v3.24.2.u1
Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

15. Revenue

The table below presents detail of revenue for the three and six months ended June 30, 2024 and 2023 and includes the product mix of investment advisory, administration fees and securities lending revenue, and performance fees.

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

(in millions)

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and
   securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Active

$

539

 

 

$

506

 

 

$

1,055

 

 

$

1,006

 

ETFs

 

1,250

 

 

 

1,102

 

 

 

2,440

 

 

 

2,180

 

Non-ETF index

 

190

 

 

 

197

 

 

 

377

 

 

 

374

 

Equity subtotal

 

1,979

 

 

 

1,805

 

 

 

3,872

 

 

 

3,560

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

Active

 

481

 

 

 

482

 

 

 

965

 

 

 

950

 

ETFs

 

326

 

 

 

309

 

 

 

653

 

 

 

604

 

Non-ETF index

 

88

 

 

 

88

 

 

 

180

 

 

 

175

 

Fixed income subtotal

 

895

 

 

 

879

 

 

 

1,798

 

 

 

1,729

 

Multi-asset

 

313

 

 

 

300

 

 

 

627

 

 

 

596

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

241

 

 

 

206

 

 

 

481

 

 

 

407

 

Liquid alternatives

 

141

 

 

 

146

 

 

 

279

 

 

 

291

 

Currency and commodities(1)

 

59

 

 

 

49

 

 

 

104

 

 

 

95

 

Alternatives subtotal

 

441

 

 

 

401

 

 

 

864

 

 

 

793

 

Long-term

 

3,628

 

 

 

3,385

 

 

 

7,161

 

 

 

6,678

 

Cash management

 

247

 

 

 

226

 

 

 

492

 

 

 

435

 

Total investment advisory, administration fees
   and securities lending revenue

 

3,875

 

 

 

3,611

 

 

 

7,653

 

 

 

7,113

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

Equity

 

28

 

 

 

15

 

 

 

36

 

 

 

21

 

Fixed income

 

5

 

 

 

—

 

 

 

9

 

 

 

1

 

Multi-asset

 

11

 

 

 

3

 

 

 

13

 

 

 

18

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

68

 

 

 

79

 

 

 

193

 

 

 

100

 

Liquid alternatives

 

52

 

 

 

21

 

 

 

117

 

 

 

33

 

Alternatives subtotal

 

120

 

 

 

100

 

 

 

310

 

 

 

133

 

Total investment advisory performance fees

 

164

 

 

 

118

 

 

 

368

 

 

 

173

 

Technology services revenue

 

395

 

 

 

359

 

 

 

772

 

 

 

699

 

Distribution fees

 

318

 

 

 

319

 

 

 

628

 

 

 

638

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

11

 

 

 

31

 

 

 

24

 

 

 

45

 

Other

 

42

 

 

 

25

 

 

 

88

 

 

 

38

 

Total advisory and other revenue

 

53

 

 

 

56

 

 

 

112

 

 

 

83

 

Total revenue

$

4,805

 

 

$

4,463

 

 

$

9,533

 

 

$

8,706

 

 

(1)
Amounts include commodity ETFs.

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

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

(in millions)

2024

 

 

2023

 

 

2024

 

 

2023

 

By client type:

 

 

 

 

 

 

 

 

 

 

 

Retail

$

1,053

 

 

$

1,044

 

 

$

2,094

 

 

$

2,076

 

ETFs

 

1,635

 

 

 

1,460

 

 

 

3,202

 

 

 

2,878

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

Active

 

710

 

 

 

640

 

 

 

1,407

 

 

 

1,262

 

Index

 

230

 

 

 

241

 

 

 

458

 

 

 

462

 

Total institutional

 

940

 

 

 

881

 

 

 

1,865

 

 

 

1,724

 

Long-term

 

3,628

 

 

 

3,385

 

 

 

7,161

 

 

 

6,678

 

Cash management

 

247

 

 

 

226

 

 

 

492

 

 

 

435

 

Total

$

3,875

 

 

$

3,611

 

 

$

7,653

 

 

$

7,113

 

 

 

 

 

 

 

 

 

 

 

 

 

By investment style:

 

 

 

 

 

 

 

 

 

 

 

Active

$

1,706

 

 

$

1,635

 

 

$

3,387

 

 

$

3,241

 

Index and ETFs

 

1,922

 

 

 

1,750

 

 

 

3,774

 

 

 

3,437

 

Long-term

 

3,628

 

 

 

3,385

 

 

 

7,161

 

 

 

6,678

 

Cash management

 

247

 

 

 

226

 

 

 

492

 

 

 

435

 

Total

$

3,875

 

 

$

3,611

 

 

$

7,653

 

 

$

7,113

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Advisory and Administration Fees – Remaining Performance Obligation

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 June 30, 2024 and 2023:

June 30, 2024

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

Total

 

Investment advisory and
   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

100

 

 

$

182

 

 

$

163

 

 

$

124

 

 

$

50

 

 

$

619

 

 

June 30, 2023

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Investment advisory and
   administration fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternatives(1)(2)

$

87

 

 

$

131

 

 

$

100

 

 

$

84

 

 

$

62

 

 

$

464

 

 

(1)
Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at June 30, 2024 and 2023. 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.

 

Change in Deferred Carried Interest Liability

The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the condensed consolidated statements of financial condition, for the three and six months ended June 30, 2024 and 2023:

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

(in millions)

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning balance

$

1,814

 

 

$

1,458

 

 

$

1,783

 

 

$

1,420

 

Net increase (decrease) in unrealized allocations

 

130

 

 

 

265

 

 

 

272

 

 

 

319

 

Performance fee revenue recognized

 

(58

)

 

 

(72

)

 

 

(169

)

 

 

(88

)

Ending balance

$

1,886

 

 

$

1,651

 

 

$

1,886

 

 

$

1,651

 

 

Technology Services Revenue – Remaining Performance Obligation

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 June 30, 2024 and 2023:

June 30, 2024

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

78

 

 

$

88

 

 

$

64

 

 

$

36

 

 

$

35

 

 

$

301

 

 

June 30, 2023

 

Remainder of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

Technology services revenue(1)(2)

$

69

 

 

$

73

 

 

$

46

 

 

$

33

 

 

$

25

 

 

$

246

 

 

(1)
Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.
(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.

In addition to amounts disclosed in the tables above, certain technology services contracts require fixed minimum fees, which are billed on a monthly or quarterly basis in arrears. The Company recognizes such revenue as services are performed. As of June 30, 2024, the estimated fixed minimum fees for the remainder of the year approximated $560 million. The term for these contracts, which are either in their initial or renewal period, ranges from one to five years.

The table below presents changes in the technology services deferred revenue liability for the three and six months ended June 30, 2024 and 2023, which is included in other liabilities on the condensed consolidated statements of financial condition:

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

(in millions)

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning balance

$

130

 

 

$

120

 

 

$

133

 

 

$

125

 

Additions(1)

 

21

 

 

 

27

 

 

 

42

 

 

 

48

 

Revenue recognized that was included
   in the beginning balance

 

(31

)

 

 

(25

)

 

 

(55

)

 

 

(51

)

Ending balance

$

120

 

 

$

122

 

 

$

120

 

 

$

122

 

 

(1)
Amounts are net of revenue recognized.