Speaker 2: Service as well as head of black Rocks Retirement Business.

938
00:49:57,920 --> 00:50:01,200
Speaker 2: If you enjoy this conversation, well, be sure and check

939
00:50:01,239 --> 00:50:04,359
Speaker 2: out any of the previous five hundred and fifty we've

940
00:50:04,400 --> 00:50:07,600
Speaker 2: done over the past eleven years. You can find those

941
00:50:07,640 --> 00:50:13,279
Speaker 2: at iTunes, Spotify, YouTube, Bloomberg, wherever you find your favorite podcast,

942
00:50:13,880 --> 00:50:17,320
Speaker 2: And be sure and check out my new book How

943
00:50:17,440 --> 00:50:22,279
Speaker 2: Not to Invest The ideas, numbers and behavior that destroys

944
00:50:22,320 --> 00:50:25,440
Speaker 2: wealth and how to avoid them How Not to Invest

945
00:50:25,560 --> 00:50:28,680
Speaker 2: at your favorite bookstore. I would be remiss if I

946
00:50:28,680 --> 00:50:31,399
Speaker 2: did not thank the Crack team that helps put these

947
00:50:31,440 --> 00:50:36,359
Speaker 2: conversations together. Meredith Frank is my audio engineer. My producers

948
00:50:36,440 --> 00:50:40,080
Speaker 2: are Anna Luke and a Lesis Noriega. Sage Bauman is

949
00:50:40,080 --> 00:50:44,160
Speaker 2: the head of podcasts at Bloomberg. Shoran Russo is my researcher.

950
00:50:44,800 --> 00:50:48,239
Speaker 2: I'm Barry ert Hants. You've been listening to Masters in

951
00:50:48,320 --> 00:50:50,640
Speaker 2: Business on Bloomberg Radio,