0001364742false0001364742blk:CommonStockPointZeroOneParValueMember2024-07-152024-07-1500013647422024-07-152024-07-150001364742blk:OnePointTwoFiveZeroPercentNotesDueTwoThousandTwentyFiveMember2024-07-152024-07-15
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 15, 2024
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BLACKROCK, INC. |
(Exact name of registrant as specified in its charter) |
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delaware (State or other jurisdiction of incorporation) |
001-33099 (Commission File Number) |
32-0174431 (IRS Employer Identification No.) |
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50 Hudson Yards, New York, New York |
10001 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (212) 810-5800
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(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common Stock, $.01 par value |
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BLK |
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New York Stock Exchange |
1.250% Notes due 2025 |
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BLK25 |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On July 15, 2024, BlackRock, Inc. (the “Company”) reported results of operations for the three and six months ended June 30, 2024. A copy of the earnings release issued by the Company is attached as Exhibit 99.1 to this Form 8-K.
Item 7.01. Regulation FD Disclosure
On July 15, 2024, the Company will hold an investor conference call and webcast to discuss the Company’s earnings results for the three and six months ended June 30, 2024. A copy of supplemental materials used during the conference call and webcast is furnished as Exhibit 99.2 to this Form 8-K.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BlackRock, Inc. |
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(Registrant) |
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Date: July 15, 2024 |
By: |
/s/ Martin S. Small |
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Martin S. Small |
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Senior Managing Director and |
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Chief Financial Officer |
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INVESTOR RELATIONS: Caroline Rodda 212.810.3442 |
MEDIA RELATIONS: Ed Sweeney 646.231.0268 |
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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. |
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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 |
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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.” |
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FINANCIAL RESULTS |
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NET FLOW HIGHLIGHTS(1) |
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Q2 |
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Q2 |
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Q2 |
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YTD |
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(in millions, except per share data) |
2024 |
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2023 |
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(in billions) |
2024 |
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2024 |
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AUM |
$ |
10,645,721 |
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|
$ |
9,425,212 |
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Long-term net flows: |
$ |
51 |
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|
$ |
128 |
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% change |
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13 |
% |
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Average AUM |
$ |
10,457,851 |
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$ |
9,187,240 |
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By region: |
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% change |
|
14 |
% |
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Americas |
$ |
31 |
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$ |
89 |
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Total net flows |
$ |
81,565 |
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$ |
80,162 |
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EMEA |
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36 |
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56 |
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APAC |
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(16 |
) |
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(17 |
) |
GAAP basis: |
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Revenue |
$ |
4,805 |
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$ |
4,463 |
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By client type: |
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% change |
|
8 |
% |
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Operating income |
$ |
1,800 |
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$ |
1,615 |
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Retail: |
$ |
6 |
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$ |
13 |
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% change |
|
11 |
% |
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US |
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2 |
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9 |
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Operating margin |
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37.5 |
% |
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36.2 |
% |
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International |
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4 |
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4 |
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Net income(1) |
$ |
1,495 |
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$ |
1,366 |
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% change |
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9 |
% |
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ETFs: |
$ |
83 |
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$ |
150 |
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Diluted EPS |
$ |
9.99 |
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$ |
9.06 |
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Core equity |
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32 |
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69 |
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% change |
|
10 |
% |
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Strategic |
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37 |
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51 |
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Weighted-average diluted shares |
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149.7 |
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150.7 |
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Precision |
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14 |
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30 |
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% change |
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(1 |
)% |
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Institutional: |
$ |
(37 |
) |
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$ |
(35 |
) |
As Adjusted(2): |
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Active |
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(2 |
) |
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13 |
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Operating income |
$ |
1,881 |
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$ |
1,675 |
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Index |
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(35 |
) |
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(48 |
) |
% change |
|
12 |
% |
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Operating margin |
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44.1 |
% |
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42.5 |
% |
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Net income(1) |
$ |
1,550 |
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$ |
1,399 |
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Cash management net flows |
$ |
30 |
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$ |
11 |
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% change |
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11 |
% |
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Diluted EPS |
$ |
10.36 |
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$ |
9.28 |
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% change |
|
12 |
% |
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Total net flows |
$ |
82 |
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$ |
139 |
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_________________________ |
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_________________________ |
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(1) Net income represents net income attributable to BlackRock, Inc. (2) 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. |
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(1) Totals may not add due to rounding. |
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BUSINESS RESULTS
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Q2 2024 |
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Q2 2024 |
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Base fees(1) |
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Base fees(1) |
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June 30, 2024 |
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and securities |
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Q2 2024 |
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June 30, 2024 |
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and securities |
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AUM |
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lending revenue |
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(in millions), (unaudited) |
Net flows |
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AUM |
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lending revenue |
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% of Total |
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% of Total |
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RESULTS BY CLIENT TYPE |
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Retail |
$ |
5,695 |
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$ |
992,152 |
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$ |
1,053 |
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|
9 |
% |
|
27 |
% |
ETFs |
|
83,141 |
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|
3,855,774 |
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|
1,635 |
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|
37 |
% |
|
43 |
% |
Institutional: |
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Active |
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(2,059 |
) |
|
1,968,232 |
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|
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 |
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|
100 |
% |
|
100 |
% |
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|
|
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RESULTS BY INVESTMENT STYLE |
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Active |
$ |
(3,606 |
) |
$ |
2,703,506 |
|
$ |
1,706 |
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|
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 |
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|
100 |
% |
|
100 |
% |
|
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|
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RESULTS BY PRODUCT TYPE |
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Equity |
$ |
6,438 |
|
$ |
5,827,135 |
|
$ |
1,979 |
|
|
55 |
% |
|
51 |
% |
Fixed income |
|
35,409 |
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|
2,815,884 |
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|
895 |
|
|
26 |
% |
|
23 |
% |
Multi-asset |
|
4,460 |
|
|
921,412 |
|
|
313 |
|
|
9 |
% |
|
8 |
% |
Alternatives: |
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Illiquid alternatives |
|
1,987 |
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|
137,868 |
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|
241 |
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|
1 |
% |
|
6 |
% |
Liquid alternatives |
|
(1,009 |
) |
|
75,483 |
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|
141 |
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|
1 |
% |
|
4 |
% |
Currency and commodities |
|
4,081 |
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|
89,897 |
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|
59 |
|
|
1 |
% |
|
2 |
% |
Total alternatives |
|
5,059 |
|
|
303,248 |
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|
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 |
% |
(1)Base fees include investment advisory and administration fees.
INVESTMENT PERFORMANCE AT June 30, 2024(1)
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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 |
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% |
(1)Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 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, 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.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except 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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|
2024 |
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|
2023 |
|
|
Change |
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|
2024 |
|
|
Change |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory, administration fees and securities lending revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and securities lending revenue |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Employee compensation and benefits |
|
1,503 |
|
|
|
1,429 |
|
|
|
74 |
|
|
|
|
1,580 |
|
|
|
(77 |
) |
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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 interests |
|
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, Inc. common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) attributable to noncontrolling interests (2) |
$ |
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. common stockholders per share (3) |
$ |
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.
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 securities lending revenue: |
|
|
|
|
|
|
|
|
|
Investment advisory and administration fees |
$ |
7,348 |
|
|
$ |
6,762 |
|
|
$ |
586 |
|
|
Securities lending revenue |
|
305 |
|
|
|
351 |
|
|
|
(46 |
) |
|
Total investment advisory, administration fees and securities lending revenue |
|
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 interests |
|
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. common stockholders |
|
|
|
|
|
|
|
|
|
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 (loss) attributable to noncontrolling interests (2) |
$ |
304 |
|
|
$ |
265 |
|
|
$ |
39 |
|
|
Net income attributable to BlackRock, Inc. (3) |
$ |
3,023 |
|
|
$ |
2,599 |
|
|
$ |
424 |
|
|
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) |
$ |
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.
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 |
|
(1)Amounts include AUM attributable to the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction").
(2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(4)Amounts include commodity ETFs.
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 |
|
(1)Amounts include AUM attributable to the SpiderRock Transaction.
(2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.
(4)Amounts include commodity ETFs.
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 |
|
(1)Amounts include AUM attributable to the SpiderRock Transaction and the acquisition of Kreos Capital in August 2023.
(2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(4)Amounts include commodity ETFs.
SUMMARY OF REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
Three Months |
|
|
|
|
|
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 securities lending revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 fees and securities lending revenue |
|
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
•Investment advisory, administration fees and securities lending revenue increased $264 million from the second quarter of 2023 and $97 million from the first quarter of 2024, primarily driven by positive organic base fee growth and the impact of market beta on average AUM.
Securities lending revenue of $154 million decreased from $184 million in the second quarter of 2023, primarily reflecting lower spreads.
•Performance fees increased $46 million from the second quarter of 2023, primarily reflecting higher revenue from liquid alternatives and long-only products, partially offset by lower revenue from illiquid alternatives.
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.
•Technology services revenue increased $36 million from the second quarter of 2023 and $18 million from the first quarter of 2024, reflecting sustained demand for Aladdin technology offerings. Technology services annual contract value (“ACV”)(1) increased 10% from the second quarter of 2023.
(1)See note (4) to the condensed consolidated statements of income and supplemental information on page 13 for more information on ACV.
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the 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.
Highlights
•Employee compensation and benefits expense increased $74 million from the second quarter of 2023, reflecting higher incentive compensation, primarily as a result of higher operating income and performance fees.
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.
•Sales, asset and account expense increased $40 million from the second quarter of 2023 and $41 million from the first quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
•General and administration expense increased $41 million from the second quarter of 2023, primarily due to higher professional services expense, including higher acquisition-related transaction costs, and higher technology expense in the current quarter.
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 noncontrolling interests ("NCI") |
|
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 compensation plans(1) |
|
7 |
|
|
|
16 |
|
|
|
(9 |
) |
|
|
31 |
|
|
|
(24 |
) |
|
|
38 |
|
|
|
33 |
|
|
|
5 |
|
Nonoperating income (expense), net of NCI, as adjusted(2) |
$ |
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 compensation plans(1) |
|
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 compensation plans(1) |
|
7 |
|
|
|
16 |
|
|
|
(9 |
) |
|
|
31 |
|
|
|
(24 |
) |
|
|
38 |
|
|
|
33 |
|
|
|
5 |
|
Nonoperating income (expense), net of NCI, as adjusted(2) |
$ |
165 |
|
|
$ |
178 |
|
|
$ |
(13 |
) |
|
$ |
139 |
|
|
$ |
26 |
|
|
$ |
304 |
|
|
$ |
265 |
|
|
$ |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.
(2)Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 11 through 13.
(3)Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
(4)Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
(5)Amounts for the three and six months ended June 30, 2024, include earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024 and noncash pre-tax gains (losses) related to the revaluation of certain minority investments. In addition, amount for the three and six months ended June 30, 2024 includes a noncash pre-tax gain in connection with the SpiderRock Transaction of approximately $19 million.
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
•First quarter 2024 income tax expense included 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. In addition, first quarter 2024 income tax expense included $28 million of discrete tax benefits, including a benefit related to stock-based compensation awards that vested in the first quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) on deferred cash compensation plans (a) |
|
|
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Amounts included within general and administration expense.
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 plans (a) |
|
|
7 |
|
|
|
16 |
|
|
|
31 |
|
|
|
38 |
|
|
|
33 |
|
|
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2) |
|
$ |
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 |
|
|
(1)Non-GAAP adjustments, excluding income tax matters, are net of tax.
See note (3) to the condensed consolidated statements of income and supplemental information on page 13 for more information on as adjusted items.
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.
•Operating income, as adjusted, includes the following non-GAAP expense adjustments:
(a)Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
(b)Acquisition related costs. Acquisition related costs include adjustments related to amortization of intangible assets, other acquisition-related costs, including professional services expense and 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.
(c)Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
•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.
(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.
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.
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.
Q2 2024 Earnings Exhibit 99.2 July 15, 2024 Earnings Release Supplement
Institutional Equity Multi-asset Alternatives Institutional Fixed Income Alternatives Retail Equity Fixed Income Retail ETFs ETFs Active Active ETFs ETFs Index Index Americas Americas EMEA EMEA Asia-Pacific Asia-Pacific Cash Cash Cash Cash Multi-asset A broadly diversified business across clients, products and geographies Base fees include investment advisory, administration fees and securities lending revenue. Base Fees and AUM by region data is based on client domicile. 1 Client Type Style Product Type Region Assets Under Management of $10.6 trillion at June 30, 2024 Q2 2024 Base Fees and Securities Lending Revenue of $3.9 billion
Net flows($ in billions) Total BlackRock Retail Long-term Institutional Long-term LTM organic asset growth rate (%) LTM organic base fee growth rate (%) LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets. LTM organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows for the LTM period by the base fee run-rate at the beginning of the period. Totals may not add due to rounding. 2 (2)% Institutional Active Institutional Index 2% (3)% (2)% (2)% (1)% 0% ETFs 8% 9% 8% 7% 6% 7% 7% 6% 8% 3% 3% 4% 4% 3% 3% 1% 0% 0% 0% 1% 1% 1% Long-term Cash Advisory 5% 4% 5% 2% 0% 4% 4% 5% 5% 3% 1% (1)% 3% 3% (2)% 4%
Profitability ($ in millions, except per share data) For further information and reconciliations to GAAP, see page 10 of this earnings release supplement, notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Operating Income, as adjusted Operating Margin, as adjusted Net Income, as adjusted EPS, as adjusted Operating Income and Margin, as adjusted Net Income and EPS, as adjusted 3
Capital management (amounts in millions, except per share data) (1) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. Share repurchases and weighted-average diluted shares Share repurchases(1) Weighted-average diluted shares 4 Dividends per share
Major market indices and exchange rates Source: Bloomberg (1) Revenue weighted composite index is calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The performance information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results. 5
Quarterly revenue($ in millions) $342 $77 Q2 2024 compared to Q2 2023 Q2 2024 compared to Q1 2024 6 Percentage Change Year-over-Year Sequential Base fees 9 % 3 % Securities lending revenue (16) % 2 % Performance fees 39 % (20) % Technology services revenue 10 % 5 % Distribution fees - % 3 % Advisory and other revenue (5) % (10) % Total 8 % 2 %
$264 $97 Q2 2024 compared to Q2 2023 Q2 2024 compared to Q1 2024 Quarterly investment advisory, administration fees and securities lending revenue($ in millions) 7
Quarterly expense, as adjusted($ in millions) $136 $(29) Q2 2024 compared to Q2 2023 Q2 2024 compared to Q1 2024 8 Percentage Change Year-over-Year Sequential Employee comp. & benefits 4 % (5) % Sales, asset and account 4 % 5 % General & administration 7 % 1 % Total 5 % (1) % Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items by including a new “sales, asset, and account expense” income statement caption. Such expense line items have been recast for 2023 to conform with the new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. For information and reconciliations on as adjusted items to GAAP, see page 10 of this earnings release supplement, notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
Alternatives client assets($ in billions, as of June 30, 2024) Definitions: Client Assets: Alternatives assets at BlackRock across AUM and non-fee paying committed capital Fee Paying AUM: Assets reported in BlackRock’s AUM. Includes both invested capital and committed capital that is fee-paying in its commitment stage Non-Fee Paying Commitments: Uninvested commitments, which are currently non-fee paying and are not included in AUM. These commitments are expected to generate fees and will be counted in AUM and flows as the capital is deployed over time Liquid Alternatives: Includes hedge funds and hedge fund solutions (funds of funds) Liquid Credit: Active liquid credit strategies (such as high yield, bank loans, and collateralized loans) included in fixed income AUM Totals may not add due to rounding.
Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to (i) net impact of compensation expense and hedge (gain) loss on deferred cash compensation plans, (ii) amortization of intangible assets, (iii) acquisition-related compensation costs, (iv) acquisition-related transaction costs, (v) contingent consideration fair value adjustments, (vi) Lease costs – New York, (vii) net income (loss) attributable to noncontrolling interests, (viii) a reduction of indemnification asset, (ix) restructuring charges and (x) income tax matters, as applicable. For further information and reconciliation between GAAP and as adjusted items, see notes (1) through (3) to the condensed consolidated statements of income and supplemental information in the current earnings release, as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
Important notes This presentation, 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 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. This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 10 of this earnings release supplement, our current earnings release dated July 15, 2024, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com.
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