Chapter 363: Infiltrating the Enemy (Seeking monthly votes!!!! 4070)
Broadway Ballroom, sixth floor, Marriott Marquis Hotel, Manhattan.
An old man wearing a dark blue haute couture suit and a light blue shirt, who looked to be in his fifties and whose hairline had receded to the back of his head, was holding a speech manuscript and talking to the audience, gesturing from time to time.
The speaker now is Robert Capito, one of the founders of BlackRock and president of BlackRock.
In the circle, his other well-known identity is that he is a loyal younger brother of Larry Fink, Chairman and CEO of BlackRock.
Since he followed Larry Fink to leave First Boston Bank and join Blackstone to establish BlackRock 28 years ago, he has been Larry Fink's most loyal supporter and subordinate.
And he also received generous rewards, and his annual salary of nearly 30 million US dollars was just for show.
The real reward for him is almost the highest power in the world.
When Robert Capito was giving his speech, sitting in the first row of the audience was Larry Fink, who had just given his opening speech.
As 404 was a small company that was barely qualified to attend the meeting, the three of them could only sit in the last two rows and could not see the people in the front clearly.
"Huh? Where's my senior sister?" Luo Ziming stretched his neck and looked around for a while, but couldn't find Jiang Nanzhen.
"My colleagues, the second point I want to make is the divergence of global monetary policies."
"Monetary policy is experiencing an unprecedented divergence globally. After ending quantitative easing, the Federal Reserve has gradually embarked on a path of raising interest rates, and the market expects further tightening."
"On the other hand, Europe and Japan continue to promote negative interest rates and loose policies. This policy divergence has led to sharp fluctuations in capital flows and also triggered market concerns about currency wars..."
…
“…in this environment, we must remember that the core of hedge funds and alternative investments is flexibility. We have more tools than traditional asset classes to manage risk amidst uncertainty and create value for clients…”
When Robert Capito talked about hedge funds, he unconsciously glanced at his own hedge fund manager John Doe.
Robert Capito was furious when he saw this.
The senior director of BlackRock's hedge fund was sitting in the second row, pointing excitedly at his laptop to a woman wearing a Zhou Dynasty cheongsam next to him, and he didn't listen to what he was saying at all.
John Dewy's full name is John Warburg Dewy, with Warburg in the middle, and he came from the Warburg family.
Because his grandmother was one of the heirs of the Warburg family.
The history of the Warburg family is much longer than that of the Rothschilds, and can even be traced back to the time of Shakespeare's The Merchant of Venice six hundred years ago.
At that time, this family was one of the richest Jude banking families in Venice, and its business has been passed down to this day.
The most famous heir of this family in modern times is Paul Warburg, one of the founders of the Federal Reserve and former vice chairman of the Federal Reserve.
It is precisely because of this relationship that John Doe, a wealthy second-generation who holds seven trust funds, can symbolically be responsible for part of the hedge fund business at BlackRock.
Most wealthy families do not have just one trust fund, but rather manage several or even dozens of trust funds and various assets, including real estate, through family offices. (Note 1)
BlackRock's hedge fund business, which employs low-frequency strategies, is a very marginal part of its business, far less so than its core ETF business, such as iShares ETFs, active management, and fixed-income asset management. (Note 2)
With less power, the requirements for people's abilities are not so high, which is just suitable for the Nth generation rich man like John Doe.
Of course, John Doe, who received the top elite education since childhood and graduated from Harvard, is not that bad. Compared with ordinary people, he is still quite capable and is also a good hand in arbitrage risk management and quantitative trading.
BlackRock management is currently considering expanding his responsibilities to hand over part of the short-term bond ETF department to John Doe.
And now, judging by the expression on his face and his body language, this rising star of the Warburg family looked as ridiculous as a blue gorilla, yet he was unaware of it.
What the hell is this guy doing? Can he not walk when he sees a woman?
"Technology is reshaping the structure of global financial markets at an unprecedented pace. From algorithmic trading to blockchain technology and now artificial intelligence, we have entered a new era driven by fintech. Especially in the past six months, artificial intelligence has brought even more uncertainty to the world..."
“…the transparency, efficiency, and speed of financial markets are fundamentally changing, impacting not only the way we trade but also challenging traditional financial… models…”
Robert Capito glared at John Duy unhappily while reading his speech, but he saw that the woman from Da Zhou next to John Duy seemed to feel his gaze, turned around and looked at him and smiled.
Robert Capito felt as if his heart had stopped for a moment.
The soft fabric on Jiang Nanzhen's body fits her voluptuous figure, outlining her gentle and elegant curves.
The moon-white color shone slightly under the light, contrasting with her skin tone, making her look like a beauty made of white jade.
At the moment when Robert Capito and Jiang Nanzhen looked at each other, Robert Capito's chest quietly surged, as if a small stone was suddenly thrown into a pool of originally calm water, causing slight ripples.
He had never seen this woman before, but at this moment, he felt a sense of déjà vu, even an indescribable throbbing.
He couldn't explain this sudden feeling. Those eyes seemed to carry some kind of magic. He never thought that his heart would beat so fast because of a woman.
His heart beat faster than when he was a teenager having an affair with his cousin who was three years older than him in his uncle's barn.
Robert Capito tried to hide his inner shock and continued his speech, but those eyes seemed to be whispering to him, soft but irresistible.
For a moment, he felt that he was losing some control - a long-lost accelerated heartbeat and a sweet feeling of loss.
It seemed like some kind of ancient and deep call, which pulled him back to the impulse and desire of his youth the moment the woman looked at him.
Although Robert Capito was married only once, the moral values in each circle are different.
For those working in finance, debauchery is just a normal part of daily life. In this circle, it is not a moral issue at all.
Betrayal, setting up schemes to siphon off client assets, leaking company transaction privacy, maliciously embezzling money... these are the immoralities in the financial world.
How can it be considered immoral to find a woman in normal times? Only when you have sex with her and then send her to jail, is it immoral?
So, it’s not that Robert Capito hasn’t seen women before, from Eastern Europe, Northern Europe, with dark skin, white skin, and yellow skin... As long as he wants, there may be no woman in this world that he can’t get.
For him, a woman is no different in essence from a pen, a tie, or a car.
He never thought that he would have such a strong impulse towards a woman.
The woman simply glanced at him and smiled, then shifted her gaze back to John Doe's computer screen.
"Click here to enter the Aladdin system's portfolio management module. Of course, you can also enter here directly from the trading module. For example, if I enter IURE, it will show the iShares Core Real Estate ETF..."
John Doe placed his laptop on his lap, with the screen facing Jiang Nanzhen next to him, and proudly and earnestly explained BlackRock's Aladdin system to Jiang Nanzhen.
The Aladdin system is BlackRock's core technology system, and almost all of BlackRock's asset management, risk analysis and operational processes are included in this system.
The Aladdin system was originally a set of risk management tool software developed by BlackRock, and later gradually became a comprehensive portfolio management system.
Similar to the Bloomberg machine, the Aladdin system is not part of the international Internet and is a completely dedicated network.
But unlike the Bloomberg machine, the Aladdin system focuses on portfolio management, risk control, real-time market data and liquidity analysis, and basically has no social attributes.
Initially, this system was only used by BlackRock itself, but after the repeal of the Glass-Steagall Act, BlackRock began to open the system to other financial institutions for a fee.
As of the end of last year, more than 250 large financial institutions were using Aladdin for asset management and trading of BlackRock and other ETFs, making it the most successful asset management system in the world.
As of now, the assets managed by Aladdin System have exceeded 15 trillion Malaysian dollars.
That is to say, in addition to the more than 6 trillion US dollars in assets managed by BlackRock itself, there are another 9 trillion US dollars in assets that are also related to BlackRock.
And these 15 trillion dollars are related to almost all countries, large companies and wealthy people in the world.
Jiang Nanzhen blinked at John Doe's screen and pointed to a submodule labeled "Sustainable Investment Analysis." "Is this the ESG analysis?"
John Duy looked at Jiangnan Zhenbai's white fingers and swallowed his saliva. He complimented her, "Jane, you are very smart, yes. But as you know, ESG has been misunderstood by some people recently, so the name has been changed in the system."
John Doe clicked on the sustainable investment analysis page. "This is the ESG analysis overview page. You can view the asset's carbon footprint, governance structure rating, and social responsibility score..."
“Click here to select a specific ESG score range, industry category, region, and other filter criteria to find companies or assets that meet ESG criteria…”
"This is an ESG risk exposure tool that allows users to analyze the ESG risks of their entire portfolio or specific assets, including environmental risks, risks of insufficient diversification, and ESG risk alerts for asset suppliers and partners..."
“Any company that needs to obtain financing in the financial market will ultimately have to meet ESG requirements. Even their suppliers and partners must comply with ESG requirements, so…”
BlackRock promotes ESG globally, not by simply forcing companies to comply, but by using the Aladdin system's ESG risk analysis to guide the assets that use the Aladdin system to invest in companies with good ESG practices and avoid companies with poor ESG management.
Some people say that what capital loves most is profit. If you give capital 100% profit, they will do things even at the risk of losing their lives.
But in fact, what capital likes most may be controversial, but what capital hates most is actually risk.
In a sense, capital may be the most conservative thing in the world.
It is the nature of capital to be able to make less profit but not lose money and to be risk-averse.
This risk does not refer to global risk, but the risk of capital loss.
For an individual, achieving class transition requires getting rich quickly, but for big capital, making money is not the most important thing, the most important thing is not losing money.
Therefore, when BlackRock guides ESG construction into a risk, these asset management companies and financial companies will naturally avoid risky investment behaviors and instead invest in companies that do well in ESG.
ESG also has an impact on non-listed companies.
Because ESG rating agencies will also conduct ESG reviews on the suppliers and partners of large companies. If the ESG reputation of the suppliers and partners is poor, it will also lower the ESG scores of these large companies.
If your ESG score is low, under the current premise of quantitative trading, no one will buy your stocks, the turnover rate will be insufficient, the stock price will fall, and eventually the board of directors will be replaced.
In this way, large companies acting as Party A will force their Party B suppliers to do ESG. Similar to the Aladdin system, if you don’t do ESG construction, I won’t buy your products, but will buy products from companies that do a good job in ESG construction.
Unless your product is irreplaceable.
For example, the screens and memory of Sansang and the chips of TSMC.
Through this layer-by-layer transmission, BlackRock can promote ESG to every business corner in the world.
At this point, John Doe suddenly felt something was wrong. After all, because of the incidents at Alcatraz and the Newport office, ESG's reputation had gotten a bit bad recently. He wondered what the beauty next to him thought of ESG, so as not to offend anyone.
Just as I was about to explain a few words, I saw Jiang Nanzhen next to me with a look of recognition and admiration: "No wonder BlackRock is such a respected company. It's really admirable that they can invest so much in social welfare and promoting correct values."
John Doe heaved a sigh of relief. In the past, when he heard others say this, he would agree on the surface, but laugh in his heart, thinking that the other person was an idiot for actually believing such things.
But when he heard Jiang Nanzhen say this today, he just felt that the other person was beautiful, kind-hearted and had positive values.
What a good woman.
"Jane, I just looked at the information of the fund company you work for. Last quarter's performance was indeed outstanding. However, it's still a small company. I'm sorry, I don't mean to look down on small companies. I just think that joining a large company, such as BlackRock, might be more helpful to your future."
John Doe's eyes were eager and sparkling with hope.
"What's your current annual salary? I can quadruple it."
The protagonist will not use hacking methods to hack Aladdin's system, and will not use the same move twice.
Note 1: Generally speaking, it is said that most of the trusts established by some wealthy people in China are intergenerational trusts, but for wealthy families with inheritance, there are often many different trusts, such as independent trusts established by a family branch, and special trusts such as education, marriage, medical care, and entrepreneurship. The 7 trusts in the article do not refer to special trusts, but the intergenerational trusts and independent trusts obtained by John Doe, which can get money every year or every month. If the special trusts are counted, the amount will be higher.
Note 2: Hedge fund business can be divided into low-frequency strategies, high-frequency strategies and event-driven strategies based on operating frequency. BlackRock's hedge funds mainly focus on low-frequency strategies, with relatively low trading frequency. They mainly rely on the strategy development department, and who is in charge of this department has little impact on the business.
Note 3: As of 3062 in the Zhou calendar, the Aladdin system has not yet completed its transition to the cloud and HTML5, and is still using the local client login method.
Everyone is attacking JD.com's female employee ratio, but that's pointless. As long as ESG risk analysis persists within the Aladdin system, all companies will inevitably move in this direction. This is driven by financing needs, an objective requirement. Note that I'm talking about all types of companies, not just private enterprises.
(End of this chapter)
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