Exhibit 99.1
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INVESTOR RELATIONS: Caroline Rodda 212.810.3442 | MEDIA RELATIONS: Brian Beades 212.810.5596 |
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BlackRock Reports Second Quarter 2022 Diluted EPS of $7.06, or $7.36 as adjusted | |
New York, July 15, 2022 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2022. |
| Q2 |
|
| Q2 |
| ||
(in millions, except per share data) | 2022 |
|
| 2021 |
| ||
AUM | $ | 8,487,410 |
|
| $ | 9,495,993 |
|
% change |
| (11 | )% |
|
|
|
|
Average AUM | $ | 9,022,278 |
|
| $ | 9,317,092 |
|
% change |
| (3 | )% |
|
|
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|
Total net flows | $ | 89,573 |
|
| $ | 80,960 |
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GAAP basis: |
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Revenue | $ | 4,526 |
|
| $ | 4,820 |
|
% change |
| (6 | )% |
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Operating income | $ | 1,668 |
|
| $ | 1,931 |
|
% change |
| (14 | )% |
|
|
|
|
Operating margin |
| 36.9 | % |
|
| 40.1 | % |
Net income(1) | $ | 1,077 |
|
| $ | 1,378 |
|
% change |
| (22 | )% |
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Diluted EPS | $ | 7.06 |
|
| $ | 8.92 |
|
% change |
| (21 | )% |
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Weighted-average diluted shares |
| 152.5 |
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|
| 154.4 |
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% change |
| (1 | )% |
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As Adjusted: |
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Operating income(2) | $ | 1,727 |
|
| $ | 2,016 |
|
% change |
| (14 | )% |
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Operating margin(2) |
| 43.7 | % |
|
| 46.9 | % |
Net income(1) (2) | $ | 1,122 |
|
| $ | 1,614 |
|
% change |
| (30 | )% |
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Diluted EPS(2) | $ | 7.36 |
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| $ | 10.45 |
|
% change |
| (30 | )% |
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(1) | Net income represents net income attributable to BlackRock, Inc. |
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| Q2 | YTD | ||||||
(in billions) | 2022 | 2022 | ||||||||
Long-term net flows: | $ | 69 |
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| $ | 182 |
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By region: | ||||||||||
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| Americas | $ | 18 |
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| $ | 46 |
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| |
| EMEA |
| 15 |
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|
| 60 |
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| |
| APAC |
| 36 |
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|
| 76 |
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By client type: | ||||||||||
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| Retail: | $ | (10 | ) |
| $ | - |
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| |
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| US |
| (7 | ) |
|
| 1 |
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| International |
| (3 | ) |
|
| (1 | ) |
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| ETFs: | $ | 52 |
|
| $ | 108 |
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| |
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| Core equity |
| 15 |
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|
| 48 |
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| Strategic |
| 36 |
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|
| 50 |
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| Precision |
| 1 |
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|
| 10 |
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| Institutional: | $ | 26 |
|
| $ | 74 |
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| |
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| Active |
| 5 |
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|
| 22 |
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| Index |
| 21 |
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|
| 52 |
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Cash management net flows | $ | 21 |
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| $ | (6 | ) |
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Advisory net flows | $ | - |
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| $ | (1 | ) |
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Total net flows | $ | 90 |
|
| $ | 176 |
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1
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| Q2 2022 |
| |
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| Q2 2022 |
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| Base fees (1) |
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| Base fees (1) |
| June 30, 2022 |
| and securities |
| |||
| Q2 2022 |
| June 30, 2022 |
| and securities |
| AUM |
| lending revenue |
| |||||
(in millions), (unaudited) | Net flows |
| AUM |
| lending revenue |
| % of Total |
| % of Total |
| |||||
RESULTS BY CLIENT TYPE |
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Retail | $ | (9,973 | ) | $ | 863,425 |
| $ | 1,139 |
|
| 10 | % |
| 31 | % |
ETFs |
| 52,103 |
|
| 2,784,296 |
|
| 1,436 |
|
| 33 | % |
| 39 | % |
Institutional: |
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Active |
| 5,275 |
|
| 1,510,862 |
|
| 636 |
|
| 18 | % |
| 17 | % |
Index |
| 21,208 |
|
| 2,580,603 |
|
| 245 |
|
| 30 | % |
| 7 | % |
Total institutional |
| 26,483 |
|
| 4,091,465 |
|
| 881 |
|
| 48 | % |
| 24 | % |
Long-term |
| 68,613 |
|
| 7,739,186 |
|
| 3,456 |
|
| 91 | % |
| 94 | % |
Cash management |
| 21,218 |
|
| 739,457 |
|
| 232 |
|
| 9 | % |
| 6 | % |
Advisory |
| (258 | ) |
| 8,767 |
|
| - |
|
| - |
|
| - |
|
Total | $ | 89,573 |
| $ | 8,487,410 |
| $ | 3,688 |
|
| 100 | % |
| 100 | % |
|
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RESULTS BY INVESTMENT STYLE |
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Active | $ | (10,339 | ) | $ | 2,210,648 |
| $ | 1,727 |
|
| 26 | % |
| 47 | % |
Index and ETFs |
| 78,952 |
|
| 5,528,538 |
|
| 1,729 |
|
| 65 | % |
| 47 | % |
Long-term |
| 68,613 |
|
| 7,739,186 |
|
| 3,456 |
|
| 91 | % |
| 94 | % |
Cash management |
| 21,218 |
|
| 739,457 |
|
| 232 |
|
| 9 | % |
| 6 | % |
Advisory |
| (258 | ) |
| 8,767 |
|
| - |
|
| - |
|
| - |
|
Total | $ | 89,573 |
| $ | 8,487,410 |
| $ | 3,688 |
|
| 100 | % |
| 100 | % |
|
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RESULTS BY PRODUCT TYPE |
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Equity | $ | 28,642 |
| $ | 4,345,120 |
| $ | 1,839 |
|
| 51 | % |
| 50 | % |
Fixed income |
| 36,126 |
|
| 2,439,844 |
|
| 879 |
|
| 29 | % |
| 24 | % |
Multi-asset |
| 1,380 |
|
| 678,465 |
|
| 331 |
|
| 8 | % |
| 9 | % |
Alternatives |
| 2,465 |
|
| 275,757 |
|
| 407 |
|
| 3 | % |
| 11 | % |
Long-term |
| 68,613 |
|
| 7,739,186 |
|
| 3,456 |
|
| 91 | % |
| 94 | % |
Cash management |
| 21,218 |
|
| 739,457 |
|
| 232 |
|
| 9 | % |
| 6 | % |
Advisory |
| (258 | ) |
| 8,767 |
|
| - |
|
| - |
|
| - |
|
Total | $ | 89,573 |
| $ | 8,487,410 |
| $ | 3,688 |
|
| 100 | % |
| 100 | % |
|
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INVESTMENT PERFORMANCE AT JUNE 30, 2022(1)
q
| One-year period |
| Three-year period |
| Five-year period |
| |||
Fixed income: |
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Actively managed AUM above benchmark or peer median |
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Taxable | 49% |
| 83% |
| 89% |
| |||
Tax-exempt | 27% |
| 33% |
| 34% |
| |||
Index AUM within or above applicable tolerance | 89% |
| 93% |
| 94% |
| |||
Equity: |
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Actively managed AUM above benchmark or peer median |
|
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Fundamental | 35% |
| 71% |
| 83% |
| |||
Systematic | 59% |
| 61% |
| 81% |
| |||
Index AUM within or above applicable tolerance | 95% |
| 95% |
| 95% |
|
(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. |
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Friday, July 15, 2022 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (866) 409-1555, or from outside the United States, (313) 209-4906, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 9540818). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.
Both the teleconference and webcast will be available for replay by 11:30 a.m. (Eastern Time) on Friday, July 15, 2022 and ending at midnight on Friday, July 29, 2022. To access the replay of the teleconference, callers from the United States should dial (888) 203-1112 and callers from outside the United States should dial (719) 457-0820 and enter the Conference ID Number 9540818. To access 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 | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock.
2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except shares and per share data), (unaudited)
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| Three Months |
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Three Months Ended |
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| Ended |
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| June 30, |
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| March 31, |
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| 2022 |
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| 2021 |
|
| Change |
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| 2022 |
|
| Change |
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Revenue |
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Investment advisory, administration fees and securities lending revenue: |
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Investment advisory and administration fees | $ | 3,528 |
|
| $ | 3,617 |
|
| $ | (89 | ) |
| $ | 3,695 |
|
| $ | (167 | ) |
Securities lending revenue |
| 160 |
|
|
| 140 |
|
|
| 20 |
|
|
| 138 |
|
|
| 22 |
|
Total investment advisory, administration fees and securities lending revenue |
| 3,688 |
|
|
| 3,757 |
|
|
| (69 | ) |
|
| 3,833 |
|
|
| (145 | ) |
Investment advisory performance fees |
| 106 |
|
|
| 340 |
|
|
| (234 | ) |
|
| 98 |
|
|
| 8 |
|
Technology services revenue |
| 332 |
|
|
| 316 |
|
|
| 16 |
|
|
| 341 |
|
|
| (9 | ) |
Distribution fees |
| 361 |
|
|
| 369 |
|
|
| (8 | ) |
|
| 381 |
|
|
| (20 | ) |
Advisory and other revenue |
| 39 |
|
|
| 38 |
|
|
| 1 |
|
|
| 46 |
|
|
| (7 | ) |
Total revenue |
| 4,526 |
|
|
| 4,820 |
|
|
| (294 | ) |
|
| 4,699 |
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|
| (173 | ) |
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Expense |
|
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Employee compensation and benefits |
| 1,414 |
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|
| 1,548 |
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|
| (134 | ) |
|
| 1,498 |
|
|
| (84 | ) |
Distribution and servicing costs |
| 572 |
|
|
| 523 |
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|
| 49 |
|
|
| 574 |
|
|
| (2 | ) |
Direct fund expense |
| 304 |
|
|
| 320 |
|
|
| (16 | ) |
|
| 329 |
|
|
| (25 | ) |
General and administration expense |
| 530 |
|
|
| 461 |
|
|
| 69 |
|
|
| 496 |
|
|
| 34 |
|
Amortization of intangible assets |
| 38 |
|
|
| 37 |
|
|
| 1 |
|
|
| 38 |
|
|
| - |
|
Total expense |
| 2,858 |
|
|
| 2,889 |
|
|
| (31 | ) |
|
| 2,935 |
|
|
| (77 | ) |
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Operating income |
| 1,668 |
|
|
| 1,931 |
|
|
| (263 | ) |
|
| 1,764 |
|
|
| (96 | ) |
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Nonoperating income (expense) |
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Net gain (loss) on investments |
| (314 | ) |
|
| 314 |
|
|
| (628 | ) |
|
| (102 | ) |
|
| (212 | ) |
Interest and dividend income |
| 21 |
|
|
| 8 |
|
|
| 13 |
|
|
| 18 |
|
|
| 3 |
|
Interest expense |
| (54 | ) |
|
| (52 | ) |
|
| (2 | ) |
|
| (54 | ) |
|
| - |
|
Total nonoperating income (expense) |
| (347 | ) |
|
| 270 |
|
|
| (617 | ) |
|
| (138 | ) |
|
| (209 | ) |
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Income before income taxes |
| 1,321 |
|
|
| 2,201 |
|
|
| (880 | ) |
|
| 1,626 |
|
|
| (305 | ) |
Income tax expense |
| 358 |
|
|
| 654 |
|
|
| (296 | ) |
|
| 263 |
|
|
| 95 |
|
Net income |
| 963 |
|
|
| 1,547 |
|
|
| (584 | ) |
|
| 1,363 |
|
|
| (400 | ) |
Less: |
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Net income (loss) attributable to noncontrolling interests |
| (114 | ) |
|
| 169 |
|
|
| (283 | ) |
|
| (73 | ) |
|
| (41 | ) |
Net income attributable to BlackRock, Inc. | $ | 1,077 |
|
| $ | 1,378 |
|
| $ | (301 | ) |
| $ | 1,436 |
|
| $ | (359 | ) |
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Weighted-average common shares outstanding |
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Basic |
| 151,292,580 |
|
|
| 152,443,039 |
|
|
| (1,150,459 | ) |
|
| 151,732,845 |
|
|
| (440,265 | ) |
Diluted |
| 152,452,320 |
|
|
| 154,417,581 |
|
|
| (1,965,261 | ) |
|
| 153,530,395 |
|
|
| (1,078,075 | ) |
Earnings per share attributable to BlackRock, Inc. common stockholders |
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Basic | $ | 7.12 |
|
| $ | 9.04 |
|
| $ | (1.92 | ) |
| $ | 9.46 |
|
| $ | (2.34 | ) |
Diluted | $ | 7.06 |
|
| $ | 8.92 |
|
| $ | (1.86 | ) |
| $ | 9.35 |
|
| $ | (2.29 | ) |
Cash dividends declared and paid per share | $ | 4.88 |
|
| $ | 4.13 |
|
| $ | 0.75 |
|
| $ | 4.88 |
|
| $ | - |
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Supplemental information: |
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AUM (end of period) | $ | 8,487,410 |
|
| $ | 9,495,993 |
|
| $ | (1,008,583 | ) |
| $ | 9,569,513 |
|
| $ | (1,082,103 | ) |
Shares outstanding (end of period) |
| 150,966,457 |
|
|
| 152,298,784 |
|
|
| (1,332,327 | ) |
|
| 151,725,643 |
|
|
| (759,186 | ) |
GAAP: |
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|
Operating margin |
| 36.9 | % |
|
| 40.1 | % |
|
| (320 | ) bps |
|
| 37.5 | % |
|
| (60 | ) bps |
Effective tax rate |
| 24.9 | % |
|
| 32.2 | % |
|
| (730 | ) bps |
|
| 15.5 | % |
|
| 940 | bps |
As adjusted: |
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (1) | $ | 1,727 |
|
| $ | 2,016 |
|
| $ | (289 | ) |
| $ | 1,822 |
|
| $ | (95 | ) |
Operating margin (1) |
| 43.7 | % |
|
| 46.9 | % |
|
| (320 | ) bps |
|
| 44.2 | % |
|
| (50 | ) bps |
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests | $ | (233 | ) |
| $ | 101 |
|
| $ | (334 | ) |
| $ | (65 | ) |
| $ | (168 | ) |
Net income attributable to BlackRock, Inc. (2) | $ | 1,122 |
|
| $ | 1,614 |
|
| $ | (492 | ) |
| $ | 1,462 |
|
| $ | (340 | ) |
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) | $ | 7.36 |
|
| $ | 10.45 |
|
| $ | (3.09 | ) |
| $ | 9.52 |
|
| $ | (2.16 | ) |
Effective tax rate |
| 24.9 | % |
|
| 23.8 | % |
|
| 110 | bps |
|
| 16.8 | % |
|
| 810 | bps |
|
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|
|
|
|
|
|
|
|
See pages 11 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.
3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except shares and per share data), (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended |
|
|
|
|
| |||||
| June 30, |
|
|
|
|
| |||||
| 2022 |
|
| 2021 |
|
| Change |
| |||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending revenue: |
|
|
|
|
|
|
|
|
|
|
|
Investment advisory and administration fees | $ | 7,223 |
|
| $ | 7,082 |
|
| $ | 141 |
|
Securities lending revenue |
| 298 |
|
|
| 267 |
|
|
| 31 |
|
Total investment advisory, administration fees and securities lending revenue |
| 7,521 |
|
|
| 7,349 |
|
|
| 172 |
|
Investment advisory performance fees |
| 204 |
|
|
| 469 |
|
|
| (265 | ) |
Technology services revenue |
| 673 |
|
|
| 622 |
|
|
| 51 |
|
Distribution fees |
| 742 |
|
|
| 709 |
|
|
| 33 |
|
Advisory and other revenue |
| 85 |
|
|
| 69 |
|
|
| 16 |
|
Total revenue |
| 9,225 |
|
|
| 9,218 |
|
|
| 7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense |
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
| 2,912 |
|
|
| 2,957 |
|
|
| (45 | ) |
Distribution and servicing costs |
| 1,146 |
|
|
| 1,028 |
|
|
| 118 |
|
Direct fund expense |
| 633 |
|
|
| 640 |
|
|
| (7 | ) |
General and administration expense |
| 1,026 |
|
|
| 1,046 |
|
|
| (20 | ) |
Amortization of intangible assets |
| 76 |
|
|
| 71 |
|
|
| 5 |
|
Total expense |
| 5,793 |
|
|
| 5,742 |
|
|
| 51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
| 3,432 |
|
|
| 3,476 |
|
|
| (44 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
| (416 | ) |
|
| 396 |
|
|
| (812 | ) |
Interest and dividend income |
| 39 |
|
|
| 27 |
|
|
| 12 |
|
Interest expense |
| (108 | ) |
|
| (107 | ) |
|
| (1 | ) |
Total nonoperating income (expense) |
| (485 | ) |
|
| 316 |
|
|
| (801 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
| 2,947 |
|
|
| 3,792 |
|
|
| (845 | ) |
Income tax expense |
| 621 |
|
|
| 972 |
|
|
| (351 | ) |
Net income |
| 2,326 |
|
|
| 2,820 |
|
|
| (494 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
| (187 | ) |
|
| 243 |
|
|
| (430 | ) |
Net income attributable to BlackRock, Inc. | $ | 2,513 |
|
| $ | 2,577 |
|
| $ | (64 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 151,511,496 |
|
|
| 152,504,902 |
|
|
| (993,406 | ) |
Diluted |
| 152,990,147 |
|
|
| 154,359,353 |
|
|
| (1,369,206 | ) |
Earnings per share attributable to BlackRock, Inc. common stockholders |
|
|
|
|
|
|
|
|
|
|
|
Basic | $ | 16.59 |
|
| $ | 16.90 |
|
| $ | (0.31 | ) |
Diluted | $ | 16.43 |
|
| $ | 16.69 |
|
| $ | (0.26 | ) |
Cash dividends declared and paid per share | $ | 9.76 |
|
| $ | 8.26 |
|
| $ | 1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUM (end of period) | $ | 8,487,410 |
|
| $ | 9,495,993 |
|
| $ | (1,008,583 | ) |
Shares outstanding (end of period) |
| 150,966,457 |
|
|
| 152,298,784 |
|
|
| (1,332,327 | ) |
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
| 37.2 | % |
|
| 37.7 | % |
|
| (50 | ) bps |
Effective tax rate |
| 19.8 | % |
|
| 27.4 | % |
|
| (760 | ) bps |
As adjusted: |
|
|
|
|
|
|
|
|
|
|
|
Operating income (1) | $ | 3,549 |
|
| $ | 3,615 |
|
| $ | (66 | ) |
Operating margin (1) |
| 43.9 | % |
|
| 46.4 | % |
|
| (250 | ) bps |
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests | $ | (298 | ) |
| $ | 73 |
|
| $ | (371 | ) |
Net income attributable to BlackRock, Inc. (2) | $ | 2,584 |
|
| $ | 2,854 |
|
| $ | (270 | ) |
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) | $ | 16.89 |
|
| $ | 18.49 |
|
| $ | (1.60 | ) |
Effective tax rate |
| 20.5 | % |
|
| 22.6 | % |
|
| (210 | ) bps |
|
|
|
|
|
|
|
|
|
|
|
|
See pages 11 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include new adjustments. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Client Type and Product Type |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| March 31, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2022 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 446,043 |
|
| $ | (872 | ) |
| $ | (66,388 | ) |
| $ | (7,557 | ) |
| $ | 371,226 |
|
| $ | 409,171 |
|
Fixed income |
| 343,712 |
|
|
| (7,563 | ) |
|
| (18,397 | ) |
|
| (3,892 | ) |
|
| 313,860 |
|
|
| 328,816 |
|
Multi-asset |
| 149,480 |
|
|
| (3,000 | ) |
|
| (16,394 | ) |
|
| (944 | ) |
|
| 129,142 |
|
|
| 139,662 |
|
Alternatives |
| 49,888 |
|
|
| 1,462 |
|
|
| (1,681 | ) |
|
| (472 | ) |
|
| 49,197 |
|
|
| 49,900 |
|
Retail subtotal |
| 989,123 |
|
|
| (9,973 | ) |
|
| (102,860 | ) |
|
| (12,865 | ) |
|
| 863,425 |
|
|
| 927,549 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,350,421 |
|
|
| 23,328 |
|
|
| (348,798 | ) |
|
| (14,608 | ) |
|
| 2,010,343 |
|
|
| 2,178,149 |
|
Fixed income |
| 712,767 |
|
|
| 30,739 |
|
|
| (41,926 | ) |
|
| (5,692 | ) |
|
| 695,888 |
|
|
| 702,485 |
|
Multi-asset |
| 8,716 |
|
|
| 161 |
|
|
| (942 | ) |
|
| (67 | ) |
|
| 7,868 |
|
|
| 8,246 |
|
Alternatives |
| 78,592 |
|
|
| (2,125 | ) |
|
| (6,159 | ) |
|
| (111 | ) |
|
| 70,197 |
|
|
| 75,187 |
|
ETFs subtotal |
| 3,150,496 |
|
|
| 52,103 |
|
|
| (397,825 | ) |
|
| (20,478 | ) |
|
| 2,784,296 |
|
|
| 2,964,067 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 188,822 |
|
|
| 3,885 |
|
|
| (23,962 | ) |
|
| (5,048 | ) |
|
| 163,697 |
|
|
| 176,618 |
|
Fixed income |
| 718,225 |
|
|
| (6,774 | ) |
|
| (40,123 | ) |
|
| (9,476 | ) |
|
| 661,852 |
|
|
| 687,561 |
|
Multi-asset |
| 617,843 |
|
|
| 4,866 |
|
|
| (72,880 | ) |
|
| (15,670 | ) |
|
| 534,159 |
|
|
| 575,970 |
|
Alternatives |
| 151,277 |
|
|
| 3,298 |
|
|
| (805 | ) |
|
| (2,616 | ) |
|
| 151,154 |
|
|
| 150,957 |
|
Active subtotal |
| 1,676,167 |
|
|
| 5,275 |
|
|
| (137,770 | ) |
|
| (32,810 | ) |
|
| 1,510,862 |
|
|
| 1,591,106 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,133,758 |
|
|
| 2,301 |
|
|
| (287,363 | ) |
|
| (48,842 | ) |
|
| 1,799,854 |
|
|
| 1,969,660 |
|
Fixed income |
| 871,167 |
|
|
| 19,724 |
|
|
| (73,665 | ) |
|
| (48,982 | ) |
|
| 768,244 |
|
|
| 813,260 |
|
Multi-asset |
| 9,143 |
|
|
| (647 | ) |
|
| (937 | ) |
|
| (263 | ) |
|
| 7,296 |
|
|
| 7,863 |
|
Alternatives |
| 5,696 |
|
|
| (170 | ) |
|
| (99 | ) |
|
| (218 | ) |
|
| 5,209 |
|
|
| 5,600 |
|
Index subtotal |
| 3,019,764 |
|
|
| 21,208 |
|
|
| (362,064 | ) |
|
| (98,305 | ) |
|
| 2,580,603 |
|
|
| 2,796,383 |
|
Institutional subtotal |
| 4,695,931 |
|
|
| 26,483 |
|
|
| (499,834 | ) |
|
| (131,115 | ) |
|
| 4,091,465 |
|
|
| 4,387,489 |
|
Long-term |
| 8,835,550 |
|
|
| 68,613 |
|
|
| (1,000,519 | ) |
|
| (164,458 | ) |
|
| 7,739,186 |
|
|
| 8,279,105 |
|
Cash management |
| 724,939 |
|
|
| 21,218 |
|
|
| (130 | ) |
|
| (6,570 | ) |
|
| 739,457 |
|
|
| 734,270 |
|
Advisory (3) |
| 9,025 |
|
|
| (258 | ) |
|
| - |
|
|
| - |
|
|
| 8,767 |
|
|
| 8,903 |
|
Total | $ | 9,569,514 |
|
| $ | 89,573 |
|
| $ | (1,000,649 | ) |
| $ | (171,028 | ) |
| $ | 8,487,410 |
|
| $ | 9,022,278 |
|
Current Quarter Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| March 31, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2022 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 472,849 |
|
| $ | (1,825 | ) |
| $ | (69,076 | ) |
| $ | (8,900 | ) |
| $ | 393,048 |
|
| $ | 434,212 |
|
Fixed income |
| 1,037,813 |
|
|
| (15,139 | ) |
|
| (56,717 | ) |
|
| (12,000 | ) |
|
| 953,957 |
|
|
| 993,668 |
|
Multi-asset |
| 767,316 |
|
|
| 1,865 |
|
|
| (89,273 | ) |
|
| (16,613 | ) |
|
| 663,295 |
|
|
| 715,624 |
|
Alternatives |
| 201,162 |
|
|
| 4,760 |
|
|
| (2,486 | ) |
|
| (3,088 | ) |
|
| 200,348 |
|
|
| 200,855 |
|
Active subtotal |
| 2,479,140 |
|
|
| (10,339 | ) |
|
| (217,552 | ) |
|
| (40,601 | ) |
|
| 2,210,648 |
|
|
| 2,344,359 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,350,421 |
|
|
| 23,328 |
|
|
| (348,798 | ) |
|
| (14,608 | ) |
|
| 2,010,343 |
|
|
| 2,178,149 |
|
Fixed income |
| 712,767 |
|
|
| 30,739 |
|
|
| (41,926 | ) |
|
| (5,692 | ) |
|
| 695,888 |
|
|
| 702,485 |
|
Multi-asset |
| 8,716 |
|
|
| 161 |
|
|
| (942 | ) |
|
| (67 | ) |
|
| 7,868 |
|
|
| 8,246 |
|
Alternatives |
| 78,592 |
|
|
| (2,125 | ) |
|
| (6,159 | ) |
|
| (111 | ) |
|
| 70,197 |
|
|
| 75,187 |
|
ETFs subtotal |
| 3,150,496 |
|
|
| 52,103 |
|
|
| (397,825 | ) |
|
| (20,478 | ) |
|
| 2,784,296 |
|
|
| 2,964,067 |
|
Non-ETF Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,295,774 |
|
|
| 7,139 |
|
|
| (308,637 | ) |
|
| (52,547 | ) |
|
| 1,941,729 |
|
|
| 2,121,237 |
|
Fixed income |
| 895,291 |
|
|
| 20,526 |
|
|
| (75,468 | ) |
|
| (50,350 | ) |
|
| 789,999 |
|
|
| 835,969 |
|
Multi-asset |
| 9,150 |
|
|
| (646 | ) |
|
| (938 | ) |
|
| (264 | ) |
|
| 7,302 |
|
|
| 7,871 |
|
Alternatives |
| 5,699 |
|
|
| (170 | ) |
|
| (99 | ) |
|
| (218 | ) |
|
| 5,212 |
|
|
| 5,602 |
|
Non-ETF Index subtotal |
| 3,205,914 |
|
|
| 26,849 |
|
|
| (385,142 | ) |
|
| (103,379 | ) |
|
| 2,744,242 |
|
|
| 2,970,679 |
|
Index and ETFs subtotal |
| 6,356,410 |
|
|
| 78,952 |
|
|
| (782,967 | ) |
|
| (123,857 | ) |
|
| 5,528,538 |
|
|
| 5,934,746 |
|
Long-term | $ | 8,835,550 |
|
| $ | 68,613 |
|
| $ | (1,000,519 | ) |
| $ | (164,458 | ) |
| $ | 7,739,186 |
|
| $ | 8,279,105 |
|
Current Quarter Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| March 31, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2022 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Equity | $ | 5,119,044 |
|
| $ | 28,642 |
|
| $ | (726,511 | ) |
| $ | (76,055 | ) |
| $ | 4,345,120 |
|
| $ | 4,733,598 |
|
Fixed income |
| 2,645,871 |
|
|
| 36,126 |
|
|
| (174,111 | ) |
|
| (68,042 | ) |
|
| 2,439,844 |
|
|
| 2,532,122 |
|
Multi-asset |
| 785,182 |
|
|
| 1,380 |
|
|
| (91,153 | ) |
|
| (16,944 | ) |
|
| 678,465 |
|
|
| 731,741 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
| 109,141 |
|
|
| 5,414 |
|
|
| (682 | ) |
|
| (1,834 | ) |
|
| 112,039 |
|
|
| 110,501 |
|
Liquid alternatives |
| 87,326 |
|
|
| (932 | ) |
|
| (1,518 | ) |
|
| (1,106 | ) |
|
| 83,770 |
|
|
| 85,574 |
|
Currency and commodities(4) |
| 88,986 |
|
|
| (2,017 | ) |
|
| (6,544 | ) |
|
| (477 | ) |
|
| 79,948 |
|
|
| 85,569 |
|
Alternatives subtotal |
| 285,453 |
|
|
| 2,465 |
|
|
| (8,744 | ) |
|
| (3,417 | ) |
|
| 275,757 |
|
|
| 281,644 |
|
Long-term | $ | 8,835,550 |
|
| $ | 68,613 |
|
| $ | (1,000,519 | ) |
| $ | (164,458 | ) |
| $ | 7,739,186 |
|
| $ | 8,279,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) | Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. |
(4) | Amounts include commodity ETFs. |
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, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 471,937 |
|
| $ | 5,329 |
|
| $ | (95,767 | ) |
| $ | (10,273 | ) |
| $ | 371,226 |
|
| $ | 426,530 |
|
Fixed income |
| 365,306 |
|
|
| (9,458 | ) |
|
| (37,149 | ) |
|
| (4,839 | ) |
|
| 313,860 |
|
|
| 341,015 |
|
Multi-asset |
| 155,461 |
|
|
| (22 | ) |
|
| (25,078 | ) |
|
| (1,219 | ) |
|
| 129,142 |
|
|
| 144,767 |
|
Alternatives |
| 47,349 |
|
|
| 4,342 |
|
|
| (1,879 | ) |
|
| (615 | ) |
|
| 49,197 |
|
|
| 49,151 |
|
Retail subtotal |
| 1,040,053 |
|
|
| 191 |
|
|
| (159,873 | ) |
|
| (16,946 | ) |
|
| 863,425 |
|
|
| 961,463 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,447,248 |
|
|
| 64,499 |
|
|
| (484,632 | ) |
|
| (16,772 | ) |
|
| 2,010,343 |
|
|
| 2,255,471 |
|
Fixed income |
| 745,373 |
|
|
| 38,889 |
|
|
| (81,054 | ) |
|
| (7,320 | ) |
|
| 695,888 |
|
|
| 713,181 |
|
Multi-asset |
| 9,119 |
|
|
| 231 |
|
|
| (1,433 | ) |
|
| (49 | ) |
|
| 7,868 |
|
|
| 8,466 |
|
Alternatives |
| 65,614 |
|
|
| 4,693 |
|
|
| 14 |
|
|
| (124 | ) |
|
| 70,197 |
|
|
| 72,087 |
|
ETFs subtotal |
| 3,267,354 |
|
|
| 108,312 |
|
|
| (567,105 | ) |
|
| (24,265 | ) |
|
| 2,784,296 |
|
|
| 3,049,205 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 199,980 |
|
|
| 5,716 |
|
|
| (35,704 | ) |
|
| (6,295 | ) |
|
| 163,697 |
|
|
| 183,162 |
|
Fixed income |
| 767,402 |
|
|
| (9,667 | ) |
|
| (83,354 | ) |
|
| (12,529 | ) |
|
| 661,852 |
|
|
| 715,059 |
|
Multi-asset |
| 642,951 |
|
|
| 18,997 |
|
|
| (108,576 | ) |
|
| (19,213 | ) |
|
| 534,159 |
|
|
| 598,329 |
|
Alternatives |
| 146,384 |
|
|
| 6,627 |
|
|
| 1,285 |
|
|
| (3,142 | ) |
|
| 151,154 |
|
|
| 150,223 |
|
Active subtotal |
| 1,756,717 |
|
|
| 21,673 |
|
|
| (226,349 | ) |
|
| (41,179 | ) |
|
| 1,510,862 |
|
|
| 1,646,773 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,223,195 |
|
|
| 29,122 |
|
|
| (388,908 | ) |
|
| (63,555 | ) |
|
| 1,799,854 |
|
|
| 2,036,631 |
|
Fixed income |
| 943,960 |
|
|
| 23,885 |
|
|
| (130,877 | ) |
|
| (68,724 | ) |
|
| 768,244 |
|
|
| 861,222 |
|
Multi-asset |
| 8,963 |
|
|
| (154 | ) |
|
| (1,135 | ) |
|
| (378 | ) |
|
| 7,296 |
|
|
| 8,173 |
|
Alternatives |
| 5,534 |
|
|
| (671 | ) |
|
| 657 |
|
|
| (311 | ) |
|
| 5,209 |
|
|
| 5,540 |
|
Index subtotal |
| 3,181,652 |
|
|
| 52,182 |
|
|
| (520,263 | ) |
|
| (132,968 | ) |
|
| 2,580,603 |
|
|
| 2,911,566 |
|
Institutional subtotal |
| 4,938,369 |
|
|
| 73,855 |
|
|
| (746,612 | ) |
|
| (174,147 | ) |
|
| 4,091,465 |
|
|
| 4,558,339 |
|
Long-term |
| 9,245,776 |
|
|
| 182,358 |
|
|
| (1,473,590 | ) |
|
| (215,358 | ) |
|
| 7,739,186 |
|
|
| 8,569,007 |
|
Cash management |
| 755,057 |
|
|
| (5,876 | ) |
|
| (759 | ) |
|
| (8,965 | ) |
|
| 739,457 |
|
|
| 735,753 |
|
Advisory (3) |
| 9,310 |
|
|
| (543 | ) |
|
| - |
|
|
| - |
|
|
| 8,767 |
|
|
| 9,012 |
|
Total | $ | 10,010,143 |
|
| $ | 175,939 |
|
| $ | (1,474,349 | ) |
| $ | (224,323 | ) |
| $ | 8,487,410 |
|
| $ | 9,313,772 |
|
Year-to-Date Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| December 31, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 507,103 |
|
| $ | 172 |
|
| $ | (102,604 | ) |
| $ | (11,623 | ) |
| $ | 393,048 |
|
| $ | 454,645 |
|
Fixed income |
| 1,107,085 |
|
|
| (20,416 | ) |
|
| (117,195 | ) |
|
| (15,517 | ) |
|
| 953,957 |
|
|
| 1,032,671 |
|
Multi-asset |
| 798,404 |
|
|
| 18,974 |
|
|
| (133,653 | ) |
|
| (20,430 | ) |
|
| 663,295 |
|
|
| 743,088 |
|
Alternatives |
| 193,733 |
|
|
| 10,969 |
|
|
| (596 | ) |
|
| (3,758 | ) |
|
| 200,348 |
|
|
| 199,373 |
|
Active subtotal |
| 2,606,325 |
|
|
| 9,699 |
|
|
| (354,048 | ) |
|
| (51,328 | ) |
|
| 2,210,648 |
|
|
| 2,429,777 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,447,248 |
|
|
| 64,499 |
|
|
| (484,632 | ) |
|
| (16,772 | ) |
|
| 2,010,343 |
|
|
| 2,255,471 |
|
Fixed income |
| 745,373 |
|
|
| 38,889 |
|
|
| (81,054 | ) |
|
| (7,320 | ) |
|
| 695,888 |
|
|
| 713,181 |
|
Multi-asset |
| 9,119 |
|
|
| 231 |
|
|
| (1,433 | ) |
|
| (49 | ) |
|
| 7,868 |
|
|
| 8,466 |
|
Alternatives |
| 65,614 |
|
|
| 4,693 |
|
|
| 14 |
|
|
| (124 | ) |
|
| 70,197 |
|
|
| 72,087 |
|
ETFs subtotal |
| 3,267,354 |
|
|
| 108,312 |
|
|
| (567,105 | ) |
|
| (24,265 | ) |
|
| 2,784,296 |
|
|
| 3,049,205 |
|
Non-ETF Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,388,009 |
|
|
| 39,995 |
|
|
| (417,775 | ) |
|
| (68,500 | ) |
|
| 1,941,729 |
|
|
| 2,191,678 |
|
Fixed income |
| 969,583 |
|
|
| 25,176 |
|
|
| (134,185 | ) |
|
| (70,575 | ) |
|
| 789,999 |
|
|
| 884,625 |
|
Multi-asset |
| 8,971 |
|
|
| (153 | ) |
|
| (1,136 | ) |
|
| (380 | ) |
|
| 7,302 |
|
|
| 8,181 |
|
Alternatives |
| 5,534 |
|
|
| (671 | ) |
|
| 659 |
|
|
| (310 | ) |
|
| 5,212 |
|
|
| 5,541 |
|
Non-ETF Index subtotal |
| 3,372,097 |
|
|
| 64,347 |
|
|
| (552,437 | ) |
|
| (139,765 | ) |
|
| 2,744,242 |
|
|
| 3,090,025 |
|
Index and ETFs subtotal |
| 6,639,451 |
|
|
| 172,659 |
|
|
| (1,119,542 | ) |
|
| (164,030 | ) |
|
| 5,528,538 |
|
|
| 6,139,230 |
|
Long-Term | $ | 9,245,776 |
|
| $ | 182,358 |
|
| $ | (1,473,590 | ) |
| $ | (215,358 | ) |
| $ | 7,739,186 |
|
| $ | 8,569,007 |
|
Year-to-Date Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| December 31, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Equity | $ | 5,342,360 |
|
| $ | 104,666 |
|
| $ | (1,005,011 | ) |
| $ | (96,895 | ) |
| $ | 4,345,120 |
|
| $ | 4,901,794 |
|
Fixed income |
| 2,822,041 |
|
|
| 43,649 |
|
|
| (332,434 | ) |
|
| (93,412 | ) |
|
| 2,439,844 |
|
|
| 2,630,477 |
|
Multi-asset |
| 816,494 |
|
|
| 19,052 |
|
|
| (136,222 | ) |
|
| (20,859 | ) |
|
| 678,465 |
|
|
| 759,735 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
| 102,579 |
|
|
| 9,286 |
|
|
| 2,525 |
|
|
| (2,351 | ) |
|
| 112,039 |
|
|
| 108,652 |
|
Liquid alternatives |
| 87,348 |
|
|
| 976 |
|
|
| (3,377 | ) |
|
| (1,177 | ) |
|
| 83,770 |
|
|
| 86,251 |
|
Currency and commodities(4) |
| 74,954 |
|
|
| 4,729 |
|
|
| 929 |
|
|
| (664 | ) |
|
| 79,948 |
|
|
| 82,098 |
|
Alternatives subtotal |
| 264,881 |
|
|
| 14,991 |
|
|
| 77 |
|
|
| (4,192 | ) |
|
| 275,757 |
|
|
| 277,001 |
|
Long-Term | $ | 9,245,776 |
|
| $ | 182,358 |
|
| $ | (1,473,590 | ) |
| $ | (215,358 | ) |
| $ | 7,739,186 |
|
| $ | 8,569,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 seven months. |
(3) | Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. |
(4) | Amounts include commodity ETFs. |
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, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 446,327 |
|
| $ | 23,190 |
|
| $ | (84,740 | ) |
| $ | (13,551 | ) |
| $ | 371,226 |
|
| $ | 439,849 |
|
Fixed income |
| 359,480 |
|
|
| 3,925 |
|
|
| (42,563 | ) |
|
| (6,982 | ) |
|
| 313,860 |
|
|
| 350,333 |
|
Multi-asset |
| 147,228 |
|
|
| 7,683 |
|
|
| (24,120 | ) |
|
| (1,649 | ) |
|
| 129,142 |
|
|
| 147,910 |
|
Alternatives |
| 42,448 |
|
|
| 9,588 |
|
|
| (2,023 | ) |
|
| (816 | ) |
|
| 49,197 |
|
|
| 46,930 |
|
Retail subtotal |
| 995,483 |
|
|
| 44,386 |
|
|
| (153,446 | ) |
|
| (22,998 | ) |
|
| 863,425 |
|
|
| 985,022 |
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,257,828 |
|
|
| 169,555 |
|
|
| (392,003 | ) |
|
| (25,037 | ) |
|
| 2,010,343 |
|
|
| 2,279,120 |
|
Fixed income |
| 700,009 |
|
|
| 94,433 |
|
|
| (87,618 | ) |
|
| (10,936 | ) |
|
| 695,888 |
|
|
| 714,420 |
|
Multi-asset |
| 7,663 |
|
|
| 1,551 |
|
|
| (1,265 | ) |
|
| (81 | ) |
|
| 7,868 |
|
|
| 8,312 |
|
Alternatives |
| 66,005 |
|
|
| 4,670 |
|
|
| (311 | ) |
|
| (167 | ) |
|
| 70,197 |
|
|
| 69,079 |
|
ETFs subtotal |
| 3,031,505 |
|
|
| 270,209 |
|
|
| (481,197 | ) |
|
| (36,221 | ) |
|
| 2,784,296 |
|
|
| 3,070,931 |
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 184,174 |
|
|
| 15,311 |
|
|
| (27,814 | ) |
|
| (7,974 | ) |
|
| 163,697 |
|
|
| 184,401 |
|
Fixed income |
| 716,671 |
|
|
| 43,210 |
|
|
| (80,946 | ) |
|
| (17,083 | ) |
|
| 661,852 |
|
|
| 720,305 |
|
Multi-asset |
| 584,582 |
|
|
| 58,347 |
|
|
| (81,391 | ) |
|
| (27,379 | ) |
|
| 534,159 |
|
|
| 603,840 |
|
Alternatives |
| 138,622 |
|
|
| 13,870 |
|
|
| 2,652 |
|
|
| (3,990 | ) |
|
| 151,154 |
|
|
| 146,260 |
|
Active subtotal |
| 1,624,049 |
|
|
| 130,738 |
|
|
| (187,499 | ) |
|
| (56,426 | ) |
|
| 1,510,862 |
|
|
| 1,654,806 |
|
Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,146,062 |
|
|
| (25,116 | ) |
|
| (239,291 | ) |
|
| (81,801 | ) |
|
| 1,799,854 |
|
|
| 2,096,323 |
|
Fixed income |
| 936,005 |
|
|
| 30,288 |
|
|
| (111,182 | ) |
|
| (86,867 | ) |
|
| 768,244 |
|
|
| 902,546 |
|
Multi-asset |
| 9,297 |
|
|
| (587 | ) |
|
| (925 | ) |
|
| (489 | ) |
|
| 7,296 |
|
|
| 9,074 |
|
Alternatives |
| 5,709 |
|
|
| (1,036 | ) |
|
| 906 |
|
|
| (370 | ) |
|
| 5,209 |
|
|
| 5,604 |
|
Index subtotal |
| 3,097,073 |
|
|
| 3,549 |
|
|
| (350,492 | ) |
|
| (169,527 | ) |
|
| 2,580,603 |
|
|
| 3,013,547 |
|
Institutional subtotal |
| 4,721,122 |
|
|
| 134,287 |
|
|
| (537,991 | ) |
|
| (225,953 | ) |
|
| 4,091,465 |
|
|
| 4,668,353 |
|
Long-term |
| 8,748,110 |
|
|
| 448,882 |
|
|
| (1,172,634 | ) |
|
| (285,172 | ) |
|
| 7,739,186 |
|
|
| 8,724,306 |
|
Cash management |
| 727,603 |
|
|
| 25,638 |
|
|
| (1,687 | ) |
|
| (12,097 | ) |
|
| 739,457 |
|
|
| 729,454 |
|
Advisory (3) |
| 20,280 |
|
|
| (11,530 | ) |
|
| 18 |
|
|
| (1 | ) |
|
| 8,767 |
|
|
| 10,566 |
|
Total | $ | 9,495,993 |
|
| $ | 462,990 |
|
| $ | (1,174,303 | ) |
| $ | (297,270 | ) |
| $ | 8,487,410 |
|
| $ | 9,464,326 |
|
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| June 30, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Active: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity | $ | 479,240 |
|
| $ | 23,744 |
|
| $ | (94,518 | ) |
| $ | (15,418 | ) |
| $ | 393,048 |
|
| $ | 468,953 |
|
Fixed income |
| 1,054,517 |
|
|
| 41,507 |
|
|
| (120,201 | ) |
|
| (21,866 | ) |
|
| 953,957 |
|
|
| 1,047,608 |
|
Multi-asset |
| 731,806 |
|
|
| 66,025 |
|
|
| (105,509 | ) |
|
| (29,027 | ) |
|
| 663,295 |
|
|
| 751,743 |
|
Alternatives |
| 181,069 |
|
|
| 23,458 |
|
|
| 627 |
|
|
| (4,806 | ) |
|
| 200,348 |
|
|
| 193,189 |
|
Active subtotal |
| 2,446,632 |
|
|
| 154,734 |
|
|
| (319,601 | ) |
|
| (71,117 | ) |
|
| 2,210,648 |
|
|
| 2,461,493 |
|
Index and ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ETFs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,257,828 |
|
|
| 169,555 |
|
|
| (392,003 | ) |
|
| (25,037 | ) |
|
| 2,010,343 |
|
|
| 2,279,120 |
|
Fixed income |
| 700,009 |
|
|
| 94,433 |
|
|
| (87,618 | ) |
|
| (10,936 | ) |
|
| 695,888 |
|
|
| 714,420 |
|
Multi-asset |
| 7,663 |
|
|
| 1,551 |
|
|
| (1,265 | ) |
|
| (81 | ) |
|
| 7,868 |
|
|
| 8,312 |
|
Alternatives |
| 66,005 |
|
|
| 4,670 |
|
|
| (311 | ) |
|
| (167 | ) |
|
| 70,197 |
|
|
| 69,079 |
|
ETFs subtotal |
| 3,031,505 |
|
|
| 270,209 |
|
|
| (481,197 | ) |
|
| (36,221 | ) |
|
| 2,784,296 |
|
|
| 3,070,931 |
|
Non-ETF Index: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 2,297,323 |
|
|
| (10,359 | ) |
|
| (257,327 | ) |
|
| (87,908 | ) |
|
| 1,941,729 |
|
|
| 2,251,620 |
|
Fixed income |
| 957,639 |
|
|
| 35,916 |
|
|
| (114,490 | ) |
|
| (89,066 | ) |
|
| 789,999 |
|
|
| 925,576 |
|
Multi-asset |
| 9,301 |
|
|
| (582 | ) |
|
| (927 | ) |
|
| (490 | ) |
|
| 7,302 |
|
|
| 9,081 |
|
Alternatives |
| 5,710 |
|
|
| (1,036 | ) |
|
| 908 |
|
|
| (370 | ) |
|
| 5,212 |
|
|
| 5,605 |
|
Non-ETF Index subtotal |
| 3,269,973 |
|
|
| 23,939 |
|
|
| (371,836 | ) |
|
| (177,834 | ) |
|
| 2,744,242 |
|
|
| 3,191,882 |
|
Index and ETFs subtotal |
| 6,301,478 |
|
|
| 294,148 |
|
|
| (853,033 | ) |
|
| (214,055 | ) |
|
| 5,528,538 |
|
|
| 6,262,813 |
|
Long-term | $ | 8,748,110 |
|
| $ | 448,882 |
|
| $ | (1,172,634 | ) |
| $ | (285,172 | ) |
| $ | 7,739,186 |
|
| $ | 8,724,306 |
|
Year-over-Year Component Changes by Product Type (Long-Term) |
| ||||||||||||||||||||||
|
|
|
|
| Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| June 30, |
|
| inflows |
|
| Market |
|
|
|
|
|
| June 30, |
|
|
|
|
| ||||
| 2021 |
|
| (outflows) |
|
| change |
|
| FX impact (1) |
|
| 2022 |
|
| Average AUM (2) |
| ||||||
Equity | $ | 5,034,391 |
|
| $ | 182,940 |
|
| $ | (743,848 | ) |
| $ | (128,363 | ) |
| $ | 4,345,120 |
|
| $ | 4,999,693 |
|
Fixed income |
| 2,712,165 |
|
|
| 171,856 |
|
|
| (322,309 | ) |
|
| (121,868 | ) |
|
| 2,439,844 |
|
|
| 2,687,604 |
|
Multi-asset |
| 748,770 |
|
|
| 66,994 |
|
|
| (107,701 | ) |
|
| (29,598 | ) |
|
| 678,465 |
|
|
| 769,136 |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
| 95,961 |
|
|
| 15,835 |
|
|
| 3,322 |
|
|
| (3,079 | ) |
|
| 112,039 |
|
|
| 103,771 |
|
Liquid alternatives |
| 81,560 |
|
|
| 6,629 |
|
|
| (2,983 | ) |
|
| (1,436 | ) |
|
| 83,770 |
|
|
| 85,311 |
|
Currency and commodities(4) |
| 75,263 |
|
|
| 4,628 |
|
|
| 885 |
|
|
| (828 | ) |
|
| 79,948 |
|
|
| 78,791 |
|
Alternatives subtotal |
| 252,784 |
|
|
| 27,092 |
|
|
| 1,224 |
|
|
| (5,343 | ) |
|
| 275,757 |
|
|
| 267,873 |
|
Long-term | $ | 8,748,110 |
|
| $ | 448,882 |
|
| $ | (1,172,634 | ) |
| $ | (285,172 | ) |
| $ | 7,739,186 |
|
| $ | 8,724,306 |
|
(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 thirteen months. |
(3) | Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. |
(4) | Amounts include commodity ETFs. |
7
SUMMARY OF REVENUE
| Three Months |
|
|
|
|
|
| Three Months |
|
|
|
|
|
| Six Months |
|
|
|
|
|
| |||||||||||
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| |||||||||||
| June 30, |
|
|
|
|
|
| March 31, |
|
|
|
|
|
| June 30, |
|
|
|
|
|
| |||||||||||
(in millions), (unaudited) | 2022 |
|
| 2021 |
|
| Change |
|
| 2022 |
|
| Change |
|
| 2022 |
|
| 2021 |
|
| Change |
|
| ||||||||
Investment advisory, administration fees and securities lending revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active | $ | 550 |
|
| $ | 641 |
|
| $ | (91 | ) |
| $ | 616 |
|
| $ | (66 | ) |
| $ | 1,166 |
|
| $ | 1,217 |
|
| $ | (51 | ) |
|
ETFs |
| 1,103 |
|
|
| 1,156 |
|
|
| (53 | ) |
|
| 1,158 |
|
|
| (55 | ) |
|
| 2,261 |
|
|
| 2,224 |
|
|
| 37 |
|
|
Non-ETF Index |
| 186 |
|
|
| 198 |
|
|
| (12 | ) |
|
| 187 |
|
|
| (1 | ) |
|
| 373 |
|
|
| 374 |
|
|
| (1 | ) |
|
Equity subtotal |
| 1,839 |
|
|
| 1,995 |
|
|
| (156 | ) |
|
| 1,961 |
|
|
| (122 | ) |
|
| 3,800 |
|
|
| 3,815 |
|
|
| (15 | ) |
|
Fixed income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active |
| 503 |
|
|
| 545 |
|
|
| (42 | ) |
|
| 534 |
|
|
| (31 | ) |
|
| 1,037 |
|
|
| 1,070 |
|
|
| (33 | ) |
|
ETFs |
| 274 |
|
|
| 294 |
|
|
| (20 | ) |
|
| 289 |
|
|
| (15 | ) |
|
| 563 |
|
|
| 589 |
|
|
| (26 | ) |
|
Non-ETF Index |
| 102 |
|
|
| 116 |
|
|
| (14 | ) |
|
| 118 |
|
|
| (16 | ) |
|
| 220 |
|
|
| 229 |
|
|
| (9 | ) |
|
Fixed income subtotal |
| 879 |
|
|
| 955 |
|
|
| (76 | ) |
|
| 941 |
|
|
| (62 | ) |
|
| 1,820 |
|
|
| 1,888 |
|
|
| (68 | ) |
|
Multi-asset |
| 331 |
|
|
| 344 |
|
|
| (13 | ) |
|
| 359 |
|
|
| (28 | ) |
|
| 690 |
|
|
| 672 |
|
|
| 18 |
|
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
| 184 |
|
|
| 167 |
|
|
| 17 |
|
|
| 179 |
|
|
| 5 |
|
|
| 363 |
|
|
| 335 |
|
|
| 28 |
|
|
Liquid alternatives |
| 161 |
|
|
| 150 |
|
|
| 11 |
|
|
| 167 |
|
|
| (6 | ) |
|
| 328 |
|
|
| 297 |
|
|
| 31 |
|
|
Currency and commodities |
| 62 |
|
|
| 55 |
|
|
| 7 |
|
|
| 56 |
|
|
| 6 |
|
|
| 118 |
|
|
| 108 |
|
|
| 10 |
|
|
Alternatives subtotal |
| 407 |
|
|
| 372 |
|
|
| 35 |
|
|
| 402 |
|
|
| 5 |
|
|
| 809 |
|
|
| 740 |
|
|
| 69 |
|
|
Long-term |
| 3,456 |
|
|
| 3,666 |
|
|
| (210 | ) |
|
| 3,663 |
|
|
| (207 | ) |
|
| 7,119 |
|
|
| 7,115 |
|
|
| 4 |
|
|
Cash management |
| 232 |
|
|
| 91 |
|
|
| 141 |
|
|
| 170 |
|
|
| 62 |
|
|
| 402 |
|
|
| 234 |
|
|
| 168 |
|
|
Total investment advisory, administration fees and securities lending revenue |
| 3,688 |
|
|
| 3,757 |
|
|
| (69 | ) |
|
| 3,833 |
|
|
| (145 | ) |
|
| 7,521 |
|
|
| 7,349 |
|
|
| 172 |
|
|
Investment advisory performance fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
| 3 |
|
|
| 36 |
|
|
| (33 | ) |
|
| 12 |
|
|
| (9 | ) |
|
| 15 |
|
|
| 62 |
|
|
| (47 | ) |
|
Fixed income |
| 13 |
|
|
| 15 |
|
|
| (2 | ) |
|
| 9 |
|
|
| 4 |
|
|
| 22 |
|
|
| 29 |
|
|
| (7 | ) |
|
Multi-asset |
| 7 |
|
|
| 9 |
|
|
| (2 | ) |
|
| 5 |
|
|
| 2 |
|
|
| 12 |
|
|
| 17 |
|
|
| (5 | ) |
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
| 65 |
|
|
| 90 |
|
|
| (25 | ) |
|
| 37 |
|
|
| 28 |
|
|
| 102 |
|
|
| 97 |
|
|
| 5 |
|
|
Liquid alternatives |
| 18 |
|
|
| 190 |
|
|
| (172 | ) |
|
| 35 |
|
|
| (17 | ) |
|
| 53 |
|
|
| 264 |
|
|
| (211 | ) |
|
Alternatives subtotal |
| 83 |
|
|
| 280 |
|
|
| (197 | ) |
|
| 72 |
|
|
| 11 |
|
|
| 155 |
|
|
| 361 |
|
|
| (206 | ) |
|
Total performance fees |
| 106 |
|
|
| 340 |
|
|
| (234 | ) |
|
| 98 |
|
|
| 8 |
|
|
| 204 |
|
|
| 469 |
|
|
| (265 | ) |
|
Technology services revenue |
| 332 |
|
|
| 316 |
|
|
| 16 |
|
|
| 341 |
|
|
| (9 | ) |
|
| 673 |
|
|
| 622 |
|
|
| 51 |
|
|
Distribution fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retrocessions |
| 269 |
|
|
| 264 |
|
|
| 5 |
|
|
| 279 |
|
|
| (10 | ) |
|
| 548 |
|
|
| 502 |
|
|
| 46 |
|
|
12b-1 fees (US mutual fund distribution fees) |
| 80 |
|
|
| 87 |
|
|
| (7 | ) |
|
| 88 |
|
|
| (8 | ) |
|
| 168 |
|
|
| 172 |
|
|
| (4 | ) |
|
Other |
| 12 |
|
|
| 18 |
|
|
| (6 | ) |
|
| 14 |
|
|
| (2 | ) |
|
| 26 |
|
|
| 35 |
|
|
| (9 | ) |
|
Total distribution fees |
| 361 |
|
|
| 369 |
|
|
| (8 | ) |
|
| 381 |
|
|
| (20 | ) |
|
| 742 |
|
|
| 709 |
|
|
| 33 |
|
|
Advisory and other revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory |
| 15 |
|
|
| 9 |
|
|
| 6 |
|
|
| 16 |
|
|
| (1 | ) |
|
| 31 |
|
|
| 24 |
|
|
| 7 |
|
|
Other |
| 24 |
|
|
| 29 |
|
|
| (5 | ) |
|
| 30 |
|
|
| (6 | ) |
|
| 54 |
|
|
| 45 |
|
|
| 9 |
|
|
Total advisory and other revenue |
| 39 |
|
|
| 38 |
|
|
| 1 |
|
|
| 46 |
|
|
| (7 | ) |
|
| 85 |
|
|
| 69 |
|
|
| 16 |
|
|
Total revenue | $ | 4,526 |
|
| $ | 4,820 |
|
| $ | (294 | ) |
| $ | 4,699 |
|
| $ | (173 | ) |
| $ | 9,225 |
|
| $ | 9,218 |
|
| $ | 7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
Investment advisory, administration fees and securities lending revenue decreased $145 million from the first quarter of 2022, primarily driven by the negative impact of market beta and foreign exchange movements on average AUM, partially offset by the elimination of yield-related fee waivers on money market funds, the effect of one additional day in the quarter, and higher securities lending revenue. Securities lending revenue of $160 million increased from $138 million in the first quarter of 2022, primarily reflecting higher spreads.
• | Performance fees decreased $234 million from the second quarter of 2021, primarily reflecting lower revenue from alternative and long-only products. |
• | Technology services revenue increased $16 million from the second quarter of 2021, reflecting continued strong client demand for Aladdin, despite the negative impact of foreign exchange movements. Technology services annual contract value (“ACV”)(1) increased 10% from the second quarter of 2021, and was similarly impacted by foreign exchange headwinds. |
| (1) | See note (3) to the condensed consolidated statements of income and supplemental information on page 13 for more information on ACV. |
8
|
SUMMARY OF OPERATING EXPENSE
| Three Months |
|
|
|
|
|
| Three Months |
|
|
|
|
|
| Six Months |
|
|
|
|
|
| |||||||||||
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| |||||||||||
| June 30, |
|
|
|
|
|
| March 31, |
|
|
|
|
|
| June 30, |
|
|
|
|
|
| |||||||||||
(in millions), (unaudited) | 2022 |
|
| 2021 |
|
| Change |
|
| 2022 |
|
| Change |
|
| 2022 |
|
| 2021 |
|
| Change |
|
| ||||||||
Operating expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits | $ | 1,414 |
|
| $ | 1,548 |
|
| $ | (134 | ) |
| $ | 1,498 |
|
| $ | (84 | ) |
| $ | 2,912 |
|
| $ | 2,957 |
|
| $ | (45 | ) |
|
Distribution and servicing costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retrocessions |
| 269 |
|
|
| 264 |
|
|
| 5 |
|
|
| 279 |
|
|
| (10 | ) |
|
| 548 |
|
|
| 502 |
|
|
| 46 |
|
|
12b-1 costs |
| 78 |
|
|
| 85 |
|
|
| (7 | ) |
|
| 86 |
|
|
| (8 | ) |
|
| 164 |
|
|
| 168 |
|
|
| (4 | ) |
|
Other |
| 225 |
|
|
| 174 |
|
|
| 51 |
|
|
| 209 |
|
|
| 16 |
|
|
| 434 |
|
|
| 358 |
|
|
| 76 |
|
|
Total distribution and servicing costs |
| 572 |
|
|
| 523 |
|
|
| 49 |
|
|
| 574 |
|
|
| (2 | ) |
|
| 1,146 |
|
|
| 1,028 |
|
|
| 118 |
|
|
Direct fund expense |
| 304 |
|
|
| 320 |
|
|
| (16 | ) |
|
| 329 |
|
|
| (25 | ) |
|
| 633 |
|
|
| 640 |
|
|
| (7 | ) |
|
General and administration expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and promotional |
| 76 |
|
|
| 53 |
|
|
| 23 |
|
|
| 60 |
|
|
| 16 |
|
|
| 136 |
|
|
| 88 |
|
|
| 48 |
|
|
Occupancy and office related |
| 106 |
|
|
| 80 |
|
|
| 26 | �� |
|
| 99 |
|
|
| 7 |
|
|
| 205 |
|
|
| 159 |
|
|
| 46 |
|
|
Portfolio services |
| 67 |
|
|
| 64 |
|
|
| 3 |
|
|
| 69 |
|
|
| (2 | ) |
|
| 136 |
|
|
| 129 |
|
|
| 7 |
|
|
Sub-advisory |
| 20 |
|
|
| 23 |
|
|
| (3 | ) |
|
| 22 |
|
|
| (2 | ) |
|
| 42 |
|
|
| 45 |
|
|
| (3 | ) |
|
Technology |
| 148 |
|
|
| 129 |
|
|
| 19 |
|
|
| 145 |
|
|
| 3 |
|
|
| 293 |
|
|
| 233 |
|
|
| 60 |
|
|
Professional services |
| 42 |
|
|
| 41 |
|
|
| 1 |
|
|
| 40 |
|
|
| 2 |
|
|
| 82 |
|
|
| 80 |
|
|
| 2 |
|
|
Communications |
| 10 |
|
|
| 11 |
|
|
| (1 | ) |
|
| 11 |
|
|
| (1 | ) |
|
| 21 |
|
|
| 22 |
|
|
| (1 | ) |
|
Foreign exchange remeasurement |
| 2 |
|
|
| (2 | ) |
|
| 4 |
|
|
| (3 | ) |
|
| 5 |
|
|
| (1 | ) |
|
| 2 |
|
|
| (3 | ) |
|
Contingent consideration fair value adjustments |
| - |
|
|
| 1 |
|
|
| (1 | ) |
|
| 1 |
|
|
| (1 | ) |
|
| 1 |
|
|
| 4 |
|
|
| (3 | ) |
|
Product launch costs |
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 178 |
|
|
| (178 | ) |
|
Other general and administration |
| 59 |
|
|
| 61 |
|
|
| (2 | ) |
|
| 52 |
|
|
| 7 |
|
|
| 111 |
|
|
| 106 |
|
|
| 5 |
|
|
Total general and administration expense |
| 530 |
|
|
| 461 |
|
|
| 69 |
|
|
| 496 |
|
|
| 34 |
|
|
| 1,026 |
|
|
| 1,046 |
|
|
| (20 | ) |
|
Amortization of intangible assets |
| 38 |
|
|
| 37 |
|
|
| 1 |
|
|
| 38 |
|
|
| - |
|
|
| 76 |
|
|
| 71 |
|
|
| 5 |
|
|
Total operating expense | $ | 2,858 |
|
| $ | 2,889 |
|
| $ | (31 | ) |
| $ | 2,935 |
|
| $ | (77 | ) |
| $ | 5,793 |
|
| $ | 5,742 |
|
| $ | 51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights
• | Employee compensation and benefits expense decreased $134 million from the second quarter of 2021, primarily reflecting lower incentive compensation, due to lower operating income and performance fees, and lower deferred compensation driven in part by the lower mark-to-market impact of certain deferred cash compensation programs, partially offset by higher base compensation. |
Employee compensation and benefits expense decreased $84 million from the first quarter of 2022, primarily reflecting lower incentive compensation and lower seasonal payroll taxes in the current quarter.
• | Direct fund expense decreased $25 million from the first quarter of 2022, primarily reflecting lower average AUM. |
• | General and administration expense increased $69 million from the second quarter of 2021, primarily driven by higher marketing and promotional expense, resulting from higher travel and entertainment expense, and higher technology expense. The increase also reflected higher occupancy and office related expense, including $15 million of noncash occupancy expense related to the lease of office space for the Company’s future headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson Yards”), which it expects to begin to occupy in late 2022 (and begin lease payments in May 2023). Lease cost – Hudson Yards has been excluded from our “as adjusted” financial results. See pages 11 through 13 for the reconciliation to GAAP and notes (1) and (2) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. |
General and administration expense increased $34 million from the first quarter of 2022, primarily reflecting higher marketing and promotional expense, resulting from higher travel and entertainment expense.
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) |
| 2022 |
|
| 2021 |
|
| Change |
|
| 2022 |
|
| Change |
|
| 2022 |
|
| 2021 |
|
| Change |
|
| ||||||||
Nonoperating income (expense), GAAP basis |
| $ | (347 | ) |
| $ | 270 |
|
| $ | (617 | ) |
| $ | (138 | ) |
| $ | (209 | ) |
| $ | (485 | ) |
| $ | 316 |
|
| $ | (801 | ) |
|
Less: Net income (loss) attributable to noncontrolling interests ("NCI") |
|
| (114 | ) |
|
| 169 |
|
|
| (283 | ) |
|
| (73 | ) |
|
| (41 | ) |
|
| (187 | ) |
|
| 243 |
|
|
| (430 | ) |
|
Nonoperating income (expense)(1) |
| $ | (233 | ) |
| $ | 101 |
|
| $ | (334 | ) |
| $ | (65 | ) |
| $ | (168 | ) |
| $ | (298 | ) |
| $ | 73 |
|
| $ | (371 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months |
|
|
|
|
|
| Three Months |
|
|
|
|
|
| Six Months |
|
|
|
|
|
| |||||||||||
|
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| |||||||||||
|
| June 30, |
|
|
|
|
|
| March 31, |
|
|
|
|
|
| June 30, |
|
|
|
|
|
| |||||||||||
(in millions), (unaudited) |
| 2022 |
|
| 2021 |
|
| Change |
|
| 2022 |
|
| Change |
|
| 2022 |
|
| 2021 |
|
| Change |
|
| ||||||||
Net gain (loss) on investments(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity |
| $ | (8 | ) |
| $ | 66 |
|
| $ | (74 | ) |
| $ | 10 |
|
| $ | (18 | ) |
| $ | 2 |
|
| $ | 88 |
|
| $ | (86 | ) |
|
Real assets |
|
| 1 |
|
|
| 3 |
|
|
| (2 | ) |
|
| 13 |
|
|
| (12 | ) |
|
| 14 |
|
|
| 6 |
|
|
| 8 |
|
|
Other alternatives(2) |
|
| (5 | ) |
|
| 17 |
|
|
| (22 | ) |
|
| 4 |
|
|
| (9 | ) |
|
| (1 | ) |
|
| 30 |
|
|
| (31 | ) |
|
Other investments(3) |
|
| (112 | ) |
|
| 48 |
|
|
| (160 | ) |
|
| (75 | ) |
|
| (37 | ) |
|
| (187 | ) |
|
| 45 |
|
|
| (232 | ) |
|
Subtotal |
|
| (124 | ) |
|
| 134 |
|
|
| (258 | ) |
|
| (48 | ) |
|
| (76 | ) |
|
| (172 | ) |
|
| 169 |
|
|
| (341 | ) |
|
Other gains (losses)(4) |
|
| (76 | ) |
|
| 11 |
|
|
| (87 | ) |
|
| 19 |
|
|
| (95 | ) |
|
| (57 | ) |
|
| (16 | ) |
|
| (41 | ) |
|
Total net gain (loss) on investments(1) |
|
| (200 | ) |
|
| 145 |
|
|
| (345 | ) |
|
| (29 | ) |
|
| (171 | ) |
|
| (229 | ) |
|
| 153 |
|
|
| (382 | ) |
|
Interest and dividend income |
|
| 21 |
|
|
| 8 |
|
|
| 13 |
|
|
| 18 |
|
|
| 3 |
|
|
| 39 |
|
|
| 27 |
|
|
| 12 |
|
|
Interest expense |
|
| (54 | ) |
|
| (52 | ) |
|
| (2 | ) |
|
| (54 | ) |
|
| - |
|
|
| (108 | ) |
|
| (107 | ) |
|
| (1 | ) |
|
Net interest expense |
|
| (33 | ) |
|
| (44 | ) |
|
| 11 |
|
|
| (36 | ) |
|
| 3 |
|
|
| (69 | ) |
|
| (80 | ) |
|
| 11 |
|
|
Nonoperating income (expense)(1) |
| $ | (233 | ) |
| $ | 101 |
|
| $ | (334 | ) |
| $ | (65 | ) |
| $ | (168 | ) |
| $ | (298 | ) |
| $ | 73 |
|
| $ | (371 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net of net income (loss) attributable to NCI. Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on other as adjusted items see notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 12 through 13. |
(2) | Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions. |
(3) | Amounts primarily include net gains (losses) related to unhedged equity, fixed income and multi-asset investments. |
(4) | Amounts primarily include noncash pre-tax gains (losses) related to the revaluation of certain minority investments. |
INCOME TAX EXPENSE
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
|
| Six Months |
|
|
|
|
|
| ||||||||||||
| Ended |
|
|
|
|
| Ended |
|
|
|
|
|
| Ended |
|
|
|
|
|
| ||||||||||||
| June 30, |
|
|
|
|
| March 31, |
|
|
|
|
|
| June 30, |
|
|
|
|
|
| ||||||||||||
(in millions), (unaudited) | 2022 |
|
| 2021 |
|
| Change |
| 2022 |
|
| Change |
|
| 2022 |
|
| 2021 |
|
| Change |
|
| |||||||||
Income tax expense | $ | 358 |
|
| $ | 654 |
|
| $ | (296 | ) |
| $ | 263 |
|
| $ | 95 |
|
| $ | 621 |
|
| $ | 972 |
|
| $ | (351 | ) |
|
Effective tax rate |
| 24.9 | % |
|
| 32.2 | % |
|
| (730 | ) bps |
|
| 15.5 | % |
|
| 940 | bps |
|
| 19.8 | % |
|
| 27.4 | % |
|
| (760 | ) bps |
|
Highlights
• | First quarter 2022 income tax expense included $133 million of discrete tax benefits related to stock-based compensation awards that vested in the first quarter and the resolution of certain outstanding tax matters. |
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) |
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| |||||
Operating income, GAAP basis |
| $ | 1,668 |
|
| $ | 1,931 |
|
| $ | 1,764 |
|
| $ | 3,432 |
|
| $ | 3,476 |
|
|
Non-GAAP expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
| 38 |
|
|
| 37 |
|
|
| 38 |
|
|
| 76 |
|
|
| 71 |
|
|
Acquisition-related compensation costs |
|
| 6 |
|
|
| 47 |
|
|
| 7 |
|
|
| 13 |
|
|
| 64 |
|
|
Contingent consideration fair value adjustments |
|
| - |
|
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
|
| 4 |
|
|
Lease cost - Hudson Yards |
|
| 15 |
|
|
| - |
|
|
| 12 |
|
|
| 27 |
|
|
| - |
|
|
Operating income, as adjusted (1) |
|
| 1,727 |
|
|
| 2,016 |
|
|
| 1,822 |
|
|
| 3,549 |
|
|
| 3,615 |
|
|
Product launch costs and commissions |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 185 |
|
|
Operating income used for operating margin measurement |
| $ | 1,727 |
|
| $ | 2,016 |
|
| $ | 1,822 |
|
| $ | 3,549 |
|
| $ | 3,800 |
|
|
Revenue, GAAP basis |
| $ | 4,526 |
|
| $ | 4,820 |
|
| $ | 4,699 |
|
| $ | 9,225 |
|
| $ | 9,218 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution fees |
|
| (361 | ) |
|
| (369 | ) |
|
| (381 | ) |
|
| (742 | ) |
|
| (709 | ) |
|
Investment advisory fees |
|
| (211 | ) |
|
| (154 | ) |
|
| (193 | ) |
|
| (404 | ) |
|
| (319 | ) |
|
Revenue used for operating margin measurement |
| $ | 3,954 |
|
| $ | 4,297 |
|
| $ | 4,125 |
|
| $ | 8,079 |
|
| $ | 8,190 |
|
|
Operating margin, GAAP basis |
|
| 36.9 | % |
|
| 40.1 | % |
|
| 37.5 | % |
|
| 37.2 | % |
|
| 37.7 | % |
|
Operating margin, as adjusted (1) |
|
| 43.7 | % |
|
| 46.9 | % |
|
| 44.2 | % |
|
| 43.9 | % |
|
| 46.4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See note (1) to the condensed consolidated statements of income and supplemental information on page 12 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) |
| 2022 |
|
| 2021 |
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| |||||
Net income attributable to BlackRock, Inc., GAAP basis |
| $ | 1,077 |
|
| $ | 1,378 |
|
| $ | 1,436 |
|
| $ | 2,513 |
|
| $ | 2,577 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets, net of tax |
|
| 29 |
|
|
| 28 |
|
|
| 29 |
|
|
| 58 |
|
| 54 |
|
| |
Acquisition-related compensation costs, net of tax |
|
| 5 |
|
|
| 36 |
|
|
| 5 |
|
|
| 10 |
|
| 49 |
|
| |
Contingent consideration fair value adjustments, net of tax |
|
| - |
|
|
| 1 |
|
|
| 1 |
|
|
| 1 |
|
| 3 |
|
| |
Lease cost - Hudson Yards, net of tax |
|
| 11 |
|
|
| - |
|
|
| 9 |
|
|
| 20 |
|
|
| - |
|
|
Income tax matters |
|
| - |
|
|
| 171 |
|
|
| (18 | ) |
|
| (18 | ) |
|
| 171 |
|
|
Net income attributable to BlackRock, Inc., as adjusted (2) |
| $ | 1,122 |
|
| $ | 1,614 |
|
| $ | 1,462 |
|
| $ | 2,584 |
|
| $ | 2,854 |
|
|
Diluted weighted-average common shares outstanding |
|
| 152.5 |
|
|
| 154.4 |
|
|
| 153.5 |
|
|
| 153.0 |
|
|
| 154.4 |
|
|
Diluted earnings per common share, GAAP basis |
| $ | 7.06 |
|
| $ | 8.92 |
|
| $ | 9.35 |
|
| $ | 16.43 |
|
| $ | 16.69 |
|
|
Diluted earnings per common share, as adjusted (2) |
| $ | 7.36 |
|
| $ | 10.45 |
|
| $ | 9.52 |
|
| $ | 16.89 |
|
| $ | 18.49 |
|
|
See note (2) to the condensed consolidated statements of income and supplemental information on page 13 for more information on as adjusted items.
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NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“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 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 measures may not be comparable to other similarly titled measures of other companies.
Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Such measures have been recast for 2021 to reflect the inclusion of such new adjustments. For further information, refer to the Current Report on Form 8-K furnished on April 13, 2022.
Computations 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.
• | Operating income, as adjusted, includes non-GAAP expense adjustments. Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies. In addition, as previously reported in 2021, the Company recorded expense related to the lease of office space for its future headquarters located at 50 Hudson Yards in New York (“Lease cost – Hudson Yards”) from August 2021. While the Company expects to begin to occupy the new office space in late 2022 (and begin cash lease payments in May 2023), the Company was required to record lease expense when it obtained access to the building to begin its tenant improvements. As a result, the Company is recognizing lease expense for both its current and future headquarters until its current headquarters lease expires in April 2023. Management believes removing Lease cost – Hudson Yards when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and enhances comparability among periods presented. |
• | Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods. |
• | Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries. |
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(2) 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 significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.
See note (1) above regarding operating income, as adjusted, and operating margin, as adjusted, for information on the updated presentation of non-GAAP expense adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions, as well as previously reported Lease cost – Hudson Yards.
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted divided by diluted weighted-average common shares outstanding.
(3) 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 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.
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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. 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. 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) a pandemic or health crisis, including the COVID-19 pandemic, and its continued impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) 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 assets under management (“AUM”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (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) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) geopolitical unrest, terrorist activities, civil or international hostilities, including the military conflict between Russia and Ukraine, and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (18) climate change-related risks to BlackRock's business, products, operations and clients; (19) the ability to attract and retain highly talented professionals; (20) fluctuations in the carrying value of BlackRock’s economic investments; (21) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (22) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (23) the failure by key third-party providers of BlackRock to fulfill their obligations to the Company; (24) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (25) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; (26) 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 (27) the impact of problems at other financial institutions or the failure or negative performance of products at 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.
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of June 30, 2022 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, 2022. The performance data does not include accounts terminated prior to June 30, 2022 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, 2022 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.
14