Barclays Global Investors, National Association (BGI) is a privately owned investment manager. The firm also provides fiduciary and trust services to its institutional clients. It provides its services to individuals, institutional investors, retirement plans, defined contribution and defined benefit plans, trusts, foundations, endowments, corporations, and Taft-Hartley unions. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It also manages exchange traded funds and hedge funds for its clients. The firm invests in the public equity, fixed income, and alternative investments markets across the globe. It also makes investments in ADR's and GDR's. ...
400 Howard Street
San Francisco, CA 94105
Founded in 1971
Court Dismisses Lawsuit Against Blackrock Institutional Trust Company, N.A
Aug 29 13
A Tennessee district court dismissed a lawsuit against BlackRock Institutional Trust Company, N.A. that dealt with allegations of excessive fees for certain transactions. The lawsuit alleged that the defendants provides securities lending services to the iShares investment companies and other funds, and BlackRock Fund Advisors, which manages and advises the iShares funds with respect to their investment activities-were wrongly enriched through lending agreements at the expense of investors and violated provisions of the Investment Company Act of 1940 (ICA). The suit alleged that the lending agreement provided excessive compensation to the company defendants, with this compensation being derived from revenue generated by certain securities lending transactions, also known as short-selling transactions. The agreement provided that the defendants received a fee of 35% of the net revenue earned from short-selling transactions in exchange for its services. The plaintiffs alleged that an additional 5% of the short-selling revenue is awarded to the BlackRock affiliates for administrative fees, resulting in a 40/60 division of revenue between the BlackRock affiliates and the iShares funds. The plaintiffs further contend that this is excessive compared to peer mutual funds and compared to funds employing unaffiliated lending agents. The lawsuit claimed that these fees violated Section 36(b), Section 47(b) and Section 36(a) of the ICA. With regard to Section 36(b), the court found that "the statute includes exceptions to its own rule. The defendants argue that one such exception, Section 36(b)(4), is fatal to the plaintiffs' claim, and the court agrees.’ In terms of Section 47(b), the defendants disagreed it created a ‘private right of action for investors.’ They also argued that the plaintiffs' Section 47(b) claim must be dismissed because ‘(i) Sections 17(d), 17(e), and 36(a) do not include private rights of action, and (ii) the plaintiffs' predicate Section 36(b) claim is barred by its statutory text." The court agreed. The court also agreed that the plaintiffs had not cited any cases where "a federal court has drawn a private right of action from Section 47(b)-standing alone or among predicate violations of the ICA.’ As for Section 36(a), which authorizes the Securities and Exchange Commission to enforce breaches of fiduciary duties involving personal misconduct, the court found that the plaintiffs ‘failed to overcome the strong presumption that Congress did not intend to create a private right of action under Section 36(a), and their claim must be dismissed.’ According to the court, the plaintiffs will have till September 17, 2013 to file a motion for leave to amend their lawsuit or to move for an extension of this deadline upon a showing of good cause. If neither motion is filed, the court will render a final judgment of dismissal.
Wilmington Trust and BlackRock Partner to Deliver Institutional-Quality Retirement Funds for Retirement Plans of All Sizes
Mar 26 13
As part of a new partnership to deliver institutional-quality retirement funds for retirement plans of all sizes, Wilmington Trust will offer a suite of collective investment funds that invest in ten index funds and ten LifePath(R) target date funds managed by BlackRock Institutional Trust Company, N.A. The funds combine institutional investment management by BlackRock with pricing designed to be attractive to plan sponsors of all sizes, including the $50 million and under market segment. The funds are offered by Wilmington Trust Retirement and Institutional Services Company (WTRIS) and invest in collective investment funds managed by BlackRock. The funds are available in multiple fee classes across 17 platforms, including some that provide registered investment advisor payment options. The family of funds utilizes BlackRock's LifePath series of target date funds, which are comprised of several of the firm's Index Portfolios, to provide access to the industry's most time-tested target date fund glidepath. BlackRock's unparalleled experience in managing target date funds across multiple market cycles gives plan sponsors a powerful solution to meet their plan requirements.