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BlackRock Reports Full Year 2023 Diluted EPS of $36.51, or $37.77 as Adjusted

BlackRock Announces Agreement to Acquire Global Infrastructure Partners (“GIP”) – Creating a World Leading Infrastructure Investment Platform

BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2023.

BlackRock’s acquisition of GIP will create a combined infrastructure platform of over $150 billion*, well positioned to meet fast-growing investor demand

$10 trillion in AUM following $289 billion of full year net inflows, including $96 billion in the fourth quarter

Flat full year revenue primarily driven by the negative impact of markets on average AUM, partially offset by higher technology services revenue

Restructuring charge of $61 million from initiative to reorganize specific platforms, primarily Aladdin and illiquid alternative investments, to stay ahead of client needs, excluded from as adjusted results

2% decrease in full year operating income

7% increase in full year diluted EPS also reflects significantly higher nonoperating income, partially offset by a higher effective tax rate in the current year

$4.5 billion returned to shareholders in 2023, including $1.5 billion of share repurchases

2% increase in quarterly cash dividend to $5.10 per share approved by Board of Directors

Laurence D. Fink, Chairman and CEO:

“BlackRock delivered differentiated organic growth and operating margin through historically challenging market and industry conditions in 2022 and 2023. As we’ve seen before, when investors were ready to put money back to work, they did it with BlackRock. Clients entrusted us with $289 billion of net inflows in 2023, including $96 billion in the fourth quarter. We enter 2024 with strong momentum – $10 trillion in AUM, accelerating flows, and an organization positioned for the future.

“Today, we are announcing two transformational changes in anticipation of the evolution we see ahead for asset management and the capital markets. The strategic re-architecture of our organization will simplify and improve how we work and deliver for clients. And our acquisition of GIP will propel our leadership in the fast-growing market for hard-asset infrastructure.

“Our clients’ needs have been our compass. Listening to them and applying that to our vision for the future of our industry drove our innovation in Aladdin, and how we led a revolution that made iShares ETFs ubiquitous.

“We always viewed ETFs as a technology, a technology that facilitated investing. And just as our Aladdin technology has become core to asset management, so too have ETFs. That’s why we believe embedding our ETF and Index business across the entire firm will accelerate the growth of iShares and every investment strategy at BlackRock.

“The combination of BlackRock infrastructure with GIP will make us the second largest private markets infrastructure manager with over $150 billion in total AUM, providing clients – especially those saving for retirement – with the high-coupon, inflation-protected, long-duration investments they need.

“We are incredibly excited about this next chapter in BlackRock’s history. This ambitious transformation of our firm positions us better than ever. Our clients, shareholders and employees will be its biggest beneficiaries.”

FINANCIAL RESULTS

 

 

NET FLOW HIGHLIGHTS(1)

(in millions,

Q4

 

 

Q4

 

 

Full Year

 

 

 

Q4

 

 

Full Year

except per share data)

2023

 

 

2022

 

 

2023

 

 

2022

 

 

(in billions)

2023

 

 

2023

AUM

$

10,008,995

 

 

$

8,594,485

 

 

$

10,008,995

 

 

$

8,594,485

 

 

Long-term net flows:

$

63

 

 

$

209

% change

 

16

%

 

 

 

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

Average AUM

$

9,384,929

 

 

$

8,417,215

 

 

$

9,220,700

 

 

$

8,948,570

 

 

By region:

 

 

 

 

% change

 

11

%

 

 

 

 

 

3

%

 

 

 

 

 

Americas

$

54

 

 

$

138

Total net flows

$

95,647

 

 

$

113,725

 

 

$

288,695

 

 

$

306,570

 

 

 

EMEA

 

8

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APAC

 

1

 

 

 

44

GAAP basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

4,631

 

 

$

4,337

 

 

$

17,859

 

 

$

17,873

 

 

By client type:

 

 

 

 

% change

 

7

%

 

 

 

 

 

-

%

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

1,585

 

 

$

1,427

 

 

$

6,275

 

 

$

6,385

 

 

 

Retail:

$

(9

)

 

$

(8

% change

 

11

%

 

 

 

 

 

(2

)%

 

 

 

 

 

 

US

 

(6

)

 

 

(5

Operating margin

 

34.2

%

 

 

32.9

%

 

 

35.1

%

 

 

35.7

%

 

 

 

International

 

(3

)

 

 

(4

Net income(1)

$

1,375

 

 

$

1,259

 

 

$

5,502

 

 

$

5,178

 

 

 

 

 

 

 

 

 

% change

 

9

%

 

 

 

 

 

6

%

 

 

 

 

 

ETFs:

$

88

 

 

$

186

Diluted EPS

$

9.15

 

 

$

8.29

 

 

$

36.51

 

 

$

33.97

 

 

 

 

Core equity

 

32

 

 

 

83

% change

 

10

%

 

 

 

 

 

7

%

 

 

 

 

 

 

Strategic

 

28

 

 

 

104

Weighted-average

diluted shares

 

150.2

 

 

 

151.8

 

 

 

150.7

 

 

 

152.4

 

 

 

 

Precision

 

28

 

 

 

(1

% change

 

(1

)%

 

 

 

 

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional:

$

(16

)

 

$

32

As Adjusted(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

8

 

 

 

87

Operating income

$

1,716

 

 

$

1,577

 

 

$

6,593

 

 

$

6,711

 

 

 

 

Index

 

(24

)

 

 

(55

% change

 

9

%

 

 

 

 

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

41.6

%

 

 

41.2

%

 

 

41.7

%

 

 

42.8

%

 

 

 

 

 

 

 

 

Net income(1)

$

1,451

 

 

$

1,356

 

 

$

5,692

 

 

$

5,391

 

 

Cash management net flows

$

33

 

 

$

79

% change

 

7

%

 

 

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

9.66

 

 

$

8.93

 

 

$

37.77

 

 

$

35.36

 

 

 

 

 

 

 

 

 

% change

 

8

%

 

 

 

 

 

7

%

 

 

 

 

Total net flows

$

96

 

 

$

289

_________________________

 

 

 

 

 

 

 

 

_________________________

(1) Net income represents net income attributable to BlackRock, Inc.

(2) See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

 

 

(1) Totals may not add due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Combined infrastructure platform represents client assets (AUM and non-fee paying committed capital) of BlackRock and GIP as of December 31, 2023 and September 30, 2023, respectively.

BUSINESS RESULTS

Q4 2023

Q4 2023

Base fees(1)

Base fees(1)

December 31, 2023

and securities

Q4 2023

December 31, 2023

and securities

AUM

lending revenue

(in millions), (unaudited)

Net flows

AUM

lending revenue

% of Total

% of Total

RESULTS BY CLIENT TYPE

 

 

 

 

 

 

 

 

 

 

Retail

$

(8,959

)

$

929,697

 

$

993

 

 

9

%

 

28

%

ETFs

 

87,721

 

 

3,499,299

 

 

1,458

 

 

35

%

 

40

%

Institutional:

 

 

 

 

 

 

 

 

 

 

Active

 

7,511

 

 

1,912,673

 

 

691

 

 

19

%

 

19

%

Index

 

(23,576

)

 

2,902,489

 

 

223

 

 

29

%

 

6

%

Total institutional

 

(16,065

)

 

4,815,162

 

 

914

 

 

48

%

 

25

%

Long-term

 

62,697

 

 

9,244,158

 

 

3,365

 

 

92

%

 

93

%

Cash management

 

32,950

 

 

764,837

 

 

240

 

 

8

%

 

7

%

Total

$

95,647

 

$

10,008,995

 

$

3,605

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY INVESTMENT STYLE

 

 

 

 

 

 

 

 

 

 

Active

$

(5,762

)

$

2,621,178

 

$

1,631

 

 

26

%

 

45

%

Index and ETFs

 

68,459

 

 

6,622,980

 

 

1,734

 

 

66

%

 

48

%

Long-term

 

62,697

 

 

9,244,158

 

 

3,365

 

 

92

%

 

93

%

Cash management

 

32,950

 

 

764,837

 

 

240

 

 

8

%

 

7

%

Total

$

95,647

 

$

10,008,995

 

$

3,605

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY PRODUCT TYPE

 

 

 

 

 

 

 

 

 

 

Equity

$

34,086

 

$

5,293,344

 

$

1,769

 

 

52

%

 

49

%

Fixed income

 

32,180

 

 

2,804,026

 

 

864

 

 

28

%

 

24

%

Multi-asset

 

(1,051

)

 

870,804

 

 

299

 

 

9

%

 

8

%

Alternatives:

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

3,561

 

 

136,909

 

 

251

 

 

1

%

 

7

%

Liquid alternatives

 

(3,289

)

 

74,233

 

 

138

 

 

1

%

 

4

%

Currency and commodities

 

(2,790

)

 

64,842

 

 

44

 

 

1

%

 

1

%

Total Alternatives

 

(2,518

)

 

275,984

 

 

433

 

 

3

%

 

12

%

Long-term

 

62,697

 

 

9,244,158

 

 

3,365

 

 

92

%

 

93

%

Cash management

 

32,950

 

 

764,837

 

 

240

 

 

8

%

 

7

%

Total

$

95,647

 

$

10,008,995

 

$

3,605

 

 

100

%

 

100

%

  1. Base fees include investment advisory and administration fees.

INVESTMENT PERFORMANCE AT DECEMBER 31, 2023(1)

One-year period

Three-year period

Five-year period

Fixed income:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Taxable

84

%

78

%

92

%

Tax-exempt

75

%

61

%

45

%

Index AUM within or above applicable tolerance

98

%

97

%

97

%

Equity:

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

Fundamental

69

%

47

%

87

%

Systematic

87

%

83

%

89

%

Index AUM within or above applicable tolerance

96

%

99

%

100

%

  1. Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 for performance disclosure detail.

CAPITAL MANAGEMENT

BlackRock's Board of Directors approved a 2% increase in the quarterly cash dividend to $5.10 per share, payable March 22, 2024, to shareholders of record at the close of business on March 7, 2024.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Friday, January 12, 2024 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (313) 209-4913, or from outside the United States, (866) 400-0049, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 3392098). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Friday, January 12, 2024. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.

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.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except per share data), (unaudited)

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

 

2023

 

 

Change

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

3,448

 

 

$

3,260

 

 

$

188

 

 

 

$

3,514

 

 

$

(66

)

 

Securities lending revenue

 

157

 

 

 

139

 

 

 

18

 

 

 

 

167

 

 

 

(10

)

 

Total investment advisory, administration fees

and securities lending revenue

 

3,605

 

 

 

3,399

 

 

 

206

 

 

 

 

3,681

 

 

 

(76

)

 

Investment advisory performance fees

 

311

 

 

 

228

 

 

 

83

 

 

 

 

70

 

 

 

241

 

 

Technology services revenue

 

379

 

 

 

353

 

 

 

26

 

 

 

 

407

 

 

 

(28

)

 

Distribution fees

 

303

 

 

 

314

 

 

 

(11

)

 

 

 

321

 

 

 

(18

)

 

Advisory and other revenue

 

33

 

 

 

43

 

 

 

(10

)

 

 

 

43

 

 

 

(10

)

 

Total revenue

 

4,631

 

 

 

4,337

 

 

 

294

 

 

 

 

4,522

 

 

 

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

1,503

 

 

 

1,430

 

 

 

73

 

 

 

 

1,420

 

 

 

83

 

 

Distribution and servicing costs

 

502

 

 

 

497

 

 

 

5

 

 

 

 

526

 

 

 

(24

)

 

Direct fund expense

 

318

 

 

 

275

 

 

 

43

 

 

 

 

354

 

 

 

(36

)

 

General and administration expense

 

624

 

 

 

580

 

 

 

44

 

 

 

 

546

 

 

 

78

 

 

Restructuring charge

 

61

 

 

 

91

 

 

 

(30

)

 

 

 

-

 

 

 

61

 

 

Amortization of intangible assets

 

38

 

 

 

37

 

 

 

1

 

 

 

 

39

 

 

 

(1

)

 

Total expense

 

3,046

 

 

 

2,910

 

 

 

136

 

 

 

 

2,885

 

 

 

161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,585

 

 

 

1,427

 

 

 

158

 

 

 

 

1,637

 

 

 

(52

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

265

 

 

 

207

 

 

 

58

 

 

 

 

114

 

 

 

151

 

 

Interest and dividend income

 

159

 

 

 

72

 

 

 

87

 

 

 

 

139

 

 

 

20

 

 

Interest expense

 

(82

)

 

 

(54

)

 

 

(28

)

 

 

 

(82

)

 

 

-

 

 

Total nonoperating income (expense)

 

342

 

 

 

225

 

 

 

117

 

 

 

 

171

 

 

 

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,927

 

 

 

1,652

 

 

 

275

 

 

 

 

1,808

 

 

 

119

 

 

Income tax expense

 

438

 

 

 

345

 

 

 

93

 

 

 

 

213

 

 

 

225

 

 

Net income

 

1,489

 

 

 

1,307

 

 

 

182

 

 

 

 

1,595

 

 

 

(106

)

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling

interests

 

114

 

 

 

48

 

 

 

66

 

 

 

 

(9

)

 

 

123

 

 

Net income attributable to BlackRock, Inc.

$

1,375

 

 

$

1,259

 

 

$

116

 

 

 

$

1,604

 

 

$

(229

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

148.7

 

 

 

150.0

 

 

 

(1.4

)

 

 

 

149.2

 

 

 

(0.5

)

 

Diluted

 

150.2

 

 

 

151.8

 

 

 

(1.6

)

 

 

 

150.5

 

 

 

(0.3

)

 

Earnings per share attributable to BlackRock,

Inc. common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

9.25

 

 

$

8.39

 

 

$

0.86

 

 

 

$

10.75

 

 

$

(1.50

)

 

Diluted

$

9.15

 

 

$

8.29

 

 

$

0.86

 

 

 

$

10.66

 

 

$

(1.51

)

 

Cash dividends declared and paid per share

$

5.00

 

 

$

4.88

 

 

$

0.12

 

 

 

$

5.00

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

10,008,995

 

 

$

8,594,485

 

 

$

1,414,510

 

 

 

$

9,100,825

 

 

$

908,170

 

 

Shares outstanding (end of period)

 

148.5

 

 

 

149.8

 

 

 

(1.3

)

 

 

 

148.9

 

 

 

(0.4

)

 

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

34.2

%

 

 

32.9

%

 

 

130

 

bps

 

 

36.2

%

 

 

(200

)

bps

Effective tax rate

 

24.2

%

 

 

21.5

%

 

 

270

 

bps

 

 

11.7

%

 

 

1,250

 

bps

As adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (1)

$

1,716

 

 

$

1,577

 

 

$

139

 

 

 

$

1,691

 

 

$

25

 

 

Operating margin (1)

 

41.6

%

 

 

41.2

%

 

 

40

 

bps

 

 

42.3

%

 

 

(70

)

bps

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling

interests (2)

$

199

 

 

$

177

 

 

$

22

 

 

 

$

184

 

 

$

15

 

 

Net income attributable to BlackRock, Inc. (3)

$

1,451

 

 

$

1,356

 

 

$

95

 

 

 

$

1,642

 

 

$

(191

)

 

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (3)

$

9.66

 

 

$

8.93

 

 

$

0.73

 

 

 

$

10.91

 

 

$

(1.25

)

 

Effective tax rate

 

24.2

%

 

 

22.7

%

 

 

150

 

bps

 

 

12.4

%

 

 

1,180

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ('GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except per share data), (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

Revenue

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

securities lending revenue:

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

13,724

 

 

$

13,852

 

 

$

(128

)

 

Securities lending revenue

 

675

 

 

 

599

 

 

 

76

 

 

Total investment advisory, administration fees

and securities lending revenue

 

14,399

 

 

 

14,451

 

 

 

(52

)

 

Investment advisory performance fees

 

554

 

 

 

514

 

 

 

40

 

 

Technology services revenue

 

1,485

 

 

 

1,364

 

 

 

121

 

 

Distribution fees

 

1,262

 

 

 

1,381

 

 

 

(119

)

 

Advisory and other revenue

 

159

 

 

 

163

 

 

 

(4

)

 

Total revenue

 

17,859

 

 

 

17,873

 

 

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

5,779

 

 

 

5,681

 

 

 

98

 

 

Distribution and servicing costs

 

2,051

 

 

 

2,179

 

 

 

(128

)

 

Direct fund expense

 

1,331

 

 

 

1,226

 

 

 

105

 

 

General and administration expense

 

2,211

 

 

 

2,160

 

 

 

51

 

 

Restructuring charge

 

61

 

 

 

91

 

 

 

(30

)

 

Amortization of intangible assets

 

151

 

 

 

151

 

 

 

-

 

 

Total expense

 

11,584

 

 

 

11,488

 

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

6,275

 

 

 

6,385

 

 

 

(110

)

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

699

 

 

 

(35

)

 

 

734

 

 

Interest and dividend income

 

473

 

 

 

152

 

 

 

321

 

 

Interest expense

 

(292

)

 

 

(212

)

 

 

(80

)

 

Total nonoperating income (expense)

 

880

 

 

 

(95

)

 

 

975

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

7,155

 

 

 

6,290

 

 

 

865

 

 

Income tax expense

 

1,479

 

 

 

1,296

 

 

 

183

 

 

Net income

 

5,676

 

 

 

4,994

 

 

 

682

 

 

Less:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling

interests

 

174

 

 

 

(184

)

 

 

358

 

 

Net income attributable to BlackRock, Inc.

$

5,502

 

 

$

5,178

 

 

$

324

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

149.3

 

 

 

150.9

 

 

 

(1.6

)

 

Diluted

 

150.7

 

 

 

152.4

 

 

 

(1.7

)

 

Earnings per share attributable to BlackRock, Inc.

common stockholders

 

 

 

 

 

 

 

 

 

Basic

$

36.85

 

 

$

34.31

 

 

$

2.54

 

 

Diluted

$

36.51

 

 

$

33.97

 

 

$

2.54

 

 

Cash dividends declared and paid per share

$

20.00

 

 

$

19.52

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

10,008,995

 

 

$

8,594,485

 

 

$

1,414,510

 

 

Shares outstanding (end of period)

 

148.5

 

 

 

149.8

 

 

 

(1.3

)

 

GAAP:

 

 

 

 

 

 

 

 

 

Operating margin

 

35.1

%

 

 

35.7

%

 

 

(60

)

bps

Effective tax rate

 

21.2

%

 

 

20.0

%

 

 

120

 

bps

As adjusted:

 

 

 

 

 

 

 

 

 

Operating income (1)

$

6,593

 

 

$

6,711

 

 

$

(118

)

 

Operating margin (1)

 

41.7

%

 

 

42.8

%

 

 

(110

)

bps

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling

interests (2)

$

648

 

 

$

89

 

 

$

559

 

 

Net income attributable to BlackRock, Inc. (3)

$

5,692

 

 

$

5,391

 

 

$

301

 

 

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (3)

$

37.77

 

 

$

35.36

 

 

$

2.41

 

 

Effective tax rate

 

21.4

%

 

 

20.7

%

 

 

70

 

bps

 

 

 

 

 

 

 

 

 

 

See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

change

 

 

FX impact(1)

 

 

2023

 

 

Average AUM(2)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

396,030

 

 

$

(370

)

 

$

36,080

 

 

$

3,994

 

 

$

435,734

 

 

$

407,368

 

Fixed income

 

300,232

 

 

 

(6,552

)

 

 

16,437

 

 

 

2,682

 

 

 

312,799

 

 

 

303,171

 

Multi-asset

 

129,177

 

 

 

(33

)

 

 

9,904

 

 

 

489

 

 

 

139,537

 

 

 

131,663

 

Alternatives

 

43,001

 

 

 

(2,004

)

 

 

303

 

 

 

327

 

 

 

41,627

 

 

 

42,041

 

Retail subtotal

 

868,440

 

 

 

(8,959

)

 

 

62,724

 

 

 

7,492

 

 

 

929,697

 

 

 

884,243

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,234,275

 

 

 

58,211

 

 

 

230,034

 

 

 

10,111

 

 

 

2,532,631

 

 

 

2,329,035

 

Fixed income

 

818,744

 

 

 

31,225

 

 

 

43,359

 

 

 

5,075

 

 

 

898,403

 

 

 

849,776

 

Multi-asset

 

7,716

 

 

 

746

 

 

 

614

 

 

 

64

 

 

 

9,140

 

 

 

8,251

 

Alternatives

 

57,674

 

 

 

(2,461

)

 

 

3,829

 

 

 

83

 

 

 

59,125

 

 

 

59,058

 

ETFs subtotal

 

3,118,409

 

 

 

87,721

 

 

 

277,836

 

 

 

15,333

 

 

 

3,499,299

 

 

 

3,246,120

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

167,917

 

 

 

704

 

 

 

14,966

 

 

 

3,101

 

 

 

186,688

 

 

 

174,135

 

Fixed income

 

771,581

 

 

 

6,012

 

 

 

52,739

 

 

 

6,491

 

 

 

836,823

 

 

 

792,981

 

Multi-asset

 

646,993

 

 

 

(1,244

)

 

 

62,463

 

 

 

8,970

 

 

 

717,182

 

 

 

667,841

 

Alternatives

 

166,771

 

 

 

2,039

 

 

 

1,239

 

 

 

1,931

 

 

 

171,980

 

 

 

168,608

 

Active subtotal

 

1,753,262

 

 

 

7,511

 

 

 

131,407

 

 

 

20,493

 

 

 

1,912,673

 

 

 

1,803,565

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,943,069

 

 

 

(24,459

)

 

 

190,759

 

 

 

28,922

 

 

 

2,138,291

 

 

 

1,998,882

 

Fixed income

 

685,648

 

 

 

1,495

 

 

 

46,049

 

 

 

22,809

 

 

 

756,001

 

 

 

709,186

 

Multi-asset

 

4,986

 

 

 

(520

)

 

 

437

 

 

 

42

 

 

 

4,945

 

 

 

4,747

 

Alternatives

 

3,330

 

 

 

(92

)

 

 

(15

)

 

 

29

 

 

 

3,252

 

 

 

3,307

 

Index subtotal

 

2,637,033

 

 

 

(23,576

)

 

 

237,230

 

 

 

51,802

 

 

 

2,902,489

 

 

 

2,716,122

 

Institutional subtotal

 

4,390,295

 

 

 

(16,065

)

 

 

368,637

 

 

 

72,295

 

 

 

4,815,162

 

 

 

4,519,687

 

Long-term

 

8,377,144

 

 

 

62,697

 

 

 

709,197

 

 

 

95,120

 

 

 

9,244,158

 

 

 

8,650,050

 

Cash management

 

723,681

 

 

 

32,950

 

 

 

2,770

 

 

 

5,436

 

 

 

764,837

 

 

 

734,879

 

Total

$

9,100,825

 

 

$

95,647

 

 

$

711,967

 

 

$

100,556

 

 

$

10,008,995

 

 

$

9,384,929

 

Current Quarter Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

change

 

 

FX impact(1)

 

 

2023

 

 

Average AUM(2)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

393,690

 

 

$

(5,489

)

 

$

34,238

 

 

$

5,009

 

 

$

427,448

 

 

$

402,817

 

Fixed income

 

1,046,705

 

 

 

970

 

 

 

67,480

 

 

 

8,267

 

 

 

1,123,422

 

 

 

1,070,626

 

Multi-asset

 

776,158

 

 

 

(1,278

)

 

 

72,367

 

 

 

9,458

 

 

 

856,705

 

 

 

799,493

 

Alternatives

 

209,769

 

 

 

35

 

 

 

1,542

 

 

 

2,257

 

 

 

213,603

 

 

 

210,648

 

Active subtotal

 

2,426,322

 

 

 

(5,762

)

 

 

175,627

 

 

 

24,991

 

 

 

2,621,178

 

 

 

2,483,584

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,234,275

 

 

 

58,211

 

 

 

230,034

 

 

 

10,111

 

 

 

2,532,631

 

 

 

2,329,035

 

Fixed income

 

818,744

 

 

 

31,225

 

 

 

43,359

 

 

 

5,075

 

 

 

898,403

 

 

 

849,776

 

Multi-asset

 

7,716

 

 

 

746

 

 

 

614

 

 

 

64

 

 

 

9,140

 

 

 

8,251

 

Alternatives

 

57,674

 

 

 

(2,461

)

 

 

3,829

 

 

 

83

 

 

 

59,125

 

 

 

59,058

 

ETFs subtotal

 

3,118,409

 

 

 

87,721

 

 

 

277,836

 

 

 

15,333

 

 

 

3,499,299

 

 

 

3,246,120

 

Non-ETF Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,113,326

 

 

 

(18,636

)

 

 

207,567

 

 

 

31,008

 

 

 

2,333,265

 

 

 

2,177,568

 

Fixed income

 

710,756

 

 

 

(15

)

 

 

47,745

 

 

 

23,715

 

 

 

782,201

 

 

 

734,712

 

Multi-asset

 

4,998

 

 

 

(519

)

 

 

437

 

 

 

43

 

 

 

4,959

 

 

 

4,758

 

Alternatives

 

3,333

 

 

 

(92

)

 

 

(15

)

 

 

30

 

 

 

3,256

 

 

 

3,308

 

Non-ETF Index subtotal

 

2,832,413

 

 

 

(19,262

)

 

 

255,734

 

 

 

54,796

 

 

 

3,123,681

 

 

 

2,920,346

 

Index and ETFs subtotal

 

5,950,822

 

 

 

68,459

 

 

 

533,570

 

 

 

70,129

 

 

 

6,622,980

 

 

 

6,166,466

 

Long-term

$

8,377,144

 

 

$

62,697

 

 

$

709,197

 

 

$

95,120

 

 

$

9,244,158

 

 

$

8,650,050

 

Current Quarter Component Changes by Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

inflows

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2023

 

 

(outflows)

 

 

change

 

 

FX impact(1)

 

 

2023

 

 

Average AUM(2)

 

Equity

$

4,741,291

 

 

$

34,086

 

 

$

471,839

 

 

$

46,128

 

 

$

5,293,344

 

 

$

4,909,420

 

Fixed income

 

2,576,205

 

 

 

32,180

 

 

 

158,584

 

 

 

37,057

 

 

 

2,804,026

 

 

 

2,655,114

 

Multi-asset

 

788,872

 

 

 

(1,051

)

 

 

73,418

 

 

 

9,565

 

 

 

870,804

 

 

 

812,502

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

131,937

 

 

 

3,561

 

 

 

(205

)

 

 

1,616

 

 

 

136,909

 

 

 

133,889

 

Liquid alternatives

 

75,139

 

 

 

(3,289

)

 

 

1,805

 

 

 

578

 

 

 

74,233

 

 

 

74,188

 

Currency and commodities(3)

 

63,700

 

 

 

(2,790

)

 

 

3,756

 

 

 

176

 

 

 

64,842

 

 

 

64,937

 

Alternatives subtotal

 

270,776

 

 

 

(2,518

)

 

 

5,356

 

 

 

2,370

 

 

 

275,984

 

 

 

273,014

 

Long-term

$

8,377,144

 

 

$

62,697

 

 

$

709,197

 

 

$

95,120

 

 

$

9,244,158

 

 

$

8,650,050

 

  1. Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
  2. Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
  3. Amounts include commodity ETFs.

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2022

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2023

 

 

Average AUM(3)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

370,612

 

 

$

2,810

 

 

$

-

 

 

$

58,248

 

 

$

4,064

 

 

$

435,734

 

 

$

403,530

 

Fixed income

 

299,114

 

 

 

(2,471

)

 

 

-

 

 

 

11,821

 

 

 

4,335

 

 

 

312,799

 

 

 

306,232

 

Multi-asset

 

125,168

 

 

 

(236

)

 

 

-

 

 

 

14,022

 

 

 

583

 

 

 

139,537

 

 

 

131,236

 

Alternatives

 

48,581

 

 

 

(8,576

)

 

 

-

 

 

 

1,286

 

 

 

336

 

 

 

41,627

 

 

 

45,319

 

Retail subtotal

 

843,475

 

 

 

(8,473

)

 

 

-

 

 

 

85,377

 

 

 

9,318

 

 

 

929,697

 

 

 

886,317

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,081,742

 

 

 

81,223

 

 

 

-

 

 

 

362,885

 

 

 

6,781

 

 

 

2,532,631

 

 

 

2,262,361

 

Fixed income

 

758,093

 

 

 

111,956

 

 

 

-

 

 

 

24,544

 

 

 

3,810

 

 

 

898,403

 

 

 

824,832

 

Multi-asset

 

8,875

 

 

 

(746

)

 

 

-

 

 

 

949

 

 

 

62

 

 

 

9,140

 

 

 

8,024

 

Alternatives

 

60,900

 

 

 

(6,491

)

 

 

-

 

 

 

4,626

 

 

 

90

 

 

 

59,125

 

 

 

61,439

 

ETFs subtotal

 

2,909,610

 

 

 

185,942

 

 

 

-

 

 

 

393,004

 

 

 

10,743

 

 

 

3,499,299

 

 

 

3,156,656

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

168,734

 

 

 

(13,301

)

 

 

-

 

 

 

29,088

 

 

 

2,167

 

 

 

186,688

 

 

 

174,967

 

Fixed income

 

774,955

 

 

 

4,714

 

 

 

-

 

 

 

53,538

 

 

 

3,616

 

 

 

836,823

 

 

 

798,832

 

Multi-asset

 

544,469

 

 

 

85,665

 

 

 

-

 

 

 

79,644

 

 

 

7,404

 

 

 

717,182

 

 

 

642,051

 

Alternatives

 

153,433

 

 

 

10,028

 

 

 

2,177

 

 

 

4,925

 

 

 

1,417

 

 

 

171,980

 

 

 

162,871

 

Active subtotal

 

1,641,591

 

 

 

87,106

 

 

 

2,177

 

 

 

167,195

 

 

 

14,604

 

 

 

1,912,673

 

 

 

1,778,721

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,814,266

 

 

 

(82,222

)

 

 

-

 

 

 

401,047

 

 

 

5,200

 

 

 

2,138,291

 

 

 

1,979,704

 

Fixed income

 

704,661

 

 

 

28,888

 

 

 

-

 

 

 

17,774

 

 

 

4,678

 

 

 

756,001

 

 

 

713,802

 

Multi-asset

 

6,392

 

 

 

(1,896

)

 

 

-

 

 

 

559

 

 

 

(110

)

 

 

4,945

 

 

 

5,882

 

Alternatives

 

3,296

 

 

 

105

 

 

 

-

 

 

 

(138

)

 

 

(11

)

 

 

3,252

 

 

 

3,263

 

Index subtotal

 

2,528,615

 

 

 

(55,125

)

 

 

-

 

 

 

419,242

 

 

 

9,757

 

 

 

2,902,489

 

 

 

2,702,651

 

Institutional subtotal

 

4,170,206

 

 

 

31,981

 

 

 

2,177

 

 

 

586,437

 

 

 

24,361

 

 

 

4,815,162

 

 

 

4,481,372

 

Long-term

 

7,923,291

 

 

 

209,450

 

 

 

2,177

 

 

 

1,064,818

 

 

 

44,422

 

 

 

9,244,158

 

 

 

8,524,345

 

Cash management

 

671,194

 

 

 

79,245

 

 

 

-

 

 

 

8,732

 

 

 

5,666

 

 

 

764,837

 

 

 

696,355

 

Total

$

8,594,485

 

 

$

288,695

 

 

$

2,177

 

 

$

1,073,550

 

 

$

50,088

 

 

$

10,008,995

 

 

$

9,220,700

 

Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2022

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2023

 

 

Average AUM(3)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

392,836

 

 

$

(26,772

)

 

$

-

 

 

$

57,431

 

 

$

3,953

 

 

$

427,448

 

 

$

409,687

 

Fixed income

 

1,053,083

 

 

 

(882

)

 

 

-

 

 

 

64,203

 

 

 

7,018

 

 

 

1,123,422

 

 

 

1,080,917

 

Multi-asset

 

669,629

 

 

 

85,424

 

 

 

-

 

 

 

93,665

 

 

 

7,987

 

 

 

856,705

 

 

 

773,278

 

Alternatives

 

202,012

 

 

 

1,451

 

 

 

2,177

 

 

 

6,210

 

 

 

1,753

 

 

 

213,603

 

 

 

208,189

 

Active subtotal

 

2,317,560

 

 

 

59,221

 

 

 

2,177

 

 

 

221,509

 

 

 

20,711

 

 

 

2,621,178

 

 

 

2,472,071

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,081,742

 

 

 

81,223

 

 

 

-

 

 

 

362,885

 

 

 

6,781

 

 

 

2,532,631

 

 

 

2,262,361

 

Fixed income

 

758,093

 

 

 

111,956

 

 

 

-

 

 

 

24,544

 

 

 

3,810

 

 

 

898,403

 

 

 

824,832

 

Multi-asset

 

8,875

 

 

 

(746

)

 

 

-

 

 

 

949

 

 

 

62

 

 

 

9,140

 

 

 

8,024

 

Alternatives

 

60,900

 

 

 

(6,491

)

 

 

-

 

 

 

4,626

 

 

 

90

 

 

 

59,125

 

 

 

61,439

 

ETFs subtotal

 

2,909,610

 

 

 

185,942

 

 

 

-

 

 

 

393,004

 

 

 

10,743

 

 

 

3,499,299

 

 

 

3,156,656

 

Non-ETF Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,960,776

 

 

 

(65,941

)

 

 

-

 

 

 

430,952

 

 

 

7,478

 

 

 

2,333,265

 

 

 

2,148,514

 

Fixed income

 

725,647

 

 

 

32,013

 

 

 

-

 

 

 

18,930

 

 

 

5,611

 

 

 

782,201

 

 

 

737,949

 

Multi-asset

 

6,400

 

 

 

(1,891

)

 

 

-

 

 

 

560

 

 

 

(110

)

 

 

4,959

 

 

 

5,891

 

Alternatives

 

3,298

 

 

 

106

 

 

 

-

 

 

 

(137

)

 

 

(11

)

 

 

3,256

 

 

 

3,264

 

Non-ETF Index subtotal

 

2,696,121

 

 

 

(35,713

)

 

 

-

 

 

 

450,305

 

 

 

12,968

 

 

 

3,123,681

 

 

 

2,895,618

 

Index and ETFs subtotal

 

5,605,731

 

 

 

150,229

 

 

 

-

 

 

 

843,309

 

 

 

23,711

 

 

 

6,622,980

 

 

 

6,052,274

 

Long-term

$

7,923,291

 

 

$

209,450

 

 

$

2,177

 

 

$

1,064,818

 

 

$

44,422

 

 

$

9,244,158

 

 

$

8,524,345

 

Year-over-Year Component Changes by Product Type (Long-Term)

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

Market

 

 

 

 

 

December 31,

 

 

 

 

 

2022

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact(2)

 

 

2023

 

 

Average AUM(3)

 

Equity

$

4,435,354

 

 

$

(11,490

)

 

$

-

 

 

$

851,268

 

 

$

18,212

 

 

$

5,293,344

 

 

$

4,820,562

 

Fixed income

 

2,536,823

 

 

 

143,087

 

 

 

-

 

 

 

107,677

 

 

 

16,439

 

 

 

2,804,026

 

 

 

2,643,698

 

Multi-asset

 

684,904

 

 

 

82,787

 

 

 

-

 

 

 

95,174

 

 

 

7,939

 

 

 

870,804

 

 

 

787,193

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

117,751

 

 

 

13,665

 

 

 

2,177

 

 

 

1,885

 

 

 

1,431

 

 

 

136,909

 

 

 

127,655

 

Liquid alternatives

 

80,654

 

 

 

(11,370

)

 

 

-

 

 

 

4,548

 

 

 

401

 

 

 

74,233

 

 

 

77,595

 

Currency and commodities(4)

 

67,805

 

 

 

(7,229

)

 

 

-

 

 

 

4,266

 

 

 

-

 

 

 

64,842

 

 

 

67,642

 

Alternatives subtotal

 

266,210

 

 

 

(4,934

)

 

 

2,177

 

 

 

10,699

 

 

 

1,832

 

 

 

275,984

 

 

 

272,892

 

Long-term

$

7,923,291

 

 

$

209,450

 

 

$

2,177

 

 

$

1,064,818

 

 

$

44,422

 

 

$

9,244,158

 

 

$

8,524,345

 

  1. Amounts include AUM attributable to the acquisition of Kreos Capital in August 2023 (the "Kreos Transaction").
  2. Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
  3. Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
  4. Amounts include commodity ETFs.

SUMMARY OF REVENUE

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2023

 

 

2022

 

 

Change

 

 

2023

 

 

Change

 

 

2023

 

 

2022

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

484

 

 

$

478

 

 

$

6

 

 

$

510

 

 

$

(26

)

 

$

2,000

 

 

$

2,147

 

 

$

(147

)

ETFs

 

1,102

 

 

 

1,021

 

 

 

81

 

 

 

1,136

 

 

 

(34

)

 

 

4,418

 

 

 

4,345

 

 

 

73

 

Non-ETF Index

 

183

 

 

 

159

 

 

 

24

 

 

 

186

 

 

 

(3

)

 

 

743

 

 

 

711

 

 

 

32

 

Equity subtotal

 

1,769

 

 

 

1,658

 

 

 

111

 

 

 

1,832

 

 

 

(63

)

 

 

7,161

 

 

 

7,203

 

 

 

(42

)

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

468

 

 

 

462

 

 

 

6

 

 

 

479

 

 

 

(11

)

 

 

1,897

 

 

 

1,977

 

 

 

(80

)

ETFs

 

311

 

 

 

283

 

 

 

28

 

 

 

315

 

 

 

(4

)

 

 

1,230

 

 

 

1,122

 

 

 

108

 

Non-ETF Index

 

85

 

 

 

85

 

 

 

-

 

 

 

93

 

 

 

(8

)

 

 

353

 

 

 

396

 

 

 

(43

)

Fixed income subtotal

 

864

 

 

 

830

 

 

 

34

 

 

 

887

 

 

 

(23

)

 

 

3,480

 

 

 

3,495

 

 

 

(15

)

Multi-asset

 

299

 

 

 

293

 

 

 

6

 

 

 

308

 

 

 

(9

)

 

 

1,203

 

 

 

1,299

 

 

 

(96

)

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

251

 

 

 

194

 

 

 

57

 

 

 

231

 

 

 

20

 

 

 

889

 

 

 

741

 

 

 

148

 

Liquid alternatives

 

138

 

 

 

150

 

 

 

(12

)

 

 

143

 

 

 

(5

)

 

 

572

 

 

 

633

 

 

 

(61

)

Currency and commodities

 

44

 

 

 

47

 

 

 

(3

)

 

 

46

 

 

 

(2

)

 

 

185

 

 

 

216

 

 

 

(31

)

Alternatives subtotal

 

433

 

 

 

391

 

 

 

42

 

 

 

420

 

 

 

13

 

 

 

1,646

 

 

 

1,590

 

 

 

56

 

Long-term

 

3,365

 

 

 

3,172

 

 

 

193

 

 

 

3,447

 

 

 

(82

)

 

 

13,490

 

 

 

13,587

 

 

 

(97

)

Cash management

 

240

 

 

 

227

 

 

 

13

 

 

 

234

 

 

 

6

 

 

 

909

 

 

 

864

 

 

 

45

 

Total investment advisory, administration

fees and securities lending revenue

 

3,605

 

 

 

3,399

 

 

 

206

 

 

 

3,681

 

 

 

(76

)

 

 

14,399

 

 

 

14,451

 

 

 

(52

)

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

61

 

 

 

36

 

 

 

25

 

 

 

17

 

 

 

44

 

 

 

99

 

 

 

49

 

 

 

50

 

Fixed income

 

2

 

 

 

6

 

 

 

(4

)

 

 

1

 

 

 

1

 

 

 

4

 

 

 

25

 

 

 

(21

)

Multi-asset

 

5

 

 

 

11

 

 

 

(6

)

 

 

5

 

 

 

-

 

 

 

28

 

 

 

25

 

 

 

3

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

149

 

 

 

115

 

 

 

34

 

 

 

24

 

 

 

125

 

 

 

273

 

 

 

296

 

 

 

(23

)

Liquid alternatives

 

94

 

 

 

60

 

 

 

34

 

 

 

23

 

 

 

71

 

 

 

150

 

 

 

119

 

 

 

31

 

Alternatives subtotal

 

243

 

 

 

175

 

 

 

68

 

 

 

47

 

 

 

196

 

 

 

423

 

 

 

415

 

 

 

8

 

Total investment advisory performance fees

 

311

 

 

 

228

 

 

 

83

 

 

 

70

 

 

 

241

 

 

 

554

 

 

 

514

 

 

 

40

 

Technology services revenue

 

379

 

 

 

353

 

 

 

26

 

 

 

407

 

 

 

(28

)

 

 

1,485

 

 

 

1,364

 

 

 

121

 

Distribution fees

 

303

 

 

 

314

 

 

 

(11

)

 

 

321

 

 

 

(18

)

 

 

1,262

 

 

 

1,381

 

 

 

(119

)

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

15

 

 

 

17

 

 

 

(2

)

 

 

21

 

 

 

(6

)

 

 

81

 

 

 

56

 

 

 

25

 

Other

 

18

 

 

 

26

 

 

 

(8

)

 

 

22

 

 

 

(4

)

 

 

78

 

 

 

107

 

 

 

(29

)

Total advisory and other revenue

 

33

 

 

 

43

 

 

 

(10

)

 

 

43

 

 

 

(10

)

 

 

159

 

 

 

163

 

 

 

(4

)

Total revenue

$

4,631

 

 

$

4,337

 

 

$

294

 

 

$

4,522

 

 

$

109

 

 

$

17,859

 

 

$

17,873

 

 

$

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Highlights

  • Investment advisory, administration fees and securities lending revenue increased $206 million from the fourth quarter of 2022, primarily driven by the impact of market beta on average AUM, positive organic base fee growth and higher securities lending revenue. Securities lending revenue of $157 million increased from $139 million in the fourth quarter of 2022, primarily reflecting higher spreads.



    Investment advisory, administration fees and securities lending revenue decreased $76 million from the third quarter of 2023, primarily driven by the negative impact of market beta on average AUM and lower securities lending revenue. Securities lending revenue of $157 million decreased from $167 million in the third quarter of 2023, primarily reflecting lower spreads.

  • Performance fees increased $83 million from the fourth quarter of 2022 and $241 million from the third quarter of 2023, reflecting higher revenue from alternatives and long-only products.
  • Technology services revenue increased $26 million from the fourth quarter of 2022, reflecting the onboarding of several large clients. Technology services annual contract value (“ACV”)(1) increased 10% from the fourth quarter of 2022.



    Technology services revenue decreased $28 million from the third quarter of 2023, reflecting third-quarter renewals of eFront on-premise licenses, for which a majority of the revenue is recognized at the time of renewal.

(1) See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.

SUMMARY OF OPERATING EXPENSE

 

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

Year Ended

 

 

 

 

 

December 31,

 

 

 

 

 

September 30,

 

 

 

 

 

December 31,

 

 

 

 

(in millions), (unaudited)

2023

 

 

2022

 

 

Change

 

 

2023

 

 

Change

 

 

2023

 

 

2022

 

 

Change

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

$

1,503

 

 

$

1,430

 

 

$

73

 

 

$

1,420

 

 

$

83

 

 

$

5,779

 

 

$

5,681

 

 

$

98

 

Distribution and servicing costs

 

502

 

 

 

497

 

 

 

5

 

 

 

526

 

 

 

(24

)

 

 

2,051

 

 

 

2,179

 

 

 

(128

)

Direct fund expense

 

318

 

 

 

275

 

 

 

43

 

 

 

354

 

 

 

(36

)

 

 

1,331

 

 

 

1,226

 

 

 

105

 

General and administration expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and promotional

 

100

 

 

 

100

 

 

 

-

 

 

 

82

 

 

 

18

 

 

 

344

 

 

 

331

 

 

 

13

 

Occupancy and office related

 

105

 

 

 

99

 

 

 

6

 

 

 

103

 

 

 

2

 

 

 

418

 

 

 

403

 

 

 

15

 

Portfolio services

 

68

 

 

 

71

 

 

 

(3

)

 

 

65

 

 

 

3

 

 

 

270

 

 

 

280

 

 

 

(10

)

Sub-advisory

 

22

 

 

 

17

 

 

 

5

 

 

 

20

 

 

 

2

 

 

 

81

 

 

 

80

 

 

 

1

 

Technology

 

186

 

 

 

151

 

 

 

35

 

 

 

145

 

 

 

41

 

 

 

607

 

 

 

600

 

 

 

7

 

Professional services

 

67

 

 

 

51

 

 

 

16

 

 

 

51

 

 

 

16

 

 

 

195

 

 

 

180

 

 

 

15

 

Communications

 

11

 

 

 

12

 

 

 

(1

)

 

 

12

 

 

 

(1

)

 

 

47

 

 

 

44

 

 

 

3

 

Foreign exchange remeasurement

 

(4

)

 

 

8

 

 

 

(12

)

 

 

(3

)

 

 

(1

)

 

 

(6

)

 

 

10

 

 

 

(16

)

Contingent consideration fair value

adjustments

 

2

 

 

 

1

 

 

 

1

 

 

 

-

 

 

 

2

 

 

 

3

 

 

 

3

 

 

 

-

 

Product launch costs

 

-

 

 

 

6

 

 

 

(6

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

(6

)

Other general and administration

 

67

 

 

 

64

 

 

 

3

 

 

 

71

 

 

 

(4

)

 

 

252

 

 

 

223

 

 

 

29

 

Total general and administration expense

 

624

 

 

 

580

 

 

 

44

 

 

 

546

 

 

 

78

 

 

 

2,211

 

 

 

2,160

 

 

 

51

 

Restructuring charge

 

61

 

 

 

91

 

 

 

(30

)