Revenue (Tables)

6 Months Ended

Jun. 30, 2024

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 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

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 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.

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 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

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 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)

Schedule of Changes in Technology Services Deferred Revenue Liability

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.