| Summary of Investment Advisory, Administration Fees and Securities Lending Revenue by Type |
The table below presents detail of revenue for the three months ended March 31, 2022 and 2021 and includes the product mix of investment advisory, administration fees and securities lending revenue, and performance fees.
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
(in millions) |
2022 |
|
|
2021 |
|
|
Investment advisory, administration fees and
securities lending revenue: |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Active |
$ |
616 |
|
|
$ |
576 |
|
|
ETFs |
|
1,158 |
|
|
|
1,068 |
|
|
Non-ETF Index |
|
187 |
|
|
|
176 |
|
|
Equity subtotal |
|
1,961 |
|
|
|
1,820 |
|
|
Fixed income: |
|
|
|
|
|
|
|
|
Active |
|
534 |
|
|
|
525 |
|
|
ETFs |
|
289 |
|
|
|
295 |
|
|
Non-ETF Index |
|
118 |
|
|
|
113 |
|
|
Fixed income subtotal |
|
941 |
|
|
|
933 |
|
|
Multi-asset |
|
359 |
|
|
|
328 |
|
|
Alternatives: |
|
|
|
|
|
|
|
|
Illiquid alternatives |
|
179 |
|
|
|
168 |
|
|
Liquid alternatives |
|
167 |
|
|
|
147 |
|
|
Currency and commodities(1) |
|
56 |
|
|
|
53 |
|
|
Alternatives subtotal |
|
402 |
|
|
|
368 |
|
|
Long-term |
|
3,663 |
|
|
|
3,449 |
|
|
Cash management |
|
170 |
|
|
|
143 |
|
|
Total investment advisory, administration fees and
securities lending revenue |
|
3,833 |
|
|
|
3,592 |
|
|
Investment advisory performance fees: |
|
|
|
|
|
|
|
|
Equity |
|
12 |
|
|
|
26 |
|
|
Fixed income |
|
9 |
|
|
|
14 |
|
|
Multi-asset |
|
5 |
|
|
|
8 |
|
|
Alternatives: |
|
|
|
|
|
|
|
|
Illiquid alternatives |
|
37 |
|
|
|
7 |
|
|
Liquid alternatives |
|
35 |
|
|
|
74 |
|
|
Alternatives subtotal |
|
72 |
|
|
|
81 |
|
|
Total performance fees |
|
98 |
|
|
|
129 |
|
|
Technology services revenue |
|
341 |
|
|
|
306 |
|
|
Distribution fees: |
|
|
|
|
|
|
|
|
Retrocessions |
|
279 |
|
|
|
238 |
|
|
12b-1 fees (US mutual fund distribution fees) |
|
88 |
|
|
|
85 |
|
|
Other |
|
14 |
|
|
|
17 |
|
|
Total distribution fees |
|
381 |
|
|
|
340 |
|
|
Advisory and other revenue: |
|
|
|
|
|
|
|
|
Advisory |
|
16 |
|
|
|
15 |
|
|
Other |
|
30 |
|
|
|
16 |
|
|
Total advisory and other revenue |
|
46 |
|
|
|
31 |
|
|
Total revenue |
$ |
4,699 |
|
|
$ |
4,398 |
|
|
|
|
|
|
|
|
|
|
_____________________________________________________________ (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 |
|
|
|
March 31, |
|
|
(in millions) |
2022 |
|
|
2021 |
|
|
By client type: |
|
|
|
|
|
|
|
|
Retail |
$ |
1,224 |
|
|
$ |
1,125 |
|
|
ETFs |
|
1,501 |
|
|
|
1,417 |
|
|
Institutional: |
|
|
|
|
|
|
|
|
Active |
|
675 |
|
|
|
650 |
|
|
Index |
|
263 |
|
|
|
257 |
|
|
Total institutional |
|
938 |
|
|
|
907 |
|
|
Long-term |
|
3,663 |
|
|
|
3,449 |
|
|
Cash management |
|
170 |
|
|
|
143 |
|
|
Total |
$ |
3,833 |
|
|
$ |
3,592 |
|
|
|
|
|
|
|
|
|
|
|
By investment style: |
|
|
|
|
|
|
|
|
Active |
$ |
1,851 |
|
|
$ |
1,739 |
|
|
Index and ETFs |
|
1,812 |
|
|
|
1,710 |
|
|
Long-term |
|
3,663 |
|
|
|
3,449 |
|
|
Cash management |
|
170 |
|
|
|
143 |
|
|
Total |
$ |
3,833 |
|
|
$ |
3,592 |
|
|
|
|
|
|
|
|
|
|
|
| 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 March 31, 2022 and 2021:
March 31, 2022
|
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2025 |
|
|
Thereafter |
|
|
Total |
|
|
Investment advisory and
administration fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternatives(1)(2) |
$ |
130 |
|
|
$ |
159 |
|
|
$ |
96 |
|
|
$ |
58 |
|
|
$ |
38 |
|
|
$ |
481 |
|
March 31, 2021
|
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
2021 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Thereafter |
|
|
Total |
|
|
Investment advisory and
administration fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternatives(1)(2) |
$ |
118 |
|
|
$ |
154 |
|
|
$ |
122 |
|
|
$ |
75 |
|
|
$ |
47 |
|
|
$ |
516 |
|
|
(1) |
Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at March 31, 2022 and 2021. 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 condensed consolidated statements of financial condition, for the three months ended March 31, 2022 and 2021:
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
(in millions) |
2022 |
|
|
2021 |
|
|
Beginning balance |
$ |
1,508 |
|
|
$ |
584 |
|
|
Net increase (decrease) in unrealized allocations |
|
223 |
|
|
|
166 |
|
|
Performance fee revenue recognized |
|
(32 |
) |
|
|
(2 |
) |
|
Ending balance |
$ |
1,699 |
|
|
$ |
748 |
|
|
| 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 March 31, 2022 and 2021:
March 31, 2022
|
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2025 |
|
|
Thereafter |
|
|
Total |
|
|
Technology services revenue(1)(2) |
$ |
92 |
|
|
$ |
60 |
|
|
$ |
37 |
|
|
$ |
22 |
|
|
$ |
18 |
|
|
$ |
229 |
|
March 31, 2021
|
|
Remainder of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
2021 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2024 |
|
|
Thereafter |
|
|
Total |
|
|
Technology services revenue(1)(2) |
$ |
90 |
|
|
$ |
64 |
|
|
$ |
37 |
|
|
$ |
17 |
|
|
$ |
11 |
|
|
$ |
219 |
|
|
(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 three months ended March 31, 2022 and 2021, which is included in other liabilities on the condensed consolidated statements of financial condition:
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
(in millions) |
2022 |
|
|
2021 |
|
|
Beginning balance |
$ |
122 |
|
|
$ |
123 |
|
|
Additions (1) |
|
22 |
|
|
|
18 |
|
|
Revenue recognized that was included
in the beginning balance |
|
(31 |
) |
|
|
(30 |
) |
|
Ending balance |
$ |
113 |
|
|
$ |
111 |
|
|
(1) |
Amounts are net of revenue recognized. |
|