How is Aladdin used and how does it add value?
As a central processing system for investment management, Aladdin integrates and connects functions that help manage money. From portfolio management and trading to compliance, operations, and risk oversight, Aladdin brings together people, processes, and systems to help support a seamless investment process. Aladdin allows teams across investments, trading, operations, administration, risk, compliance, and corporate oversight to use a consistent process and share the same data. Aladdin creates value by helping to enable informed decision-making, effective risk management, and efficient trading.
What is Aladdin Risk?
Aladdin Risk is a package of risk and portfolio analytic tools that is part of the full Aladdin platform but can also be purchased on a standalone basis. These tools help investment professionals gain an understanding of portfolio risk and performance across asset classes, resulting in more informed investment decisions. By combining sophisticated risk analytics, highly scalable processing capabilities, and subject matter expertise, Aladdin Risk provides a comprehensive solution while helping risk managers, portfolio managers, compliance officers, executives, and boards meet their risk and reporting needs.
Who uses Aladdin and Aladdin Risk?
Aladdin and its risk analytics are relied upon by over 100 institutions to oversee over $14 trillion in assets under management (as of December 31st, 2013). Clients include insurers, pensions, corporations, asset managers, banks, and official institutions.
What is Aladdin's relationship with BlackRock Solutions® (BRS)?
Aladdin is one of the three BRS business lines, which include:
a) Aladdin Business, which sells, delivers, and supports the Aladdin platform to external organizations.
b) Financial Markets Advisory (FMA), which provides balance sheet and capital markets advice to clients.
c) Client Solutions, which provides liability management, Liability Driven Investing (LDI), and fiduciary outsourcing services.
How can financial institutions and institutional investors utilize the analytic ability of the platform?
Firms looking solely for risk and return analytics can utilize the Aladdin Risk offering, which provides many of the same analytic tools as the full Aladdin platform, without the order management, trading and operations capabilities. Additionally, clients can couple Aladdin Risk with BlackRock’s other risk consulting services such as LDI management or outsourced Chief Investment Office (CIO) services through BlackRock’s Client Solutions team.
What types of securities does Aladdin analyze? How developed is the platform for reviewing illiquid investments?
Aladdin is a multi-asset class platform which supports risk analytics and the full investment process across equity, fixed income, FX, bank loans, and derivatives. Aladdin also supports risk analysis for alternative investments such as real estate, commodities, and private equity.
What is the Aladdin Trading Network (ATN) and how does it benefit Aladdin clients?
BlackRock entered into an alliance with MarketAxess in July 2013 to create an open trading solution for US corporate bonds (meaning buy side firms can trade directly with each other rather than only through dealers). ATN is the gateway that connects Aladdin to the marketplace to access fragmented liquidity from a variety of sources, and thus Aladdin users can benefit from increased liquidity and best execution through automated integration with the marketplace.