BlackRock, Inc. (NYSE:BLK), the worlds biggest money management company, is set to implement a reorganization of its sales force. In a report by Reuters, the company revealed that it is going to engage the services of Lee Beck. Beck will be tasked with overseeing the company’s sales to wirehouses, with his tenure at the company to start by January next year. BlackRock is planning to divide into two groups its sales force dedicated to private clients, one to deal with wirehouses and the other with independent broker dealers. Beck will be assigned to lead the wirehouses unit.
Lee Beck will be joining BlackRock, Inc. (NYSE:BLK) from JPMorgan Chase & Co. (NYSE:JPM). In his LinkedIn profile, Beck is listed as the current Managing Director and Head of Global Strategic Relationship Group of JPMorgan Chase & Co. (NYSE:JPM), a position he held starting May 2011. He also worked at the Global Wealth Management Unit of Pacific Investment Management Company from June 2001 to April 2011 and at the Institutional Sales – Governmental Entities unit of Federated Investors Inc (NYSE:FII) from 1996 to 2001.
BlackRock, Inc. (NYSE:BLK)’s is pushing through its reorganization at a time that the company is benefitting from large inflows in its U.S. exchange-traded funds and bond mutual funds. In June this year, the company designed a system to help its investors earn more by expanding its iShares Core lineup, offering 10 equity and fixed-income U.S. iShares. The iSHares Core is a low cost investment with broad exposures in long-term equities and bonds. According to BalckRock, the inflows in iShares amounts to $64.9 billion year to date up to October.
In the report by Reuters, BlackRock, Inc. (NYSE:BLK) has seen an investment of $17.46 billion in its U.S. bond funds applying to the same period. An outflow in the amount of $6 billion, however, was seen for the same period in the company’s actively managed U.S. equity funds. In a company memo obtained by Reuters, the company stated that it is pursuing the reorganization to take advantage of opportunities seen in wirehouses and independents, adding further that “rotating sales leaders across roles and channels” will be beneficial both for training and development.
This article has been written by Nonito Guntan.