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BLK Blackrock

Filed: 15 Apr 21, 7:44am

Exhibit 99.1

 

 

 

 

 

INVESTOR RELATIONS:

Samantha Tortora      212.810.5397

MEDIA RELATIONS:

Brian Beades      212.810.5596

 

BlackRock Reports First Quarter 2021 Diluted EPS of $7.77

New York, April 15, 2021 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2021.

 

 

 

 

$172 billion of quarterly total net inflows, or 8% annualized organic asset growth, driven by continued momentum across the platform, with positive flows across all regions, investment styles and product types

Significantly higher annualized organic base fee growth in the quarter reflects strength of active capabilities across all product types

19% increase in revenue year-over-year reflects strong organic growth, higher performance fees and 12% growth in technology services revenue

Year-over-year increases in GAAP operating income (126%) and diluted EPS (51%) impacted by charitable contribution in the first quarter of 2020, which was excluded from as adjusted results

21% increase in as adjusted operating income year-over-year includes the impact of $178 million of fund launch costs in the current quarter

18% increase in as adjusted diluted EPS year-over-year also reflects lower nonoperating income and a higher effective tax rate, partially offset by a lower diluted share count, in the current quarter

Consistent capital management supported by $300 million of share repurchases in the current quarter and 14% increase in quarterly cash dividend to $4.13 per share

 

Laurence D. Fink, Chairman and CEO:

“BlackRock’s deep sense of responsibility to help more and more people experience financial well-being has guided significant investments in our business over time, positioning us to deliver strong results for all of our stakeholders today. By evolving to stay ahead of clients’ needs, we’ve built a platform equipped to provide whole portfolio solutions that include index, active, cash and alternative strategies, sustainable investing capabilities, industry-leading technology and a voice that helps guide our clients as they adapt to a changing world.

“We generated a record $172 billion of total net inflows in the quarter, our fourth consecutive quarter with over $100 billion of net inflows. Flows represented 8% annualized organic asset and a record 14% annualized organic base fee growth, as clients contributed $59 billion to BlackRock’s active platform and demand remained strong for ETFs and cash. Consistently strong results, including 14% organic base fee growth over the last twelve months, reflect the benefits of our investments over time.  

“BlackRock’s differentiated platform and our insights on some of the biggest issues society is facing today are resonating with clients. To help them navigate toward a net zero world, we’re systematically integrating climate and broader sustainability factors into our portfolio management process. Our recently announced partnership with Temasek to provide funding for decarbonization solutions is the latest of many examples of how we continue to innovate.

“I am excited by the magnitude of opportunities in front of BlackRock. We remain committed to executing our strategy, evolving our business, strengthening our culture and living our purpose as we invest for the future to deliver value for all of our stakeholders.”

 

FINANCIAL RESULTS

 

Q1

 

 

Q1

 

(in millions, except per share data)

2021

 

 

2020

 

AUM

$

9,007,411

 

 

$

6,466,668

 

% change

 

39

%

 

 

 

 

Average AUM

$

8,782,351

 

 

$

7,124,711

 

% change

 

23

%

 

 

 

 

Total net flows

$

171,643

 

 

$

34,988

 

 

 

 

 

 

 

 

 

GAAP basis:

 

 

 

 

 

 

 

Revenue

$

4,398

 

 

$

3,710

 

% change

 

19

%

 

 

 

 

Operating income

$

1,545

 

 

$

684

 

% change

 

126

%

 

 

 

 

Operating margin

 

35.1

%

 

 

18.4

%

Net income(1)

$

1,199

 

 

$

806

 

% change

 

49

%

 

 

 

 

Diluted EPS

$

7.77

 

 

$

5.15

 

% change

 

51

%

 

 

 

 

Weighted-average diluted shares

 

154.3

 

 

 

156.4

 

% change

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

As Adjusted:

 

 

 

 

 

 

 

Operating income(2)

$

1,545

 

 

$

1,273

 

% change

 

21

%

 

 

 

 

Operating margin(2)

 

44.4

%

 

 

41.7

%

Net income(1) (2)

$

1,199

 

 

$

1,032

 

% change

 

16

%

 

 

 

 

Diluted EPS(2)

$

7.77

 

 

$

6.60

 

% change

 

18

%

 

 

 

 

(1)

Net income represents net income attributable to BlackRock, Inc.

(2)

See notes (1) through (4) to the condensed consolidated statements of income and supplemental information on pages 9 and 10 for more information on as adjusted items and the reconciliation to GAAP.

 

NET FLOW HIGHLIGHTS

 

 

 

Q1

LTM(1)

(in billions)

2021

2021

Long-term net flows:

$

133

 

 

$

409

 

 

 

 

 

 

 

 

 

 

 

 

 

By region:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

$

72

 

 

$

181

 

 

 

EMEA

 

39

 

 

 

147

 

 

 

APAC

 

22

 

 

 

81

 

 

 

 

 

 

 

 

 

 

 

 

 

By client type:

 

 

 

 

 

 

 

 

 

 

 

 

Retail:

$

37

 

 

$

108

 

 

 

 

US

 

23

 

 

 

49

 

 

 

 

International

 

14

 

 

 

59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

$

68

 

 

$

240

 

 

 

 

Core equity

 

28

 

 

 

45

 

 

 

 

Strategic

 

17

 

 

 

140

 

 

 

 

Precision

 

23

 

 

 

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional:

$

28

 

 

$

61

 

 

 

 

Active

 

17

 

 

 

50

 

 

 

 

Index

 

11

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash management net flows

$

39

 

 

$

100

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory net flows

$

0

 

 

$

19

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net flows

$

172

 

 

$

527

 

 

(1)

Amounts represent rolling last twelve months long-term net flows as of March 31, 2021.

 

 

1

 


 

BUSINESS RESULTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2021

 

 

 

 

 

 

 

 

 

Q1 2021

 

 

 

 

Base fees

 

 

 

 

 

 

 

 

 

Base fees

 

March 31, 2021

 

and securities

 

 

 

Q1 2021

 

March 31, 2021

 

and securities

 

AUM

 

lending revenue (1)

 

 

(in millions), (unaudited)

Net flows

 

AUM

 

lending revenue (1)

 

% of Total

 

% of Total

 

 

RESULTS BY CLIENT TYPE

Retail

$

36,511

 

$

934,177

 

$

1,125

 

 

11

%

 

32

%

 

ETFs

 

68,490

 

 

2,813,524

 

 

1,417

 

 

31

%

 

39

%

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

16,533

 

 

1,524,430

 

 

650

 

 

17

%

 

18

%

 

Index

 

11,106

 

 

3,009,150

 

 

257

 

 

33

%

 

7

%

 

Total institutional

 

27,639

 

 

4,533,580

 

 

907

 

 

50

%

 

25

%

 

Long-term

 

132,640

 

 

8,281,281

 

 

3,449

 

 

92

%

 

96

%

 

Cash management

 

39,190

 

 

703,916

 

 

143

 

 

8

%

 

4

%

 

Advisory(2)

 

(187

)

 

22,214

 

 

-

 

 

-

 

 

-

 

 

Total

$

171,643

 

$

9,007,411

 

$

3,592

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY INVESTMENT STYLE

Active

$

58,954

 

$

2,297,642

 

$

1,739

 

 

26

%

 

48

%

 

Index and ETFs

 

73,686

 

 

5,983,639

 

 

1,710

 

 

66

%

 

48

%

 

Long-term

 

132,640

 

 

8,281,281

 

 

3,449

 

 

92

%

 

96

%

 

Cash management

 

39,190

 

 

703,916

 

 

143

 

 

8

%

 

4

%

 

Advisory(2)

 

(187

)

 

22,214

 

 

-

 

 

-

 

 

-

 

 

Total

$

171,643

 

$

9,007,411

 

$

3,592

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESULTS BY PRODUCT TYPE

Equity

$

49,861

 

$

4,745,781

 

$

1,820

 

 

52

%

 

51

%

 

Fixed income

 

60,839

 

 

2,620,460

 

 

933

 

 

29

%

 

26

%

 

Multi-asset

 

13,753

 

 

677,372

 

 

328

 

 

8

%

 

9

%

 

Alternatives

 

8,187

 

 

237,668

 

 

368

 

 

3

%

 

10

%

 

Long-term

 

132,640

 

 

8,281,281

 

 

3,449

 

 

92

%

 

96

%

 

Cash management

 

39,190

 

 

703,916

 

 

143

 

 

8

%

 

4

%

 

Advisory(2)

 

(187

)

 

22,214

 

 

-

 

 

-

 

 

-

 

 

Total

$

171,643

 

$

9,007,411

 

$

3,592

 

 

100

%

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Base fees include investment advisory and administration fees.

(2)

Approximately $4.1 billion of ETFs AUM held in advisory accounts associated with the Federal Reserve Bank of New York (“FRBNY”) assignment as of March 31, 2021 (disclosed via FRBNY reporting as of April 12, 2021) are included within ETF AUM or Fixed Income AUM above. These holdings are excluded from Advisory AUM.

INVESTMENT PERFORMANCE AT March 31, 2021(1)

 

 

One-year period

 

Three-year period

 

Five-year period

 

Fixed income:

 

 

 

 

 

 

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

 

 

 

 

 

 

Taxable

86%

 

84%

 

87%

 

Tax-exempt

73%

 

60%

 

82%

 

Index AUM within or above applicable tolerance

87%

 

95%

 

95%

 

Equity:

 

 

 

 

 

 

 

 

 

Actively managed AUM above benchmark or peer median

 

 

 

 

 

 

 

 

 

Fundamental

48%

 

85%

 

84%

 

Systematic

87%

 

44%

 

95%

 

Index AUM within or above applicable tolerance

93%

 

97%

 

99%

 

 

(1)

Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 11 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Thursday, April 15, 2021 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 5079868). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 11:30 a.m. (Eastern Time) on Thursday, April 15, 2021 and ending at midnight on Thursday, April 29, 2021. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 5079868. To access the webcast, please visit the investor relations section of www.blackrock.com.

ABOUT BLACKROCK

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock.

2

 


 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2021

 

 

2020

 

 

Change

 

 

2020

 

 

Change

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory, administration fees and

  securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory and administration fees

$

3,465

 

 

$

2,897

 

 

$

568

 

 

$

3,262

 

 

$

203

 

Securities lending revenue

 

127

 

 

 

158

 

 

 

(31

)

 

 

131

 

 

 

(4

)

Total Investment advisory, administration fees and

  securities lending revenue

 

3,592

 

 

 

3,055

 

 

 

537

 

 

 

3,393

 

 

 

199

 

Investment advisory performance fees

 

129

 

 

 

41

 

 

 

88

 

 

 

419

 

 

 

(290

)

Technology services revenue

 

306

 

 

 

274

 

 

 

32

 

 

 

305

 

 

 

1

 

Distribution fees

 

340

 

 

 

276

 

 

 

64

 

 

 

314

 

 

 

26

 

Advisory and other revenue

 

31

 

 

 

64

 

 

 

(33

)

 

 

47

 

 

 

(16

)

Total revenue

 

4,398

 

 

 

3,710

 

 

 

688

 

 

 

4,478

 

 

 

(80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

1,409

 

 

 

1,137

 

 

 

272

 

 

 

1,341

 

 

 

68

 

Distribution and servicing costs

 

505

 

 

 

445

 

 

 

60

 

 

 

505

 

 

 

-

 

Direct fund expense

 

320

 

 

 

277

 

 

 

43

 

 

 

283

 

 

 

37

 

General and administration expense

 

585

 

 

 

1,142

 

 

 

(557

)

 

 

474

 

 

 

111

 

Amortization of intangible assets

 

34

 

 

 

25

 

 

 

9

 

 

 

27

 

 

 

7

 

Total expense

 

2,853

 

 

 

3,026

 

 

 

(173

)

 

 

2,630

 

 

 

223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,545

 

 

 

684

 

 

 

861

 

 

 

1,848

 

 

 

(303

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on investments

 

82

 

 

 

(40

)

 

 

122

 

 

 

345

 

 

 

(263

)

Interest and dividend income

 

19

 

 

 

15

 

 

 

4

 

 

 

28

 

 

 

(9

)

Interest expense

 

(55

)

 

 

(46

)

 

 

(9

)

 

 

(54

)

 

 

(1

)

Total nonoperating income (expense)

 

46

 

 

 

(71

)

 

 

117

 

 

 

319

 

 

 

(273

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,591

 

 

 

613

 

 

 

978

 

 

 

2,167

 

 

 

(576

)

Income tax expense (benefit)

 

318

 

 

 

(14

)

 

 

332

 

 

 

427

 

 

 

(109

)

Net income

 

1,273

 

 

 

627

 

 

 

646

 

 

 

1,740

 

 

 

(467

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling

  interests

 

74

 

 

 

(179

)

 

 

253

 

 

 

192

 

 

 

(118

)

Net income attributable to BlackRock, Inc.

$

1,199

 

 

$

806

 

 

$

393

 

 

$

1,548

 

 

$

(349

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

152,567,453

 

 

 

155,243,279

 

 

 

(2,675,826

)

 

 

152,515,168

 

 

 

52,285

 

Diluted

 

154,301,812

 

 

 

156,416,726

 

 

 

(2,114,914

)

 

 

154,512,860

 

 

 

(211,048

)

Earnings per share attributable to BlackRock, Inc.

   common stockholders (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

7.86

 

 

$

5.19

 

 

$

2.67

 

 

$

10.15

 

 

$

(2.29

)

Diluted

$

7.77

 

 

$

5.15

 

 

$

2.62

 

 

$

10.02

 

 

$

(2.25

)

Cash dividends declared and paid per share

$

4.13

 

 

$

3.63

 

 

$

0.50

 

 

$

3.63

 

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM (end of period)

$

9,007,411

 

 

$

6,466,668

 

 

$

2,540,743

 

 

$

8,676,680

 

 

$

330,731

 

Shares outstanding (end of period)

 

152,635,930

 

 

 

155,085,806

 

 

 

(2,449,876

)

 

 

152,532,885

 

 

 

103,045

 

GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

35.1

%

 

 

18.4

%

 

 

1,670

bps

 

 

41.3

%

 

 

(620

) bps

Effective tax rate

 

20.9

%

 

 

(1.7

)%

 

 

2,260

bps

 

 

21.6

%

 

 

(70

) bps

As adjusted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (1)

$

1,545

 

 

$

1,273

 

 

$

272

 

 

$

1,848

 

 

$

(303

)

Operating margin (1)

 

44.4

%

 

 

41.7

%

 

 

270

bps

 

 

46.6

%

 

 

(220

) bps

Nonoperating income (expense), less net income

     (loss) attributable to noncontrolling interests (2)

$

(28

)

 

$

(14

)

 

$

(14

)

 

$

127

 

 

$

(155

)

Net income attributable to BlackRock, Inc. (3)

$

1,199

 

 

$

1,032

 

 

$

167

 

 

$

1,573

 

 

$

(374

)

Diluted earnings attributable to BlackRock, Inc.

     common stockholders per share (3) (4)

$

7.77

 

 

$

6.60

 

 

$

1.17

 

 

$

10.18

 

 

$

(2.41

)

Effective tax rate

 

20.9

%

 

 

18.0

%

 

 

290

bps

 

 

20.3

%

 

 

60

  bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See pages 9-10 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

 

 

 

 

3

 


 

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

 

Current Quarter Component Changes by Client Type and Product Type

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

338,434

 

 

$

14,334

 

 

$

41,324

 

 

$

14,643

 

 

$

(1,020

)

 

$

407,715

 

 

$

373,077

 

Fixed income

 

340,468

 

 

 

14,797

 

 

 

-

 

 

 

(3,780

)

 

 

(1,845

)

 

 

349,640

 

 

 

345,893

 

Multi-asset

 

132,624

 

 

 

3,995

 

 

 

-

 

 

 

2,677

 

 

 

(181

)

 

 

139,115

 

 

 

135,402

 

Alternatives

 

34,391

 

 

 

3,385

 

 

 

-

 

 

 

39

 

 

 

(108

)

 

 

37,707

 

 

 

35,979

 

Retail subtotal

 

845,917

 

 

 

36,511

 

 

 

41,324

 

 

 

13,579

 

 

 

(3,154

)

 

 

934,177

 

 

 

890,351

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,905,101

 

 

 

66,422

 

 

 

-

 

 

 

111,882

 

 

 

(5,587

)

 

 

2,077,818

 

 

 

1,974,558

 

Fixed income

 

690,033

 

 

 

1,605

 

 

 

-

 

 

 

(20,971

)

 

 

(2,838

)

 

 

667,829

 

 

 

680,376

 

Multi-asset

 

6,268

 

 

 

567

 

 

 

-

 

 

 

109

 

 

 

14

 

 

 

6,958

 

 

 

6,539

 

Alternatives

 

67,605

 

 

 

(104

)

 

 

-

 

 

 

(6,530

)

 

 

(52

)

 

 

60,919

 

 

 

66,169

 

ETFs subtotal

 

2,669,007

 

 

 

68,490

 

 

 

-

 

 

 

84,490

 

 

 

(8,463

)

 

 

2,813,524

 

 

 

2,727,642

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

169,522

 

 

 

467

 

 

 

-

 

 

 

7,088

 

 

 

(996

)

 

 

176,081

 

 

 

171,927

 

Fixed income

 

716,269

 

 

 

2,264

 

 

 

-

 

 

 

(22,394

)

 

 

(3,665

)

 

 

692,474

 

 

 

704,175

 

Multi-asset

 

511,242

 

 

 

8,483

 

 

 

-

 

 

 

6,646

 

 

 

(4,151

)

 

 

522,220

 

 

 

514,123

 

Alternatives

 

127,429

 

 

 

5,319

 

 

 

-

 

 

 

1,416

 

 

 

(509

)

 

 

133,655

 

 

 

129,964

 

Active subtotal

 

1,524,462

 

 

 

16,533

 

 

 

-

 

 

 

(7,244

)

 

 

(9,321

)

 

 

1,524,430

 

 

 

1,520,189

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,006,749

 

 

 

(31,362

)

 

 

-

 

 

 

120,531

 

 

 

(11,751

)

 

 

2,084,167

 

 

 

2,026,675

 

Fixed income

 

927,718

 

 

 

42,173

 

 

 

-

 

 

 

(46,816

)

 

 

(12,558

)

 

 

910,517

 

 

 

916,050

 

Multi-asset

 

8,599

 

 

 

708

 

 

 

-

 

 

 

(1

)

 

 

(227

)

 

 

9,079

 

 

 

8,603

 

Alternatives

 

5,617

 

 

 

(413

)

 

 

-

 

 

 

234

 

 

 

(51

)

 

 

5,387

 

 

 

5,510

 

Index subtotal

 

2,948,683

 

 

 

11,106

 

 

 

-

 

 

 

73,948

 

 

 

(24,587

)

 

 

3,009,150

 

 

 

2,956,838

 

Institutional subtotal

 

4,473,145

 

 

 

27,639

 

 

 

-

 

 

 

66,704

 

 

 

(33,908

)

 

 

4,533,580

 

 

 

4,477,027

 

Long-term

 

7,988,069

 

 

 

132,640

 

 

 

41,324

 

 

 

164,773

 

 

 

(45,525

)

 

 

8,281,281

 

 

 

8,095,020

 

Cash management

 

666,252

 

 

 

39,190

 

 

 

-

 

 

 

(127

)

 

 

(1,399

)

 

 

703,916

 

 

 

664,958

 

Advisory (4)

 

22,359

 

 

 

(187

)

 

 

-

 

 

 

35

 

 

 

7

 

 

 

22,214

 

 

 

22,373

 

Total

$

8,676,680

 

 

$

171,643

 

 

$

41,324

 

 

$

164,681

 

 

$

(46,917

)

 

$

9,007,411

 

 

$

8,782,351

 

Current Quarter Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

410,189

 

 

$

21,020

 

 

$

-

 

 

$

14,593

 

 

$

(2,022

)

 

$

443,780

 

 

$

425,842

 

Fixed income

 

1,035,015

 

 

 

16,752

 

 

 

-

 

 

 

(25,059

)

 

 

(5,540

)

 

 

1,021,168

 

 

 

1,028,651

 

Multi-asset

 

643,864

 

 

 

12,478

 

 

 

-

 

 

 

9,323

 

 

 

(4,332

)

 

 

661,333

 

 

 

649,520

 

Alternatives

 

161,819

 

 

 

8,704

 

 

 

-

 

 

 

1,455

 

 

 

(617

)

 

 

171,361

 

 

 

165,943

 

Active subtotal

 

2,250,887

 

 

 

58,954

 

 

 

-

 

 

 

312

 

 

 

(12,511

)

 

 

2,297,642

 

 

 

2,269,956

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,905,101

 

 

 

66,422

 

 

 

-

 

 

 

111,882

 

 

 

(5,587

)

 

 

2,077,818

 

 

 

1,974,558

 

Fixed income

 

690,033

 

 

 

1,605

 

 

 

-

 

 

 

(20,971

)

 

 

(2,838

)

 

 

667,829

 

 

 

680,376

 

Multi-asset

 

6,268

 

 

 

567

 

 

 

-

 

 

 

109

 

 

 

14

 

 

 

6,958

 

 

 

6,539

 

Alternatives

 

67,605

 

 

 

(104

)

 

 

-

 

 

 

(6,530

)

 

 

(52

)

 

 

60,919

 

 

 

66,169

 

ETFs subtotal

 

2,669,007

 

 

 

68,490

 

 

 

-

 

 

 

84,490

 

 

 

(8,463

)

 

 

2,813,524

 

 

 

2,727,642

 

Non-ETF Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

2,104,516

 

 

 

(37,581

)

 

 

41,324

 

 

 

127,669

 

 

 

(11,745

)

 

 

2,224,183

 

 

 

2,145,837

 

Fixed income

 

949,440

 

 

 

42,482

 

 

 

-

 

 

 

(47,931

)

 

 

(12,528

)

 

 

931,463

 

 

 

937,467

 

Multi-asset

 

8,601

 

 

 

708

 

 

 

-

 

 

 

(1

)

 

 

(227

)

 

 

9,081

 

 

 

8,608

 

Alternatives

 

5,618

 

 

 

(413

)

 

 

-

 

 

 

234

 

 

 

(51

)

 

 

5,388

 

 

 

5,510

 

Non-ETF Index subtotal

 

3,068,175

 

 

 

5,196

 

 

 

41,324

 

 

 

79,971

 

 

 

(24,551

)

 

 

3,170,115

 

 

 

3,097,422

 

Index and ETFs subtotal

 

5,737,182

 

 

 

73,686

 

 

 

41,324

 

 

 

164,461

 

 

 

(33,014

)

 

 

5,983,639

 

 

 

5,825,064

 

Long-term

$

7,988,069

 

 

$

132,640

 

 

$

41,324

 

 

$

164,773

 

 

$

(45,525

)

 

$

8,281,281

 

 

$

8,095,020

 

Current Quarter Component Changes by Product Type (Long-Term)

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Equity

$

4,419,806

 

 

$

49,861

 

 

$

41,324

 

 

$

254,144

 

 

$

(19,354

)

 

$

4,745,781

 

 

$

4,546,237

 

Fixed income

 

2,674,488

 

 

 

60,839

 

 

 

-

 

 

 

(93,961

)

 

 

(20,906

)

 

 

2,620,460

 

 

 

2,646,494

 

Multi-asset

 

658,733

 

 

 

13,753

 

 

 

-

 

 

 

9,431

 

 

 

(4,545

)

 

 

677,372

 

 

 

664,667

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

85,770

 

 

 

6,225

 

 

 

-

 

 

 

601

 

 

 

(389

)

 

 

92,207

 

 

 

88,042

 

Liquid alternatives

 

73,218

 

 

 

2,354

 

 

 

-

 

 

 

791

 

 

 

(97

)

 

 

76,266

 

 

 

74,975

 

Currency and commodities(5)

 

76,054

 

 

 

(392

)

 

 

-

 

 

 

(6,233

)

 

 

(234

)

 

 

69,195

 

 

 

74,605

 

Alternatives subtotal

 

235,042

 

 

 

8,187

 

 

 

-

 

 

 

(4,841

)

 

 

(720

)

 

 

237,668

 

 

 

237,622

 

Long-term

$

7,988,069

 

 

$

132,640

 

 

$

41,324

 

 

$

164,773

 

 

$

(45,525

)

 

$

8,281,281

 

 

$

8,095,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Amounts include AUM attributable to the acquisition of Aperio Group, LLC on February 1, 2021 (“the Aperio Transaction”).

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

(4)

Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. Approximately $4.1 billion of ETFs AUM held in advisory accounts associated with the FRBNY assignment as of March 31, 2021 (disclosed via FRBNY reporting as of April 12, 2021) are included within Fixed Income ETFs AUM or Fixed Income AUM above. These holdings are excluded from Advisory AUM in the first table above.

(5)

Amounts include commodity ETFs.

 

4

 


 

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

204,742

 

 

$

44,571

 

 

$

41,324

 

 

$

110,169

 

 

$

6,909

 

 

$

407,715

 

 

$

296,733

 

Fixed income

 

278,057

 

 

 

45,994

 

 

 

-

 

 

 

20,643

 

 

 

4,946

 

 

 

349,640

 

 

 

318,547

 

Multi-asset

 

101,032

 

 

 

7,073

 

 

 

-

 

 

 

30,113

 

 

 

897

 

 

 

139,115

 

 

 

121,220

 

Alternatives

 

24,993

 

 

 

9,955

 

 

 

-

 

 

 

2,331

 

 

 

428

 

 

 

37,707

 

 

 

31,213

 

Retail subtotal

 

608,824

 

 

 

107,593

 

 

 

41,324

 

 

 

163,256

 

 

 

13,180

 

 

 

934,177

 

 

 

767,713

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,253,690

 

 

 

132,281

 

 

 

-

 

 

 

679,068

 

 

 

12,779

 

 

 

2,077,818

 

 

 

1,658,862

 

Fixed income

 

554,009

 

 

 

92,136

 

 

 

-

 

 

 

13,449

 

 

 

8,235

 

 

 

667,829

 

 

 

649,739

 

Multi-asset

 

4,499

 

 

 

1,189

 

 

 

-

 

 

 

1,190

 

 

 

80

 

 

 

6,958

 

 

 

5,622

 

Alternatives

 

39,992

 

 

 

13,939

 

 

 

-

 

 

 

6,831

 

 

 

157

 

 

 

60,919

 

 

 

60,194

 

ETFs subtotal

 

1,852,190

 

 

 

239,545

 

 

 

-

 

 

 

700,538

 

 

 

21,251

 

 

 

2,813,524

 

 

 

2,374,417

 

Institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

112,440

 

 

 

1,334

 

 

 

-

 

 

 

58,411

 

 

 

3,896

 

 

 

176,081

 

 

 

149,489

 

Fixed income

 

625,345

 

 

 

22,770

 

 

 

-

 

 

 

33,391

 

 

 

10,968

 

 

 

692,474

 

 

 

682,312

 

Multi-asset

 

381,416

 

 

 

13,928

 

 

 

-

 

 

 

112,304

 

 

 

14,572

 

 

 

522,220

 

 

 

462,609

 

Alternatives

 

110,891

 

 

 

11,988

 

 

 

-

 

 

 

7,556

 

 

 

3,220

 

 

 

133,655

 

 

 

120,861

 

Active subtotal

 

1,230,092

 

 

 

50,020

 

 

 

-

 

 

 

211,662

 

 

 

32,656

 

 

 

1,524,430

 

 

 

1,415,271

 

Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,388,790

 

 

 

(82,493

)

 

 

-

 

 

 

741,420

 

 

 

36,450

 

 

 

2,084,167

 

 

 

1,793,919

 

Fixed income

 

778,404

 

 

 

93,273

 

 

 

-

 

 

 

(2,241

)

 

 

41,081

 

 

 

910,517

 

 

 

860,592

 

Multi-asset

 

7,230

 

 

 

386

 

 

 

-

 

 

 

1,479

 

 

 

(16

)

 

 

9,079

 

 

 

8,192

 

Alternatives

 

4,075

 

 

 

325

 

 

 

-

 

 

 

879

 

 

 

108

 

 

 

5,387

 

 

 

4,867

 

Index subtotal

 

2,178,499

 

 

 

11,491

 

 

 

-

 

 

 

741,537

 

 

 

77,623

 

 

 

3,009,150

 

 

 

2,667,570

 

Institutional subtotal

 

3,408,591

 

 

 

61,511

 

 

 

-

 

 

 

953,199

 

 

 

110,279

 

 

 

4,533,580

 

 

 

4,082,841

 

Long-term

 

5,869,605

 

 

 

408,649

 

 

 

41,324

 

 

 

1,816,993

 

 

 

144,710

 

 

 

8,281,281

 

 

 

7,224,971

 

Cash management

 

594,089

 

 

 

100,098

 

 

 

-

 

 

 

70

 

 

 

9,659

 

 

 

703,916

 

 

 

646,190

 

Advisory (4)

 

2,974

 

 

 

18,748

 

 

 

-

 

 

 

431

 

 

 

61

 

 

 

22,214

 

 

 

17,984

 

Total

$

6,466,668

 

 

$

527,495

 

 

$

41,324

 

 

$

1,817,494

 

 

$

154,430

 

 

$

9,007,411

 

 

$

7,889,145

 

Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Active:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

$

252,758

 

 

$

47,354

 

 

$

-

 

 

$

136,792

 

 

$

6,876

 

 

$

443,780

 

 

$

355,594

 

Fixed income

 

887,458

 

 

 

65,347

 

 

 

-

 

 

 

53,929

 

 

 

14,434

 

 

 

1,021,168

 

 

 

981,422

 

Multi-asset

 

482,450

 

 

 

20,995

 

 

 

-

 

 

 

142,419

 

 

 

15,469

 

 

 

661,333

 

 

 

583,827

 

Alternatives

 

135,882

 

 

 

21,942

 

 

 

-

 

 

 

9,889

 

 

 

3,648

 

 

 

171,361

 

 

 

152,073

 

Active subtotal

 

1,758,548

 

 

 

155,638

 

 

 

-

 

 

 

343,029

 

 

 

40,427

 

 

 

2,297,642

 

 

 

2,072,916

 

Index and ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ETFs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,253,690

 

 

 

132,281

 

 

 

-

 

 

 

679,068

 

 

 

12,779

 

 

 

2,077,818

 

 

 

1,658,862

 

Fixed income

 

554,009

 

 

 

92,136

 

 

 

-

 

 

 

13,449

 

 

 

8,235

 

 

 

667,829

 

 

 

649,739

 

Multi-asset

 

4,499

 

 

 

1,189

 

 

 

-

 

 

 

1,190

 

 

 

80

 

 

 

6,958

 

 

 

5,622

 

Alternatives

 

39,992

 

 

 

13,939

 

 

 

-

 

 

 

6,831

 

 

 

157

 

 

 

60,919

 

 

 

60,194

 

ETFs subtotal

 

1,852,190

 

 

 

239,545

 

 

 

-

 

 

 

700,538

 

 

 

21,251

 

 

 

2,813,524

 

 

 

2,374,417

 

Non-ETF Index:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

1,453,214

 

 

 

(83,942

)

 

 

41,324

 

 

 

773,208

 

 

 

40,379

 

 

 

2,224,183

 

 

 

1,884,547

 

Fixed income

 

794,348

 

 

 

96,690

 

 

 

-

 

 

 

(2,136

)

 

 

42,561

 

 

 

931,463

 

 

 

880,029

 

Multi-asset

 

7,228

 

 

 

392

 

 

 

-

 

 

 

1,477

 

 

 

(16

)

 

 

9,081

 

 

 

8,194

 

Alternatives

 

4,077

 

 

 

326

 

 

 

-

 

 

 

877

 

 

 

108

 

 

 

5,388

 

 

 

4,868

 

Non-ETF Index subtotal

 

2,258,867

 

 

 

13,466

 

 

 

41,324

 

 

 

773,426

 

 

 

83,032

 

 

 

3,170,115

 

 

 

2,777,638

 

Index and ETFs subtotal

 

4,111,057

 

 

 

253,011

 

 

 

41,324

 

 

 

1,473,964

 

 

 

104,283

 

 

 

5,983,639

 

 

 

5,152,055

 

Long-term

$

5,869,605

 

 

$

408,649

 

 

$

41,324

 

 

$

1,816,993

 

 

$

144,710

 

 

$

8,281,281

 

 

$

7,224,971

 

Year-over-Year Component Changes by Product Type (Long-Term)

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

inflows

 

 

 

 

 

 

Market

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

2020

 

 

(outflows)

 

 

Acquisition(1)

 

 

change

 

 

FX impact (2)

 

 

2021

 

 

Average AUM (3)

 

Equity

$

2,959,662

 

 

$

95,693

 

 

$

41,324

 

 

$

1,589,068

 

 

$

60,034

 

 

$

4,745,781

 

 

$

3,899,003

 

Fixed income

 

2,235,815

 

 

 

254,173

 

 

 

-

 

 

 

65,242

 

 

 

65,230

 

 

 

2,620,460

 

 

 

2,511,190

 

Multi-asset

 

494,177

 

 

 

22,576

 

 

 

-

 

 

 

145,086

 

 

 

15,533

 

 

 

677,372

 

 

 

597,643

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

75,101

 

 

 

14,541

 

 

 

-

 

 

 

852

 

 

 

1,713

 

 

 

92,207

 

 

 

81,264

 

Liquid alternatives

 

58,127

 

 

 

7,339

 

 

 

-

 

 

 

8,830

 

 

 

1,970

 

 

 

76,266

 

 

 

68,042

 

Currency and commodities(5)

 

46,723

 

 

 

14,327

 

 

 

-

 

 

 

7,915

 

 

 

230

 

 

 

69,195

 

 

 

67,829

 

Alternatives subtotal

 

179,951

 

 

 

36,207

 

 

 

-

 

 

 

17,597

 

 

 

3,913

 

 

 

237,668

 

 

 

217,135

 

Long-term

$

5,869,605

 

 

$

408,649

 

 

$

41,324

 

 

$

1,816,993

 

 

$

144,710

 

 

$

8,281,281

 

 

$

7,224,971

 

 

(1)

Amounts include AUM attributable to the Aperio Transaction.

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

(4)

Advisory AUM represents mandates linked to purchases and disposition of assets and portfolios on behalf of official institutions and long-term portfolio liquidation assignments. Approximately $4.1 billion of ETFs AUM held in advisory accounts associated with the FRBNY assignment as of March 31, 2021 (disclosed via FRBNY reporting as of April 12, 2021) are included within Fixed Income ETFs AUM or Fixed Income AUM above. These holdings are excluded from Advisory AUM in the first table above.

(5)

Amounts include commodity ETFs.

 

 

5

 


 

SUMMARY OF REVENUE

 

Three Months

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

(in millions), (unaudited)

2021

 

 

2020

 

 

Change

 

 

2020

 

 

Change

 

Investment advisory, administration fees and

   securities lending revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

$

576

 

 

$

398

 

 

$

178

 

 

$

501

 

 

$

75

 

ETFs

 

1,068

 

 

 

879

 

 

 

189

 

 

 

948

 

 

 

120

 

Non-ETF Index

 

176

 

 

 

163

 

 

 

13

 

 

 

159

 

 

 

17

 

Equity subtotal

 

1,820

 

 

 

1,440

 

 

 

380

 

 

 

1,608

 

 

 

212

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active

 

525

 

 

 

481

 

 

 

44

 

 

 

514

 

 

 

11

 

ETFs

 

295

 

 

 

259

 

 

 

36

 

 

 

302

 

 

 

(7

)

Non-ETF Index

 

113

 

 

 

112

 

 

 

1

 

 

 

109

 

 

 

4

 

Fixed income subtotal

 

933

 

 

 

852

 

 

 

81

 

 

 

925

 

 

 

8

 

Multi-asset

 

328

 

 

 

293

 

 

 

35

 

 

 

311

 

 

 

17

 

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

168

 

 

 

148

 

 

 

20

 

 

 

161

 

 

 

7

 

Liquid alternatives

 

147

 

 

 

112

 

 

 

35

 

 

 

141

 

 

 

6

 

Currency and commodities

 

53

 

 

 

32

 

 

 

21

 

 

 

50

 

 

 

3

 

Alternatives subtotal

 

368

 

 

 

292

 

 

 

76

 

 

 

352

 

 

 

16

 

Long-term

 

3,449

 

 

 

2,877

 

 

 

572

 

 

 

3,196

 

 

 

253

 

Cash management

 

143

 

 

 

178

 

 

 

(35

)

 

 

197

 

 

 

(54

)

Total investment advisory, administration fees

  and securities lending revenue

 

3,592

 

 

 

3,055

 

 

 

537

 

 

 

3,393

 

 

 

199

 

Investment advisory performance fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

26

 

 

 

2

 

 

 

24

 

 

 

62

 

 

 

(36

)

Fixed income

 

14

 

 

 

2

 

 

 

12

 

 

 

22

 

 

 

(8

)

Multi-asset

 

8

 

 

 

1

 

 

 

7

 

 

 

22

 

 

 

(14

)

Alternatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Illiquid alternatives

 

7

 

 

 

17

 

 

 

(10

)

 

 

28

 

 

 

(21

)

Liquid alternatives

 

74

 

 

 

19

 

 

 

55

 

 

 

285

 

 

 

(211

)

Alternatives subtotal

 

81

 

 

 

36

 

 

 

45

 

 

 

313

 

 

 

(232

)

Total performance fees

 

129

 

 

 

41

 

 

 

88

 

 

 

419

 

 

 

(290

)

Technology services revenue

 

306

 

 

 

274

 

 

 

32

 

 

 

305

 

 

 

1

 

Distribution fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retrocessions

 

238

 

 

 

169

 

 

 

69

 

 

 

217

 

 

 

21

 

12b-1 fees (US mutual fund distribution fees)

 

85

 

 

 

91

 

 

 

(6

)

 

 

83

 

 

 

2

 

Other

 

17

 

 

 

16

 

 

 

1

 

 

 

14

 

 

 

3

 

Total distribution fees

 

340

 

 

 

276

 

 

 

64

 

 

 

314

 

 

 

26

 

Advisory and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory

 

15

 

 

 

17

 

 

 

(2

)

 

 

20

 

 

 

(5

)

Other

 

16

 

 

 

47

 

 

 

(31

)

 

 

27

 

 

 

(11

)

Total advisory and other revenue

 

31

 

 

 

64

 

 

 

(33

)

 

 

47

 

 

 

(16

)

Total revenue

$

4,398

 

 

$

3,710

 

 

$

688

 

 

$

4,478

 

 

$

(80

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Highlights

Investment advisory, administration fees and securities lending revenue increased $537 million from the first quarter of 2020, primarily driven by the positive impact of market beta and foreign exchange movements on average AUM and organic growth, partially offset by the impact of yield-related fee waivers on certain money market funds and strategic pricing changes to certain products, lower securities lending revenue, and the effect of one less day in the quarter. Securities lending revenue of $127 million decreased from $158 million in the first quarter of 2020, primarily reflecting lower spreads, partially offset by higher average balances of securities on loan.

Investment advisory, administration fees and securities lending revenue increased $199 million from the fourth quarter of 2020, primarily driven by the positive impact of market beta and foreign exchange movements on average AUM and organic growth, partially offset by the effect of two less days in the quarter and the impact of higher yield-related fee waivers on certain money market funds. Securities lending revenue of $127 million decreased from $131 million in the fourth quarter of 2020.

Performance fees increased $88 million from the first quarter of 2020, primarily reflecting higher revenue from liquid alternative and long-only products.

Performance fees decreased $290 million from the fourth quarter of 2020, primarily reflecting a seasonally higher number of funds with a performance measurement period that ended in the fourth quarter of 2020.

Technology services revenue increased $32 million from the first quarter of 2020, primarily reflecting higher revenue from Aladdin®. Technology services annual contract value(1) (“ACV”) increased 16% from the first quarter of 2020.

Advisory and other revenue decreased $33 million from the first quarter of 2020, primarily reflecting the impact of the charitable contribution of BlackRock’s remaining 20% stake in PennyMac Financial Services, Inc. (the “Charitable Contribution”) in 2020 and lower transition management assignments.

 

 

(1)

ACV represents forward-looking recurring subscription fees under client contracts for the next twelve months at the end of a respective quarter, assuming all client contracts that come up for renewal are renewed. ACV excludes nonrecurring fees such as implementation and consulting fees. See note (5) in the supplemental information on page 10 for more information on ACV.

6

 


 

SUMMARY OF OPERATING EXPENSE

 

 

Three Months

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

(in millions), (unaudited)

2021

 

 

2020

 

 

Change

 

 

2020

 

 

Change

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

$

1,409

 

 

$

1,137

 

 

$

272

 

 

$

1,341

 

 

$

68

 

Distribution and servicing costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retrocessions

 

238

 

 

 

169

 

 

 

69

 

 

 

217

 

 

 

21

 

12b-1 costs

 

83

 

 

 

89

 

 

 

(6

)

 

 

81

 

 

 

2

 

Other

 

184

 

 

 

187

 

 

 

(3

)

 

 

207

 

 

 

(23

)

Total distribution and servicing costs

 

505

 

 

 

445

 

 

 

60

 

 

 

505

 

 

 

-

 

Direct fund expense

 

320

 

 

 

277

 

 

 

43

 

 

 

283

 

 

 

37

 

General and administration expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and promotional

 

35

 

 

 

69

 

 

 

(34

)

 

 

73

 

 

 

(38

)

Occupancy and office related

 

79

 

 

 

78

 

 

 

1

 

 

 

80

 

 

 

(1

)

Portfolio services

 

87

 

 

 

65

 

 

 

22

 

 

 

80

 

 

 

7

 

Technology

 

104

 

 

 

88

 

 

 

16

 

 

 

124

 

 

 

(20

)

Professional services

 

39

 

 

 

44

 

 

 

(5

)

 

 

49

 

 

 

(10

)

Communications

 

11

 

 

 

12

 

 

 

(1

)

 

 

14

 

 

 

(3

)

Foreign exchange remeasurement

 

4

 

 

 

5

 

 

 

(1

)

 

 

(1

)

 

 

5

 

Contingent consideration fair value adjustments

 

3

 

 

 

25

 

 

 

(22

)

 

 

-

 

 

 

3

 

Product launch costs

 

178

 

 

 

84

 

 

 

94

 

 

 

2

 

 

 

176

 

Charitable Contribution

 

-

 

 

 

589

 

 

 

(589

)

 

 

-

 

 

 

-

 

Other general and administration

 

45

 

 

 

83

 

 

 

(38

)

 

 

53

 

 

 

(8

)

Total general and administration expense

 

585

 

 

 

1,142

 

 

 

(557

)

 

 

474

 

 

 

111

 

Amortization of intangible assets

 

34

 

 

 

25

 

 

 

9

 

 

 

27

 

 

 

7

 

Total operating expense

$

2,853

 

 

$

3,026

 

 

$

(173

)

 

$

2,630

 

 

$

223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Highlights

Employee compensation and benefits expense increased $272 million from the first quarter of 2020, primarily reflecting higher incentive compensation, driven by higher operating income and higher performance fees, and the higher mark-to-market impact of certain deferred compensation programs.

Employee compensation and benefits expense increased $68 million from the fourth quarter of 2020, primarily reflecting higher seasonal payroll taxes and an increase in stock-based compensation expense related to the effect of additional grants in January 2021, partially offset by lower incentive compensation driven by lower performance fees.

Direct fund expense increased $43 million from the first quarter of 2020 and $37 million from the fourth quarter of 2020, primarily reflecting higher average AUM.

General and administration expense decreased $557 million from the first quarter of 2020, largely driven by the Charitable Contribution in the year ago quarter. General and administration expense also reflected higher product launch costs, including the impact of $178 million associated with the March 2021 close of the $4.9 billion BlackRock Innovation and Growth Trust, and higher portfolio services and technology expense, offset by lower marketing and promotional expense and contingent consideration fair value adjustments, and the impact of costs related to certain legal matters incurred in the first quarter of 2020.

General and administration expense increased $111 million from the fourth quarter of 2020, primarily driven by $178 million of product launch costs, partially offset by seasonally lower marketing and promotional expense and lower technology and professional services expense.

Amortization of intangible assets expense increased $9 million from the first quarter of 2020 and $7 million from the fourth quarter of 2020, primarily reflecting amortization of intangible assets related to the Aperio Transaction.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 


 

SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

(in millions), (unaudited)

 

2021

 

 

2020

 

 

Change

 

 

2020

 

 

Change

 

Nonoperating income (expense), GAAP basis

 

$

46

 

 

$

(71

)

 

$

117

 

 

$

319

 

 

$

(273

)

Less: Net income (loss) attributable to

     noncontrolling interests ("NCI")

 

 

74

 

 

 

(179

)

 

 

253

 

 

 

192

 

 

 

(118

)

Nonoperating income (expense)(1)

 

$

(28

)

 

$

108

 

 

$

(136

)

 

$

127

 

 

$

(155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

December 31,

 

 

 

 

 

(in millions), (unaudited)

 

2021

 

 

2020

 

 

Change

 

 

2020

 

 

Change

 

Net gain (loss) on investments(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private equity

 

$

22

 

 

$

(18

)

 

$

40

 

 

$

36

 

 

$

(14

)

Real assets

 

 

3

 

 

 

5

 

 

 

(2

)

 

 

(3

)

 

 

6

 

Other alternatives(2)

 

 

13

 

 

 

(25

)

 

 

38

 

 

 

22

 

 

 

(9

)

Other investments(3)

 

 

(3

)

 

 

(150

)

 

 

147

 

 

 

85

 

 

 

(88

)

Subtotal

 

 

35

 

 

 

(188

)

 

 

223

 

 

 

140

 

 

 

(105

)

Gain related to the Charitable Contribution

 

 

-

 

 

 

122

 

 

 

(122

)

 

 

-

 

 

 

-

 

Other gains (losses)(4)

 

 

(27

)

 

 

205

 

 

 

(232

)

 

 

13

 

 

 

(40

)

Total net gain (loss) on investments(1)

 

 

8

 

 

 

139

 

 

 

(131

)

 

 

153

 

 

 

(145

)

Interest and dividend income

 

 

19

 

 

 

15

 

 

 

4

 

 

 

28

 

 

 

(9

)

Interest expense

 

 

(55

)

 

 

(46

)

 

 

(9

)

 

 

(54

)

 

 

(1

)

Net interest expense

 

 

(36

)

 

 

(31

)

 

 

(5

)

 

 

(26

)

 

 

(10

)

Nonoperating income (expense)(1)

 

$

(28

)

 

$

108

 

 

$

(136

)

 

$

127

 

 

$

(155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Net of net income (loss) attributable to NCI. Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP see note (2) to the condensed consolidated statements of income and supplemental information on pages 9 and 10.

(2)

Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

(3)

Amounts primarily include net gains (losses) related to unhedged equity, fixed income and multi-asset investments.

(4)

The amount for the three months ended March 31, 2020 includes a nonoperating pre-tax gain of approximately $240 million in connection with a recapitalization of iCapital Network, Inc. Additional amounts include noncash pre-tax gains (losses) related to the revaluation of certain other corporate minority investments.

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

Three Months

 

 

 

 

 

Three Months

 

 

 

 

 

 

Ended

 

 

 

 

 

Ended

 

 

 

 

 

 

March 31,

 

 

 

 

 

December 31,

 

 

 

 

 

(in millions), (unaudited)

2021

 

 

2020

 

 

Change

 

2020

 

 

Change

 

Income tax expense (benefit)

$

318

 

 

$

(14

)

 

$

332

 

 

$

427

 

 

$

(109

)

Effective tax rate

 

20.9

%

 

 

(1.7

)%

 

 

2,260

bps

 

 

21.6

%

 

 

(70

) bps

 

Highlights

First quarter 2021 and 2020 income tax expense (benefit) included $39 million and $64 million, respectively, of discrete tax benefits, including benefits related to stock-based compensation awards that vest in the first quarter of each year.

First quarter 2020 income tax benefit included a discrete tax benefit of $241 million recognized in connection with the Charitable Contribution.

Fourth quarter 2020 income tax expense included $61 million of net discrete tax benefits, partially offset by a $25 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities.


8

 


 

 

RECONCILIATION OF US GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

(in millions), (unaudited)

 

2021

 

 

2020

 

 

2020

 

Operating income, GAAP basis

 

$

1,545

 

 

$

684

 

 

$

1,848

 

Non-GAAP expense adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

Charitable Contribution

 

 

-

 

 

 

589

 

 

 

-

 

Operating income, as adjusted (1)

 

 

1,545

 

 

 

1,273

 

 

 

1,848

 

Product launch costs and commissions

 

 

185

 

 

 

87

 

 

 

2

 

Operating income used for operating margin measurement

 

$

1,730

 

 

$

1,360

 

 

$

1,850

 

Revenue, GAAP basis

 

$

4,398

 

 

$

3,710

 

 

$

4,478

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

(340

)

 

 

(276

)

 

 

(314

)

Investment advisory fees

 

 

(165

)

 

 

(169

)

 

 

(191

)

Revenue used for operating margin measurement

 

$

3,893

 

 

$

3,265

 

 

$

3,973

 

Operating margin, GAAP basis

 

 

35.1

%

 

 

18.4

%

 

 

41.3

%

Operating margin, as adjusted (1)

 

 

44.4

%

 

 

41.7

%

 

 

46.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

See note (1) to the condensed consolidated statements of income and supplemental information on page 10 for more information on as adjusted items and the reconciliation to GAAP.

 

RECONCILIATION OF US GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

(in millions), (unaudited)

 

2021

 

 

2020

 

 

2020

 

Nonoperating income (expense), GAAP basis

 

$

46

 

 

$

(71

)

 

$

319

 

Less: Net income (loss) attributable to NCI

 

 

74

 

 

 

(179

)

 

 

192

 

Nonoperating income (expense), net of NCI

 

 

(28

)

 

 

108

 

 

 

127

 

Less: Gain related to the Charitable Contribution

 

 

-

 

 

 

122

 

 

 

-

 

Nonoperating income (expense), less net income (loss)

   attributable to NCI, as adjusted (2)

 

$

(28

)

 

$

(14

)

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See note (2) to the condensed consolidated statements of income and supplemental information on page 10 for more information on as adjusted items and the reconciliation to GAAP.

 

RECONCILIATION OF US GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

(in millions, except per share data), (unaudited)

 

2021

 

 

2020

 

 

2020

 

Net income attributable to BlackRock, Inc., GAAP basis

 

$

1,199

 

 

$

806

 

 

$

1,548

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Charitable Contribution, net of tax

 

 

-

 

 

 

226

 

 

 

-

 

Income tax matters

 

 

-

 

 

 

-

 

 

 

25

 

Net income attributable to BlackRock, Inc., as adjusted (3)

 

$

1,199

 

 

$

1,032

 

 

$

1,573

 

Diluted weighted-average common shares outstanding (4)

 

 

154.3

 

 

 

156.4

 

 

 

154.5

 

Diluted earnings per common share, GAAP basis (4)

 

$

7.77

 

 

$

5.15

 

 

$

10.02

 

Diluted earnings per common share, as adjusted (3) (4)

 

$

7.77

 

 

$

6.60

 

 

$

10.18

 

 

See notes (3) and (4) to the condensed consolidated statements of income and supplemental information on page 10 for more information on as adjusted items and the reconciliation to GAAP.

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

 

BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance the comparability of this information for the reporting periods presented. Non-GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP measures may not be comparable to other similarly titled measures of other companies.

9

 


 

Management uses both GAAP and non-GAAP financial measures in evaluating BlackRock’s financial performance.  Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

Computations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance and to determine the long-term and annual compensation of the Company’s senior-level employees. Furthermore, this metric is used to evaluate the Company’s relative performance against industry peers, as it eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

Operating income, as adjusted, includes non-GAAP expense adjustments. In the first quarter of 2020, the Charitable Contribution expense of $589 million has been excluded from operating income, as adjusted, due to its nonrecurring nature.

Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods.  Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure, for both management and investors, of BlackRock’s nonoperating results, which ultimately impact BlackRock’s book value. In the first quarter of 2020, the noncash, nonoperating pre-tax gain of $122 million related to the Charitable Contribution has been excluded from nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, due to its nonrecurring nature.

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See aforementioned discussion regarding operating income, as adjusted, operating margin, as adjusted, and nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, for information on the Charitable Contribution.

In the first quarter of 2020, a discrete tax benefit of $241 million was recognized in connection with the Charitable Contribution. The discrete tax benefit has been excluded from as adjusted results due to the non-recurring nature of the Charitable Contribution. Amounts for income tax matters represent net noncash (benefits) expense primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. These amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to ensure comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted divided by diluted weighted-average common shares outstanding.

(4) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations. At both March 31, 2021 and December 31, 2020, there were no shares of preferred stock outstanding.

(5) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services.


10

 


 

FORWARD-LOOKING STATEMENTS

 

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) a pandemic or health crisis, including the COVID-19 pandemic, and its continued impact on financial institutions, the global economy or capital markets, as well as BlackRock’s products, clients, vendors and employees, and BlackRock’s results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management (“AUM”); (4) the relative and absolute investment performance of BlackRock’s investment products; (5) BlackRock’s ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock’s ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) terrorist activities, civil unrest, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (18) the ability to attract and retain highly talented professionals; (19) fluctuations in the carrying value of BlackRock’s economic investments; (20) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (21) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (22) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (23) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (24) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds (“ETF”) platform; (25) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (26) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

PERFORMANCE NOTES

 

Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2021 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of February 28, 2021. The performance data does not include accounts terminated prior to March 31, 2021 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of March 31, 2021 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

11