Announced in a memo to staff yesterday, the asset manager said the changes were would enable it to build better “connectivity across regions, asset classes and strategies”.
“As clients look to us to deliver outcomes in today’s environment, they are seeking guidance and unified solutions that span the globe, asset classes and the full spectrum of products more than ever,” the firm said by way of explanation.
Opportunities for growth
According to the firm, multi-asset products represent “one of the firm’s leading opportunities for growth” and, in order to ensure it reaches its potential it has appointed Rick Kushel as head of multi-asset strategies, reporting directly to BlackRock President Rob Kapito.
Kushel’s job will be to lead the business and commercialise the firm’s capabilities across the platform, he was previously chief product officer and head of strategic product management.
Pierre Sarrau, previously deputy chief investment officer, becomes chief investment officer of MAS, while Kevin Holt will move from co-lead on the firm’s Americas fixed income division to a senior role within MAS, “focused on delivering the full capabilities of the multi-asset platform to our clients”. Holt has also been appointed head of BlackRock’s San Francisco and Seattle offices following the retirement of Patrick Dunne.
BlackRock’s impact investing offering led by Deborah Winshel and its LifePath product which is driven by Matt O’Hara will now form part of the MAS franchise as well, the firm said.
Ken Kroner, who has led both the MAS and the scientific active equities businesses since he joined the firm during the BGI acquisition, has decided to retire, the firm said, but will serve as a senior adviser to the group until the end of 2016.
Groups combined
BlackRock has also decided to combine its fundamental active equity and scientific active equity groups into a unified business to be jointly managed by Chris Jones, Nigel Bolton, Raffaele Savi and Jeff Shen. They too report to Kapito.
The decision comes, BlackRock said in the wake of a market environment “characterized by more volatility, lower beta and increased dispersion”, wherein “clients are increasingly looking for active equity solutions irrespective of whether they are fundamental or quantitative strategies”.
The firm has also brought its entire fixed income franchise under the leadership of Tim Webb who is currently head of international fixed income.
Webb becomes global head of fixed income, while Rick Rieder, currently chief investment officer of fundamental fixed income, becomes CIO of global fixed income, both reporting to Kapito.
Investment institute expanded
The firm has also expanded the role of the BlackRock Investment Institute. In future, BlackRock said, it will include deeper research capabilities and an enhanced investment strategy function, under the leadership of Philipp Hildebrand.
Lee Kempler will continue as BII’s executive director, while Jean Boivin will lead the expansion of its research capability as the newly created head of economic and markets research.
Richard Turnill will become Global Chief Investment Strategist, leading the new Investment Strategy function, replacing Ewen Cameron Watt, who has decided to step back from full time involvement in 2016. He steps back on July 1.
The rest of the changes take effect from 1 February.
