BlackRock(BLK) - 2024 Q2 - Quarterly Results

Executive Summary & Highlights Q2 2024 Financial Highlights BlackRock achieved strong Q2 2024 financial performance with diluted EPS of $9.99 and adjusted EPS of $10.36, alongside AUM growth to $10.6 trillion and significant net inflows Q2 2024 Key Financial Metrics (Year-over-Year) | Metric | Q2 2024 | Q2 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Diluted EPS (GAAP) | $9.99 | $9.06 | 10% | | Diluted EPS (Adjusted) | $10.36 | $9.28 | 12% | | Revenue | $4,805 Million | $4,463 Million | 8% | | Operating Income (GAAP) | $1,800 Million | $1,615 Million | 11% | | Operating Income (Adjusted) | $1,881 Million | $1,675 Million | 12% | | AUM | $10.6 Trillion | $9.4 Trillion | $1.2 Trillion | | Total Net Inflows (Quarter) | $82 Billion | $80 Billion | - | | Total Net Inflows (YTD) | $139 Billion | - | - | - The company announced an agreement to acquire Preqin, aiming to further transform BlackRock's private markets capabilities by offering integrated investments, technology, and data[2] - $500 million of stock was repurchased during the quarter[2] CEO Commentary & Strategic Initiatives Chairman and CEO Laurence D. Fink highlighted BlackRock's pursuit of broad market opportunities in private markets, Aladdin technology, and comprehensive portfolio solutions, actively expanding into new growth areas through strategic acquisitions - BlackRock is capitalizing on broad opportunities in private markets, Aladdin, and comprehensive portfolio solutions for ETFs and active investments[3] - The company is expanding into new growth markets through the planned acquisitions of Global Infrastructure Partners (GIP) and Preqin[3] - The GIP acquisition, expected to close in Q3 2024, is projected to double private markets base fees and add approximately $100 billion in infrastructure AUM[5] - The company is committed to defining a unique, integrated private markets approach encompassing investments, technology workflows, and data to deepen client relationships and achieve diversified organic revenue growth[6] Financial Performance Overview Key Financial Metrics (GAAP & Adjusted) BlackRock achieved significant financial growth in Q2 2024, with strong increases in revenue, operating income, and diluted EPS across both GAAP and adjusted metrics, demonstrating efficiency in scaled growth Q2 2024 Key Financial Metrics (GAAP & Adjusted) | Metric | Q2 2024 (GAAP) | Q2 2023 (GAAP) | YoY Change (GAAP) | Q2 2024 (Adjusted) | Q2 2023 (Adjusted) | YoY Change (Adjusted) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $4,805 Million | $4,463 Million | 8% | - | - | - | | Operating Income | $1,800 Million | $1,615 Million | 11% | $1,881 Million | $1,675 Million | 12% | | Operating Margin | 37.5% | 36.2% | 130 bps | 44.1% | 42.5% | 160 bps | | Net Income | $1,495 Million | $1,366 Million | 9% | $1,550 Million | $1,399 Million | 11% | | Diluted EPS | $9.99 | $9.06 | 10% | $10.36 | $9.28 | 12% | | AUM | $10,645,721 Million | $9,425,212 Million | 13% | - | - | - | | Average AUM | $10,457,851 Million | $9,187,240 Million | 14% | - | - | - | Condensed Consolidated Statements of Income (QoQ & YoY) BlackRock's Q2 2024 total revenue increased by $342 million (8%) year-over-year to $4.805 billion, primarily driven by growth in investment advisory and securities lending income Condensed Consolidated Statements of Income (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Revenue | $4,805 | $4,463 | $342 | | Investment Advisory, Administration Fees & Securities Lending Revenue | $3,875 | $3,611 | $264 | | Investment Advisory Performance Fees | $164 | $118 | $46 | | Technology Services Revenue | $395 | $359 | $36 | | Operating Income | $1,800 | $1,615 | $185 | | Net Income Attributable to BlackRock, Inc. | $1,495 | $1,366 | $129 | | Diluted EPS | $9.99 | $9.06 | $0.93 | Condensed Consolidated Statements of Income (Q2 2024 vs Q1 2024) | Metric | Q2 2024 (Million) | Q1 2024 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Revenue | $4,805 | $4,728 | $77 | | Investment Advisory, Administration Fees & Securities Lending Revenue | $3,875 | $3,778 | $97 | | Investment Advisory Performance Fees | $164 | $204 | $(40) | | Technology Services Revenue | $395 | $377 | $18 | | Operating Income | $1,800 | $1,693 | $107 | | Net Income Attributable to BlackRock, Inc. | $1,495 | $1,573 | $(78) | | Diluted EPS | $9.99 | $10.48 | $(0.49) | Condensed Consolidated Statements of Income (Year-to-Date) For the six months ended June 30, 2024, BlackRock's total revenue increased by $827 million (10%) year-over-year to $9.533 billion, with operating income and net income also showing strong growth Condensed Consolidated Statements of Income (Six Months Ended June 30, 2024 vs 2023) | Metric | Six Months 2024 (Million) | Six Months 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Revenue | $9,533 | $8,706 | $827 | | Investment Advisory, Administration Fees & Securities Lending Revenue | $7,653 | $7,113 | $540 | | Investment Advisory Performance Fees | $368 | $173 | $195 | | Technology Services Revenue | $772 | $699 | $73 | | Operating Income | $3,493 | $3,053 | $440 | | Net Income Attributable to BlackRock, Inc. | $3,068 | $2,523 | $545 | | Diluted EPS | $20.47 | $16.70 | $3.77 | Assets Under Management (AUM) & Flows AUM Overview BlackRock's AUM reached $10.6 trillion as of June 30, 2024, a 13% year-over-year increase, driven by sustained organic growth and positive market movements, with strong net inflows for the quarter and year-to-date AUM and Net Inflows Overview | Metric | June 30, 2024 | June 30, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | AUM | $10,645,721 Million | $9,425,212 Million | 13% | | Average AUM | $10,457,851 Million | $9,187,240 Million | 14% | | Total Net Inflows (Q2 2024) | $81,565 Million | $80,162 Million | - | | Total Net Inflows (YTD 2024) | $139,000 Million | - | - | - Total net inflows for the first half of the year were $139 billion, including $82 billion in Q2, reflecting the continued strength of the broad platform, including a record start for BlackRock ETFs[2] AUM Changes by Client Type & Product Type (Current Quarter) In Q2 2024, BlackRock's AUM changes were primarily driven by net inflows from ETF and retail clients, alongside positive market movements, despite institutional client outflows Q2 2024 AUM Net Inflows by Client Type | Client Type | Net Inflows (Million) | AUM (Million) | AUM Share | | :--- | :--- | :--- | :--- | | Retail | $5,695 | $992,152 | 9% | | ETF | $83,141 | $3,855,774 | 37% | | Institutional | $(37,470) | $5,019,753 | 47% | | Cash Management | $30,199 | $778,042 | 7% | | Total | $81,565 | $10,645,721 | 100% | Q2 2024 AUM Net Inflows by Product Type | Product Type | Net Inflows (Million) | AUM (Million) | AUM Share | | :--- | :--- | :--- | :--- | | Equity | $6,438 | $5,827,135 | 55% | | Fixed Income | $35,409 | $2,815,884 | 26% | | Multi-Asset | $4,460 | $921,412 | 9% | | Alternatives | $5,059 | $303,248 | 3% | | Cash Management | $30,199 | $778,042 | 7% | | Total | $81,565 | $10,645,721 | 100% | - AUM changes this quarter were influenced by market movements of +$123.027 billion and foreign exchange impacts of -$35.445 billion[18] AUM Changes by Investment Style & Product Type (Current Quarter) In Q2 2024, index and ETF investment styles recorded $54.972 billion in net inflows, while active investments experienced $3.606 billion in net outflows, indicating a continued preference for passive and ETF products Q2 2024 AUM Net Inflows by Investment Style | Investment Style | Net Inflows (Million) | AUM (Million) | AUM Share | | :--- | :--- | :--- | :--- | | Active | $(3,606) | $2,703,506 | 25% | | Index & ETF | $54,972 | $7,164,173 | 68% | | Cash Management | $30,199 | $778,042 | 7% | | Total | $81,565 | $10,645,721 | 100% | AUM Changes by Product Type (Current Quarter) This quarter saw net inflows across fixed income, equity, alternatives, and multi-asset products, with non-liquid alternatives showing positive inflows and liquid alternatives experiencing outflows Q2 2024 AUM Net Inflows by Product Type (Long-Term) | Product Type | Net Inflows (Million) | AUM (Million) | AUM Share | | :--- | :--- | :--- | :--- | | Equity | $6,438 | $5,827,135 | 55% | | Fixed Income | $35,409 | $2,815,884 | 26% | | Multi-Asset | $4,460 | $921,412 | 9% | | Alternatives | $5,059 | $303,248 | 3% | | - Illiquid Alternatives | $1,987 | $137,868 | 1% | | - Liquid Alternatives | $(1,009) | $75,483 | 1% | | - Currency & Commodities | $4,081 | $89,897 | 1% | | Long-Term Total | $51,366 | $9,867,679 | 93% | AUM Changes by Client Type & Product Type (Year-to-Date) Year-to-date total net inflows reached $138.754 billion, with ETFs contributing significantly, while institutional clients experienced net outflows, and market movements positively impacted AUM YTD 2024 AUM Net Inflows by Client Type | Client Type | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Retail | $12,855 | $992,152 | | ETF | $150,382 | $3,855,774 | | Institutional | $(35,458) | $5,019,753 | | Cash Management | $10,975 | $778,042 | | Total | $138,754 | $10,645,721 | - Year-to-date, market movements positively impacted AUM by $599.422 billion, with foreign exchange impacts of -$105.524 billion[21] AUM Changes by Investment Style & Product Type (Year-to-Date) Year-to-date, both index and ETF investment styles and active investments recorded positive net inflows, with index and ETFs showing more substantial growth YTD 2024 AUM Net Inflows by Investment Style (Long-Term) | Investment Style | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Active | $11,288 | $2,703,506 | | Index & ETF | $116,491 | $7,164,173 | | Long-Term Total | $127,779 | $9,867,679 | AUM Changes by Product Type (Year-to-Date) Year-to-date, all major product types, including fixed income, equity, alternatives, and multi-asset, achieved positive net inflows, indicating broad-based growth YTD 2024 AUM Net Inflows by Product Type (Long-Term) | Product Type | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Equity | $24,859 | $5,827,135 | | Fixed Income | $77,144 | $2,815,884 | | Multi-Asset | $9,557 | $921,412 | | Alternatives | $16,219 | $303,248 | | Long-Term Total | $127,779 | $9,867,679 | AUM Changes by Client Type & Product Type (Year-over-Year) As of June 30, 2024, total year-over-year net inflows reached $236.969 billion, with ETFs being a primary driver, while market movements significantly boosted AUM 2024 AUM Annual Net Inflows by Client Type | Client Type | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Retail | $311 | $992,152 | | ETF | $266,624 | $3,855,774 | | Institutional | $(89,096) | $5,019,753 | | Cash Management | $59,130 | $778,042 | | Total | $236,969 | $10,645,721 | - AUM year-over-year changes included $1,053.404 billion in market movement growth and -$76.115 billion in foreign exchange impact[24] AUM Changes by Investment Style & Product Type (Year-over-Year) Year-over-year AUM changes highlight strong growth in index and ETF investment styles, with $180.053 billion in net inflows, further emphasizing the robust momentum of passive investments 2024 AUM Annual Net Inflows by Investment Style (Long-Term) | Investment Style | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Active | $(2,214) | $2,703,506 | | Index & ETF | $180,053 | $7,164,173 | | Long-Term Total | $177,839 | $9,867,679 | AUM Changes by Product Type (Year-over-Year) Year-over-year AUM changes show positive net inflows across all major product types, including fixed income, equity, multi-asset, and alternatives, demonstrating diversified growth 2024 AUM Annual Net Inflows by Product Type (Long-Term) | Product Type | Net Inflows (Million) | AUM (Million) | | :--- | :--- | :--- | | Equity | $24,477 | $5,827,135 | | Fixed Income | $122,535 | $2,815,884 | | Multi-Asset | $21,303 | $921,412 | | Alternatives | $9,524 | $303,248 | | Long-Term Total | $177,839 | $9,867,679 | Revenue Analysis Investment Advisory, Administration Fees & Securities Lending Revenue In Q2 2024, investment advisory, administration fees, and securities lending revenue totaled $3.875 billion, increasing by $264 million year-over-year, driven by organic base fee growth and positive market impact on average AUM Investment Advisory, Administration Fees & Securities Lending Revenue (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Investment Advisory & Administration Fees | $3,721 | $3,427 | $294 | | Securities Lending Revenue | $154 | $184 | $(30) | | Total | $3,875 | $3,611 | $264 | - Securities lending revenue decreased by $30 million to $154 million from $184 million in Q2 2023, primarily reflecting lower spreads[28] Investment Advisory Performance Fees Investment advisory performance fees in Q2 2024 were $164 million, an increase of $46 million year-over-year, primarily due to higher liquid alternatives and long-term product revenue Investment Advisory Performance Fees (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Investment Advisory Performance Fees | $164 | $118 | $46 | | - Alternatives | $120 | $100 | $20 | | - Equity | $28 | $15 | $13 | | - Fixed Income | $5 | $0 | $5 | | - Multi-Asset | $11 | $3 | $8 | - Performance fees decreased by $40 million from Q1 2024, reflecting lower illiquid and liquid alternatives revenue, partially offset by higher long-term product revenue[29] Technology Services Revenue Technology services revenue in Q2 2024 reached $395 million, increasing by $36 million year-over-year and $18 million quarter-over-quarter, reflecting sustained demand for Aladdin technology products Technology Services Revenue (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Technology Services Revenue | $395 | $359 | $36 | | Technology Services ACV | - | - | 10% YoY | | Total | $395 | $359 | $36 | Distribution Fees & Other Revenue Distribution fees in Q2 2024 remained largely flat year-over-year at $318 million, while advisory and other revenue decreased slightly to $53 million, primarily due to lower advisory income Distribution Fees & Other Revenue (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Distribution Fees | $318 | $319 | $(1) | | Advisory & Other Revenue | $53 | $56 | $(3) | | - Advisory | $11 | $31 | $(20) | | - Other | $42 | $25 | $17 | Operating Expense Analysis Employee Compensation and Benefits Employee compensation and benefits expenses in Q2 2024 increased by $74 million year-over-year to $1.503 billion, primarily reflecting higher incentive compensation driven by increased operating income and performance fees Employee Compensation and Benefits (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Employee Compensation & Benefits | $1,503 | $1,429 | $74 | | Total | $1,503 | $1,429 | $74 | - Employee compensation and benefits decreased by $77 million quarter-over-quarter, reflecting lower performance fees and higher seasonal payroll taxes in the prior quarter, partially offset by increased operating income[31] Sales, Asset and Account Expense Sales, asset, and account expenses in Q2 2024 rose by $40 million year-over-year to $929 million, primarily due to increased distribution and service costs and direct fund expenses, reflecting growth in average AUM Sales, Asset and Account Expense (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Distribution & Servicing Costs | $539 | $518 | $21 | | Direct Fund Expenses | $358 | $344 | $14 | | Sub-advisory & Other | $32 | $27 | $5 | | Total | $929 | $889 | $40 | - Sales, asset, and account expenses increased by $41 million quarter-over-quarter, primarily driven by higher distribution and servicing costs and direct fund expenses, reflecting growth in average AUM[32] General and Administration Expense General and administration expenses in Q2 2024 increased by $41 million year-over-year to $534 million, mainly due to higher professional services fees, including acquisition-related transaction costs, and technology expenses General and Administration Expense (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Marketing & Promotion | $76 | $74 | $2 | | Occupancy & Office Related | $102 | $100 | $2 | | Portfolio Services | $63 | $69 | $(6) | | Technology | $157 | $141 | $16 | | Professional Services | $64 | $35 | $29 | | Communications | $9 | $12 | $(3) | | Total | $534 | $493 | $41 | - General and administration expenses increased by $41 million year-over-year, primarily due to higher professional services fees, including acquisition-related transaction costs, and technology expenses[32] Nonoperating Income (Expense) & Income Tax Nonoperating Income (Expense) GAAP nonoperating income (expense) in Q2 2024 decreased by $37 million year-over-year to $214 million, with adjusted nonoperating income (expense) less noncontrolling interests also declining, primarily due to net investment losses Nonoperating Income (Expense) (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Nonoperating Income (Expense), GAAP | $214 | $251 | $(37) | | Less: Net Income (Loss) Attributable to Noncontrolling Interests | $42 | $57 | $(15) | | Nonoperating Income (Expense), Less Noncontrolling Interests | $172 | $194 | $(22) | | Less: Deferred Cash Compensation Plan Hedge Gains (Losses) | $7 | $16 | $(9) | | Nonoperating Income (Expense), Less Noncontrolling Interests, As Adjusted | $165 | $178 | $(13) | Net Investment Gains (Losses) (Less Noncontrolling Interests) (Q2 2024 vs Q2 2023) | Investment Type | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Private Equity | $15 | $151 | $(136) | | Real Estate | $9 | $2 | $7 | | Other Alternatives | $10 | $4 | $6 | | Other Investments | $34 | $(7) | $41 | | Subtotal | $75 | $166 | $(91) | - Interest and dividend income significantly increased by $89 million to $178 million from $89 million in Q2 2023[33] Income Tax Expense Income tax expense in Q2 2024 increased by $34 million year-over-year to $477 million, with an effective tax rate of 24.2%, a decrease of 30 basis points Income Tax Expense (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | Change (Million) | | :--- | :--- | :--- | :--- | | Income Tax Expense | $477 | $443 | $34 | | Effective Tax Rate | 24.2% | 24.5% | (30) bps | | Total | $477 | $443 | $34 | - Q1 2024 income tax expense included a $137 million discrete tax benefit related to a global intellectual property and technology platform reorganization, which was excluded from adjusted results[35] Non-GAAP Financial Measures Reconciliation & Notes Operating Income and Operating Margin, As Adjusted BlackRock provides adjusted operating income and margin as non-GAAP metrics to better reflect ongoing financial performance, with Q2 2024 adjusted operating income at $1.881 billion and margin at 44.1%, significantly higher than GAAP Adjusted Operating Income and Operating Margin Reconciliation (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | | :--- | :--- | :--- | | Operating Income, GAAP | $1,800 | $1,615 | | Non-GAAP Expense Adjustments: | | | | - Deferred Cash Compensation Plan Related Compensation Expense | $9 | $12 | | - Amortization of Intangible Assets | $39 | $37 | | - Acquisition-Related Compensation Costs | $19 | $4 | | - Acquisition-Related Transaction Costs | $13 | $3 | | - Contingent Consideration Fair Value Adjustments | $1 | $1 | | - New York Lease Costs | $0 | $3 | | Operating Income, As Adjusted | $1,881 | $1,675 | | Operating Margin, GAAP | 37.5% | 36.2% | | Operating Margin, As Adjusted | 44.1% | 42.5% | Nonoperating Income (Expense), Less NCI, As Adjusted Adjusted nonoperating income (expense), less noncontrolling interests, provides a more comparable measure of nonoperating performance, reaching $165 million in Q2 2024 after adjusting for deferred cash compensation plan hedge gains or losses Adjusted Nonoperating Income (Expense), Less Noncontrolling Interests Reconciliation (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | | :--- | :--- | :--- | | Nonoperating Income (Expense), GAAP | $214 | $251 | | Less: Net Income (Loss) Attributable to Noncontrolling Interests | $42 | $57 | | Nonoperating Income (Expense), Less Noncontrolling Interests | $172 | $194 | | Less: Deferred Cash Compensation Plan Hedge Gains (Losses) | $7 | $16 | | Nonoperating Income (Expense), Less Noncontrolling Interests, As Adjusted | $165 | $178 | Net Income Attributable to BlackRock, Inc., As Adjusted Adjusted net income attributable to BlackRock, Inc. and diluted EPS are useful indicators of profitability, with Q2 2024 adjusted net income at $1.550 billion and adjusted diluted EPS at $10.36, after various non-GAAP adjustments Adjusted Net Income Attributable to BlackRock, Inc. Reconciliation (Q2 2024 vs Q2 2023) | Metric | Q2 2024 (Million) | Q2 2023 (Million) | | :--- | :--- | :--- | | Net Income Attributable to BlackRock, Inc., GAAP | $1,495 | $1,366 | | Non-GAAP Adjustments: | | | | - Net Impact of Deferred Cash Compensation Plan Hedges | $2 | $(3) | | - Amortization of Intangible Assets | $29 | $28 | | - Acquisition-Related Compensation Costs | $13 | $3 | | - Acquisition-Related Transaction Costs | $10 | $2 | | - Contingent Consideration Fair Value Adjustments | $1 | $1 | | - New York Lease Costs | $0 | $2 | | - Income Tax Items | $0 | $0 | | Net Income Attributable to BlackRock, Inc., As Adjusted | $1,550 | $1,399 | | Diluted EPS, GAAP | $9.99 | $9.06 | | Diluted EPS, As Adjusted | $10.36 | $9.28 | Notes on Non-GAAP Adjustments BlackRock utilizes non-GAAP financial measures to assess ongoing operational performance and enhance comparability with peers, adjusting for non-recurring or non-cash items like deferred cash compensation, acquisition costs, and specific tax benefits - Management considers adjusted operating income and operating margin effective metrics for evaluating BlackRock's long-term financial performance, used for assessing financial results, determining senior employee compensation, and comparing with industry peers[40] - Non-GAAP expense adjustments include market valuation changes of deferred cash compensation plans (economically hedged), amortization of intangible assets, acquisition-related costs (professional services fees, non-recurring retention compensation, and contingent consideration adjustments), and specific New York lease costs[41] - Revenue used for calculating adjusted operating margin excludes all distribution fees and a portion of investment advisory fees used to pay distribution and servicing costs, aiming to neutralize margin fluctuations from varying product structures and distribution channels[42] - Adjusted net income excludes non-recurring or non-cash tax items, such as the $137 million discrete tax benefit in Q1 2024 related to an intellectual property reorganization[44] - Technology Services Annual Contract Value (ACV) is an effective metric for measuring technology services revenue growth, representing a forward-looking, annualized estimate of recurring subscription fees under client contracts[46] Investment Performance Investment Performance As of June 30, 2024, BlackRock demonstrated strong investment performance, with a high percentage of actively managed and index AUM outperforming benchmarks or staying within tolerance across fixed income and equity categories Investment Performance (As of June 30, 2024) | Category | One Year | Three Year | Five Year | | :--- | :--- | :--- | :--- | | Fixed Income: | | | | | Actively Managed AUM Outperforming Benchmark or Peer Median: | | | | | - Taxable | 76% | 79% | 85% | | - Tax-Exempt | 62% | 65% | 54% | | Index AUM Within Applicable Tolerance | 95% | 100% | 99% | | Equity: | | | | | Actively Managed AUM Outperforming Benchmark or Peer Median: | | | | | - Fundamental | 56% | 44% | 78% | | - Systematic | 96% | 89% | 93% | | Index AUM Within Applicable Tolerance | 98% | 100% | 100% | - Past performance is not indicative of future results; performance information is based on preliminary available data[12] Corporate Information Teleconference & Webcast Information BlackRock's Q2 2024 earnings call, hosted by key executives, was held on Monday, July 15, 2024, at 7:30 AM ET, with public access available via dial-in or the company's investor relations website - The teleconference was held on Monday, July 15, 2024, at 7:30 AM ET, hosted by Chairman and CEO Laurence D. Fink, President Robert S. Kapito, and CFO Martin S. Small[13] - Live webcast and replay are available on BlackRock's investor relations website at www.blackrock.com[13](index=13&type=chunk)[14] About BlackRock BlackRock's purpose is to help more people experience financial well-being by acting as a fiduciary to investors and a leading financial technology provider, making investing more accessible and affordable - BlackRock's purpose is to help more people achieve financial well-being, with AI-driven language learning subscription products as a core revenue source[15] - The company serves as a fiduciary to investors and a leading financial technology provider, committed to making investing more accessible and affordable[15] Legal & Disclosure Forward-Looking Statements This earnings release contains forward-looking statements regarding BlackRock's future financial or business performance, strategy, or expectations, which are subject to numerous assumptions, risks, and uncertainties that may cause actual results to differ materially - Forward-looking statements pertain to BlackRock's future financial or business performance, strategy, or expectations, and are subject to numerous assumptions, risks, and uncertainties[47][48] - Actual results may differ materially from forward-looking statements, and the company undertakes no obligation to update them[48] - Risk factors include business initiatives, market volatility, increased competition, future acquisitions (e.g., Preqin and GIP), technological changes, regulatory actions, reputational harm, geopolitical instability, and climate-related risks[49] Performance Notes Performance information as of June 30, 2024, is based on preliminary data, with past performance not indicative of future results, and AUM information is based on individual accounts or funds without adjustment for overlapping management - Past performance is not indicative of future results; performance information is as of June 30, 2024, based on preliminary available data[51] - Performance data includes all actively and passively managed equity and fixed income accounts, excluding terminated accounts or those with unverified data[51] - Performance comparisons are generally gross-of-fees for institutional and high-net-worth separate accounts, and net-of-fees for retail funds; AUM information is not adjusted for overlapping management[52]