BlackRock Buys Aperio, Boosting Its Separately Managed Accounts

Asset management firm BlackRock (NYSE: BLK) is acquiring Aperio, which provides customized index equity separately managed accounts (SMAs) for individuals with ultra-high net worth and institutions served by private banks. The SMAs are based on clients' risk, tax, and personal values. That includes customized Environmental, Social, and Governance (ESG) portfolios.

The $1.7 trillion retail and wealth SMA market is growing at approximately 15% annually, and 35% among registered investment advisors. Aperio has approximately $36 billion in assets under management, and it has an average annual growth rate of roughly 20% over the past five years.

BlackRock, the world's largest asset manager, is a leading provider of SMAs for intermediaries focused on high net worth. It currently offers actively-managed fixed income, equity, and multi-asset SMAs. The acquisition expands its capabilities to include tax-managed broad market indexing and ESG options. It will boost BlackRock's SMA assets by approximately 30% to $160 billion.

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Source Fool.com