Expands access to personalization and tax-management capabilities for wealth separately managed accounts

BlackRock (NYSE: BLK) and SpiderRock Advisors have entered into a strategic venture to expand access for wealth firms and financial advisors to professionally managed, options-based separately managed account (SMA) strategies. This venture builds on BlackRock’s position as a market leader in personalized SMAs, including the recent acquisition of Aperio. Adding access to the capabilities of SpiderRock Advisors will offer wealth management firms and financial advisors more tools to deliver tax-efficient, personalized portfolios and risk management solutions. As part of the strategic venture, BlackRock will make a minority investment in SpiderRock Advisors.

SpiderRock Advisors is a leading provider of customized options strategies in the U.S. wealth market and manages approximately $2.5 billion in client assets as of March 31, 2021. The firm’s strategies are available through all of the major RIA custodians and are focused on risk management and yield enhancement for diversified portfolios as well as concentrated stock positions. BlackRock’s market leaders and consultants in U.S. Wealth Advisory will serve as the primary distribution and marketing team in introducing SpiderRock Advisors’ advisory services and strategies to wealth firms and financial advisors.

BlackRock is already an industry leader in SMAs for U.S. wealth management-focused intermediaries. The firm’s SMA franchise specializes in providing customized actively managed fixed income, equity, and multi-asset strategies and, including the recent acquisition of Aperio, manages over $190 billion in SMAs as of March 31, 2021. The venture with SpiderRock Advisors will expand the breadth of personalization capabilities available to wealth managers through SpiderRock Advisors.

“BlackRock continues to invest to equip wealth managers with innovative solutions that support the twin objectives of better after-tax performance and personalization. We are eager to help advisors access SpiderRock Advisors’ capabilities to help them build tax -efficient, highly customizable portfolios that can generate income and manage risk for their clients,” said Martin Small, Head of BlackRock’s U.S. Wealth Advisory business.

The U.S. retail and wealth SMA market totals approximately $2.1 trillion in assets¹ and is growing at approximately 15% annually and 35% among RIAs². The use of option overlay strategies in the SMA market has grown with the markets reaching new highs in the past few years and investors accumulating concentrated stock positions. This is expected to further increase as investors continue to look for better ways to tackle the suppressed yield and volatile market environment.

“We are excited to partner with BlackRock to introduce SpiderRock Advisors and our options management capabilities to a wider audience of firms and their clients,” said Eric Metz, President and Chief Investment Officer of SpiderRock Advisors. “Innovative advisors understand the value of managing risk as we navigate a challenging capital markets landscape. Between potential tax reform, historically low interest rates, and volatile equity markets, options-based strategies and solutions can often solve client objectives more efficiently than conventional allocations and techniques. With BlackRock’s breadth of industry relationships, SpiderRock Advisors will be able to partner with more advisors to deliver tailored portfolios and help investors achieve their investment goals.”

The terms of the transaction were not disclosed.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About SpiderRock Advisors

SpiderRock Advisors, LLC, a Chicago based affiliate of SpiderRock Holdings, is a tech-enabled asset manager. Combining world-class technology with comprehensive derivative expertise, SpiderRock Advisors is making it easy for financial advisors and institutions to add option strategies to their portfolios. As of March 31, 2021, SRA manages approximately $2.5 billion for firms in the RIA, family office, independent broker/dealer, wirehouse and institutional channels.

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¹ Cerulli Associates, data as of December 31, 2020.

² Cerulli Associates, data as of December 31, 2019. Growth rates 2015-2019.

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