| Revenue |
17. Revenue
The table below presents detail of revenue for 2021, 2020 and 2019 and includes the product mix of investment advisory, administration fees and securities lending revenue and performance fees.
|
(in millions) |
2021 |
|
|
2020 |
|
|
2019 |
|
|
Investment advisory, administration fees and securities lending revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Active |
$ |
2,571 |
|
|
$ |
1,737 |
|
|
$ |
1,554 |
|
|
ETFs |
|
4,658 |
|
|
|
3,499 |
|
|
|
3,495 |
|
|
Non-ETF index |
|
771 |
|
|
|
664 |
|
|
|
667 |
|
|
Equity subtotal |
|
8,000 |
|
|
|
5,900 |
|
|
|
5,716 |
|
|
Fixed income: |
|
|
|
|
|
|
|
|
|
|
|
|
Active |
|
2,191 |
|
|
|
1,957 |
|
|
|
1,918 |
|
|
ETFs |
|
1,201 |
|
|
|
1,119 |
|
|
|
963 |
|
|
Non-ETF index |
|
471 |
|
|
|
463 |
|
|
|
405 |
|
|
Fixed income subtotal |
|
3,863 |
|
|
|
3,539 |
|
|
|
3,286 |
|
|
Multi-asset |
|
1,414 |
|
|
|
1,163 |
|
|
|
1,148 |
|
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
|
668 |
|
|
|
577 |
|
|
|
488 |
|
|
Liquid alternatives |
|
629 |
|
|
|
502 |
|
|
|
413 |
|
|
Currency and commodities(1) |
|
216 |
|
|
|
168 |
|
|
|
108 |
|
|
Alternatives subtotal |
|
1,513 |
|
|
|
1,247 |
|
|
|
1,009 |
|
|
Long-term |
|
14,790 |
|
|
|
11,849 |
|
|
|
11,159 |
|
|
Cash management |
|
470 |
|
|
|
790 |
|
|
|
618 |
|
|
Total investment advisory, administration fees and securities lending revenue |
|
15,260 |
|
|
|
12,639 |
|
|
|
11,777 |
|
|
Investment advisory performance fees: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
153 |
|
|
|
91 |
|
|
|
36 |
|
|
Fixed income |
|
48 |
|
|
|
35 |
|
|
|
10 |
|
|
Multi-asset |
|
32 |
|
|
|
35 |
|
|
|
19 |
|
|
Alternatives: |
|
|
|
|
|
|
|
|
|
|
|
|
Illiquid alternatives |
|
208 |
|
|
|
83 |
|
|
|
136 |
|
|
Liquid alternatives |
|
702 |
|
|
|
860 |
|
|
|
249 |
|
|
Alternatives subtotal |
|
910 |
|
|
|
943 |
|
|
|
385 |
|
|
Total performance fees |
|
1,143 |
|
|
|
1,104 |
|
|
|
450 |
|
|
Technology services revenue |
|
1,281 |
|
|
|
1,139 |
|
|
|
974 |
|
|
Distribution fees: |
|
|
|
|
|
|
|
|
|
|
|
|
Retrocessions |
|
1,098 |
|
|
|
736 |
|
|
|
658 |
|
|
12b-1 fees (US mutual fund distribution fees) |
|
358 |
|
|
|
337 |
|
|
|
358 |
|
|
Other |
|
65 |
|
|
|
58 |
|
|
|
53 |
|
|
Total distribution fees |
|
1,521 |
|
|
|
1,131 |
|
|
|
1,069 |
|
|
Advisory and other revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Advisory |
|
68 |
|
|
|
68 |
|
|
|
99 |
|
|
Other |
|
101 |
|
|
|
124 |
|
|
|
170 |
|
|
Total advisory and other revenue |
|
169 |
|
|
|
192 |
|
|
|
269 |
|
|
Total revenue |
$ |
19,374 |
|
|
$ |
16,205 |
|
|
$ |
14,539 |
|
|
(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) |
2021 |
|
|
2020 |
|
|
2019 |
|
|
By client type: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
4,957 |
|
|
$ |
3,651 |
|
|
$ |
3,411 |
|
|
ETFs |
|
6,074 |
|
|
|
4,788 |
|
|
|
4,564 |
|
|
Institutional: |
|
|
|
|
|
|
|
|
|
|
|
|
Active |
|
2,675 |
|
|
|
2,342 |
|
|
|
2,172 |
|
|
Index |
|
1,084 |
|
|
|
1,068 |
|
|
|
1,012 |
|
|
Total institutional |
|
3,759 |
|
|
|
3,410 |
|
|
|
3,184 |
|
|
Long-term |
|
14,790 |
|
|
|
11,849 |
|
|
|
11,159 |
|
|
Cash management |
|
470 |
|
|
|
790 |
|
|
|
618 |
|
|
Total |
$ |
15,260 |
|
|
$ |
12,639 |
|
|
$ |
11,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By investment style: |
|
|
|
|
|
|
|
|
|
|
|
|
Active |
$ |
7,455 |
|
|
$ |
5,914 |
|
|
$ |
5,510 |
|
|
Index and ETFs |
|
7,335 |
|
|
|
5,935 |
|
|
|
5,649 |
|
|
Long-term |
|
14,790 |
|
|
|
11,849 |
|
|
|
11,159 |
|
|
Cash management |
|
470 |
|
|
|
790 |
|
|
|
618 |
|
|
Total |
$ |
15,260 |
|
|
$ |
12,639 |
|
|
$ |
11,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2021 and 2020:
December 31, 2021
|
(in millions) |
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Thereafter |
|
|
Total |
|
|
Investment advisory and administration fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternatives(1)(2) |
$ |
161 |
|
|
$ |
147 |
|
|
$ |
86 |
|
|
$ |
77 |
|
|
$ |
471 |
|
December 31, 2020
|
(in millions) |
2021 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Thereafter |
|
|
Total |
|
|
Investment advisory and administration fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternatives(1)(2) |
$ |
148 |
|
|
$ |
144 |
|
|
$ |
112 |
|
|
$ |
107 |
|
|
$ |
511 |
|
|
(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, 2021 and 2020. 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. |
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 consolidated statements of financial condition, for the year ended December 31, 2021 and 2020:
|
(in millions) |
2021 |
|
|
2020 |
|
|
Beginning balance |
$ |
584 |
|
|
$ |
483 |
|
|
Net increase (decrease) in unrealized allocations |
|
1,083 |
|
|
|
150 |
|
|
Performance fee revenue recognized |
|
(159 |
) |
|
|
(49 |
) |
|
Ending balance |
$ |
1,508 |
|
|
$ |
584 |
|
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 December 31, 2021 and 2020:
December 31, 2021
|
(in millions) |
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Thereafter |
|
|
Total |
|
|
Technology services revenue(1)(2) |
$ |
115 |
|
|
$ |
55 |
|
|
$ |
33 |
|
|
$ |
36 |
|
|
$ |
239 |
|
December 31, 2020
|
(in millions) |
2021 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Thereafter |
|
|
Total |
|
|
Technology services revenue(1)(2) |
$ |
118 |
|
|
$ |
58 |
|
|
$ |
33 |
|
|
$ |
22 |
|
|
$ |
231 |
|
|
(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. |
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 December 31, 2021, the estimated fixed minimum fees for 2022 for outstanding contracts approximated $790 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 year ended December 31, 2021 and 2020, which is included in other liabilities on the consolidated statements of financial condition:
|
(in millions) |
2021 |
|
|
2020 |
|
|
Beginning balance |
$ |
123 |
|
|
$ |
116 |
|
|
Additions(1) |
|
94 |
|
|
|
89 |
|
|
Revenue recognized that was included in the beginning balance |
|
(95 |
) |
|
|
(82 |
) |
|
Ending balance |
$ |
122 |
|
|
$ |
123 |
|
|
(1) |
Amounts are net of revenue recognized. |
|