Chapter 1. Introduction (300 Words) : Massa

Chapter 1.
Introduction (300 words)

This study contains information on investment management firms in the United Kingdom.
Investment management firms are tasked with overseeing a company's investments and money.
Investment management firms oversee investments made in the company's growth as well as
finances needed to run the business. In this project, two investment funds will be chosen to
discuss their unique tactics. BlackRock is the chosen company, and the funds are iShares Russell
2000 ETF and BlackRock Equity Dividend Inv. Moreover, the selected funds will be evaluated
separately and will analyse the performance of the investments. Furthermore, suitable
recommendations will be provided for the improvement of the investments.
As per the observation of Massa et al. (2021), BlackRock, Inc. is a New York-based international
investment management firm. BlackRock is the world's largest asset manager, with slightly over
$9 trillion in assets under management as of June 2021. It was founded in 1988 as a risk
management and fixed income institutional asset manager. BlackRock has 70 locations in 30
countries and serves clients in 100 countries (Tokic, 2018).
As per the reports of Griffith (2019), BlackRock announced earnings of US$4.970 billion for
fiscal year 2017, with annual sales of US$12.491 billion, up 12.0% over the previous fiscal year.
In October 2018, BlackRock's stock was trading at $414 per share, with a market capitalization
of $61.7 billion. According to the Fortune 500 ranking of the top US businesses by revenue,
BlackRock was placed 237th in 2018. As per the findings of Massa et al. (2021), iShares, which
BlackRock bought from Barclays in 2009, is its largest subsidiary. iShares is the biggest supplier
of exchange-traded funds (ETFs) in the globe, with over 800 ETFs and more than $1 trillion in
assets under management.
Chapter 2. Evaluation of Funds (600 words)

As per the findings of Alderighi (2020), In the competitive US small-cap market, the iShares
Russell 2000 ETF (IWM) is one of the better options. The Russell 2000 index is followed by the
fund. The vast portfolio of IWM makes it one of the most diverse funds in the industry. The
fund, in particular, ventures into micro-cap territory, and as a result has frequently been riskier
than our neutral benchmark (as measured by beta). In most other ways, though, incorporating
micro-caps is a legitimate and probably desirable approach to small-caps, and IWM seems very
comparable to the benchmark.
According to Clapp (2019), The MSCI ESG Fund Rating for the iShares Russell 2000 ETF is BBB,
with a 4.45 out of 10 score. The MSCI ESG Fund Rating assesses a portfolio's long-term
resilience to environmental, social, and governance risks and opportunities. The best (AAA) to
the poorest (F) ESG Fund Ratings are given (CCC). Highly rated funds are made up of firms that
have a history of good and/or developing environmental, social, and governance management
that is financially significant. These businesses might be more resistant to ESG-related
challenges.
The fund's Peer Rank compares the MSCI ESG Fund Quality Score to the scores of other funds in
the same peer group, as defined by Thomson Reuters Lipper Global Classification. The iShares
Russell 2000 ETF is ranked in the 19th percentile of its peer group and the 11th percentile of all
funds tracked by MSCI ESG Fund Ratings globally (Carmona et al., 2020).
Issuer BlackRock
Brand iShares
Inception date 05/22
Legal structure Open-ended fund
Expense ratio 0.19%
Assets under management $69.74B
Average daily $ volume $5.14B
Average spread 0.01%
As per the findings Platt (2019), the Equity Dividend Fund is described by BlackRock as a
"fundamental, prudent holding" for investors. It's a low-risk, low-return strategy that seeks for
inexpensive dividend-paying stocks in exchange for consistent growth. Recent management
changes are unlikely to alter the fund's trajectory. The fund has almost $21.33 billion in assets
invested in 106 distinct holdings as of April 29, 2021. Its holdings are largely dividend-paying
firms headquartered in the United States. The top three industries are financials, industrials,
and energy. Wells Fargo & Co., JPMorgan Chase & Co., Comcast Corp., Chevron Corp., and Home
Depot Inc. are among the top holdings of the fund (Dhaigude, 21).
According to the findings of Hemel and Polsky (2021), the fund has generally searched for
dividend-paying firms with a market capitalization of $5 billion or more and a debt-to-capital
ratio of less than 50%. The fund's managers then look for firms that are both inexpensive and
will create enough profit and cash flow to pay dividends on a regular basis. Over the past year,
the fund has returned 52.78 percent, and over the last three years, it has returned 11.81
percent.
As per the findings of Bobb (2021), BlackRock's executive staff grew by one in the summer of
2014. With a background in value investing, Tony DeSpirito, previously of Pzena Investment
Management, has joined the team. Bob Shearer, Kathleen Anderson, and David Cassese are his
managers. Over the last five years, the fund has returned 12.83 percent, with a ten-year return
of 10.66 percent. In the last year, the fund has returned 52.78 percent, 11.81 percent in the last
three years, 12.83 percent in the last five years, and 10.66 percent in the last decade.
This fund seeks to invest in firms that pay dividends and are largely situated in the United
States. The potential for dividend increases to boost returns is something that BlackRock pays
special attention to. With an expense ratio of 0.95 percent, the BlackRock Equity Dividend Fund
is a good choice. Risk is rated "below average" by Morningstar for this fund ( Baines and Hager,
2021).
Reference List
Massa, M., Schumacher, D. and Wang, Y. (2021) Who is afraid of BlackRock?. The Review of
Financial Studies, 34(4), pp.1987-2044.
Tokic, D. (2018) BlackRock Robo‐Advisor 4.0: When artificial intelligence replaces human
discretion. Strategic Change, 27(4), pp.285-290.
Griffith, S.J. (2019) Opt-in stewardship: Toward an optimal delegation of mutual fund voting
authority. Tex. L. Rev., 98, p.983.
Alderighi, S. (2020) Cross-listing in the European ETP market. Economics Bulletin, 40(1),

pp.35-40.
Clapp, J. (2019) The rise of financial investment and common ownership in global agrifood
firms. Review of International Political Economy, 26(4), pp.604-629.
Carmona, J., Delcoure, N. and Fernandez, F.H. (2020) Social media sentiment, tariffs, and
international equity pricing. International Journal of Electronic Finance, 10(1-2), pp.93-115.
Platt, A.I. (2019) Index Fund Enforcement. UC Davis L. Rev., 53, p.1453.
Dhaigude, R., (2021) GROWTH OF MUTUAL FUNDS FROM 2016-2020: A COMPREHENSIVE

REVIEW. European Journal of Molecular & Clinical Medicine, 7(10), pp.4060-4065.
Hemel, D.J. and Polsky, G.D. (2021) Taxing Buybacks. Yale J. on Reg., 38, p.246.
Bobb, R. (2021) The taxation of investors with" equity-equivalents" in ASX-listed entities. Tax

Specialist, 24(4), pp.161-167.
Baines, J. and Hager, S.B. (2021) Commodity traders in a storm: financialization, corporate
power and ecological crisis. Review of International Political Economy, pp.1-54.

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Chapter 1.

Introduction (300 words)

Chapter 2. Evaluation of Funds (600 words)

Alderighi, S. (2020) Cross-listing in the European ETP market. Economics Bulletin, 40(1),

Platt, A.I. (2019) Index Fund Enforcement. UC Davis L. Rev., 53, p.1453.

Dhaigude, R., (2021) GROWTH OF MUTUAL FUNDS FROM 2016-2020: A COMPREHENSIVE

Bobb, R. (2021) The taxation of investors with" equity-equivalents" in ASX-listed entities. Tax

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