RE: Blackrock still loading up15 Sep 2025 13:53
I asked chat gpt
The active fund can buy over a long period of time. Will not spike the price. Then sell through the auction market to etf. Price then not affected much. If the active fund bought more than it needed for the etf it would still be holding some shares. It would then be in the active funds interest if the price went up.
Base facts
Total GGP shares: ~670.8 million
3% BlackRock stake: ≈ 20.1 million shares
🔄 How this could play out around the rebalance
Step 1: Active build-up
Suppose BlackRock’s active funds (not ETFs) quietly accumulate ~20m shares over time.
That’s about 3% of the company, already disclosed.
Because they buy gradually, the price impact is limited.
Step 2: ETF demand at 19 Sept auction
Let’s say GDXJ (and possibly ASX200 ETFs) need to add 6–7m shares of GGP at the rebalance.
BlackRock’s active fund can supply some or all of this in the closing auction.
Those 6–7m shares would leave BlackRock’s “active” book and reappear in its ETF book, but always at the official uncrossing price.
Step 3: Residual exposure
BlackRock still holds the remainder. Example:
Started with 20m
Sold 7m into ETF demand
Left holding 13m in its active fund(s)
Now, if the share price rises after the rebalance, those 13m benefit directly.
⚖️ Important points
Disclosure: BlackRock must notify the market if its aggregate holding changes by whole % points (e.g. from 3% to 2%, or 3% to 4%). If this shuffle leaves it still ~3%, no fresh RNS is needed.
Not a “special deal”: Any transfer happens through the auction, at the same price for everyone.
Incentive alignment:
ETF: doesn’t care about price, just tracks index.
Active fund: happy if price is low going in (cheap accumulation), but happier if it rises later (residual exposure gains).
✅ So yes — BlackRock’s 3% (~20m shares) gives it flexibility:
Supply liquidity to its own ETFs during the rebalance.
Still hold a significant chunk to benefit if GGP’s share price rallies afterwards.
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