What's going on?

Game over, Vanguard: BlackRock looks set to pull in more funds than its biggest rival for the first time since 2007, according to a Morningstar report out late last week.

What does this mean?

This year�s recessionary funk has been a far cry from the post-Covid celebrations we were hoping for. In fact, the investing scene�s been so bleak that panic-stricken investors have pulled $138 billion out of asset management firms so far, according to Morningstar. So it�s even more impressive, then, that BlackRock pulled off a showstopper of a year. iShares � the firm�s exchange-traded fund segment � raked in $152 billion in investors� assets before the end of November (tweet this), enough to dwarf any withdrawals from its active asset management business. And with Morningstar estimating that BlackRock�s biggest rival Vanguard lagged behind over the same period, you can guess who�ll be popping the expensive bottles this festive season.

Why should I care?

For markets: Nothing�s greener in Texas.
Still, BlackRock�s bonzer year wasn�t all smooth sailing. See, when investors pile into index funds, asset management firms like BlackRock end up as major shareholders in a bunch of businesses. (Case in point: Investors Business Daily believes Vanguard is the biggest shareholder in 330 S&P 500 companies.) And that can send them up the creek: Texas lawmakers dragged BlackRock over hot coals just last week, after the firm voted to replace three of ExxonMobil�s board members with eco-friendly candidates. So despite the good intentions, BlackRock and its rivals will need to learn how to avoid making political enemies ��stat.

For you personally: People power.
BlackRock has one bright idea, mind you: pass the responsibility buck onto its investors by letting them vote on company issues. BlackRock�s CEO said the move could usher in a new era of �shareholder democracy� in a recent letter, with retail investors finally getting the chance to shape the boardroom decisions for some of the world�s biggest firms.