of and It’s morning everyone. Chris present my you results good second XXXX. to Thank quarter pleasure for the
to offer review to turn Before his business over I financial our it I'll results. and performance comments, Larry
GAAP our the execute to results. as as have to and on adjusted discloses financial month our enabled for value. support Day our Last highlighted release at Investor While I'll on consistently shareholder adjusted us made focusing we XXXX have we earnings primarily both growth be framework results, investments our how
markets industry-leading construct meet growth technology enjoinment over have integrated to drive whole and We create technology high as clients in appetite. And they platform and risk private resilient or growth and invest their results differentiated that future. to $XX gross our global a X% franchises once that billion continue of our to evolved second platform The representing very and to growth. portfolios solutions active objectives in investment and comprehensive total asset inflows regardless enables integrated again for and BlackRock organic annualized and delivering are we quarter, market globally distribution accelerating invested time and of with net ETFs, to traditional continue remain investments local ESG we the the organic of the in well-positioned capabilities quarter, in generated capabilities. delivered strong our investment combination such
previously fee quarter's impact and included net second client. organic contributed large the XX% billion $XX franchise our low index robust disclosed, fee ETFs institutional from inflows base pension active growth. quarter this entire a full again As once from net public to inflows annualized redemption Strong of a U.S.
the our based capabilities with target. excess technology of pairing long-term organic Over over diverse billion management platform of last well rigorous growth months, representing base total has inflows, XX broad X% risk net investment $XXX best-in-class and fee generated XX% our in
share equity billion up reflecting benefited of included higher of year the in income increased by a seed year-over-year Earnings investment XX%. $X.X primarily per $XX.XX in year-over-year million quarter part to versus driven results coinvestment rose unhedged of Second billion conditions of income, XX%, XX% capital comparisons was compared tax $XXX improvements rate $X.X market and and Non-operating revenue operating quarter our from for gains Strong also effective ago. mark-to-market a and income ago. in non-operating portfolios. year a equity significant net private lower
a potential is in a during as certain or the consequence differ of rate tax now primarily XX% tax for actual though remainder XXXX, tax run the second for legislation tax items discrete year. rate effective state the -- the rates or non-recurring in may changes tax increase of XX%. quarter an approximately estimate projected reasonable adjusted We as was that tax Our rate reflected
X%. lending base was fee higher base fee and base was up revenue by discretionary fee quarter securities offset driven year-over-year, $X.X waivers, strong beta year. organic AUM on up of primarily of partially positive impact and lending billion revenue lending lower by over revenue average money the and last and XX% Second fee the market market securities strategic investments securities growth, pricing Sequentially
driven basis fee offset by by points, fee impact than current However, was active more and effective of were market quarter. the one higher fee businesses X.X beta money equity in of the day growth down the our quarter additional strong higher in base discretionary our rate fee divergent as impact the and organic waivers
incurred part $XXX second the money support yield market we gross million strong of government quarter, continued into driven waivers by funds. U.S. discretionary approximately During our flows in
technical While current the discretionary Fed's levels persist have term. the the modestly RRP waivers recent or still adjustments IOER to we for around to fee new expect and helped, at
in spend. while across XXXX, ACV including pandemic. AUM growth contracting strategies. to of growth expense from year-over-year, Quarterly ago, long-term. up reflecting our was higher Employee operating gross million driven performance year ago expense. portfolio the yields expense reflecting waivers higher higher associated was up Direct entire Sequentially, revenue arrangements with G&A $XXX million acquisition. and down funds by value $XXX compensation, a million over Aperio discretionary additional launch by increased amortization may annual strong technology by XX%, million, a technology reflecting the with primarily fee related the by of up and index was illiquid existing year in and teens G&A including several Intangible a XX% XX% result benefit $XX to the competitive as services compensation million technology the performance the alternatives compensation compensation, future incurred low year reflecting and strong from was be quarter to committed increased platform, and increased deferred year factors, services grants partially primarily income remain year-over-year, first year-over-year, of the certain which costs acquisition. Total previous direct We continued and prior $XXX average expense and compensation investment driven driven higher a marketing contract increased incentive primarily primarily positioning. levels reflecting by second of of and the significantly higher fund by offset also of expense quarter, XX% impacted year-over-year reflect mid fees XX% higher fees expense or of impact from fund However, ACV spend. liquid of product additional versus the slower AUM. increased ago, sales extended to in and higher and waivers, impact were compensation approximately early quarter, level impacted or and expense G&A $XX long-only days marketing of and and Performance our XX%
remain the XXX part never quarter benefiting of efficient BlackRock the positioned advantage improvements second as before the in Our year. been equity a never growth to been year adjusted we to last market organic optimizing us. from -- operating XX.X% most of take up opportunities was ago, margin points has possible. basis over positioned has in better from committed way significant And
strategy to prudent investing Our capital shareholders. our remains excess balance management Aladdin our evolve and and incredible leg in all then for business, growth. first see We portfolios of including opportunity of to of make are cash its sheet, return next to Aladdin to to language through invest the use
As the capabilities standard discuss will of Larry new scenario announced second climate acquisition their in and we partnership more for analytics. enhance change Baringa, the during including quarter, set model, industry-leading a with Climate's Aladdin a climate will detail, which
tech managed product personalized our market minority In recent addition, of enabled announced incremental SMA franchise. and a providing acquisition Aperio adds to This option investment strategies. yesterday professionally leading manager, SpiderRock asset on a capabilities Advisors, in extends focused investment we overlay our
of as and by additional in We shares the the second guidance for previous an relates repurchases the to $XXX worth quarter stand remainder also year. million it of repurchased share
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billion annualized inflows organic $XX ETFs quarter, and of in net asset fee XX% second growth. generated the Our base representing
generate first fee equity $X assets We globally particularly precision continued in the equities. Core higher inflows, for also crossed to ETFs in international time. trillion strong and
of and most by any ETFs. across organic mandate were unconstrained pension strategies broad flows major classes. our by is and led well-positioned capture equipped remain billion fee our led both Inflows rate representing largely Retail annualized base $XX as we and sustainable from strength strength positive demand an of this to based our the reflect However, of the renewed to in inflows, continued X% outsource client. net active U.K. positive by client a billion multi-asset XX% to international entirety both demand category asset strength annualized in as inflows broad income all inflows came where growth in and steady significant the growth were environment. equities fixed into active quarter in net factor well net range, institutional ETFs continued income, meet across and and for asset thematic of appetite our from U.S. $XX and diversified internationally CIO a billion $XX driven growth organic and platform, yield market high yield active for of investor fixed including strategic BlackRock's
also will and discuss, management hold uniquely capitalizing in focus to deliver positioned technology solutions global our sustainability. BlackRock and scale, expertise is on portfolio Larry customized by risk As investment on
fixed sought were asset immunize hedge base rebalanced strong, positive minimis deploy hedge outflows. of than for Fundraising as through fees. partially inflows fee and we billion fixed data redemption quarter, credit, to strategies, as flows. across impact index second and approximately for overall offset continued, of the Despite single liquid the during index net and the billion mentioned private organic equity outflows annualized impacted income, $XX inflows alternative in LDI were continued LifePath liquid funds platform, active after billion growth variety also of client flows a quarter, our active fee during and market with into During strategies institutional performance a higher funds, clients net offset for the of the portfolios index also and nearly BlackRock's and ninth low have remain Institutional gains inflows consecutive Outflows was active we offerings. target quarter. future solutions. X% by assets, equity net fee base quarter were net equity the more outflows income capital of billion by saw BlackRock portfolios strategy $XX driven previously into approximately from and de real source the strategies. private to alternative solutions, of equities and the committed of active fund for significant across momentum by alternative strategies into representing $XX alternatives net base of single institutional franchise clients alternatives demand significant $X equity quarter, quarterly Demand illiquid generated notching Overall, fee
second money government given in market management U.S. Finally, strong, generating significant the funds. in continued financial BlackRock's clients remained U.S. and of cash, the facing $XX both their quarter, manage prime liquidity relationships. strategic strategies zero inflows the Europe, driven platform demand are net the and Despite by both client returns grow, deeper to billion cash helping building for cash we net system and in and broader by
Our culture the one been performance day. a strong talented a result continued well who group growth employees of live is has strategy purpose-driven a executed by that direct thoughtful of BlackRock each
We success tremendous these are XX thankful their contributions and to over our effort months. for last
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