Exhibit 99.1
|
|
|
INVESTOR RELATIONS: Caroline Rodda 212.810.3442 | MEDIA RELATIONS: Ed Sweeney 646.231.0268 |
|
|
BlackRock Reports Second Quarter 2024 Diluted EPS of $9.99, or $10.36 as adjusted | |
New York, July 15, 2024 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2024. |
Previously announced agreement to acquire Preqin represents next step in the transformation of BlackRock private markets capabilities by delivering integrated investments, technology, and data for the whole portfolio $139 billion of first half total net inflows reflect continued strength of broad-based platform, including record start to year for BlackRock ETFs $82 billion of quarterly total net inflows positive across product types $10.6 trillion in AUM, up $1.2 trillion year-over-year, driven by consistent organic growth and positive market movements
8% increase in revenue year-over-year, primarily driven by the positive impact of markets on average AUM, organic base fee growth, and higher performance fees and technology services revenue 11% increase in operating income year-over-year (12% as adjusted) 10% increase in diluted EPS year-over-year (12% as adjusted) $500 million of share repurchases in the current quarter |
| Laurence D. Fink, Chairman and CEO: “BlackRock is executing on the broadest opportunity set we’ve seen in years, including in private markets, Aladdin, and whole portfolio solutions across both ETFs and active. At the same time, we are opening up meaningful new growth markets for our clients and shareholders with our planned acquisitions of Global Infrastructure Partners and Preqin. “BlackRock generated nearly $140 billion of total net inflows in the first half of 2024, including $82 billion in the second quarter resulting in 3% organic base fee growth. Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record. We are delivering growth with scale, reflected in a 12% increase to operating income and 160 basis points of margin expansion. “BlackRock has longstanding relationships with corporates and governments around the world as a long-term investor in public equity and debt. These relationships differentiate BlackRock as a capital partner in private markets, driving unique deal flow for clients. We have strong sourcing capabilities, and we are transforming our private markets platform to bring even more benefits of scale and technology to our clients. We are on pace to close our planned acquisition of Global Infrastructure Partners in the third quarter of 2024, which is expected to double private markets base fees and add approximately $100 billion of infrastructure AUM. And just a few weeks ago, we announced our agreement to acquire Preqin, a leading private markets data provider. “BlackRock is defining a unique, integrated approach to private markets - spanning investment, technology workflows and data. We believe this will deepen our relationships with clients, and deliver value for our shareholders through premium, diversified organic revenue growth. “Clients have always been at the center of our strategy. We will continue to innovate and evolve to deliver the outcomes and performance they need. We believe our momentum with clients will only accelerate from here, driving differentiated growth for our shareholders.” |
FINANCIAL RESULTS |
|
| NET FLOW HIGHLIGHTS(1) |
| ||||||||||||||
| Q2 |
|
| Q2 |
|
|
|
|
| Q2 |
|
| YTD |
| ||||
(in millions, except per share data) | 2024 |
|
| 2023 |
|
| (in billions) | 2024 |
|
| 2024 |
| ||||||
AUM | $ | 10,645,721 |
|
| $ | 9,425,212 |
|
| Long-term net flows: | $ | 51 |
|
| $ | 128 |
| ||
% change |
| 13 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Average AUM | $ | 10,457,851 |
|
| $ | 9,187,240 |
|
| By region: |
|
|
|
|
| ||||
% change |
| 14 | % |
|
|
|
|
| Americas | $ | 31 |
|
| $ | 89 |
| ||
Total net flows | $ | 81,565 |
|
| $ | 80,162 |
|
|
| EMEA |
| 36 |
|
|
| 56 |
| |
|
|
|
|
|
|
|
| APAC |
| (16 | ) |
|
| (17 | ) | |||
GAAP basis: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue | $ | 4,805 |
|
| $ | 4,463 |
|
| By client type: |
|
|
|
|
| ||||
% change |
| 8 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating income | $ | 1,800 |
|
| $ | 1,615 |
|
|
| Retail: | $ | 6 |
|
| $ | 13 |
| |
% change |
| 11 | % |
|
|
|
|
|
| US |
| 2 |
|
|
| 9 |
| |
Operating margin |
| 37.5 | % |
|
| 36.2 | % |
|
|
| International |
| 4 |
|
|
| 4 |
|
Net income(1) | $ | 1,495 |
|
| $ | 1,366 |
|
|
|
|
|
|
|
|
|
| ||
% change |
| 9 | % |
|
|
|
|
| ETFs: | $ | 83 |
|
| $ | 150 |
| ||
Diluted EPS | $ | 9.99 |
|
| $ | 9.06 |
|
|
|
| Core equity |
| 32 |
|
|
| 69 |
|
% change |
| 10 | % |
|
|
|
|
|
| Strategic |
| 37 |
|
|
| 51 |
| |
Weighted-average diluted shares |
| 149.7 |
|
|
| 150.7 |
|
|
|
| Precision |
| 14 |
|
|
| 30 |
|
% change |
| (1 | )% |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| Institutional: | $ | (37 | ) |
| $ | (35 | ) | |||
As Adjusted(2): |
|
|
|
|
|
|
|
| Active |
| (2 | ) |
|
| 13 |
| ||
Operating income | $ | 1,881 |
|
| $ | 1,675 |
|
|
|
| Index |
| (35 | ) |
|
| (48 | ) |
% change |
| 12 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating margin |
| 44.1 | % |
|
| 42.5 | % |
|
|
|
|
|
|
|
|
| ||
Net income(1) | $ | 1,550 |
|
| $ | 1,399 |
|
| Cash management net flows | $ | 30 |
|
| $ | 11 |
| ||
% change |
| 11 | % |
|
|
|
|
|
|
|
|
|
|
|
| |||
Diluted EPS | $ | 10.36 |
|
| $ | 9.28 |
|
|
|
|
|
|
|
|
|
| ||
% change |
| 12 | % |
|
|
|
| Total net flows | $ | 82 |
|
| $ | 139 |
| |||
_________________________ |
|
| _________________________ |
| ||||||||||||||
(1) Net income represents net income attributable to BlackRock, Inc. |
|
| (1) Totals may not add due to rounding. |
|
1
BUSINESS RESULTS
|
|
|
|
|
|
|
|
| Q2 2024 |
| |||||
|
|
|
|
| Q2 2024 |
|
|
| Base fees(1) |
| |||||
|
|
|
|
| Base fees(1) |
| June 30, 2024 |
| and securities |
| |||||
| Q2 2024 |
| June 30, 2024 |
| and securities |
| AUM |
| lending revenue |
| |||||
(in millions), (unaudited) | Net flows |
| AUM |
| lending revenue |
| % of Total |
| % of Total |
| |||||
RESULTS BY CLIENT TYPE |
|
|
|
|
|
|
|
|
|
| |||||
Retail | $ | 5,695 |
| $ | 992,152 |
| $ | 1,053 |
|
| 9 | % |
| 27 | % |
ETFs |
| 83,141 |
|
| 3,855,774 |
|
| 1,635 |
|
| 37 | % |
| 43 | % |
Institutional: |
|
|
|
|
|
|
| ||||||||
Active |
| (2,059 | ) |
| 1,968,232 |
|
| 710 |
|
| 18 | % |
| 18 | % |
Index |
| (35,411 | ) |
| 3,051,521 |
|
| 230 |
|
| 29 | % |
| 6 | % |
Total institutional |
| (37,470 | ) |
| 5,019,753 |
|
| 940 |
|
| 47 | % |
| 24 | % |
Long-term |
| 51,366 |
|
| 9,867,679 |
|
| 3,628 |
|
| 93 | % |
| 94 | % |
Cash management |
| 30,199 |
|
| 778,042 |
|
| 247 |
|
| 7 | % |
| 6 | % |
Total | $ | 81,565 |
| $ | 10,645,721 |
| $ | 3,875 |
|
| 100 | % |
| 100 | % |
|
|
|
|
|
|
|
|
|
|
| |||||
RESULTS BY INVESTMENT STYLE |
|
|
|
|
|
|
|
|
|
| |||||
Active | $ | (3,606 | ) | $ | 2,703,506 |
| $ | 1,706 |
|
| 25 | % |
| 44 | % |
Index and ETFs |
| 54,972 |
|
| 7,164,173 |
|
| 1,922 |
|
| 68 | % |
| 50 | % |
Long-term |
| 51,366 |
|
| 9,867,679 |
|
| 3,628 |
|
| 93 | % |
| 94 | % |
Cash management |
| 30,199 |
|
| 778,042 |
|
| 247 |
|
| 7 | % |
| 6 | % |
Total | $ | 81,565 |
| $ | 10,645,721 |
| $ | 3,875 |
|
| 100 | % |
| 100 | % |
|
|
|
|
|
|
|
|
|
|
| |||||
RESULTS BY PRODUCT TYPE |
|
|
|
|
|
|
|
|
|
| |||||
Equity | $ | 6,438 |
| $ | 5,827,135 |
| $ | 1,979 |
|
| 55 | % |
| 51 | % |
Fixed income |
| 35,409 |
|
| 2,815,884 |
|
| 895 |
|
| 26 | % |
| 23 | % |
Multi-asset |
| 4,460 |
|
| 921,412 |
|
| 313 |
|
| 9 | % |
| 8 | % |
Alternatives: |
|
|
|
|
|
|
|
|
|
| |||||
Illiquid alternatives |
| 1,987 |
|
| 137,868 |
|
| 241 |
|
| 1 | % |
| 6 | % |
Liquid alternatives |
| (1,009 | ) |
| 75,483 |
|
| 141 |
|
| 1 | % |
| 4 | % |
Currency and commodities |
| 4,081 |
|
| 89,897 |
|
| 59 |
|
| 1 | % |
| 2 | % |
Total alternatives |
| 5,059 |
|
| 303,248 |
|
| 441 |
|
| 3 | % |
| 12 | % |
Long-term |
| 51,366 |
|
| 9,867,679 |
|
| 3,628 |
|
| 93 | % |
| 94 | % |
Cash management |
| 30,199 |
|
| 778,042 |
|
| 247 |
|
| 7 | % |
| 6 | % |
Total | $ | 81,565 |
| $ | 10,645,721 |
| $ | 3,875 |
|
| 100 | % |
| 100 | % |
INVESTMENT PERFORMANCE AT June 30, 2024(1)
| One-year period | Three-year period | Five-year period |
Fixed income: |
|
|
|
Actively managed AUM above benchmark or peer median |
|
|
|
Taxable | 76% | 79% | 85% |
Tax-exempt | 62% | 65% | 54% |
Index AUM within or above applicable tolerance | 95% | 100% | 99% |
Equity: |
|
|
|
Actively managed AUM above benchmark or peer median |
|
|
|
Fundamental | 56% | 44% | 78% |
Systematic | 96% | 89% | 93% |
Index AUM within or above applicable tolerance | 98% | 100% | 100% |
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 Monday, July 15, 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) 209-4906, or from outside the United States, (866) 400-0049, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 8861191). 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 Monday, July 15, 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.
2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
|
|
|
|
|
|
|
| Three Months |
|
|
|
|
| ||||||||
| Three Months Ended |
|
|
|
|
|
| Ended |
|
|
|
|
| ||||||||
| June 30, |
|
|
|
|
|
| March 31, |
|
|
|
|
| ||||||||
| 2024 |
|
| 2023 |
|
| Change |
|
|
| 2024 |
|
| Change |
|
| |||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Investment advisory and administration fees | $ | 3,721 |
|
| $ | 3,427 |
|
| $ | 294 |
|
|
| $ | 3,627 |
|
| $ | 94 |
|
|
Securities lending revenue |
| 154 |
|
|
| 184 |
|
|
| (30 | ) |
|
|
| 151 |
|
|
| 3 |
|
|
Total investment advisory, administration fees |
| 3,875 |
|
|
| 3,611 |
|
|
| 264 |
|
|
|
| 3,778 |
|
|
| 97 |
|
|
Investment advisory performance fees |
| 164 |
|
|
| 118 |
|
|
| 46 |
|
|
|
| 204 |
|
|
| (40 | ) |
|
Technology services revenue |
| 395 |
|
|
| 359 |
|
|
| 36 |
|
|
|
| 377 |
|
|
| 18 |
|
|
Distribution fees |
| 318 |
|
|
| 319 |
|
|
| (1 | ) |
|
|
| 310 |
|
|
| 8 |
|
|
Advisory and other revenue |
| 53 |
|
|
| 56 |
|
|
| (3 | ) |
|
|
| 59 |
|
|
| (6 | ) |
|
Total revenue |
| 4,805 |
|
|
| 4,463 |
|
|
| 342 |
|
|
|
| 4,728 |
|
|
| 77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Employee compensation and benefits |
| 1,503 |
|
|
| 1,429 |
|
|
| 74 |
|
|
|
| 1,580 |
|
|
| (77 | ) |
|
Sales, asset and account expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Distribution and servicing costs |
| 539 |
|
|
| 518 |
|
|
| 21 |
|
|
|
| 518 |
|
|
| 21 |
|
|
Direct fund expense |
| 358 |
|
|
| 344 |
|
|
| 14 |
|
|
|
| 338 |
|
|
| 20 |
|
|
Sub-advisory and other |
| 32 |
|
|
| 27 |
|
|
| 5 |
|
|
|
| 32 |
|
|
| - |
|
|
Total sales, asset and account expense |
| 929 |
|
|
| 889 |
|
|
| 40 |
|
|
|
| 888 |
|
|
| 41 |
|
|
General and administration expense |
| 534 |
|
|
| 493 |
|
|
| 41 |
|
|
|
| 529 |
|
|
| 5 |
|
|
Amortization of intangible assets |
| 39 |
|
|
| 37 |
|
|
| 2 |
|
|
|
| 38 |
|
|
| 1 |
|
|
Total expense |
| 3,005 |
|
|
| 2,848 |
|
|
| 157 |
|
|
|
| 3,035 |
|
|
| (30 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| 1,800 |
|
|
| 1,615 |
|
|
| 185 |
|
|
|
| 1,693 |
|
|
| 107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonoperating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net gain (loss) on investments |
| 162 |
|
|
| 231 |
|
|
| (69 | ) |
|
|
| 171 |
|
|
| (9 | ) |
|
Interest and dividend income |
| 178 |
|
|
| 89 |
|
|
| 89 |
|
|
|
| 141 |
|
|
| 37 |
|
|
Interest expense |
| (126 | ) |
|
| (69 | ) |
|
| (57 | ) |
|
|
| (92 | ) |
|
| (34 | ) |
|
Total nonoperating income (expense) |
| 214 |
|
|
| 251 |
|
|
| (37 | ) |
|
|
| 220 |
|
|
| (6 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before income taxes |
| 2,014 |
|
|
| 1,866 |
|
|
| 148 |
|
|
|
| 1,913 |
|
|
| 101 |
|
|
Income tax expense |
| 477 |
|
|
| 443 |
|
|
| 34 |
|
|
|
| 290 |
|
|
| 187 |
|
|
Net income |
| 1,537 |
|
|
| 1,423 |
|
|
| 114 |
|
|
|
| 1,623 |
|
|
| (86 | ) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) attributable to noncontrolling |
| 42 |
|
|
| 57 |
|
|
| (15 | ) |
|
|
| 50 |
|
|
| (8 | ) |
|
Net income attributable to BlackRock, Inc. | $ | 1,495 |
|
| $ | 1,366 |
|
| $ | 129 |
|
|
| $ | 1,573 |
|
| $ | (78 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
| 148.4 |
|
|
| 149.6 |
|
|
| (1.2 | ) |
|
|
| 148.7 |
|
|
| (0.2 | ) |
|
Diluted |
| 149.7 |
|
|
| 150.7 |
|
|
| (1.1 | ) |
|
|
| 150.1 |
|
|
| (0.5 | ) |
|
Earnings per share attributable to BlackRock, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic | $ | 10.07 |
|
| $ | 9.13 |
|
| $ | 0.94 |
|
|
| $ | 10.58 |
|
| $ | (0.51 | ) |
|
Diluted | $ | 9.99 |
|
| $ | 9.06 |
|
| $ | 0.93 |
|
|
| $ | 10.48 |
|
| $ | (0.49 | ) |
|
Cash dividends declared and paid per share | $ | 5.10 |
|
| $ | 5.00 |
|
| $ | 0.10 |
|
|
| $ | 5.10 |
|
| $ | - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
AUM (end of period) | $ | 10,645,721 |
|
| $ | 9,425,212 |
|
| $ | 1,220,509 |
|
|
| $ | 10,472,500 |
|
| $ | 173,221 |
|
|
Shares outstanding (end of period) |
| 148.2 |
|
|
| 149.4 |
|
|
| (1.2 | ) |
|
|
| 148.8 |
|
|
| (0.6 | ) |
|
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating margin |
| 37.5 | % |
|
| 36.2 | % |
|
| 130 |
| bps |
|
| 35.8 | % |
|
| 170 |
| bps |
Effective tax rate |
| 24.2 | % |
|
| 24.5 | % |
|
| (30 | ) | bps |
|
| 15.6 | % |
|
| 860 |
| bps |
As adjusted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income (1) | $ | 1,881 |
|
| $ | 1,675 |
|
| $ | 206 |
|
|
| $ | 1,775 |
|
| $ | 106 |
|
|
Operating margin (1) |
| 44.1 | % |
|
| 42.5 | % |
|
| 160 |
| bps |
|
| 42.2 | % |
|
| 190 |
| bps |
Nonoperating income (expense), less net income | $ | 165 |
|
| $ | 178 |
|
| $ | (13 | ) |
|
| $ | 139 |
|
| $ | 26 |
|
|
Net income attributable to BlackRock, Inc. (3) | $ | 1,550 |
|
| $ | 1,399 |
|
| $ | 151 |
|
|
| $ | 1,473 |
|
| $ | 77 |
|
|
Diluted earnings attributable to BlackRock, Inc. | $ | 10.36 |
|
| $ | 9.28 |
|
| $ | 1.08 |
|
|
| $ | 9.81 |
|
| $ | 0.55 |
|
|
Effective tax rate |
| 24.2 | % |
|
| 24.5 | % |
|
| (30 | ) | bps |
|
| 23.0 | % |
|
| 120 |
| bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 11 through 13 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset, and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.
3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
|
|
|
|
|
|
|
|
|
| |||
| Six Months Ended |
|
|
|
|
| ||||||
| June 30, |
|
|
|
|
| ||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| |||
Revenue |
|
|
|
|
|
|
|
|
| |||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
| |||
Investment advisory and administration fees | $ | 7,348 |
|
| $ | 6,762 |
|
| $ | 586 |
|
|
Securities lending revenue |
| 305 |
|
|
| 351 |
|
|
| (46 | ) |
|
Total investment advisory, administration fees |
| 7,653 |
|
|
| 7,113 |
|
|
| 540 |
|
|
Investment advisory performance fees |
| 368 |
|
|
| 173 |
|
|
| 195 |
|
|
Technology services revenue |
| 772 |
|
|
| 699 |
|
|
| 73 |
|
|
Distribution fees |
| 628 |
|
|
| 638 |
|
|
| (10 | ) |
|
Advisory and other revenue |
| 112 |
|
|
| 83 |
|
|
| 29 |
|
|
Total revenue |
| 9,533 |
|
|
| 8,706 |
|
|
| 827 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Expense |
|
|
|
|
|
|
|
|
| |||
Employee compensation and benefits |
| 3,083 |
|
|
| 2,856 |
|
|
| 227 |
|
|
Sales, asset and account expense: |
|
|
|
|
|
|
|
|
| |||
Distribution and servicing costs |
| 1,057 |
|
|
| 1,023 |
|
|
| 34 |
|
|
Direct fund expense |
| 696 |
|
|
| 659 |
|
|
| 37 |
|
|
Sub-advisory and other |
| 64 |
|
|
| 53 |
|
|
| 11 |
|
|
Total sales, asset and account expense |
| 1,817 |
|
|
| 1,735 |
|
|
| 82 |
|
|
General and administration expense |
| 1,063 |
|
|
| 988 |
|
|
| 75 |
|
|
Amortization of intangible assets |
| 77 |
|
|
| 74 |
|
|
| 3 |
|
|
Total expense |
| 6,040 |
|
|
| 5,653 |
|
|
| 387 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating income |
| 3,493 |
|
|
| 3,053 |
|
|
| 440 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Nonoperating income (expense) |
|
|
|
|
|
|
|
|
| |||
Net gain (loss) on investments |
| 333 |
|
|
| 320 |
|
|
| 13 |
|
|
Interest and dividend income |
| 319 |
|
|
| 175 |
|
|
| 144 |
|
|
Interest expense |
| (218 | ) |
|
| (128 | ) |
|
| (90 | ) |
|
Total nonoperating income (expense) |
| 434 |
|
|
| 367 |
|
|
| 67 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Income before income taxes |
| 3,927 |
|
|
| 3,420 |
|
|
| 507 |
|
|
Income tax expense |
| 767 |
|
|
| 828 |
|
|
| (61 | ) |
|
Net income |
| 3,160 |
|
|
| 2,592 |
|
|
| 568 |
|
|
Less: |
|
|
|
|
|
|
|
|
| |||
Net income (loss) attributable to noncontrolling |
| 92 |
|
|
| 69 |
|
|
| 23 |
|
|
Net income attributable to BlackRock, Inc. | $ | 3,068 |
|
| $ | 2,523 |
|
| $ | 545 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
| |||
Basic |
| 148.6 |
|
|
| 149.8 |
|
|
| (1.2 | ) |
|
Diluted |
| 149.9 |
|
|
| 151.0 |
|
|
| (1.2 | ) |
|
Earnings per share attributable to BlackRock, Inc. |
|
|
|
|
|
|
|
|
| |||
Basic | $ | 20.65 |
|
| $ | 16.85 |
|
| $ | 3.80 |
|
|
Diluted | $ | 20.47 |
|
| $ | 16.70 |
|
| $ | 3.77 |
|
|
Cash dividends declared and paid per share | $ | 10.20 |
|
| $ | 10.00 |
|
| $ | 0.20 |
|
|
|
|
|
|
|
|
|
|
|
| |||
Supplemental information: |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| |||
AUM (end of period) | $ | 10,645,721 |
|
| $ | 9,425,212 |
|
| $ | 1,220,509 |
|
|
Shares outstanding (end of period) |
| 148.2 |
|
|
| 149.4 |
|
|
| (1.2 | ) |
|
GAAP: |
|
|
|
|
|
|
|
|
| |||
Operating margin |
| 36.6 | % |
|
| 35.1 | % |
|
| 150 |
| bps |
Effective tax rate |
| 20.0 | % |
|
| 24.7 | % |
|
| (470 | ) | bps |
As adjusted: |
|
|
|
|
|
|
|
|
| |||
Operating income (1) | $ | 3,656 |
|
| $ | 3,186 |
|
| $ | 470 |
|
|
Operating margin (1) |
| 43.1 | % |
|
| 41.5 | % |
|
| 160 |
| bps |
Nonoperating income (expense), less net income | $ | 304 |
|
| $ | 265 |
|
| $ | 39 |
|
|
Net income attributable to BlackRock, Inc. (3) | $ | 3,023 |
|
| $ | 2,599 |
|
| $ | 424 |
|
|
Diluted earnings attributable to BlackRock, Inc. | $ | 20.17 |
|
| $ | 17.21 |
|
| $ | 2.96 |
|
|
Effective tax rate |
| 23.7 | % |
|
| 24.7 | % |
|
| (100 | ) | bps |
|
|
|
|
|
|
|
|
|
|
See pages 11 through 13 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset, and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Client Type and Product Type |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| March 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2024 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 471,438 |
|
| $ | 6,089 |
|
| $ | 4,074 |
|
| $ | 9,206 |
|
| $ | (380 | ) |
| $ | 490,427 |
|
| $ | 475,607 |
|
Fixed income |
| 315,004 |
|
|
| 1,932 |
|
|
| - |
|
|
| (669 | ) |
|
| (2,635 | ) |
|
| 313,632 |
|
|
| 313,550 |
|
Multi-asset |
| 146,182 |
|
|
| (1,443 | ) |
|
| - |
|
|
| 3,123 |
|
|
| (143 | ) |
|
| 147,719 |
|
|
| 145,525 |
|
Alternatives |
| 41,361 |
|
|
| (883 | ) |
|
| - |
|
|
| (68 | ) |
|
| (36 | ) |
|
| 40,374 |
|
|
| 40,847 |
|
Retail subtotal |
| 973,985 |
|
|
| 5,695 |
|
|
| 4,074 |
|
|
| 11,592 |
|
|
| (3,194 | ) |
|
| 992,152 |
|
|
| 975,529 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,752,776 |
|
|
| 44,453 |
|
|
| - |
|
|
| 37,009 |
|
|
| (3,970 | ) |
|
| 2,830,268 |
|
|
| 2,749,800 |
|
Fixed income |
| 904,755 |
|
|
| 34,488 |
|
|
| - |
|
|
| (7,060 | ) |
|
| (966 | ) |
|
| 931,217 |
|
|
| 910,137 |
|
Multi-asset |
| 9,043 |
|
|
| 86 |
|
|
| - |
|
|
| 107 |
|
|
| (32 | ) |
|
| 9,204 |
|
|
| 9,006 |
|
Alternatives |
| 79,068 |
|
|
| 4,114 |
|
|
| - |
|
|
| 1,913 |
|
|
| (10 | ) |
|
| 85,085 |
|
|
| 82,768 |
|
ETFs subtotal |
| 3,745,642 |
|
|
| 83,141 |
|
|
| - |
|
|
| 31,969 |
|
|
| (4,978 | ) |
|
| 3,855,774 |
|
|
| 3,751,711 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 203,042 |
|
|
| 382 |
|
|
| - |
|
|
| 5,349 |
|
|
| (596 | ) |
|
| 208,177 |
|
|
| 203,525 |
|
Fixed income |
| 836,798 |
|
|
| (10,133 | ) |
|
| - |
|
|
| (437 | ) |
|
| (2,512 | ) |
|
| 823,716 |
|
|
| 831,926 |
|
Multi-asset |
| 748,017 |
|
|
| 5,889 |
|
|
| - |
|
|
| 8,389 |
|
|
| (1,101 | ) |
|
| 761,194 |
|
|
| 746,394 |
|
Alternatives |
| 173,519 |
|
|
| 1,803 |
|
|
| - |
|
|
| (13 | ) |
|
| (164 | ) |
|
| 175,145 |
|
|
| 173,709 |
|
Active subtotal |
| 1,961,376 |
|
|
| (2,059 | ) |
|
| - |
|
|
| 13,288 |
|
|
| (4,373 | ) |
|
| 1,968,232 |
|
|
| 1,955,554 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,290,596 |
|
|
| (44,486 | ) |
|
| - |
|
|
| 63,173 |
|
|
| (11,020 | ) |
|
| 2,298,263 |
|
|
| 2,265,395 |
|
Fixed income |
| 749,188 |
|
|
| 9,122 |
|
|
| - |
|
|
| 395 |
|
|
| (11,386 | ) |
|
| 747,319 |
|
|
| 740,968 |
|
Multi-asset |
| 3,355 |
|
|
| (72 | ) |
|
| - |
|
|
| 32 |
|
|
| (20 | ) |
|
| 3,295 |
|
|
| 3,647 |
|
Alternatives |
| 2,576 |
|
|
| 25 |
|
|
| - |
|
|
| 65 |
|
|
| (22 | ) |
|
| 2,644 |
|
|
| 2,677 |
|
Index subtotal |
| 3,045,715 |
|
|
| (35,411 | ) |
|
| - |
|
|
| 63,665 |
|
|
| (22,448 | ) |
|
| 3,051,521 |
|
|
| 3,012,687 |
|
Institutional subtotal |
| 5,007,091 |
|
|
| (37,470 | ) |
|
| - |
|
|
| 76,953 |
|
|
| (26,821 | ) |
|
| 5,019,753 |
|
|
| 4,968,241 |
|
Long-term |
| 9,726,718 |
|
|
| 51,366 |
|
|
| 4,074 |
|
|
| 120,514 |
|
|
| (34,993 | ) |
|
| 9,867,679 |
|
|
| 9,695,481 |
|
Cash management |
| 745,782 |
|
|
| 30,199 |
|
|
| - |
|
|
| 2,513 |
|
|
| (452 | ) |
|
| 778,042 |
|
|
| 762,370 |
|
Total | $ | 10,472,500 |
|
| $ | 81,565 |
|
| $ | 4,074 |
|
| $ | 123,027 |
|
| $ | (35,445 | ) |
| $ | 10,645,721 |
|
| $ | 10,457,851 |
|
Current Quarter Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| March 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2024 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 455,665 |
|
| $ | (421 | ) |
| $ | 4,074 |
|
| $ | 8,160 |
|
| $ | (960 | ) |
| $ | 466,518 |
|
| $ | 456,842 |
|
Fixed income |
| 1,127,206 |
|
|
| (8,543 | ) |
|
| - |
|
|
| (948 | ) |
|
| (5,137 | ) |
|
| 1,112,578 |
|
|
| 1,120,880 |
|
Multi-asset |
| 894,186 |
|
|
| 4,440 |
|
|
| - |
|
|
| 11,515 |
|
|
| (1,244 | ) |
|
| 908,897 |
|
|
| 891,905 |
|
Alternatives |
| 214,876 |
|
|
| 918 |
|
|
| - |
|
|
| (81 | ) |
|
| (200 | ) |
|
| 215,513 |
|
|
| 214,554 |
|
Active subtotal |
| 2,691,933 |
|
|
| (3,606 | ) |
|
| 4,074 |
|
|
| 18,646 |
|
|
| (7,541 | ) |
|
| 2,703,506 |
|
|
| 2,684,181 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,752,776 |
|
|
| 44,453 |
|
|
| - |
|
|
| 37,009 |
|
|
| (3,970 | ) |
|
| 2,830,268 |
|
|
| 2,749,800 |
|
Fixed income |
| 904,755 |
|
|
| 34,488 |
|
|
| - |
|
|
| (7,060 | ) |
|
| (966 | ) |
|
| 931,217 |
|
|
| 910,137 |
|
Multi-asset |
| 9,043 |
|
|
| 86 |
|
|
| - |
|
|
| 107 |
|
|
| (32 | ) |
|
| 9,204 |
|
|
| 9,006 |
|
Alternatives |
| 79,068 |
|
|
| 4,114 |
|
|
| - |
|
|
| 1,913 |
|
|
| (10 | ) |
|
| 85,085 |
|
|
| 82,768 |
|
ETFs subtotal |
| 3,745,642 |
|
|
| 83,141 |
|
|
| - |
|
|
| 31,969 |
|
|
| (4,978 | ) |
|
| 3,855,774 |
|
|
| 3,751,711 |
|
Non-ETF index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,509,411 |
|
|
| (37,594 | ) |
|
| - |
|
|
| 69,568 |
|
|
| (11,036 | ) |
|
| 2,530,349 |
|
|
| 2,487,685 |
|
Fixed income |
| 773,784 |
|
|
| 9,464 |
|
|
| - |
|
|
| 237 |
|
|
| (11,396 | ) |
|
| 772,089 |
|
|
| 765,564 |
|
Multi-asset |
| 3,368 |
|
|
| (66 | ) |
|
| - |
|
|
| 29 |
|
|
| (20 | ) |
|
| 3,311 |
|
|
| 3,661 |
|
Alternatives |
| 2,580 |
|
|
| 27 |
|
|
| - |
|
|
| 65 |
|
|
| (22 | ) |
|
| 2,650 |
|
|
| 2,679 |
|
Non-ETF index subtotal |
| 3,289,143 |
|
|
| (28,169 | ) |
|
| - |
|
|
| 69,899 |
|
|
| (22,474 | ) |
|
| 3,308,399 |
|
|
| 3,259,589 |
|
Index and ETFs subtotal |
| 7,034,785 |
|
|
| 54,972 |
|
|
| - |
|
|
| 101,868 |
|
|
| (27,452 | ) |
|
| 7,164,173 |
|
|
| 7,011,300 |
|
Long-term | $ | 9,726,718 |
|
| $ | 51,366 |
|
| $ | 4,074 |
|
| $ | 120,514 |
|
| $ | (34,993 | ) |
| $ | 9,867,679 |
|
| $ | 9,695,481 |
|
Current Quarter Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| March 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2024 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Equity | $ | 5,717,852 |
|
| $ | 6,438 |
|
| $ | 4,074 |
|
| $ | 114,737 |
|
| $ | (15,966 | ) |
| $ | 5,827,135 |
|
| $ | 5,694,327 |
|
Fixed income |
| 2,805,745 |
|
|
| 35,409 |
|
|
| - |
|
|
| (7,771 | ) |
|
| (17,499 | ) |
|
| 2,815,884 |
|
|
| 2,796,581 |
|
Multi-asset |
| 906,597 |
|
|
| 4,460 |
|
|
| - |
|
|
| 11,651 |
|
|
| (1,296 | ) |
|
| 921,412 |
|
|
| 904,572 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Illiquid alternatives |
| 137,254 |
|
|
| 1,987 |
|
|
| - |
|
|
| (1,151 | ) |
|
| (222 | ) |
|
| 137,868 |
|
|
| 137,285 |
|
Liquid alternatives |
| 75,365 |
|
|
| (1,009 | ) |
|
| - |
|
|
| 1,046 |
|
|
| 81 |
|
|
| 75,483 |
|
|
| 75,105 |
|
Currency and commodities(4) |
| 83,905 |
|
|
| 4,081 |
|
|
| - |
|
|
| 2,002 |
|
|
| (91 | ) |
|
| 89,897 |
|
|
| 87,611 |
|
Alternatives subtotal |
| 296,524 |
|
|
| 5,059 |
|
|
| - |
|
|
| 1,897 |
|
|
| (232 | ) |
|
| 303,248 |
|
|
| 300,001 |
|
Long-term | $ | 9,726,718 |
|
| $ | 51,366 |
|
| $ | 4,074 |
|
| $ | 120,514 |
|
| $ | (34,993 | ) |
| $ | 9,867,679 |
|
| $ | 9,695,481 |
|
5
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-to-Date Component Changes by Client Type and Product Type |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| December 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 435,734 |
|
| $ | 10,177 |
|
| $ | 4,074 |
|
| $ | 42,461 |
|
| $ | (2,019 | ) |
| $ | 490,427 |
|
| $ | 461,772 |
|
Fixed income |
| 312,799 |
|
|
| 4,799 |
|
|
| - |
|
|
| (821 | ) |
|
| (3,145 | ) |
|
| 313,632 |
|
|
| 313,187 |
|
Multi-asset |
| 139,537 |
|
|
| (599 | ) |
|
| - |
|
|
| 9,119 |
|
|
| (338 | ) |
|
| 147,719 |
|
|
| 143,318 |
|
Alternatives |
| 41,627 |
|
|
| (1,522 | ) |
|
| - |
|
|
| 440 |
|
|
| (171 | ) |
|
| 40,374 |
|
|
| 41,070 |
|
Retail subtotal |
| 929,697 |
|
|
| 12,855 |
|
|
| 4,074 |
|
|
| 51,199 |
|
|
| (5,673 | ) |
|
| 992,152 |
|
|
| 959,347 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,532,631 |
|
|
| 81,208 |
|
|
| - |
|
|
| 228,188 |
|
|
| (11,759 | ) |
|
| 2,830,268 |
|
|
| 2,673,622 |
|
Fixed income |
| 898,403 |
|
|
| 52,696 |
|
|
| - |
|
|
| (15,775 | ) |
|
| (4,107 | ) |
|
| 931,217 |
|
|
| 905,827 |
|
Multi-asset |
| 9,140 |
|
|
| (359 | ) |
|
| - |
|
|
| 522 |
|
|
| (99 | ) |
|
| 9,204 |
|
|
| 8,938 |
|
Alternatives |
| 59,125 |
|
|
| 16,837 |
|
|
| - |
|
|
| 9,194 |
|
|
| (71 | ) |
|
| 85,085 |
|
|
| 73,982 |
|
ETFs subtotal |
| 3,499,299 |
|
|
| 150,382 |
|
|
| - |
|
|
| 222,129 |
|
|
| (16,036 | ) |
|
| 3,855,774 |
|
|
| 3,662,369 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 186,688 |
|
|
| 3,688 |
|
|
| - |
|
|
| 20,270 |
|
|
| (2,469 | ) |
|
| 208,177 |
|
|
| 197,348 |
|
Fixed income |
| 836,823 |
|
|
| (4,839 | ) |
|
| - |
|
|
| (1,515 | ) |
|
| (6,753 | ) |
|
| 823,716 |
|
|
| 831,852 |
|
Multi-asset |
| 717,182 |
|
|
| 12,177 |
|
|
| - |
|
|
| 38,069 |
|
|
| (6,234 | ) |
|
| 761,194 |
|
|
| 734,758 |
|
Alternatives |
| 171,980 |
|
|
| 1,600 |
|
|
| - |
|
|
| 2,739 |
|
|
| (1,174 | ) |
|
| 175,145 |
|
|
| 173,057 |
|
Active subtotal |
| 1,912,673 |
|
|
| 12,626 |
|
|
| - |
|
|
| 59,563 |
|
|
| (16,630 | ) |
|
| 1,968,232 |
|
|
| 1,937,015 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,138,291 |
|
|
| (70,214 | ) |
|
| - |
|
|
| 264,784 |
|
|
| (34,598 | ) |
|
| 2,298,263 |
|
|
| 2,226,681 |
|
Fixed income |
| 756,001 |
|
|
| 24,488 |
|
|
| - |
|
|
| (3,457 | ) |
|
| (29,713 | ) |
|
| 747,319 |
|
|
| 742,521 |
|
Multi-asset |
| 4,945 |
|
|
| (1,662 | ) |
|
| - |
|
|
| 76 |
|
|
| (64 | ) |
|
| 3,295 |
|
|
| 4,005 |
|
Alternatives |
| 3,252 |
|
|
| (696 | ) |
|
| - |
|
|
| 136 |
|
|
| (48 | ) |
|
| 2,644 |
|
|
| 2,880 |
|
Index subtotal |
| 2,902,489 |
|
|
| (48,084 | ) |
|
| - |
|
|
| 261,539 |
|
|
| (64,423 | ) |
|
| 3,051,521 |
|
|
| 2,976,087 |
|
Institutional subtotal |
| 4,815,162 |
|
|
| (35,458 | ) |
|
| - |
|
|
| 321,102 |
|
|
| (81,053 | ) |
|
| 5,019,753 |
|
|
| 4,913,102 |
|
Long-term |
| 9,244,158 |
|
|
| 127,779 |
|
|
| 4,074 |
|
|
| 594,430 |
|
|
| (102,762 | ) |
|
| 9,867,679 |
|
|
| 9,534,818 |
|
Cash management |
| 764,837 |
|
|
| 10,975 |
|
|
| - |
|
|
| 4,992 |
|
|
| (2,762 | ) |
|
| 778,042 |
|
|
| 760,551 |
|
Total | $ | 10,008,995 |
|
| $ | 138,754 |
|
| $ | 4,074 |
|
| $ | 599,422 |
|
| $ | (105,524 | ) |
| $ | 10,645,721 |
|
| $ | 10,295,369 |
|
Year-to-Date Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| December 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 427,448 |
|
| $ | (1,009 | ) |
| $ | 4,074 |
|
| $ | 39,760 |
|
| $ | (3,755 | ) |
| $ | 466,518 |
|
| $ | 445,825 |
|
Fixed income |
| 1,123,422 |
|
|
| 649 |
|
|
| - |
|
|
| (1,914 | ) |
|
| (9,579 | ) |
|
| 1,112,578 |
|
|
| 1,120,116 |
|
Multi-asset |
| 856,705 |
|
|
| 11,572 |
|
|
| - |
|
|
| 47,192 |
|
|
| (6,572 | ) |
|
| 908,897 |
|
|
| 878,063 |
|
Alternatives |
| 213,603 |
|
|
| 76 |
|
|
| - |
|
|
| 3,179 |
|
|
| (1,345 | ) |
|
| 215,513 |
|
|
| 214,125 |
|
Active subtotal |
| 2,621,178 |
|
|
| 11,288 |
|
|
| 4,074 |
|
|
| 88,217 |
|
|
| (21,251 | ) |
|
| 2,703,506 |
|
|
| 2,658,129 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,532,631 |
|
|
| 81,208 |
|
|
| - |
|
|
| 228,188 |
|
|
| (11,759 | ) |
|
| 2,830,268 |
|
|
| 2,673,622 |
|
Fixed income |
| 898,403 |
|
|
| 52,696 |
|
|
| - |
|
|
| (15,775 | ) |
|
| (4,107 | ) |
|
| 931,217 |
|
|
| 905,827 |
|
Multi-asset |
| 9,140 |
|
|
| (359 | ) |
|
| - |
|
|
| 522 |
|
|
| (99 | ) |
|
| 9,204 |
|
|
| 8,938 |
|
Alternatives |
| 59,125 |
|
|
| 16,837 |
|
|
| - |
|
|
| 9,194 |
|
|
| (71 | ) |
|
| 85,085 |
|
|
| 73,982 |
|
ETFs subtotal |
| 3,499,299 |
|
|
| 150,382 |
|
|
| - |
|
|
| 222,129 |
|
|
| (16,036 | ) |
|
| 3,855,774 |
|
|
| 3,662,369 |
|
Non-ETF index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,333,265 |
|
|
| (55,340 | ) |
|
| - |
|
|
| 287,755 |
|
|
| (35,331 | ) |
|
| 2,530,349 |
|
|
| 2,439,976 |
|
Fixed income |
| 782,201 |
|
|
| 23,799 |
|
|
| - |
|
|
| (3,879 | ) |
|
| (30,032 | ) |
|
| 772,089 |
|
|
| 767,444 |
|
Multi-asset |
| 4,959 |
|
|
| (1,656 | ) |
|
| - |
|
|
| 72 |
|
|
| (64 | ) |
|
| 3,311 |
|
|
| 4,018 |
|
Alternatives |
| 3,256 |
|
|
| (694 | ) |
|
| - |
|
|
| 136 |
|
|
| (48 | ) |
|
| 2,650 |
|
|
| 2,882 |
|
Non-ETF index subtotal |
| 3,123,681 |
|
|
| (33,891 | ) |
|
| - |
|
|
| 284,084 |
|
|
| (65,475 | ) |
|
| 3,308,399 |
|
|
| 3,214,320 |
|
Index and ETFs subtotal |
| 6,622,980 |
|
|
| 116,491 |
|
|
| - |
|
|
| 506,213 |
|
|
| (81,511 | ) |
|
| 7,164,173 |
|
|
| 6,876,689 |
|
Long-term | $ | 9,244,158 |
|
| $ | 127,779 |
|
| $ | 4,074 |
|
| $ | 594,430 |
|
| $ | (102,762 | ) |
| $ | 9,867,679 |
|
| $ | 9,534,818 |
|
Year-to-Date Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| December 31, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Equity | $ | 5,293,344 |
|
| $ | 24,859 |
|
| $ | 4,074 |
|
| $ | 555,703 |
|
| $ | (50,845 | ) |
| $ | 5,827,135 |
|
| $ | 5,559,423 |
|
Fixed income |
| 2,804,026 |
|
|
| 77,144 |
|
|
| - |
|
|
| (21,568 | ) |
|
| (43,718 | ) |
|
| 2,815,884 |
|
|
| 2,793,387 |
|
Multi-asset |
| 870,804 |
|
|
| 9,557 |
|
|
| - |
|
|
| 47,786 |
|
|
| (6,735 | ) |
|
| 921,412 |
|
|
| 891,019 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Illiquid alternatives |
| 136,909 |
|
|
| 3,200 |
|
|
| - |
|
|
| (1,281 | ) |
|
| (960 | ) |
|
| 137,868 |
|
|
| 136,909 |
|
Liquid alternatives |
| 74,233 |
|
|
| (2,923 | ) |
|
| - |
|
|
| 4,420 |
|
|
| (247 | ) |
|
| 75,483 |
|
|
| 74,964 |
|
Currency and commodities(4) |
| 64,842 |
|
|
| 15,942 |
|
|
| - |
|
|
| 9,370 |
|
|
| (257 | ) |
|
| 89,897 |
|
|
| 79,116 |
|
Alternatives subtotal |
| 275,984 |
|
|
| 16,219 |
|
|
| - |
|
|
| 12,509 |
|
|
| (1,464 | ) |
|
| 303,248 |
|
|
| 290,989 |
|
Long-term | $ | 9,244,158 |
|
| $ | 127,779 |
|
| $ | 4,074 |
|
| $ | 594,430 |
|
| $ | (102,762 | ) |
| $ | 9,867,679 |
|
| $ | 9,534,818 |
|
6
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Client Type and Product Type |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| June 30, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 415,475 |
|
| $ | 8,992 |
|
| $ | 4,074 |
|
| $ | 63,294 |
|
| $ | (1,408 | ) |
| $ | 490,427 |
|
| $ | 437,381 |
|
Fixed income |
| 309,449 |
|
|
| (2,454 | ) |
|
| - |
|
|
| 8,947 |
|
|
| (2,310 | ) |
|
| 313,632 |
|
|
| 309,375 |
|
Multi-asset |
| 133,546 |
|
|
| (237 | ) |
|
| - |
|
|
| 14,671 |
|
|
| (261 | ) |
|
| 147,719 |
|
|
| 138,005 |
|
Alternatives |
| 45,160 |
|
|
| (5,990 | ) |
|
| - |
|
|
| 1,311 |
|
|
| (107 | ) |
|
| 40,374 |
|
|
| 42,135 |
|
Retail subtotal |
| 903,630 |
|
|
| 311 |
|
|
| 4,074 |
|
|
| 88,223 |
|
|
| (4,086 | ) |
|
| 992,152 |
|
|
| 926,896 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,309,054 |
|
|
| 158,646 |
|
|
| - |
|
|
| 371,082 |
|
|
| (8,514 | ) |
|
| 2,830,268 |
|
|
| 2,504,113 |
|
Fixed income |
| 837,759 |
|
|
| 96,399 |
|
|
| - |
|
|
| (378 | ) |
|
| (2,563 | ) |
|
| 931,217 |
|
|
| 875,036 |
|
Multi-asset |
| 7,892 |
|
|
| 546 |
|
|
| - |
|
|
| 851 |
|
|
| (85 | ) |
|
| 9,204 |
|
|
| 8,485 |
|
Alternatives |
| 61,227 |
|
|
| 11,033 |
|
|
| - |
|
|
| 12,856 |
|
|
| (31 | ) |
|
| 85,085 |
|
|
| 67,769 |
|
ETFs subtotal |
| 3,215,932 |
|
|
| 266,624 |
|
|
| - |
|
|
| 384,411 |
|
|
| (11,193 | ) |
|
| 3,855,774 |
|
|
| 3,455,403 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 178,057 |
|
|
| 509 |
|
|
| - |
|
|
| 31,362 |
|
|
| (1,751 | ) |
|
| 208,177 |
|
|
| 186,986 |
|
Fixed income |
| 807,167 |
|
|
| (11,177 | ) |
|
| - |
|
|
| 32,711 |
|
|
| (4,985 | ) |
|
| 823,716 |
|
|
| 812,784 |
|
Multi-asset |
| 664,069 |
|
|
| 24,325 |
|
|
| - |
|
|
| 77,035 |
|
|
| (4,235 | ) |
|
| 761,194 |
|
|
| 700,837 |
|
Alternatives |
| 163,426 |
|
|
| 5,149 |
|
|
| 2,177 |
|
|
| 4,967 |
|
|
| (574 | ) |
|
| 175,145 |
|
|
| 170,064 |
|
Active subtotal |
| 1,812,719 |
|
|
| 18,806 |
|
|
| 2,177 |
|
|
| 146,075 |
|
|
| (11,545 | ) |
|
| 1,968,232 |
|
|
| 1,870,671 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,058,758 |
|
|
| (143,670 | ) |
|
| - |
|
|
| 407,810 |
|
|
| (24,635 | ) |
|
| 2,298,263 |
|
|
| 2,126,429 |
|
Fixed income |
| 714,476 |
|
|
| 39,767 |
|
|
| - |
|
|
| 16,379 |
|
|
| (23,303 | ) |
|
| 747,319 |
|
|
| 725,884 |
|
Multi-asset |
| 6,420 |
|
|
| (3,331 | ) |
|
| - |
|
|
| 272 |
|
|
| (66 | ) |
|
| 3,295 |
|
|
| 4,689 |
|
Alternatives |
| 3,136 |
|
|
| (668 | ) |
|
| - |
|
|
| 214 |
|
|
| (38 | ) |
|
| 2,644 |
|
|
| 3,078 |
|
Index subtotal |
| 2,782,790 |
|
|
| (107,902 | ) |
|
| - |
|
|
| 424,675 |
|
|
| (48,042 | ) |
|
| 3,051,521 |
|
|
| 2,860,080 |
|
Institutional subtotal |
| 4,595,509 |
|
|
| (89,096 | ) |
|
| 2,177 |
|
|
| 570,750 |
|
|
| (59,587 | ) |
|
| 5,019,753 |
|
|
| 4,730,751 |
|
Long-term |
| 8,715,071 |
|
|
| 177,839 |
|
|
| 6,251 |
|
|
| 1,043,384 |
|
|
| (74,866 | ) |
|
| 9,867,679 |
|
|
| 9,113,050 |
|
Cash management |
| 710,141 |
|
|
| 59,130 |
|
|
| - |
|
|
| 10,020 |
|
|
| (1,249 | ) |
|
| 778,042 |
|
|
| 739,555 |
|
Total | $ | 9,425,212 |
|
| $ | 236,969 |
|
| $ | 6,251 |
|
| $ | 1,053,404 |
|
| $ | (76,115 | ) |
| $ | 10,645,721 |
|
| $ | 9,852,605 |
|
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| June 30, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Equity | $ | 418,663 |
|
| $ | (12,958 | ) |
| $ | 4,074 |
|
| $ | 59,442 |
|
| $ | (2,703 | ) |
| $ | 466,518 |
|
| $ | 428,415 |
|
Fixed income |
| 1,091,544 |
|
|
| (12,492 | ) |
|
| - |
|
|
| 40,658 |
|
|
| (7,132 | ) |
|
| 1,112,578 |
|
|
| 1,096,979 |
|
Multi-asset |
| 797,605 |
|
|
| 24,079 |
|
|
| - |
|
|
| 91,709 |
|
|
| (4,496 | ) |
|
| 908,897 |
|
|
| 838,830 |
|
Alternatives |
| 208,584 |
|
|
| (843 | ) |
|
| 2,177 |
|
|
| 6,276 |
|
|
| (681 | ) |
|
| 215,513 |
|
|
| 212,197 |
|
Active subtotal |
| 2,516,396 |
|
|
| (2,214 | ) |
|
| 6,251 |
|
|
| 198,085 |
|
|
| (15,012 | ) |
|
| 2,703,506 |
|
|
| 2,576,421 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,309,054 |
|
|
| 158,646 |
|
|
| - |
|
|
| 371,082 |
|
|
| (8,514 | ) |
|
| 2,830,268 |
|
|
| 2,504,113 |
|
Fixed income |
| 837,759 |
|
|
| 96,399 |
|
|
| - |
|
|
| (378 | ) |
|
| (2,563 | ) |
|
| 931,217 |
|
|
| 875,036 |
|
Multi-asset |
| 7,892 |
|
|
| 546 |
|
|
| - |
|
|
| 851 |
|
|
| (85 | ) |
|
| 9,204 |
|
|
| 8,485 |
|
Alternatives |
| 61,227 |
|
|
| 11,033 |
|
|
| - |
|
|
| 12,856 |
|
|
| (31 | ) |
|
| 85,085 |
|
|
| 67,769 |
|
ETFs subtotal |
| 3,215,932 |
|
|
| 266,624 |
|
|
| - |
|
|
| 384,411 |
|
|
| (11,193 | ) |
|
| 3,855,774 |
|
|
| 3,455,403 |
|
Non-ETF index: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
Equity |
| 2,233,627 |
|
|
| (121,211 | ) |
|
| - |
|
|
| 443,024 |
|
|
| (25,091 | ) |
|
| 2,530,349 |
|
|
| 2,322,381 |
|
Fixed income |
| 739,548 |
|
|
| 38,628 |
|
|
| - |
|
|
| 17,379 |
|
|
| (23,466 | ) |
|
| 772,089 |
|
|
| 751,064 |
|
Multi-asset |
| 6,430 |
|
|
| (3,322 | ) |
|
| - |
|
|
| 269 |
|
|
| (66 | ) |
|
| 3,311 |
|
|
| 4,701 |
|
Alternatives |
| 3,138 |
|
|
| (666 | ) |
|
| - |
|
|
| 216 |
|
|
| (38 | ) |
|
| 2,650 |
|
|
| 3,080 |
|
Non-ETF index subtotal |
| 2,982,743 |
|
|
| (86,571 | ) |
|
| - |
|
|
| 460,888 |
|
|
| (48,661 | ) |
|
| 3,308,399 |
|
|
| 3,081,226 |
|
Index and ETFs subtotal |
| 6,198,675 |
|
|
| 180,053 |
|
|
| - |
|
|
| 845,299 |
|
|
| (59,854 | ) |
|
| 7,164,173 |
|
|
| 6,536,629 |
|
Long-term | $ | 8,715,071 |
|
| $ | 177,839 |
|
| $ | 6,251 |
|
| $ | 1,043,384 |
|
| $ | (74,866 | ) |
| $ | 9,867,679 |
|
| $ | 9,113,050 |
|
Year-over-Year Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||||||
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| June 30, |
|
| inflows |
|
|
|
|
| Market |
|
|
|
|
| June 30, |
|
|
|
| |||||||
| 2023 |
|
| (outflows) |
|
| Acquisition(1) |
|
| change |
|
| FX impact(2) |
|
| 2024 |
|
| Average AUM(3) |
| |||||||
Equity | $ | 4,961,344 |
|
| $ | 24,477 |
|
| $ | 4,074 |
|
| $ | 873,548 |
|
| $ | (36,308 | ) |
| $ | 5,827,135 |
|
| $ | 5,254,909 |
|
Fixed income |
| 2,668,851 |
|
|
| 122,535 |
|
|
| - |
|
|
| 57,659 |
|
|
| (33,161 | ) |
|
| 2,815,884 |
|
|
| 2,723,079 |
|
Multi-asset |
| 811,927 |
|
|
| 21,303 |
|
|
| - |
|
|
| 92,829 |
|
|
| (4,647 | ) |
|
| 921,412 |
|
|
| 852,016 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Illiquid alternatives |
| 127,678 |
|
|
| 9,384 |
|
|
| 2,177 |
|
|
| (881 | ) |
|
| (490 | ) |
|
| 137,868 |
|
|
| 134,398 |
|
Liquid alternatives |
| 78,056 |
|
|
| (9,684 | ) |
|
| - |
|
|
| 7,191 |
|
|
| (80 | ) |
|
| 75,483 |
|
|
| 75,331 |
|
Currency and commodities(4) |
| 67,215 |
|
|
| 9,824 |
|
|
| - |
|
|
| 13,038 |
|
|
| (180 | ) |
|
| 89,897 |
|
|
| 73,317 |
|
Alternatives subtotal |
| 272,949 |
|
|
| 9,524 |
|
|
| 2,177 |
|
|
| 19,348 |
|
|
| (750 | ) |
|
| 303,248 |
|
|
| 283,046 |
|
Long-term | $ | 8,715,071 |
|
| $ | 177,839 |
|
| $ | 6,251 |
|
| $ | 1,043,384 |
|
| $ | (74,866 | ) |
| $ | 9,867,679 |
|
| $ | 9,113,050 |
|
7
SUMMARY OF REVENUE
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
| ||||||||||||||
| Ended |
|
|
|
|
| Ended |
|
|
|
|
| Ended |
|
|
|
| ||||||||||||||
| June 30, |
|
|
|
|
| March 31, |
|
|
|
|
| June 30, |
|
|
|
| ||||||||||||||
(in millions), (unaudited) | 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| ||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Investment advisory, administration fees and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Active | $ | 539 |
|
| $ | 506 |
|
| $ | 33 |
|
| $ | 516 |
|
| $ | 23 |
|
| $ | 1,055 |
|
| $ | 1,006 |
|
| $ | 49 |
|
ETFs |
| 1,250 |
|
|
| 1,102 |
|
|
| 148 |
|
|
| 1,190 |
|
|
| 60 |
|
|
| 2,440 |
|
|
| 2,180 |
|
|
| 260 |
|
Non-ETF index |
| 190 |
|
|
| 197 |
|
|
| (7 | ) |
|
| 187 |
|
|
| 3 |
|
|
| 377 |
|
|
| 374 |
|
|
| 3 |
|
Equity subtotal |
| 1,979 |
|
|
| 1,805 |
|
|
| 174 |
|
|
| 1,893 |
|
|
| 86 |
|
|
| 3,872 |
|
|
| 3,560 |
|
|
| 312 |
|
Fixed income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Active |
| 481 |
|
|
| 482 |
|
|
| (1 | ) |
|
| 484 |
|
|
| (3 | ) |
|
| 965 |
|
|
| 950 |
|
|
| 15 |
|
ETFs |
| 326 |
|
|
| 309 |
|
|
| 17 |
|
|
| 327 |
|
|
| (1 | ) |
|
| 653 |
|
|
| 604 |
|
|
| 49 |
|
Non-ETF index |
| 88 |
|
|
| 88 |
|
|
| - |
|
|
| 92 |
|
|
| (4 | ) |
|
| 180 |
|
|
| 175 |
|
|
| 5 |
|
Fixed income subtotal |
| 895 |
|
|
| 879 |
|
|
| 16 |
|
|
| 903 |
|
|
| (8 | ) |
|
| 1,798 |
|
|
| 1,729 |
|
|
| 69 |
|
Multi-asset |
| 313 |
|
|
| 300 |
|
|
| 13 |
|
|
| 314 |
|
|
| (1 | ) |
|
| 627 |
|
|
| 596 |
|
|
| 31 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Illiquid alternatives |
| 241 |
|
|
| 206 |
|
|
| 35 |
|
|
| 240 |
|
|
| 1 |
|
|
| 481 |
|
|
| 407 |
|
|
| 74 |
|
Liquid alternatives |
| 141 |
|
|
| 146 |
|
|
| (5 | ) |
|
| 138 |
|
|
| 3 |
|
|
| 279 |
|
|
| 291 |
|
|
| (12 | ) |
Currency and commodities |
| 59 |
|
|
| 49 |
|
|
| 10 |
|
|
| 45 |
|
|
| 14 |
|
|
| 104 |
|
|
| 95 |
|
|
| 9 |
|
Alternatives subtotal |
| 441 |
|
|
| 401 |
|
|
| 40 |
|
|
| 423 |
|
|
| 18 |
|
|
| 864 |
|
|
| 793 |
|
|
| 71 |
|
Long-term |
| 3,628 |
|
|
| 3,385 |
|
|
| 243 |
|
|
| 3,533 |
|
|
| 95 |
|
|
| 7,161 |
|
|
| 6,678 |
|
|
| 483 |
|
Cash management |
| 247 |
|
|
| 226 |
|
|
| 21 |
|
|
| 245 |
|
|
| 2 |
|
|
| 492 |
|
|
| 435 |
|
|
| 57 |
|
Total investment advisory, administration |
| 3,875 |
|
|
| 3,611 |
|
|
| 264 |
|
|
| 3,778 |
|
|
| 97 |
|
|
| 7,653 |
|
|
| 7,113 |
|
|
| 540 |
|
Investment advisory performance fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Equity |
| 28 |
|
|
| 15 |
|
|
| 13 |
|
|
| 8 |
|
|
| 20 |
|
|
| 36 |
|
|
| 21 |
|
|
| 15 |
|
Fixed income |
| 5 |
|
|
| - |
|
|
| 5 |
|
|
| 4 |
|
|
| 1 |
|
|
| 9 |
|
|
| 1 |
|
|
| 8 |
|
Multi-asset |
| 11 |
|
|
| 3 |
|
|
| 8 |
|
|
| 2 |
|
|
| 9 |
|
|
| 13 |
|
|
| 18 |
|
|
| (5 | ) |
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Illiquid alternatives |
| 68 |
|
|
| 79 |
|
|
| (11 | ) |
|
| 125 |
|
|
| (57 | ) |
|
| 193 |
|
|
| 100 |
|
|
| 93 |
|
Liquid alternatives |
| 52 |
|
|
| 21 |
|
|
| 31 |
|
|
| 65 |
|
|
| (13 | ) |
|
| 117 |
|
|
| 33 |
|
|
| 84 |
|
Alternatives subtotal |
| 120 |
|
|
| 100 |
|
|
| 20 |
|
|
| 190 |
|
|
| (70 | ) |
|
| 310 |
|
|
| 133 |
|
|
| 177 |
|
Total investment advisory performance fees |
| 164 |
|
|
| 118 |
|
|
| 46 |
|
|
| 204 |
|
|
| (40 | ) |
|
| 368 |
|
|
| 173 |
|
|
| 195 |
|
Technology services revenue |
| 395 |
|
|
| 359 |
|
|
| 36 |
|
|
| 377 |
|
|
| 18 |
|
|
| 772 |
|
|
| 699 |
|
|
| 73 |
|
Distribution fees |
| 318 |
|
|
| 319 |
|
|
| (1 | ) |
|
| 310 |
|
|
| 8 |
|
|
| 628 |
|
|
| 638 |
|
|
| (10 | ) |
Advisory and other revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Advisory |
| 11 |
|
|
| 31 |
|
|
| (20 | ) |
|
| 13 |
|
|
| (2 | ) |
|
| 24 |
|
|
| 45 |
|
|
| (21 | ) |
Other |
| 42 |
|
|
| 25 |
|
|
| 17 |
|
|
| 46 |
|
|
| (4 | ) |
|
| 88 |
|
|
| 38 |
|
|
| 50 |
|
Total advisory and other revenue |
| 53 |
|
|
| 56 |
|
|
| (3 | ) |
|
| 59 |
|
|
| (6 | ) |
|
| 112 |
|
|
| 83 |
|
|
| 29 |
|
Total revenue | $ | 4,805 |
|
| $ | 4,463 |
|
| $ | 342 |
|
| $ | 4,728 |
|
| $ | 77 |
|
| $ | 9,533 |
|
| $ | 8,706 |
|
| $ | 827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
Securities lending revenue of $154 million decreased from $184 million in the second quarter of 2023, primarily reflecting lower spreads.
Performance fees decreased $40 million from the first quarter of 2024, reflecting lower revenue from illiquid and liquid alternative products, partially offset by higher revenue from long-only products.
8
SUMMARY OF OPERATING EXPENSE
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
| ||||||||||||||
| Ended |
|
|
|
|
| Ended |
|
|
|
|
| Ended |
|
|
|
| ||||||||||||||
| June 30, |
|
|
|
|
| March 31, |
|
|
|
|
| June 30, |
|
|
|
| ||||||||||||||
(in millions), (unaudited) | 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| ||||||||
Operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Employee compensation and benefits | $ | 1,503 |
|
| $ | 1,429 |
|
| $ | 74 |
|
| $ | 1,580 |
|
| $ | (77 | ) |
| $ | 3,083 |
|
| $ | 2,856 |
|
| $ | 227 |
|
Sales, asset and account expense(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Distribution and servicing costs |
| 539 |
|
|
| 518 |
|
|
| 21 |
|
|
| 518 |
|
|
| 21 |
|
|
| 1,057 |
|
|
| 1,023 |
|
|
| 34 |
|
Direct fund expense |
| 358 |
|
|
| 344 |
|
|
| 14 |
|
|
| 338 |
|
|
| 20 |
|
|
| 696 |
|
|
| 659 |
|
|
| 37 |
|
Sub-advisory and other |
| 32 |
|
|
| 27 |
|
|
| 5 |
|
|
| 32 |
|
|
| - |
|
|
| 64 |
|
|
| 53 |
|
|
| 11 |
|
Total sales, asset and account expense |
| 929 |
|
|
| 889 |
|
|
| 40 |
|
|
| 888 |
|
|
| 41 |
|
|
| 1,817 |
|
|
| 1,735 |
|
|
| 82 |
|
General and administration expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Marketing and promotional |
| 76 |
|
|
| 74 |
|
|
| 2 |
|
|
| 82 |
|
|
| (6 | ) |
|
| 158 |
|
|
| 148 |
|
|
| 10 |
|
Occupancy and office related |
| 102 |
|
|
| 100 |
|
|
| 2 |
|
|
| 101 |
|
|
| 1 |
|
|
| 203 |
|
|
| 210 |
|
|
| (7 | ) |
Portfolio services |
| 63 |
|
|
| 69 |
|
|
| (6 | ) |
|
| 66 |
|
|
| (3 | ) |
|
| 129 |
|
|
| 137 |
|
|
| (8 | ) |
Technology |
| 157 |
|
|
| 141 |
|
|
| 16 |
|
|
| 160 |
|
|
| (3 | ) |
|
| 317 |
|
|
| 276 |
|
|
| 41 |
|
Professional services |
| 64 |
|
|
| 35 |
|
|
| 29 |
|
|
| 58 |
|
|
| 6 |
|
|
| 122 |
|
|
| 77 |
|
|
| 45 |
|
Communications |
| 9 |
|
|
| 12 |
|
|
| (3 | ) |
|
| 10 |
|
|
| (1 | ) |
|
| 19 |
|
|
| 24 |
|
|
| (5 | ) |
Foreign exchange remeasurement |
| 2 |
|
|
| 2 |
|
|
| - |
|
|
| 2 |
|
|
| - |
|
|
| 4 |
|
|
| 1 |
|
|
| 3 |
|
Contingent consideration fair value adjustments |
| 1 |
|
|
| 1 |
|
|
| - |
|
|
| (7 | ) |
|
| 8 |
|
|
| (6 | ) |
|
| 1 |
|
|
| (7 | ) |
Other general and administration |
| 60 |
|
|
| 59 |
|
|
| 1 |
|
|
| 57 |
|
|
| 3 |
|
|
| 117 |
|
|
| 114 |
|
|
| 3 |
|
Total general and administration expense |
| 534 |
|
|
| 493 |
|
|
| 41 |
|
|
| 529 |
|
|
| 5 |
|
|
| 1,063 |
|
|
| 988 |
|
|
| 75 |
|
Amortization of intangible assets |
| 39 |
|
|
| 37 |
|
|
| 2 |
|
|
| 38 |
|
|
| 1 |
|
|
| 77 |
|
|
| 74 |
|
|
| 3 |
|
Total operating expense | $ | 3,005 |
|
| $ | 2,848 |
|
| $ | 157 |
|
| $ | 3,035 |
|
| $ | (30 | ) |
| $ | 6,040 |
|
| $ | 5,653 |
|
| $ | 387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
Employee compensation and benefits expense decreased $77 million from the first quarter of 2024, reflecting lower incentive compensation driven by lower performance fees and higher seasonal payroll taxes in the prior quarter, partially offset by the impact of higher operating income.
9
SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
| ||||||||||||||
| Ended |
|
|
|
|
| Ended |
|
|
|
|
| Ended |
|
|
|
| ||||||||||||||
| June 30, |
|
|
|
|
| March 31, |
|
|
|
|
| June 30, |
|
|
|
| ||||||||||||||
(in millions), (unaudited) | 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| ||||||||
Nonoperating income (expense), GAAP basis | $ | 214 |
|
| $ | 251 |
|
| $ | (37 | ) |
| $ | 220 |
|
| $ | (6 | ) |
| $ | 434 |
|
| $ | 367 |
|
| $ | 67 |
|
Less: Net income (loss) attributable to |
| 42 |
|
|
| 57 |
|
|
| (15 | ) |
|
| 50 |
|
|
| (8 | ) |
|
| 92 |
|
|
| 69 |
|
|
| 23 |
|
Nonoperating income (expense), net of NCI |
| 172 |
|
|
| 194 |
|
|
| (22 | ) |
|
| 170 |
|
|
| 2 |
|
|
| 342 |
|
|
| 298 |
|
|
| 44 |
|
Less: Hedge gain (loss) on deferred cash |
| 7 |
|
|
| 16 |
|
|
| (9 | ) |
|
| 31 |
|
|
| (24 | ) |
|
| 38 |
|
|
| 33 |
|
|
| 5 |
|
Nonoperating income (expense), net of NCI, as | $ | 165 |
|
| $ | 178 |
|
| $ | (13 | ) |
| $ | 139 |
|
| $ | 26 |
|
| $ | 304 |
|
| $ | 265 |
|
| $ | 39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
| ||||||||||||||
| Ended |
|
|
|
|
| Ended |
|
|
|
|
| Ended |
|
|
|
| ||||||||||||||
| June 30, |
|
|
|
|
| March 31, |
|
|
|
|
| June 30, |
|
|
|
| ||||||||||||||
(in millions), (unaudited) | 2024 |
|
| 2023 |
|
| Change |
|
| 2024 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| ||||||||
Net gain (loss) on investments, net of NCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Private equity | $ | 15 |
|
| $ | 151 |
|
| $ | (136 | ) |
| $ | 8 |
|
| $ | 7 |
|
| $ | 23 |
|
| $ | 190 |
|
| $ | (167 | ) |
Real assets |
| 9 |
|
|
| 2 |
|
|
| 7 |
|
|
| (3 | ) |
|
| 12 |
|
|
| 6 |
|
|
| 8 |
|
|
| (2 | ) |
Other alternatives(3) |
| 10 |
|
|
| 4 |
|
|
| 6 |
|
|
| 14 |
|
|
| (4 | ) |
|
| 24 |
|
|
| 10 |
|
|
| 14 |
|
Other investments(4) |
| 34 |
|
|
| (7 | ) |
|
| 41 |
|
|
| 31 |
|
|
| 3 |
|
|
| 65 |
|
|
| 5 |
|
|
| 60 |
|
Hedge gain (loss) on deferred cash |
| 7 |
|
|
| 16 |
|
|
| (9 | ) |
|
| 31 |
|
|
| (24 | ) |
|
| 38 |
|
|
| 33 |
|
|
| 5 |
|
Subtotal |
| 75 |
|
|
| 166 |
|
|
| (91 | ) |
|
| 81 |
|
|
| (6 | ) |
|
| 156 |
|
|
| 246 |
|
|
| (90 | ) |
Other income/gain (expense/loss)(5) |
| 45 |
|
|
| 8 |
|
|
| 37 |
|
|
| 40 |
|
|
| 5 |
|
|
| 85 |
|
|
| 5 |
|
|
| 80 |
|
Total net gain (loss) on investments, net of NCI |
| 120 |
|
|
| 174 |
|
|
| (54 | ) |
|
| 121 |
|
|
| (1 | ) |
|
| 241 |
|
|
| 251 |
|
|
| (10 | ) |
Interest and dividend income |
| 178 |
|
|
| 89 |
|
|
| 89 |
|
|
| 141 |
|
|
| 37 |
|
|
| 319 |
|
|
| 175 |
|
|
| 144 |
|
Interest expense |
| (126 | ) |
|
| (69 | ) |
|
| (57 | ) |
|
| (92 | ) |
|
| (34 | ) |
|
| (218 | ) |
|
| (128 | ) |
|
| (90 | ) |
Net interest income (expense) |
| 52 |
|
|
| 20 |
|
|
| 32 |
|
|
| 49 |
|
|
| 3 |
|
|
| 101 |
|
|
| 47 |
|
|
| 54 |
|
Nonoperating income (expense), net of NCI |
| 172 |
|
|
| 194 |
|
|
| (22 | ) |
|
| 170 |
|
|
| 2 |
|
|
| 342 |
|
|
| 298 |
|
|
| 44 |
|
Less: Hedge gain (loss) on deferred cash |
| 7 |
|
|
| 16 |
|
|
| (9 | ) |
|
| 31 |
|
|
| (24 | ) |
|
| 38 |
|
|
| 33 |
|
|
| 5 |
|
Nonoperating income (expense), net of NCI, as | $ | 165 |
|
| $ | 178 |
|
| $ | (13 | ) |
| $ | 139 |
|
| $ | 26 |
|
| $ | 304 |
|
| $ | 265 |
|
| $ | 39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
summary of INCOME TAX EXPENSE
| Three Months |
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
| |||||||||||||||
| Ended |
|
|
|
| Ended |
|
|
|
|
| Ended |
|
|
|
| |||||||||||||||
| June 30, |
|
|
|
| March 31, |
|
|
|
|
| June 30, |
|
|
|
| |||||||||||||||
(in millions), (unaudited) | 2024 |
|
| 2023 |
|
| Change |
| 2024 |
|
| Change |
|
| 2024 |
|
| 2023 |
|
| Change |
| |||||||||
Income tax expense | $ | 477 |
|
| $ | 443 |
|
| $ | 34 |
|
| $ | 290 |
|
| $ | 187 |
|
| $ | 767 |
|
| $ | 828 |
|
| $ | (61 | ) |
Effective tax rate |
| 24.2 | % |
|
| 24.5 | % |
| (30) bps |
|
|
| 15.6 | % |
| 860 bps |
|
|
| 20.0 | % |
|
| 24.7 | % |
| (470) bps |
|
Highlights
10
RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED | |||||||||||||||||||||
|
| Three Months Ended |
|
| Six Months Ended |
|
| ||||||||||||||
|
| June 30, |
|
| March 31, |
|
| June 30, |
|
| |||||||||||
(in millions), (unaudited) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2024 |
|
| 2023 |
|
| |||||
Operating income, GAAP basis |
| $ | 1,800 |
|
| $ | 1,615 |
|
| $ | 1,693 |
|
| $ | 3,493 |
|
| $ | 3,053 |
|
|
Non-GAAP expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Compensation expense related to appreciation (depreciation) |
|
| 9 |
|
|
| 12 |
|
|
| 27 |
|
|
| 36 |
|
|
| 32 |
|
|
Amortization of intangible assets (b) |
|
| 39 |
|
|
| 37 |
|
|
| 38 |
|
|
| 77 |
|
|
| 74 |
|
|
Acquisition-related compensation costs (b) |
|
| 19 |
|
|
| 4 |
|
|
| 2 |
|
|
| 21 |
|
|
| 9 |
|
|
Acquisition-related transaction costs (b)(1) |
|
| 13 |
|
|
| 3 |
|
|
| 22 |
|
|
| 35 |
|
|
| 3 |
|
|
Contingent consideration fair value adjustments (b) |
|
| 1 |
|
|
| 1 |
|
|
| (7 | ) |
|
| (6 | ) |
|
| 1 |
|
|
Lease costs - New York (c) |
|
| - |
|
|
| 3 |
|
|
| - |
|
|
| - |
|
|
| 14 |
|
|
Operating income, as adjusted (1) |
| $ | 1,881 |
|
| $ | 1,675 |
|
| $ | 1,775 |
|
| $ | 3,656 |
|
| $ | 3,186 |
|
|
Revenue, GAAP basis |
| $ | 4,805 |
|
| $ | 4,463 |
|
| $ | 4,728 |
|
| $ | 9,533 |
|
| $ | 8,706 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Distribution fees |
|
| (318 | ) |
|
| (319 | ) |
|
| (310 | ) |
|
| (628 | ) |
|
| (638 | ) |
|
Investment advisory fees |
|
| (221 | ) |
|
| (199 | ) |
|
| (208 | ) |
|
| (429 | ) |
|
| (385 | ) |
|
Revenue used for operating margin measurement |
| $ | 4,266 |
|
| $ | 3,945 |
|
| $ | 4,210 |
|
| $ | 8,476 |
|
| $ | 7,683 |
|
|
Operating margin, GAAP basis |
|
| 37.5 | % |
|
| 36.2 | % |
|
| 35.8 | % |
|
| 36.6 | % |
|
| 35.1 | % |
|
Operating margin, as adjusted (1) |
|
| 44.1 | % |
|
| 42.5 | % |
|
| 42.2 | % |
|
| 43.1 | % |
|
| 41.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See note (1) to the condensed consolidated statements of income and supplemental information on pages 12 and 13 for more information on as adjusted items.
RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED | |||||||||||||||||||||
|
| Three Months Ended |
|
| Six Months Ended |
|
| ||||||||||||||
|
| June 30, |
|
| March 31, |
|
| June 30, |
|
| |||||||||||
(in millions), (unaudited) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2024 |
|
| 2023 |
|
| |||||
Nonoperating income (expense), GAAP basis |
| $ | 214 |
|
| $ | 251 |
|
| $ | 220 |
|
| $ | 434 |
|
| $ | 367 |
|
|
Less: Net income (loss) attributable to NCI |
|
| 42 |
|
|
| 57 |
|
|
| 50 |
|
|
| 92 |
|
|
| 69 |
|
|
Nonoperating income (expense), net of NCI |
|
| 172 |
|
|
| 194 |
|
|
| 170 |
|
|
| 342 |
|
|
| 298 |
|
|
Less: Hedge gain (loss) on deferred cash compensation |
|
| 7 |
|
|
| 16 |
|
|
| 31 |
|
|
| 38 |
|
|
| 33 |
|
|
Nonoperating income (expense), less net income (loss) |
| $ | 165 |
|
| $ | 178 |
|
| $ | 139 |
|
| $ | 304 |
|
| $ | 265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 12 and 13 for more information on as adjusted items.
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED | |||||||||||||||||||||
|
| Three Months Ended |
|
| Six Months Ended |
|
| ||||||||||||||
|
| June 30, |
|
| March 31, |
|
| June 30, |
|
| |||||||||||
(in millions, except per share data), (unaudited) |
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2024 |
|
| 2023 |
|
| |||||
Net income attributable to BlackRock, Inc., GAAP basis |
| $ | 1,495 |
|
| $ | 1,366 |
|
| $ | 1,573 |
|
| $ | 3,068 |
|
| $ | 2,523 |
|
|
Non-GAAP adjustments(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net impact of hedged deferred cash compensation plans (a) |
|
| 2 |
|
|
| (3 | ) |
|
| (3 | ) |
|
| (1 | ) |
|
| (1 | ) |
|
Amortization of intangible assets (b) |
|
| 29 |
|
|
| 28 |
|
|
| 28 |
|
|
| 57 |
|
|
| 56 |
|
|
Acquisition-related compensation costs (b) |
|
| 13 |
|
|
| 3 |
|
|
| 2 |
|
|
| 15 |
|
|
| 7 |
|
|
Acquisition-related transaction costs (b) |
|
| 10 |
|
|
| 2 |
|
|
| 15 |
|
|
| 25 |
|
|
| 2 |
|
|
Contingent consideration fair value adjustments (b) |
|
| 1 |
|
|
| 1 |
|
|
| (5 | ) |
|
| (4 | ) |
|
| 1 |
|
|
Lease costs - New York (c) |
|
| - |
|
|
| 2 |
|
|
| - |
|
|
| - |
|
|
| 11 |
|
|
Income tax matters |
|
| - |
|
|
| - |
|
|
| (137 | ) |
|
| (137 | ) |
|
| - |
|
|
Net income attributable to BlackRock, Inc., as adjusted (3) |
| $ | 1,550 |
|
| $ | 1,399 |
|
| $ | 1,473 |
|
| $ | 3,023 |
|
| $ | 2,599 |
|
|
Diluted weighted-average common shares outstanding |
|
| 149.7 |
|
|
| 150.7 |
|
|
| 150.1 |
|
|
| 149.9 |
|
|
| 151.0 |
|
|
Diluted earnings per common share, GAAP basis |
| $ | 9.99 |
|
| $ | 9.06 |
|
| $ | 10.48 |
|
| $ | 20.47 |
|
| $ | 16.70 |
|
|
Diluted earnings per common share, as adjusted (3) |
| $ | 10.36 |
|
| $ | 9.28 |
|
| $ | 9.81 |
|
| $ | 20.17 |
|
| $ | 17.21 |
|
|
See note (3) to the condensed consolidated statements of income and supplemental information on page 13 for more information on as adjusted items.
11
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
12
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amount for income tax matters in the first quarter of 2024 includes a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization.
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.
(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.
13
FORWARD-LOOKING STATEMENTS
This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of AUM; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of future acquisitions or divestitures, including the acquisitions of Preqin and Global Infrastructure Management, LLC (together, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the Transactions, including the possibility that the Transactions do not close, the failure to satisfy the closing conditions, the possibility that expected synergies and value creation from either of the Transactions will not be realized, or will not be realized within the expected time period, and impacts to business and operational relationships related to disruptions from the Transactions; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock's business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of the Company; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.
14
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of June 30, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of May 31, 2024. The performance data does not include accounts terminated prior to June 30, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.
Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of June 30, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.
15