Revenue (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Investment Advisory, Administration Fees and Securities Lending Revenue by Type

The table below presents detail of revenue for 2023, 2022 and 2021 and includes the product mix of investment advisory, administration fees and securities lending revenue and performance fees.


(in millions)	2023		2022		2021
Revenue:
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	2,000	$	2,147	$	2,571
ETFs		4,418		4,345		4,658
Non-ETF Index		743		711		771
Equity subtotal		7,161		7,203		8,000
Fixed income:
Active		1,897		1,977		2,191
ETFs		1,230		1,122		1,201
Non-ETF Index		353		396		471
Fixed income subtotal		3,480		3,495		3,863
Multi-asset		1,203		1,299		1,414
Alternatives:
Illiquid alternatives		889		741		668
Liquid alternatives		572		633		629
Currency and commodities(1)		185		216		216
Alternatives subtotal		1,646		1,590		1,513
Long-term		13,490		13,587		14,790
Cash management		909		864		470
Total investment advisory, administration fees and securities lending revenue		14,399		14,451		15,260
Investment advisory performance fees:
Equity		99		49		153
Fixed income		4		25		48
Multi-asset		28		25		32
Alternatives:
Illiquid alternatives		273		296		208
Liquid alternatives		150		119		702
Alternatives subtotal		423		415		910
Total investment advisory performance fees		554		514		1,143
Technology services revenue		1,485		1,364		1,281
Distribution fees		1,262		1,381		1,521
Advisory and other revenue:
Advisory		81		56		68
Other		78		107		101
Total advisory and other revenue		159		163		169
Total revenue	$	17,859	$	17,873	$	19,374

(1)

Amounts include commodity ETFs.

The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment style:


(in millions)	2023		2022		2021
By client type:
Retail	$	4,115	$	4,442	$	4,957
ETFs		5,834		5,671		6,074
Institutional:
Active		2,623		2,535		2,675
Index		918		939		1,084
Total institutional		3,541		3,474		3,759
Long-term		13,490		13,587		14,790
Cash management		909		864		470
Total	$	14,399	$	14,451	$	15,260

By investment style:
Active	$	6,534	$	6,789	$	7,455
Index and ETFs		6,956		6,798		7,335
Long-term		13,490		13,587		14,790
Cash management		909		864		470
Total	$	14,399	$	14,451	$	15,260

Schedule of Estimated Investment Advisory, Administration Fees Expected to be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations

The tables below present estimated investment advisory and administration fees expected to be recognized in the future related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:

December 31, 2023


(in millions)	2024		2025		2026		Thereafter		Total
Investment advisory and administration fees:
Alternatives(1)(2)	$	204	$	174	$	152	$	164	$	694

December 31, 2022


(in millions)	2023		2024		2025		Thereafter		Total
Investment advisory and administration fees:
Alternatives(1)(2)	$	157	$	111	$	78	$	102	$	448

(1)

Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at December 31, 2023 and 2022. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.

(2)

The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and (b) variable consideration related to future service periods.

Schedule of Changes in Deferred Carried Interest Liability

The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the consolidated statements of financial condition, for the year ended December 31, 2023 and 2022:


(in millions)	2023			2022
Beginning balance	$	1,420		$	1,508
Net increase (decrease) in unrealized allocations		577			175
Performance fee revenue recognized		(214	)		(263	)
Ending balance	$	1,783		$	1,420

Schedule of Estimated Technology Services Revenue Expected to Be Recognized in Future, Related to Unsatisfied Portion of Performance Obligations

The tables below present estimated technology services revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:

December 31, 2023


(in millions)	2024		2025		2026		Thereafter		Total
Technology services revenue(1)(2)	$	131	$	73	$	56	$	59	$	319

December 31, 2022


(in millions)	2023		2024		2025		Thereafter		Total
Technology services revenue(1)(2)	$	112	$	51	$	35	$	40	$	238

(1)

Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.

(2)

Schedule of Changes in Technology Services Deferred Revenue Liability

The table below presents changes in the technology services deferred revenue liability for the year ended December 31, 2023 and 2022, which is included in other liabilities on the consolidated statements of financial condition:


(in millions)	2023			2022
Beginning balance	$	125		$	122
Additions(1)		92			99
Revenue recognized that was included in the beginning balance		(84	)		(96	)
Ending balance	$	133		$	125

(1)

Amounts are net of revenue recognized.