BlackRock has reported earnings and the results attest to their strong momentum and continued organic revenue

growth. Highlights: Q1 FY2013 EPS of $3.65, up 16% YoY 12% increase in operating income $2.4 billion in revenue, a 8.9% increase YoY Operating margin up 140 basis points YoY to 40% 8% increase in fee revenue 9% increase in revenue with only a 4% increase in expenses AUM grew 5% to a record $3.936 trillion on an annualized basis $8.8 billion in new flows, the strongest in 2 years Global iShares led the market with $25.6 billion in net inflows Revenues: $2.45B, down 3.5% since last quarter but up 8.9% YoY. Exceptionally strong performance on a number of our single-strategy hedge funds contributed to our strongest first quarter performance fees since 2006. AUM: BlackRocks AUM totaled $3.94 trillion as of Mar 31, 2013, up 3.8% sequentially and 6.8% from the year-ago period. The company witnessed total long-term inflows of $3.63 trillion, rising 4.2% from the last quarter. Highest ever. Revenues benefited of flows and markets contribution to base fee growth. Total Expenses: $1.54B, flat but up 7.4% YoY. Including $18 million of fund launch costs and $33 million of costs associated with about a 3% reduction in staff, higher employee compensation and benefits, G&A expenses in January to strengthen brands position. The higher margin Aladdin platform had 11% growth but was partially offset by a loss in advisory fees. Aladdin is going to cannibalize advisory fees, but will offer a higher return over many years. To put this into perspective, the 11% revenue growth in Aladdin was due to increasing by 7 clients. BLK also saw trends in cash moving into equities and multi-asset classes. This trend will continue as the aging population continues to grow. This last quarter was very strong for BLK. They expanded margins, had strong EPS growth that outpaced organic revenue growth and expenses, and they are continuing to add new clients in iShares. Moving forward, CEO Lawrence Fink believes that they have ample opportunity to maintain this growth and possibly accelerate the growth. The Companys partnership with Fidelity will add 65 new iShares ETFs on their platform. iShares should also be releasing a bond to be traded in the near future. The seasonality of the business should pick up over the next two quarters and capital distribution to shareholders is expected to continue through share buybacks and increasing the dividend. Upon this release I do not feel as though the momentum of the stock is over. The original thesis for purchasing the Company remains the same. The continued and new growth prospects offer excellent catalysts moving forward. Since the stock has been approaching

our revised price target and continuing to show stellar performance, I am going to work on revising the price target upwards. It is also important to note that BLK focuses on YoY rather than QoQ due to the cyclicality in their business. If anyone has any questions, comments, or concerns, please feel free to comment or email me.