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BlackRock brass cited 'Aperio' again and again, today, amid analysts' grilling about 'depressed flows' -- it bought the direct-indexing unit in the feverish grab of 2020-2021

CEO Larry Fink and CFO Martin Small used the $39-billion unit, acquired for $1 billion, to show they can both grow organically and explain why they plan a new M&A round to grow inorganically.

Author Brooke Southall October 14, 2023 at 1:18 AM
1 Comment
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Lawrence Fink: We love the opportunity of having Aperio.
Keith Girard contributed to the editing of this article.





Aperio Group





October 14, 2023 — 5:25 PM
Direct indexing is going to mostly be a side business -- you need cash to fund the account to run the indexing and there are fees and set-up involved. The main point though in my opinion is that while direct indexing is a good way to automate the tax harvesting process.... its wrong to show this as the difference between 'tax harvesting' vs 'no tax harvesting'... every advisor tax harvests. so its: [amount of tax harvesting from technology] minus [~20bps in cost to run the automated software] vs [amount of harvesting done without full automation]. Regarding concentrated stock positions and achieving tax losses via tax harvesting, this is fine for the first X dollars but you do have other options like prepaid variable forwards. So again, this is not just as simple as 'direct indexing is better' as a blanket statement.

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Envestnet Inc
Top Executive: Jud Bergman

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