Revenue (Tables)

12 Months Ended

Dec. 31, 2020

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 2020, 2019 and 2018 and includes the product mix of investment advisory, administration fees and securities lending revenue and performance fees.

(in millions)	2020		2019		2018
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	1,737	$	1,554	$	1,654
iShares ETFs		3,499		3,495		3,549
Non-ETF index		664		667		685
Equity subtotal		5,900		5,716		5,888
Fixed income:
Active		1,957		1,918		1,840
iShares ETFs		1,119		963		825
Non-ETF index		463		405		387
Fixed income subtotal		3,539		3,286		3,052
Multi-asset		1,163		1,148		1,176
Alternatives:
Illiquid alternatives		577		488		348
Liquid alternatives		502		413		384
Currency and commodities⁽¹⁾		168		108		98
Alternatives subtotal		1,247		1,009		830
Long-term		11,849		11,159		10,946
Cash management		790		618		607
Total investment advisory, administration fees and securities lending revenue		12,639		11,777		11,553
Investment advisory performance fees:
Equity		91		36		91
Fixed income		35		10		8
Multi-asset		35		19		19
Alternatives:
Illiquid alternatives		83		136		70
Liquid alternatives		860		249		224
Alternatives subtotal		943		385		294
Total performance fees		1,104		450		412
Technology services revenue		1,139		974		785
Distribution fees:
Retrocessions		736		658		709
12b-1 fees (US mutual fund distribution fees)		337		358		406
Other		58		53		40
Total distribution fees		1,131		1,069		1,155
Advisory and other revenue:
Advisory		68		99		113
Other		124		170		180
Total advisory and other revenue		192		269		293
Total revenue	$	16,205	$	14,539	$	14,198

(1)	Amounts include commodity iShares ETFs.

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

(in millions)	2020		2019		2018
By client type:
Retail	$	3,651	$	3,411	$	3,413
iShares ETFs		4,788		4,564		4,468
Institutional:
Active		2,342		2,172		2,044
Index		1,068		1,012		1,021
Total institutional		3,410		3,184		3,065
Long-term		11,849		11,159		10,946
Cash management		790		618		607
Total	$	12,639	$	11,777	$	11,553

By investment style:
Active	$	5,914	$	5,510	$	5,391
Index and iShares ETFs		5,935		5,649		5,555
Long-term		11,849		11,159		10,946
Cash management		790		618		607
Total	$	12,639	$	11,777	$	11,553

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, 2020 and 2019:

December 31, 2020

(in millions)	2021			2022		2023	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	148	$	144	$	112	$	107	$	511

December 31, 2019

(in millions)	2020			2021		2022	Thereafter		Total
Investment advisory and administration fees:
Alternatives⁽¹⁾⁽²⁾	$	98	$	88	$	74	$	107	$	367

(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, 2020 and 2019. 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 (1) performance obligations with an original duration of one year or less, and (2) 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, 2020 and 2019:

(in millions)	2020			2019
Beginning balance	$	483		$	293
Net increase (decrease) in unrealized allocations		150			259
Performance fee revenue recognized		(49	)		(75	)
Other		—			6
Ending balance	$	584		$	483

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, 2020 and 2019:

December 31, 2020

(in millions)	2021					2022				2023			Thereafter				Total
Technology services revenue⁽¹⁾⁽²⁾	$	118			$	58			$	33			$	22			$	231

December 31, 2019

(in millions)	2020					2021				2022			Thereafter				Total
Technology services revenue⁽¹⁾⁽²⁾	$	117			$	53			$	31			$	20			$	221

(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 (1) performance obligations with an original duration of one year or less, and (2) variable consideration related to future service periods.

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, 2020 and 2019, which is included in other liabilities on the consolidated statements of financial condition:

(in millions)	2020			2019
Beginning balance	$	116		$	70
Additions⁽¹⁾		89			86
Revenue recognized that was included in the beginning balance		(82	)		(40	)
Ending balance	$	123		$	116

(1)	Amounts are net of revenue recognized.