Black Rock Annual Report 2023

2023 Annual Report
Embracing
transformation
2023 AUM
BlackRock | 2023 Annual Report 1
Total AUM1
BlackRock has the best solutions across all our

investment strategies, asset
led our industry classes and fund structures while
for years by embedding our ETF and index

expertise across the firm. We also
transforming We bring
introduced a newthe
International
BlackRock
business structure to drive scale, The infrastructure
and reimagining provide unified leadership and imperative
platform strategy
ourselves to stay allow us to be simultaneously more
to life
global by delivering
and more local in fast-
Infrastructure is expected to
ahead of the needs access, expertise,
growing international markets.
be one of the fastest-growing
segments of private markets in the
of our clients and andweservice. years ahead. An unprecedented
And anticipate our
by being ready planned acquisition of
public need for investment in
Reimagining
global infrastructure systems,
to seize new Global Infrastructure combined with record government
opportunities. Partners ("GIP") will deficits, means that private
propel our success capital will be needed like never
our platform In January, we announced two before. This supply-demand

in the fast-growing
transformational moves in imbalance creates compelling
anticipation of changes we see
infrastructure market. investment opportunities for our
for the future…

ahead for asset management and clients. Infrastructure also offers
The planned combination of
the capital markets. clients the current cash flow and
BlackRock’s infrastructure
inflation-protected, long-duration
platform and GIP will provide
The strategic re- clients access to investment and
investments they need.
architecture of our operating expertise across the Through the future integration
organization will simplify infrastructure landscape. We of BlackRock and GIP, we aim to
and improve how we work believe the integrated platform connect our clients with bigger and
will deliver clients scale and better opportunities, while also
and deliver for clients. differentiated origination across accelerating growth, diversifying
As part of this re-architecture, we equity, debt and solutions. revenue and generating earnings
created a new strategic Global for our shareholders.
These two transformational changes
Product Solutions group (GPS).
are the largest since our acquisition
GPS will work to deliver our clients
of BGI nearly 15 years ago.
1. BlackRock as of December 31, 2023. Represents total AUM since 2003.

Note: Cover bar chart reflects BlackRock AUM for years ending December 31, 2018 — December 31, 2023.
2 BlackRock | 2023 Annual Report BlackRock | 2023 Annual Report 3
Europe,
Middle East
and Africa
$2,479B
…with clients Americas

ex-U.S.
always at the
$356B
center
Asia
Pacific
Everything we do More than half of the
Helping more and more people
$802B United
money BlackRock States
is for our clients. experience financial well-being
$6,372B
manages is related to
We listen to them, retirement. Launched iShares LifePath
learn from them, So helping people finance
Target Date ETFs, helping
Americans access retirement
and put their retirement is a major focus of savings solutions through low-
ours. BlackRock is committed to
needs first. building more intuitive, resilient
cost ETFs
retirement solutions so that more Made a minority investment in

Thousands of clients, who invest
people can save for retirement. We Upvest, which creates technology
on behalf of millions of individuals
are working with governments and infrastructure to lower the barriers
around the globe, entrust us
the private sector across dozens of to entry for millions of investors
with over $10 trillion of their own
countries to provide our retirement across Europe
money. In 2023 alone, BlackRock
system expertise, insights,
generated $289 billion of net new Partnered with Monzo to provide
products and services.
client assets. better access to digital investing
We see significant opportunity in the UK
Understanding our clients’ needs
to deepen relationships and
and applying that to our vision Announced our agreement to form
consolidate share with our clients
for the future of our industry Jio BlackRock, where we see the
as the only partner that can
has defined our history. That potential to revolutionize India’s
provide integrated investment
commitment gave rise to the asset management industry
management and technology
invention and growth of Aladdin.
across public and private markets,
It drove the revolution that made
ultimately driving better long-
iShares ETFs ubiquitous with tens Delivering performance
term outcomes. Total AUM by Region1
of millions of investors globally.
And it accelerated our ambition Durable active investment
to lead in infrastructure private performance contributed to
markets, including our planned nearly $60B of net inflows across
acquisition of GIP. our active platform in 2023
Precise tracking for index and

ETFs, with 96%+ of equity and
fixed income index AUM within or
above applicable tolerance for the
1-, 3- and 5-year periods2
1. BlackRock as of December 31, 2023.

2. BlackRock as of December 31, 2023. Past performance is not indicative of future results.
4 BlackRock BlackRock | 2023 Annual Report 5
2023
2022
Technology
Services Revenue 2021
We got our start sales were multi-product, as

clients increasingly extend their
by helping long- partnership with Aladdin.
2020
term investors Through its dynamic ecosystem
better manage of over 130,000 users, the Aladdin
Enhancing our operating
platform is constantly innovating
2019 their risk and and improving. Investments in model through AI
portfolios in a Aladdin AI copilots, enhancements
in openness supporting ecosystem As a technology leader in asset
scaled way using partnerships, and advancing management, we’ve used AI
and related tools including
technology. whole portfolio solutions including
private markets and digital assets optimization, data science,
are going to further augment the machine learning and natural
That is what drove our early
2018 value of Aladdin. language processing for years.
investment in Aladdin – and
We started our AI Labs in 2018 to
many of the investments we have
build technology-first solutions to
made since – to enhance our
50%+
drive productivity, efficiency and
understanding of risk factors
investment performance across
Technology
to deliver better outcomes for
our platform.
our clients. of Aladdin sales were across
multiple products We’ve used AI to generate alpha in
In the same way that many
systematic strategies for decades,
powering the
of our asset management
and we have more recently been
130,000+
clients are consolidating their
bringing these techniques to
portfolios with fewer managers,
alternatives. We use AI to bring
our clients are looking to use
portfolio of
Aladdin users1 operational efficiencies across
fewer technology providers. In
trade execution, operations and
2023, BlackRock generated
enterprise data management. We
$1.5 billion of technology services
100+
empower our people to use AI to
the future
revenue. Over 50% of our Aladdin
provide richer client interactions
and build better portfolios. We’re
specialists in AI-related fields,
now bringing AI to Aladdin to
including optimization, data
reduce friction in investing and
science, machine learning and create a seamless end-to-end
natural language processing1 investment lifecycle for our clients.
1. BlackRock as of December 31, 2023.

Client-first
approach to global
innovation
Innovation is
crucial to how
we deliver
performance and
Private Markets Active ETFs
stay ahead of our
BlackRock has been successfully In 2023, BlackRock launched
clients’ needs. scaling our private markets 19 active ETFs, leveraging the
platform, which has more than benefits of the ETF structure
That commitment to innovating doubled over the last 5 years. Our alongside the insights of our
and evolving for our clients has global network of relationships, portfolio managers to help clients
been behind everything we’ve data and analytics, and flexible, reach the outcomes they seek.
done as a firm, whether it’s adaptable capital mean we can
unlocking new markets through source proprietary deals for Some of these strategies seek to BlackRock ETF Flows
iShares; pioneering whole portfolio our clients and mobilize assets outperform a benchmark, while Nearly 20% of ETF flows
advisory; launching Aladdin on to accelerate innovation and others use options strategies to from products launched
since 2020 1
the desktops of investors; and so economic growth. At the same generate income or provide greater
much more. time, our increasing momentum downside protection, such as our
in private markets is delivering Buy/Write and Buffer ETFs.
value for our shareholders through
In January 2024, the iShares
organic asset and revenue growth.
Bitcoin ETF began trading –
another landmark moment that
advances ETF innovation and
$1.2B expands access to bitcoin for

investors.
record private markets revenue
in 2023 We will continue to enable more
convenient and cost-effective
investment access across asset
classes through innovation, risk
$14B management and technology.
of private markets net inflows
1. Bloomberg, BlackRock as of December 31, 2023. Represents net inflows to iShares products launched since 2020 as a proportion of total
iShares ETF net inflows in 2023.
Unlocking
value for our Almost fifteen
years ago,
Our firm looked different back
then. But it is our willingness to
reimagine our business and seize
value for our clients, we also
create more durable value for our
shareholders.
shareholders
opportunities that has accelerated
after our our growth and generated value
for our shareholders.
Since our IPO in 1999, we have
generated a total return of
transformational Our shareholder value framework
over 9,000%, including nearly
140% in just the last five years –
acquisition of is simple – we focus on generating
organic growth, driving operating
well in excess of peers and
broader markets.
BGI and iShares, leverage and returning excess
capital to shareholders. Over the We believe we enter 2024 in a
BlackRock stock last 5 years, clients have entrusted
BlackRock with over $1.9 trillion
stronger position than ever,
and all of us at BlackRock are
was 80% held in net new assets, driving organic excited about the opportunities
ahead for our clients, the firm
asset and base fee growth. The
by three large powerful simplicity of our business and our shareholders.
model is that when we deliver
institutions.
Today we’re
proud to have $289B 15%+
of total net inflows in 2023 IRR on share repurchases in
Total Return (%)1 thousands last five years
of owners of
BlackRock. $4.5B+ 9,000%+1
returned to shareholders total return on BlackRock’s
through a combination stock since IPO
of dividends and share
repurchases after investing for
growth in 2023
1. Total return is cumulative and reflective of October 1, 1999 to December 31, 2023 since IPO and December 31, 2018 to December 31, 2023 for
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 last five years, assuming reinvestment of all dividends. Graph includes BlackRock (orange), S&P 500 (pink) and S&P 500 Financials (yellow). Past
performance is not indicative of future results.
Annual chairman’s letter to investors
Time to rethink
retirement
When my mom passed away in nearly $20,000.1 That’s more generate wealth for millions Before the 1970s, most people
2012, my dad started to decline than double what they would have more people. secured financing for their homes
quickly, and my brother and I had earned if they’d just put the money the same way they did in the
My parents lived their final years
to go through my parents’ bills in a bank account. My dad passed Christmas classic It’s a Wonderful
with dignity and financial freedom.
and finances. away a few months after my mom, Life – through the Building & Loan
Most people don’t have that
in his late 80s. But both my parents (B&L). Customers deposited their
Both my mom and dad worked chance. But they can. The same
could have lived beyond 100 and savings into the B&L, which was
great jobs for 50 years, but they kinds of markets that helped my
comfortably afforded it. essentially a bank. Then that bank
were never in the top tax bracket. parents in their time can help
would turn around and lend out
My mom taught English at the local Why am I writing about my parents? others in our time. Indeed, I think
those savings in the form of
state college (Cal Northridge), and Because going over their finances the growth- and prosperity-
mortgages.
my dad owned a shoe store. showed me something about my generating power of the capital
own career in finance. I had been markets will remain a dominant In the movie – and in real life –
I don’t know exactly how much they
working at BlackRock for almost 25 economic trend through the rest everything works fine until people
made every year, but in today’s
years by the time I lost my mom and of the 21st Century. start lining up at the bank’s front
dollars, it was probably not more
dad, but the experience reminded door asking for their deposits back.
than $150,000 as a couple. So, my This letter attempts to explain why.
me – in a new and very personal way As Jimmy Stewart explained in
brother and I were surprised when
– why my business partners and I the film, the bank didn’t have their
we saw the size of our parents’
founded BlackRock in the first place. money. It was tied up in somebody
retirement savings. It was an order
of magnitude bigger than you’d Obviously, we were ambitious A brief (and admittedly else’s house.
expect for a couple making their entrepreneurs, and we wanted to incomplete) history of After the Great Depression, B&Ls
income. And when we finished build a big, successful company. morphed into savings & loans
U.S. capital markets
going over their estate, we learned But we also wanted to help (S&Ls), which had their own crisis
why: my parents’ investments. people retire like my parents In finance, there are two basic ways in the 1980s. Approximately half of
did. That’s why we started an to get or grow money. the outstanding home mortgages
My dad had always been an 7,700%
asset manager – a company that in the U.S. were held by S&Ls in
enthusiastic investor. He One is the bank, which is what most
helps people invest in the capital 1980, and poor risk management
encouraged me to buy my first people historically relied on. They
markets – because we believed and loose lending practices led
stock (the DuPont chemical deposited their savings to earn
participating in those markets to a raft of failures costing U.S.
company) as a teenager. My dad interest or took out loans to buy
was going to be crucial for people taxpayers more than $100 billion
invested because he knew that a home or expand their business.
who wanted to retire comfortably dollars.2
whatever money he put in the bond But over time a second avenue for
and financially secure.
or stock markets would likely grow financing arose, particularly in the But the S&L crisis didn’t cause the
faster than in the bank. And he We also believed the capital U.S., with the growth of the capital American economy lasting damage. 365%
was right. markets would become a bigger markets: publicly traded stocks, Why? Because at the same time
Artwork: Rick Lowe’s Untitled, 2023. © Rick Lowe Studio

362%
and bigger part of the global bonds, and other securities. the S&Ls were collapsing another
I went back and did the math. If
economy. If more people could method of financing was getting
my parents had $1,000 to invest I saw this firsthand in the late 1970s
invest in the capital markets, it stronger. The capital markets were
in 1960, and they put that money and early 1980s when I played a role
would create a virtuous economic providing an avenue to channel
in the S&P 500, then by the time in the creation of the securitization
cycle, fueling growth for companies capital back to challenged real
they’d reached retirement age in market for mortgages.
and countries, which would, in turn, estate markets.
1990, the $1,000 would be worth
1. Based on a $1,000 investment from January 1960 to December 1990. Assumes reinvestment of all dividends. Past performance is not 2. Federal Reserve History, Savings and
indicative of future results. Loan Crisis
This was mortgage securitization. economic history: Countries underperformed the Indian lives. They’ll need more money. The This is part of the reason the
aiming for prosperity don’t just stock market, proving a subpar capital markets can provide it – Japanese government is making
Securitization allowed banks not
just to make mortgages but to sell
need strong banking systems investment for individual investors. so long as governments and Asking the old a push for retirement investment.
– they also need strong capital Nor has investing in gold helped companies help people invest.
them. By selling mortgages, banks
age question: Most Japanese keep the bulk of
2
markets. the country’s economy.
could better manage risk on their A second challenge is their retirement savings in banks,
balance sheets and have capital That lesson is now spreading Compare investing in gold with, infrastructure. How are How do we afford earning a low interest rate. It wasn’t
to lend to home buyers, which is around the world. let’s say, investing in a new house. we going to build the such a bad strategy when Japan
why the S&L crisis didn’t severely When you buy a home, that creates massive amount the longer lives? was suffering from deflation, but
impact American homeownership. an economic multiplier effect world needs? now the country’s economy has
because you need to furnish As countries decarbonize and turned around, with the NIKKEI
Eventually, the excesses Replicating the and repair the house. Maybe you digitize their economies, they’re
Last year, Japan passed a
surging past 40,000 for the first
of mortgage securitization demographic milestone. The
contributed to the crash in 2008,
success of America’s have a family and fill the house supercharging demand for all sorts
country’s population has been
time this month (March 2024).8
with children. All that generates of infrastructure, from telecom
and unlike the S&L crisis, the capital markets aging since the early 1990s as Most aspiring retirees are missing
economic activity. Even when networks to new ways to generate
Great Recession did harm home the pool of working-age people out on the upswing. The country
Last year, I spent a lot of days someone puts their money in a power. In fact, in my nearly 50 years
ownership in the U.S. The country has shrunk and the number of didn’t have anything resembling
on the road, logging visits to 17 bank, there’s a multiplier effect in finance, I’ve never seen more
still hasn’t fully recovered in that elderly has risen. But 2023 was a 401(k) program until 2001, but
different countries. I met with because the bank can use that demand for energy infrastructure.
respect. But the broader underlying the first time that 10% of their even then, the amount of income
clients and employees. I also money to fund a mortgage. But And that’s because many countries
trend – the expansion of the capital people exceeded 80 years old,6 people could contribute was
met with many policymakers and gold? It just sits in a safe. It can have twin aims: They want to
markets – was still very helpful for making Japan the “oldest country quite low. So a decade ago, the
heads of state, and during those be a good store of value, but gold transition to lower-carbon sources
the American economy. in the world” 7 according to the government launched the Nippon
meetings, the most frequent doesn’t generate economic growth. of power while also achieving energy
United Nations. Individual Savings Accounts
In fact, it’s worth considering: conversation I had was about the security. The capital markets can
This is a small illustration – but a (NISA) to encourage people to
Why did the U.S. rebound from capital markets. help countries meet their energy
good one – of what countries want invest even more in retirement.
2008 faster than almost any goals, including decarbonization,
More and more countries to accomplish with robust capital Now they’re trying to double NISA’s
other developed nation? 3 in an affordable way.
recognize the power of American markets. (Or rather, of what they
A big part of the answer is the capital markets and want to build can’t accomplish without them).
country’s capital markets. their own.
Despite the anti-capitalist strain As populations age, building retirement savings has never been more urgent
In Europe, where most assets were Of course, many countries do have in our modern politics, most world
kept in banks, economies froze capital markets already. There are leaders still see the obvious: No
130%
as banks were forced to shrink something like 80 stock exchanges other force can lift more people 2020 Peak Year
their balance sheets. Of course, around the world, everywhere from from poverty or improve quality
% of 2020 National Working Age Population

120% Australia 2100
U.S. banks had to tighten capital Kuala Lumpur to Johannesburg.5 of life quite like capitalism. No
standards and pull back from But most of these are rather small, other economic model can help
110%
lending as well. But because the with little investment. They’re not us achieve our highest hopes for India 2048
U.S. had a more robust secondary as robust as the markets in the U.S., financial freedom – whether we USA 2053
100%
pool of money – the capital markets and that’s what other nations are want it for ourselves or our country.
Mexico 2039
– the nation was able to recover increasingly looking for.
That’s why the capital markets 90% UK 2029
much more quickly.
In Saudi Arabia, for example, will be key to addressing two of
Today public equities and bonds the government is interested in the mid-21st Century’s biggest 80% Brazil 2035
provide over 70% of financing for building a market for mortgage economic challenges.
1
non-financial corporations in the securitization while Japan and India 70%
The first is providing
U.S. – more than any other country want to give people new places to
people what my
in the world. In China, for example, put their savings. Today, in Japan, 60% Japan 1994
parents built over time
the bank-to-capital market ratio is it’s mostly the bank. In India, it’s
– a secure, well-earned
almost flipped. Chinese companies often in gold. 50%
retirement. This is a
rely on bank loans for 65% of 2010 2020 2030 2040 2050 2060 2070
When I visited India in November, much harder proposition than it
their financing.4
I met policymakers who lamented was 30 years ago. And it’ll be a
Source: Working-age population (ages 15-64): UN “medium trend” 9
In my opinion, this is the most their fellow citizens’ fondness much harder proposition 30 years
important lesson in recent for gold. The commodity has from now. People are living longer
6. World Economic Forum, Ageing and Longevity, (2023)

7. United Nations, World Population Ageing, (2017), p.8
8. The Wall Street Journal, Japan’s Nikkei Tops 40000 for First Time, Driven by AI Optimism, (2024)
9. Note: 1. Format adapted from Adele M. Hayutin, New Landscapes of Population Change: A Demographic World Tour (Hoover Press, 2022).
3. OCED Economic Surveys: United States (2016) Data from United Nations Population Division, World Population Prospects. (latest refresh 2022), Medium Fertility Projection. 2. Peak year is
4. Securities Industry and Financial Markets Association, Capital Markets Fact Book (2023), p.6 defined as the year in which working age population reaches its maximum for a country. Sources: United Nations Population Statistics (as of
5. World Federation of Exchanges, Market Statistics-February 2024, (2024) 2022). OECD (as of 06/2023). World Bank (as of 2022).
enrollment. The goal is 34 million It’s no wonder younger generations, More than half the assets But now think about that person’s
Japanese investors before the end Millennials and Gen Z, are so BlackRock manages are for former colleagues, all the people
of the decade.10 It will require the Rethinking retirement in economically anxious. They believe retirement.15 We help about 35 The demographics around his age who he’d entered
Japanese government to expand the United States my generation – the Baby Boomers million Americans invest for life don’t lie the workforce with back in the
their capital markets, which – have focused on their own after work,16 which amounts to 1910s. The data shows that in 1952,
historically had very little retail This was particularly clear last year financial well-being to the detriment about a quarter of the country’s There’s a popular saying in most of those people were not
participation. as the biotech industry pumped of who comes next. And in the case workers.17 Many are educators like economics: “You just can’t fight preparing for retirement because
out a rush of new, life-extending of retirement, they’re right. my mom was. BlackRock helps demographics.” And yet, when it they’d already passed away.
Japan isn’t alone in helping more drugs. Obesity, for example, comes to retirement, the U.S. is
manage pension assets for roughly
of its citizens invest for retirement. can take more than 10 years off Today in America, the retirement trying anyway. This is how the Social Security
half of U.S. public school teachers.18
BlackRock has a joint venture – someone’s life expectancy, which message that the government program functioned: More than half
And this work – and our similar work In wealthy countries, most
Jio BlackRock – with Jio Financial is why some researchers think that and companies tell their workers the people who worked and paid
around the globe – has given us retirement systems have three
Services, an affiliate of India’s new pharmaceuticals like Ozempic is effectively: “You’re on your into the system never lived to retire
some insight into how a national pillars. One is what people invest
Reliance Industries. Over the and Wegovy can be life-extending own.” And before my generation and be paid from the system.19
initiative to modernize retirement personally (my dad putting his
past 10 years, India has built a drugs, not just weight-loss drugs.12 fully disappears from positions of
might begin. money in the stock market). Today, these demographics have
huge digital public infrastructure In fact, a recent study shows that corporate and political leadership,
Another is the plans provided by completely unraveled, and this
network that connects nearly semaglutide, the generic name we have an obligation to change that. We think the conversation starts by
employers (my mom’s CalPERS unraveling is obviously a wonderful
one billion Indians to everything for Ozempic, can give people with looking at the challenge through
Maybe once a decade, the U.S. pension). A third component is what thing. We should want more people
from healthcare to government cardiovascular disease an extra two three different lenses.
faces a problem so big and urgent we hear politicians mostly talking to live more years. But we can’t
payments via their smartphones. years of life where they don’t suffer a that government and corporate • What’s the issue from the about – the government safety net. overlook the massive impact on the
Jio BlackRock’s goal is to use the major condition like a heart attack.13 leaders stop business as usual. perspective of a current worker, In the U.S., this is Social Security. country’s retirement system.
same infrastructure to deliver
These drugs are breakthroughs. They step out of their silos and someone who’s still trying to save
retirement investing (and more). You’re probably familiar with the It’s not just that more people are
But they underscore a frustrating sit around the same table to for retirement?
economics behind Social Security. retiring in America; it’s also that
After all, India is aging, too. The irony: As a society, we focus a find a solution. I participated in
• What about someone who has During your working years, the their retirements are increasing
whole world is, albeit at different tremendous amount of energy on something like this after 2008,
already retired? We have to look government takes a portion of your in length. Today, if you’re married
speeds. Brazil will start seeing more helping people live longer lives. when the government needed
at the problem from the retiree’s income, then after you retire, it and both you and your spouse are
people leave its workforce than But not even a fraction of that to find a way to unwind the toxic
point-of-view — an individual who sends you a check every month. The over the age of 65, there’s a 50/50
enter it by 2035; Mexico will reach effort is spent helping people assets from the mortgage crisis.
has already saved enough to stop idea actually originates from pre- chance at least one of you will be
peak workforce by 2040; India afford those extra years. More recently, tech CEOs and
working but is worried the money World War I Germany, and these receiving a Social Security check
sometime around 2050. the federal government came
It wasn’t always this way. One will run out. “old-age insurance” programs until you’re 90.20
together to address the fragility of
By the mid-century mark, one- reason my parents had a financially gradually became popular over the
America’s semiconductor supply • But first it’s important to look at All this is putting the U.S.
in-six people globally will be secure retirement was CalPERS, 20th Century largely because the
chain. We need to do something retirement in America like you’d retirement system under immense
over the age of 65, up from one- California’s state pension system. demographics made sense.
similar for the retirement crisis. look at a map of America – a strain. The Social Security
in-11 in 2019.11 To support them, As a public university employee, America needs an organized, high- high-level picture of the problem, Think about someone who was Administration itself says that by
governments are going to have to my mom could enroll. But pension level effort to ensure that future the kind a national policymaker 65 years old in 1952, the year I was 2034, it won’t be able to pay people
prioritize building out robust capital enrollment has been declining generations can live out their final might look at. What’s the issue for born. If he hadn’t retired already, their full benefits.21
markets like the U.S. has. across the country since the 1980s.14 years with dignity. the population as a whole? (It’s that person was probably getting
Meanwhile the federal government What’s the solution here? No one
But this isn’t to say the U.S. demographics). ready to stop working.
has prioritized maintaining What should that national effort should have to work longer than
retirement system is perfect. I’m
entitlement benefits for people my do? I don’t have all the answers. But
not sure anybody believes that. The
age (I’m 71) even though it might what I do have is some data and
retirement system in America needs
mean that Social Security will the beginnings of a few ideas from
modernizing, at the very least.
struggle to meet its full obligations BlackRock’s work. Because our core
when younger workers retire. business is retirement. 15. BLK Estimates based on AUM as of December 31st, 2021 and Cerulli data as of 2020. ETF assets include only qualified assets based on Cerulli
data, and assumes 9.5% of institutionally held ETFs are related to pensions or retirement. Institutional estimates includes assets defined as
“related to retirement” and are based on products and clients with a specific retirement mandate (e.g., LifePath, pensions). Estimates for LatAm
based on assets managed for LatAm Pension Fund clients, excluding cash.
16. BlackRock as of Dec. 31, 2021. The overall number of Americans is calculated based on estimates of participants in BlackRock’s Defined
Contribution and Defined Benefit plan clients. The Defined Contribution number is estimated based on data from FERS as well as ISS Market
Intelligence BrightScope for active participants across 401(k) and 403(b). Defined Contribution includes plans with over $100M+ in assets where
participants have access to one or more BlackRock funds; some may not be invested with BlackRock. The Defined Benefit number is estimated
based on data from public filings and Pension & Investments for the total number of participants across the 20 largest U.S. Defined Benefit plans
that are not also Defined Contribution clients of BlackRock.
17. U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, (Feb. 2023)
10. Cabinet Secretariat of Japan, Doubling Asset-based Income Plan, (2022), p.2 18. Represents the total number of active public schoolteachers enrolled in defined benefit plans with assets managed by BlackRock. Excludes
11. United Nations, UN DESA releases new report on ageing, (2019) Virginia, Alaska and Pennsylvania pension clients, as the states’ DB plan is not the default plan for its participants. Public school teachers count
12. The New York Times Magazine, Can We Live to 200? (2021) from the National Center for Education Statistics, projection for 2022 school year. Pensions participation rate based on data from the U.S. Bureau
13. National Library of Medicine, Estimated Life-Years Gained Free of New or Recurrent Major Cardiovascular Events With the Addition of of Labor Statistics: 89% as of March 2022.
Semaglutide to Standard of Care in People With Type 2 Diabetes and High Cardiovascular Risk, (2022) 19. Social Security, Life Tables for the United States Social Security Area 1900-2100, Figure 3a
14. Source 1: Bureau of Labor Statistics, Employee Benefits in the United States, (2023), p.1; Source 2: Bureau of Labor Statistics, Employee 20. Social Security, When to Start Receiving Retirement Benefits, (2023), p.2
Benefits in Industry, (1980), p. 6 21. Social Security, Summary: Actuarial Status of the Social Security Trust Funds, (2023)
they want to. But I do think it’s a Obviously, implementing this policy much to offer rather than people range of investors, retirees, 65 reported not having a single an Emergency Savings Initiative.
bit crazy that our anchor idea for elsewhere would be a massive who should retire? policymakers, and others. Over dollar saved in personal retirement The program has helped mostly low-
the right retirement age – 65 years political undertaking. But my point the next few months, BlackRock accounts.24 Nothing in a pension. income Americans put away a total
One way Japan has managed its
old – originates from the time of the is that we should start having the will be announcing a series of Zero in an IRA or 401(k). of $2 billion in new liquid savings.26
aging economy is by doing exactly
Ottoman Empire. conversation. When people are partnerships and initiatives to do
this. They’ve found new ways to Why? Well, the first barrier Studies show that when people
regularly living past 90, what should just that, and I invite you to join us.
Humanity has changed over boost the labor force participation to retirement investing is have emergency savings, they’re
the average retirement age be?
the past 120 years. So must our rate, a metric that has been affordability. 70% more likely to invest for
conception of retirement. Or rather than pushing back when declining in the U.S. since the early retirement.27 But this is where
Four-in-10 Americans don’t
One nation that’s rethought
people receive retirement benefits, 2000s.23 It’s worth asking: How For workers, make have $400 to spare to cover an
workers run into another barrier:
perhaps there’s a more politically can America stop (or at least, slow) Investing is complex even if you
retirement is the Netherlands. In
palatable idea: How do we encourage that trend?
investing (almost) emergency like a car repair or
can afford it.
order to keep their state pension automatic hospital visit.25 Who is going to
more people who wish to work longer,
affordable, the Dutch decided Again, I’m not pretending to have invest money for a retirement 30 No one is born a natural investor.
with carrots rather than sticks?
more than 10 years ago to gradually the answers. Despite BlackRock’s When the U.S. Census Bureau years away if they don’t have cash It’s important to say that because
What if the government and the
raise the retirement age. It will success helping millions retire, released its regular survey of for today? No one. That’s why sometimes in the financial services
private sector treated 60-plus-year-
now automatically adjust as the these questions are going to consumer finances in 2022, nearly BlackRock’s foundation has worked industry we imply the opposite.
olds as late-career workers with
country’s life expectancy changes.22 have to be posed to a broader half of Americans aged 55 to with a group of nonprofits to set up We make it seem like saving for
22. Dutch Government, Why is the state pension age increasing? (translated from Dutch) 24. U.S. Census Bureau, Survey of Income and Program Participation (SIPP), (2022)
23. U.S. Bureau of Labor Statistics, Civilian labor force participation rate, (2000-2024) 25. Federal Reserve, Economic Well-Being of U.S. Households in 2022, (2023), p.2
26. BlackRock, Emergency Savings Initiative: Impact and Learnings Report, (2019-2022), p.2
27. BlackRock, Emergency Savings Initiative: Impact and Learnings Report, (2019-2022), p.12
Global Executive Committee

Laurence D. Fink Robert S. Kapito Joud Abdel Majeid Lance Braunstein Philipp Hildebrand John Kelly J. Richard Kushel Rachel Lord
Chairman and President Global Head of Head of Aladdin Vice Chairman Global Head of Head of the Portfolio Head of International
Chief Executive Officer Investment Stewardship Engineering Corporate Affairs Management Group
Susan Chan Samara Cohen Stephen Cohen Edwin N. Conway Christopher J. Meade Manish Mehta Sudhir Nair Rick Rieder
Head of Asia Pacific Chief Investment Officer of Chief Product Officer Global Head of Equity General Counsel and Head of BlackRock Global Global Head of Aladdin Chief Investment Officer
ETF and Index Investments Private Markets Chief Legal Officer Markets of Global Fixed Income
Edward J. Fishwick Robert L. Goldstein Charles Hatami Caroline Heller Raffaele Savi Martin S. Small Derek Stein Mark K. Wiedman
Chief Risk Officer & Chief Operating Officer Global Head of the Global Head of Human Global Head of BlackRock Chief Financial Officer Global Head of Head of the
Head of the Risk and Financial and Strategic Resources Systematic Technology & Operations Global Client Business
Quantitative Analysis Investors Group
Group
retirement can be a simple task, the fund automatically adjusts their like a target date fund can do. Indeed, have more retirement savings per It’s a good thing that legislators Even among employees who
something anyone can do with a bit portfolio, shifting from higher- for most people, the data shows capita than any other country. The are proposing different bills and have access to employer plans,
of practice, like driving your car to return equities to less risky bonds that the hardest part of retirement nation has the world’s 54th largest states are becoming “laboratories 17% don’t enroll in them, and the
work. Just grab your keys and hop as retirement approaches. 28 investing is just getting started. population,30 but the 4th largest of retirement.” More should hypothesis among retirement
in the driver’s seat. But financing retirement system.31 consider it. The benefits could be experts is this is not a conscious
In 2023, BlackRock expanded the Other nations make things
retirement isn’t so intuitive. The enormous for individual retirees. choice. People are just busy.
types of target date ETFs we offer simpler for their part-time and Of course, every country is different,
better analogy is if someone These new programs could also
so people can more easily buy contract workers. In Australia, so every retirement system should It sounds trivial, but even the
dropped a bunch of engine and help the U.S. ensure the long-
them even if they don’t work for employers must contribute a be different. But Australia’s hour or so it takes someone to
auto parts in your driveway and term solvency of Social Security.
employers offering a retirement portion of income for every worker experience with Supers could look through their work e-mail
said, “Figure it out.” That’s what Australia found – their
plan. There are 57 million people between the ages of 18 and 70 be a good model for American inbox for the correct link to their
Superannuation Guarantee relieved
At BlackRock, we’ve tried to make like this in America – farmers, gig into a retirement account, which policymakers to study and build company’s retirement system and
the financial tension in their
the investing process more intuitive workers, restaurant employees, then belongs to the employee. on. Some already are. There are then select the percentage of their
country’s public pension program. 33
by inventing simpler products like independent contractors – who The Superannuation Guarantee about 20 U.S. states – like Colorado income they want to contribute
target date funds. They only require don’t have access to a defined was introduced in 1992 when the and Virginia – that have instituted But what about workers who can be the unclearable hurdle.
people to make one decision: What contribution plan.29 And while country seemed like it was on the retirement systems to cover all do have access to an employer That’s why companies should
year do they expect to retire? Once better investment products can help, path to a retirement crisis. Thirty- workers like Australia does, even retirement plan? They need make a conscious effort to look
people choose their “target date,” there are limits to what something two years later, Australians likely if they’re gig or part-time.32 support too. at what their default option is.
28. BlackRock, What are target date funds? 30. CIA: The World Factbook, Country Comparisons: Population (2023 est.)
29. AARP, New AARP Research: Nearly Half of Americans Do Not Have Access to Retirement Plans at Work, (2022) 31. OECD, Pensions at a Glance 2023, (2023), p. 222
32. Georgetown University Center for Retirement Initiatives, State-Facilitated Retirement Savings Programs: A Snapshot of Program Design
Features, (2023)
33. Parliament of Australia, Superannuation and retirement incomes
Board of Directors
Laurence D. Fink Bader M. Alsaad Pamela Daley Amin H. Nasser Gordon M. Nixon Kristin Peck
Chairman and CEO of Chairman of the Board and Director Former Senior Vice President of President and CEO of the Former President and CEO of CEO of Zoetis, Inc.
BlackRock General of the Arab Fund for Corporate Business Development of Saudi Arabian Oil Company Royal Bank of Canada
Economic & Social Development General Electric Company
William E. Ford Fabrizio Freda Murry S. Gerber Charles H. Robbins Marco Antonio Slim Domit Hans E. Vestberg
Chairman and CEO of President and CEO of the Lead Independent Director Chairman and CEO of Chairman of Grupo Financiero Chairman and CEO of Verizon
General Atlantic Estée Lauder Companies Inc. Former Chairman and CEO of Cisco Systems, Inc. Inbursa, S.A.B. de C.V. Communications, Inc.
EQT Corporation
Margaret “Peggy” L. Johnson Robert S. Kapito Cheryl D. Mills Susan L. Wagner Mark Wilson
CEO of Agility Robotics President of BlackRock Founder and CEO of Former Vice Chairman of Former CEO of Aviva plc and
BlackIvy Group BlackRock former President and CEO of AIA
Are people automatically enrolled in the fraction of Americans with Put simply, the shift from In finance, we sometimes think included some eye-catching – and
a plan or not? And how much are defined contribution plans almost defined benefit to defined of “fear” as a fuzzy, emotional really disheartening – data.
they auto-enrolled to contribute? Is For retirees, help them quadrupled.37 contribution has been, for concept – not as a hard economic
The article showed that from the
it a minimum percentage of their spend what they saved This should have been a good thing.
most people, a shift from data point. But that’s what it is. Fear
mid-1990s through most of the
income? Or the maximum? financial certainty to financial is as important and actionable a
In 2018, BlackRock commissioned Beginning with the Baby Boomers, early 21st Century, most young
uncertainty. metric as GDP. After all, investment
In 2017, the University of Chicago a study of 1,150 American retirees. fewer and fewer workers spent people – around 60% of high
(or lack thereof) is just a measure
economist Richard Thaler won When we dug into the data, we their entire careers in one place, That’s why around the same time school seniors, to be specific –
of fear because no one lets their
the Nobel Prize, in part, for his found something unexpected – meaning they needed a retirement we saw the data that retirees were believed they’d earn a professional
money sit in a stock or a bond for
pioneering work around “nudges” even paradoxical. option that would follow them from nervous about spending their degree, would land a good job, and
30 or 40 years if they’re afraid the
– small changes in policy that can job to job. In theory, 401(k)s did savings, we started wondering: Was go on to be wealthier than their
The survey showed that after nearly future is going to be worse than the
have enormous impact in people’s that. But in practice? Not really. there something we could do about parents. They were optimistic. But
two decades of retirement, the present. That’s when they put their
financial lives. Auto-enrollment is it? Could we develop an investment since the pandemic, that optimism
average person still had 80% of Anyone who’s switched jobs knows money in a bank. Or underneath
one of them. Studies show that the strategy that provided the flexibility has fallen precipitously.
their pre-retirement money saved. how unintuitive it is to transfer the mattress.
simple step of making enrollment of a 401(k) investment but also
We’re talking about people who your retirement savings. In fact, Compared with 20 years ago, the
automatic increases retirement the potential for a predictable, This is what happens in many
were probably between the ages of studies show that about 40% of current cohort of young Americans
plan participation by nearly 50%.34 paycheck-like income stream, countries. In China, where new
75 and 95. If they had invested for employees cash out their 401(k)s is 50% more likely to question
similar to a pension? surveys show consumer confidence
As a nation, we should do retirement, they were likely sitting when they switch jobs, putting whether life has a purpose. Four-
has dropped to its lowest level in
everything we can to make on more than enough money for themselves back at the starting line It turns out, we could. That strategy in-10 say it’s “hard to have hope for
decades, household savings have
retirement investing more the rest of their lives. And yet the for retirement savings.38 is called LifePath Paycheck™, which the world.” 41
reached their highest level on record
automatic for workers. And there data also showed that they were will go live in April. As I write this,
The real drawback of defined – nearly $20 trillion – according I’ve been working in finance for
are already bright spots. Next anxious about their finances. Only 14 retirement plan sponsors
contribution was that it to the central bank.39 China has a almost 50 years. I’ve seen a lot of
year, a new federal law will kick in, 32% reported feeling comfortable are planning to make LifePath
removed most of the retirement savings rate of about 30%. Nearly numbers. But no single data point
requiring employers that set up about spending what they saved.35 Paycheck™ available to 500,000
responsibility from employers and a third of all money earned is socked has ever concerned me more than
new 401(k) plans to auto-enroll employees. I believe it will one day be
This retirement paradox has put it squarely on the shoulders of away in cash in case it’s needed for this one.
their new workers. Plus, there are the most used investment strategy
a simple explanation: Even the employees themselves. With harder times ahead. The U.S., by
hundreds of major companies in defined contribution plans. The lack of hope worries me as a
people who know how to save for pensions, companies had a very comparison, has a savings rate in
(including BlackRock) that have CEO. It worries me as a grandfather.
retirement still don’t know how to clear obligation to their workers. We’re talking about a revolution the single digits.40
already taken this step voluntarily. But most of all, it worries me as
spend for it. Their retirement money was a in retirement. And while it may
America has rarely been a fearful an American.
But firms can do even more to financial liability on the corporate happen in the U.S. first, eventually
In the U.S., this problem’s roots country. Hope has been the
improve their employee’s financial balance sheet. Companies knew other countries will benefit from the If future generations don’t feel
stretch back more than four nation’s greatest economic asset.
lives, such as providing some level they’d have to write a check every innovation as well. At least, that is hopeful about this country and
decades when employers began People put their money in American
of matching funds for retirement month to each one of their retirees. my hope. Because while retirement their future in it, then the U.S.
switching from defined benefit markets for the same reason
plans and offering more financial But defined contribution plans is mainly a saving challenge, the doesn’t only lose the force that
plans – pensions – to defined they invest in their homes and
education on the tremendous ended that, forcing retirees to trade data is clear: It’s a spending one too. makes people want to invest.
contribution plans like 401(k)s. businesses – because they believe
long-term difference between a steady stream of income for an America will lose what makes it
this country will be better tomorrow
contributing a small percentage of In a lot of ways, pensions were impossible math problem. America. Without hope, we risk
than it is today.
your income to retirement versus much simpler than the 401(k). You becoming just another place
the maximum. I also think we had a job somewhere for 20 or 30
Because most defined contribution Fear vs. hope This big, hopeful America has where people look at the incentive
accounts don’t come with
should make it easier for workers to years. Then when you retired, your Before I conclude this section on been the one I’ve known my structure before them and decide
instructions for how much you can
transfer their 401(k) savings when pension paid you a set amount – retirement, I want to share a few whole life, but over the past few that the safe choice is the only
take out every month, individual
they switch jobs. There is a menu a defined benefit – every month. words about one of the largest years, especially as I’ve had more choice. We risk becoming a country
savers first must build up a nest-
of options here, and we need to barriers to investing for the future. grandchildren, I’ve started to ask where people keep their money
When I entered the workforce in the egg, then spend down at a rate that
explore all of them. In my view, it’s not just affordability myself: Will they know this version under the mattress and their
1970s, 38% of Americans had one will last them the rest of their lives.
or complexity or the fact that of America, too? dreams bottled up in their bedroom.
of these defined benefit plans, but But who really knows how long that
will be? people are too busy to enroll in their As I was finishing this letter, The How do we get our hope back?
by 2008 the percentage had been
employer’s plan. Wall Street Journal published an
cut almost in half.36 Meanwhile, Whether we’re trying to solve
Arguably the biggest barrier to article that caught my attention.
retirement or any other problem,
investing for retirement – or for It was titled “The Rough Years
that is the first question we have
anything – is fear. that Turned Gen Z into America’s
to ask, although I readily admit
Most Disillusioned Voters,” and it
34. Human Interest, The power of 401(k) automatic enrollment, (2024)

35. BlackRock, To spend or not to spend? (2023), p. 2-5
36. Source 1: The Wall Street Journal, The Champions of the 401(k) Lament the Revolution They Started, (2017); Source 2: Social Security Office
of Retirement and Disability Policy, The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby
Boomers, (2009) 39. The Wall Street Journal, Why China’s Middle Class Is Losing Its Confidence, (2024)
37. U.S. Chamber of Commerce, Statement of the U.S. Chamber of Commerce, (2012), p. 3 40. The Wall Street Journal, Covid-Era Savings are Crucial to China’s Economic Recovery, (2023)
38. Harvard Business Review, Too Many Employees Cash Out Their 401(k)s When Leaving a Job, (2023) 41. The Wall Street Journal, The Rough Years That Turned Gen Z Into America’s Most Disillusioned Voters, (2024)
that I do not have the solution. I international airports – Heathrow people are getting richer, boosting securities — but going forward, the their focus. We can’t see debt as example, net-zero remains a top
look at the state of America – and or Gatwick – you probably chose demand for everything from energy U.S. cannot take for granted that a problem that can be solved only investment priority for most of
the world – and I am as answerless Heathrow. Gatwick was farther to transportation while in wealthy investors will want to buy them in through taxing and spending cuts BlackRock’s clients.50 But now the
as everyone else. There’s so much from the city. It was also in a countries, governments need to such volume or at the premium they anymore. Instead, America’s debt demand for clean energy is being
anger and division, and I often comparative state of disrepair. both build new infrastructure and currently do. efforts have to center around pro- amplified by something else: a
struggle to wrap my head around it. repair the old. growth policies, which include focus on energy security.
But things changed in 2009 when Today, around 30% 47 of U.S.
tapping the capital markets to
What I do know is that any answer Gatwick was purchased by Global Even in the U.S., where the Treasury securities are held by Governments have been pursuing
build one of the best catalysts for
has to start by bringing young people Infrastructure Partners (GIP). They Biden Administration has signed foreign governments or investors. energy security since the oil crisis
growth: infrastructure. Especially
into the fold. The same surveys increased runway capacity and generational infrastructure That percentage will likely go of the 1970s (and probably as
energy infrastructure.
that show their lack of hope also instituted commonsense changes, investments into law, there’s down as more countries build their far back as the early Industrial
show their lack of confidence – far like oversized luggage trays that cut still $2 trillion worth of deferred own capital markets and invest Revolution), so this is not a
less than any previous generation – security screening times by more maintenance.43 domestically. new trend. In fact, when I wrote
in every pillar of society: in politics, than half.
How will we pay for all this More leaders should pay attention Energy pragmatism my original 2020 letter about
government, the media, and in sustainability, I also wrote to our
“The thing about infrastructure infrastructure? The reason I believe to America’s snowballing debt. Roads. Bridges. Ports. Airports.
corporations. Leaders of these clients that countries would still
businesses… is a lot of them tend it’ll have to be some combination There’s a bad scenario where the Cell towers. The infrastructure
institutions (I am one) should be need to produce oil and gas to meet
not to focus on customer service,” of public and private dollars is that American economy starts looking sector contains multitudes, but
empathetic to their concerns. their energy needs.
GIP’s CEO Bayo Ogunlesi told the funding probably cannot come like Japan’s in the late 1990s and the multitude where BlackRock
Young people have lost trust in Financial Times. GIP wanted to make from the government alone. The early 2000s, when debt exceeded sees arguably the greatest demand To be energy secure, I wrote, most
older generations. The burden is Gatwick different. In the process, debt is just too high. GDP and led to periods of austerity for new investment is energy parts of the globe would need “to
on us to get it back. And maybe they also turned the airport into a and stagnation. A high-debt infrastructure. rely on hydrocarbons for a number
From Italy to South Africa, many
investing for their long-term goals, prime example of how infrastructure America would also be one where of years.” 51
nations are suffering the highest Why energy? Two things are
including retirement, isn’t such a will be built and run in the 21st it’s much harder to fight inflation
debt burdens in their history. happening in the sector at the Then in 2022, Putin invaded
bad place to begin. Century – with private capital.42 since monetary policymakers could
Public debt has tripled since the same time. Ukraine. The war lit a fresh spark
not raise rates without dramatically
Perhaps the best way to start In the U.S., people tend to think of mid-1970s, reaching 92% of global under the idea of energy security. It
adding to an already unsustainable The first is the “energy transition.”
building hope is by telling young infrastructure as a government GDP in 2022.44 And in America, the disrupted the world’s supply of oil
debt-servicing bill. It’s a mega force, a major economic
people, “You may not feel very endeavor, something built with situation is more urgent than I can and gas causing massive energy
hopeful about your future. But we taxpayer funds. But because of ever remember. Since the start of But is a debt crisis inevitable? No. trend being driven by nations inflation, particularly in Europe.
do. And we’re going to help you one very big reason that I’ll dive the pandemic, the U.S. has issued representing 90% of the world’s The UK, Norway, and the 27 EU
While fiscal discipline can help GDP.48 With wind and solar power
invest in it.” into momentarily, that won’t be the roughly $11.1 trillion of new debt,45 countries had to collectively spend
tame debt on the margins, it will be now cheaper in many places than
primary way infrastructure is built and the amount is only part of the 800 billion euros subsidizing
very difficult (both politically and fossil-fuel-generated electricity,
in the mid-21st Century. Rather issue. There’s also the interest rate energy bills.52
mathematically) to raise taxes or these countries are increasingly
than only tapping government the Treasury needs to pay on it.
cut spending at the level America installing renewables.49 It’s also This is part of the reason I’m
treasuries to build bridges, power
Three years ago, the rate on a 10- would need to dramatically reduce hearing more leaders talk about
The new grids, and airports, the world will do
what Gatwick did.
year Treasury bill was under 1%. the debt. But there is another way
a major way to address climate
change. This shift – or energy decarbonization and energy
infrastructure The future of infrastructure is

But as I write this, it’s over 4%, and
that 3-percentage-point increase is
out beyond taxing or cutting, and
that’s growth. If U.S. GDP grows
transition – has created a ripple
effect in the markets, creating both
security together under the joint
banner of what you might call
blueprint: steel, public-private partnership. very dangerous. Should the current
rates hold, it amounts to an extra
at an average of 3% (in real, not
nominal terms) over the next five
risks and opportunities for investors, “energy pragmatism.”
including BlackRock’s clients.
concrete, and trillion dollars in interest payments years, that would keep the country’s
I started writing about the
Last year, as I mentioned, I visited
17 countries, and I spent a lot of
over the next decade.46 debt-to-GDP ratio at 120% –
public-private Debt matters high, but reasonable. transition in 2020. Since then, time talking to the people who are
Why is this debt a problem now? the issue has become more responsible for powering homes
partnership The $1 trillion infrastructure sector
is one of the fastest growing
Because historically, America I should be clear: 3% growth is contentious in the U.S. But outside and businesses, everybody from
has paid for old debt by issuing a very tall order, especially given that debate, much is still the same. prime ministers to energy grid
segments of the private markets, new debt in the form of Treasury the country’s aging workforce. It operators. The message I heard
I started traveling to London in the People are still investing heavily
and there are some undeniable securities. It’s a workable strategy will require policymakers to shift was completely opposite to what
1980s, and back then, if you had a in decarbonization. In Europe, for
macroeconomic trends driving this so long as people want to buy those
choice between the city’s two major growth. In developing countries,
47. US Department of Treasury, Table 5: Major Foreign Holders of Treasury Securities

48. As of March 2024. Net Zero Tracker, https://zerotracker.net (last visited March 18th, 2024)
49. Associated Press News, The year in clean energy: Wind, solar and batteries grow despite economic challenges, (2023)
42. Financial Times, How Adebayo Ogunlesi’s contrarian bet led to $12.5bn BlackRock tie-up, (2024) 50. BlackRock iResearch Services global survey, sample size n=200, May-June 2023. Survey covered institutional investors’ attitudes, approaches,
43. American Society of Civil Engineers (ASCE), 2021 Report Card For America’s Infrastructure, (2021), p. 5 barriers, and opportunities regarding transition investing. 83% of EMEA respondents surveyed have net zero by 2050 or other date as a transition
44. International Monetary Fund, Global Debt Is Returning to its Rising Trend, (2023) objective across their portfolio.
45. Fiscal Data: U.S. Treasury, Debt to the Penny, (Debt was $23.4T in March 2020 and $34.5T in March 2024) 51. BlackRock’s 2020 Letter to Clients, Sustainability as BlackRock’s New Standard for Investing, (2020)
46. The Wall Street Journal, A $1 Trillion Conundrum: The U.S. Government’s Mounting Debt Bill, (2024) 52. Reuters, Europe’s spend on energy crisis nears 800 billion euros, (2023)
you often hear from activists need to come partially from natural Power, Africa’s largest windfarm. The energy market isn’t divided modern infrastructure investing
on the far left and right who say gas, the state could continue to It’s located in Kenya and currently the way some people think, with in the private markets.
that countries have to choose suffer devastating brownouts. accounts for about 12% of the a hard split between oil & gas BlackRock’s next
Now, we plan to join our forces
between renewables and oil and In February, BlackRock helped country’s power generation.59 producers on one side and new transformation again. I think the result will be
gas. These leaders believe that convene a summit of investors and clean power and climate tech firms
There are also earlier-stage One way we’re helping our better opportunities for our clients
the world still needs both. They policymakers in Houston to help on the other. Many companies,
technologies, like a giant “hot clients navigate the booming to invest in the infrastructure that
were far more pragmatic about find a solution. like Occidental, do both, which
rock” battery being built by Antora infrastructure market is by keeps our lights on, planes flying,
energy than dogmatic. Even the is a major reason BlackRock has
Texas and Germany are great Energy. The company heats up transforming our company. I began trains moving, and our cell service
most climate conscious among never supported divesting from
illustrations of what the energy blocks of carbon with wind or solar this section by writing about the at the maximum number of bars.
them saw that their long-term path traditional energy firms. They’re
transition looks like. As I wrote power during parts of the day owners of Gatwick Airport, GIP. In
to decarbonization will include pioneers of decarbonization, too.
in 2020, the transition will only when renewable energy is cheap January, BlackRock announced our
hydrocarbons, albeit it less of them,
succeed if it’s “fair.” Nobody will and abundant. These “thermal Today, BlackRock has more than plans to acquire them.
for some time to come.
support decarbonization if it means batteries” reach up to 2,400 $300 billion invested in traditional
Germany is a good example of
how energy pragmatism is still a
giving up heating their home in
the winter or cooling it in the
degrees Celsius and glow brighter
than the sun.60 Then, that heat
energy firms on behalf of our
clients. Of that $300 billion, more
Why GIP? BlackRock’s own
infrastructure business had been
More about
path to decarbonization. It’s one summer. Or if the cost of doing so is used to power giant industrial than half – $170 billion – is in the growing rapidly over the past
several years. But to meet demand,
BlackRock’s
of the countries most committed is prohibitive. facilities around-the-clock, even U.S.63 We invest in these energy
to fighting climate change and
Since 2020, economists have
when the sun isn’t shining, or the companies for one simple reason: we realized we needed to grow work in 2023
has made enormous investments wind isn’t blowing. It’s our clients’ money. If they want even faster.
popularized better language to
in wind and solar power. But to invest in hydrocarbons, we give It’s not just debt-strapped In this letter, I’ve shared my view
describe what a fair transition BlackRock invested in Antora
sometimes the wind doesn’t blow in them every opportunity to do it – governments that need to find that the capital markets are going to
actually means. One important through Decarbonization Partners,
Berlin, and the sun doesn’t shine in the same way we invest roughly alternate pools of financing for play an even bigger role in the global
concept is the “green premium.” a partnership we have with the
Munich. And during those windless, $138 billion in energy transition their infrastructure. Private sector economy. They’ll have to if the world
It’s the surcharge people pay investment firm, Temasek. Our
sunless periods, the country still strategies for our clients. That’s firms do too. All over the world, wants to address the challenges
for “going green”: For example, funding will help Antora scale up to
needs to rely on natural gas for part of being an asset manager. there’s a vast infrastructure around infrastructure, debt, and
switching from a car that runs deliver billions of dollars worth of
“dispatchable power.” Germany We follow our clients’ mandates. footprint that’s owned and operated retirement. These are the major
on gas to an electric vehicle. The zero-emission energy to industrial
used to get that gas from Russia, entirely by private companies. economic issues of the mid-21st
lower the green premium, the fairer customers.61 (One day, their thermal But when it comes to energy,
but now it needs to look elsewhere. Cell towers are a good example. Century. We’re going to need the
decarbonization will be because batteries might help solve the kind I also understand why people
So, they’re building additional So are pipelines that deliver the power of capitalism to solve them.
it’ll be more affordable. of dispatchable power problem that have different preferences in
gas facilities to import from other feedstocks for chemical companies.
Texas and Germany are facing – the first place. Decarbonization The way BlackRock figures into
producers around the world.53 This is where the power of the Increasingly, the owners of these
but without carbon emissions). and energy security are the two that story is through our work with
capital markets can be unleashed assets prefer to have a financing
Or look at Texas. They face a similar macroeconomic trends driving clients. We want to position them
to great effect. Private investment The final technology I’ll spotlight partner, rather than carrying the full
energy challenge – not because the demand for more energy well to navigate these trends, which
can help energy companies reduce is carbon capture. Last year, one cost for the infrastructure on their
of Russia but because of the infrastructure. Sometimes they’re is why we’ve tried to stay more
the cost of their innovations and of BlackRock’s infrastructure balance sheet.
economy. The state is one of the competing trends. Other times, connected to our clients than ever.
scale them around the world. funds invested $550 million in a
fastest growing in the U.S.,54 and they’re complementary, like when I had been thinking about this
Last year, BlackRock invested in project called STRATOS, which Over the past five years, thousands
the additional demand for power the same advanced battery that trend and called an old colleague,
over a dozen of these transition will be the world’s largest direct air of clients on behalf of millions
is stretching ERCOT, Texas’ energy decarbonizes your grid can also Bayo Ogunlesi.
projects on behalf of our clients. capture facility when construction of individuals have entrusted
grid, to the limit.55 reduce your dependence on
We partnered with developers in is completed in 2025.62 Among the Both Bayo and I started our careers BlackRock with managing over
foreign power.
Today, Texas runs on 28% Southeast Asia aiming to build more interesting aspects of the in finance at the investment $1.9 trillion in net new assets.
renewable energy56 – 6% more over a gigawatt of solar capacity project is who’s building the facility: The point is: The energy transition bank First Boston. But our paths Thousands also use our technology
than the U.S. as a whole.57 But (enough to power a city) in both Occidental Petroleum, the big is not proceeding in a straight line. diverged. I lost $100 million on a to better understand the risks in
without an additional 10 gigawatts Thailand and the Philippines.58 We Texas oil company. As I’ve written many times before, series of bad trades at First Boston their portfolios and support the
of dispatchable power, which might also invested in Lake Turkana Wind it’s moving in different ways and at and…well, nobody needs to hear growth and commercial agility
different paces in different parts that story again. But it led me (and of their own businesses. Years
of the world. At BlackRock, our job my BlackRock partners) to pioneer of organic growth, alongside the
is to help our clients navigate the better risk management for fixed long-term growth of the capital
big shifts in the energy market no income markets. Meanwhile, Bayo markets, underpin our $10 trillion
matter where they are. and his team were pioneering
53. The New York Times, Germany Announces New L.N.G. Facility, Calling It a Green Move from Russian Energy, (2022)
54. Texas Fall 2023 Economic Forecast
55. Federal Reserve Bank of Dallas, Texas electrical grid remains vulnerable to extreme weather events, (2023)
56. U.S. Energy Information Administration: Electricity Data Browser
57. U.S. Energy Information Administration, Solar and wind to lead growth of U.S. power generation for the next two years, (2024)
58. BlackRock Alternatives, CFP, 2023
59. Kenya Power, Annual Report & Financial Statements, (2022)
60. Reuters, BlackRock, Temasek-led group invest $150 mln in thermal battery maker Antora, (2024)
61. Business Wire, Antora Energy Raises $150 Million to Slash Industrial Emissions and Spur U.S. Manufacturing, (2024)
62. Oxy, Occidental and BlackRock Form Joint Venture to Develop STRATOS, the World’s Largest Direct Air Capture Plant, (2023) 63. As of June 30, 2022. “Energy companies” refers to corporations classified as belonging to the GICS-1 Energy Sector.
of client assets, which grew by over provide long-term, consistent capital. digital wealth platforms in
local markets to provide more
Total return since BlackRock’s IPO through December 31, 2023
$1.4 trillion in 2023. We often invest early, and we stay
9,097%
invested through cycles whether it’s investment access and accelerate
In good times and bad, whether
debt or equity, pre-IPO or post-IPO. organic growth for iShares ETFs.
clients are focused on increasing
Companies recognize BlackRock’s
or decreasing risk, our consistent In EMEA, BlackRock powers ETF
global relationships, brand, and
industry-leading organic growth savings plans for end investors,
expertise across markets and
demonstrates that clients are partnering with many banks and
industries. This makes us a valuable
consolidating more of their brokerage platforms, including
partner, and in turn supports the
portfolios with BlackRock. In 2023, Trade Republic, Scalable Capital, 487%
sourcing and performance we can
our clients awarded us with $289 ING, Lloyds, and Nordnet. These
provide for clients. 258%
billion in net new assets during partnerships will help millions of
a period of rapid change and Over the past 18 months, we’ve people access investments, invest Oct 1, 1999 Dec 31, 2023
significant portfolio de-risking. sourced and executed on a number for the long-term, and achieve BLK S&P 500 S&P Financials
of deals for clients. In addition to financial well-being.
BlackRock’s differentiated business
the STRATOS direct air capture
model has enabled us to continue In 2023, we also announced our Source: S&P Global. The performance graph is not necessarily indicative of future investment performance.
project, our funds partnered with
to grow with our clients and maintain minority investment in Upvest,
AT&T on the Gigapower JV to build
positive organic base fee growth. which will help drive innovation in
out broadband in communities
We’ve grown regardless of the how Europeans access markets
across the U.S. We also made
market backdrop and even as most and make it cheaper and simpler to
investments globally, including
of the industry experienced outflows. start investing.
in Brasol (Brazil), AirFirst (South
our public and private markets can continue to get the insights, have ETFs. That’s why we believe
I think back to 2016 and 2018 Korea), Akaysha Energy (Australia), Then there is our work with Britain’s
franchises. And integrated solutions, and outcomes they embedding our ETF and Index
when uncertainty and cautious and the Lake Turkana Wind Farm leading digital bank, Monzo, to
technology will be needed to expect from us. expertise across the entire firm will
sentiment impacted investment (Kenya). offer its customers our products
help clients be nimble while accelerate the growth of iShares
behavior among institutions and through its app, with minimum For years, BlackRock has worked
Our ability to source deals for operating at scale. and every investment strategy
individuals. Many clients de-risked investments as low as £1. Through with clients across the whole
clients is a primary driver of at BlackRock.
and moved to cash. BlackRock these relationships, we’re evolving These are the times where investors portfolio, albeit with distinctions
demand for BlackRock private
stayed connected with our clients. our iShares ETF franchise to are making broad changes to between product structures for We’ll be nimbler and more closely
markets strategies. These
We stayed rigorous in driving meaningfully increase access to the way they build portfolios. ETFs, active mutual funds, and aligned with clients through our
strategies saw $14 billion of
investment performance, innovating global markets. BlackRock is helping investors separate accounts. new architecture with the aim of
net inflows in 2023, driven by
new products and technologies, build the “portfolio of the future” delivering a better experience, better
infrastructure and private credit. Let me also say a few words about Now the traditional lines between
and providing advice on portfolio – one that integrates public and performance, and better outcomes.
We continue to expect these Aladdin. It remains the language of products are blurring. Clients are
design. Once clients were ready to private markets and is digitally
categories to be our primary growth portfolios, uniting all of BlackRock, building portfolios that seamlessly
step back into the markets more enabled. We view these changes as
drivers within alternatives in the and providing the technological combine both active and index
actively, they did it with BlackRock big catalysts. With the diversified
– leading to new records for client
coming years. foundation for how we serve clients
investment and technology
strategies, including liquid and Voting choice
across our platform. And Aladdin illiquid assets and spanning public
flows, and organic base fee growth Our active investment insights, platform we’ve built, we’ve set Healthy capital markets depend
isn’t just the key technology that and private markets, across
at or above our target. expertise and strong investment ourselves up to be a structural on a continuous feedback loop
powers BlackRock; it also powers ETF, mutual fund, and separate
performance similarly differentiate grower in the years ahead. between companies and their
Flows and organic base fee growth many of our clients. The need for account structures.
BlackRock in the market. We saw investors. For more than a decade,
accelerated into the end of 2023. We integrated data and risk analytics as
nearly $60 billion of active net BlackRock has been critical in BlackRock endeavored to improve
saw $96 billion of total net inflows in well as whole portfolio views across
inflows in 2023, compared with expanding the market for ETFs by that feedback loop for our clients.
the fourth quarter and entered 2024
industry outflows.
public and private markets is driving Positioning our making them accessible to more
with great momentum. annual contract value (ACV) growth.
In ETFs, BlackRock generated an
organization for the investors and delivering new asset We’ve done it by building an
In 2023, we generated $1.5 billion classes (like bonds) and investment industry-leading stewardship
In 2024, I plan to do what I did in
industry-leading $186 billion of net future program, one that’s focused on
2023 – spend a lot of time on the in technology services revenue. strategies (like active). As a result of
inflows in 2023. Our leadership Just as we continually innovate and engaging investee companies
road visiting clients. I’ve already Clients are looking to grow and that success, the ETF is no longer
in the ETF industry is another evolve our business to stay ahead on issues impacting our clients’
taken several trips in the U.S. and expand with Aladdin, reflected in just an indexing concept – it is
testament to our global platform of our clients, we also evolve our long-term economic interests.
around the world, and it’s clearer strong harvesting activity, with becoming an efficient structure for
and connectivity with clients. organization and our leadership team. This requires understanding
than ever that companies and over 50% of Aladdin sales being a range of investment solutions.
clients want to work with BlackRock. What we have seen in market multi-product. how companies are positioned
Earlier this year we announced We always viewed ETFs as a to navigate the risks and
after market is that if we can changes to reimagine our business
For companies where we are As we look ahead, the re-risking technology, a technology that opportunities they face – for
make investing easier and more and transform our organization to
investing on behalf of our clients, of client portfolios will create facilitated investing. And just as our example, how geopolitical
affordable, we can quickly attract better anticipate what clients need
they appreciate that we typically tremendous prospects for both Aladdin technology has become fragmentation might rewire their
new clients. We are leveraging – and shape BlackRock so clients core to asset management, so too supply chains or how higher
borrowing cost might impact but continue to believe that the private markets, keeping alpha at Active asset allocation, security We are honored that our clients Directors. We will continue to evolve
their capacity to deliver sustained industry would benefit from the heart of BlackRock, leading in selection and risk management entrusted us with $289 billion of our Board over time to reflect the
earnings growth. additional proxy advisors. sustainable investing, and advising have consistently been key net new assets in 2023. And over breadth of our global business and
clients on their whole portfolio. elements in long-term returns. the past few months, we’ve seen a to guide us as we evolve ahead of
To do that, we built one of the
Our active teams across multi- decidedly more positive sentiment our clients’ needs.
largest stewardship teams to We have continually made internal
asset, fixed income and equities and tone in markets and among
engage with companies, often Strategy for long-term investments for organic growth and
are well-positioned to seize on clients that I’m very optimistic will
alongside our investment teams, efficiency, investing ahead of client
because we never believed in
growth opportunities in private markets,
broad opportunities arising out carry into the rest of 2024.
of this new interest rate and
the industry’s reliance on the For 36 years, BlackRock has led by ETFs, technology and whole Our ability to adapt, evolve, and
recommendations of a few proxy listening to our clients and evolving portfolio solutions.
potentially more volatile regime.
We are particularly excited about
grow has generated a total return A final note
advisors. We knew our clients would to help them achieve long-term of 9,000% for our shareholders
In private markets, we are prepared the opportunity in fixed income
expect us to make independent outcomes. That commitment has since our IPO in 1999. That is well Over the past 36 years, BlackRock
to capitalize on structural growth and how artificial intelligence is
proxy voting decisions, informed been behind everything we’ve done in excess of the S&P 500 return has grown from a company of eight
trends. Whether it’s executing propelling performance in our
by our ongoing dialogue with as a firm, whether it’s unlocking of 490% and representative of people in a tiny Manhattan office
on demand for much-needed systematic investing businesses.
companies – a philosophy new markets through iShares, a business model serving all our into the largest asset manager in the
infrastructure, or the growing
that continues to underpin our pioneering whole portfolio advisory, Fixed income is going to be stakeholders. world. But our growth is just a small
role of private credit as banks and
stewardship efforts today. For our launching Aladdin on the desktops increasingly relevant in the part of a much larger success story.
public lenders move away from the
clients who have entrusted us with of investors and so much more. construction of whole portfolios
middle market, private capital will It’s part of the same story that
this important responsibility, we Clients have been at the foundation with higher yields and better return
remain steadfast in promoting of our mindset and our growth
be essential. BlackRock is poised
potential compared to the low- Our Board of Directors includes my parents retiring
to capture share through our scale, comfortably after 50 years of
sound corporate governance strategy, informing the investments rate environment of the last 15 BlackRock’s Board plays an integral
proprietary origination, and track hard work. The same story where
practices and financial resilience at we’ve made across our businesses. years. Now that the rate on 10-year role in our strategy, our growth and
record. And we believe our planned America was able to endure
investee companies on their behalf. U.S. Treasuries is near long-term our success.
The combination of technology and acquisition of GIP will meaningfully the 1980s S&L crisis and 2008
averages, clients are reconsidering
And for our clients who wish to advisory, alongside ETFs, active accelerate our ability to offer our The diverse experiences and financial crisis – and rebound
bond allocations.
take a more direct role in the proxy and private markets capabilities, private markets capabilities to backgrounds of our Directors quickly and with growing strength.
voting process, we continue to enables us to deliver a better our clients. BlackRock is well-positioned with a enable us to have rich discussions
innovate to provide them with more client experience – leading to diversified fixed income platform. And it’s the story that, hopefully,
In ETFs, we will continue to lead and debates. At each meeting,
choice. In 2022, BlackRock was clients consolidating more of It’s not going to be just about will include more people around the
by expanding investment access our Directors review components
the first in our industry to launch their portfolios with BlackRock index, where we manage nearly $1.7 world. Nations that can outgrow
globally and through innovation. of our long-term strategy and
Voting Choice, a capability that or engaging us for outsourcing trillion. Or just about active, where their debt. Cities that can afford to
The ETF is an adaptable piece of foster constructive dialogue with
enabled institutional investors solutions. We believe this in turn we manage over $1 trillion. Some power more homes and build more
financial technology, and over time our leadership team on strategic
to participate in the proxy voting will drive continued differentiated of the most interesting portfolio roads. Workers who can live out
we’ve been able to do more with it opportunities, priorities and risks
process. Today, about half of organic growth into the future. conversations are with allocators their golden years with dignity.
than just making investing more facing BlackRock’s business. This
our clients’ index equity assets who are blending ETFs with active dialogue ultimately pushes us to
As we do each year, our affordable. We’ve been able to bring All of these stories are only possible
under management can access or using innovations like our active make the sometimes tactical and
management team and Board better liquidity and price discovery because of the power of the capital
Voting Choice. And in February, ETFs for professionally managed sometimes transformational moves
spent time assessing our strategy to more opaque markets. One markets and the people who are
we launched a pilot in our largest income solutions. to build a better BlackRock. This
for growth. We challenge ourselves recent example is offering people hopeful enough to invest in them.
core S&P 500 ETF, enabling Voting includes the two transformational
to think: What opportunities will exposure to Bitcoin through ETFs. Across asset classes, the need for
Choice for individual investors for moves we made in January: the
this economic environment create integrated data, technology and
the first time. ETFs have been an incredible strategic re-architecture of our Sincerely,
for BlackRock and our clients, risk management will continue to
growth story in the U.S., with organization and our agreement to
We welcome these additional what more can we do to meet and drive demand for Aladdin. Through
iShares leading the way. We believe acquire GIP.
voices to corporate governance anticipate their needs? How can we its dynamic ecosystem of over
global ETF adoption is set to
and believe they can further evolve our organization, operating 130,000 users, the Aladdin platform These two transformational
accelerate as catalyst trends that
strengthen shareholder democracy. structure, investment capabilities, is constantly innovating and being changes are the largest since our
we saw in the U.S. years ago like the Laurence D. Fink
I believe that more asset owners and service models and, in doing improved. Investments in Aladdin AI acquisition of Barclays Global
growth of fee-based advisory and Chairman and
can participate in this important so, keep leading the industry? copilots, enhancements in openness Investors nearly 15 years ago.
model portfolios are just beginning Chief Executive Officer
process effectively if they are supporting ecosystem partnerships,
We have strong conviction in our to take root. Nearly half of 2023 Following the closing of the GIP
well-informed. We are encouraged and advancing whole portfolio
strategy and our ability to execute iShares net inflows were from our transaction, we plan to have
by their engagement and the solutions are going to further
with scale and expense discipline. ETFs listed internationally in local Bayo Ogunlesi join our Board of
continued transformation of augment the value of Aladdin.
Our strategy remains centered markets, led by European iShares
the proxy voting ecosystem
on growing Aladdin, ETFs, and net inflows of $70 billion.
Financial Important
Please review the Important Notes on
page 31 for information on certain non-
GAAP figures shown through page 30,
Highlights as well as for source information on other

data points through page 30. Notes
(in millions) 2023 2022 2021 Opinions retail funds and separate accounts for “potential,” “opportunity,” “pipeline,”
Opinions expressed through page 29 which performance data is available, “believe,” “comfortable,” “expect,”
are those of BlackRock, Inc. as of including performance data for high “anticipate,” “current,” “intention,”
Total AUM (end of period) $ 10,008,995 $ 8,594,485 $ 10,010,143 “estimate,” “position,” “assume,”
April 2024 and are subject to change. net worth accounts available as of
Investment involves risk including November 30, 2023. The performance “outlook,” “continue,” “remain,”
Revenue 17,859 17,873 19,374 the loss of principal. The companies data does not include accounts “maintain,” “sustain,” “seek,”
mentioned in this document are not terminated prior to December 31, “achieve,” and similar expressions,
meant to be a recommendation to buy 2023 and accounts for which data has or future or conditional verbs such
Operating income, GAAP 6,275 6,385 7,450 or sell any security. not yet been verified. If such accounts as “will,” “would,” “should,” “could,”
had been included, the performance “may” and similar expressions. These
BlackRock data points data provided may have substantially statements include, among other
Operating income, as adjusted 1 6,593 6,711 7,747 All data through page 30 reflects differed from that shown. things, statements about future
as-adjusted full-year 2023 results or results of operations and financial
Performance comparisons shown are
is as of December 31, 2023, unless condition; business initiatives and
Operating margin, GAAP 35.1% 35.7% 38.5% gross-of-fees for institutional and
otherwise noted. 2023 organic growth strategies; political, economic or
high net worth separate accounts,
is defined as full-year 2023 net flows industry conditions, the interest
and net-of-fees for retail funds. The
Operating margin, as adjusted 1 41.7% 42.8% 46.8% divided by assets under management rate environment and financial
performance tracking shown for
(AUM) for the entire firm, a particular and capital markets; product and
index accounts is based on gross-
segment or particular product as service offerings; risk management,
of-fees performance and includes all
Net income attributable to BLK, GAAP 5,502 5,178 5,901 of December 31, 2022. Long-term including climate-related risks;
institutional accounts and all iShares
product offerings include active and acquisitions and dispositions;
funds globally using an index strategy.
passive strategies across equity, fixed share repurchases and dividends;
Net income attributable to BLK, as adjusted 1 AUM information is based on AUM
5,692 5,391 6,254 income, multi-asset and alternatives, and the legislative and regulatory
available as of December 31, 2023
and exclude AUM and flows from environment. BlackRock cautions
for each account or fund in the asset
the cash management and advisory that forward-looking statements are
Diluted weighted-average common shares 150.7 152.4 154.4 class shown without adjustment for
businesses. subject to numerous assumptions,
overlapping management of the same
risks and uncertainties, which
Industry data points account or fund. Fund performance
change over time. Forward-looking
reflects the reinvestment of dividends
All data is as of December 31, 2023 statements speak only as of the
and distributions.
unless otherwise noted. date they are made, and BlackRock
Per Share Performance shown is derived assumes no duty to and does not
GAAP and as-adjusted results
from applicable benchmarks or peer undertake to update forward-
Diluted earnings, GAAP $ 36.51 $ 33.97 $ 38.22 See pages 44–46 of our 2023 10-K for median information, as selected by looking statements. Actual results
an explanation of the use of non-GAAP BlackRock, Inc. Peer medians are could differ materially from those
financial measures and a reconciliation based in part on data either from anticipated in forward-looking
Diluted earnings, as adjusted 1 37.77 35.36 40.51 to GAAP. Lipper, Inc. or Morningstar, Inc. for statements and future results could
Performance notes each included product. differ materially from historical
Forward-looking statements performance. Factors that can cause
Dividends declared 20.00 19.52 16.52 Past performance is not indicative of
actual results to differ materially
future results. Except as specified, This report, and other statements that from forward-looking statements
the performance information shown BlackRock may make, may contain or historical performance include
1. Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net is as of December 31, 2023 and is forward-looking statements within those described under “Forward-
income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related based on preliminary data available the meaning of the Private Securities Looking Statements” and risk factors
costs, including compensation costs for non-recurring retention-related deferred compensation awards, and contingent consideration fair value at that time. The performance data Litigation Reform Act, with respect disclosed in BlackRock’s most recent
adjustments incurred in connection with certain acquisitions and recast such measures for prior periods. Beginning in the first quarter of 2023, the shown reflects information for all to BlackRock’s future financial or Form 10-K, as such factors may
Company also updated these definitions to exclude the compensation expense related to the market valuation changes on certain deferred cash actively and passively managed business performance, strategies be updated from time to time in its
compensation plans, and the related gain (loss) on the economic hedge of these deferred cash compensation plans, which the Company began equity and fixed income accounts, or expectations. Forward-looking
hedging economically in 2023. The presentation of such updated measures, and their reconciliation to operating income, GAAP basis, operating periodic filings with the SEC and
including US registered investment statements are typically identified
margin, GAAP basis, and net income attributable to BlackRock, Inc., GAAP basis for 2023 and 2022 have been included in BlackRock’s Annual Report available on our website.
companies, European-domiciled by words or phrases such as “trend,”
on Form 10-K for the year ended December 31, 2023, which is included on page 32. For reconciliations to GAAP for 2021, see BlackRock’s Annual
Report on Form 10-K for the year ended December 31, 2022.
32 BlackRock | 2023 Annual Report BlackRock | 2023 Form 10-K 1
BlackRock | 2023 Form 10-K 1
PART I
PART I
and whole portfolio solutions across broad markets,
Item 1. Business themes,
and whole regions,
portfolio and investment
solutions acrossstyles;
broad markets,
Item 1. Business themes, regions, and investment styles;
• the Company’s focus on strong investment
OVERVIEW performance,
• the Company’s seeking
focus on thestrong
best risk-adjusted
investment returns for
OVERVIEW client portfolios,
performance, withinthe
seeking thebest
mandates given by
risk-adjusted clients,
returns for
BlackRock, Inc.
BlackRock, Inc. (together, with its subsidiaries, unless the
to helpportfolios,
client them meet theirthe
within investment
mandates objectives;
given by clients,
context
BlackRock,otherwise indicates,
Inc. (together, with“BlackRock” or theunless the
its subsidiaries,
to help them meet their investment objectives;
“Company”)
context otherwiseis a leading
indicates, publicly traded investment
“BlackRock” or the • the Company’s research, data and analytics, which are
Form 10-K
management
“Company”) isfirm with $10.0
a leading publiclytrillion of assets
traded under
investment at the
• the center of research,
Company’s BlackRock’s data investment
and analytics, approach
whichand are
management (“AUM”) firm withat December
$10.0 trillion31, 2023. With
of assets under processes.
at the center They inform BlackRock’s
of BlackRock’s investment pursuit of the and
approach best
approximately
management (“AUM”) 19,800 employees
at December in 31,
more thanWith
2023. 30 risk-adjusted
processes. They returns,
informand underpin pursuit
BlackRock’s productof creation
the best
countries
approximatelywho serve
19,800 clients in overin100
employees morecountries
than 30across and innovation;
risk-adjusted returns, and underpin product creation
Table of Contents the globe, who

countries
management
retail
BlackRock
clients worldwide.
management
provides
serve clients
and technology
the globe, BlackRock
a broad
in over
provides services
100range
countries
and technology services to institutional and

of investment
to institutional
a broad range
across
of investmentand
and innovation;
• the Company’s global reach and commitment to best
practices
• the Company’s
employees
around
practices aroundoutside
the world,
global
the
the
reachwith
United
world,
and approximately
with
commitment to55%
States (“US”) serving
approximately
bestof
55% of
retail clients worldwide.
BlackRock’s diverse platform of alpha-seeking active, clients
employees locally and supporting
outside the United local States investment
(“US”) serving
index and cash
BlackRock’s management
diverse platform of investment
alpha-seekingstrategies
active, across capabilities.
clients locally Approximately
and supporting 40% localof investment
total AUM is
asset
index classes
and cash enables
management the Company investmentto offer choice and
strategies across managed
capabilities. forApproximately
clients domiciled 40% outside
of totalthe
AUM US;is
tailor
asset investment
classes enables and asset allocation
the Company to solutions
offer choice for and
clients. managed for clients domiciled outside the US;
• the Company’s differentiated client relationships and
Product offeringsand
tailor investment includeasset single-
allocationand multi-asset
solutions for clients. fiduciary
• the focus, differentiated
Company’s which enable effective positioningand
client relationships
portfolios investing
Product offerings in equities,
include single- fixed
andincome,
multi-assetalternatives toward
fiduciary changing
focus, which clientenable
needseffective
and industry trends
positioning
and moneyinvesting
portfolios market instruments.
in equities, fixed Products
income, arealternatives
offered including the secular
toward changing clientshift
needsto ETFs; growingtrends
and industry allocations
directly
and money andmarket
through intermediaries
instruments. in a variety
Products of vehicles,
are offered to private markets,
including the secular suchshiftastoinfrastructure
ETFs; growing and private
allocations
PART I PART III including
directly and open-end
throughand closed-end in
intermediaries mutual
a varietyfunds,
of vehicles, credit; increasing
to private markets,demand such asfor outsourcingand
infrastructure andprivate
whole
iShares
including® and BlackRock
open-end andexchange-traded
closed-end mutual funds
funds,(“ETFs”),
1 Item 1 Business 70 Item 10 Directors, Executive Officers and portfolio solutionsdemand
credit; increasing using index, active and illiquid
for outsourcing and whole
separate
iShares accounts,
® and BlackRock collective trust funds and
exchange-traded other
funds pooled
(“ETFs”), alternatives products;
portfolio solutions using anticipated
index, active re-allocations
and illiquidto
Corporate Governance investment vehicles.collective
separate accounts, BlackRock also
trust offers
funds andtechnology
other pooled
20 Item 1A Risk Factors fixed income;products;
alternatives demand anticipated
for high-performing activeto
re-allocations
services,
investment including
vehicles. the investment
BlackRock alsoand risk technology
offers management strategies;
fixed income; interest
demand in sustainable investment
for high-performing active
70 Item 11 Executive Compensation
36 Item 1B Unresolved Staff Comments technology platform,
services, including theAladdin
investment®, Aladdin
and Wealth, eFront, and
risk management strategies; andinteresta continued
in sustainablefocus investment
on income and
70 Item 12 Security Ownership of Certain Beneficial Cachematrix, as well as
technology platform, advisory
Aladdin services
®, Aladdin and solutions
Wealth, eFront, and to retirement;
strategies; and anda continued focus on income and
37 Item 1C Cybersecurity a broad base of
Owners and Management and Related Cachematrix, asinstitutional
well as advisory and services
wealth management
and solutions to retirement; and
38 Item 2 Properties Stockholder Matters clients.
a broadThebaseCompany is highly
of institutional and regulated and manages its
wealth management • the Company’s longstanding commitment to
clients’
clients. assets as a fiduciary.
The Company is highly The Company
regulated and does not
manages its innovation,
• the Company’s technology
longstanding services and the continued
commitment to
38 Item 3 Legal Proceedings 70 Item 13 Certain Relationships and Related engage in proprietary
clients’ assets tradingThe
as a fiduciary. activities
Company thatdoescouldnot conflict development of, and increased
innovation, technology servicesinterest
and thein, BlackRock
continued
Transactions, and Director with
engagetheininterests
proprietary of itstrading
clients.activities that could conflict technology
development products and solutions,
of, and increased including
interest Aladdin,
in, BlackRock
38 Item 4 Mine Safety Disclosures Aladdin
technology Wealth,
productseFront, and and Cachematrix.
solutions, includingThisAladdin,
Independence with the interests of its clients.
BlackRock serves a diverse mix of institutional and retail commitment
Aladdin Wealth, is further
eFront,extended by minority
and Cachematrix. This
PART II 70 Item 14 Principal Accountant Fees clients
BlackRockacross the aglobe.
serves diverse Clients
mix of include tax-exempt
institutional and retail investments
commitmentin is financial technology
further extended and digital
by minority
and Services institutions,
clients across such
the as defined
globe. Clientsbenefit andtax-exempt
include defined distribution
investmentsproviders,
in financial data and whole
technology andportfolio
digital
39 Item 5 Market for Registrant’s Common Equity, contribution
institutions, suchpension plans, charities,
as defined benefit and foundations
defined and capabilities
distribution including
providers,Upvest,data and Avaloq,
wholeHuman
portfolio Interest,
Related Stockholder Matters and Issuer endowments; official institutions,
contribution pension plans, charities, suchfoundations
as central banks,and Circle, SpiderRock
capabilities including Advisors,
Upvest, Clarity
Avaloq, AI, Human
Envestnet, Interest,
PART IV sovereign wealth funds, supranationals and otherbanks,
Purchases of Equity Securities endowments; official institutions, such as central Acorns, Scalable Capital
Circle, SpiderRock Advisors, andClarity
iCapital. AI, Envestnet,
70 Item 15 Exhibits and Financial Statement government
sovereign wealth entities;
funds,taxable institutions,
supranationals andincluding
other Acorns, Scalable Capital and iCapital.
39 Item 6 Reserved insurance
government companies,
entities; taxablefinancial institutions,
institutions, corporations
including BlackRock operates in a global marketplace impacted by
Schedules
and third-party
insurance fund sponsors,
companies, financialand retail intermediaries.
institutions, corporations changing
BlackRockmarketoperates dynamics
in a global andmarketplace
economic uncertainty,
impacted by
40 Item 7 Management’s Discussion and Analysis
73 Item 16 Form 10-K Summary and third-party fund sponsors, and retail intermediaries. factors
changing that can significantly
market dynamics and affect earnings
economic and
uncertainty,
of Financial Condition and Results of BlackRock maintains a significant global sales and stockholder
factors that can returns in any given
significantly period.
affect earnings and
Operations 74 Signatures marketing
BlackRock presence
maintainsthat is focusedglobal
a significant on establishing
sales and and stockholder returns in any given period.
maintaining retail and
marketing presence that institutional
is focused investment
on establishing and The Company’s ability to increase revenue, earnings and
65 Item 7A Quantitative and Qualitative Disclosures stockholder
The Company’s value over to
ability time is predicated
increase revenue, onearnings
its ability to
and
management
maintaining retail and technology
and institutional service relationships by
investment
about Market Risk marketing its services to investors directly and through generate
stockholder new business,
value over time including business
is predicated oninitsAladdin
ability toand
management and technology service relationships by
67 Item 8 Financial Statements and Supplemental third-party
marketing its distribution
services torelationships,
investors directly including financial
and through other
generatetechnology
new business, products and services.
including business New inbusiness
Aladdin and
professionals and pension
third-party distribution consultants.
relationships, including financial efforts depend onproducts
other technology BlackRock’s andability
services. to achieve
New businessclients’
Data
professionals and pension consultants. investment
efforts depend objectives, in a manner
on BlackRock’s ability consistent
to achieve with their
clients’
67 Item 9 Changes in and Disagreements with BlackRock is an independent, publicly traded company, risk preferences,
investment to deliver
objectives, in a excellent client service
manner consistent withand to
their
Accountants on Accounting and with no single
BlackRock is an majority
independent, shareholderpublicly and over 85%
traded company,of its innovate in technology
risk preferences, to deliverto serve
excellentclients’ evolving
client service needs.
and toAll
Board
with noofsingle
Directors consisting
majority of independent
shareholder and over 85% directors.
of its of these efforts
innovate require the
in technology commitment
to serve and contributions
clients’ evolving needs. All
Financial Disclosure
Board of Directors consisting of independent directors. of BlackRock
these efforts employees.
require the Accordingly,
commitment theand
ability to attract,
contributions
67 Item 9A Controls and Procedures Management seeks to deliver value for stockholders over
develop and retain
of BlackRock qualified
employees. professionals
Accordingly, is critical
the ability to the
to attract,
time by, among
Management other
seeks tothings,
delivercapitalizing on BlackRock’s
value for stockholders over
Company’s
develop andlong-term success.
retain qualified professionals is critical to the
70 Item 9B Other Information differentiated
time by, among competitive
other things, position, including:
capitalizing on BlackRock’s
Company’s long-term success.
differentiated competitive position, including:
70 Item 9C Disclosure Regarding Foreign • the Company’s longstanding model of client choice,
Jurisdictions That Prevent Inspections through
• the which itlongstanding
Company’s offers a widemodel range of of client
index,choice,
active,
through which it offers a wide range of index, active,
2 BlackRock | 2023 Form 10-K BlackRock | 2023 Form 10-K 3
FINANCIAL HIGHLIGHTS AUM represents the broad range of financial assets investment system as well as risk management,
FINANCIAL HIGHLIGHTS managed for clients
AUM represents on a discretionary
the broad basis pursuant
range of financial assets to outsourcing, advisory
investment system as and
well other
as risktechnology
management, services, to
(in millions, except per share data) 2023 2022 2021 2020 2019 investment
managed for management and trust agreements
clients on a discretionary that are
basis pursuant to institutional
outsourcing,investors and other
advisory and wealth management
technology services, to
(in millions, except per share data) 2023 2022 2021 2020 2019 expected
investment to management
continue for atand least 12 agreements
trust months. In general,
that are intermediaries. Revenue
institutional investors andforwealth
these management
services may be based
GAAP:
GAAP:revenue
Total $ 17,859 $ 17,873 $ 19,374 $ 16,205 $ 14,539 reported
expectedAUM reflectsfor
to continue theatvaluation methodology
least 12 months. that
In general, on several criteria
intermediaries. including
Revenue value services
for these of positions,
maynumber
be based of
Total revenue
Operating income $ 17,859
6,275 $ 17,873
6,385 $ 19,374
7,450 $ 16,205
5,695 $ 14,539
5,551 corresponds
reported AUMtoreflects
the basis
theused for determining
valuation methodologyrevenue
that users, implementation
on several go-lives
criteria including and
value ofsoftware
positions, solution
number of
income $ 6,275 $ 6,385 $ 7,450 $ 5,695 $ 5,551 (for example,to
corresponds net asset
the basisvalue).
used Reported AUM does
for determining not
revenue delivery and support. go-lives and software solution
users, implementation
Operating margin 35.1% 35.7% 38.5% 35.1% 38.2%
include assetsnet
(for example, forasset
whichvalue).
BlackRock provides
Reported AUMrisk
does not delivery and support.
Operating margin
Nonoperating income (expense)(1) $ 35.1%
706 $ 35.7%
89 $ 38.5%
419 $ 35.1%
475 $ 38.2%
186 At December 31, 2023, total AUM was $10.0 trillion,
management
include assetsor other
for whichforms of nondiscretionary
BlackRock provides risk advice, or
Nonoperating
Net income (expense)
income attributable (1)
to BlackRock, Inc. 706
$ 5,502 89
$ 5,178 419
$ 5,901 $ 4,932
475 $ 4,476
186 representing
At December a 31,CAGR
2023,oftotal
11%AUM over was
the last five
$10.0 years. AUM
trillion,
assets that theorCompany
management other formsis retained to manage on
of nondiscretionary a short-
advice, or
Net income
Diluted attributable
earnings to BlackRock,
per common share Inc. 5,502
$ 36.51 5,178
$ 33.97 5,901
$ 38.22 $ 4,932
31.85 $ 4,476
28.43 growth during
representing a the
CAGRperiod
of was
11% achieved
over the through
last five the AUM
years.
term,
assetstemporary basis. is retained to manage on a short-
that the Company
Diluted earnings per common share $ 36.51 $ 33.97 $ 38.22 $ 31.85 $ 28.43 term, temporary basis. combination
growth during of net
the market
period valuation
was achievedgains, net
through inflows
the
Investment management fees are typically earned as a and acquisitions,
combination including
of net the net AUM
market valuation impact
gains, from the
net inflows
(in millions, except per share data) 2023 2022 2021 2020 2019
percentage of AUM. BlackRock
Investment management fees arealso earns performance
typically earned as a Aperio Transaction,
and acquisitions, which added
including the net$41.3
AUMbillion
impact offrom
AUMthe
in
(in millions, except per share data) 2023 2022 2021 2020 2019
As adjusted : (2) fees on certain
percentage portfolios
of AUM. relative
BlackRock to an
also agreed-upon
earns performance February 2021, and which
Aperio Transaction, the Kreos
addedTransaction, which
$41.3 billion added
of AUM in
As adjusted
Operating (2):
income $ 6,593 $ 6,711 $ 7,747 $ 6,433 $ 5,784 benchmark or return
fees on certain hurdle.
portfolios On some
relative to anproducts, the
agreed-upon $2.2 billion
February of AUM
2021, andin August
the Kreos2023. Our AUM
Transaction, mix added
which
income
Operating margin $ 6,593
41.7% $ 6,711
42.8% $ 7,747
46.8% $ 6,433
46.0% $ 5,784
45.5% Company
benchmark also may earn
or return securities
hurdle. On somelending revenue.
products, the In encompasses a broadly
$2.2 billion of AUM diversified
in August 2023.product
Our AUM range,
mix as
Operating margin
Nonoperating income (expense)(1) $ 41.7%
648 $ 42.8%
89 $ 46.8%
419 $ 46.0%
353 $ 45.5%
186 addition,
CompanyBlackRock offers
also may earn its proprietary
securities lendingAladdin
revenue. In described
encompasses below.
a broadly diversified product range, as
Nonoperating
Net income (expense)
income attributable (1)
to BlackRock, Inc. 648
$ 5,692 89
$ 5,391 419
$ 6,254 $ 5,352
353 $ 4,664
186 addition, BlackRock offers its proprietary Aladdin described below.
The Company considers the categorization of its AUM by client type, product type, investment style, and client region
Net income
earnings to BlackRock,
per common share Inc. 5,692
$ 37.77 5,391
$ 35.36 6,254
$ 40.51 $ 5,352
34.57 $ 4,664
29.62
useful to understanding
The Company its business.
considers the The following
categorization of its AUMdiscussion
by client of theproduct
type, Company’s type,AUM will be organized
investment style, and as follows:
client region
Diluted earnings per common share $ 37.77 $ 35.36 $ 40.51 $ 34.57 $ 29.62
(1) Net of net income (loss) attributable to noncontrolling interests (redeemable and nonredeemable). useful to understanding its business. The following discussion of the Company’s AUM will be organized as follows:
(1) Net of net income (loss) attributable to noncontrolling interests (redeemable and nonredeemable). Client Type Product Type Investment Style Client Region
(2) BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s
•Client
RetailType •Product
EquityType •Investment
Active Style •Client Region
Americas
(2) ongoing
BlackRockoperating results
reports its may results
financial be enhanced if investors
in accordance withhave additional
accounting non-GAAP
principles financial
generally measures.
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. Retail
• ETFs EquityIncome
• Fixed Activeand ETFs
• Index Americasthe Middle East and Africa (“EMEA”)
• Europe,
Beginning in the first quarter of 2022, BlackRock updated the definitions of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as
adjusted,
ETFs
• Institutional Fixed Income
• Multi-asset • Index and ETFs Europe, the Middle East and Africa (“EMEA”)
• Asia-Pacific
Beginningtoininclude
the firstnew adjustments.
quarter of 2022,Such measures
BlackRock havethe
updated been recast forofalloperating
definitions prior periods to reflect
income, the inclusion
as adjusted, of such
operating new as
margin, adjustments. In addition,
adjusted, and net incomebeginning in thetofirst
attributable quarter of
BlackRock, 2023,
Inc., as
BlackRock
adjusted, toupdated
include the
newdefinitions of its
adjustments. non-GAAP
Such measuresfinancial measures
have been recasttoforexclude
all priorthe impact
periods to of market
reflect thevaluation
inclusionchanges on certain
of such new deferredIncash
adjustments. compensation
addition, beginningplans
in thewhich the Company
first quarter of 2023, • Institutional Multi-asset
• Alternatives • Asia-Pacific
began economically
BlackRock updated thehedging in 2023.
definitions of itsFor further information
non-GAAP on non-GAAP
financial measures financial
to exclude measures
the impact and forvaluation
of market as adjusted items for
changes 2023 and
on certain 2022,cash
deferred Item 7. Management’s
seecompensation plans which Discussion and
the Company Alternatives
• Cash Management
Analysis of Financial hedging
began economically Conditioninand Results
2023. of Operations
For further — Non-GAAP
information Financial
on non-GAAP Measures
financial . For further
measures and forinformation
as adjustedon non-GAAP
items for 2023financial measures
and 2022, see Itemand7.forManagement’s
as adjusted items for 2021,
Discussion and2020
and 2019, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures , of the
• Cash Management
Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures . For further information on non-GAAP financial measures andCompany’s Annual
for as adjusted Report
items on Form
for 2021, 10-K
2020
for the
and yearsee
2019, ended
ItemDecember 31, 2022.
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures, of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2022. CLIENT TYPE foundations and endowments; official institutions, such as
CLIENT TYPE central banks,
foundations sovereign
and wealthofficial
endowments; funds, institutions,
supranationals and
such as
ASSETS UNDER MANAGEMENT BlackRock serves a diverse mix of institutional and retail
other
centralgovernment entities;
banks, sovereign taxable
wealth institutions,
funds, including
supranationals and
ASSETS UNDER MANAGEMENT clients across
BlackRock the aglobe,
serves with
diverse mixa regionally focused
of institutional and retail
insurance companies,
other government financial
entities; institutions,
taxable corporations
institutions, including
The Company’s AUM by product type for the years 2019 through 2023 is presented below. business model.
clients across theBlackRock
globe, with leverages the focused
a regionally benefits of scale
and third-party
insurance fund sponsors,
companies, financialand retail intermediaries.
institutions, corporations
The Company’s AUM by product type for the years 2019 through 2023 is presented below. across
businessglobal investment,
model. BlackRock risk and technology
leverages platforms
the benefits of scale
and third-party fund sponsors, and retail intermediaries.
December 31, while
acrossatglobal
the same time using
investment, risklocal
and distribution presence to
technology platforms ETFs are a growing component of both institutional and
5-Year deliver
while atsolutions
the samefor clients.
time usingFurthermore, our structure
local distribution presence to
(in millions) 2023 2022 December
202131, 2020 2019 CAGR(1) retail client
ETFs are portfolios.
a growing However,of
component asboth
ETFsinstitutional
are traded on and
5-Year facilitates strongfor
deliver solutions teamwork
clients. globally across
Furthermore, both
our functions
structure
(in millions) 2023 2022 2021 2020 2019 CAGR(1)
exchanges, complete transparency
retail client portfolios. on the
However, as ETFs areultimate
traded on
Equity $ 5,293,344 $ 4,435,354 $ 5,342,360 $ 4,419,806 $ 3,820,329 12% and regions
facilitates in order
strong to enhance
teamwork our across
globally ability to leverage
both functions end-client
exchanges,iscomplete
unavailable. Therefore,on
transparency ETFs
theare presented as
ultimate
Equityincome
Fixed $ 5,293,344
2,804,026 $ 4,435,354
2,536,823 $ 5,342,360
2,822,041 $ 4,419,806
2,674,488 $ 3,820,329
2,315,392 12%
8% best practices
and regions in to serve
order to our clientsour
enhance and continue
ability to develop
to leverage a separate is
end-client client type below,
unavailable. with investments
Therefore, in ETFs byas
ETFs are presented
Fixed income
Multi-asset 2,804,026
870,804 2,536,823
684,904 2,822,041
816,494 2,674,488
658,733 2,315,392
568,121 8%
14% our
besttalent.
practices to serve our clients and continue to develop institutions and retail
a separate client clientswith
type below, excluded from figures
investments and
in ETFs by
Multi-asset
Alternatives 870,804
275,984 684,904
266,210 816,494
264,881 658,733
235,042 568,121
178,072 14% our talent. discussions in their
institutions and respective
retail sections.from figures and
clients excluded
Clients include tax-exempt institutions, such as defined
Alternatives
Long-term 275,984
9,244,158 266,210
7,923,291 264,881
9,245,776 235,042
7,988,069 178,072
6,881,914 14%
11% discussions in their respective sections.
benefit and defined
Clients include contribution
tax-exempt pension
institutions, plans,
such charities,
as defined
Long-term
Cash management 9,244,158
764,837 7,923,291
671,194 9,245,776
755,057 7,988,069
666,252 6,881,914
545,949 11% benefit and defined contribution pension plans, charities,
Cash management
Advisory 764,837
— 671,194
— 755,057
9,310 666,252
22,359 545,949
1,770 11%
— AUM by investment style and client type at December 31, 2023 is presented below.
Advisory
Total —
$ 10,008,995 —
$ 8,594,485 9,310
$ 10,010,143 22,359
$ 8,676,680 1,770
$ 7,429,633 —
11% AUM by investment style and client type at December 31, 2023 is presented below.
Total $ 10,008,995 $ 8,594,485 $ 10,010,143 $ 8,676,680 $ 7,429,633 11% (in millions) Retail ETFs Institutional Total
(1) Percentage represents compound annual growth rate (“CAGR”) over a five-year period (December 31, 2018 – December 31, 2023).
(in millions) Retail ETFs Institutional Total
(1) Percentage represents compound annual growth rate (“CAGR”) over a five-year period (December 31, 2018 – December 31, 2023). Active $ 708,510 $ — $ 1,912,668 $ 2,621,178
Component changes in AUM by product type for the five years ended December 31, 2023 are presented below. Active
Non-ETF Index $ 221,187
708,510 $ — $ 1,912,668
2,902,494 $ 2,621,178
3,123,681
Component changes in AUM by product type for the five years ended December 31, 2023 are presented below. Non-ETF Index
ETFs 221,187
— —
3,499,299 2,902,494
— 3,123,681
3,499,299
December 31, Net inflows Market FX December 31, ETFs — 3,499,299 — 3,499,299
Long-term 929,697 3,499,299 4,815,162 9,244,158
(in millions) 2018 31,
December (outflows)
Net inflows Acquisitions(1) change
Market impact
FX 2023 31,
December
Long-term
Cash management 929,697
9,142 3,499,299
— 4,815,162
755,695 9,244,158
764,837
(in millions) 2018 (outflows) Acquisitions(1) change impact 2023
Equity $ 3,035,825 $ 272,642 $ 41,324 $ 2,015,984 $ (72,431) $ 5,293,344
Cash management
Total 9,142
$ 938,839 —
$ 3,499,299 755,695
$ 5,570,857 764,837
$ 10,008,995
Equityincome
Fixed $ 1,884,417
3,035,825 $ 1,044,744
272,642 $ 41,324 — $ 2,015,984
(68,551) $ (72,431)
(56,584) $ 5,293,344
2,804,026
Total $ 938,839 $ 3,499,299 $ 5,570,857 $ 10,008,995
Fixed income
461,884 1,044,744
243,942 — (68,551)
178,501 (56,584)
(13,523) 2,804,026
870,804
Multi-asset
143,358 243,942
93,248 —
2,177 178,501
37,779 (13,523)
(578) 870,804
275,984 Retail
Alternatives
Long-term 143,358
5,525,484 93,248
1,654,576 2,177
43,501 37,779
2,163,713 (578)
(143,116) 275,984
9,244,158 Retail
BlackRock serves retail investors globally through a wide toward portfolio construction are increasing the number
Long-term
448,565 1,654,576
302,338 43,501
— 2,163,713
11,654 (143,116)
2,280 9,244,158
764,837 array of products
BlackRock serves across the investment
retail investors globallyspectrum,
through a wide of financial
toward advisors
portfolio and end-retail
construction investorsthe
are increasing using
number
Cash management
Advisory 448,565
1,769 302,338
(2,421) — 11,654
618 2,280
34 764,837
— including separate
array of products accounts,
across open-end and
the investment closed-end
spectrum, BlackRock
of financialproducts.
advisors and end-retail investors using
Advisory
Total 1,769
$ 5,975,818 (2,421)
$ 1,954,493 —
$ 43,501 618
$ 2,175,985 34
$ (140,802) —
$ 10,008,995 funds, unitseparate
including trusts and private investment
accounts, open-end and funds. Retail
closed-end BlackRock products.
Retail represented 10% of long-term AUM at
Total $ 5,975,818 $ 1,954,493 $ 43,501 $ 2,175,985 $ (140,802) $ 10,008,995 investors are
funds, unit served
trusts andprincipally through intermediaries,
private investment funds. Retail
December 31, 202310%
Retail represented and of
31% of long-term
long-term AUM atinvestment
(1) Amounts include the following: (a) net AUM from the acquisition of Aperio Group, LLC (“Aperio Transaction”) in February 2021, and (b) net AUM from the acquisition of Kreos Capital in August including broker-dealers,
investors are banks,through
served principally trust companies,
intermediaries,
advisory
December and31,administration
2023 and 31%fees (collectively
of long-term “base fees”)
investment
(1) 2023 (theinclude
Amounts “Kreosthe
Transaction”).
following: (a) net AUM from the acquisition of Aperio Group, LLC (“Aperio Transaction”) in February 2021, and (b) net AUM from the acquisition of Kreos Capital in August insurance companies andbanks,
including broker-dealers, independent financial advisors.
trust companies,
2023 (the “Kreos Transaction”). and securities
advisory lending revenue
and administration for(collectively
fees 2023. “base fees”)
Technology solutions, and
insurance companies digital distribution
independent tools and
financial a shift
advisors.
and securities lending revenue for 2023.
Technology solutions, digital distribution tools and a shift
ETFs have a significant retail component but are shown AUM at year-end, with the remainder invested in private Ins t itutional
separately
ETFs have a below. With the
significant exclusion
retail of ETFs,
component but the
are majority
shown investment funds with
AUM at year-end, and separately managed
the remainder accounts.
invested in private Ins t itutional
of retail AUM
separately is comprised
below. of active mutual
With the exclusion of ETFs,funds. In the
the majority Approximately 75%
investment funds of separately
and retail long-term AUMaccounts.
managed is invested in BlackRock serves institutional investors on six continents in sub-categories including: pensions, endowments and
aggregate, active
of retail AUM and indexofmutual
is comprised active funds
mutualtotaled
funds. In the active products.75% of retail long-term AUM is invested in
Approximately foundations, official
BlackRock serves institutions,
institutional and financial
investors institutions;ininstitutional
on six continents AUMincluding:
sub-categories is diversified acrossendowments
pensions, product and and
region.
$705 billion,
aggregate, or approximately
active 75%,funds
and index mutual of retail long-term
totaled active products. foundations, official institutions, and financial institutions; institutional AUM is diversified across product and region.
Component changes in institutional long-term AUM for 2023 are presented below.
$705 billion, or approximately 75%, of retail long-term
Component changes in retail long-term AUM for 2023 are presented below. Component changes in institutional long-term AUM for 2023 are presented below.
Component changes in retail long-term AUM for 2023 are presented below. December 31, Net inflows Market FX December 31,
December (outflows)
Net inflows Acquisition(1) change
Market impact
FX 2023 31,
December
December 31, Net inflows Market FX December 31,
(in millions) 2022 31, (outflows) change impact 2023 31, (in millions) 2022 (outflows) Acquisition(1) change impact 2023
December Net inflows Market FX December Active:
(in millions) 2022 (outflows) change impact 2023 Active:
Equity $ 168,734 $ (13,301) $ — $ 29,088 $ 2,167 $ 186,688
Equity $ 370,612 $ 2,810 $ 58,248 $ 4,064 $ 435,734
Equityincome
Fixed $ 299,114
370,612 $ (2,471)
2,810 $ 58,248
11,821 $ 4,064
4,335 $ 312,799
435,734 Equity
Fixed income $ 168,734
774,955 $ (13,301)
4,714 $ — $ 29,088
53,538 $ 2,167
3,616 $ 186,688
836,823
Fixed income
Multi-asset 299,114
125,168 (2,471)
(236) 11,821
14,022 4,335
583 312,799
139,537 Fixed income
Multi-asset 774,955
544,469 4,714
85,665 — 53,538
79,644 3,616
7,404 836,823
717,182
Multi-asset
48,581 (236)
(8,576) 14,022
1,286 583
336 139,537
41,627 Multi-asset
153,433 85,665
10,028 —
2,177 79,644
4,925 7,404
1,417 717,182
171,980
Alternatives
Total 48,581
$ 843,475 (8,576)
$ (8,473) 1,286
$ 85,377 336
$ 9,318 41,627
$ 929,697 Alternatives
Active subtotal 153,433
1,641,591 10,028
87,106 2,177 4,925
167,195 1,417
14,604 171,980
1,912,673
Total $ 843,475 $ (8,473) $ 85,377 $ 9,318 $ 929,697 Active
Index: subtotal 1,641,591 87,106 2,177 167,195 14,604 1,912,673
The retail client base is diversified geographically, with including event driven, multi-strategy credit and Index:
Equity 1,814,266 (82,222) — 401,047 5,200 2,138,291
69% of long-term
The retail AUM
client base managed for
is diversified investors based
geographically, within unconstrained
including eventbond funds.
driven, Multi-asset
multi-strategy net outflows
credit and Equity
Fixed income 1,814,266
704,661 (82,222)
28,888 — 401,047
17,774 5,200
4,678 2,138,291
756,001
the
69% Americas, 26%AUM
of long-term in EMEA and 5%
managed for in Asia-Pacific
investors basedatin were driven by world
unconstrained allocation
bond funds. and multi-asset
Multi-asset net outflows Fixed income
Multi-asset 704,661
6,392 28,888
(1,896) — 17,774
559 4,678
(110) 756,001
4,945
year-end 2023.
the Americas, 26% in EMEA and 5% in Asia-Pacific at income strategies.
were driven by worldEquity net inflows
allocation of $5 billion
and multi-asset Multi-asset
Alternatives 6,392
3,296 (1,896)
105 — 559
(138) (110)
(11) 4,945
3,252
year-end 2023. reflected flows in Aperio,
income strategies. EquityBlackRock’s customized
net inflows of $5 billion Alternatives
Index subtotal 3,296
2,528,615 105
(55,125) — (138)
419,242 (11)
9,757 3,252
2,902,489
• US retail long-term net outflows of $5 billion were
index equity
reflected solution.
flows in Aperio, BlackRock’s customized
• driven bylong-term
US retail outflows from alternatives,
net outflows of $5fixed income
billion were and Index
Total subtotal 2,528,615
$ 4,170,206 $ (55,125)
31,981 —
$ 2,177 419,242
$ 586,437 9,757
$ 24,361 $ 2,902,489
4,815,162
index equity solution.
multi-asset of $6 billion,
driven by outflows $2 billion and
from alternatives, $1 billion,
fixed income and • International retail long-term net outflows of $4 billion Total $ 4,170,206 $ 31,981 $ 2,177 $ 586,437 $ 24,361 $ 4,815,162
(1) Amounts include AUM attributable to the Kreos Transaction.
respectively,
multi-asset of partially offset
$6 billion, $2 by equity
billion andnet
$1inflows
billion,of • were driven by
International alternatives
retail long-termand
netequity net outflows
outflows of
of $4 billion
$5 billion. Alternatives
respectively, and fixed
partially offset income
by equity netnet outflows
inflows of $2
werebillion
driven each, primarily due
by alternatives andtoequity
redemptions from of
net outflows Institutional active AUM ended 2023 at $1.9 trillion, plan assets with $3.0 trillion, or 63%, of long-term
were primarily
$5 billion. from rising-rate-sensitive
Alternatives and fixed income net strategies,
outflows event driven
$2 billion andprimarily
each, unconstrained strategies. from
due to redemptions reflecting
Institutional$87 billion
active AUM of net inflows,
ended 2023driven
at $1.9bytrillion,
the funding institutional
plan assets with AUM$3.0
managed
trillion,for
or defined
63%, of benefit,
long-term
were primarily from rising-rate-sensitive strategies, event driven and unconstrained strategies. of several significant
reflecting $87 billion of outsourcing
net inflows, mandates
driven byand the funding defined contribution
institutional and other
AUM managed for pension plans for
defined benefit,
ETFs continued growth in our
of several significant LifePath® mandates
outsourcing target-dateand and private corporations, governments
defined contribution and otherandpension
unions at plans for
ETFs
BlackRock is the leading ETF provider in the world with $3.5 trillion of AUM as of December 31, 2023. BlackRock markets platforms.
continued growth in our LifePath® target-date and private December
corporations, 31,governments
2023. The market landscape
and unions at continues
generated
BlackRock ETF net
is the inflows
leading of $186
ETF billion
provider in 2023.
in the world The
withmajority of ETF
$3.5 trillion AUMas
of AUM and
of net inflows 31,
December represent the Company’s
2023. BlackRock markets platforms. to shift from
December 31,defined benefit
2023. The to defined
market landscapecontribution,
continues
Multi-asset net inflows of $86 billion reflected continued and ourfrom
to shift defined contribution
defined benefit to channel
definedrepresented
contribution,
index-tracking
generated ETF iShares-branded
net inflows of $186 ETFs. TheinCompany
billion 2023. Thealso offersof
majority active BlackRock-branded
ETF AUM and net inflowsETFs that seek
represent the Company’s growth fromnetsignificant pension outsourcing
Multi-asset inflows of $86 billion reflectedmandates
continued $1.5 trillion
and our of total
defined pension AUM.
contribution BlackRock
channel remains
represented
outperformance and/or differentiated
index-tracking iShares-branded ETFs. outcomes
The Company and also
certain iShares-branded
offers ETFs that seek
active BlackRock-branded defined
ETFs outcomes.
that seek and LifePath target-datepension
offerings. Fixed income net
growth from significant outsourcing mandates well
$1.5positioned for the
trillion of total on-going
pension AUM. evolution
BlackRock of the
remains
outperformance and/or differentiated outcomes and certain iShares-branded ETFs that seek defined outcomes. inflows of $5 billion
and LifePath similarly
target-date reflected
offerings. Fixedtheincome
fundingnet of
Fixed income ETF net inflows of $112 billion were diversified across exposures, led by flows into treasury, core and defined contribution
well positioned for themarket
on-going andevolution
demand for of the
corporate credit
Fixed income ETFETFs. Equity ETF
net inflows net inflows
of $112 of $81
billion were billion were
diversified driven
across by flows led
exposures, intoby
core ETFs,
flows intoas well as continued
treasury, core and client insurance
inflows of $5 outsourcing mandates.
billion similarly Equity
reflected thenet outflows
funding of of outcome-oriented
defined contribution investments.
market andAn additional
demand for
use of BlackRock’s
corporate broad-based
credit ETFs. Equity ETFprecision
net inflowsexposure
of $81 ETFs
billiontowere
express riskbypreferences
driven and ETFs,
flows into core make as
tactical allocation
well as continued client $13 billionoutsourcing
insurance were primarily from quantitative
mandates. Equity netequity
outflows of $83 billion, or 2%, investments.
outcome-oriented of long-term institutional
An additionalAUM was
changes during thebroad-based
use of BlackRock’s year. Alternative ETFs had
precision net outflows
exposure ETFs toof $6 billion,
express risk primarily driven
preferences andby commodities
make funds.
tactical allocation strategies.
$13 billion were primarily from quantitative equity managed
$83 billion, for
orother
2%, oftax-exempt
long-terminvestors,
institutionalincluding
AUM was
changes during the year. Alternative ETFs had net outflows of $6 billion, primarily driven by commodities funds. strategies. charities,
managed foundations and endowments.
for other tax-exempt investors, including
ETFs represented 38% of long-term AUM at December 31, 2023 and 43% of long-term base fees and securities lending Alternatives net inflows of $10 billion were led by
charities, foundations and endowments.
revenue for 2023. 38% of long-term AUM at December 31, 2023 and 43% of long-term base fees and securities lending
ETFs represented infrastructure,
Alternatives netprivate
inflowscredit
of $10and private
billion wereequity.
led byExcluding • Official Institutions BlackRock managed $272 billion,
revenue for 2023. return of capital
infrastructure, and investment
private credit and of $7 billion,
private equity.alternatives
Excluding • or 6%, of
Official long-term BlackRock
Institutions institutional AUM for$272
managed official
billion,
Component changes in ETFs AUM for 2023 are presented below. net inflows
return were and
of capital $17 investment
billion. At year-end, BlackRock
of $7 billion, had
alternatives institutions, including
or 6%, of long-term central banks,
institutional AUMsovereign
for officialwealth
Component changes in ETFs AUM for 2023 are presented below. approximately
net inflows were $32$17billion of At
billion. non-fee
year-end,paying, unfunded,
BlackRock had funds, supranationals,
institutions, multilateral
including central banks,entities
sovereignand wealth
December 31, Net inflows Market FX December 31, uninvested
approximately commitments
$32 billion of to non-fee
deploy for institutional
paying, unfunded, government ministries multilateral
funds, supranationals, and agencies at year-end
entities and
December (outflows)
Net inflows change
Market impact
FX 2023 31,
December clients,
uninvestedwhich is not included
commitments in AUM.
to deploy for institutional 2023. These ministries
government clients oftenand require
agenciesspecialized
at year-end
(in millions)
Equity
2022
$ 2,081,742
(outflows)
$ 81,223
change
$ 362,885
impact
$ 6,781
2023
$ 2,532,631
clients, which is not included in AUM. investment
2023. Theseadvice,clientsthe userequire
often of customized
specialized
Institutional active represented 21% of long-term AUM benchmarks
investment advice,and training
the usesupport.
of customized
Equityincome
Fixed $ 2,081,742
758,093 $ 111,956
81,223 $ 362,885
24,544 $ 3,810
6,781 $ 2,532,631
898,403 and 19% of long-term
Institutional base fees21%
active represented and securities
of long-term lending
AUM benchmarks and training support.
Fixed income
Multi-asset 758,093
8,875 111,956
(746) 24,544
949 3,810
62 898,403
9,140 revenue
and 19%for of 2023.
long-term base fees and securities lending • Financial and Other Institutions BlackRock is a top
Multi-asset
Alternatives(1) 8,875
60,900 (746)
(6,491) 949
4,626 62
90 9,140
59,125 revenue for 2023. • independent
Financial andmanager of assets for
Other Institutions insurance
BlackRock is a top
Alternatives
Total (1) 60,900
$ 2,909,610 (6,491)
$ 185,942 4,626
$ 393,004 90
$ 10,743 59,125
$ 3,499,299
Institutional index AUM totaled $2.9 trillion at companies,
independentwhich manageraccounted
of assets forfor
$650 billion, or 13%,
insurance
Total $ 2,909,610 $ 185,942 $ 393,004 $ 10,743 $ 3,499,299
December
Institutional 31, 2023,
index AUMreflecting
totaled$55$2.9billion
trillionofatnet outflows, of long-termwhich
companies, institutional
accounted AUM at$650
for year-end 2023.
billion, or 13%,
(1) Amounts include commodity ETFs. driven
December by equities.
31, 2023, reflecting $55 billion of net outflows, Assets managed
of long-term for other AUM
institutional taxable institutions,
at year-end 2023.
(1) Amounts include commodity ETFs. driven by equities. including
Assets managedcorporations,
for otherbanks andinstitutions,
taxable third-party fund
BlackRock’s ETF product range offers investors a precise, income and core equity ETFs and partially offset by Institutional index represented 31% of long-term AUM
transparent
BlackRock’s and
ETF efficient way tooffers
product range gain exposure
investorsto a full range of
a precise, sponsors
including for which the Company
corporations, banks andprovides
third-party fund
outflows
income and from precision
core equity ETFs exposure ETFs. offset by
and partially and 7% of long-term
Institutional base fees 31%
index represented and securities
AUM
asset classes
transparent and
and global markets
efficient thatexposure
way to gain have beentodifficult for of
a full range sub-advisory
sponsors for which services,
thetotaled
Company $773 billion, or 16%, of
provides
outflows from precision exposure ETFs. revenue
and 7% of forlong-term
2023. base fees and securities lending
many
asset investors to access,
classes and as well that
global markets as the liquidity
have requiredfor
been difficult to • International ETF* AUM ended 2023 at $945 billion long-term
sub-advisory institutional AUM at$773
services, totaled year-end.
billion, or 16%, of
make adjustments to theiras
exposures quickly andrequired
cost- to
revenue for 2023.
many investors to access, well as the liquidity • with $83 billion
International ETF*of net
AUM inflows,
ended diversified
2023 at $945 acrossbillion The Company’s institutional clients consist of the long-term institutional AUM at year-end.
efficiently.
make adjustments to their exposures quickly and cost- product
with $83categories,
billion of net and led by diversified
inflows, net inflowsacross into fixed following:
The Company’s institutional clients consist of the
efficiently. income, core equity and led
product categories, sustainable
by net inflowsETFs.into fixed
• US ETF* AUM ended 2023 at $2.6 trillion with following:
income, core equity and sustainable ETFs. • Pensions, Foundations and Endowments BlackRock
• $103 billion
US ETF* AUM ofended
net inflows,
2023 atled$2.6
by net inflows
trillion withinto fixed * Regional ETF amounts based on jurisdiction of product, not underlying client.
• is among the
Pensions, world’s largest
Foundations managers of BlackRock
and Endowments pension
$103 billion of net inflows, led by net inflows into fixed * Regional ETF amounts based on jurisdiction of product, not underlying client.
is among the world’s largest managers of pension
CLIENT TYPE AND PRODUCT TYPE Multi-As s et include a combination of long-only portfolios and
CLIENT TYPE AND PRODUCT TYPE Multi-As
BlackRock smanages
et a variety of multi-asset funds and alternative investmentsofaslong-only
include a combination well as tactical asset
portfolios allocation
and
Component changes in AUM by client type and product type for 2023 are presented below. overlays.
bespoke
BlackRock mandates
managesfor a diversified
a variety client base
of multi-asset thatand
funds alternative investments as well as tactical asset allocation
Component changes in AUM by client type and product type for 2023 are presented below. overlays.
December 31, Net inflows Market FX December 31, leverages our broadfor
bespoke mandates investment expertise
a diversified in global
client base that Multi-asset represented 9% of long-term AUM and 9% of
December (outflows)
Market impact
FX 2023 31,
December equities,
leveragesbonds, and investment
our broad alternatives,expertise
and our extensive
in global risk long-term
Multi-assetbase fees and 9%
represented securities lendingAUM
of long-term revenue for of
and 9%
(in millions) 2022 (outflows) Acquisition(1) change impact 2023 management capabilities.
equities, bonds, Investment
and alternatives, solutions
and our mayrisk
extensive 2023.
long-term base fees and securities lending revenue for
Retail:
management capabilities. Investment solutions may 2023.
Retail:
Equity $ 370,612 $ 2,810 $ — $ 58,248 $ 4,064 $ 435,734
Component changes in multi-asset AUM for 2023 are presented below.
Equityincome
Fixed $ 370,612
299,114 $ 2,810
(2,471) $ — $ 58,248
11,821 $ 4,335
4,064 $ 435,734
312,799
Component changes in multi-asset AUM for 2023 are presented below.
Fixed income
Multi-asset 299,114
125,168 (2,471)
(236) — 11,821
14,022 4,335
583 312,799
139,537
December 31, Net inflows Market FX December 31,
Multi-asset
48,581 (236)
(8,576) — 14,022
1,286 583
336 139,537
41,627 (in millions) 2022 31,
December (outflows)
Net inflows change
Market impact
FX 2023 31,
December
Alternatives
Retail subtotal 48,581
843,475 (8,576)
(8,473) — 1,286
85,377 336
9,318 41,627
929,697 (in millions) 2022 (outflows) change impact 2023
ETFs: Target date/risk $ 370,840 $ 49,279 $ 67,091 $ 1,926 $ 489,136
Retail subtotal 843,475 (8,473) — 85,377 9,318 929,697
ETFs:
Equity 2,081,742 81,223 — 362,885 6,781 2,532,631 Targetallocation
Asset date/risk and balanced $ 201,172
370,840 $ 23,059
49,279 $ 20,300
67,091 $ 1,596
1,926 $ 246,127
489,136
Equity
758,093 81,223
111,956 — 362,885
24,544 6,781
3,810 2,532,631
898,403 Asset allocation and balanced
Fiduciary 201,172
112,892 23,059
10,449 20,300
7,783 1,596
4,417 246,127
135,541
Fixed income
Multi-asset 758,093
8,875 111,956
(746) — 24,544
949 3,810
62 898,403
9,140 Fiduciary
Total 112,892
$ 684,904 10,449
$ 82,787 7,783
$ 95,174 4,417
$ 7,939 $ 135,541
870,804
Multi-asset
Alternatives 8,875
60,900 (746)
(6,491) — 949
4,626 62
90 9,140
59,125 Total $ 684,904 $ 82,787 $ 95,174 $ 7,939 $ 870,804
Alternatives 60,900 (6,491) — 4,626 90 59,125 Multi-asset net inflows reflected ongoing institutional markets and developing a holistic approach to address
ETFs subtotal 2,909,610 185,942 — 393,004 10,743 3,499,299
demand
Multi-asset for net
our inflows
solutions-based
reflected advice
ongoing with $84 billion of
institutional client
marketsneeds
and in alternatives
developing investing.
a holistic Our alternatives
approach to address
Institutional:
ETFs subtotal 2,909,610 185,942 — 393,004 10,743 3,499,299
net inflows
demand forcoming from institutional
our solutions-based advice clients, including
with $84 billionthe
of products
client needsfallininto three main
alternatives categories
investing. Our— alternatives
(1) illiquid
Institutional:
Active:
funding
net inflowsof several
comingsignificant outsourcing
from institutional mandates.
clients, including the alternatives,
products fall (2) intoliquid
threealternatives,
main categories and (3) currency
— (1) illiquidand
Active:
Equity 168,734 (13,301) — 29,088 2,167 186,688
Defined
funding contribution plans remained
of several significant outsourcinga significant
mandates. driver of commodities.
alternatives, (2) Illiquid
liquidalternatives
alternatives,includeand (3)offerings
currencyin and
Equityincome
Fixed 168,734
774,955 (13,301)
4,714 — 29,088
53,538 2,167
3,616 186,688
836,823
flows
Defined and contributedplans
contribution $30 billion
remainedto institutional
a significant multi-
driver of infrastructure, opportunistic
commodities. Illiquid and credit,
alternatives include private equity,
offerings in real
Fixed income
Multi-asset 774,955
544,469 4,714
85,665 — 53,538
79,644 3,616
7,404 836,823
717,182
asset net inflows
flows and contributed in 2023,$30primarily
billion tointo target date
institutional and
multi- estate and alternative
infrastructure, solutions.
opportunistic andLiquid
credit,alternatives
private equity, real
Multi-asset
153,433 85,665
10,028 —
2,177 79,644
4,925 7,404
1,417 717,182
171,980 target riskinflows
product
asset net inofferings.
2023, primarily into target date and include
estate andofferings
alternativein direct hedgeLiquid
solutions. funds and hedge fund
alternatives
Alternatives
1,641,591 10,028
87,106 2,177 4,925
167,195 1,417
14,604 171,980
1,912,673 target risk product offerings. solutions (funds of
include offerings infunds).
direct hedge funds and hedge fund
Active
Index: subtotal 1,641,591 87,106 2,177 167,195 14,604 1,912,673 The Company’s multi-asset strategies include the
solutions (funds of funds).
Index:
following:
The Company’s multi-asset strategies include the In 2023, liquid and illiquid alternatives generated a
Equity 1,814,266 (82,222) — 401,047 5,200 2,138,291
following: combined $2 billion
In 2023, liquid of net inflows,
and illiquid alternatives or $10 billion excluding
generated a
Equityincome
Fixed 1,814,266
704,661 (82,222)
28,888 — 401,047
17,774 5,200
4,678 2,138,291
756,001 • Target date and target risk strategies generated net
Fixed income
Multi-asset 704,661
6,392 28,888
(1,896) — 17,774
559 4,678
(110) 756,001
4,945 • inflows
Target date of $49andbillion.
targetInstitutional
risk strategies investors
generated net return
combinedof capital
$2 billion/ return
of net oninflows,
investment or $10of billion
$8 billion. The
excluding
Multi-asset 6,392 (1,896) — 559 (110) 4,945 represented
inflows of $49 90% of target
billion. date and
Institutional target risk AUM,
investors largest
return ofcontributors
capital / return to return of capital /ofreturn
on investment on The
$8 billion.
Alternatives 3,296 105 (138) (11) 3,252
with defined 90%
represented contribution
of targetplans
date representing
and target risk 81%
AUM, of investment were opportunistic
largest contributors to return ofand credit
capital strategies,
/ return on
Alternatives
2,528,615 105
(55,125) — (138)
419,242 (11)
9,757 3,252
2,902,489
AUM. Flows were
with defined driven byplans
contribution defined contribution
representing 81% of infrastructure
investment were and private equity
opportunistic and solutions. Net inflows
credit strategies,
Index subtotal 2,528,615 (55,125) — 419,242 9,757 2,902,489
Institutional subtotal 4,170,206 31,981 2,177 586,437 24,361 4,815,162 were driven byand
infrastructure infrastructure,
private equity opportunistic
solutions. Net andinflows
credit
investments
AUM. Flows were in our LifePath
driven offerings.
by defined LifePath
contribution
Institutional
Long-term subtotal 4,170,206
7,923,291 31,981
209,450 2,177
2,177 586,437
1,064,818 24,361
44,422 4,815,162
9,244,158 products
investments utilize a proprietary
in our active asset
LifePath offerings. allocation
LifePath strategies
were drivenand by private equity. At
infrastructure, year-end, BlackRock
opportunistic and credithad
Long-term
671,194 209,450
79,245 2,177
— 1,064,818
8,732 44,422
5,666 9,244,158
764,837 model
products that seeksa to
utilize balance risk
proprietary activeandasset
return over an
allocation approximately
strategies and $32 private billion of non-fee
equity. paying,
At year-end, unfunded,
BlackRock had
Cash
Total management 671,194
$ 8,594,485 79,245
$ 288,695 —
$ 2,177 8,732
$ 1,073,550 5,666
$ 50,088 764,837
$ 10,008,995 investment
model that seeks horizon to based
balance onrisk
theandinvestor’s
return expected
over an uninvested
approximately commitments,
$32 billion of which
non-feeare expected to be
paying, unfunded,
Total $ 8,594,485 $ 288,695 $ 2,177 $ 1,073,550 $ 50,088 $ 10,008,995 retirement
investmenttiming. horizonUnderlying
based on the investments
investor’s areexpected deployed
uninvested in commitments,
future years; these which commitments
are expectedare not
to be
(1) Amounts include AUM attributable to the Kreos Transaction. included
deployed in in AUM
future oryears;
flows these
until they are fee-paying.
commitments are not
primarily
retirement index
timing.products.
Underlying investments are
(1) Amounts include AUM attributable to the Kreos Transaction. Currency
included in andAUM commodities
or flows until sawthey$7 billion of net outflows,
are fee-paying.
Long-term product offerings include active and index index, respectively, partially offset by ETF net inflows of primarily index products.
• Asset allocation and balanced strategies generated primarily
Currency from commoditiessaw
and commodities ETFs.$7 billion of net outflows,
strategies.
Long-term Our active
product strategies
offerings seek to
include earnand
active attractive
index $81 billion.
index, respectively, partially offset by ETF net inflows of
• $23
Assetbillion of netand
allocation inflows. These
balanced strategies
strategies combine
generated primarily from commodities ETFs.
returns in excess
strategies. of a market
Our active benchmark
strategies seek to earnor performance
attractive $81 billion. BlackRock believes that as alternatives become more
BlackRock’s effective fee rates fluctuate due to changes in equity,
$23 billionfixedofincome and alternative
net inflows. These strategiescomponents
combine for
hurdle
returnswhile maintaining
in excess an appropriate
of a market benchmark risk profile and
or performance conventional
BlackRock believes and investors adapt their asset
that as alternatives become allocation
more
AUM mix. Approximately
BlackRock’s effective fee half
ratesoffluctuate
BlackRock’s
due equity AUMin
to changes is investors
equity, fixed seeking
income a tailored solutioncomponents
and alternative relative to a for
leverage
hurdle whilefundamental
maintaining research and quantitative
an appropriate models
risk profile and to strategies,
conventional investors will further
and investors adapt increase theirallocation
their asset use of
tied
AUMtomix.
international market
Approximately halfstrategies, including
of BlackRock’s emerging
equity AUM is specific
investorsbenchmark and within
seeking a tailored a riskrelative
solution budget.to Ina
drive portfolio
leverage construction.
fundamental In contrast,
research index strategies
and quantitative models to alternative investments
strategies, investors will to complement
further increasecoretheirholdings.
use of
markets, which tend market
tied to international to havestrategies,
higher fee including
rates thanemerging
US certain
specificcases,
benchmarkthese andstrategies
withinseeka risktobudget.
minimize In
seek
drive to closelyconstruction.
portfolio track the returns of a corresponding
In contrast, index,
index strategies BlackRock’s highly diversified
alternative investments alternatives
to complement corefranchise
holdings. is well
equity
markets,strategies. Accordingly,
which tend fluctuations
to have higher fee ratesinthan
international
US downside
certain cases, risk through diversification,
these strategies seek to derivatives
minimize
generally by investing
seek to closely track theinreturns
substantially the same
of a corresponding index, positioned
BlackRock’stohighlycontinue to meetalternatives
diversified growing demand franchisefromisboth
well
equity markets, which
strategies. may notfluctuations
Accordingly, consistentlyin move in
international strategies
downside risk andthrough
tactical asset allocationderivatives
diversification, decisions.
underlying
generally bysecurities
investingwithin the index or
in substantially theinsame
a subset of institutional
positioned toand retail investors.
continue to meet growing demand from both
tandem with USwhich
equity markets, markets,
mayhave
not a greater impact
consistently move onin Flows in this
strategies and category
tacticalincluded pensiondecisions.
asset allocation outsourcing
those securities
underlying selected
securities to approximate
within the index or in a similar
a subsetrisk
of and institutional and retail investors.
BlackRock’s
tandem withequity revenues
US markets, haveand effective
a greater fee rate.
impact on mandates
Flows in this that fundedincluded
category during the year. Flagship
pension outsourcing
return profile of the
those securities index.toIndex
selected productsainclude
approximate similar both our
risk and Alternatives represented 3% of long-term AUM and 12%
BlackRock’s equity revenues and effective fee rate. products
mandatesalso thatinclude
fundedour Global
during theAllocation and Multi-
year. Flagship
non-ETF index
return profile ofproducts
the index.and ETFs.
Index products include both our Equity represented 58% of long-term AUM and 53% of of long-termrepresented
Alternatives base fees and 3% securities
AUM revenue
and 12% for
Asset
productsIncomealso fund
includefamilies.
our Global Allocation and Multi-
non-ETF index products and ETFs. long-term base fees58%
Equity represented and securities
AUM revenue
and 53%for of 2023.
of long-term base fees and securities lending revenue for
Although many clients use both active and index Asset Income fund families.
2023.
long-term base fees and securities lending revenue for • Fiduciary management services are complex 2023.
strategies,
Although many the application
clients useof these
both strategies
active may differ.
and index • mandates in which pension
Fiduciary management planare
services sponsors
complex or In the first quarter of 2024, BlackRock announced that it
2023.
For example,
strategies, theclients may use
application index strategies
of these products to gain
may differ. endowments
mandates in which and foundations
pension plan retain BlackRock
sponsors or to had entered
In the into anofagreement
first quarter 2024, BlackRock to acquire Global that it
announced
Fixed Incom e
exposure
For example, to aclients
marketmay or asset class products
use index or may use toagain assume
endowments responsibility for someretain
and foundations or all BlackRock
aspects of to Infrastructure
had entered into Management
an agreement LLC to(referred to herein as
acquire Global
Fixedincome
Fixed IncomAUMe ended 2023 at $2.8 trillion, reflecting
combination
exposure to aof index or
market strategies to target
asset class or may active
use areturns. In investment management,
assume responsibility often or
for some with
all BlackRock
aspects of acting Global Infrastructure
Infrastructure Management Partners LLC(“GIP”)), a leading
(referred to herein as
addition,
combination institutional non-ETF index
of index strategies assignments
to target tend to
active returns. In net inflows
Fixed incomeof AUM
$143 ended
billion.2023
Net inflows
at $2.8included
trillion, reflecting independent infrastructure
Global Infrastructure Partners manager
(“GIP”)), with over
a leading
as outsourced
investment chief investment
management, often officer. These acting
with BlackRock
be very large
addition, (multi-billion
institutional non-ETFdollars) and
index typically reflect
assignments tendlowto $112 billionofand
net inflows $32
$143 billionNet
billion. intoinflows
ETFs and non-ETF index,
included $100 billion in
independent client AUM asmanager
infrastructure of September 30, 2023. GIP
with over
customized
as outsourced services require strong
chief investment partnership
officer. These with
fee rates.
be very Net(multi-billion
large flows in institutional
dollars) index products
and typically reflect low respectively, partially
$112 billion and offset by
$32 billion $1ETFs
into billion
and ofnon-ETF
net outflows
index, specializes
$100 billioninininvesting
client AUM in, as
owning and operating
of September 30, 2023.assets
GIP
the clients’ investment
customized services requirestaff and
strong trustees in order
partnership to
with
generally haveflows
fee rates. Net a small impact on BlackRock’s
in institutional index productsrevenues from active. Fixed
respectively, income
partially offsetETF
by net inflowsofofnet
$1 billion $112 billion
outflows across the energy,
specializes in investingtransport, digitaland
in, owning infrastructure
operating assetsand
tailor investment
the clients’ investmentstrategies
staff to
and meet client-specific
trustees in order to
and earnings.
generally have a small impact on BlackRock’s revenues reflected theFixed
from active. benefit of ourETF
income diverse productofoffering
net inflows and
$112 billion water
acrossand
thewaste
energy, management
transport, digitalsectors. The transaction
infrastructure and is
risk
tailorbudgets
investment and return
strategiesobjectives.
to meet client-specific
and earnings. included
reflected strong flowsofinto
the benefit ourtreasury, core and
diverse product corporate
offering and expected
water andto closemanagement
waste in the third quarter
sectors. ofThe
2024, subject tois
transaction
risk budgets and return objectives.
Equity credit
includedETFs.
strong flows into treasury, core and corporate customary
expected toregulatory
close in the approvals
third quarterand other closing
of 2024, subject to
credit ETFs. Alternatives
Equity
Year-end 2023 equity AUM totaled $5.3 trillion, reflecting Fixed income represented 30% of long-term AUM and conditions.
customary regulatory approvals and other closing
Alternatives
BlackRock alternatives focus on sourcing and managing
net outflows
Year-end of $11
2023 billion.
equity AUMNet outflows
totaled $5.3 included
trillion, reflecting 26%
Fixedof long-term
income base fees
represented andofsecurities
30% long-term lending
AUM and conditions.
high-alpha investmentsfocus
BlackRock alternatives with on
lower correlation
sourcing to public
and managing
$27 billion and
net outflows $66 billion.
of $11 billion out
Netof active and
outflows non-ETF
included revenue for 2023. base fees and securities lending
26% of long-term
high-alpha investments with lower correlation to public
$27 billion and $66 billion out of active and non-ETF revenue for 2023.
Component changes in alternatives AUM for 2023 are presented in the table below. CLIENT REGION
Component changes in alternatives AUM for 2023 are presented in the table below. CLIENT REGION
Our footprints in the Americas, EMEA and Asia-Pacific regions reflect strong relationships with intermediaries and an
Memo: established ability
Our footprints to Americas,
in the deliver ourEMEA
globaland
investment expertise
Asia-Pacific in reflect
regions funds and other
strong products tailored
relationships to local regulations
with intermediaries and anand
return
Memo:of Memo:
December 31, Net inflows Market FX December 31, capital/ committed requirements.
established ability to deliver our global investment expertise in funds and other products tailored to local regulations and
return of Memo:
December (outflows)
Market impact
FX 2023 31,
December investment
capital/
(2) capital(3)
committed requirements.
AUM by product type and client region at December 31, 2023 is presented below.
(in millions) 2022 (outflows) Acquisition(1) change impact 2023 investment(2) capital(3)
Illiquid alternatives: AUM by product type and client region at December 31, 2023 is presented below.
Illiquid alternatives:
Alternative solutions $ 6,645 $ 504 $ — $ 63 $ 102 $ 7,314 $ (565) $ 5,599 (in millions) Americas EMEA Asia-Pacific Total
Alternative solutions
Private equity and opportunistic: $ 6,645 $ 504 $ — $ 63 $ 102 $ 7,314 $ (565) $ 5,599 (in millions) Americas EMEA Asia-Pacific Total
Equity $ 3,660,686 $ 1,227,394 $ 405,264 $ 5,293,344
Private equity
Private andsolutions
equity opportunistic: 21,500 3,443 — (126) 65 24,882 (1,829) 6,913 Equity
Fixed income $ 1,740,218
3,660,686 $ 1,227,394
755,240 $ 405,264
308,568 $ 5,293,344
2,804,026
Private equity solutions
Opportunistic and credit 21,500 3,443 — (126) 65 24,882 (1,829) 6,913
Fixed income
627,582 755,240
197,128 308,568
46,094 2,804,026
870,804
strategies and credit
Opportunistic 24,842 3,887 2,177 (125) 347 31,128 (2,826) 3,075
Multi-asset
148,944 197,128
95,622 46,094
31,418 870,804
275,984
strategies
Long Term Private Capital 24,842
6,620 3,887
4 2,177
— (125)
3,702 347
— 31,128
10,326 (2,826)
— 3,075
—
Alternatives
Long-term 148,944
6,177,430 95,622
2,275,384 31,418
791,344 275,984
9,244,158
Long
Private Termand
equity Private Capital
opportunistic 6,620 4 — 3,702 — 10,326 — —
subtotal 52,962 7,334 2,177 3,451 412 66,336 (4,655) 9,988 Long-term 6,177,430 2,275,384 791,344 9,244,158
Private equity and opportunistic Cash management 550,880 203,426 10,531 764,837
subtotal
Real assets: 52,962 7,334 2,177 3,451 412 66,336 (4,655) 9,988 Cash management
Total 550,880
$ 6,728,310 203,426
$ 2,478,810 10,531
$ 801,875 764,837
$ 10,008,995
RealReal
assets:
estate 28,596 43 — (1,523) 442 27,558 (515) 378 Total $ 6,728,310 $ 2,478,810 $ 801,875 $ 10,008,995
Real estate
Infrastructure 28,596
29,548 43
5,784 — (1,523)
(106) 442
475 27,558
35,701 (515)
(1,961) 378
14,983 Component changes in AUM by client region for 2023 are presented below.
Infrastructure
Real assets subtotal 29,548
58,144 5,784
5,827 — (106)
(1,629) 475
917 35,701
63,259 (1,961)
(2,476) 14,983
15,361 Component changes in AUM by client region for 2023 are presented below.
Real
Total assets
illiquid subtotal
alternatives 58,144
117,751 5,827
13,665 —
2,177 (1,629)
1,885 917
1,431 63,259
136,909 (2,476)
(7,696) 15,361
30,948 December 31, Net inflows December 31,
December (outflows)
Net inflows Acquisition(1) Market change FX impact 2023 31,
December
Total illiquid alternatives
Liquid alternatives: 117,751 13,665 2,177 1,885 1,431 136,909 (7,696) 30,948
(in millions) 2022 (outflows) Acquisition(1) Market change FX impact 2023
Liquid alternatives:
Direct hedge fund strategies 51,972 (9,224) — 3,200 370 46,318 — — Americas $ 5,782,223 $ 177,249 $ — $ 757,788 $ 11,050 $ 6,728,310
Direct
Hedgehedge fund strategies
fund solutions 51,972
28,682 (9,224)
(2,146) — 3,200
1,348 370
31 46,318
27,915 —
(324) —
765 Americas
EMEA $ 5,782,223
2,137,442 $ 177,249
65,171 $ 2,177 — $ 757,788
210,475 $ 11,050
63,545 $ 6,728,310
2,478,810
Hedge
Total fund
Liquid solutions
alternatives 28,682
80,654 (2,146)
(11,370) — 1,348
4,548 31
401 27,915
74,233 (324) 765 EMEA
Asia-Pacific 2,137,442
674,820 65,171
46,275 2,177
— 210,475
105,287 63,545
(24,507) 2,478,810
801,875
Total Liquid 74,233 Asia-Pacific
Total 674,820
$ 8,594,485 46,275
$ 288,695 —
$ 2,177 105,287
$ 1,073,550 $(24,507)
50,088 801,875
$ 10,008,995
Currency andalternatives
commodities 80,654
67,805 (11,370)
(7,229) — 4,548
4,266 401
— 64,842 (324)
— 765
—
Currency and commodities 67,805 (7,229) — 4,266 — 64,842 — — Total $ 8,594,485 $ 288,695 $ 2,177 $ 1,073,550 $ 50,088 $ 10,008,995
Total $ 266,210 $ (4,934) $ 2,177 $ 10,699 $ 1,832 $ 275,984 $ (8,020) $ 31,713 (1) Amounts include AUM attributable to the Kreos Transaction.
Total $ 266,210 $ (4,934) $ 2,177 $ 10,699 $ 1,832 $ 275,984 $ (8,020) $ 31,713 (1) Amounts include AUM attributable to the Kreos Transaction.
(1) Amounts include AUM attributable to the Kreos Transaction. Am ericas INVESTMENT PERFORMANCE
(1) Amounts include AUM attributable to the Kreos Transaction. Am ericas INVESTMENT PERFORMANCE
(2) Return of capital/investment is included in outflows. Americas net inflows of $177 billion were driven by net
(2) Return of capital/investment is included in outflows.
Investment performance across active and index products
(3) Amount represents client assets that are uninvested commitments, which are currently non-fee paying and are not included in AUM. These commitments are expected to generate fees and will inflows into
Americas netfixed income,
inflows multi-asset,
of $177 billion werecash, and by
driven equity
net of as of December
Investment 31, 2023 across
performance was as active
follows:
and index products
be counted
(3) Amount in AUM client
represents and flows as that
assets the capital is deployed
are uninvested over time. which are currently non-fee paying and are not included in AUM. These commitments are expected to generate fees and will
commitments, $83 billion,
inflows into$60
fixedbillion,
income,$39 billion, andcash,
multi-asset, $4 billion,
and equity of as of December 31, 2023 was as follows:
be counted in AUM and flows as the capital is deployed over time. respectively.
$83 These
billion, $60 were$39
billion, partially offset
billion, by alternative
and $4 billion, net One-year Three-year Five-year
Illiquid Alternatives funds, mainly from retail event driven and multi-strategy outflows of $9
respectively. billion,
These primarily
were partiallyfrom USby
offset mutual funds.net
alternative period
One-year period
Three-year period
Five-year
Illiquid Alternatives credit
funds,funds.
mainlyDirect hedgeevent
from retail funddriven
strategies
and includes a
multi-strategy During the
outflows of year, BlackRock
$9 billion, served
primarily fromclients through
US mutual offices
funds. period period period
The Company’s illiquid alternatives strategies include the Fixed income:
variety of single-and
credit funds. multi-strategy
Direct hedge offerings.
fund strategies includes a across the
During the US asBlackRock
year, well as in Canada, Mexico,
served clients Brazil, offices
through Fixed income:
following:
The Company’s illiquid alternatives strategies include the Actively managed AUM above
variety of single-and multi-strategy offerings. Colombia,
across the Chile
US asandwellthe Dominican
as in Republic.
Canada, Mexico, Brazil, benchmark or peer median
following: Actively managed AUM above
• Real Assets which includes infrastructure and real In addition, the Company manages $84 billion in liquid Colombia, Chile and the Dominican Republic. benchmark
Taxable or peer median 84% 78% 92%
• estate, totaled
Real Assets $63includes
which billion ininfrastructure
AUM, reflecting andnet
real credit strategies
In addition, which is included
the Company managesin$84
active fixed
billion in income.
liquid The Americas represented 67% of total AUM and 65% of
Taxable
Tax-exempt 84%
75% 78%
61% 92%
45%
inflows of $6 billion,
estate, totaled led byininfrastructure.
$63 billion AUM, reflecting net credit strategies which is included in active fixed income. totalAmericas
The base feesrepresented
and securities67%lending revenue
of total AUM and for 65%
2023.of
total base fees and securities lending revenue for 2023. Tax-exempt
Index AUM within or above 75% 61% 45%
inflows of $6 billion, led by infrastructure. Currency and Commodities applicable tolerance 98% 97% 97%
• Private Equity and Opportunistic included AUM of Index AUM within or above
Currency and Commodities EMEA applicable tolerance 98% 97% 97%
• $31 billion
Private in opportunistic
Equity and Opportunisticand credit offerings,
included AUM of The Company’s currency and commodities products Equity:
EMEA
EMEA net inflows of $65 billion were driven by cash, fixed
$25
$31 billion in private equity and
opportunistic solutions,
credit and $10 billion
offerings, include a range currency
The Company’s of active and
and index products.
commodities products Equity:
Actively managed AUM above
in
$25Long Term
billion Private equity
in private Capitalsolutions,
(“LTPC”).andNet $10
inflows of
billion include a range of active and index products. income,
EMEA multi-asset,
net inflows of $65and billion
alternatives net inflows
were driven by cash,of fixed benchmark
Actively or peer
managed AUMmedian
above
Currency and commodities products had $7 billion of net $38 billion,
income, $27 billion,
multi-asset, and$23 billion, and
alternatives $3inflows
net billion,of benchmark or peer median
Fundamental 69% 47% 87%
$7 billion
in Long into Private
Term private Capital
equity and opportunistic
(“LTPC”). Net inflows of
outflows,
Currency primarily from ETFs.
and commodities Commodities
products had $7 ETFs
billion of net respectively.
$38 These
billion, $27 were$23
billion, partially offset
billion, and $3by equity
billion,net Fundamental 69% 47% 87%
strategies included
$7 billion into $4equity
private billionand
of net inflows into
opportunistic Systematic 87% 83% 89%
represented $59 billion
outflows, primarily fromof AUMCommodities
ETFs. and are not eligible
ETFs for outflows of $26
respectively. billion,
These werewhich included
partially offsetaby$19 billion
equity netsingle
opportunistic and credit
strategies included offerings
$4 billion of netand $3 billion
inflows into of net Systematic
Index AUM within or above 87% 83% 89%
performance fees.
represented $59 billion of AUM and are not eligible for institutional
outflows client
of $26 redemption
billion, from a low-fee
which included index single
a $19 billion applicable tolerance 96% 99% 100%
inflows into private
opportunistic equity
and credit solutions.
offerings and $3 billion of net Index AUM within or above
performance fees. mandate in the
institutional third
client quarter. Offerings
redemption includeindex
from a low-fee fund applicable tolerance 96% 99% 100%
inflows into private equity solutions.
• Alternative Solutions represents highly customized Cas h Managem ent families ininthe
mandate theUnited Kingdom
third quarter. (“UK”), the
Offerings Netherlands,
include fund
• portfolios
AlternativeofSolutions
alternative investments.
represents highlyAlternative
customized Cas Performance Notes
Cashhmanagement
Managem ent
AUM totaled a record $765 billion at Luxembourg
families in theand Dublin
United and ETFs
Kingdom listed
(“UK”), theon stock
Netherlands,
Performance Notes
solutions
portfolios portfolios hadinvestments.
of alternative $7 billion in AUM at
Alternative exchanges throughout
Luxembourg and Dublin Europe,
and ETFs as well ason
listed separate
stock Past performance is not indicative of future results. Except
December 31, 2023,AUM
Cash management reflecting $79
totaled billion$765
a record of netbillion
inflows.
at
December 31, 2023,had
solutions portfolios reflecting $0.5
$7 billion inbillion
AUM at of net accounts and
exchanges pooled investment
throughout Europe, asproducts.
well as separate as specified,
Past the performance
performance is not indicativeinformation
of futureshown is Except
results. as of
Cash management
December 31, 2023,products include
reflecting taxable
$79 billion andinflows.
of net
inflows.
December 31, 2023, reflecting $0.5 billion of net accounts and pooled investment products. December
as 31,
specified, 2023
the and is based
performance on preliminary
information showndata
is as of
tax-exempt money market
Cash management productsfunds, short-term
include investment
taxable and EMEA represented 25% of total AUM and 29% of total
inflows. available at31,
December that time.
2023 andThe isperformance data shown
based on preliminary data
funds and customized
tax-exempt money marketseparate
funds,accounts.
short-termPortfolios are
investment base fees and securities
Liquid Alternatives EMEA represented 25% lending revenue
of total AUM andfor
29% 2023.
of total reflects information
available at that time.for all performance
The actively and passively
data shownmanaged
denominated in US dollars,
funds and customized Canadian
separate dollars,
accounts. Australian
Portfolios are
Liquid Alternatives base fees and securities lending revenue for 2023. equity and
reflects fixed income
information accounts,
for all including
actively and US registered
passively managed
The Company’s liquid alternatives products’ net outflows dollars, euros,in
denominated Swiss francs, Canadian
US dollars, New Zealand dollars
dollars, or British
Australian
pounds.
dollars, euros, Swiss francs, New Zealand dollars or British As ia-Pacific investment
equity companies,
and fixed incomeEuropean-domiciled
accounts, including US retail funds
registered
of
The$11 billion reflected
Company’s redemptions
liquid alternatives from direct
products’ net hedge
outflows
pounds. As ia-Pacific
Asia-Pacific net inflows of $46 billion were primarily due to and separate
investment accounts for
companies, which performance
European-domiciled datafunds
retail is
of $11 billion reflected redemptions from direct hedge
fixed incomenet
Asia-Pacific andinflows
equityof
net inflows
$46 ofwere
billion $34 primarily
billion anddue to available,
and including
separate performance
accounts data for high data
for which performance net worth
is
$11 billion,
fixed income respectively. Clients
and equity net in the
inflows of Asia-Pacific region
$34 billion and accounts available
available, includingas of November
performance 30,for
data 2023.
highThe
net worth
are served
$11 billion,through offices
respectively. in Japan,
Clients Australia,
in the Hongregion
Asia-Pacific Kong, performance
accounts data does
available as ofnot include 30,
November accounts
2023. terminated
The
Singapore,
are Taiwan, Korea,
served through officesChina, andAustralia,
in Japan, India. Hong Kong, prior to December
performance 31, 2023
data does and accounts
not include for terminated
accounts which data
Singapore, Taiwan, Korea, China, and India. has not
prior yet been verified.
to December 31, 2023 If such accounts for
and accounts hadwhich
been data
Asia-Pacific represented 8% of total AUM and 6% of total included,
has the
not yet performance
been verified. If data
suchprovided
accountsmayhadhave
been
base fees and
Asia-Pacific securities lending
represented revenue
8% of total AUMforand2023.
6% of total substantially
included, the differed from data
performance that shown.
provided may have
base fees and securities lending revenue for 2023. substantially differed from that shown.
Performance comparisons shown are gross-of-fees for BlackRock measures the fees related to these agreements BlackRock employs a conservative investment style for Culture and Principles
institutional
Performanceand high net worth
comparisons shown separate accounts, and
are gross-of-fees for and refers to
BlackRock this as ACV.
measures For further
the fees relatedinformation on ACV,
to these agreements cash and securities
BlackRock employs lending collateral
a conservative that emphasizes
investment style for Culture
BlackRockand Principles
believes that maintaining a strong corporate
net-of-fees
institutionalfor retail
and highfunds. The performance
net worth tracking
separate accounts, and see
andItem
refers7.toManagement’s
this as ACV. For Discussion and Analysis
further information onofACV, quality,
cash and liquidity,
securitiesandlending
interestcollateral
rate risk that
management.
emphasizes culture is an
BlackRock important
believes thatcomponent
maintainingofaits human
strong capital
corporate
shown for index
net-of-fees accounts
for retail funds.isThe
based on gross-of-fees
performance tracking Financial
see Item 7. Condition and Results
Management’s of Operations
Discussion — Non-GAAP
and Analysis of Disciplined risk management,
quality, liquidity, and interest rate including a rigorous credit
risk management. management practices component
culture is an important and critical to
of the firm’s long-term
its human capital
performance
shown for index andaccounts
includesisallbased
institutional accounts and
on gross-of-fees Financial Measures.
Condition and Results of Operations — Non-GAAP surveillance
Disciplined risk process, is an integral
management, part of
including a the investment
rigorous credit success.
managementBlackRock’s
practicesculture is underpinned
and critical by five
to the firm’s core
long-term
all iShares funds
performance andglobally
includesusing an index strategy.
all institutional accounts AUMand Financial Measures. process.
surveillance BlackRock’s
process, Cash Management
is an integral part ofCredit
the investment principles that unify its
success. BlackRock’s workforce
culture and guide how
is underpinned it core
by five
information is based
all iShares funds on AUM
globally usingavailable
an indexasstrategy.
of December
AUM 31, Aladdin, which represented the majority of technology Committee has established
process. BlackRock’s risk limits, such
Cash Management as aggregate
Credit
services
Aladdin, revenue for the year,
which represented continues
the majority to of benefit
technologyfrom interacts
principleswith
thatits employees,
unify its clients,
its workforce the communities
and guide how it
2023 for each
information is account
based onorAUM fundavailable
in the asset
as ofclass shown 31,
December issuer exposure
Committee limits and maturity
has established limits,
risk limits, suchacross many of
as aggregate in which itwith
interacts operates and its other
its employees, stakeholders:
its clients, (1) We are
the communities
without
2023 foradjustment
each account for or
overlapping
fund in themanagement of the
asset class shown trends
services favoring
revenueglobal
for the platform consolidation
year, continues and from
to benefit multi- the products
issuer exposure BlackRock
limits and manages,
maturityincluding over all
limits, across manyof itsof
asset
trendsrisk solutions
favoring across
global public
platform and private markets.
consolidation and multi- a
infiduciary to our clients;
which it operates (2)other
and its We are One BlackRock;
stakeholders: (1) We(3)are
We
same
withoutaccount or fund.
adjustment forFund performance
overlapping reflects of
management thethe cash management
the products products.
BlackRock In theincluding
manages, ordinary course
over allof ofour
its are passionate
a fiduciary about
to our performance;
clients; (2) We are (4)
OneWe take emotional
BlackRock; (3) We
reinvestment
same accountof ordividends
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performance reflects the Approximately 25%across
asset risk solutions of Aladdin’s
publicrevenue
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cash management be instances when
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ordinary coursemay of our
denominated
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are passionateandabout
(5) Weperformance;
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a better future.
take emotional
reinvestment of dividends and distributions. exceed
business, anthere
internal
may riskbelimit or when
instances whenan internal risk
a portfolio maylimit ownership; and (5) We are committed to a better future.
Performance shown is derived from applicable benchmarks Aladdin is a multi-asset
denominated in non-USsystem,
currencies.the majority
In addition, of positions
while may
exceedbe an
changed.
internalNo risksuch instances,
limit or when an individually or in
internal risk the
limit
or peer median
Performance information,
shown is derivedasfrom
selected by BlackRock.
applicable Peer
benchmarks managed
Aladdin is on the platform
a multi-asset are fixed
system, theincome.
majority2023 of positions aggregate, have been material to the individually
Company. To Diversity, Equity and Inc lusion (“DEI”)
may be changed. No such instances, orthe
in the
medians are based
or peer median in part onas
information, data eitherby
selected from Lipper, Inc.
BlackRock. or
Peer technology
managed onservices revenue
the platform aregrowth reflected
fixed income. headwinds
2023 extent that have
aggregate, daily been
evaluation andtoreporting
material of the To
the Company. profile
the of Diversity, Equity
BlackRock believes and Inc
a diverse lusion (“DEI”)
workforce with an inclusive
Morningstar, Inc. forineach
medians are based part included product.
on data either from Lipper, Inc. or associated
technology with 2022
services bond market
revenue growthdeclines
reflected onheadwinds
Aladdin’s the portfolios
extent that daily identify that aand
evaluation limitreporting
has beenofexceeded,
the profile theof and connected
BlackRock culture
believes is a commercial
a diverse workforce imperative and
with an inclusive
Morningstar, Inc. for each included product. fixed income
associated platform
with 2022 bondassets.market declines on Aladdin’s relevant portfolio
the portfolios will be
identify adjusted.
that a limit hasTo the
beenextent a portfolio
exceeded, the indispensable
and connectedto its success.
culture Ultimately,imperative
is a commercial a dynamic,and
fixed income platform assets. manager would like
relevant portfolio willtobeobtain a temporary
adjusted. waiveraof
To the extent a risk
portfolio inclusive organization
indispensable allows Ultimately,
to its success. BlackRock to attract and
a dynamic,
TECHNOLOGY SERVICES BlackRock is focused on enhancing Aladdin, with
limit,
managerthe portfolio
would like manager
to obtain must obtain approval
a temporary waiver of from
a risk the retain toporganization
inclusive talent around the world
allows and toto
BlackRock stay ahead
attract andof its
TECHNOLOGY SERVICES continued
BlackRock investment
is focused on into areas such
enhancing as whole
Aladdin, withportfolio,
BlackRock offers investment management technology credit research
limit, the portfolioteam,
managerwhich must
is independent from the
obtain approval from cashthe clients’ needs.
retain top talent around the world and to stay ahead of its
private
continued markets, wealthinto
investment andareas
sustainable
such asinvesting
whole portfolio,
systems,
BlackRock risk management
offers investment services,
management and wealth
technology management
credit researchportfolio
team, whichmanagers. While a risk
is independent limit
from themaycash be clients’ needs.
solutions. BlackRock
private markets, wealthcontinues to evolveinvesting
and sustainable and enable BlackRock’s three pillar DEI strategy is aligned with the
management and digital distribution
systems, risk management services, and tools on a fee basis.
wealth waived
managementtemporarily, such
portfolio waivers are
managers. infrequent.
While a risk limit may be
clients to further
solutions. BlackRocksimplify their operating
continues to evolve andinfrastructure
enable firm’s business
BlackRock’s priorities
three andstrategy
pillar DEI long-term objectives.
is aligned withThethe
Aladdin is our and
management proprietary technology tools
digital distribution platform,
on aproviding
fee basis. waived temporarily, such waivers are infrequent.
with Aladdin.
clients Clients
to further increasingly
simplify want toinfrastructure
their operating tailor how they three
firm’spillars
businessare priorities
(1) talentandandlong-term
culture across the globe,
objectives. The
an end-to-end,
Aladdin SaaS solution
is our proprietary for investment
technology platform,and risk
providing use
withAladdin
Aladdin.toClients
meet their specific want
increasingly needs, toand BlackRock
tailor how theyis
management
an end-to-end,for bothsolution
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for investment andnumber
risk of RISK AND QUANTITATIVE A NALYSIS which focuses
three pillars areon(1)attracting,
talent anddeveloping
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the globe,top
providing
use Aladdin them with their
to meet choice and flexibility.
specific needs, and BlackRock
BlackRock is is talent
which by cultivating
focuses an inclusive
on attracting, work environment
developing and retaining where
top
institutional
managementand for retail investors around
both BlackRock the world.
and a growing number of RISK AND QUANTITATIVE A NALYSIS
empowering
providing them clients
with with
choice dataandand openingBlackRock
flexibility. Aladdin byis Across all asset classes, in addition to the efforts of the employees have fair an
talent by cultivating access to opportunities
inclusive and feelwhere
work environment seen,
BlackRock
institutional offers risk reporting
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around thevia Aladdin
world. creating
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clients with ecosystem
and openingproviders andby
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in addition andefforts
to the Quantitative
of the
Risk, as welloffers
BlackRock as investment accounting
risk reporting capabilitiescapabilities.
via Aladdin Aladdin heard, valued
employees and
have respected,
fair access to(2) activities to and
opportunities support
feel seen,
party technology
creating solutions,
connectivity which include
with ecosystem assetand
providers servicers,
third- Analysis
portfolio (“RQA”) group teams,
management at BlackRock
the Riskdraws on extensive
and Quantitative interested
heard, valuedclients,
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respected, onactivities
expanding investment
to support
Provider is a as
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party technology assetwhich
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group proprietary
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draws data to
on extensive
to the platform
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usedbyby asset
asset managers
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connecting add
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investment
and
cloudothers. This digital
providers, connectivity helps clients
asset platforms, work in
trading their
systems identify,
analyticalmeasure
systemsand
andmanage a wide
proprietary andrange of risks.
third-party RQAto
data brokers, managers,
choices and business and suppliers, opportunities
partnership and (3) impactwith in
operational
to the platformefficiency.
used byInasset
2019, BlackRock
managers andacquired
ownerseFront,
to add Aladdin environments
and others. with a more
This connectivity helpscustomized
clients workand in their provides risk management
identify, measure and manageadvice andrange
a wide independent
of risks.risk
RQA
a leading end-to-end
operational efficiency.alternative investment
In 2019, BlackRock management
acquired eFront, underserved communities,
brokers, managers, which focuses
and suppliers, on helping
and (3) impact in more
seamless end-to-end experience.
Aladdin environments with a more customized and oversight of the
provides risk investmentadvice
management management processes,risk
and independent and more people
underserved experiencewhich
communities, financial well-being
focuses through
on helping more
software
a leadingand solutionsalternative
end-to-end provider to enable clients
investment to
management seamless end-to-end experience. identifies
oversight and helps
of the managemanagement
investment counterpartyprocesses,
and enterprise
manage
software portfolios
and solutionsand provider
risk across to public
enableand private
clients to asset BlackRock philanthropy
and more people and employee-led
experience financial well-beingvolunteer efforts.
through
In addition, BlackRock has made minority investments in risks, coordinates
identifies and helpsstandards
manage for firm wide investment
counterparty and enterprise
classes
manageon a single and
portfolios platform. eFront
risk across is offered
public to clients
and private asset BlackRock philanthropy and employee-led volunteer efforts.
financial
In addition,technology
BlackRock andhas digital
madedistribution providers, in
minority investments performance measurement
risks, coordinates standardsand determines
for firm risk
wide investment BlackRock views transparency and measurement as
both as on
classes a standalone offeringeFront
a single platform. and asispart of antointegrated
offered clients data and technology
financial whole portfolioandcapabilities including
digital distribution Upvest,
providers, management-related
performance measurement analytical
and and information
determines risk critical
BlackRockto its strategy.
views Since 2020,
transparency andthe firm has published
measurement as
“Whole
both as Portfolio
a standaloneView”offering
solutionand that asprovides
part of an transparency
integrated Avaloq,
data and Human Interest, Circle,
whole portfolio SpiderRock
capabilities including Advisors,
Upvest, requirements. Where appropriate,
management-related analytical and RQA will work with
information annual SASB-aligned
critical to its strategy. disclosure
Since 2020, and
theEEO-1
firm has reports, and
published
across
“Wholeclients’
Portfolio public
View”and private
solution assets.
that Through
provides our
transparency Clarity
Avaloq,AI, Envestnet,
Human Acorns,
Interest, Scalable
Circle, SpiderRockCapital and iCapital.
Advisors, portfolio managers
requirements. Where and developersRQA
appropriate, to facilitate
will workthe
with since
annual 2022, a Global DEI
SASB-aligned Annual Report.
disclosure and EEO-1 As ofreports,
January and1,
Cachematrix
across clients’platform,
public and BlackRock is also Through
private assets. a leadingour provider BlackRock records itsAcorns,
Clarity AI, Envestnet, share of incomeCapital
Scalable related andto minority
iCapital. development or improvement
portfolio managers of risktomodels
and developers and
facilitate analytics.
the 2024, of theaCompany’s
since 2022, Global DEIemployees
Annual Report. who self-identified
As of January 1,
of financial technology
Cachematrix which simplifies
platform, BlackRock is alsothe cash provider
a leading investments
BlackRock recordsaccounted for under
its share of incomethe equity
related method in
to minority development or improvement of risk models and analytics. their
2024,gender status, approximately
of the Company’s employees44% of the Company’s
who self-identified
management process for
of financial technology banks
which and their
simplifies corporate
the cash clients other revenueaccounted
investments and records forgains
underand the losses
equity related
methodtoin global workforce,
their gender status,33% of global senior
approximately 44%leaders (Directors
of the Company’s
in a streamlined,
management open-architecture
process for banks andplatform.
their corporate clients changes in value
other revenue andofrecords
other minority
gains and investments
losses related in to COMPETITION or above)
global and 47%
workforce, 33%of global newsenior
of global hires, leaders
were women.
(Directors
in a streamlined, open-architecture platform. nonoperating
changes in value income (expense).
of other minority investments in COMPETITION Additionally,
or above) andas of January
47% of global1, new
2024, of the
hires, Company’s
were women. US
BlackRock offers a number of wealth management BlackRock competes with investment management firms,
nonoperating income (expense). employees
Additionally, who self-identified
as of January 1, 2024,their ofrace/ethnicity
the Company’s status,
US
technology tools offering
BlackRock offers a number personalized digital advice,
of wealth management mutual
BlackRockfund complexes,
competes withinsurance
investment companies,
management banks,
firms,
portfolio
technology construction
tools offeringcapabilities
personalized and risk analytics
digital advice,for brokerage
mutual fund firms, financialinsurance
complexes, technology providers banks,
companies, and other approximately
employees who8% of employees,
self-identified 4%race/ethnicity
their of senior leaders and
status,
SECURITIES LENDING
retail distributors.
portfolio construction These tools include
capabilities andAladdin Wealth,
risk analytics for financial
brokerageinstitutions that offer
firms, financial products
technology that areand
providers similar
otherto, 10% of new hires
approximately 8%identified as Black
of employees, 4% or of African American,
senior leaders and
SECURITIES LENDING
which provides wealth
retail distributors. These management
tools includefirms and Wealth,
Aladdin their Securities lending is managed by a dedicated team, or alternatives
financial to, those
institutions thatoffered by BlackRock.
offer products In order
that are toto,
similar 8%
10%ofofemployees, 5% of senior
new hires identified leaders
as Black and 16%
or African of new
American,
financial professionals
which provides with institutional-quality
wealth management firms and their business supported by quantitative
Securities lending is managedanalysis, proprietaryteam,
by a dedicated technology grow its business,
or alternatives BlackRock
to, those offeredmust be able to compete
by BlackRock. In order to hires
8% ofidentified
employees, as 5%
Latinx, and 28%
of senior of employees,
leaders and 16% of 21%
newof
management, portfolio with
financial professionals construction, modeling and
institutional-quality risk
business and disciplined
supported risk management.
by quantitative analysis,BlackRock
proprietary receives both
technology effectively for AUM.
grow its business, Key competitive
BlackRock must be factors
able toinclude
compete senior leaders and
hires identified 30% ofand
as Latinx, new28% hiresofidentified
employees, as 21%
Asian.of
analytics
management, capabilities.
portfolio construction, modeling and risk cash (primarily for
and disciplined riskUS domiciled portfolios)
management. BlackRock and noncash
receives both investment
effectively for performance track records,
AUM. Key competitive the efficient
factors include Further, of the and
senior leaders Company’s
30% of approximately
new hires identified 19,800 as Asian.
analytics capabilities. collateral underfor
cash (primarily securities lending
US domiciled arrangements.
portfolios) The cash
and noncash delivery
investmentof beta for index products,
performance investment
track records, style and
the efficient employees as of
Further, of the Decemberapproximately
Company’s 31, 2023, 46%19,800 were based in
At year-end, BlackRock technology services clients management
collateral under team investslending
securities the cash received as collateral
arrangements. The cash discipline,
delivery of price, client
beta for indexservice and brand
products, namestyle
investment recognition.
and the Americas,
employees as 31% were based
of December in EMEA
31, 2023, 46% and 23%
were werein
based
included
At year-end,banks, insurance
BlackRock companies,
technology official
services institutions,
clients for securities on
management teamloan in other
invests theportfolios.
cash receivedFees asforcollateral
securities Historically, the Company
discipline, price, has and
client service competed
brand principally on the
name recognition. based in Asia-Pacific
the Americas, 31% were regions.
based in EMEA and 23% were
pension
includedfunds,
banks,asset managers,
insurance asset servicers,
companies, retail
official institutions, lending for USon
for securities domiciled portfolios
loan in other can be
portfolios. structured
Fees as a
for securities basis of its long-term
Historically, the Company investment performance
has competed trackon the
principally based in Asia-Pacific regions.
distributors
pension funds, andasset
othermanagers,
investors across North America,
asset servicers, retail share
lendingoffor
earnings, or as a portfolios
US domiciled management can fee based on aas a
be structured record,
basis ofits
itsinvestment process, its performance
long-term investment risk management trackand Board Oversight of Human Capital
South America,
distributors andEurope, the Middle
other investors East,
across Asia,America,
North Africa and percentage of the value
share of earnings, or as aofmanagement
the cash collateral or both.
fee based on aThe analytic capabilities
record, its investment and the quality
process, of management
its risk its client service.
and Managem ent
Board Oversight of Human Capital
Australia.
South America, Europe, the Middle East, Asia, Africa and value of the of
percentage securities
the value onofloan and the
the cash revenue
collateral orearned are
both. The Managem
analytic capabilities and the quality of its client service. BlackRock’sent
Board of Directors (the “Board”) plays an
Australia. captured
value of thein the corresponding
securities asset
on loan and the class beingearned
revenue managed.
are
Technology services revenue of $1.5 billion was up 9% important
BlackRock’s role in the
Board ofoversight
Directors of human
(the capital
“Board”) plays an
The valuein
captured ofthe
thecorresponding
collateral is notasset
included
classinbeing
AUM.managed. HUMAN CAPITAL
year-over-year,
Technology services and annual
revenue contract
of $1.5 value
billion(“ACV”)
was up 9% management
important roleand devotes
in the one Board
oversight meeting
of human annually to
capital
The value of the collateral is not included in AUM. HUMAN CAPITAL
increased 10% and
year-over-year, year-over-year.
annual contract ACV growth was driven by
value (“ACV”) Outstanding loan balances ended the year at With approximately 19,800 employees in more than an in-depth review
management of BlackRock’s
and devotes one Boardculture, talent
meeting annually to
strong net10%
increased salesyear-over-year.
of Aladdin in 2023, ACV withgrowthoverwashalf of new
driven by approximately
Outstanding loan $359 billion, ended
balances up from $355
the yearbillion
at at 30 countries,
With as of December
approximately 31, 2023,in
19,800 employees BlackRock
more than development, retention
an in-depth review and recruiting
of BlackRock’s initiatives,
culture, talent DEI
client
strongmandates
net sales of spanning
Aladdinmultiple
in 2023, Aladdin
with over products.
half of new year-end 2022.$359
approximately Morebillion,
demand upfor
fromgeneral
$355 collateral
billion at provides a broad
30 countries, range
as of of investment
December 31, 2023,management
BlackRock and strategy, leadership
development, andand
retention succession
recruitingplanning andDEI
initiatives,
Aladdin assignments
client mandates are typically
spanning multiplelong-term contracts
Aladdin products. securities resulted
year-end 2022. More in slightly
demandhigher balances
for general year over
collateral technology services
provides a broad to institutional
range of investmentand retail clientsand
management in employee feedback. and
strategy, leadership Moreover, the Board’s
succession planningManagement
and
that provide
Aladdin recurringare
assignments revenue.
typicallyAt the end of any
long-term period,
contracts year. Intrinsic
securities lending
resulted spreadshigher
in slightly increased and cash
balances year over more than 100
technology countries
services across theand
to institutional globe. As clients
retail an assetin Development and Compensation
employee feedback. Moreover, theCommittee periodically
Board’s Management
BlackRock
that provide generally
recurring has recurring
revenue. revenue
At the end ofcontracts
any period, in reinvestment
year. Intrinsic spreads remained
lending spreads flat as cash
increased andyields
cash were manager,
more thanBlackRock’s long-term
100 countries success
across the globe.depends on its
As an asset reviews effortsand
Development andCompensation
developmentsCommittee
related to the firm’s
periodically
place for a large
BlackRock portion
generally hasof total annual
recurring revenuerevenue.
contracts in stable year over
reinvestment year. remained flat as cash yields were
spreads people
manager,and how it manages
BlackRock’s its workforce.
long-term success depends on its human
reviews capital
efforts management strategy.
and developments related to the firm’s
place for a large portion of total annual revenue. stable year over year. people and how it manages its workforce. human capital management strategy.
Succession planning for BlackRock’s Chief Executive BlackRock also offers a wide range of benefits that it REGULATION November 2022, the SEC proposed amendments to rules
Officer and other
Succession senior
planning forexecutives
BlackRock’s is Chief
a key part of the
Executive regularly
BlackRock reviews in accordance
also offers a wide range with
ofmarket
benefits practices
that it and REGULATION governing
November OEF 2022, liquidity
the SECrisk management
proposed amendmentsand swing
to rules
Board’s annual
Officer and review
other seniorofexecutives
human capital management
is a key part of the the local requirements
regularly of its offices,
reviews in accordance withincluding, where and
market practices Virtually all aspects of BlackRock’s business are subject to pricing.
governing TheOEFEuropean
liquidityUnion (“EU”) also proposed
risk management and swingreforms
issues.
Board’sAs part of
annual this review,
review of humanthe capital
Board focuses on
management applicable, retirement savings
the local requirements plans,including,
of its offices, a Flexiblewhere
Time Off various
Virtuallylaws and regulations
all aspects of BlackRock’saround the world,
business aresome
subjectof to to increase
pricing. Thethe availability
European Unionof liquidity
(“EU”) alsomanagement tools
proposed reforms
whether
issues. AsBlackRock
part of thishas the right
review, peoplefocuses
the Board in placeon
to (“FTO”) policy
applicable, and flexible
retirement working
savings arrangements,
plans, a Flexible Time parental
Off which
variousarelawssummarized
and regulations below.around
These laws and regulations
the world, some of to OEFs (including
increase MMFs),of
the availability enhance
liquidityreporting
management on the use
tools
execute
whether the Company’s
BlackRock long-term
has the strategic
right people plans,
in place toand on leave and
(“FTO”) family
policy andforming
flexiblebenefits,
working such as fertility parental
arrangements, benefits, are primarily
which intended to
are summarized protect
below. investment
These laws andadvisory
regulations of
to liquidity management
OEFs (including MMFs), tools by OEFs
enhance to national
reporting on the use
BlackRock’s ability to identify,
execute the Company’s attract,
long-term develop,
strategic promote
plans, and on adoption
leave andand surrogacy
family formingassistance,
benefits, suchandas backup elder
fertility and
benefits, clients, investors
are primarily in registered
intended to protect and unregistered
investment advisory regulators
of liquidity and allow suchtools
management regulators
by OEFs to to
require OEF
national
and retain future
BlackRock’s senior
ability executives.
to identify, Andevelop,
attract, important element
promote childcare benefits.
adoption and The Company
surrogacy assistance,provides comprehensive
and backup elder and investment companies,
clients, investors and trust
in registered andand other fiduciary
unregistered managers
regulators toand activate liquidity
allow such management
regulators tools
to require OEFin
of
andthe succession
retain planning
future senior across the
executives. Anorganization is a
important element healthcare and mental-health
childcare benefits. The Company benefits
providesto eligible
comprehensive clients of BlackRock
investment companies, Institutional
and trust Trust
and otherCompany,
fiduciaryN.A. extreme
managers market conditions.
to activate Meanwhile,
liquidity management the UK proposed
tools in
commitment to building
of the succession planningleadership
across thefrom within.
organization is a employees,
healthcare andincluding medical, benefits
mental-health dental and vision coverage,
to eligible (“BTC”).
clients ofUnder
BlackRockthese Institutional
laws and regulations,
Trust Company,agencies N.A.that introducing
extreme market liquidity facilities
conditions. to certain the
Meanwhile, asset
UKowners,
proposed
commitment to building leadership from within. health savings
employees, and spending
including medical,accounts,
dental and counseling
vision coverage, regulate investment
(“BTC”). Under these advisers,
laws and investment
regulations,funds agenciesand that
trust which could liquidity
introducing result in facilities
regulatory to burdens on asset
certain asset owners,
services, an employee
health savings assistance
and spending program
accounts, and access to
counseling banks
regulateand other individuals
investment advisers, and entities have
investment fundsbroad
and trust managers.
which couldIfresult
any ofinthese regulatory
regulatory or policy
burdens actions
on asset
Employee Engagement
telemedicine services, assistance
services, an employee where available.
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communications; (3) the sponsorship of employee The Company
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prioritizes protecting thepolicies
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FollowingMMF Reforms
the market events of March 2020, US, UK and
harassment
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employee throughout
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and their EU authorities
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of March 2020,regulatory
US, UK and
actionable feedback for
conducts throughout theitsyear,
teams and for
provide thethe Company
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with BlackRock
employment is opportunity
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overtime a safe and healthy
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its teamsuses and ongoing lifecycle as
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SEC adopted of
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uses ongoing the
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work environment environmental
for its workforce. anditoccupational
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to meet or exceed and local
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mandatory a consultation in December
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UK released a change regulatory
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Recruiting, Training and Development
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BlackRock recognizes and
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employees
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material
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implement similarchanges
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to give backbelieves
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communities.
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employee-led
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GLOBAL REGULATORY REFORM and Sus
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and International national regulators’
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greenhouseby investment
gas companies
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its compensation
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BlackRock’s
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motivate, and retain
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align
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employee incentives
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sector haveand reinforced
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on ESG emissions
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Company has a strong
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asset managers
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taxonomy countries
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developments, the tax business
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cases produce trading rules, and
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inconsistencies in global (“RICs”),
the use of including
derivativesmutual funds (other
by registered than MMFs),
investment ETFs
companies
disclosures
environmentally relating to ESG characteristics
sustainable activities and makeof funds and
detailed continue
countriesto inchange, and any such
which BlackRock doeschanges
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rules, and increase BlackRock’s and closed-end
(“RICs”), including funds,
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portfolios.
disclosuresFurther
relating regulations include the Corporate
to ESG characteristics of funds and its tax liabilities.
continue to change, The and
Company
any such is continuing
changes could to monitor
increase operational and legal risks. companies.
and closed-end RICsfunds,
were required
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implement and comply
development
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regulations which
include thewill require
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its tax liabilities. The Companyand evaluate the potential
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were required rule, among
implement and other
comply
enhanced
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things,
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rule beginning amount
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among other
issuers,
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sustainability reporting for beginning
EU-based in 2024
corporate impact of the Pillar Two Framework on future periods. US REGULATORY REFORM
The application of tax regulations involves numerous Antitrust Rules and Guidance transactions
things, imposes a RIC canon
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into, eliminates the assetnew
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group reached
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companies agreement
from 2028. Inon In 2023, theRules
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introduces
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EU reachedin itsprovisional
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agreement Antitrust
In 2023, the Division
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the
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if adopted and global
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rulemaking with amendments
taxable
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certain RICs’ usage of
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provide transition of their
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Financial Conduct
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1976 the FTC
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rules and Conduct
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may adversely condition.
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such transactions, and impact transacts.
the liquidity in the SBS
classification
sustainability system for funds
regulations, and enhanced
including a sustainable disclosure
product suffer
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FTC and DOJ
expenses andalso
delayjointly issued new
transactions. merger guidelines,
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requirements,
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funds andtoenhanced
apply on a staggered
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also jointly issued ofnew
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basis from Julywhich
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expectedHis Majesty’s
to apply Treasury
on a staggered Regulation of Swaps and Derivatives its
whichservices
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impact thestrategic
abilityinvestments
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to expand SEC Proposed Rules on
(“HMT”)
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rules andFund Advisers
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providers under regulation
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bringandESGwillrating
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enhance regulation
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SEC adopted newfund
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regulation by the FCA andsustainable
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included amendments
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regulation which could
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BlackRock andandthe
November
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as SIFIs FSOC
the USfinalized
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Act. In to, among other
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rules requiring quarterly
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advisers
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Japan with
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various globalproducts
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potential
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with addressing and provide
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types of preferential of alland
terms types of
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codes Kong considering
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build and implement newenhanced
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capital requirements and operational complexity
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on or through the phone or
registered
BlackRock’s businesses may be directly or indirectly direct supervision by the Federal Reserve. products.
operational complexity for BlackRock’s alternatives
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In October 2023, the US DOL proposed a new regulation
authorities.
modificationLegislation
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byUSUSfederal and tax
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standards, requiringmargin for bilateral
the posting and redefining
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proposedadvice fiduciary”
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SEC re-proposed A TS to Regulation
amendments
level has been
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In 2023, proposed rules wouldamendments
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to Regulation
transaction taxpreviously
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stocks, bonds andaafinancial
to enact broad range and/or over-the-counter
swap transactions transactions
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under ERISAexemptions applicable toto
as well as amendments investment advice
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ATS. The that could rules
proposed fall within
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of financial instruments
transaction tax (“FTT”) onand derivative
stocks, bondstransactions. In the
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transactionIfexemptions
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Compliance and Integrity to systems involving US asset management industry and registered investment boundary between investment advice and financial such data on its global platform. In addition, a number of
government securities
Compliance and trading.
Integrity If enacted
to systems as proposed,
involving US companies. For example,
asset management theand
industry SECregistered
adopted rules requiring
investment guidance; and (7) independent
boundary between review and
investment advice of the UK
financial regulators in China
such data on have
its global jurisdiction
platform. over BlackRock’s
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these rules may
government increase
securities compliance
trading. costs
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proposed, certain funds
companies. toexample,
For provide tailored
the SECfund shareholder
adopted reports,
rules requiring investment research
guidance; and landscape.review of the UK
(7) independent business
regulatorsoperations, increasing
in China have operational
jurisdiction and
over BlackRock’s
these rules may increase compliance costs for BlackRock. adopted final amendments
certain funds to thefund
to provide tailored ruleshareholder
governing fundreports, investment research landscape. regulatory engagement
business operations, complexity.
increasing These risks
operational andmay be
SEC US Treasury Cleari ng Mandate names,
adoptedexpanding the scopetoofthe
final amendments therule
rulegoverning
to fund names
fund Ov er s eas Fund Regim e (“OFR”) further heightened
regulatory engagementby additional scrutiny
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SEC US Treasury Cleari ng Mandate including growth, value,
names, expanding ESG of
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similar
ruleterms,
to fundand
names Ov erthe
s eas Fund Regim regulators of certainbysectors,
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additional as technology and
by Chinese
In December 2023, the SEC adopted rules mandating proposed
including rules governing
growth, outsourcing
value, ESG or similar of certain
terms, andfunctions OFR, simplified regime ethrough
(“OFR”)
which non-UK funds other industries
regulators that sectors,
of certain might besuch
deemed to be of national
as technology and
central clearing
In December of US
2023, theTreasury repurchases
SEC adopted and certain
rules mandating by investment
proposed rulesadvisers to service
governing providers.
outsourcing of certain functions can
OFR,register with theregime
the simplified FCA tothrough
be marketed
whichtonon-UK
UK retailfunds importance.
other industries that might be deemed to be of national
other Treasury
central clearingtransactions.
of US TreasuryTherepurchases
rules requireandmany
certain by investment advisers to service providers. investors, was
can register enacted
with the FCAin to
February 2022 and
be marketed to UKis retail
expected importance.
market participants,
other Treasury including
transactions. a large
The rules number of
require many to be implemented
investors, through
was enacted 2024. OFR
in February 2022 requires consumer
and is expected
BlackRock funds andincluding
accounts,ato clear Treasury protection regimes through
in EU countries where BlackRock EXISTING US REGULATION – OVERVIEW
market participants, large number of INTERNATIONAL REGULATORY REFORM to be implemented 2024. OFR requires consumer
repurchase transactions
BlackRock funds and potentially
and accounts, certain cash
to clear Treasury funds are domiciled
protection regimes intoEUbecountries
found equivalent to the UK’s
where BlackRock EXISTING UScertain
BlackRock and REGULATION – OVERVIEW
of its US subsidiaries are currently
INTERNATIONAL REGULATORY REFORM
Treasury
repurchasesecurities transactions
transactions throughcertain
and potentially a clearing
cash Enhanced Regulat or y Scr ut iny of Technology regime in order
funds are to market
domiciled to be such
foundfunds in the to
equivalent UK.
the UK’s subject
BlackRock to extensive
and certain regulation,
of its US primarily
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arefederal
currently
agency
Treasuryregistered
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transactions through could increase
a clearing Service
Enhanced Providers
Regulat toor yFinanc ial Services
Scr ut iny Firms
of Technology regime in order to market such funds in the UK. level,
subjectbytothe SEC, theregulation,
extensive DOL, the Federal
primarily Reserve, the Office
at the federal
transaction costs for
agency registered withBlackRock’s clients.
the SEC, which could increase Service Providers to Financ ial Services Firms
The EU’s Digital Operational Resilience Act (“DORA”), Conduct Regulation of theby
level, Comptroller
the SEC, the of DOL,
the Currency
the Federal(“OCC”), the Financial
Reserve, the Office
transaction costs for BlackRock’s clients. which focuses
The EU’s onOperational
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Resilience and users
Act (“DORA”), Conduct Regulation Industry RegulatoryofAuthority
of the Comptroller the Currency (“FINRA”),
(“OCC”), thethe
National
Financial
The FCA continues to focus on conduct regulation, Futures
IndustryAssociation (“NFA”), the
Regulatory Authority FTC, thethe
(“FINRA”), Department
National of
Proposed Rules on Equity Market Structure of technology
which focusesand data services,
on direct regulationwillofbecome
providersapplicable
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The FCA continues to focus onof the Consumer
conduct Duty by all
regulation,
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Futures the CFTC and
Association other federal
(“NFA”), the FTC, government
the Department agenciesof
In 2023, the Rules on Equity
SEC proposed equityMarket Structure
market structure of technology and data services, will become applicable asset management
including firms, including
the implementation of theBlackRock’s
Consumer Duty UK by all and regulatory
Justice, the CFTC bodies.
and other federal government agencies
reforms things:
beginning(1) introduce
in Januaryadditional
2025. DORA governance,
will, among risk
other
In 2023,that would
the SEC significantly
proposed equitychange
markethow national
structure subsidiaries. The Consumer
asset management Duty rules
firms, including require firms
BlackRock’s UK to act and regulatory bodies.
market management, incident
things: (1) introduce reporting,
additional resilience testing
governance, risk and
reformssystem (“NMS”)
that would stock orders
significantly are priced,
change executed
how national to deliver good
subsidiaries. outcomes
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retailrules
customers
requireinfirms
theirto act Certain of BlackRock’s US subsidiaries are also subject to
and reported. information
management, sharing requirements
incident to severaltesting
reporting, resilience of and
market systemThe reforms
(“NMS”) include:
stock orders(1) a requirement
are priced, executedfor manufacture
to deliver goodand distribution
outcomes of products
for retail customersandinservices,
their in various
Certain anti-terrorist
of BlackRock’s financing, privacy,are
US subsidiaries anti-money
also subject to
certain retail orders to be subject BlackRock’s European
information sharing entities andto
requirements certain
severalAladdin
of clients;
and reported. The reforms include:to(1)
order-by-order
a requirement for respect of price
manufacture andand value, consumer
distribution understanding
of products and services,andin laundering and economic
various anti-terrorist sanctions
financing, lawsanti-money
privacy, and regulations
competition, and (2) potentially
BlackRock’s subject
European Aladdin
entities and to additional
certain Aladdinoversight.
clients;
certain retail (2) an SEC-level
orders besttoexecution
to be subject rule and
order-by-order consumer support.
respect of price andAny failure
value, to meetunderstanding
consumer the FCA’s and established
laundering and by various
economic agencies.
sanctionsIn addition,
laws andthe regulations
(3) an adjustment In
andparallel with DORA,
(2) potentially the UK
subject proposed
Aladdin a new Critical
to additional oversight.
competition, (2) antoSEC-level
the tick sizes
best at which NMS
execution rulestocks
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consumer support. could expose
Any failure to meetBlackRock
the FCA’s to Investment
established Advisers
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agencies. “Advisers
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In parallel regime to regulate
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the UK proposed parties
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expectationsandcould
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exposereputational
BlackRock risk.to imposes
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Act of 1940on registered
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collective impact of the rules may adversely affectthe
market designated by HMTtoasregulate
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to the third
financial sector, and
parties
can be quoted or traded. If enacted as proposed, regulatory sanctions and increased reputational risk. advisers
imposes suchnumerousas certain BlackRock
obligations subsidiaries,
on registered including
investment
efficiency and execution costs, which would affect
result market
in UK regulators
designated by have
HMTissued a consultation
as “critical” on proposed
to the financial sector, and
collective impact of the rules may adversely UK Stewardship Code Review record-keeping,
advisers such asoperational
certain BlackRockand marketing
subsidiaries,requirements,
including
negative requirements
UK regulators for “critical”
have issued third parties, with
a consultation on further
proposed
efficiencyeffects for BlackRock’s
and execution business
costs, which and
would clients.
result in UK Stewardship Code Review disclosure
record-keeping,obligations and prohibitions
operational and marketing on fraudulent
requirements,
consultations
requirements for expected in 2024.
“critical” third parties, with further The UK Financial Reporting Council has announced a
negative effects for BlackRock’s business and clients. activities.
disclosureState level regulation
obligations throughon
and prohibitions attorneys
fraudulent general,
consultations expected in 2024. planned review ofReporting
The UK Financial the UK Stewardship Code
Council has in 2024 a
announced to
SEC Rules on Short Sales and Reporting of insurance commissioners
activities. State level regulation and other
through state level agencies
attorneys general,
Retail Investment Strategy consider potential
planned review revisions
of the to addressCode
UK Stewardship stakeholder
in 2024 to
Securities
SEC Rules Loans
on Short Sales and Reporting of also applies
insurance to certain BlackRock
commissioners and other activities.
state level agencies
Retail concerns.
consider potential revisions to address stakeholder
Securities Loans
In 2023, the SEC adopted a new rule requiring certain In 2023,Investment Strategy (“EC”) adopted a
the European Commission also applies to certain BlackRock activities.
concerns. The Investment Company Act of 1940 (the “Investment
institutional managers to report shortrequiring
positionscertain
and Retail Investment
In 2023, Strategy
the European package with
Commission wide-reaching
(“EC”) adopted a
In 2023, the SEC adopted a new rule Reform of Investment Markets Company Act”) imposes
The Investment Company stringent
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(the “Investment
activity to themanagers
SEC for publication on an aggregate amendments intended
Retail Investment to enhance
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with wide-reaching
institutional to report short positions andbasis, Reform compliance,
Company Act”) operational,
imposes stringentdisclosure and related
governance,
which
activitycould
to thepotentially impact investment
SEC for publication strategies
on an aggregate and
basis,
investors.
amendments If enacted as to
intended proposed,
enhancethese changes
protections formay
retail BlackRockof
is Investment Markets
subject to numerous regulatory reform
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compliance,on registered disclosure
operational, investmentand companies
related and their
result impact BlackRock’s
investors. If enactedoperations in European
as proposed, markets,
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is subject the Company’s
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investment companies and their
BlackRock. The SEC also adopted a new including product development,
impact BlackRock’s operations inclient servicing
European and
markets, investment services
initiatives that globally.
may affect the In Europe, the
Company’s Marketsofin
provision
result in greater operational burdens andrule requiring
cost for BlackRock
investmentsubsidiaries
advisers andand affiliates. such
distributors, The SEC is
as certain
certain persons to report information onrule
securities loan distribution models.
including product development, client servicing and Financial
investment Instruments Directive
services globally. (“MiFID”)
In Europe, thegoverning
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BlackRock. The SEC also adopted a new requiring authorized to institute proceedings
BlackRock subsidiaries and affiliates. and The impose
SEC issanctions
transactions
certain persons to atoregistered national securities
report information association
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accompanied by anregulation,
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certain secondary generally apply “MiFID
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II”). The the EU.
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2023 (“FSMA Investment
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certain state
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requirements generally were substantive,
apply consistentlymaterially
across the EU.
SEC Standard Settlement Rules for financial
2023”) services
reflects regulation,
significant including
changes changes
to the UK that:
framework securities
Investment laws and regulations.
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likely the European
develop a newmarket
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designatedregime forregime
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financial ability to operate in European
increase BlackRock’s operational burdens and costs. the European market structuremarkets.
and impactThe BlackRock’s
broad nature accounts
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investment activities Exchange
for clientAct
government and FCA
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legislation setting out specific changes impacting the UK Similar reforms haveservicing
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development, client and distribution models. organizations,
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or communicating information,
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information, requirements (e.g., short and
market manipulation salealimits,
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such technologies for PDA-like
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reforms announced in July 2023 also Regulatory Environm ent in China limitations and reporting
technical requirements obligations)
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limits, volume
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interest and,ofwhere
interest. If in China are subject to a
adopted aseliminate
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build on Potential
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framework managementby the regulations could result
regulation policies. in fines
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operations including
China areansubject
evolving to a
range of as
forward-looking sector include:
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impacts to the asset of the
management restrictions
regulations on couldBlackRock’s
result in finesactivities and damage
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as
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evolving
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sector include: and insurance
repeal based investment
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restrictions Furthermore,
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Dodd-Frank Act requires
and damage to itsone
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(“PRIIPs”) Regulation;
packaged retail (2) review
and insurance of theinvestment
based UK’s greenproducts
finance compliance of BlackRock’s
reputation. subsidiaries,
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Dodd-Frank Actasrequires
a municipalone
and impose significant operational burdens and costs. data transferrisk and costs,These
regulations. limit the Company’s
factors ability to
may increase
strategy,
(“PRIIPs”)including
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of the UK’s data
green finance source and execute advisor (as thatsubsidiaries,
of BlackRock’s term is defined BTC,intothe Exchange
register as a Act) with
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costs, opportunities
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ability
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advisor andthatMunicipal Securities
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tment Advisers for US Registered Funds and source execute losses on its investments.
new investment Restrictions
opportunities and
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providers; (3) Certification Regime;through
of governance (4) repeal
theofSenior
EU on transfers of certain types (“MSRB”).
the SEC and BTC’s registration
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investments. the
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Managers and on the European Regime;
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(4) repeal of EUFund; Company’s subjects
(“MSRB”).BTC BTC’sto additional
registration regulation
as a municipalby the advisor
SEC and
on transfersChinese entities
of certain types toof offshore
onshore entities also may
data of the
reviews
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has recently engagedstructure governing
in various the
initiatives and (5) market infrastructure
legislation on the European reforms; (6) reassessment
Long-Term of the
Investment Fund; limit BlackRock’s ability to aggregate, report andalso
monitor MSRB.
subjects BTC to additional regulation by the SEC and
Company’s Chinese entities to offshore entities may
reviews impacting regulatory structure governing the (5) market infrastructure reforms; (6) reassessment of the limit BlackRock’s ability to aggregate, report and monitor MSRB.
BlackRock manages a variety of private pools of capital, Accordingly, BTC is examined and supervised by the OCC BlackRock’s EU subsidiaries and branches must comply level of protection for the processing of personal data. The
including
BlackRockhedgemanages funds, funds of
a variety of private
hedge funds,
pools of private
capital, and is subject
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BTC banking
is examined andlaws and regulations
supervised by the OCC with the EU regulatory
BlackRock’s EU subsidiaries regime setbranches
and out in MiFID must II.comply EU’s adequacy
level of protectiondecision
for thewith respect to
processing of the UK, which
personal data. The
equity funds,
including hedge collateralized
funds, funds debt obligations,
of hedge funds,collateralized
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and is subject toOCC, such
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banking andand
regulations
regulations BlackRock’s UK-regulated
with the EU regulatory regimesubsidiaries
set out inmust MiFID comply
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EU’s adequacy decisionflow of personal
with respect to data
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UK, which
loan
equityobligations, real estatedebt
funds, collateralized funds, collective collateralized
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subsidiaries must the provision
comply withof the UK,the
allows willcontinued
be regularlyflowreviewed
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the EUif to
managed futuresreal
loan obligations, funds and funds,
estate hybridcollective
funds. Congress,
trust funds, of interest,capital
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adequacy, prevention
fiduciary of financial
activities, conflicts investment
the UK version services
of MiFIDandII, activities in the UK.the
which regulates MiFID II, andof
provision the UK
UK,diverges from itsreviewed
will be regularly current adequate
and may data protection
be revoked if
regulators,
managed futurestax authorities
funds and and others
hybrid continue
funds. to explore,
Congress, crime, including
of interest, money laundering.
self-dealing, BTC is also
and the prevention a member
of financial the UK equivalent
investment services of and
MiFID II, set out
activities detailed
in the UK. MiFID II, and laws.
the UKThe UK hasfrom
diverges developed its own
its current international
adequate data
data protection
on their own
regulators, taxand in response
authorities andtoothers
demands from to
continue theexplore, of the Federal
crime, including Reserve
moneySystem and isBTC
laundering. subject to a
is also various
member requirements
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of MiFID theII,organization
set out detailed and conduct of transfer
laws. Theagreement, which was
UK has developed implemented
its own in March
international data
investment
on their owncommunity
and in response and the to public,
demands increased
from the Federal Reserve
of the Federal regulations
Reserve System applicable to member
and is subject to various business
requirements of investment
governingfirms and regulated
the organization and markets.
conduct The
of 2022. In agreement,
transfer June 2023, whichthe EU-US Data Protection
was implemented in March
regulation
investmentrelated
community to private
and thepools of capital,
public, including
increased institutions,
Federal Reserve suchregulations
as regulations restricting
applicable transactions
to member legislation
business ofalso includesfirms
investment pre- and post-trade transparency
regulated markets. The Framework
2022. In June came into
2023, force,
the EU-USwhich allows
Data organizations to
Protection
changes
regulation with respect
related to investor
to private poolseligibility,
of capital, certain
including with affiliates.
institutions, Many
such as of these lawsrestricting
regulations and regulations are
transactions requirements
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includes pre-non-equity
and post-trade markets and
transparency self-certify
Framework theircamecompliance under allows
into force, which the framework for data
organizations to
limitations
changes with onrespect
trading to activities,
investorrecord-keeping
eligibility, certain and meant for the protection
with affiliates. Many of these of BTC and/or
laws BTC’s customers
and regulations are extensive
requirements transaction
for equity reporting requirements.
and non-equity markets Certain
and transfers
self-certifyfrom the
their EU, UK and
compliance Switzerland
under to the US.
the framework for data
reporting,
limitationstheon scope
trading ofactivities,
anti-fraud protections, safekeeping
record-keeping and rather
meant than BlackRock,
for the protection itsofaffiliates
BTC and/oror stockholders.
BTC’s customers BlackRock UK subsidiaries
extensive transaction reportingmustrequirements.
also comply with Certainthe UK GDPR andfrom
transfers UK GDPR,
the EU,as UK well
and asSwitzerland
other statutes and/or
to the US.
of client assets
reporting, the scopeand aofvariety of other
anti-fraud matters. BlackRock
protections, safekeeping rather than BlackRock, its affiliates or stockholders. regulation
BlackRock which implements
UK subsidiaries mustthealso
Consolidated
comply with Life the UK regulations
GDPR and UK concerning
GDPR, as privacy and data
well as other protection,
statutes and/or
may be materially
of client assets and and adversely
a variety affected
of other by new
matters. BlackRock EXISTING INTERNATIONAL REGULATION – Directive
regulationand whichInsurance
implements Distribution Directive. In
the Consolidated Lifeaddition, increase
regulationscompliance
concerning obligations,
privacy and affect
dataBlackRock’s
protection,
legislation, rulemaking
may be materially or changes
and adversely in the interpretation
affected by new or OVERVIEW
EXISTING INTERNATIONAL REGULATION – relevant
Directiveentities must comply
and Insurance with revised
Distribution obligations
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increase compliance retention and
obligations, transfer
affect of personal
BlackRock’s
enforcement of existingor
legislation, rulemaking rules
changesand regulations imposed by
in the interpretation or OVERVIEW capital
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entities must for certain
comply investment
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obligations on data and reporting
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transferbreaches, and
of personal
various regulators in thisrules
area.and regulations imposed by BlackRock’s international operations are subject to the of the IFPR. Thesefor include requirements to ensure capital provide
data andfor increased
reporting of penalties
personal datafor non-compliance.
security breaches, and
enforcement of existing capital resources certain investment firms arising out
laws and regulations
BlackRock’s of a number
international operationsof international
are subject to the adequacy,
various regulators in this area. of the IFPR.asThese
well as matters
include of governance
requirements and capital
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Certain BlackRock subsidiaries are subject to ERISA, and jurisdictions, as well as
laws and regulations of oversight
a numberby of numerous
international regulatory remuneration. Relevant BlackRock entities must BlackRock also maintains two offices in the Middle East,
adequacy, as well as matters of governance and also
to regulations
Certain BlackRock promulgated
subsidiaries thereunder
are subjectby the DOL, and
to ERISA, agencies and as
jurisdictions, bodies in oversight
well as those jurisdictions.
by numerous In some
regulatory comply with the requirements of the UCITSmust Directive one in Dubai,
BlackRock which
also is regulated
maintains by the
two offices inDubai Financial
the Middle East,
remuneration. Relevant BlackRock entities also and
insofar as theypromulgated
to regulations act as a “fiduciary”thereunder underby ERISA
the DOL,with instances,
agencies and these operations
bodies in thoseare also affected
jurisdictions. Inby US laws
some the AIFMD, Services Authority,
one in Dubai, whichand one in Riyadh,
is regulated by theSaudi
DubaiArabia, which
Financial
comply withas theimplemented
requirements in of
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UCITS EU Member
Directive and
respect to they
insofar as benefit actplanas a clients
“fiduciary” thatunder
are subject
ERISAtowith ERISA. and regulations
instances, thesethat have extra-territorial
operations are also affectedapplication.
by US laws States and in is regulated
Services by the Saudi
Authority, and one Capital Markets
in Riyadh, SaudiAuthority. Both
Arabia, which
the AIFMD, asthe UK, which impose
implemented obligations
in the relevant on the
EU Member
ERISA
respectand applicable
to benefit planprovisions
clients that ofare
thesubject
InternaltoRevenue
ERISA. and regulations that have extra-territorial application. authorization
States and in the andUK, capital,
which conduct
imposeof business, on the
obligations offices are authorized
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Capital certain
Marketsinvestment
Authority. Both
Code Below is a summary of certain international regulatory services and support BlackRock’s provision of investment
ERISAimpose certain duties
and applicable on persons
provisions who are Revenue
of the Internal fiduciaries organization,
authorization transparency
and capital, conduct and marketing of retail and
of business, offices are authorized to provide certain investment
under ERISA, certain
prohibitduties
certain standards to which BlackRock
Below is a summary is subject. It isregulatory
of certain international not meant to products andsupport
servicesBlackRock’s
in their countries of domicile. Other
Code impose ontransactions
persons whoinvolving ERISA
are fiduciaries alternative
organization, investment
transparency funds andrespectively
marketingthat are sold
of retail and in, services and provision of investment
plan be comprehensive
standards to whichas there areis
BlackRock parallel
subject.legal
It isand
not meant to countries across the Middle Eastern region are serviced on
underclients
ERISA,and impose
prohibit excisetransactions
certain taxes for violations
involving ofERISA
these or marketedinvestment
alternative to, the EU. fundsThe obligations
respectively introduced
that are sold in, products and services in their countries of domicile. Other
prohibitions, mandate certain regulatory arrangements
be comprehensive as there inare
force in many
parallel jurisdictions
legal and a cross-border basis.
plan clients and impose exciserequired
taxes forperiodic
violations reporting
of these through
or marketedthese to,regulations
the EU. Theand directives
obligations will affect certain
introduced countries across the Middle Eastern region are serviced on
and disclosures and require certain BlackRock where BlackRock’s
regulatory subsidiaries
arrangements in forceconduct
in many business.
jurisdictions
prohibitions, mandate certain required periodicentities
reporting to of BlackRock’s
through European operations.
these regulations and directives Compliance
will affect with the
certain a cross-border basis.
carry bonds insuring
and disclosures againstcertain
and require losses BlackRock
caused by fraud
entities or to where BlackRock’s subsidiaries conduct business.
Of note among the various other international regulations UCITS Directives
of BlackRock’s and the operations.
European AIFMD mayCompliance subject BlackRock with the to Regulation in the A s ia-Pacific Region
dishonesty.
carry bonds ERISA
insuring also imposes
against additional
losses causedcompliance,
by fraud or to
Of which BlackRock
note among is subject,
the various areinternational
other the extensiveregulations
and additional expenses
UCITS Directives andassociated
the AIFMDwith maydepositary oversightto
subject BlackRock Regulation in the A s ia-Pacific Region
reporting and operational requirements on compliance,
BlackRock that In Japan, a BlackRock subsidiary is subject to the
dishonesty. ERISA also imposes additional complex regulatory reporting
to which BlackRock is subject,requirements
are the extensivethat and and other organizational
additional expenses associated requirements. BlackRock’s
with depositary oversight
otherwise are not applicable to clients that Financial
In Japan, aInstruments and Exchange
BlackRock subsidiary Act (“FIEA”)
is subject to the and the
reporting and operational requirements on are not subject
BlackRock that necessitate the monitoring
complex regulatory reporting and reporting ofthat
requirements issuer EU-regulated subsidiaries
and other organizational are also subject
requirements. to the
BlackRock’s
to ERISA. are not applicable to clients that are not subject Act on Investment
Financial Instruments Trusts
and and Investment
Exchange Corporations.
Act (“FIEA”) and the
otherwise exposure
necessitatelevels (thresholds)and
the monitoring across the holdings
reporting of issuer of European
EU-regulated Market Infrastructure
subsidiaries are also Regulation
subject to (“EMIR”)
the (or These
Act on laws are administered
Investment Trusts andand enforcedCorporations.
Investment by the
to ERISA. managed funds(thresholds)
exposure levels and accounts and those
across of the Company.
the holdings of the UK version
European Market of EMIR transposed
Infrastructure into UK law
Regulation in
(“EMIR”) (or
BlackRock has seven subsidiaries that are registered as Japanese
These lawsFinancial Services Agency
are administered (“JFSA”),
and enforced which
by the
managed funds and accounts and those of the Company. accordance
the UK version with ofThe
EMIR European
transposed Union into(Withdrawal)
UK law in Act establishes standards
Japanese Financial for compliance,
Services including
Agency (“JFSA”), capital
which
commodity
BlackRock has pool operators
seven and/or that
subsidiaries commodity tradingas
are registered
European Regulation 2018 in the case
accordance with Theof BlackRock’s
European Union UK-regulated
(Withdrawal) Act adequacy
establishes and financialfor
standards soundness
compliance, requirements,
including capital
advisors
commodity with theoperators
pool CFTC andand/or are memberscommodity of the NFA. The
trading
European Regulation subsidiaries),
2018 in the case an EU regulation governing
of BlackRock’s UK-regulated derivatives, customer
adequacy protection
and financial requirements
soundnessand conduct of
requirements,
CFTC andwith
advisors NFAthe eachCFTC administer a comparable
and are members of theregulatory
NFA. The The FCA currently regulates certain BlackRock central counterparties
subsidiaries), and tradegoverning
an EU regulation repositories, which
derivatives, business
customerrules. The JFSA
protection is empowered
requirements to conduct
and conduct of
system
CFTC and covering
NFA each futures contracts
administer and variousregulatory
a comparable other subsidiaries in theregulates
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certain BlackRock for the requires (1) the centraland
central counterparties clearing
tradeof certain OTCwhich
repositories, derivatives; administrative
business rules.proceedings that can result
The JFSA is empowered in censure,
to conduct
financial instruments,
system covering futures including
contracts swaps as a result
and various other of the conduct of business
subsidiaries in the UK.regulation of the UK branch
It is also responsible for theof one of (2) the application
requires (1) the centralof risk-mitigation
clearing of certain techniques to
OTC derivatives; fines, cease and
administrative desist orders
proceedings or can
that the suspension
result in censure,or
Dodd-Frank Act, in which
financial instruments, certainswaps
including BlackRock clientsofmay
as a result the BlackRock’s US subsidiaries.
conduct of business regulation In of
addition,
the UK thebranchPrudential
of one of non-centrally
(2) the applicationcleared OTC derivativestechniques
of risk-mitigation (including to the revocation
fines, ceaseofand registrations
desist orders andorlicenses granted under
the suspension or the
invest. In addition,
Dodd-Frank Act, intwo which of BlackRock’s
certain BlackRock subsidiaries
clientsare may Regulation
BlackRock’sAuthority (“PRA”) regulates
US subsidiaries. In addition, onetheBlackRock
Prudential UK exchange
non-centrally of collateral
cleared OTC withderivatives
certain counterparties);
(including theand FIEA. This Japanese
revocation subsidiary
of registrations also holds
and licenses a license
granted for real
under the
registered with the two
invest. In addition, SECofasBlackRock’s
broker-dealers and are are
subsidiaries insurance
Regulationsubsidiary. Authorization
Authority (“PRA”) regulates by the
oneFCA and (where
BlackRock UK (3) the reporting
exchange of all derivative
of collateral with certain contracts to an ESMA
counterparties); and estate brokerage
FIEA. This Japanese activities
subsidiarywhich subjects
also holds a it license
to the for real
member-firms
registered with of the FINRA.
SEC as Each broker-dealer
broker-dealers and hasarea relevant)
insurancethe PRA is required
subsidiary. to conduct
Authorization by thecertain financial
FCA and (where registered or recognized
(3) the reporting derivatives
of all derivative trade repository
contracts to an ESMA (or a regulations set forth
estate brokerage in the which
activities Real Estate
subjects Brokerage
it to theAct.
membership
member-firms agreement
of FINRA. with EachFINRA that limits
broker-dealer has thea scope services-related
relevant) the PRAbusiness
is required in the UK under
to conduct the Financial
certain financial UK authorized
registered trade repository
or recognized in thetrade
derivatives caserepository
of the UK (or a regulations set forth in the Real Estate Brokerage Act.
of such broker-dealer’s
membership agreementpermitted with FINRA activities. One
that limits of scope
the the Services and Markets
services-related Act 2000
business in the(the “FSMA”).
UK under theThe FCA’s
Financial version of EMIR).
UK authorized trade repository in the case of the UK In Australia, BlackRock’s operating entity is principally
broker-dealers is also a permitted
of such broker-dealer’s member ofactivities.
the MSRB Oneandofisthe rules adopted
Services under the
and Markets ActFSMA
2000govern the majority
(the “FSMA”). of a
The FCA’s version of EMIR). regulated
In Australia,under the Corporations
BlackRock’s operatingAct 2001
entity (Cth) by the
is principally
subject to MSRB
broker-dealers is rules.
also a member of the MSRB and is firm’s capital and
rules adopted liquidity
under the FSMA resources
govern requirements,
the majority of senior
a The EU has seen an increase in Common Supervisory Australian Securities
regulated under and Investments
the Corporations Commission
Act 2001 (Cth) by the
subject to MSRB rules. management arrangements,
firm’s capital and conductrequirements,
liquidity resources of business senior Actions
The EU hasby ESMA
seen an to coordinate
increase in supervisory
Common Supervisoryaction by
BlackRock’s business activity in California that involves (“ASIC”),
Australianwhich includes
Securities andholding an Australian
Investments Commission financial
requirements, interaction withconduct
management arrangements, clients,ofand systems and
business national
Actions by EUESMAregulators, most notably
to coordinate in areas
supervisory suchby
action as services
(“ASIC”), license and operating
which includes holding registered
an Australian managedfinancial
the processing
BlackRock’s of personal
business activityinformation
in California is subject to the
that involves
controls, whereas
requirements, the ruleswith
interaction of the PRA focus
clients, solely on
and systems andthe product
national governance,
EU regulators, liquidity management
most notably in areas and
suchfund ascosts investment schemes.
services license ASIC is Australia’s
and operating registeredintegrated
managed
California Consumer
the processing Privacy
of personal Act (“CCPA”)
information and theto the
is subject
prudential requirements
controls, whereas the rules thatof apply
the PRAto BlackRock’s
focus solely on the and charges.
product BlackRock’s
governance, EU operations
liquidity management may be fund
and affected costs corporate,
investmentmarkets,
schemes. financial
ASIC is services
Australia’sand consumer credit
integrated
California Privacy
Consumer Rights Act (“CPRA”),
Privacy Act (“CCPA”) which
andprovide
the for
UK-based
prudentialinsurance
requirementssubsidiary.
that apply ThetoFCA supervises
BlackRock’s to
andthe extent this
charges. initiativeEU
BlackRock’s results in formal
operations may legislation
be affected or regulator.
corporate, markets, financial services and consumer credit
enhanced consumer
California Privacy protections
Rights Act (“CPRA”),for California residents.
which provide for
BlackRock’s UK-regulated
UK-based insurance subsidiaries
subsidiary. The FCA through
supervisesa action.
to the extent this initiative results in formal legislation or regulator.
The CCPA and
enhanced consumerCPRA impose
protections obligations on BlackRock
for California residents. for
combination of proactive engagement,
BlackRock’s UK-regulated event-driven
subsidiaries through a and action. In New Zealand, certain BlackRock subsidiaries are
the
Thehandling,
CCPA anddisclosure
CPRA impose and obligations
deletion of personal
on BlackRock for EU Member States, the UK and many other non-US
reactive supervision
combination and thematic
of proactive engagement, reviews in order toand
event-driven primarily regulated
In New Zealand, by the
certain Financialsubsidiaries
BlackRock Markets Authority are
information
the handling,for Californiaand
disclosure residents.
deletionInofaddition,
personalseveral jurisdictions
EU Member States, have adopted
the UK and statutes
many and/or
other regulations
non-US
monitor BlackRock’sand
reactive supervision compliance
thematicwith regulatory
reviews in order to (“FMA”).
primarilyThe FMA isby
regulated responsible
the Financial for overseeing
Markets Authorityand
other US states
information have proposed
for California or adopted
residents. similar
In addition, privacy
several concerning
jurisdictionsprivacy and data
have adopted protection
statutes and/orandregulations
requiring
requirements. Breaches
monitor BlackRock’s of the FCA’s
compliance withrules may result in a
regulatory enforcing
(“FMA”). The financial
FMA ismarkets
responsiblelegislation including
for overseeing andthe
laws.
other Any failurehave
US states by BlackRock
proposedto orcomply
adopted with the CCPA,
similar privacy notification of personal
concerning privacy and data security
protection breaches if certain
and requiring
wide range of disciplinary
requirements. Breaches ofactions
the FCA’s against
rules BlackRock’s
may result in a licensing
enforcingof firms tomarkets
financial provide legislation
certain financial
including products
the and
CPRA or similar
laws. Any failurestate privacy laws
by BlackRock may result
to comply with in
the fines,
CCPA, thresholds
notificationare met. For example,
of personal data security the EU adopted
breaches the
if certain
UK-regulated subsidiariesactions
wide range of disciplinary and/or against
its employees.
BlackRock’s services
licensinginofNewfirmsZealand andcertain
to provide administering
financial anti-money
products and
heightened
CPRA or similar regulatory scrutiny,
state privacy lawslitigation and/or
may result in fines, General
thresholds DataareProtection Regulation
met. For example, the(“GDPR”),
EU adopted which the
UK-regulated subsidiaries and/or its employees. laundering
services in Newand terrorism
Zealand and financing legislation,
administering amongst
anti-money
reputational harm.
heightened regulatory scrutiny, litigation and/or In addition, BlackRock has regulated entities in France, became effective
General Data in 2018,
Protection and the UK
Regulation transposed
(“GDPR”), which the other functions.
laundering and terrorism financing legislation, amongst
reputational harm. Germany, Ireland,
In addition, Jersey,
BlackRock hasLuxembourg, the Netherlands
regulated entities in France, GDPR
became into national
effective in law
2018, (“UKand GDPR”),
the UKwhich became
transposed the other functions.
US Banking Regulation and Switzerland.
Germany, Ireland,Each of these
Jersey, entities is
Luxembourg, therequired to
Netherlands effective
GDPR into innational
2021. Inlaw June (“UK2021, the EC
GDPR”), published
which became a new The activities of certain BlackRock subsidiaries in Hong
US
OneBanking Regulation
of BlackRock’s subsidiaries, BTC, is organized as a comply with regulatory
and Switzerland. Each of rules
thesein entities
the country in which
is required toit has set of standard
effective in 2021. contractual
In June 2021, clauses,
the EC which only apply
published a new to Kong are subject
The activities to the Securities
of certain BlackRockand Futures Ordinance
subsidiaries in Hong
nationally-chartered limited purpose been
complyestablished, including
with regulatory rulesthe branches
in the countryofinthe which it has the transfer
set of standardof personal
contractual dataclauses,
outsidewhichof theonly
EU to a to
apply (“SFO”),
Kong arewhich
subject governs
to the the securities
Securities andand futures
Futures markets
Ordinance
One of BlackRock’s subsidiaries, BTC,trust company
is organized asthat
a
does not accept deposits or make commercial loans. that Netherlands entityincluding
been established, which operate across the
the branches EU.
of the country not approved
the transfer of personal bydata
the EU as providing
outside of the EU antoadequate
a and regulates,
(“SFO”), which among
governsothers, offers ofand
the securities investments to the
futures markets
nationally-chartered limited purpose trust company
does not accept deposits or make commercial loans. Netherlands entity which operate across the EU. country not approved by the EU as providing an adequate and regulates, among others, offers of investments to the
public and provides for the licensing of intermediaries. AVAILAB LE INFORMATION clients, as well as the impact of global fiscal, monetary and addition, shareholder activism involving closed-end funds
The SFO
public andis provides
administered for the bylicensing
the Securities and Futures
of intermediaries. AVAILAB LE INFORMATION
BlackRock files annual, quarterly and current reports, trade policies,
clients, as well could
as thecause:
impact of global fiscal, monetary and has increased,
addition, including
shareholder publicinvolving
activism campaigns to demand
closed-end funds
Commission (“SFC”). Theby
The SFO is administered SFC theisSecurities
also empowered and Futuresto proxy statements
BlackRock and allquarterly
files annual, amendments to these
and current reports
reports, trade policies, could cause:
• the value of AUM, or BlackRock’s returns on AUM, to that a fund consider
has increased, significant
including transactions
public campaigns tosuch as a
demand
establish
Commission standards
(“SFC”).for The compliance
SFC is alsoas well as codes
empowered to and and
proxy other information
statements and allwith the SEC. BlackRock
amendments to these makes
reports decrease; tender offer,consider
that a fund merger or liquidation
significant or seek other
transactions actions
such as a
• the value of AUM, or BlackRock’s returns on AUM, to
guidelines. The relevant
establish standards BlackRock subsidiaries
for compliance as well as codes and and
the available
and otherfree-of-charge,
information with onthe
or through its website
SEC. BlackRock makesat such
tender asoffer,
the termination of the fund’s
merger or liquidation management
or seek other actions
decrease;
• client redemptions from BlackRock’s products;
employees
guidelines. conducting
The relevantany of the regulated
BlackRock subsidiaries activities
and the https://www.blackrock.com,
available free-of-charge, on or thethrough
Company’s Annualat
its website contract.
such as the If atermination
number of BlackRock’s
of the fund’sclients terminate their
management
specified
employees inconducting
the SFO areany required
of the to be licensed
regulated with the
activities •• client
client redemptions
rebalancing orfrom BlackRock’s
reallocating products;
of assets into contracts,
contract. Ifor otherwise
a number ofremove BlackRock
BlackRock’s clientsfrom its
terminate their
Reports on Form 10-K, Quarterly
https://www.blackrock.com, Reports onAnnual
the Company’s Form 10-Q,
SFC, and are
specified subject
in the SFO are to the rules, to
required codes and guidelines
be licensed with the Current
Reports Reports
on Formon Form
10-K, 8-K, proxy
Quarterly statements
Reports on Form and all
10-Q, BlackRock
• client products
rebalancing orthat yield lower
reallocating of fees;
assets into advisory
contracts, roles, liquidateremove
or otherwise funds or fail to renew
BlackRock from its
issued
SFC, and byarethesubject
SFC. to the rules, codes and guidelines BlackRock products management
advisory roles,contracts
liquidate on similar
funds terms,
or fail the fees or
to renew
amendments
Current Reports to those
on Form filings,
8-K, as soon
proxy as reasonably
statements and all • an impairment to thethat yield
value lower fees;assets and
of intangible
issued by the SFC. practicable
amendments after such material
to those filings, asissoonelectronically filed with
as reasonably carried interest
management BlackRock
contracts on earns
similarcould
terms,bethe
reduced,
fees orwhich
BlackRock’s operations in Taiwan are regulated by the goodwill;
• an or
impairment to the value of intangible assets and
or furnishedafter
practicable to the SEC.
such The Company
material also makes
is electronically filed with may cause
carried BlackRock’s
interest BlackRockAUM, revenue
earns couldand earningswhich
be reduced, to
Taiwan
BlackRock’sFinancial Supervisory
operations in Taiwan Commission,
are regulated which byisthe goodwill; or
• a decrease in the value of seed or co-investment
available
or furnishedon its website
to the SEC.the Thecharters
Company foralso
the makes
Audit decline.
may cause BlackRock’s AUM, revenue and earnings to
responsible
Taiwan Financial for regulating
Supervisory securities markets
Commission, (including
which is capital.
•a decrease in the value of seed or co-investment decline.
the Taiwan Stock Exchange and the Taiwan Committee,
available on Management
its website theDevelopment
charters for the andAudit
responsible for regulating securities marketsFutures
(including capital.
Compensation
Committee, ManagementCommittee,Development
Nominating, and Governance and These risks may also be heightened by market volatility, The failure or negative performance of products offered
Exchange),
the Taiwan Stock the banking
Exchange industry
and theandTaiwan
the insurance
Futures sector.
Sustainability
CompensationCommitteeCommittee,and Risk Committee
Nominating, of the and
Governance illiquid market
These risks mayconditions or other market
also be heightened disruptions.
by market volatility,The by
Thecompetitors may cause
failure or negative AUM in similar
performance BlackRock
of products offered
Exchange), the banking industry and the insurance sector.
BlackRock’s Fund Management Company in China Board of Directors,
Sustainability its Code
Committee andof Risk
Business Conduct
Committee of and
the occurrence of any
illiquid market of the above
conditions events
or other maydisruptions.
market cause the The products to decline
by competitors mayirrespective
cause AUM of BlackRock’s
in similar BlackRock
(“BlackRock
BlackRock’s FMC”) is regulated by
Fund Management the China
Company in Securities
China Ethics,
Board of itsDirectors,
Code of Ethics
its Code forofChief Executive
Business and Senior
Conduct and Company’s
occurrence AUM,
of anyrevenue and earnings
of the above to decline.
events may cause the performance.
products to decline irrespective of BlackRock’s
Regulatory
(“BlackRockCommission
FMC”) is regulated and is subject to theSecurities
by the China Securities Financial
Ethics, itsOfficers
Code of andEthicsits for
Corporate Governance
Chief Executive and Senior Company’s AUM, revenue and earnings to decline. performance.
Many competitors offer similar products to those offered
Investment Fund Law and
Regulatory Commission and Measures
is subject fortothe
theSupervision
Securities Guidelines. Further,
Financial Officers andBlackRock
its Corporatewill provide, without
Governance by BlackRock
Many and the
competitors failure
offer or products
similar negative performance of
to those offered
Changes in interest or foreign exchange rates and/or
and Administration
Investment Fund Law of and
Mutual Fund Managers
Measures for the
for the Supervision charge, upon
Guidelines. writtenBlackRock
Further, request, a will copy of the Company’s
provide, without competitors’
by BlackRockproducts could lead
and the failure to a loss
or negative of confidence
performance of in
divergent
Changes inbeta may cause
interest BlackRock’s
or foreign exchange AUM
ratesand base
and/or
overall oversight from
and Administration incorporation
of Mutual to the corporate
Fund Managers for the Annual
charge, Reports
upon writtenon Form 10-K,aQuarterly
request, copy of the Reports on Form
Company’s similar BlackRock
competitors’ products,
products could irrespective
lead to a lossofof
the
confidence in
fees to fluctuate
divergent beta mayandcause
introduce volatility
BlackRock’s to the
AUM and base
governance
overall oversight and operations
from incorporation of fund managers and funds.
to the corporate 10-Q,
AnnualCurrent
ReportsReports
on Form on10-K,
FormQuarterly
8-K, proxy statements
Reports and
on Form performance of such
similar BlackRock BlackRock
products, products.
irrespective ofAny
the loss of
Company’s net income
fees to fluctuate and operating
and introduce cash
volatility to flows.
the
BlackRock
governanceFMC and is also subject
operations to the
of fund China Securities
managers and funds. Law all amendments
10-Q, Current Reportsto thoseonfilings
Form 8-K, as well as the
proxy committee
statements and confidence
performance inof
a product type could
such BlackRock lead to Any
products. withdrawals,
loss of
Company’s net income and operating cash
In recent years, global markets have experiencedflows.
and variousFMC
BlackRock otheris financial
also subject lawstoand
theregulations.
China Securities Law charters, its Codetoofthose
all amendments Business
filingsConduct
as well and Ethics,
as the its
committee redemptions
confidence inand liquidity
a product issues
type inlead
could suchtoproducts, which
withdrawals,
BlackRock
and variousCCB Wealth
other financialManagement Limited, which is
laws and regulations. Code of Ethics
charters, its Codefor of
Chief Executive
Business Conductand Senior Financial
and Ethics, its substantial volatility,
In recent years, globalwith significant
markets downturns in both
have experienced
may cause the
redemptions Company’s
and AUM, revenue
liquidity issues and earnings
in such products, to
which
BlackRock’s
BlackRock CCB wealth
Wealth management
Management jointLimited,
venturewhichcompany is Officers and itsfor
Code of Ethics Corporate Governance
Chief Executive Guidelines.
and Senior Financial bond and equity
substantial markets.
volatility, with In addition,downturns
significant central banksin both
decline.
may cause the Company’s AUM, revenue and earnings to
with CCB Wealth
BlackRock’s wealth Management
management Co., Ltd.venture
joint and Fullerton
company Requests
Officers and for its
copies shouldGovernance
Corporate be addressed to Investor
Guidelines. worldwide have raised
bond and equity interest
markets. rates incentral
In addition, an effort to
banks
decline.
Management
with CCB Wealth PteManagement
Ltd. in China,Co., is regulated
Ltd. and by the
Fullerton Relations,
Requests for BlackRock, Inc., 50
copies should beHudson
addressed Yards, New York,
to Investor moderate
worldwiderising inflation.
have raised BlackRock’s
interest rates inbusiness is directly
an effort to
and indirectly
moderate affected
rising by BlackRock’s
inflation. changes in global interest
business rates.
is directly Increased competition may cause BlackRock’s AUM,
National
Management Financial Regulatory
Pte Ltd. in China,Administration
is regulated by(“NFRA”,the New York 10001.
Relations, BlackRock,Reports,
Inc., proxy
50 Hudsonstatements
Yards,andNewother
York,
Similarly, due to
and indirectly the global
affected nature of
by changes inBlackRock’s
global interest rates. revenue
Increased and earnings to
competition decline.
may cause BlackRock’s AUM,
formerly
National known
Financial as the China Banking
Regulatory and Insurance
Administration (“NFRA”, information
New York 10001. regarding issuers
Reports, proxy that file electronically
statements and other with
operations,
Similarly, due a portion of its business
to the global nature ofis conducted in
BlackRock’s revenue and earnings to decline.
Regulatory
formerly known Commission).
as the China They have enacted
Banking Bank Wealth
and Insurance the SEC, including
information regardingBlackRock’s
issuers that filings, are also available
file electronically withto The investment management industry is highly
Management SupervisionThey
Regulatory Commission). and Management
have enacted MeasuresBank Wealth the public from theBlackRock’s
SEC, including SEC’s website at https://www.sec.gov.
filings, are also available to currencies
operations,other thanof
a portion theitsUnited States
business (“US”) dollar.
is conducted in competitive,
The investment andmanagement
BlackRock competes
industry based on a number
is highly
and Management
Management Measures
Supervision and ofManagement
Bank Wealth Management
Measures the public from the SEC’s website at https://www.sec.gov. BlackRock’s
currencies otherexposure to foreign
than the Unitedexchange rates
States (“US”) relative to
dollar. of factors including:
competitive, investment
and BlackRock performance,
competes based on liquidity,
a number its
Subsidiaries
and Management and other
Measuresrelevant rules Wealth
of Bank to regulate the setup,
Management the US dollarexposure
BlackRock’s and interest rates may
to foreign cause rates
exchange BlackRock’s
relative to technology and portfolio
of factors including: construction
investment offerings,
performance, the level
liquidity, its
AUM
the US todollar
fluctuate
and and introduce
interest volatility
rates may cause toBlackRock’s
the Company’s
conduct
Subsidiariesof business
and other and risk management
relevant rules to regulateof bank thewealth
setup, Item 1A. Risk Factors base
AUM fees, net income
to fluctuate and operating
and introduce cashtoflows.
volatility the Company’s
of fees charged,
technology the quality
and portfolio and breadth
construction of services
offerings, theand
level
management
conduct of business companies.
management companies.
and risk management of bank wealth Item 1A. Risk Factors
As a global investment management firm, risk is an base fees, net income and operating cash flows.
products
its
provided,
of fees charged,
ability provided,
products
thename
to developname
qualityrecognition
and breadth
new investment
andofreputation,
recognitionstrategies
services and
and and
and reputation,
and
In addition, beta divergence between equity markets,
In Singapore, a BlackRock subsidiary is regulated by the inherent part
As a global of BlackRock’s
investment business.firm,
management Global
riskmarkets,
is an by products
its ability to meet
develop thenew
changing needsstrategies
investment of investors.andIn
where certain
In addition, markets
beta perform
divergence differently
between equitythan others,
markets,
Monetary
In Singapore, Authority of Singapore
a BlackRock subsidiary(“MAS”) and its business
is regulated by the their nature,
inherent partare prone to uncertainty
of BlackRock’s business.and subject
Global markets, by addition,
products overto meetthe the
pastchanging
several years,
needsthere has beenIn
of investors.
may
where lead to anmarkets
certain increaseperform
in the proportion
differentlyof BlackRock
than others,
activities
Monetaryare subjectoftoSingapore
Authority the Securities (“MAS”) andandFutures Act
its business participants
their nature, to
area prone
varietytoofuncertainty
risks. WhileandBlackRock
subject devotes continued
addition, overconsolidation in theyears,
the past several asset there
management
has been
AUM weighted
may lead toward lower
to an increase fee
in the equity products,
proportion resulting
of BlackRock
2001 (“SFA”).
activities The SFAtogoverns
are subject the regulation
the Securities and Futuresof activities
Act significant
participantsresources across
to a variety all of
of risks. its operations
While BlackRocktodevotes industry
continued asconsolidation
investors increasingly
in the asset seek out firms that have
management
in
AUMa decline
weightedin BlackRock’s
toward lowereffective feeproducts,
fee equity rate. Divergent
resulting
and
2001institutions
(“SFA”). The inSFA
the governs
securities and
the derivatives
regulation industry,
of activities identify, measure,
significant resourcesmonitor,
acrossmanage
all of itsand analyze to
operations market, the capacity
industry to deliverincreasingly
as investors broad multi-asset
seek out investment
firms that have
market factors
in a decline may also erode
in BlackRock’s the correlation
effective between the
fee rate. Divergent
including fund management,
and institutions in the securities dealing in capital markets
and derivatives industry, operating, legal, compliance,
identify, measure, reputational,
monitor, manage fiduciary
and analyze and
market, capabilities
the capacityand technological
to deliver expertise, including
broad multi-asset investment in a
growth
market rates
factors ofmay
AUMalsoanderode
base fees.
the correlation between the
products
includingand fundleveraged
management, foreign exchange
dealing trading.
in capital The
markets investment risks,compliance,
operating, legal, BlackRock’sreputational,
business, financial
fiduciary and manner thatand
capabilities is responsive
technological to ever more localized
expertise, including needs.
in a
growth rates of AUM and base fees.
MAS is Singapore’s
products and leveraged central bankexchange
foreign and integrated trading. financial
The condition,
investmentoperating results and
risks, BlackRock’s nonoperating
business, results
financial This
manner consolidation, together
that is responsive towith
everthe
moreintroduction of new
localized needs.
regulator, which regulates
MAS is Singapore’s centralthe bankfinancial services financial
and integrated sector in could be materially
condition, operatingadversely
results and affected and the Company’s
nonoperating results BlackRock’s investment advisory contracts may be
technologies,
This consolidation, as well as regulatory
together with thechanges, continues
introduction of newto
Singapore
regulator, whichand conducts
regulates integrated
the financialsupervision
services of sector in stock
could price could decline
be materially as a affected
adversely result of and
any of
thethese risks
Company’s terminated
BlackRock’sor may not beadvisory
investment renewedcontracts
by clientsmayandbe
fund
alter the competitive
technologies, as well landscape
as regulatory forchanges,
investment managers,
continues to
financial
Singapore services and financial
and conducts integrated stability surveillance.
supervision of This and
stockuncertainties, including
price could decline as athe ones
result ofdiscussed below.
any of these risks boards on favorable
terminated terms
or may not and the liquidation
be renewed by clients andof certain
fund
which
alter themay lead to additional
competitive landscape feefor
compression
investmentor require
managers,
BlackRock subsidiary
financial services and and the employees
financial conducting This
stability surveillance. any and uncertainties, including the ones discussed below. funds
boardsmay be accelerated
on favorable termsat thethe
and option of investors.
liquidation of certain
BlackRock
which may to leadinvest more to modify
to additional or adapt itsorproduct
fee compression require
of the regulated
BlackRock activities
subsidiary and specified
the employeesin theconducting
SFA are required any funds may derives
BlackRock be accelerated at theportion
a substantial option of
of its
investors.
revenue
MARKET AND COMPETITION RISKS offerings
BlackRocktotoattract
investandmoreretain customers
to modify or adaptandits
remain
product
to be licensed
of the regulated with the MAS,
activities and areinsubject
specified the SFA toare
therequired
SFA from providing
BlackRock investment
derives advisory
a substantial services.
portion of its The advisory
revenue competitive with theand
offerings to attract products, services and
retain customers geographic
and remain
MARKET
Changes inAND COMPETITION
the value RISKS
levels of equity, debt, real assets,
and
to bethe regulations,
licensed with the rules,
MAS, codes, notices
and are subject andtoguidelines
the SFA or
frommanagement contracts BlackRock
providing investment has entered
advisory services. into with
The advisory diversity
competitive offered
with bytheother financial
products, institutions,
services technology
and geographic
issued
and theby the MAS. rules, codes, notices and guidelines
regulations, commodities,
Changes in theforeign exchange
value levels or other
of equity, asset
debt, realmarkets,
assets, its clients, including
or management the agreements
contracts BlackRockthat has govern
enteredmany of
into with companies,
diversity offeredtrading, advisory
by other or asset
financial management
institutions, firms.
technology
issued by the MAS. as well as the impact
commodities, foreignof global trade
exchange policies
or other and
asset tariffs,
markets, BlackRock’s investment
its clients, including the funds, provide
agreements investors
that govern or,manyin of Increased
companies, competition on theor
trading, advisory basis
assetofmanagement
any of these factors,
firms.
Other financial regulators oversee BlackRock subsidiaries, may cause
as well assets
as the under
impact management
of global (“AUM”),
trade policies andrevenue
tariffs, some cases, investment
BlackRock’s the independent
funds,directors of applicable
provide investors or, in including
Increased competition
competition leading to feeofreductions
on the basis any of these on factors,
branches
Other financialand representative
regulators oversee offices across the
BlackRock Asia-
subsidiaries, and
mayearnings to decline.
cause assets under management (“AUM”), revenue investment
some cases,funds, with significant
the independent latitude
directors to terminate
of applicable existing
including orcompetition
new business, may cause
leading the Company’s
to fee reductions on AUM,
Pacific
branches region, including in South
and representative Korea.
offices across Regulators
the Asia-in all and earningsinvestment
to decline.management revenue is primarily
BlackRock’s such contracts,
investment withdraw
funds, funds or liquidate
with significant latitude tofunds, or to
terminate revenue
existing or andnewearnings to decline.
business, may cause the Company’s AUM,
of theseregion,
Pacific jurisdictions
including have inauthority
South Korea. withRegulators
respect to in all
comprised
BlackRock’sofinvestment
fees basedmanagement
on a percentage of theisvalue
revenue of
primarily remove BlackRock
such contracts, as a fund’s
withdraw fundsinvestment
or liquidate advisor
funds,(or
or to revenue and earnings to decline.
financial services including,
of these jurisdictions among other
have authority things, to
with respect the
AUM and, in
comprised ofsome cases,on
fees based performance
a percentagefees
ofwhich are of
the value equivalent).
remove BlackRockBlackRock
as a also
fund’smanages
investmentits US mutual
advisor (orfunds, Failure to maintain Aladdin’s competitive position in a
authority to grant,including,
financial services suspend or cancelother
among required
things,licenses
the or
normally
AUM and,expressed as a percentage
in some cases, performanceof fees
returns to the
which are closed-end
equivalent).and exchange-traded
BlackRock also manages fundsits under
US mutual funds, dynamic
Failure tomarket could
maintain lead tocompetitive
Aladdin’s a loss of clients and could
position in a
registrations.
authority to grant, In addition,
suspend these regulators
or cancel required maylicenses
subject or
client.
normallyNumerous
expressed factors, including price
as a percentage movements
of returns to the in management
closed-end and contracts that must funds
exchange-traded be renewed
under and impede
dynamicBlackRock’s
market couldproductivity andofgrowth.
lead to a loss clients and could
certain BlackRock
registrations. subsidiaries
In addition, theseto net capital
regulators may subject
the equity,
client. debt orfactors,
Numerous currency markets,price
including or movements
movements inin
the approved
management annually by the
contracts funds’
that must respective
be renewed boards
and of impede BlackRock’s
requirements.
certain BlackRock subsidiaries to net capital
price of realdebt
the equity, assets, commodities
or currency or other
markets, alternativein the
or movements directors,
approved a majorityby
annually ofthe
whom arerespective
funds’ independent fromofthe
boards The sophisticated riskproductivity and growth.
analytics, portfolio management,
requirements. trade execution and
The sophisticated investment
risk analytics, operations that BlackRock
portfolio management,
investments in which
price of real assets, BlackRock invests
commodities or otheron behalf of its
alternative Company.
directors, aBlackRock’s fee arrangements
majority of whom are independent underfromany the
of its
investments in which BlackRock invests on behalf of its advisory
Company. orBlackRock’s
management feecontracts may be
arrangements reduced
under any of its provides via its technology
trade execution platform
and investment to support
operations thatinvestment
BlackRock
(including
advisory orat the behest ofcontracts
management a fund’s board
may beofreduced
directors). In advisory
provides and Aladdin
via its clientsplatform
technology are important elements
to support of
investment
(including at the behest of a fund’s board of directors). In advisory and Aladdin clients are important elements of
BlackRock’s competitive success. Aladdin’s competitive which may cause its AUM, revenue and earnings to Moreover, inherent constraints arising from the business changes. For instance, new or divergent climate
position
BlackRock’sis based in part on
competitive its ability
success. to combine
Aladdin’s risk
competitive decline.
which may cause its AUM, revenue and earnings to models
Moreover, of certain
inherent asset managers,
constraints including
arising BlackRock,
from the business regulations
changes. Fororinstance,
guidance, as or
new well as differing
divergent perspectives
climate
analytics
position iswith
basedportfolio
in partmanagement,
on its ability to trading
combine andrisk decline. may
modelsduring periods
of certain of market
asset volatility
managers, result BlackRock,
including in BlackRock of stakeholders
regulations regardingasclimate
or guidance, well asimpacts,
differinghave affected
perspectives
operations
analytics with tools on a single
portfolio platform. Increased
management, trading and Changes in the value of seed and co-investments that having fewerperiods
may during optionsoffor accessing
market liquidity
volatility resultthan asset
in BlackRock and may continue
of stakeholders to affectclimate
regarding BlackRock’s business
impacts, activities
have affected
competition
operations tools fromon risk analytics
a single and investment
platform. Increased BlackRock
Changes inowns as well
the value as BlackRock’s
of seed minority that
and co-investments managers
having fewer with alternate
options business models,
for accessing liquiditywhich may
than asset and reputation,
may continueincrease scrutiny
to affect and complicate
BlackRock’s business activities
management
competition from technology providers,
risk analytics including as a result
and investment investments
BlackRock owns couldasaffect
well asits income andminority
BlackRock’s could increase adversely
managersimpact its ability
with alternate to support
business certain
models, products.
which may compliance requirements,
and reputation, which could
increase scrutiny increase the
and complicate
of growing industry
management consolidation
technology providers, giving rise toas a result
including the volatility could
investments of its earnings.
affect its income and could increase Any decision
adversely by BlackRock
impact its ability to support particular products,
certain products. Company’s
compliancecosts.
requirements, which could increase the
competitors with increasingly
of growing industry consolidation sophisticated
giving riseand to the volatility of or
Anyitsdecision
inabilitybyorBlackRock
unwillingness to provide
to support such support,
particular products, Company’s costs.
comprehensive At December 31,its earnings.
2023, BlackRock’s net economic Climate-related physical and transition risks could also
competitors withproduct offerings,
increasingly or a shift in
sophisticated client
and may
or itsresult in losses
inability or affect BlackRock’s
or unwillingness capital
to provide such or
support,
investment
At December exposure
31, 2023, ofBlackRock’s
approximatelynet$3.8 billion in its
economic impact BlackRock’s
Climate-related business
physical both directly
and transition and
risks indirectly
could also
demand toward product
comprehensive standalone or internally
offerings, developed
or a shift in client liquidity,
may result which may or
in losses cause AUM,
affect revenue and
BlackRock’s earnings
capital or to
investments (see Itemof7,approximately
investment exposure Management’s$3.8 Discussion
billion inand
its through adverse impacts
impact BlackRock’s to itsboth
business clients’ investments,
directly and indirectly
solutions,
demand towardwhether due to price
standalone competition,
or internally perceived
developed decline.
liquidity, which may cause AUM, revenue and earnings to
Analysis of Financial
investments (see Item Condition and Results
7, Management’s of Operations-
Discussion and including as a result
through adverse of declines
impacts in asset
to its clients’ values, changes
investments,
client market
solutions, share,due
whether platform
to price offerings or flexibility,
competition, perceived or decline.
Investments) primarily
Analysis of Financial resultedand
Condition from co-investments
Results and
of Operations- in client preferences,
including increased
as a result of declinesregulatory and compliance
in asset values, changes
market-based
client market share,or regulatory
platformfactors, may
offerings orweaken Aladdin’s
flexibility, or Geopolitical unrest and other events outside of
seed investments
Investments) in itsresulted
primarily sponsored investment
from funds. and
co-investments costs and
in client significant business
preferences, increaseddisruptions.
regulatory and Anycompliance
of these
competitive
market-based position and may
or regulatory causemay
factors, the Company’s
weaken Aladdin’s BlackRock’s controland
Geopolitical unrest could adversely
other eventsaffect
outsidethe
ofglobal
Movements in thein
seed investments equity, debt or currency
its sponsored markets,
investment funds.or in risks
costsmay
and cause the Company’s
significant AUM, revenue
business disruptions. Anyand
of these
revenue andposition
competitive earningsand to decline.
may cause In addition, to the extent
the Company’s economy or specific
BlackRock’s international,
control could adverselyregional andglobal
affect the domestic
the price of real
Movements assets,
in the commodities
equity, or other
debt or currency alternative
markets, or in earnings
risks mayto decline.
cause the Company’s AUM, revenue and
that Aladdin
revenue and competitors are ableIn
earnings to decline. toaddition,
innovateto more
the extent markets,
economywhich may cause
or specific BlackRock’s
international, AUM,
regional revenue
and domestic
investments, could
the price of real lower
assets, the value of or
commodities these investments
other alternative as earnings to decline.
effectively
that Aladdin than BlackRockare
competitors or able
leverage deliverymore
to innovate models that and earnings
markets, whichtomay
decline.
cause BlackRock’s AUM, revenue
provide clients well as certaincould
investments, minority
lowerinvestments,
the value ofincrease the volatility
these investments as RISKS RELATED TO INVESTMENT
effectively thanfaster time to
BlackRock or market,
leveragelower costs
delivery or thethat
models and earningsrisks,
to decline.
ability of BlackRock’s
well earningsinvestments,
as certain minority and cause earnings
increasetothe
decline.
volatility Geopolitical including those arising from trade PERFORMANCE
RISKS RELATED TO INVESTMENT
providetoclients
more seamlessly
faster time combine
to market,orlowerbundle with
costs orother
the
service offerings,
ability to BlackRock
more seamlessly may lose
combine or existing
bundle withclients or
other of BlackRock’s earnings and cause earnings to decline. tension and/or
Geopolitical theincluding
risks, imposition of trade
those arisingtariffs,
fromterrorist
trade PERFORMANCE
Poor investment performance could lead to the loss of
fail to capture
service offerings, future market may
BlackRock share, which
lose may clients
existing impedeor its BlackRock indemnifies certain securities lending clients activity
tension or acts of
and/or civil
the or international
imposition of tradehostility, could have
tariffs, terrorist
clients and may cause
Poor investment AUM, revenue
performance and to
could lead earnings
the losstoof
productivity
fail to capture and growth.
future Moreover,
market although
share, which mayBlackRock
impede its for specified
BlackRock losses as acertain
indemnifies result of a borrower
securities default.
lending clients an adverse
activity impact
or acts on or
of civil BlackRock. For instance,
international hostility, the
could have
decline.
clients and may cause AUM, revenue and earnings to
takes steps to
productivity safeguard
and against infringements
growth. Moreover, although BlackRockof its for specified losses as a result of a borrower default. Ukraine-Russia
an adverse impact andonIsrael-Hamas
BlackRock. For wars and potential
instance, the
BlackRock provides borrower default indemnification to decline.
The Company’s management believes that investment
intellectual
takes steps property
to safeguard (“IP”), there can
against be no assurance
infringements of its that escalation have and Israel-Hamas
Ukraine-Russia may continue wars to resultandin geopolitical
potential
certain
BlackRock of its securities
provides lending
borrower clients.
default In the event of to
indemnification a instability performance,
The Company’s including the efficient
management believesdelivery of beta, is one
that investment
the Company
intellectual will be able
property (“IP”),tothere
effectively
can beprotect and enforce
no assurance that escalationandhaveadversely
and mayaffect the to
continue global
resulteconomy, supply
in geopolitical
borrower
certain ofdefault, BlackRock
its securities lending would use In
clients. thethe
collateral
event of a chains, specific markets and operations. of the most important
performance, includingfactors for thedelivery
the efficient growth and retention
of beta, is one
its
theIP rights inwill
Company Aladdin.
be able to effectively protect and enforce instability and adversely affect the globalStrategic
economy, supply
pledged
borrowerby the borrower
default, BlackRock to repurchase
would use the securities out on
collateral competition between theandUS and China and resulting of AUM.
the mostPoor investment
important performance
factors relative
for the growth to retention
and
its IP rights in Aladdin. chains, specific markets operations. Strategic
loan in order
pledged by the to borrower
replace them in a client’s
to repurchase account.out on
securities tensions andbetween
heightened levels applicable
of AUM. Poor portfolio benchmarks,
investment aggregate
performance feetolevels or
relative
competition the US andofChina
political andpolarization
resulting
BlackRock may be unable to develop new products and Borrower default
loan in order indemnification
to replace is limited
them in a client’s to the shortfall
account. have alsoand
tensions contributed
heightened to uncertainty in the polarization
levels of political geopolitical competitors may cause
applicable portfolio AUM, revenue
benchmarks, and earnings
aggregate toor
fee levels
services
BlackRockand thebe
may development of newnew
unable to develop products and and
products that occurs
Borrower in theindemnification
default event the collateral available
is limited at the
to the time
shortfall and
haveregulatory landscapes.
also contributed Similarly,in
to uncertainty other events outside
the geopolitical decline as a result
competitors of: AUM, revenue and earnings to
may cause
services may expose
and the BlackRock
development ofto reputational
new harm,
products and of the
that borrower’s
occurs in thedefault
event the is insufficient to repurchase
collateral available at the time of
andBlackRock’s
regulatory control,
landscapes. including natural
Similarly, otherdisasters,
events outside decline as a result of: in favor of better performing
additional costs or operational • client withdrawals
services may expose BlackRockrisk.
to reputational harm, those
of the securities
borrower’sout on loan.
default BlackRockto
is insufficient requires all
repurchase climate-related events, including
of BlackRock’s control, pandemics or health
natural crises may
disasters,
borrowers to mark outtoon market their pledged collateral
all daily products
• client offered byincompetitors;
withdrawals favor of better performing
additional
BlackRock’scosts or operational
financial risk.depends, in part, on its
performance those securities loan. BlackRock requires arise from time to
climate-related time and
events, be accompanied
pandemics by
or health crises may
to levels into
borrowers excess
mark of to the value
market of the
their securities
pledged out ondaily
collateral loan products offered by competitors;
• client shifts to products that charge lower fees;
ability to react
BlackRock’s to changes
financial in the asset
performance management
depends, in part, on its governmental
arise from timeactions
to timethatandmay increase international
be accompanied by
industry, respond to evolving client demands and develop, which mitigates
to levels in excess theoflikelihood indemnity out
the value of the securities beingon loan tension or impact the US ormay
global economy in ways that •• client shifts to products
the diminishing ability tothat charge
attract lower fees;
additional funds
ability to react to changes in the asset management governmental actions that increase international
market and manage new investment productsand anddevelop, triggered. Wherethe
which mitigates thelikelihood
collateral of is in
thethe form of cash,
indemnity beingthe are uncertain. Anythesuch fromdiminishing
existing and new clients;
industry, respond to evolving client demands tension or impact USevents andeconomy
or global responses, including
in ways that • the ability to attract additional funds
services. Themanage
development and introduction of and
new indemnities
triggered. Where BlackRock provides
the collateral isdo not form
in the guarantee,
of cash,assume
the regulatory developments, may cause significant volatility from existing and or
new
market and new investment products
or otherwise BlackRock
indemnities insure the provides
investment do performance
not guarantee, orassume
return
are uncertain. Any such events and responses, including • reduced, minimal noclients;
performance fees;
products
services. Theanddevelopment
services, including the creationofofnew
and introduction and declines
regulatory in the global may
developments, markets,
cause disproportionate
significant volatility •• reduced, minimal or no performance fees;assets and
increasingly of
or any cash collateral
otherwise insure the vehicle into which
investment that cashor return
performance an impairment to the value of intangible
products andcustomizable products,
services, including the requires
creation continued
of impacts to certain
and declines in theindustries or sectors,
global markets, disruptions to
disproportionate
innovative effort on the part of BlackRock andcontinued
may require collateral
of any cash is collateral
invested. The amount
vehicle of securities
into which that cashon loan as commerce (including to economic activity, travel andto goodwill;
• an or
impairment to the value of intangible assets and
increasingly customizable products, requires impacts to certain industries or sectors, disruptions
significant time and resources as well as ongoing of December
collateral 31, 2023The
is invested. andamount
subjectoftosecurities
this type of on loan as goodwill; or
innovative effort on the part of BlackRock and maysupport
require supply
commercechains), loss ofto
(including life and property
economic activity,damage,
travel andand may • a decrease in the valuations of seed and
and investment. Substantial risk indemnification
of December 31,was 2023 approximately
and subject to $259
thisbillion.
type ofIn the
significant time and resources asand
welluncertainties are
as ongoing support adversely affectloss
supply chains), the global economy
of life and property or capital
damage, markets,
and may as co-investment
•a capital.
decrease in the valuations of seed and
associated with the introduction of new products and Company’s
indemnification capacity
was as lending agent,
approximately $259cash and securities
billion. In the well as theaffect
Company’s products, operations, clients,
and investment. Substantial risk and uncertainties are adversely the global economy or capital markets, as co-investment capital.
services, including totaling
Company’s approximately
capacity as $276 lendingbillion
agent,was heldand
cash as collateral
securities
associated with thethe implementation
introduction of new of new andand
products vendors and
well as the employees,
Company’s which may
products, cause BlackRock’s
operations, clients, Performance fees may increase volatility of both revenue
appropriate operational controls and procedures, for indemnified
totaling securities
approximately $276 on billion
loan atwasDecember
held as 31, 2023.
collateral
services, including the implementation of new andshifting AUM,
vendorsrevenue and earnings
and employees, whichto decline.
may cause BlackRock’s
BlackRock’s and earnings.fees may increase volatility of both revenue
Performance
client and market preferences, the introduction ofshifting Significant
for indemnifiedborrower defaults
securities occurring
on loan simultaneously
at December 31, 2023. exposure to geopolitical riskstomay be heightened to the
appropriate operational controls and procedures, AUM, revenue and earnings decline. BlackRock’s and earnings.
competing products or services,the constraints on of with rapid declines
Significant borrower indefaults
the value of collateral
occurring pledged and/
simultaneously extent such A portion of BlackRock’s revenue is derived from
client and market preferences, introduction exposure to risks arise inrisks
geopolitical countries
may be in heightened
which BlackRock to the
BlackRock’s ability toor
manage growth within on
client or increases
with in the value
rapid declines in theof the securities
value of collateral loaned mayand/
pledged currently operates or seeks to expand its presence. performance fees on investment
A portion of BlackRock’s revenue advisory
is derivedassignments.
from
competing products services, constraints extent such risks arise in countries in which BlackRock
mandates, create collateral
or increases in theshortfalls,
value of which could result
the securities loaned in material
may Performance
performance fees on represented
investment $554 million,
advisory or 3%, of total
assignments.
BlackRock’scompliance with regulatory
ability to manage and disclosure
growth within client currently operates or seeks to expand its presence.
requirements and IP-related lawsuits orand claims, which may liabilities under these
create collateral indemnities
shortfalls, and may
which could cause
result the
in material revenue for the
Performance year
fees ended December
represented 31, 2023.
$554 million, Generally,
or 3%, of total
mandates, compliance with regulatory disclosure Climate-related risks could adversely affect BlackRock’s
not be fully evident or identified at such Company’s revenue
liabilities under these and earnings to
indemnities anddecline.
may cause the the Company
revenue for the isyear
entitled
endedto aDecember
performance fee only
31, 2023. if the
Generally,
requirements and IP-related lawsuits or time.
claims,A growing
which may business, products,
Climate-related operations
risks and clients,
could adversely affectwhich may
BlackRock’s
number of BlackRock’s
not be fully productsat
evident or identified and services
such time. Aalso depend
growing Company’s revenue and earnings to decline. agreement
the Company under which to
is entitled it is a managing
performance thefee
assets
only provides
if the
cause BlackRock’s
business, products,AUM, revenue
operations and
and earnings
clients, to decline.
which may
on data provided
number by third
of BlackRock’s parties and
products as analytical inputs
services also and
depend BlackRock’s decision on whether to provide support to for one andunder
agreement if returns
which on itthe related portfolio
is managing exceed
the assets provides
cause BlackRock’s AUM, revenue and earnings to decline.
BlackRock’s business and those of its clients could be
are subject
on data to additional
provided by thirdrisks,
parties including with respect
as analytical to
inputs and particular
BlackRock’sproducts from
decision time to time,
on whether or thesupport
to provide inabilitytoto agreed-upon
for one and if periodic
returns on or the
cumulative return targets.
related portfolio exceedIf
data quality,tocost,
are subject availability
additional risks,and provider
including relationships.
with respect to provide support,
particular may
products cause
from AUM,
time revenue
to time, and
or the earnings
inability to impacted
BlackRock’sby business
climate-related risks.
and those ofClimate-related
its clients couldrisksbe these targets periodic
agreed-upon are not exceeded,
or cumulative a performance fee for
return targets. If that
Data sets for cost,
data quality, certain developing
availability andanalytics,
provider such as those in
relationships. to decline.
provide support, may cause AUM, revenue and earnings may impact
impacted byBlackRock through
climate-related changes
risks. in the physical
Climate-related risks period will notare
these targets be not
earned and, if a
exceeded, targets are based
performance feeon
for that
the
Datasustainability
sets for certain space, continue
developing to evolvesuch
analytics, and asdifficulties
those in to decline. climate or from
may impact the process
BlackRock of transitioning
through changes in the to aphysical cumulative
period will notreturns, the Company
be earned may not
and, if targets areearn
based on
While not legally mandated, BlackRock may, at its option, low-carbon economy. Climate-related physical
approximating
the sustainability gaps in the
space, data, sourcing
continue to evolve data
andfrom
difficulties climate or from the process of transitioning to arisks arise performance fees inthe
cumulative returns, future periods.
Company Thenot
may volatility
earn of the
from
Whiletime to timemandated,
not legally choose to seed, warehouse
BlackRock may, at orits
otherwise
option, from the direct impacts of a changing climate
reliable sources,gaps
approximating or validating
in the data, thesourcing
data could adversely
data from low-carbon economy. Climate-related physicalinrisks
the arise Company’s
performance future
fees in revenue
future and earnings
periods. may alsoofbe
The volatility the
support
from timeinvestment products
to time choose through
to seed, capital or
warehouse or otherwise
credit short- and long-term. Such
impact
reliablethe accuracy
sources, and effectiveness
or validating of such
the data could analytics.
adversely from the direct impacts of a risks may include
changing climate the risks of
in the affected
Company’s duefuture
to illiquid
revenuealternatives becoming
and earnings an be
may also
support for commercial
investment or other
products reasons.
through Any or
capital decision
credit by extreme weather events andrisks
changes
There
impactcanthebe no assurance
accuracy that BlackRock
and effectiveness will be
of such able to
analytics. short- and long-term. Such may in temperature,
include the risks of increasing
affected due component of the overallbecoming
to illiquid alternatives composition an of the
BlackRock
support foron whether toorsupport
commercial products
other reasons. may
Any utilize by
decision which may damage infrastructure andinfacilities, including
innovate
There caneffectively in orderthat
be no assurance to develop
BlackRocknewwill
products
be ableorto extreme weather events and changes temperature, Company’s performance
increasing component offeethegenerating assets. Inof the
overall composition
capital andon
BlackRock liquidity that
whether to would
supportotherwise
productsbe available
may utilize for BlackRock’s physicalinfrastructure
assets, as well as facilities,
disrupt connectivity
services
innovatethat address
effectively inthe
orderneeds of its clients
to develop on the or
new products which may damage and including particular,
Company’sthe Company expects
performance that as assets.
fee generating it manages In more
other
capitalcorporate purposes.
and liquidity BlackRock’s
that would otherwiseability to seed, for
be available or supply chains. Climate-related transition risks arise
timeline they address
services that require. the
Anyneeds
failureof toits
successfully
clients on the develop BlackRock’s physical assets, as well as disrupt connectivity illiquid products,
particular, its performance
the Company expects that feesas
will generally more
it manages be
warehouse or otherwise
other corporate support
purposes. certainability
BlackRock’s products may be
to seed, from exposure to Climate-related
the transition to transition
a low-carbon
new products
timeline and services,
they require. or effectively
Any failure managedevelop
to successfully or supply chains. riskseconomy
arise recognized over substantially
illiquid products, its performance longer multi-year
fees periods
will generally be
restricted
warehousebyorregulation
otherwise or by thecertain
support Company’s failure
products to be
may through policy,toregulatory, technology and market
associated
new products operational risks,orcould
and services, harm manage
effectively BlackRock’s from exposure the transition to a low-carbon economy than those associated
recognized with more
over substantially liquid
longer products.periods
multi-year
have or make
restricted available sufficient
by regulation capital or liquidity.
or by the Company’s failure to
reputation
associated and expose the
operational risks,Company
could harm to additional
BlackRock’scosts, through policy, regulatory, technology and market than those associated with more liquid products.
have or make available sufficient capital or liquidity.
reputation and expose the Company to additional costs,
Failure to identify errors in the quantitative models or is transmitted through them, including data provided by cyber-attack or other information security event, including change management, developing, testing and rolling out
BlackRock utilizeserrors
Failure to identify to manage
in theits business could
quantitative models third parties that through
or is transmitted is significant
them,toincluding
portions data of BlackRock’s
provided by those arisingor
cyber-attack due to the
other use of mobile
information technology
security or a
event, including new functionalities
change management, anddeveloping,
expandingtesting
coverage and into new out
rolling
adversely
BlackRockaffect product
utilizes performance
to manage and could
its business client business
third parties andthat products. An information
is significant to portions security incident or
of BlackRock’s third-party
those arising cloud
due environment. BlackRock
to the use of mobile also routinely
technology or a markets and geographies,
new functionalities includingcoverage
and expanding in connection
into new with
relationships.
adversely affect product performance and client disruption,
business and such as a cyber-attack
products. An information including social
security incident or transmits
third-partyand cloud receives personal,
environment. confidential
BlackRock alsoorroutinely inorganic
markets and transactions
geographies, or to address in
including client or regulatory
connection with
relationships.
BlackRock employs various quantitative models to support engineering,
disruption, such a phishing scam, business
as a cyber-attack includingemail compromise,
social proprietary
transmits and information by email and
receives personal, other electronic
confidential or requirements. These updates
inorganic transactions and expansion
or to address client orinitiatives,
regulatory
its investment processes, including those relatedtotosupport
risk malware,
engineering, denial-of-service
a phishing scam, or ransomware
business email attack, or a failure
compromise, means.
proprietaryThe information
Company collaborates
by email and with clients,
other vendors
electronic which have ledThese
requirements. to significant
updatesgrowth in Aladdin’s
and expansion initiatives,
BlackRock employs various quantitative models
assessment, portfolio management, trading and hedging to controldenial-of-service
malware, access to sensitive orsystems,
ransomware could materially
attack, or a failure and other
means. Thethird partiescollaborates
Company to develop secure transmission
with clients, vendors processing
which have scale,
led to frequently
significantoccur
growth oninaccelerated
Aladdin’s time
its investment processes, including those related to risk
activities andportfolio
product management,
valuations. Anytrading
errors or limitations interrupt
to controlbusiness
access tooperations or causecould
sensitive systems, disclosure or
materially capabilities
and other third andparties
protecttoagainst
develop cyber-attacks. However,
secure transmission frames and scale,
processing may expose BlackRock
frequently occur on to additional
accelerated cyber-
time
assessment, and hedging
in the underlying models, model inputs or assumptions, modification
interrupt business of sensitive or confidential
operations client or competitive
or cause disclosure or BlackRock
capabilitiesorand such third against
protect parties may not have all
cyber-attacks. However, and information-security
frames risks, as well
and may expose BlackRock as increased
to additional cyber-
activities and product valuations. Any errors or limitations
including those from third-party sources, information.
modificationMoreover,
of sensitive developments
or confidential inclient
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or competitive appropriate
BlackRock orcontrols
such third in place to may
parties protect
notthehaveconfidentiality
all execution, operational andrisks,
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in the underlying models, model inputs oras well as any
assumptions,
failure of BlackRock’s governance, approval, testing and process
information.automation
Moreover, and artificial intelligence
developments (“AI”), asuse
in BlackRock’s wellofas of such information.
appropriate controls in place to protect the confidentiality BlackRock is unable to and
execution, operational manage
data the pace of, or risks.
management provideIf the
including those from third-party sources, as well as any
validation standards ingovernance,
respect of such models, model the use of
process remote access
automation by employees
and artificial and mobile
intelligence (“AI”),and cloud
as well as of such information. operational
BlackRock isresiliency
unable toand stability
manage thefor,
pacetheof,expansion
or provideofthe
failure of BlackRock’s approval, testing and Any information security incident or cyber-attack against
inputs or assumptions, the failure to timely update such technologies,
the use of remote could heighten
access these andand
by employees other operational
mobile and cloud Aladdin andresiliency
operational associated andgrowth of its
stability processing
for, the expansion scale,of
validation standards in respect of such models, model BlackRock
Any informationor third partiesincident
security with whom it is connected,
or cyber-attack against
models, risks, as certain
technologies, aspects
could of thethese
heighten security
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technologies BlackRock
Aladdin and may experience
associated client
growth ofattrition, reduced
its processing scale,
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failure to timely in how
update such including
BlackRockany interception,
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ascomplex,
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of such technologies business,
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may experience client attrition,harm or regulatory
reduced
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including confidential
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failure
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such modelsbusiness
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could These
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heightened as well as
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BlackRock’sby the rapid
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reputation. These risks ofmay
new be appropriately, could result inamaterial
to disclose or communicate financial
cybersecurity loss, loss of
incident
models,
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rapid and standards
growth and market
and complexity of new failure
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on mobile and cloud
or cloud service providers
technology or any to AUM, revenue and earnings to decline.
adequately
failure by mobile safeguard their systems
technology and cloud andservice
prevent cyber- to
providers competitive
appropriately, position, regulatory
could result fines and/or
in material financial sanctions,
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volatility.
models, evolving data sets and standards and market breach of client
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highlymay exposebusiness
regulated BlackRock to
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safeguard their systems operations
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result in
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result in liability,
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clientin turn, mayreputational
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TECHNOLOGY AND OPERATIONAL RISKS or proprietary information
misappropriation, corruption or third-party data. In addition,
or loss of personal, confidential revenue and earnings
liability, which, in turn,to decline.
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heightenedandregulatory
regulatoryscrutiny.
environment in certain
For example, the changing
TECHNOLOGY AND OPERATIONAL
A failure in, or disruption RISKS
to, BlackRock’s operations, there is a risk that
or proprietary encryption
information and other protective
or third-party measures
data. In addition, cybersecurity insurance
revenue and earnings to may not In
decline. cover all losses
addition, and
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political and regulatory clients in
environment arecertain
based has
systems
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in,infrastructure, including
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BlackRock’s continuity
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such events mayand
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cover all lossesability
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jurisdictions in which toAladdin
open new data are
clients centers
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those
plans,
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or infrastructure, operations,
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business the
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particularly quantum
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suchsufficient
events and insurance coverage
BlackRock’s into
ability the jurisdictions in ordertotoopen
required BlackRock hostnew
client data
data in thein
centers client’s
those
Company’s
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computing thetechnologies
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maintainmay orbe limited.
obtain sufficient insurance coverage in the home location.
jurisdictions in Operating
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client centers in client’s
in the foreign
revenue
Company’sandreputation
earnings to decline.
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home location. may expose BlackRock
Operating to increased
new data centers in foreign
The financial services industry has been the subject of Failure or unavailability of third-party dependencies may operational
jurisdictionscomplexity,
may exposeasBlackRock
well as additional
to increasedregulatory
revenue andinfrastructure,
BlackRock’s earnings to decline.
including its technological cyber-attacks
The financial services involving the dissemination,
industry has been thetheft subjectand of adversely affect Aladdinofoperations, which could cause risks associated
operational with theas
complexity, compliance requirements
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capacity,
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infrastructure, space,
including itsistechnological
vital to the Failure or unavailability third-party dependencies may
destruction
cyber-attacks of involving
corporatethe information
dissemination, or other theftassets,
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with the compliance increased of such
requirements
competitiveness
capacity, data centers of its and
business.
officeMoreover, a significant
space, is vital to the reputational harm,
adversely affect lead to
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operations, whichand impede
could cause
result of failure
destruction to follow procedures
of corporate informationby or employees
other assets, or as a regulatory scrutiny
jurisdictions. globally
In addition, on technology
there and
has been increased
portion of BlackRock’s
competitiveness critical business
of its business. Moreover, operations is
a significant BlackRock’s
reputational productivity
harm, lead toand growth.
a loss of clients and impede
contractors
result of failure or as toafollow
resultprocedures
of actions by bythird parties,or
employees information providers,
regulatory scrutiny whichon
globally may impact Aladdin
technology and and
concentrated in a limited
portion of BlackRock’s number
critical of geographic
business operations areas,
is BlackRock’s productivity and growth.
BlackRock must maintain effective infrastructure,
including
contractors nation
or as state actors,
a result terrorist
of actions by organizations,
third parties, cyber certain functionalities
information providers, andwhichtools.
may impact Aladdin and
including
concentrated Sanin Francisco,
a limited New
number York,ofLondon,
geographic Edinburgh,
areas, criminals
including and nation hacktivists.
state actors, BlackRock
terroristhas been and cyber
organizations,
including
BlackRockamustrobust and secure
maintain technological
effective framework, in
infrastructure, certain functionalities and tools.
Budapest,
including San Atlanta, Gurgaon
Francisco, New and Belgrade.
York, London, The failure to
Edinburgh, continues
criminals and to be the target BlackRock
hacktivists. of cyber-attacks,
has been as well
and as the
order to maximize
including a robust the
andbenefit
secureof the Aladdin platform.
technological framework, In in
A failure to effectively manage the development and use
maintain
Budapest,an infrastructure
Atlanta, Gurgaoncommensurate
and Belgrade. The withfailure
the size
to co-opting
continues of to its
be brand,
the targetandof continues
cyber-attacks,to monitor
as well andas the
so doing,
order it relies inthe
to maximize part on certain
benefit of thethird-party service In
Aladdin platform.
of AI, combined
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to effectively evolving regulatory
the environment,
development and use
and scopean
maintain ofinfrastructure
BlackRock’s business,
commensurateor the occurrence
with the size of a develop
co-opting itsofsystems
its brand, to protect its technology
and continues to monitor and
providers,
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relies in part hosting
on certain and technologies
third-party service
could have an adverse
of AI, combined with aneffect on BlackRock’s
evolving growth,
regulatory environment,
business
and scopeoutage or event outside
of BlackRock’s business, BlackRock’s control, of a
or the occurrence infrastructure
develop its systems and data from misappropriation
to protect its technology or
supporting cloud-based
providers, including operations.
for cloud hostingFor example,
and technologies
reputation
could have oranbusiness.
adverse effect on BlackRock’s growth,
including a majororearthquake,
business outage event outside hurricane,
BlackRock’sfire, terrorist
control, act, corruption,
infrastructure as the
andfailure
data from to do so could disrupt or
misappropriation
Aladdin’s
supporting data architecture
cloud-based depends For
operations. on third-party
example,
reputation or business.
BlackRock uses machine learning and AI in its business
pandemic,
including ahealthmajor crisis or other
earthquake, catastrophic
hurricane, fire, event, or act,
terrorist the BlackRock’s
corruption, as operations
the failureand cause
to do financial
so could disruptlosses. providers of technology
Aladdin’s data architecturesolutions,
depends including the ability of
on third-party
actions
pandemic, of individuals
health crisis oror
groups
other seeking to disrupt
catastrophic event, or the such parties
providers to scale andsolutions,
of technology perform in response
including toability
the Aladdin’s
of and expects
BlackRock to continue
uses machineto expandand
learning its AI
AIcapabilities,
in its business
Advances
BlackRock’s in operations
technology,and including generative
cause financial AI, and use
losses.
BlackRock’s operations
actions of individuals orin any location
groups seekingattowhich
disrupt BlackRock growth. In addition,
such parties to scalethe
and analytical
perform capabilities
in response of to Aladdin
Aladdin’s including
and expects through generative
to continue AI. AI its
to expand methods are complex
AI capabilities,
of such technology
Advances in technology, by malicious
including actors could heighten
generative AI, and use
maintains
BlackRock’s a major presence,
operations in anycould materially
location at which impact
BlackRock depend onaddition,
growth. In the abilitytheofanalytical
a number capabilities
of third parties to
of Aladdin and rapidly
including evolving,
through and the introduction
generative AI. AI methods of are
AI into new or
complex
these
of such risks. Although
technology byBlackRock
malicious has actorsimplemented
could heighten policies
operations,
maintains aresult majorin businesscould
presence, disruption or impede
materially impactthe provide
depend data
on the and other
ability ofinformation
a number ofas inputs
third into to
parties existing
and rapidlyprocesses may
evolving, and result in new or enhanced
the introduction of AI into new or
and
these controls, and takes
risks. Although protective
BlackRock hasmeasures
implemented involvingpolicies
Company’s
operations, growth.
result in business disruption or impede the Aladdin’s analytical
provide data calculations.
and other information Although BlackRock
as inputs into has governmental
existing processesor regulatory
may result scrutiny,
in new IP or or other litigation,
enhanced
significant
and controls, expense,
and takes to prevent
protective andmeasures
address potential
involvingdata
Company’s growth. implemented internal
Aladdin’s analytical controls and
calculations. procedures
Although and has
BlackRock data protection,
governmental orconfidentiality
regulatory scrutiny,or information
IP or other security
litigation,
Despite BlackRock’s efforts to ensure business continuity, breaches,
significantinadvertent
expense, todisclosures,
prevent andincreasingly
address potential data
maintains
implemented a robust vendor
internal management
controls and proceduresprogram and risks, social or ethical
data protection, concerns,or
confidentiality competitive
information harm or other
security
if it fails BlackRock’s
Despite to keep business continuity
efforts to ensureplans
businessup-to-date or if
continuity, sophisticated
breaches, inadvertent cyber-attacks and cyber-related
disclosures, increasinglyfraud, there
designed
maintainsto a perform diligence
robust vendor and monitor
management third parties
program complications. For example,
risks, social or ethical concerns, the competitive
use of datasetsharm to or
develop
other
such plans,
if it fails including
to keep secure
business back-up
continuity facilities
plans and or if
up-to-date can be no assurance
sophisticated that any
cyber-attacks of these
and measures
cyber-related proves
fraud, there
that support
designed the Aladdin
to perform platform,
diligence and there
monitorcanthird
be noparties and test AI models,
complications. the content
For example, thegenerated by AI systems,
use of datasets to develop
systems
such plans, andincluding
the availability
secureofback-up
back-up employees,
facilities and are fully
can be effective.
no assurance In addition,
that any given
of the
theseevolving
measures nature of
proves
assurance
that support that
thethese measures
Aladdin willthere
platform, provecan
effective.
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and the application
test AI models,oftheAI systems may be found
content generated by AI tosystems,
be
improperly
systems and implemented or deployed
the availability of back-up during a disruption,
employees, are cyber threat actors
fully effective. and thegiven
In addition, increasing sophistication
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failure by third
assurance that parties to maintain
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prove effective.that
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adverse business
to be
the Company’s
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implemented couldduring
or deployed be adversely
a disruption, cyber-attack
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sophistication may
commensurate with Aladdin’s
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to maintain growth, or that
infrastructure provide
is decisions or biased
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or harmful, lead to adverse including
business
impacted
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to operate revenue and earnings to
be adversely persist for anmethodology,
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a successful being may
cyber-attack
the data or information
commensurate required
with Aladdin’s toand
size support its varying
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decisions orAI,operating
may create content
errors. that appearsincluding
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decline
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Company’s
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comply with to
earnings detected,
persist forand it may take
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capabilities, could compromise
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to support resilience,
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generative inaccurate
may createor flawed.
contentInthataddition,
appears IP correct
ownership but
regulatory obligations
decline or impact or contractual
the Company’s obligations
ability to complyleadingwith for an investigation
detected, and it mayto be completed
take a considerable and amount
the severity and
of time
in operational
capabilities, difficulties,
could causeAladdin’s
compromise reputational harm and
resilience, result and licenseinaccurate
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IP ownership
to reputational
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or contractual obligations fines and/or
leading potential impact to be
for an investigation known.
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the severity
adversely impact
in operational BlackRock’s
difficulties, causeability to provide
reputational services
harm and to technologies have not
and license rights, been fully
including addressed
copyright, by US courts
surrounding AI
sanctions.
to reputational harm, legal liability, regulatory fines and/or complexity
potential impact and interconnectedness
to be known. Moreover, of BlackRock’s
due to the
its investment
adversely impactadvisory and Aladdin
BlackRock’s abilityclients.
to provide services to or federal, state
technologies or non-US
have not beenlaws fullyoraddressed
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sanctions. systems,
complexity the process
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its investment advisory and Aladdin clients. Furthermore,
or federal, stateregulation
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AI technologies
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Company’s
systems, theprotective
process of measures
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Furthermore, around use
regulation of AIoftechnologies
these technologies require
is evolving
of security issues
Company’s protectiveor system
measures disruptions
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createCompany,
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information andorcybersecurity
A cyber-attack policies, procedures
a failure to implement effective and additional investment
globally. Efforts aroundinuse operational controls and require
of these technologies
as well as for
of security clients
issues who relydisruptions
or system upon, or have exposure
for the Company,to, well as the expansion
Continuing of theto
enhancements Aladdin platform
Aladdin’s into new
capabilities, as
capabilities
informationcould disrupt operations
and cybersecurity and
policies, lead to financial
procedures and procedures, development
additional investment and implementation
in operational controls and of
BlackRock’s
as well as forsystems.clients who rely upon, or have exposure to, markets and
well as the geographies,
expansion have
of the led to
Aladdin significant
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new
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operations and cause
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markets andprocessing scale,
geographies, havewhich may
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significant
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harm, earnings
mayto decline.
cause In addition, due to BlackRock’s interconnectivity with use of data with
appropriate AI, including
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and safeguards tohandling
for data leakage,
the
BlackRock
in Aladdin’stoprocessing
reputational harm,
scale, increased
which regulatory
may expose
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with Any failure
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to data
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In addition,vendors, advisors, central
due to BlackRock’s agents, exchanges,
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toheightened
reputationaloperational, data management,
harm, increased regulatory
clearing
third-party houses
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and regulatory integrate AI technologies,
compliance respond
costs. Any failure to to client or
information
BlackRock isand cybersecurity
dependent on thepolicies, procedures
effectiveness of the and cyber-
scrutinyand information-security
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BlackRock
clearing houses or anyand such third
other party may
financial be adversely
institutions, market demands
successfully or effectively
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AI technologies, the related risks or
to client
capabilities
information itand
maintains to protect
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procedures cyber- and information-security risks.
The operation of BlackRock’s Aladdin platform routinely
affected
BlackRock if any
or any of them
such is subject
third partytomay a successful
be adversely could
marketharm BlackRock’s
demands growthmanage
or effectively and reputation,
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risks
telecommunications systems
capabilities it maintains and the
to protect data that resides
its computer and on involves updating
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of BlackRock’s configuration
Aladdin platform routinely
affected if any of them is subject to a successful impact
could harmproduct offerings,growth
BlackRock’s client and
interactions
reputation,or business
adversely
telecommunications systems and the data that resides on involves updating existing capabilities, configuration impact product offerings, client interactions or business
initiatives, and expose the Company to legal and assumption of pre-existing liabilities, which must be BlackRock expects. At times, the resources of either or • changes to the supply and demand for properties and/
regulatory liabilities
initiatives, and expose and additional
the Companycosts, including
to legal and managed
assumption in of
order for BlackRock
pre-existing to realize
liabilities, which the benefit
must be of both companies
BlackRock or the
expects. attention
At times, of certain members
the resources of either orof or tenancies
• changes or supply
to the fluctuations in the price
and demand of commodities;
for properties and/
regulatory fines or sanctions,
liabilities whichcosts,
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including such
managedtransactions,
in order for and such transactions
BlackRock to realize may be the of
the benefit their management
both companies or may be focused
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of certain members of of
the or tenancies or fluctuations in the price of commodities;
• risks related to the availability, cost, coverage and
revenue
regulatoryand earnings
fines to decline.
or sanctions, which may cause its AUM, subject of unanticipated
such transactions, and such liabilities arising may
transactions frombe the acquisition and diverted
their management may be from day-to-day
focused businessof the
on completion otherrelated
limitations onavailability,
insurance; cost, coverage and
• risks to the
revenue and earnings to decline. commercial disputes, information
subject of unanticipated liabilities security
arising from vulnerabilities operations,
acquisition andwhich may disrupt
diverted each company’s
from day-to-day ongoing
business otherrelated
• risks limitations on insurance;
to governance and oversight, including
Failure to maintain adequate corporate and contingent or breaches and
commercial IP or other
disputes, legal claims.
information security The success of
vulnerabilities business.
operations, Inwhich
addition,
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disrupt each company’s ongoing
BlackRock’s
or breaches and inorganic strategy
IP or other legal also depends
claims. in large part
The success of may have In
business. anaddition,
adverse impact on the Company,
consummation including
of the acquisition boardrelated
• risks oversight, of portfolioand
to governance companies;
oversight, including
liquidity
Failure tomay cause adequate
maintain BlackRock’s AUM, liquidity
corporate and
and contingent
on its ability inorganic
BlackRock’s to integrate the workforce,
strategy also dependsoperations,
in large part from risks an
may have related to significant
adverse impact on transaction
the Company, costs,
including board oversight, of portfolio companies;
• the financial resources of tenants; and
earnings to decline,
liquidity may as well as harm
cause BlackRock’s its liquidity
AUM, prospects for
and
strategies,
on its abilitytechnologies
to integrate and other components
the workforce, operations, of a target unknown
from risksliabilities,
related tolitigation
significant and/or regulatory
transaction actions
costs, •• the financialliabilities
resources
growth.
earnings to decline, as well as harm its prospects for contingent onof tenants; and
disposition of investments.
growth. business
strategies,following
technologies the completion of an acquisition.
and other components of a target related
unknown to liabilities,
the acquisition or ifand/or
litigation the acquired business
regulatory does
actions
BlackRock’s ability to meet anticipated cash needs BlackRock may be required
business following the completionto commit of ansignificant
acquisition. not perform
related to theasacquisition
expected, which may
or if the cause BlackRock’s
acquired business does The above risks may expose BlackRock’sof
• contingent liabilities on disposition investments.
funds and
depends
BlackRock’s upon a number
ability to meet of anticipated
factors, including its
cash needs management
BlackRock may time, as well as
be required tocreate
commit new, or grow existing,
significant AUM, revenue
not perform asand earnings
expected, to decline.
which may cause BlackRock’s accounts
The abovetorisksadditional expenses
may expose and liabilities,
BlackRock’s including
funds and
creditworthiness
depends upon a number and ability to generate
of factors, operating
including its cash operational
management and support
time, as well functions,
as createtonew, facilitate
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accounts with delays
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and liabilities, including
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creditworthiness while BlackRock,
ability to generateInc. isoperating
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costs associated regulatory
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remediation, andcould
regulatory capital while
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future growth
integration and maintain
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manage culture.
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all of which These
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the returns in direct
earned liability for clients.
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These
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other prudential infrastructure
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to losses, compensatory or punitive
sanctions or
maintain
requirementscertainandlevels of capital
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liquidity.
them Failure
to to BlackRock andand
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energyand accounts
assets, which tomay
newexpose
or increased
intended
associated benefits of its inorganic
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realize other damages. Similarly, claims
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compensatory during
or punitive
maintain adequate
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of capital lead to unanticipated
liquidity. Failure to risks and liabilities,
BlackRock as well
and its funds andasaccounts
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to new or increased
timeframe BlackRock
intended benefits expects,
of its inorganic or at all. Moreover,
strategy in the the the courseSimilarly,
damages. of developments or projectsmay
market conditions in which
change during
costs andadequate
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liquiditytocould
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to unanticipated risks and liabilities,
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alternatives as reputational
products harm.
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challenges associatedexpects,
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or at all. Moreover, strategy BlackRock
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of developments changes
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in which
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force BlackRock to reviseaccess to equity
existing and and
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BlackRock’scompanies,
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may geographic
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when inorganic markets, products,
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portfolio companies they were commenced
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including BlackRock
real estate, and its funds
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they were commenced clients.
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theoccurrence
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energy assets,to increased
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BlackRock that
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funds of any such returns
investment events may expose BlackRock
of BlackRock’s to reputational
clients. The occurrence
conditions,
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terms may in be
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via technology and systems or that
thatoverlap with those
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such are harm,
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such events may expose attention awaytofrom
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employed by businesses.
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existing investments and
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ownership companies.
management These of
may include:
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harm, divert other business activities
management’s attentionor cause
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tax and interest
ratings, or changes rates.
in Failure
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regulations, including investments and joint ventures,
BlackRock businesses. In addition, BlackRock
in the case mayofbe subject
minority investments and portfolio
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to the potential Thesevaluation
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BlackRock’s earnings to decline.
business activities or cause its AUM,
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tax and interest adverse change
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subject disposition
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such fundsorand/or
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to risksordue
relating to operating
to reputational systems,
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liability loss resulting disposition of such investments;
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AUM, liquidity
such funds and earnings
and/or financing,tomay decline,
cause curtail its
BlackRock’s controls, and employees
from, or relating to operating that systems,
are outside risk ofmanagement
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to emerging and other things, short
less established operational,
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international and
markets other risks.
increases BlackRock’s
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to decline, curtailforitsgrowth. control,
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and as risks related
employees that are to outside
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of BlackRock’sor operating
companieshistories,
that have,new technologies
among and products,
other things, short operational, political, regulatory and other risks.
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operations and limit or impede its prospects for growth. markets
control, asin well
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risks investees
related toor the joint ventures operate.
jurisdictions or nascent
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histories, quickly evolving
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extensive operational,
international
Operating risks associated with BlackRock’s securities For example,
markets in whichBlackRock has a minority
such investees or jointinvestment in
ventures operate. and limited
nascent financial
control resources;
functions, quickly evolving markets regulatory,
operations,reputational,
the Companypolitical and foreign
faces associated exchange rate
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Operating may resultwith
risks associated in client losses. securities
BlackRock’s Circle InternetBlackRock
For example, Financial has (“Circle”), which
a minority is associated
investment in with and limited financial
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and Company’s
exchangecontrol.
rate
lending program
BlackRock may result
lends securities toin clientand
banks losses.
broker-dealers on crypto asset markets
Circle Internet Financial which experienced
(“Circle”), which substantial
is associated with
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risks, manyoutside
of whichthe USoutside
are may also expose
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Company’s to
control.
behalf of certain
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securities In these
to banks andsecurities lendingon
broker-dealers volatility
crypto assetandmarkets
high-profile which enterprise
experienced failures and
substantial
of material
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disputes or work availability
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shortages increased
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outside the US risks,
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BlackRock
transactions, theof
behalf of certain borrower is required
its clients. In theseto provide and
securities lending bankruptcies. The crypto asset
volatility and high-profile markets
enterprise are subject
failures and to
necessary
of materialequipment;
or interruptions to the availability of comply
increased with US and non-US
compliance risks, asanti-corruption,
well as higher anti-money
costs to
maintain collateral
transactions, at or above
the borrower regulatory
is required minimums.
to provide and significant
bankruptcies. regulatory
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asset marketswhichare could alsoto
subject
necessary equipment; laundering
comply withand US sanctions
and non-US laws and regulations.
anti-corruption, Similarly,
anti-money
Securities on loan are
maintain collateral marked
at or aboveto market daily
regulatory to determine
minimums. negatively
significantimpact
regulatory BlackRock’s
uncertainty, investment
which could in Circle.
also Any • accidents, pandemics, health crises or catastrophic certain jurisdictions
laundering in which
and sanctions laws BlackRock operates
and regulations. may not
Similarly,
if the borrower
Securities is required
on loan are markedto pledge additional
to market daily tocollateral.
determine failure to identify
negatively impactand mitigate investment
BlackRock’s the risks associated
in Circle.with Any events, such
• accidents, as explosions,
pandemics, fires
health or terrorist
crises activity
or catastrophic have
certaincomparable
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in which BlackRock for operates
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not
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if the borrower requiredthis process
to pledge and is charged
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collateral. acquisitions,
failure to identifyjointandventures
mitigate or minority
the risksinvestments
associated with beyond BlackRock’s
events, such control;fires or terrorist activity
as explosions, such as IP, and client
have comparable information
levels of protection andforrecords,
corporateto the US.
assets,
through due diligence,
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or minority or oversight
investments rights, beyond BlackRock’s
mitigating
BlackRock themust associated
manage this operational risks.isThe
process and failure
charged of
with • climate-related risks,control;
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such thereclient
as IP, and may information
also be heightened information
and records, to the US.
BlackRock’s
mitigating the controls to mitigate
associated such risks.
operational operational risks of
The failure indemnification
through due diligence, provisions and/or operational
governance or oversightexpertise,
rights,
intensity of adverse
• climate-related risks,weather andgreater
including naturalfrequency
disasters;or security or privacy
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also jurisdictions.
be heightened Any theft or
information
could result in
BlackRock’s financial
controls losses forsuch
to mitigate the Company’s
operational clients
risks or to manage theprovisions
indemnification integration of acquisitions
and/or operational effectively,
expertise,
intensity of adverse weather and natural
• personal injury or property damage; disasters; unauthorized use of
security or privacy data,
risks in technology or IP may
those jurisdictions. Anynegatively
theft or
that
couldparticipate in its securities
result in financial lending
losses for programs clients
the Company’s could result inthe
or to manage losses or impairments
integration relatedeffectively,
of acquisitions to such
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unauthorized use ofbusiness operations
data, technology and
or IP reputation.
may negatively In
(separate from any
that participate losses
in its related
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lending risks of collateral transactions
could result in and haveoran
losses adverse effect
impairments on BlackRock’s
related to such failures on the part of third-party servicers and addition, changes tobusiness
impact BlackRock’s the political or regulatory
operations environment
and reputation. In
investments),
(separate fromand anyBlackRock mayto
losses related bethe
held liable
risks for any
of collateral reputation
transactions orand causehave its an
AUM, revenue
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effect earnings
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BlackRock decline,
reputationwhich may harm
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operators, including with investments
managers or projects
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including
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decline, which investment
harm the management
Company’s industry.
competitive to adequately
appointed perform their
in connection contractual
with investmentsduties or
or projects BlackRock’s business or operating
increased restrictions scrutiny, may activities. The impact
adversely failure of
position in the investment management industry. operate in accordance
to adequately with applicable
perform their contractuallaws;
duties or
Inorganic transactions may harm the Company’s the Company’s
BlackRock’s systems
business or of internal activities.
operating control to The
mitigate such
failure of
competitive or financialmay
Inorganic transactions position
harmifthe
they are not
Company’s BlackRock is subject to risks associated with its proposed operate
• risks in accordance
related with applicable
to investments in emerginglaws;
markets, risks, or of its operating
the Company’s systems infrastructure to support
of internal control its global
to mitigate such
successful.
competitive or financial position if they are not acquisition
BlackRock isofsubject
GIP, including completionwith
to risks associated of the
its proposed including
• risks economic
related and political
to investments risks and
in emerging differences
markets, activities,
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its operating operational failures and regulatory
to support its global
successful. acquisition in
of the
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including completion and failure to
the in legal or economic
including regulatoryandenvironments, which
political risks and may make
differences fines and/or
activities, sanctions
could result inand impede the
operational Company’s
failures growth,
and regulatory
BlackRock employs a variety of organic and inorganic realize anticipated
acquisition benefits oftimeframe
in the anticipated the acquisition.
and failure to enforcement of legal environments,
in legal or regulatory obligations more difficult;
which may make which may cause
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sanctions and impede AUM,
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Company’s andgrowth,
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BlackRockintended
employs a tovariety
enhance earnings,
of organic andincrease product
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offerings,
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intendedwhole-portfolio solutions,
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andthe acquisition. associated
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earnings
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the Company’s AUM, revenue and
with its proposed
BlackRock acquisition
is subject of Global
to risks and Infrastructure
uncertainties associated earnings to decline.
clients, leverage
offerings, deliveradvances in technology
whole-portfolio and
solutions, expand
access into
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stringent and complexandnon-US,
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new geographies.
clients, Inorganicinstrategies
leverage advances technology have
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expand into Partners (“GIP”), including
with its proposed acquisitiontheofrisk thatInfrastructure
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state and local related to financial
ordinances andcrime, permits,
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hiring smaller-sized
new geographies. investment
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included closing
Partnersmay not be
(“GIP”), satisfiedthe
including or risk
waived,
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The potential for human error in connection
investments in early-investment
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the possibility of and production,
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for human systems could disrupt
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technological andand may beto
failure outside
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the safety, foreign investment
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could disrupt
acquiring investment
other ventures, entering management
into strategicand technology
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may be outside acquisition or
of BlackRock’s does
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close inor
the
the protection;
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operations, Company’s
losses,reputation and mayfines
lead to regulatory causeor
businesses, analytics, management
acquiring investment models and other IP. Inorganic
and technology anticipated timeframe
possibility that or at all.does
the acquisition BlackRock mayinnot
not close thebe able protection;
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damage the Company’s and earnings
reputation to decline.
and may cause
transactions involve a models
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other IP. accounting,
Inorganic to realize thetimeframe
anticipated anticipatedor benefits of the acquisition,
at all. BlackRock may not be able
product and waste
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as natural gasruptures,
leaks, BlackRock’s AUM, revenue and earnings to decline.
Many of BlackRock’s operations are highly complex and
tax, regulatory,
transactions geographical
involve a number and operational
of financial, challenges
accounting, including synergies,
to realize the valuebenefits
anticipated creationofortheother benefits of the
acquisition,
proposed
including acquisition fully or
synergies, value at all, or
creation or on thebenefits
other timelineof the and unauthorized
product and wastedischarges of products,
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ruptures, are
Manydependent on theoperations
of BlackRock’s Company’sare
ability to process
highly complexand
and
and uncertainties,
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geographical andsome cases, the
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proposed acquisition fully or at all, or on the timeline and unauthorized are dependent on the Company’s ability to process and
and uncertainties, including in some cases, the other pollutants;
monitor a large number of transactions, many of which Company’s ability to plan for the future long-term growth The failure of key third-party providers to BlackRock to performance, and its relationships with distributors are
occur
monitor across numerous
a large number markets and currencies
of transactions, many ofat high
which of the business
Company’s by to
ability identifying
plan for theandfuture
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The failure or a failure
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providers to to
to BlackRock subject to periodic
performance, renegotiation
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withmay result in are
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volumes
occur acrossand numerous
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markets andBlackRock
currenciesexpends
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BlackRockproviders
to increased
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controls, supervision,
expends within BlackRock.
employees who can The global market
ultimately for qualified
transition fund
into key roles could
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material adverse
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key third-party providers amount
increased ofdistribution
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costs and/or reductionsbeing
in the
technology
considerable and trainingon
resources in systemic
an effort to ensuresupervision,
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within BlackRock. analysts,
The global technology
market and risk
for qualified fund growth,
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a material business, which
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BlackRock’s marketed
amount ofor distributed.
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products andnew fiduciary
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transactions
technology and do training
not violate client
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investment is highly and
analysts, technology competitive,
risk Company’s AUM, revenue
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or business, to decline.
which may cause the regulations
marketed orcould lead toMoreover,
distributed. significantnew
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guidelines affect and factorsand
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BlackRock’s ability
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BlackRock depends on a number of key third-party decline. business
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to significant offerings,
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rules and regulations BlackRock’s
or adversely affect and retain
factorshighly qualified
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ability to attract, include
train providers
BlackRockfor variouson
depends fund administration,
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of key third-party potentially resulting
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clients, counterparties or theon Company,
its employees. From
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andCompany’s
retain highlyreputation
qualified and
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providersmarket and environmental,
for various fund administration, socialaccounting,
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potentially of certain in
resulting of reduced
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operations areemployees
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employees. are not immigration
the Company’s and public health
reputation policies in culture,
and workplace the jurisdictions
the governance
custody, market (“ESG”)anddata, market indices,
environmental, socialinsurance,
and services
marketing andof fee compression.
certain If BlackRock
of the Company’s is unable
products and to
always immediately
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employees make bymistakes
systems,that
controls,
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immigration has offices,
and public its approach
health policies in theto remote
jurisdictions technology
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market indices, agent roles
insurance, distribute
services andits fee
products and services
compression. successfully
If BlackRock or if it
is unable tois
and procedures
always immediatelyintended
detected to prevent and detect
by systems, such
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in which workhas
BlackRock models, theits
offices, compensation
approach to remote and and other distribution
technology and AI, cloud and operational
hosting needs. Further,
and transfer agent roles unable to replace
distribute or renew
its products and existing
services distribution
successfully or if it is
errors. These canintended
and procedures include calculation
to prevent anderrors, errors
detect suchin benefits it provides,
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models, the compensation to effectively
and BlackRock relies upon and
and other distribution a relatively concentrated
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needs. Further, arrangements,
unable to replace BlackRock’s AUM, revenue
or renew existing and earnings
distribution
software
errors. Theseimplementation or development,
can include calculation failure
errors, errorstoinensure managing executiveand
benefits it provides, succession, including
its commitment to the
effectively third-party
BlackRock relies indexuponproviders to deliver
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concentrated are of
group may decline. In BlackRock’s
arrangements, addition, improper activities,
AUM, revenue andasearnings
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data security,
software follow processes,
implementation patch systems
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failure to ensure development and training
managing executive of qualified
succession, individuals.
including the integral
third-party to its clients’
index investment
providers decisions.
to deliver services The index
that are inadequate
may decline.anti-money
In addition,laundering diligenceas
improper activities, conducted
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report issues, follow
data security, or errors in judgment.
processes, patchSuch risksor
systems may be
timely development and training of qualified individuals. provider
integral to industry is characterized
its clients’ by large vendors
investment decisions. The index and the by third-party
inadequate distributors,
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exacerbated
report issues,inortimes
errorsofinincreased
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by third-party to BlackRock.
distributors, could create reputational and
use of long-term
provider industry contracts remains
is characterized bythe
largemarket
vendorsstandard.
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trading
exacerbatedvolumes or workforce
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marketHuman errors,
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In addition, pays to certain
a percentage of theofdeferred
its employees is tied to
compensation regulatory harm to BlackRock.
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use of industry
long-term structure
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limit BlackRock’s
the market ability to
standard.
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volumes discovered
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thatCompany’s
BlackRock share
pays to price. As such,
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of its employees is tied to
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This industryitsstructure index provider contracts
may limit BlackRock’son favorable
ability toterms Key technology partnerships may expose BlackRock to
operations or result
even if promptly in regulatory
discovered fines and/ormay
and remediated, sanctions,
disrupt BlackRock’s
the Company’s share price
share could
price. As impair the retention
such, decreases in value of
or at all. While
renegotiate its BlackRock
index provider performs
contractsfocused diligenceterms
on favorable on increased regulatory
Key technology oversight,
partnerships mayas expose
well as migration,
BlackRock to
breach
operationsof client contracts,
or result reputational
in regulatory harm orsanctions,
fines and/or legal such deferred
BlackRock’s compensation.
share price couldThere
impaircan thebe no assurance
retention value of
its vendors
or at all. While in an effort to ensure
BlackRock performs they operate
focused in
diligence on execution, technologyoversight,
increased regulatory and operational risks.
as well as migration,
liability,
breach of which,
clientin turn, mayreputational
contracts, cause BlackRock’s
harm orAUM,
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suchthe Company
deferred will continue
compensation. to becan
There successful in its
be no assurance
accordance
its vendors in with
an expectations,
effort to ensure to they
the extent
operate anyin significant execution, technology
In April 2020, and
BlackRock operational
announced risks.
a strategic
revenue and earnings
liability, which, in turn,tomaydecline.
cause BlackRock’s AUM, efforts
that thetoCompany
recruit andwillretain employees
continue and effectively
to be successful in its
deficiencies
accordance with are uncovered,
expectations, there mayextent
to the be few, anyor significant
no, partnership
In April 2020, toBlackRock
host Aladdin infrastructure
announced on the
a strategic
revenue and earnings to decline. manage
efforts toexecutive
recruit andsuccession. If BlackRock
retain employees is unable to
and effectively
alternative
deficienciesvendors available.
are uncovered, In addition,
there may be few, BlackRock’s
or no, Microsoft
partnership Azure cloud
to host and commenced
Aladdin infrastructure a multi-year
on the plan
offer
managecompetitive
executivecompensation
succession. If or otherwiseisattract,
BlackRock unable to
Fraud, the circumvention of controls or the violation of risk operations
alternative vendors and processes relyIn
available. onaddition,
commercially available
BlackRock’s to migrateAzure
Microsoft the Aladdin
cloud andenvironments
commenced foraBlackRock
multi-yearandplanits
develop and retain
offer competitive talented individuals,
compensation or otherwiseor if itattract,
fails to
management and workplace
Fraud, the circumvention policies or
of controls could
the have an adverse
violation of risk data provided
operations andbyprocesses
third partiesrelyas
onwell as providers
commercially of
available external
to migrate Aladdin clientsenvironments
the Aladdin to the cloud. In foraddition,
BlackRock and its
effectively
develop and manage executiveindividuals,
retain talented succession, orthe
if itCompany’s
fails to
effect on BlackRock’s
management reputation,
and workplace which
policies may
could cause
have an the
adverse services,
data provided including technology
by third parties as services,
well as and operating
providers of BlackRock has also
external Aladdin migrated
clients to thecertain
cloud. In systems that support
addition,
ability to compete
effectively manageeffectively
executive and retain itsthe
succession, existing clients
Company’s
Company’s AUM, revenue
effect on BlackRock’s and earnings
reputation, which to decline.
may cause the errors,
services, process
including delays and failures
technology or failures
services, to comply
and operating its corporate
BlackRock hasfunctions to cloud-based
also migrated platforms.
certain systems thatThe
support
may betomaterially
ability compete impacted.
effectively and retain its existing clients
Company’s AUM, revenue and earnings to decline.
BlackRock seeks to foster a positive workplace culture, has with
errors,data usagedelays
process requirements withor
and failures respect
failures to to
these service
comply benefits of cloud-based
its corporate functions toplatforms
cloud-based are significant
platforms. and
The
may be materially impacted.
adopted
BlackRock a comprehensive
seeks to foster arisk management
positive workplace framework
culture, has providers
with data usage may adversely
requirementsimpact BlackRock.
with respect to Data providers
these service BlackRock
benefits of has adopted aplatforms
cloud-based robust risk-based approach
are significant and to
RISKS RELATED TO KEY THIRD-PARTY commonly
providers may disclaim
adverselythe accuracy and completeness
impact BlackRock. of
Data providers
and continues
adopted to enhance risk
a comprehensive various controls, procedures,
management framework RELATIONSHIPS its migration
BlackRock hasstrategies;
adopted ahowever these partnerships
robust risk-based approachalsoto
RISKS RELATED TO KEY THIRD-PARTY data and BlackRock
commonly disclaim the does not haveand
accuracy thecompleteness
ability to validate of or
policies and systems
and continues to monitor
to enhance and
various manage
controls, risks.
procedures, introduce
its migrationnewstrategies;
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however (1)these
risks partnerships
associated withalso
RELATIONSHIPS
The impairment or failure of third parties may negatively verify
data and the BlackRock
accuracy and does completeness
not have the of commercially
ability to validate or
Notwithstanding
policies and systems theseto measures,
monitor and BlackRock
manage cannot risks. relying
introduceon new
third-parties for aspects
risks, including: of infrastructure
(1) risks associated with
ensure that its workplace
Notwithstanding culture orBlackRock
these measures, such controls,cannot impact the performance
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third parties that
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verify thedatasets.
accuracyMoreover, in situations
and completeness where BlackRock
of commercially reliability
relying onand stability; (2)
third-parties forsoftware
aspects of and information
infrastructure
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ensure that its policies and systems
workplace culture orwill successfully
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impact the manages, which
performance may cause
of products andBlackRock’s AUM,
accounts that has limited
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datasets. to alternative vendors, where
in situations or where the
BlackRock security
reliabilityrisks
andarising
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(2) the use ofand
software cloud technology;
information
and managepolicies
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andsystems
externalwill
risks and BlackRock
successfully identify revenue and
BlackRock earningswhich
manages, to decline.
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has limited of BlackRock’s arrangement
access to alternative with aor
vendors, vendor
whererequires
the (3) operational
security and execution
risks arising from the risks,
use ofincluding those
cloud technology;
employees
and manage have in theand
internal past engaged
external in improper
risks and BlackRock conduct. revenue andinvestment
earnings tomanagement
decline. a long term-commitment,
nature of BlackRock’s arrangement BlackRockwith maya be dependent
vendor requires related to migration;
(3) operational and (4) risks
and execution risks,related to increased
including those
BlackRock’s activities expose the
In addition,have
employees BlackRock is subject
in the past to the
engaged in risk that its
improper conduct. on such
a long vendor for continuous
term-commitment, operational
BlackRock may be reliability
dependent and regulatory oversight and new
related to migration; compliance
(4) risks related to obligations,
increased
products
BlackRock’s andinvestment
accounts itmanagement
manages for activities
its clientsexpose
to many the
employees,
In addition, contractors
BlackRock isorsubject
other third
to the parties
risk thatmay itsin the may
on suchbe unable
vendorto foravoid incurring
continuous costs if such
operational vendorand
reliability which risksoversight
regulatory may be further
and new exacerbated
compliance asobligations,
BlackRock and
different
products industries
and accounts anditcounterparties,
manages for its including
clients to many
future deliberately
employees, or recklessly
contractors or other seek
thirdto circumvent
parties may in the introduces
may be unable required
to avoidupgrades to its
incurring services.
costs if such vendor the
whichAladdin platform
risks may continue
be further to grow. Failures
exacerbated by
as BlackRock and
distributors, brokersand
different industries andcounterparties,
dealers, commercialincludingand
established controls
future deliberately orto commit fraud,
recklessly seek topay or solicit bribes
circumvent introduces required upgrades to its services. BlackRock
the Aladdintoplatform
managecontinue
these risks, and/or
to grow. risks associated
Failures by
investment
distributors,banks,
brokers clearing organizations,
and dealers, commercial mutual
and and BlackRock may from time to time transfer key contracts
or otherwisecontrols
established act in ways that arefraud,
to commit inconsistent with the
pay or solicit bribes hedge funds,
investment and other
banks, institutional
clearing clients.
organizations, Transactions
mutual and from one third-party
BlackRock may from provider to another.
time to time transferKey keycontract
contracts with futureto
BlackRock potential
managetechnology
these risks,partnerships,
and/or risks may result
associated
Company’s
or otherwisecontrols, policies,
act in ways that areprocedures,
inconsistent workplace
with the with
hedge counterparties
funds, and other expose BlackRock’s
institutional clients
clients. to credit
Transactions transfers may be costly
from one third-party and complex
provider to another. and Key
exposecontract in escalating
with costs, financial
future potential technology loss,partnerships,
client dissatisfaction
may result or
culture
Company’s or principles. This risk procedures,
controls, policies, may be heightenedworkplace as risk
within the event the expose
counterparties applicable counterparty
BlackRock’s defaults.
clients to credit BlackRock
transfers may to heightened
be costly and operational
complex and risks. Any failure to
expose attrition, regulatory
in escalating fines and/or
costs, financial loss,sanctions, reputationalor
client dissatisfaction
BlackRock expands into
culture or principles. Thisnew riskmarkets
may be and increases
heightened as the Although
risk in theBlackRock regularly assesses
event the applicable counterpartyrisks defaults.
posed by its mitigate
BlackRock such risks could operational
to heightened result in reputational
risks. Any harm,
failureas to harm or legal
attrition, liability,
regulatory which,
fines in turn,
and/or may cause
sanctions, reputational
breadth
BlackRock of its business
expands intoofferings,
new markets all ofand
which introduce
increases the counterparties,
Although BlackRock suchregularly
counterparties
assessesmayrisks
be subject
posed by to its well as financial
mitigate such risks losses
couldto result
BlackRock and its clients.
in reputational harm, Theas BlackRock’s
harm or legalAUM, revenue
liability, which, and
in earnings
turn, mayto decline.
cause
additional
breadth of complexity
its businesstoofferings,
its risk management program.
all of which introduce sudden swings in
counterparties, suchthecounterparties
financial and creditmay be markets
subject that
to failure
well as or inability
financial of BlackRock
losses to diversify
to BlackRock and itsits sources
clients. The for BlackRock’s AUM, revenue and earnings to decline.
The changing
additional nature of
complexity tothe office
its risk environment,
management such as
program. may
suddenimpair theirinability
swings to perform
the financial andor they markets
credit may fail that
to meet key services
failure or theof
or inability failure of anyto
BlackRock key third-party
diversify provider
its sources forto Disruption to the operations of third parties whose
return to officenature
The changing arrangements andenvironment,
of the office remote and alternative
such as their obligations.
may impair Counterparties
their ability to perform may also may
or they experience
fail to meet fulfill its obligations
key services couldof
or the failure result in activities
any key third-party inconsistent
provider to functions
Disruptionare integral
to the to BlackRock’s
operations exchange-traded
of third parties whose
work
returnmodels,
to officecould cause employees
arrangements and remote to become
and alternative lapses in their internal
their obligations. controls ormay
Counterparties riskalso
management
experience with
fulfillclients’ investment
its obligations could management or other
result in activities inconsistent fund (“ETF”)
functions areplatform may
integral to adversely affect
BlackRock’s the prices at
exchange-traded
disconnected
work models, couldwith corporate culture and
cause employees policies, which
to become systems
lapses inor expose
their BlackRock
internal controls and/or
or riskits clients to losses
management agreements, have an adverse
with clients’ investment financialor
management impact
other on which ETFs trade,
fund (“ETF”) particularly
platform during affect
may adversely periods ofprices
the marketat
may increase operational
disconnected with corporate issues. Persistent
culture attempts
and policies, to
which resulting
systems or from employee
expose BlackRockmalfeasance,
and/or itsnegligence or
clients to losses BlackRock
agreements, products
have anor lead tofinancial
adverse operational, impactlegal onand volatility.
which ETFs trade, particularly during periods of market
circumvent
may increase policies and controls
operational issues. or repeatedattempts
Persistent incidentsto human
resulting error.
fromInemployee
addition,malfeasance,
the concentration of certain
negligence or regulatory
BlackRock issues products fororthe Company,
lead which could
to operational, legal result
and in volatility.
involving
circumvent fraud, conflicts
policies of interests
and controls or transgressions
or repeated incidents of BlackRock is the largest provider of ETFs globally. Shares
financial
human error.institutions thatthe
In addition, BlackRock uses toof
concentration facilitate
certain reputational
regulatory issues harmfor or the
legal liability, fines
Company, whichand/or
could sanctions
result in
policies
involvingand controls
fraud, could
conflicts of have an adverse
interests effect on of
or transgressions of ETFs trade
BlackRock on stock
is the largest exchanges
provider of atETFs
prices at, above
globally. or
Shares
securities and derivatives
financial institutions transactions
that BlackRock usesfor to
itsfacilitate
clients, and may cause
reputational harmBlackRock’s AUM, revenue
or legal liability, fines and/orand earnings
sanctions to
BlackRock’s
policies and reputation,
controls could causehaveadverse
an adversepublicity,
effect andonresult below
of ETFsthe ETF’s
trade onmost
stockrecent net asset
exchanges valueat,
at prices (“NAV”).
above The
or
including
securities clearing organizations,
and derivatives exchanges
transactions for itsand central
clients, decline.
and may cause BlackRock’s AUM, revenue and earnings to
in litigation, regulatory
BlackRock’s reputation,inquiries, fines and/or
cause adverse publicity, sanctions,
and result NAV
belowofthe
an ETF’s
ETF ismost
calculated
recentat least
net assetonce daily,
value generally
(“NAV”). The at
agents,
including increases
clearingthe risk that a technical
organizations, exchanges or operational
and central decline.
which may cause
in litigation, the Company’s
regulatory AUM,and/or
inquiries, fines revenue and
sanctions, the
NAVend
of anof ETF
eachisbusiness
calculated day,
at and
leastfluctuates with
once daily, changes
generally at
issue
agents,at,increases
or defaultthe by,risk
onethatsucha institution
technical or could introduce
operational Any disruption to the Company’s distribution channels
earnings
which may tocause
decline.
the Company’s AUM, revenue and in
thethe
endmarket
of each value of theday,
business ETF’s holdings.
and Thewith
fluctuates trading
changes
operational issues or
issue at, or default by,delays
one such impacting multiple
institution couldBlackRock
introduce may cause BlackRock’s
Any disruption AUM, revenue
to the Company’s and earnings
distribution channels to
earnings to decline. price
in theof the ETF’s
market valueshares
of thefluctuates continuously
ETF’s holdings. The trading
clients. Any such
operational issuesoperational issue, impairment
or delays impacting multiple or failure
BlackRock decline.
may cause BlackRock’s AUM, revenue and earnings to throughout trading
price of the ETF’s hours.
shares The creation/redemption
fluctuates continuously
The failure to recruit, train and retain employees and could
clients.negatively
Any such impact the performance
operational issue, impairmentof products that
or failure decline.
BlackRock relies on a number of third parties to provide feature and trading
throughout arbitrage mechanism
hours. of an ETF are designed
The creation/redemption
develop andtoimplement
The failure effective
recruit, train executive
and retain succession
employees and BlackRock manages
could negatively for its
impact theclients, which may
performance lead to that
of products
distribution, portfolio
BlackRock relies administration
on a number of thirdand servicing
parties for
to provide to makeand
feature it more likely that
arbitrage the ETF’s
mechanism ofshares
an ETFnormally will
are designed
could lead
develop andtoimplement
the loss of effective
clients and may cause
executive AUM,
succession client attrition
BlackRock and, infor
manages turn, cause BlackRock’s
its clients, which may lead AUM,to
certain BlackRock
distribution, investment
portfolio management
administration products
and servicing forand trade
to makeat prices
it moreclose
likelytothat
thetheNAV. Notwithstanding
ETF’s shares normally these
will
revenue and
could lead toearnings
the loss oftoclients
decline.
and may cause AUM, revenue and earnings
client attrition to decline.
and, in turn, cause BlackRock’s AUM,
services through their
certain BlackRock various management
investment distribution channels.
products and features, exchange
trade at prices closeprices
to thehave
NAV.in the past deviated
Notwithstanding these
revenue and earnings to decline. revenue and earnings to decline.
BlackRock’s success is largely dependent on the talents BlackRock’s ability
services through to maintain
their strong relationships
various distribution channels.with measurably from the
features, exchange NAV of
prices certain
have in theETFs
pastand may under
deviated
and efforts ofsuccess
BlackRock’s its highly skilled dependent
is largely workforce and the talents
on the its distributors
BlackRock’s mayto
ability impact the Company’s
maintain future with
strong relationships measurably from the NAV of certain ETFs and may under
and efforts of its highly skilled workforce and the its distributors may impact the Company’s future
certain circumstances do so in the future. ETF market levels of capital to support its businesses, the Company’s or policy actions result in broad application of make certain types of climate-related disclosures, and
prices
certainare subject to numerous
circumstances potential
do so in the future.risks, including
ETF market financial performance
levels of capital or plans
to support for growth the
its businesses, mayCompany’s
be macroprudential tools to
or policy actions result in OEFs
broador require changes
application of to other
make states
certainmay adopt
types similar laws. disclosures, and
of climate-related
trading halts
prices are invoked
subject by a stockpotential
to numerous exchange, andincluding
risks, the adversely impacted. or plans for growth may be
financial performance structural features
macroprudential of certain
tools to OEFsOEFs, it could
or require limit to
changes other states may adopt similar laws.
The EU has enacted numerous regulations on ESG
inability or unwillingness
trading halts invoked by aof market
stock makers,and
exchange, authorized
the adversely impacted. BlackRock’s ability of
structural features to certain
offer products
OEFs, ittocould
certain clients
limit and sustainability,
The EU has enacted including
numerous onregulations
sustainability-related
on ESG
participants, settlement systems
inability or unwillingness of marketor makers,
other market
authorized BlackRock may also be adversely affected by a failure to and/or resultability
BlackRock’s in clients altering
to offer theirto
products investment
certain clients
comply
BlackRockwith existing
may laws
also be and regulations
adversely affected by or by changes
a failure to disclosures by financial
and sustainability, market
including on participants;
sustainability-related
participants
participants,to perform functions
settlement systems or necessary for an ETF’s
other market strategies or allocations
and/or result in a manner
in clients altering that is adverse to
their investment integration
disclosures of bysustainability
financial market considerations
participants;into
arbitrage
participantsmechanism
to perform tofunctions
function effectively.
necessary for These risks
an ETF’s in the interpretation
comply with existing or enforcement
laws of such
and regulations or laws and
by changes BlackRock.
strategies or allocations in a manner that is adverse to
regulations, including
in the interpretation orthose discussed
enforcement above.
of such Challenges
laws and investment
integration of and risk management
sustainability processesinto
considerations of asset
may be heightened
arbitrage mechanism astoa result of significant
function effectively.market
These risks • BlackRock.
Global MMF Reforms: Following the market events of managers
investmentand andother institutional investors;
risk management processesmaking
of asset
volatility, the growthas
may be heightened ofathe ETFofindustry
result combined
significant marketwith associated
regulations,with interpreting
including those regulations
discussed above.issuedChallenges
in
numerous
associatedcountries in a globally
with interpreting consistent
regulations issuedmanner
in may • March 2020,Reforms:
Global MMF US, UK and EU authorities
Following the marketinitiated
eventsa of the advice and other
managers financial product distribution
institutional process
investors; making
increased market
volatility, the activity,
growth of theas well
ETF as the complexity
industry combined with review
March of existing
2020, US, UKregulatory
and EU frameworks with theaaim
authorities initiated more receptive
the advice to end-investor
and financial product sustainability
distribution process
associated with certain
increased market products
activity, as well or
asasset classes.
the complexity add to suchcountries
numerous risks if regulators in different
in a globally consistent jurisdictions
manner may
have
add toinconsistent
such risks ifviews or provide
regulators only limited
in different regulatory
jurisdictions of improving
review the resilience
of existing regulatoryofframeworks
MMFs in marketwith the aim preferences;
more receptive andtorequiring
end-investor asset managers to report
sustainability
Moreover,
associatedifwithmarket events
certain lead toorincidences
products where ETFs
asset classes. downturns.
of improvingInthe theresilience
US, the SEC adopted
of MMFs changes to
in market against an EU-wide
preferences; taxonomy
and requiring assetof managers
environmentally
to report
trade at prices
Moreover, that deviate
if market meaningfully
events lead fromwhere
to incidences an ETF’s
ETFs guidance. In particular,
have inconsistent viewsviolation
or provide ofonly
applicable
limitedlaws or
regulatory
regulations
guidance. Incould resultviolation
particular, in fines and/or sanctions,
of applicable laws or Rule 2a-7, the
downturns. primary
In the ruleSEC
US, the under the Investment
adopted changes to sustainable activitiestaxonomy
against an EU-wide and makeofdetailed disclosures
environmentally
NAV,
tradeor
at trading halts
prices that are invoked
deviate by the relevant
meaningfully from anstock
ETF’s Company
Rule 2a-7,Acttheof 1940 governing
primary rule underMMFs, including
the Investment relating to ESG
sustainable characteristics
activities and makeofdetailed
funds and portfolios.
disclosures
exchange or market,
NAV, or trading halts investors
are invokedmay bylose confidence
the relevant in ETF
stock temporary
regulationsorcouldpermanent
result inprohibition
fines and/or of certain
sanctions, activities,
reputational
temporary orharm and related
permanent client of
prohibition terminations,
certain activities, changes
CompanytoAct required
of 1940 liquidity
governinglevels and certain
MMFs, including Further
relating regulations include theof
to ESG characteristics Corporate
funds and portfolios.
products
exchangeand redeeminvestors
or market, their holdings,
may losewhich may cause
confidence in ETF operational aspects of
changes to required such funds,
liquidity levelsand
andrequiring
certain Sustainability
Further regulationsReporting
includeDirective, which will require
the Corporate
BlackRock’s
products andAUM, revenue
redeem their and earnings
holdings, to decline.
which may cause suspensions
reputational harmof employees or revocation
and related of their licenses,
client terminations,
suspension
suspensionsoroftermination
employees or of investment
revocation of adviser, broker-
their licenses, mandatory
operationalliquidity
aspects fees under
of such certain
funds, andcircumstances.
requiring enhanced sustainability
Sustainability Reporting reporting
Directive, for EU-based
which will require
BlackRock’s AUM, revenue and earnings to decline. The UK released
mandatory a consultation
liquidity in December
fees under certain 2023
circumstances. corporate
enhanced issuers, with phased
sustainability reportingimplementation
for EU-based
dealer or other
suspension registrations,
or termination ofor suspension
investment or termination
adviser, broker-
LEGAL, REGULATORY AND REPUTATIONAL indicating their intent
The UK released to changeinregulatory
a consultation December 2023 beginning in 2024with
corporate issuers, and phased
for a wider group of global
implementation
of BTC’s
dealer orbank
othercharter or otherorsanctions,
registrations, suspension which could have
or termination
RISKS
LEGAL, REGULATORY AND REPUTATIONAL requirements
indicating their forintent
MMFs todomiciled or marketed in the
change regulatory companies
beginning in from
2024 2028.
and In forDecember
a wider group 2023,ofthe EU
global
a
ofmaterial
BTC’s bankadverse effect
charter on BlackRock’s
or other sanctions,reputation
which could orhave
RISKS
BlackRock is subject to extensive regulation around the UK, including material
requirements for MMFsincreases
domiciled inor
required
marketed liquidity
in the reached
companies provisional
from 2028. agreement
In December on a directive,
2023, thewhich
EU if
business
a materialand may cause
adverse effect the Company’s AUM,
on BlackRock’s revenue
reputation or
world, which
BlackRock is increases
subject toits cost of doing
extensive business.
regulation around the and earnings
business and to maydecline.
causeFortheaCompany’s
more extensiveAUM,discussion
revenue levels. Although
UK, including EU authorities
material increases stated in Julyliquidity
in required 2023 adopted in its current
reached provisional form, would
agreement on require a wide
a directive, which if
world, which increases its cost of doing business. of
andthe laws, regulations
earnings to decline.and
For regulators to which
a more extensive BlackRock
discussion that they
levels. would not
Although EU re-open
authorities thestated
EU regulatory
in July 2023 group
adopted of in
European
its currentand global
form, companies
would require to provide
a wide
BlackRock’s business is subject to extensive regulation framework for MMFs
that they would in the near
not re-open the EUterm, the UK’s
regulatory transition plans andand
group of European conduct
globaldue diligencetoon
companies the
provide
around the world.
BlackRock’s businessThese regulations
is subject subject BlackRock’s
to extensive regulation is
of subject
the laws,and regulatedand
regulations by, see Item 1, to
regulators Business –
which BlackRock
Regulation.
is subject and regulated by, see Item 1, Business – proposed
frameworkchanges
for MMFs mayin increase pressure
the near term, the to
UK’s sustainability
transition plans of and
theirconduct
suppliers. dueThe EU andon
diligence thethe
UK
business
around the activities to an regulations
world. These array of increasingly detailed
subject BlackRock’s implement similar reforms
proposed changes as thepressure
may increase vast majority
to of Financial Conduct
sustainability Authority
of their suppliers. (“FCA”)
The EUare and
alsothe UK
operational requirements,
business activities to an arraycompliance with which
of increasingly is costly
detailed Regulation.
MMFs sold similar
implement in the UK are EU-domiciled
reforms and regulated.
as the vast majority of developing rules and
Financial Conduct guidelines
Authority for the
(“FCA”) areuse
alsoof ESG or
and complex.
operational requirements, compliance with which is costly New regulations informed by global standard setters Such sustainability related terms in fund for names,
the use focused
MMFsregulatory
sold in thereforms
UK are could significantly
EU-domiciled and
and regulated. developing rules and guidelines of ESG or
and complex. and/or developed
New regulations by various
informed by national authorities
global standard may
setters adversely impactreforms
certain could
of BlackRock’s MMF on specifying a
sustainability minimum
related terms threshold of assets
in fund names, meeting
focused
In addition, many of BlackRock’s legal entities are subject Such regulatory significantly and
expose BlackRock by
and/or developed to increasing regulatory
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of assets the
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expose BlackRock tothe jurisdictions
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money
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proposed a sustainable
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limited Financial Stability
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and International on a staggered
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the Bank Secrecy Act,Laundering, Terrorist
the EU Anti-Money national
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Financing and Transferthe of Funds in which
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BlackRock as money
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Singapore, their intention
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as money market fundsregulations.
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UK Bribery Act, sanctions imposed byUnited
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the EUof
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SEC has other things:
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become, 1, Business
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of Financial Sanctions Regulation,
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on sustainability Similarly,
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Implementation.
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in periodic business
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standards. they are policymakers
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in Japan
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India in July
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a regulatory
in whichofBlackRock
certain its businesses.operates have laws many
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relating
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develop legal 2023.
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disclosure by
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propose rules to
Furthermore,
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on ESGincreased fragmentation
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BlackRock
personal information, including the GDPR andfor UK GDPR, risks bystructural
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to
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faces increased fragmentation and potentially
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risks by theCommission
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require enhanced and disclosure
board diversity for public
regarding humanissuers. It
capital
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individuals within theand for personal
European Economicdata Area
exported(“EEA”) Stability
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Commission Council
(the(“FSOC”).
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November
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outside regulatory
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compliance obligations and legal and
and UK, the EEA and UK.
respectively, and for personal data exported 2022, theOversight
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November compliance issues relating
has also increased scrutiny to of investment
disclosure and advisers’
outside the EEA and UK. regulatory
Global uncertainty.
regulatory reforms could require BlackRock to alter
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2022, the SECOEFproposed
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to alter
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and funds’ the USstrategies,
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procedures.
government
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and regulations withinwith merger
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result reputational
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strategies or allocations in
proposed introducing
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UK California
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investments. will
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asset owners,
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California doing business
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stringent,
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these lawsisand required to hold
regulations increased
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in of these regulatory
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stringent, or if BlackRock is required to hold increased
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Regulatory reforms in the US expose BlackRock to • SEC Rules Governing Security-Based Swaps: In 2021, investment strategies and result in greater technology and data services, will become applicable
increasing
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reforms in scrutiny, as wellBlackRock
the US expose as regulatory
to • the
SECSEC
Rulesproposed
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Security-Based with security-
In 2021, operational burdens and
investment strategies andcost for in
result BlackRock.
greater The SEC beginning
technologyinand January 2025. DORA
data services, will, among
will become other
applicable
uncertainty.
increasing regulatory scrutiny, as well as regulatory based
the SECswaps (“SBS”)
proposed transactions
rules to require
in connection public
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cost for BlackRock. to
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in Januaryadditional
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other
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based swapsof large SBStransactions
(“SBS”) positions. These rules,public
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also adopted a newon securities
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certain to a
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resilience of
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subject or other SBS-related
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then publish operational burdens
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is
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clients; andoversight. In parallel
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subject DORA,to
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subject has of regulatory
increased. rulemaking
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risks have intensified.
heightened • SEC Standard Settlement Rules: In 2023, the SEC
BlackRock, liquidity in theto
costs relating SBS markets
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transactions, BlackRock
impact the proposed
additionalaoversight.
new Critical Third Party
In parallel withregime
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UK
as the paceas of well as its clients,
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rulemaking hasand distributors,
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In 2023, theamong
SEC
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“critical” to
regulate
BlackRock, as well as its clients, vendors and distributors, adopted amendments rules which, among
business or operating activities to prepare for,ofaddress • transacts.
SEC Rules on Private Fund Advisers: In 2023, the SEC most the financial
certain sector, and
third parties UK regulators
designated by HMThave issued ato
as “critical”
have expended resources and altered certain their other securities transactions
things, shortened to one business
the standard dayfor
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and meetorthe requirements thattosuch regulatory reforms • adopted new
on rules and amendments
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enhance the trade date (T+1), which will consultation on proposed
the financial sector, and UKrequirements for “critical”
regulators have issued a
business operating activities prepare for, address SEC Rules Private Fund the SEC most securities transactions tolikely increase day after
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impose. While BlackRock is, thatand such
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adopted new of private
rules andfund advisors. These
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costs. third parties, on
consultation with further consultations
proposed requirementsexpected in
for “critical”
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numerous reform initiatives in the US,become,
see Itemsubject
1, amendments to Formfund
regulation of private PF for registered
advisors. Theseinvestment
included 2024.
third parties, with further consultations expected in
impose. While BlackRock is, and may to BlackRock’s operational burdens and
• SEC Predictive Data Analytics Rules: The costs.
SEC
Business
numerous– reform
Regulation, key regulatory
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see Itemthat 1, may advisers
amendments requiring newPF
to Form disclosures, filing
for registered obligations
investment • 2024.
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• proposed new rules
SEC Predictive Data in 2023 that
Analytics would
Rules: Therequire
SEC
impact
Business the Company include:
– Regulation, key regulatory reforms that may and enhanced
advisers reporting.
requiring The SEC adopted
new disclosures, additional
filing obligations broker-dealers and investment • Commission (“EC”)
Retail Investment adoptedIna2023,
Strategy: Retailthe
Investment
European
proposed new rules in 2023 thatadvisers, when
would require
impact the Company
• Antitrust Rules and include:
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and enhanced registeredThe private
SECfund advisers
adopted to,
additional engaging or communicating with investors using Strategy
Commissionpackage with
(“EC”) wide-reaching
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a Retail Investment
broker-dealers and investment advisers, when
among other things,
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registered quarterly
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fund intended to enhance
Strategy package withprotections for retail
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amendments
• Trade Commission
Antitrust Rules and (“FTC”)
Guidance: andInthe Antitrust
2023, Division
the Federal predictive
engaging ordata analytics (“PDA”)
communicating withand PDA-like
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of the Commission
Department of Justice (the investors,
among other obtain annual
things, audits
provide for funds,
quarterly distribute
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intendedastoproposed, these changes
enhance protections may impact
for retail investors. If
Trade (“FTC”) and the“DOJ”) issued
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notice of proposed of rulemaking with amendments fairness
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obtain annual with
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enacted as proposed, in European
these changes markets,
may impact
of the Department Justice (the “DOJ”) issued a to conflicts of interest
technologies, and, where
to evaluate identified, eliminate
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rules transactions, prohibit
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in connection withofcertain
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in European servicing and
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noticeenacted underrulemaking
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with amendments to neutralize
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identified, as
eliminate or
Improvements Act ofthe
1976 (“HSR”) that require terms and treatment,
transactions, prohibit and provide
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conflict encompass
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parties in certain investors
terms andoftreatment,
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of
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investors in the
of all types same fund. treatment
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granted impose significant operational burdens and costs. United Kingdom
parties in certain transactions provide the FTC and forward-looking uses of technology applications and
consummation these rules
to other and amendments
investors in the same may fund.significantly
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DOJ prior noticeofand such transactions.
observe a waitingThe proposals
period before • impose significantfor
SEC Rulemakings operational burdens
US Registered Fundsand costs.
and • FSMA 2023: The Financial Services and Markets Act
would significantly expand the information required increase
these rulesBlackRock’s reporting,
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significantly
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SEC Rulemakings Advisers:
for The SEC has recently
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FSMA(“FSMA”)
2023: Thereflects significant
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and Markets UK
to be reported and documentation to be submitted compliance obligations
increase BlackRock’s and create
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recentlyregulatory
engaged in framework for financial
2023 (“FSMA”) services regulation,
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connection with andocumentation
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compliancefor BlackRock’s
obligations andalternatives products.
create operational
to be reported and to be submitted structure governing
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reviews industry
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for (1) revokeservices
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including
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connection rules
with an could substantially
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on Regulation alternatives products.
ATS: In 2023, the SEC and registered investment companies. For example, financial services
changes that: regulation,
(1) revoke (2) amend
retained EU lawthe UK to
related
structure governing the asset management industry
BlackRock’s
the proposedpre-merger
rules couldnotification
substantially expenses
increaseand • re-proposed amendments
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ATS: In 2023, The
the SEC the
andSEC adopted
registered rules requiring
investment certainFor
companies. funds to
example, Markets
financialin Financial
services Instruments
regulation, Directive
(2) amend theand
UK
delay transactions.
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pre-merger 2023,
notification the FTCand
expenses and proposed rules
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to Regulation systems
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DOJ
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could impact the strategic investments
ability of the Companyor to expand its Compliance and Integrity
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systems involving
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and (4) reform Thefinancial
UK government
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growth, governing
value, ESG outsourcing
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to publish thelegislation
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in 2024.out
proposed rules governingadvisers to service
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of certain
for BlackRock.
proposed, these rules may increase compliance costs specific changes impacting the UK market in 2024.
• Institution
Designation (“SIFI”): The FSOC has
as a Systemically the authority
Important to
Financial functions by investment advisers to service providers. • Mansion House Reforms: The Mansion House reforms
designate
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(“SIFI”): The FSOC institutions as SIFIs
has the authority to in • for
SECBlackRock.
US Treasury Clearing Mandate: In December Regulatory reforms in the US could require BlackRock to
announced
• Mansion in July
House 2023 also
Reforms: The build
Mansionon the newreforms
House UK
the US under
designate the Dodd-Frank
nonbank Wall Street as
financial institutions Reform
SIFIs and
in • 2023,
SEC US the SEC adopted
Treasury Clearing rules mandating
Mandate: central
In December alter its future
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reforms in theorUS
operating activities,
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BlackRock
regulatory
announcedframework
in July 2023enabled by the
also build onFSMA.
the new Potential
UK
Consumer
the US under Protection Act of 2010.
the Dodd-Frank WallIn November
Street Reform2023,
and clearing
2023, theofSEC
US Treasury
adopted rulesrepurchases
mandating andcentral
certain other could befuture
alter its time-consuming
business or and costly,activities,
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which
impacts to framework
regulatory the asset management
enabled by the sector
FSMA.include:
Potential
the FSOC finalized
Consumer Protectionamendments
Act of 2010.toInitsNovember
existing 2023, Treasury transactions.
clearing of US TreasuryThe rules require
repurchases andmany market
certain other compliance costs, result inand
could be time-consuming litigation,
costly, impede
increasetheregulatory
(1) repealtoand
impacts thereplacement of the packaged
asset management retail and
sector include:
interpretive guidance
the FSOC finalized to remove the
amendments prioritization
to its existing of participants, including The
Treasury transactions. a large number
rules requireofmany
BlackRock
market Company’s
compliancegrowth and cause
costs, result its AUM,
in litigation, revenue
impede theand
insurance based
(1) repeal and investmentofproducts
replacement (“PRIIPs”)
the packaged retail and
an activities-based
interpretive guidance approach
to remove over
theanprioritization
entity-specific
of funds and accounts,
participants, including to aclear Treasury
large numberrepurchase
of BlackRock earnings
Company’s to growth
decline.andRegulatory
cause itsreform
AUM, may alsoand
revenue impact
Regulation; (2) review
insurance based of the UK’s
investment green(“PRIIPs”)
products finance
approach to designation
an activities-based approachin connection with
over an entity-specific transactions and potentially
funds and accounts, to clear certain
Treasury cash Treasury
repurchase BlackRock’s clients, Regulatory
earnings to decline. which couldreformcause maythemalso
to change
impact
strategy,
Regulation;including potential
(2) review regulation
of the UK’s green of ESG data
finance
addressing
approach topotential
designationrisksintoconnection
financial stability,
with securities transactions
transactions through
and potentially a clearing
certain agency
cash Treasury their investment
clients, or allocations
which could cause them in manners
to change that
providers; (3) reviewpotential
strategy, including of governance through
regulation of ESGthedata
although
addressing the amendment
potential risks clarified thatstability,
to financial the FSOC registered with the SEC,through
securities transactions which could increase
a clearing agency may
their be adverse to
investment BlackRock.
strategies or allocations in manners that
Senior Managers
providers; andofCertification
(3) review governance Regime;
through (4)therepeal
retained
althoughthetheability to use an
amendment activities-based
clarified that the FSOC transaction costs
registered with thefor BlackRock’s
SEC, clients.
which could increase may be adverse to BlackRock.
of EU legislation
Senior Managerson the
and European Long-Term
Certification Regime; (4) repeal
approach
retained thewhen appropriate.
ability to use an If BlackRock is
activities-based • transaction costs
Proposed Rules onfor BlackRock’s
Equity clients. In 2023,
Market Structure: International regulatory reforms expose BlackRock and Investment Fund;on
of EU legislation (5)the
market infrastructure
European Long-Term reforms;
designated
approach when as a appropriate.
SIFI, it couldIfbecome
BlackRocksubject
is to • the SEC proposed
Proposed Rules onequity
Equitymarket
Marketstructure
Structure:reforms
In 2023, its clients to increasing
International regulatoryregulatory scrutiny,
reforms expose as well as
BlackRock and (6) reassessment
Investment Fund; of
(5)the boundary
market between reforms;
infrastructure
enhanced
designatedregulatory and
as a SIFI, it capital
could requirements
become subject toand that would
the SEC significantly
proposed equitychange
markethow national
structure market
reforms regulatory uncertainty.
its clients to increasing regulatory scrutiny, as well as investment adviceofand
(6) reassessment thefinancial
boundary guidance;
between and
direct supervision
enhanced regulatoryby the
andFederal Reserve.
capital requirements and system (“NMS”)
that would stock orders
significantly changearehow
priced, executed
national and
market regulatory
BlackRock’suncertainty.
business and operating activities are subject (7) independent
investment review
advice of the UKguidance;
and financial investment andresearch
direct supervision by the Federal Reserve.
• US DOL Fiduciary Rule: In October 2023, the US DOL reported. The reforms
system (“NMS”) include:are
stock orders (1)priced,
a requirement
executedforand to increasingbusiness
BlackRock’s regulatoryandoversight
operatingoutside of the
activities areUS and
subject landscape.
(7) independent review of the UK investment research
• proposed a new regulation
US DOL Fiduciary redefining
Rule: In October thethe
2023, meaning
US DOL of certain retail
reported. Theorders
reforms toinclude:
be subject(1)to order-by-order
a requirement for the Company regulatory
to increasing may be affected by several
oversight outsideproposed
of the USorand • landscape.
Overseas Fund Regime (“OFR”): OFR, the simplified
“investment
proposed a newadvice fiduciary”
regulation under ERISA
redefining as well as
the meaning of competition,
certain retail (2) an SEC-level
orders besttoexecution
to be subject rule and
order-by-order implemented
the Company reform
may beinitiatives
affected byinseveral
the EMEA and theorAsia-
proposed • regime
Overseasthrough which non-UK
Fund Regime (“OFR”):funds cansimplified
OFR, the register with
amendments to several
“investment advice prohibited
fiduciary” undertransaction
ERISA as well as (3) an adjustment
competition, (2) antoSEC-level
the tick sizes
best at which NMS
execution rule and Pacific regions,
implemented as well
reform as volatility
initiatives associated
in the EMEA and with
the Asia- the FCAthrough
regime to be marketed to UK retail
which non-UK funds investors, was with
can register
exemptions
amendments applicable
to severalto investment
prohibited advice
transaction stocks can be quoted
(3) an adjustment or traded.
to the If enacted
tick sizes at whichasNMS international regulatory
Pacific regions, as well asuncertainty. While BlackRock
volatility associated with is, enacted in be
the FCA to February 2022
marketed to and is expected
UK retail to be
investors, was
fiduciaries.
exemptionsIfapplicable
adopted astoproposed,
investment the rule would
advice proposed,
stocks canthe collective
be quoted or impact
traded. of the rulesas
If enacted may and may become,
international subject
regulatory to numerous
uncertainty. reform
While initiatives
BlackRock is, implemented through
enacted in February 2024.
2022 OFR
and requires to
is expected consumer
be
substantially
fiduciaries. If expand
adoptedwhen a personthe
as proposed, would
rulebe
would adversely
proposed,affect market efficiency
the collective impact of and execution
the rules may internationally,
and may become, seesubject
Item 1,toBusiness
numerous – Regulation, key
reform initiatives protection
implemented regimes in EU
through countries
2024. where BlackRock
OFR requires consumer
considered
substantiallya fiduciary subject
expand when to ERISA
a person andbe
would could costs, which
adversely would
affect result
market in negative
efficiency andeffects for
execution reforms in thesesee
internationally, regions
Item 1,include:
Business – Regulation, key funds are domiciled
protection regimes intoEUbecountries
found equivalent to the
where BlackRock
require BlackRock
considered to revise
a fiduciary subjecta number
to ERISAofand
its could BlackRock’s
costs, which business andin
would result clients.
negative effects for reforms in these regions include: UK’s
fundsregime in orderto
are domiciled tobe
market
foundsuch funds in
equivalent tothe
theUK.
distribution relationships,
require BlackRock to revisecreate compliance
a number of its and • BlackRock’s
SEC Rules onbusiness andand
Short Sales clients.
Reporting of Securities European Union UK’s regime in order to market such funds in the UK.
operational • Conduct Regulation: The FCA continues to focus on
distribution challenges for create
relationships, BlackRock and its and
compliance • Loans: In 2023,
SEC Rules the Sales
on Short SEC adopted a new rule
and Reporting requiring
of Securities European Union
distribution partners, and
operational challenges forlimit BlackRock’s
BlackRock and itsability to • Enhanced Regulatory Scrutiny of Technology Service • conduct
Conduct regulation,
Regulation:including the implementation
The FCA continues to focus onof
certain
Loans: Ininstitutional managers
2023, the SEC to areport
adopted short
new rule requiring • Providers
Enhancedto Financial Scrutiny
Regulatory Services of
Firms: The EU’s
Technology Digital
Service the Consumer
conduct Duty by
regulation, all assetthe
including management firms,of
implementation
provide certain
distribution services
partners, andtolimit
applicable clients.
BlackRock’s ability to positions and activity
certain institutional to the SEC
managers tofor publication
report short on an Operational ResilienceServices
Providers to Financial Act (“DORA”),
Firms: which focuses
The EU’s Digital including BlackRock’s
the Consumer Duty by UK subsidiaries.
all asset The Consumer
management firms,
provide certain services to applicable clients. aggregate basis,
positions and which
activity tocould potentially
the SEC impact on an
for publication on direct regulation
Operational of providers
Resilience and users
Act (“DORA”), whichof
focuses Duty rulesBlackRock’s
including require firms tosubsidiaries.
UK act to deliverThe
goodConsumer
aggregate basis, which could potentially impact on direct regulation of providers and users of Duty rules require firms to act to deliver good
outcomes for retail customers in their manufacture examinations, inquiries and proceedings have in the past in litigation, legal or governmental action, which may with whole portfolio solutions, may result in clients
and distribution
outcomes of products
for retail customers and
in services, in respect
their manufacture and could in the
examinations, future, if
inquiries andcompliance
proceedings failures
haveor inother
the past cause its AUM,
legal and earnings
or governmental to decline.
action, which may working
with whole with multiple
portfolio BlackRock
solutions, businesses
may and/or
result in clients
of
andprice and value,
distribution of consumer understanding
products and and
services, in respect violations
and could are found,
in the future,cause the relevant
if compliance governmental
failures or other or cause its AUM, revenue and earnings to decline. BlackRock
working with being engaged
multiple by institutions
BlackRock businesses thatand/or
have a
consumer
of price andsupport. Any failureunderstanding
value, consumer to meet the FCA’s
and regulatory
violations areauthority
found,to institute
cause proceedings
the relevant and/or or
governmental Damage to BlackRock’s reputation may harm its nexus
BlackRockto industries or jurisdictions
being engaged in which
by institutions BlackRock
that have a
regulatory expectations
consumer support. could expose
Any failure to meetBlackRock
the FCA’s to impose sanctions
regulatory authority fortoviolations. Any such action
institute proceedings may also
and/or business.
Damage to BlackRock’s reputation may harm its operates, which mayorincrease
nexus to industries the potential
jurisdictions in whichfor actual or
BlackRock
regulatory sanctions
expectations andcould
increased
exposereputational
BlackRock risk.
to result
impose insanctions
litigation by forinvestors
violations.inAnyBlackRock’s
such action funds,
mayother
also business. perceived conflicts
operates, which mayofincrease
interest the
andpotential
improperfor information
actual or
regulatory sanctions and increased reputational risk. BlackRock clients or
result in litigation by BlackRock’s shareholders.
investors in BlackRock’s Suchother
funds, legal BlackRock’s reputation is critical to its relationships with sharing.
perceivedToconflicts
the extent that BlackRock
of interest fails, orinformation
and improper appears to
• UK Stewardship Code Review: The UK Financial its clients, employees,
BlackRock’s reputationshareholders
is critical to its and business with
relationships
proceedings couldor
BlackRock clients harm the Company’s
BlackRock’s reputation
shareholders. Such and
legal fail, to deal
sharing. To appropriately
the extent thatwith any conflict
BlackRock fails,of
orinterest,
appearsitto
• Reporting Council
UK Stewardship hasReview:
Code announced a planned
The UK review of
Financial partners.
its clients,BlackRock’s
employees, reputation
shareholders may be business
and harmed by,
the UK Stewardship Code in 2024 to considerreview of may cause itscould
proceedings AUM,harm revenuethe and earnings
Company’s to decline,
reputation and may face
fail, to dealadverse publicity,
appropriately reputational
with any conflictdamage,
of interest, it
Reporting Council has announced a planned among
partners. other factors, regulatory,
BlackRock’s reputation enforcement
may be harmed or other
by,
potential revisions toCode
address stakeholder concerns. potentially
may cause harmits AUM,therevenue
investmentandreturns
earnings ofto the applicable
decline, litigation, regulatory
may face adverse proceedings,
publicity, client attrition,
reputational damage,
the UK Stewardship in 2024 to consider governmental
among other factors,actions,regulatory,
technology or operational
enforcement failures,
or other
fund, or result
potentially harm in the Company
investment being liable
returns for damages.
of the applicable penalties, fines and/or
litigation, regulatory sanctions, any
proceedings, of attrition,
client which may cause
potential revisions to address stakeholder concerns. poor investment
governmental performance,
actions, technology ineffective management
or operational or
failures,
fund, or result in the Company being liable for damages. BlackRock’s
penalties, fines AUM, revenue
and/or and earnings
sanctions, to decline.
any of which may cause
Asia-Pacific In addition, when clients retain BlackRock to manage their monitoring
poor investment of keyperformance,
third-party relationships, ransomwareor
ineffective management or BlackRock’s AUM, revenue and earnings to decline.
Asia-Pacific
• Regulatory Environment in China: The Company’s assets or provide
In addition, when them
clients with products
retain BlackRockor services,
to manage theytheir other cybersecurity
monitoring incidents,relationships,
of key third-party privacy incidents, employee
ransomware or
errors or misconduct, failures to manage risks oremployee
conflicts A subsidiary of BlackRock is subject to US banking
• operations in China are subject
Regulatory Environment toThe
in China: a number of
Company’s typically
assets orspecify
providecontractual requirements
them with products or guidelines
or services, they other cybersecurity incidents, privacy incidents,
of interest, or legal actions related to BlackRock regulations
A subsidiarythat may limit is
of BlackRock itssubject
business
to activities.
US banking
regulatory
operationsrisks, in Chinaincluding an evolving
are subject regulatory
to a number of that BlackRock
typically specifymust observerequirements
contractual in the provision of its
or guidelines errors or misconduct, failures to manage risks oror its
conflicts
products
of interest, and services.
or legal In addition,
actions related to BlackRock’s
BlackRockbusiness,
or its regulations
BlackRock’s that
trustmay
banklimit its business
subsidiary, which activities.
is a national
environment
regulatory risks, andincluding
complex an data security
evolving and data
regulatory services. A failure
that BlackRock mustto comply
observewith these
in the guidelines
provision of itsor
transfer regulations. Thesedatafactors may increase requirements could
services. A failure to expose
complyBlackRock
with these to lawsuits, or
guidelines harm its scale
products andand
investments
services. subject
In addition,it to BlackRock’s
significant media
business, banking association
BlackRock’s trust bankchartered by the
subsidiary, OCC,
which is is subject to
a national
environment and complex security and data
compliance risk and costs, reputation
requirements or cause
could clients
exposeto withdrawto
BlackRock assets or terminate
lawsuits, harm its coverage
scale andand increasing
investments attention
subject it to from a broad
significant range of
media OCC regulation
banking and capital
association requirements
chartered by the OCC,that may limit
is subject to its
transfer regulations. These limit themay
factors Company’s
increaseability
to source and execute new limit
investment opportunities contracts.
reputation or cause clients to withdraw assets or terminate stakeholders.
coverage and This heightened
increasing attentionscrutiny
fromhas resulted
a broad range in of business activities.
OCC regulation andThe OCCrequirements
capital has broad supervisory and its
that may limit
compliance risk and costs, the Company’s ability
and lead to impairment losses on its investments. contracts. negative
stakeholders.publicity
This and adverse scrutiny
heightened actions forhasBlackRock
resulted inand enforcement authority
business activities. Theover
OCCBlackRock’s trust bank. and
has broad supervisory
to source and execute new investment opportunities
Restrictions on transferslosses
of certain BlackRock faces increasing focus from regulators, may continue
negative to doand
publicity so in the future.
adverse actionsAnyforperceived
BlackRock or and Having a subsidiary
enforcement authoritysubject to banking regulation
over BlackRock’s trust bank.may put
and lead to impairment on itstypes of onshore
investments.
data of the Company’s Chinese entities officials, clients
facesand other stakeholders regarding ESG actual action or
may continue tolack
do so thereof, or perceived
in the future. lack of or
Any perceived BlackRock at a competitive
Having a subsidiary subjectdisadvantage because may
to banking regulation certain
put
Restrictions on transfers of certain typestoofoffshore
onshore BlackRock increasing focus from regulators,
entities alsoCompany’s
may limit BlackRock’s ability matters,
officials, which
clientsmay
and adversely impact itsregarding
reputation and transparency,
actual action or bylack
BlackRock
thereof,on or matters
perceived subject
lack ofto scrutiny, of its competitors
BlackRock are not subject
at a competitive to the limitations
disadvantage because certain
data of the Chinese entities toto
offshore other stakeholders ESG
aggregate, business. such as ESG, may
transparency, be viewedon
by BlackRock differently
matters by various
subject to scrutiny, imposed by such regulation.
of its competitors are not subject to the limitations
entities alsoreport and monitor
may limit suchability
BlackRock’s data onto its global matters, which may adversely impact its reputation and
platform.
aggregate, Inreport
addition,
andamonitor
numbersuchof regulators
data on itsin global
China business. stakeholders
such as ESG, and mayadversely
be viewedimpact BlackRock’s
differently by various reputation imposed by such regulation.
BlackRock faces increasing focus from regulators, and business,and
stakeholders including
adverselythrough
impact redemptions
BlackRock’sorreputation
have
platform.jurisdiction overaBlackRock’s
In addition, business in China
number of regulators The implications of complying with threshold limits and/
officials,
BlackRock clients
facesand other stakeholders
increasing regarding ESG
focus from regulators, terminations
and business,by clients, and
including throughlegalredemptions
and governmental or
operations,
have jurisdiction increasing operational business
over BlackRock’s and regulatory or
Theany failure to comply
implications with ownership
of complying reporting
with threshold limits and/
matters.
officials, BlackRock
clients andoffers other choice to its clients
stakeholders regardingwho ESG
have a action and scrutiny.
terminations BlackRock’s
by clients, and legalglobal presence and
and governmental
engagement complexity.
operations, increasing These risks
operational may
and be further
regulatory requirements could
or any failure to result
comply in harm
with to BlackRock’s
ownership reporting
variety
matters. ofBlackRock
goals and offers
preferences,
choice including those
to its clients whowho
have want
a investments on behalf
action and scrutiny. of its clients
BlackRock’s around
global the world
presence andcould
heightened
engagementby additional These
complexity. scrutiny by may
risks Chinese
be further reputation,
requirementsimpact
couldthe performance
result in harm toof certain BlackRock
BlackRock’s
to increase
variety theirand
of goals exposure to the low-carbon
preferences, including thosetransition
who wantand also lead to heightened
investments on behalf ofscrutiny
its clientsandaround
criticismtheinworld
an could
regulators
heightenedofbycertain sectors,
additional such by
scrutiny as Chinese
technology and funds and may
reputation, cause
impact theits AUM, revenue
performance and earnings
of certain to
BlackRock
those who choose
to increase not to invest
their exposure to theinlow-carbon
products ortransition
strategiesand increasingly fragmentedscrutiny
also lead to heightened geopolitical landscape.
and criticism in anFor
other
regulatorsindustries that sectors,
of certain might besuchdeemed to be of and
as technology decline.
funds and may cause its AUM, revenue and earnings to
with
thosesustainable
who chooseinvestment
not to invest objectives.
in products BlackRock is
or strategies example,
increasingly BlackRock
fragmented has received
geopolitical criticism from some
landscape. For
national importance.
other industries that might be deemed to be of decline.
Of note among the various regulations to which BlackRock
subject to competing
with sustainable demands
investment from different
objectives. stakeholder
BlackRock is stakeholders
example, BlackRockbecause of received
has its operations andfrom
criticism investments
some in
national importance. groups
subject with divergentdemands
to competing views on ESG-related
from different matters,
stakeholder is
Ofsubject are the
note among theextensive and increasingly
various regulations to which stringent
BlackRock
International regulatory reforms could require BlackRock certain countries
stakeholders on behalf
because of its of clients, including
operations China. in
and investments
including
groups with in divergent
countries views
in whichon BlackRock
ESG-related operates
matters,and These regulatory reporting
is subject are requirements
the extensive that necessitate
and increasingly stringentthe
to alter its future
International business
regulatory or operating
reforms activities,
could require which
BlackRock certaincriticisms
countriescould adversely
on behalf impact
of clients, BlackRock’s
including China.
invests,
including asinwell as in states
countries and BlackRock
in which localities where BlackRock
operates and reputation and business. In addition, theBlackRock’s
increasing monitoring and reporting
regulatory reporting of issuer that
requirements exposure levels the
necessitate
could
to alterbeitstime-consuming
future business and costly, increase
or operating regulatory
activities, which These criticisms could adversely impact
serves
invests,public
as well sector
as in clients.
states andThislocalities
divergence hasBlackRock
where and popularity (thresholds)
monitoring and across the holdings
reporting of issuer of exposure
managedlevels funds and
compliance costs, result inand
could be time-consuming litigation,
costly, impede
increasethe regulatory reputation of andsocial mediaInand
business. non-mainstream
addition, the increasing Internet
continues
serves public to increase the risk
sector clients. Thisthat any perceived
divergence or actual
has and news sources may lead to faster and wider dissemination accounts
(thresholds)andacross
those theof the Company.
holdings The specific
of managed fundstriggers
and
Company’s
compliancegrowth and cause
costs, result its AUM,
impede theand popularity of social media and non-mainstream Internet
action
continuesor lack thereof by
to increase theBlackRock
risk that any on such matters
perceived on
or actual of adverse publicity or inaccurate information about and the reporting
accounts and those methods that theseThe
of the Company. threshold
specificfilings
triggers
earnings
Company’s to growth
decline.and Regulatory
cause itsreform
AUM, may alsoand
revenue impact news sources may lead to faster and wider dissemination
behalf
action orof lack
its clients
thereof will
bybe viewed differently
BlackRock by various
on such matters on BlackRock, making effective remediation moreabout
difficult. entail
and thevary significantly
reporting methods by regulator
that these and across filings
threshold
BlackRock’s clients, Regulatory
earnings to decline. which couldreform
cause may
themalsoto change
impact of adverse publicity or inaccurate information
stakeholders and adversely
behalf of its clients impact
will be viewed BlackRock’s
differently reputation
by various Damage to making
BlackRock’s reputation may impact jurisdictions. BlackRockby
entail vary significantly continues
regulatortoand invest in technology,
across
their investment
clients, or allocations
which could cause them in manners
to change that BlackRock, effective remediation more difficult.
and business,and
stakeholders including
adverselythrough
impact withdrawals,
BlackRock’s reputation BlackRock’s ability to attract and retain training and its
jurisdictions. employees
BlackRock to further
continues to enhance
invest in itstechnology,
may
their be adverse to
investment BlackRock.
strategies or allocations in manners that Damage to BlackRock’s reputation may clients,
impact employees,
redemptions,
and business,terminations
including throughor decisions not to commit or
withdrawals, shareholders and business monitoring
training andand reporting functions.
its employees to furtherDespite
enhance these
its
may be adverse to BlackRock. BlackRock’s ability to attractpartners,
and retain which mayemployees,
clients, cause its
invest new capital
redemptions, by clients,
terminations oras well as legal
decisions not toandcommit or AUM, revenueand andbusiness
earningspartners,
to decline. investments,
monitoring and thereporting
complexity of the various
functions. Despite threshold
these
Legal proceedings may cause the Company’s AUM, shareholders which may cause its
governmental
invest new capital action and scrutiny.
by clients, as wellSome US and
as legal states and reporting
investments,requirements
the complexitycombined
of the with the threshold
various breadth of the
revenue and earnings
Legal proceedings may tocause
decline.
the Company’s AUM, AUM, revenue and earnings to decline.
state officials have
governmental actionadopted or proposed
and scrutiny. Some legislation
US states andor assets managed
reporting by the Company
requirements combinedand withhigh volume of
the breadth of the
revenue and earnings to decline. A failure to effectively manage potential conflicts of securities tradingby
assets managed have
the caused
Company errors
andandhighomissions
volume ofto
BlackRock is subject to a number of sources of potential otherwise have
state officials taken
have officialor
adopted positions
proposed restricting
legislationoror
interest
A failurecould result inmanage
to effectively litigation or enforcement
potential conflictsactions
of occur in the
securities past and
trading have pose a risk
caused that errors
errors or omissions
and omissions to
legal liability
BlackRock and the to
is subject Company,
a number certain of theofinvestment
of sources potential prohibiting
otherwise have state government
taken entities from
official positions doing certain
restricting or
and/or
interestadversely affect
could result BlackRock’s
in litigation business and
or enforcement actions may
occuroccur
in theinpast
the future.
and pose Anya such errors
risk that mayorexpose
errors omissions
funds it manages
legal liability andCompany,
and the certain ofcertain
its subsidiaries and
of the investment business
prohibiting withstateentities identified
government by thefrom
entities statedoing
as certain
reputation, whichaffect
and/or adversely may cause BlackRock’s
BlackRock’s AUM,
business revenue
and BlackRock
may occur in to the
monetary
future.penalties
Any suchor othermay
errors sanctions,
expose which
employees have been
funds it manages and named
certain as
of defendants in various
its subsidiaries and “boycotting”
business withorentities“discriminating”
identified against particular
by the state as
and earnings
reputation, to decline.
which may cause BlackRock’s AUM, revenue could haveto
BlackRock anmonetary
adverse effect on BlackRock’s
penalties reputation
or other sanctions, which
legal actions,
employees including
have arbitrations,
been named class actions
as defendants and
in various industries
“boycotting” or orconsidering ESG factors
“discriminating” againstin particular
their investment
and
As a earnings to decline.
global investment management firm that provides and
couldmay
havecause its AUM,
an adverse revenue
effect and earnings
on BlackRock’s to decline.
reputation
other litigation
legal actions, arising inarbitrations,
including connectionclasswith BlackRock’s
actions and processes
industries or and proxy voting.
considering ESG Other states
factors and localities
in their investment
activities. Certain
other litigation of BlackRock’s
arising in connectionsubsidiaries and
with BlackRock’s may adoptand
processes similar legislation
proxy or other
voting. Other ESG-related
states laws
and localities investment and technology
As a global investment services to
management a diverse
firm range of
that provides and may cause its AUM, revenue and earnings to decline.
employees are also and
may positions that legislation
adversely impact BlackRock’s business. clients, the Company
investment must routinely
and technology services to address andrange
a diverse manageof Moreover, as BlackRock’s business grows it is becoming
activities. Certain ofsubject to periodic
BlackRock’s examination,
subsidiaries and adopt similar or other ESG-related laws
special inquiries and potential proceedings by regulatory BlackRock
and positions may also
that communicate
adversely impactcertain initiatives
BlackRock’s and
business. conflicts of Company
clients, the interest, asmust
well routinely
as the perception
address and of conflicts
manage subject
Moreover,to aasgreater number
BlackRock’s of regulatory,
business grows itindustry-level
is becoming or
employees are also subject to periodic examination,
authorities, including the Securities and Exchange goals for itsmay
BlackRock corporate activities related
also communicate to environmental,
certain initiatives and of interest,
conflicts ofbetween
interest, itself
as wellandas its
theclients, employees
perception or
of conflicts issuer-specific
subject to a greaterthreshold
number limits and scrutiny
of regulatory, that may or
industry-level
special inquiries and potential proceedings by regulatory
Commission, Office ofthe
theSecurities
Comptroller ofExchange
the Currency diversity,
goals for itsand other ESG-related
corporate matters.
activities related toBlackRock could
environmental, vendors. While
of interest, BlackRock
between has its
itself and policies,
clients,controls
employeesand or prevent BlackRock
issuer-specific from holding
threshold limits and positions
scrutinyin that
certain
may equity
authorities, including and
(“OCC”), Department be criticized
andfor the ESG-related
scope or nature of anyBlackRock
initiativescould
or disclosure
vendors. Whileprotocols in place
BlackRock hastopolicies,
managecontrols
and address
and securities, securities
prevent BlackRock convertible
from into equityinsecurities
holding positions or
certain equity
Commission, Office ofofthe
Labor, Commodity
Comptroller of theFutures
Currency diversity, other matters.
Trading goals, or for revisions thereto. Such initiatives or goals potential
disclosureconflicts
protocolsof in
interest,
place to identifying
manage and andaddress
mitigating futures contracts
securities, securitiesin excess of certain
convertible thresholds.
into equity Although
securities or
(“OCC”),Commission,
Department of Financial Conduct Authority,
Labor, Commodity Futures be criticized for the scope or nature of any initiatives or
Commission de Surveillance du Conduct
Secteur Financial may beordifficult or costly to implement, may not oradvance conflicts
potential of interestofcan
conflicts be complex
interest, and isand
identifying themitigating
subject of BlackRock is actively
futures contracts engaged
in excess in regulatory,
of certain issuer-
thresholds. Although
Trading Commission, Financial Authority,and goals, for revisions thereto. Such initiatives goals
Federal Reserve. Similarly, from at thebeanticipated
difficult orpace,costlyortobe accomplished may within the increasing
conflicts ofregulatory
interest can and
bemedia
complex scrutiny.
and is Itthe
is possible
subject of specific
BlackRockand isstructural initiatives
actively engaged to create additional
in regulatory, issuer-
Commission de Surveillance du time
Secteurto time, BlackRock
Financial and may implement, not advance
receives subpoenas or other requests for information from announced
at the anticipatedtimeframepace,ororatbeall. If BlackRock within
accomplished is not able
the to that actual,regulatory
increasing potential or perceived
and conflictsItcould
media scrutiny. give rise
is possible investment
specific andcapacity,
structural threshold
initiatives limits may nonetheless
to create additional
Federal Reserve. Similarly, from time to time, BlackRock
various successfully manage ESG-related expectations across to
thatinvestor
actual,or client dissatisfaction,
potential adversecould
or perceived conflicts publicity,
give rise prevent the capacity,
investment purchasethreshold
of certainlimits
securities
may which may, in
nonetheless
receivesUS state andor
subpoenas federal as well asfor
other requests non-US
information from announced timeframe or at all. If BlackRock is not able to
governmental and regulatory authorities in connection varied stakeholder
successfully manage interests, it mayexpectations
ESG-related adversely affectacross litigation
to investororor enforcement actions. Inadverse
client dissatisfaction, particular,
publicity, turn, impact
prevent the performance
the purchase of certain ofsecurities
certain BlackRock
which may, index
in
various US state and federal as well as non-US
with certain industry-wide, company-specific or other BlackRock’s
varied stakeholder reputation, ability
interests, to attract
it may and retain
adversely affectclients, BlackRock’s broad range of
litigation or enforcement investment,
actions. advisory and
In particular, funds by increasing
turn, impact tracking error
the performance relative
of certain to the funds’
BlackRock index
governmental and regulatory authorities in connection
investigations, proceedingscompany-specific
or litigations. These employees,
BlackRock’sshareholders and business
reputation, ability to attractpartners
and retain or result
clients, technology
BlackRock’sofferings,
broad range andofitsinvestment,
focus on providing
advisoryclients
and benchmarks, impacttracking
funds by increasing the performance of certain
error relative to the BlackRock
funds’
with certain industry-wide, or other
investigations, proceedings or litigations. These employees, shareholders and business partners or result technology offerings, and its focus on providing clients benchmarks, impact the performance of certain BlackRock
actively managed funds by preventing them from taking increase costs and limit the availability of products for Item 1C. Cybersecurity endpoint security, including anti-malware protection,
advantage of alpha
actively managed generating
funds opportunities,
by preventing andtaking
them from impede investors. Suchand
increase costs policy solutions
limit could, in
the availability ofturn, adversely
products for Item 1C. Cybersecurity threat intel
endpoint and response,
security, includingmanaged detection
anti-malware and
protection,
the Company’s
advantage growth.
of alpha generating opportunities, and impede affect BlackRock.
investors. Such policy solutions could, in turn, adversely CYBERSECURITY RISK MANAGEMENT A ND response,
threat intelsecurity configuration
and response, management,
managed detection and
the Company’s growth. affect BlackRock. STRATEGY
CYBERSECURITY RISK MANAGEMENT A ND portable
response,storage
securitydevice lockdown,
configuration and restricted
management,
BlackRock has been the subject of commentary citing New tax legislation or changes to existing US and non-US STRATEGY administrative
portable storageprivileges; employeeand
device lockdown, awareness,
restricted
BlackRock recognizes the importance of identifying, training, and phishing
administrative testing;
privileges; data loss
employee prevention
awareness,
concerns
BlackRockabout the scale
has been of its index
the subject investing business,
of commentary citing tax
Newlaws, treaties and
tax legislation orregulations
changes to or challenges
existing US andto non-US assessing, and managing material risks
BlackRock recognizes the importance ofassociated
identifying,with program and phishing
training, and monitoring; information
testing; security
data loss prevention
as well as about
concerns purported competition
the scale issues
of its index relating
investing to the
business, BlackRock’s historical
tax laws, treaties taxation practices
and regulations may adversely
or challenges to cybersecurity
assessing, andthreats.
managing Cybersecurity represents
material risks associatedan with incident
programreporting and monitoring;
and monitoring; andsecurity
information layered and
common
as well asownership
purported theory.
competition issues relating to the affect BlackRock’s
BlackRock’s effective
historical taxpractices
taxation rate, business and overall
may adversely important component of the Company’s approach
cybersecurity threats. Cybersecurity represents an to comprehensive access
incident reporting controls. and layered and
and monitoring;
common ownership
As a leader theory.
in the index investing and asset management financial condition.effective tax rate, business and overall
affect BlackRock’s enterprise risk management (“ERM”). Theapproach
Company
important component of the Company’s to
industry,
As a leader BlackRock
in the index hasinvesting
been the and subjectassetofmanagement
commentary financial
BlackRock’scondition.
businesses may be directly or indirectly affected leverages
enterprisearisk multi-lines-of-defense
management (“ERM”). model
The with
Company • Incident Response andcontrols.
comprehensive access Recovery Planning: The
citing concerns
industry, BlackRock about has the growth
been of indexof
the subject investing
commentary and by tax legislation
BlackRock’s and regulation,
businesses or the modification
may be directly of
or indirectly affected cybersecurity operational processesmodel
leverages a multi-lines-of-defense executed
withby global • Company has established
Incident Response and maintains
and Recovery incident
Planning: The
concentrated
citing concerns proxy
about voting power. of
the growth Someindex commentators
investing and existing tax laws, by
by tax legislation andUS or non-USortax
regulation, theauthorities.
modification of information
cybersecurity security and other
operational teamsexecuted
processes across the by firm
globaland response
Companyand has recovery plans
established that
and addressincident
maintains the
have argued that
concentrated proxycontinued
voting power.growth Someof index funds has the
commentators Legislation
existing tax at both
laws, bythe
USUS federal and
or non-US state level has been
tax authorities. dedicated
information internal
security audit
andtechnology
other teams and technology
across the firmriskand Company’s
response and response
recoverytoplans
a cybersecurity
that address incident,
the
potential
have argued to impact stock market
that continued growth competitiveness
of index fundsby has the previously
Legislationproposed
at both the to US
enact a financial
federal and state transaction
level hastax been management
dedicated internal (“TRM”)auditteams that independently
technology and technology review
risk including
Company’s processes
responsedesigned to assess,incident,
to a cybersecurity escalate,
exacerbating
potential to impact stock price
stock moves
marketand market volatility.
competitiveness by Some (“FTT”)
previouslyon stocks,
proposed bonds and aa broad
to enact financial range of financial
transaction tax technology
management risks. The Company’s
(“TRM”) teams that cybersecurity
independentlyprogram
review is contain,
includinginvestigate
processesand remediate
designed the incident,
to assess, as
escalate,
commentators,
exacerbating stock regulators and lawmakers
price moves and market have also argued
volatility. Some instruments
(“FTT”) on stocks,and derivative
bonds and transactions.
a broad range In of
thefinancial
EU, certain fully integrated
technology risks.into
TheitsCompany’s
ERM framework and is aligned
cybersecurity program with
is well as toinvestigate
contain, comply withandapplicable
remediate legal
the obligations
incident, as
that index managers
commentators, have accumulated
regulators and lawmakers outsized
have also influence
argued Member
instruments States
andhave also enacted
derivative similarIn
transactions. FTTs
the and the EC
EU, certain recognized
fully integratedframeworks, including
into its ERM NIST and
framework CSF,isFFIEC
alignedCAT,with and
well mitigate potential
as to comply reputational
with applicable damage.
legal Such
obligations
through
that index the proxy voting
managers havepower their clients
accumulated have influence
outsized assigned has
Memberproposed
States legislation
have alsoto harmonize
enacted similarthese
FTTs taxes
andandthe EC FedRAMP,
recognizedSOC 1/2, ISOincluding
frameworks, 27001/2 NISTand others. BlackRock
CSF, FFIEC CAT, plans are evaluated
and mitigate on reputational
potential a periodic basis.
damage. Such
them.
through Some have proposed
the proxy voting power limitations on the
their clients ability
have of
assigned provide for thelegislation
has proposed adoption of toEU-level
harmonize legislation
these taxes applicable
and to aims to inform
FedRAMP, SOCand 1/2,continuously
ISO 27001/2improve its cybersecurity
and others. BlackRock • plans are evaluated
Third-Party on a periodicThe
Risk Management: basis.
Company
index
them. fund
Somemanagers
have proposed to votelimitations
on behalf on of their clients,
the ability ofor some
provide (but
fornot
theall) EU Member
adoption States.
of EU-level If enactedapplicable
legislation as to program through
aims to inform and engagement
continuously with regulatory,
improve client,
its cybersecurity • maintains
Third-Party a risk-based approachThe
Risk Management: to identifying
Company and
that
indexvoting and engagement
fund managers to vote on certain
behalf of topics
theirshould
clients, or proposed,
some (but FTTs could
not all) have an adverse
EU Member States. Ifeffect
enactedon BlackRock’s
as insurer,
programvendor,
through partner, peer, government
engagement with regulatory,and industry
client, overseeing
maintains acybersecurity risks presented
risk-based approach by third
to identifying and
trigger changes
that voting in regulatoryon
and engagement status.
certainAdditional
topics should financial
proposed,results and clients’
FTTs could have an performance
adverse effect results.
on BlackRock’s organizations
insurer, vendor, and associations,
partner, as well as external
peer, government audit,
and industry parties,
overseeingincluding vendors,
cybersecurity service
risks providers,
presented by third
commentary
trigger changes focuses on the common
in regulatory ownership theory, an
status. Additional financial results and clients’ performance results. technology
organizations risk,
andinformation security
associations, and
as well asother
external audit, counterparties
parties, including and clients, service
vendors, as well as the systems of
providers,
academic
commentary theory stating
focuses thatcommon
on the minority ownership
ownership theory,
of an The Organisation for Economic Cooperation and assessments.
technology risk, information security and other third parties that
counterparties could
and significantly
clients, as well asand
the adversely
systems of
multiple
academiccompanies
theory stating within a single
that minority industry by the
ownership ofsame Development
The Organisation (“OECD”) has proposed
for Economic certainand
Cooperation international assessments. impact the Company’s
third parties that couldbusiness in the
significantly and event of a
adversely
investor
multiple leads
companies to anticompetitive
within a single effects.
industry Thisbytheory
the same tax reforms, which,
Development (“OECD”)among hasother things,
proposed wouldinternational
certain (1) shift BlackRock seeks to address cybersecurity risks through a cybersecurity incident affecting
impact the Company’s business those
in the third-party
event of a
purports to linktoaggregated
investor leads anticompetitive equityeffects.
positions Thisintheory
certain taxing rightswhich,
tax reforms, to the among
jurisdiction
otherofthings,
the consumer
would (1) andshift global,
BlackRockmultilayered strategycybersecurity
seeks to address of control programs that is a
risks through systems. Operational
cybersecurity incidentincidents
affectingcan arise
those as a result of
third-party
industries
purports towith linkhigher
aggregatedconsumerequity prices and executive
positions in certain (2) establish
taxing rights atoglobal minimum of
the jurisdiction taxtheforconsumer
multinational and designed to preservestrategy
global, multilayered the confidentiality, integrity that
of control programs and is failures
systems.by third parties
Operational with which
incidents canthe
ariseCompany does
as a result of
compensation
industries with and higherlower wages and
consumer pricesemployment
and executive rates, companies
(2) establishofa15% global (namely
minimum the tax
“Pillar
for One” and “Pillar
multinational availability
designed toofpreserve
the information that BlackRock
the confidentiality, collects
integrity and and business,
failures bysuch
thirdas failures
parties bywhich
with internet,
thecommunication
Company does
among other things.
compensation In the
and lower US, the
wages and FTC cited common
employment rates, Two” Framework).
companies of 15%EU member
(namely thestates
“Pillaradopted,
One” and or“Pillar
plan to stores by identifying,
availability preventing
of the information and
that mitigating
BlackRock collects and technology
business, such andas cloud service
failures providerscommunication
by internet, or other
ownership
among other as things.
a disqualifying
In the US, factor
the FTCin a cited
proposed
common adopt, laws implementing
Two” Framework). EU member the OECD’s minimum
states adopted, or tax
planrules
to cybersecurity threats preventing
stores by identifying, and incidents.
andAs one of the critical
mitigating vendors
technology to adequately follow processes
and cloud service providers or andother
exemption
ownership as from pre-merger notification
a disqualifying rules and as a
factor in a proposed under
adopt, thelawsPillar Two Framework,
implementing whichminimum
the OECD’s are expected to go
tax rules elements
cybersecurityof the Company’s
threats overall ERM
and incidents. framework,
As one of the critical procedures, safeguard follow
vendors to adequately their systems
processes or prevent
and
consideration
exemption from underlying
pre-merger its notification
consultationrules on rules
and applying
as a into
under effect in 2024.
the Pillar TwoSeveral other which
Framework, countries, includingtothe
are expected go BlackRock’s
elements of the cybersecurity
Company’sprogram is focused
overall ERM on the
framework, system disruptions
procedures, safeguardor cyber-attacks.
their systems Third-party
or prevent risks
to acquisitionsunderlying
consideration of voting securities
its consultationby investment
on rulesentities.
applying UK,
intohave
effectchanged
in 2024.or are considering
Several other countries,changes to their the
including tax following
BlackRock’s keycybersecurity
areas: program is focused on the are included
system within or
disruptions BlackRock’s ERMThird-party
cyber-attacks. framework,risks
and
In
to 2021, the FTC
acquisitions ofidentified common
voting securities byownership
investment asentities.
a key law
UK, to implement
have changedthe OECD’s
or are minimum
considering tax proposal.
changes to theirAs taxa following key areas:
• Governance: As discussed in more detail under the risk identification
are included withinand mitigationERM
BlackRock’s are supported
framework,byandthe
enforcement
In 2021, the FTC areaidentified
and passed commona resolution
ownershipempowering
as a key result
law to of these developments,
implement the OECD’s minimumthe tax laws taxofproposal.
certain As a • heading “Cybersecurity
Governance: As discussedGovernance” below,
in more detail the the
under Company’s cybersecurity
risk identification program.
and mitigation areBlackRock
supportedalsoby the
individual
enforcement commissioners
area and passed to investigate
a resolution shareholder
empowering countries
result of thesein which BlackRock does
developments, the tax business
laws of have
certain and may Board’s
headingoversight of cybersecurity
“Cybersecurity Governance” riskbelow,
management
the performs
Company’s diligence on certain
cybersecurity third parties
program. BlackRockandalso
conduct
individual incommissioners
connection withtocommon investigate ownership.
shareholderIn 2023, continue
countriesto inchange, and any such
which BlackRock doeschanges
businesscould haveincrease
and may is supported
Board’s by the
oversight ofRisk Committee,
cybersecurity which
risk regularly
management monitors
performs cybersecurity threatsthird
diligence on certain and parties
risks identified
and
the FTC and
conduct DOJ released
in connection withnewcommonmerger guidelinesIn 2023,
ownership. its tax liabilities.
continue to change, The and
Company
any suchis continuing
changes could to monitor
increase interacts withby
is supported the Company’s
the risk management
Risk Committee, which regularly through
monitorssuch diligence.threats and risks identified
cybersecurity
recognizing
the FTC and that DOJcommon
released ownership
new mergermay reduce
guidelines legislative developments
its tax liabilities. The Company and evaluate
is continuingthe potential
to monitor function, the Company’s Chiefrisk
Risk Officer (“CRO”)
impact
legislativeof the Pillar Two Framework
developments and evaluate on the
future periods.
potential
interacts with the Company’s management • through
Education such
and diligence.
Awareness: The Company’s
competitive
recognizing incentives.
that common Common
ownership ownership
may reducemay be given and Chiefthe
function, Information
Company’s Security Officer
Chief Risk (“CISO”),
Officer along
(“CRO”)
impact of the Pillar Two Framework on future periods. employees and contractors
• Education Awareness: are Therequired
Company’sto complete
greater consideration
competitive incentives.inCommonregulatory investigations,
ownership may bestudies,
given with other Information
and Chief members ofSecurity
management.OfficerIn(“CISO”),
addition,along
The application of tax regulations involves numerous an annual information
employees and contractorssecurity training to
are required toequip them
complete
rule proposals,
greater considerationpolicy decisions
in regulatory and/or the scrutinystudies,
investigations, of technology and cybersecurity
with other members risks areInformally
of management. addition,
uncertainties,
The application and in the
of tax normal course
regulations involves of business
numerous US with effective
an annual tools to address
information securitycybersecurity threats,
training to equip them
mergers and acquisitions.
rule proposals, policy decisionsThe debateand/oron thecommon
scrutiny of overseen
technologybyand
a dedicated management
cybersecurity risks are risk
formally
and non-US tax
uncertainties, authorities
and in the normalmay review
courseand challenge
of business UStax and
with receive
effective communications
tools to addresson the Company’s
cybersecurity threats,
ownership
mergers and is still on the agenda
acquisitions. The debate of competition
on common regulators governance
overseen by committee,
a dedicatedthe Technologyrisk
management Risk and
positions
and non-US adopted by BlackRock.
tax authorities These and
may review challenges
challenge may tax evolving
and receiveinformation security on
communications policies and procedures.
the Company’s
globally,
ownership and common
is still on theownership
agenda ofmay continueregulators
competition to be a Cybersecurity Committee
governance committee, (“TRCC”),
the which
Technology is aand
Risk
result
positionsin adjustments to, or impact
adopted by BlackRock. the timing
These challengesor amount
may evolving information security policies and procedures.
consideration
globally, and common for the EC, among others,
ownership including
may continue to in
bethe
a sub-committee of the firmwide
Cybersecurity Committee Enterprise
(“TRCC”), which is Risk
a The Company’s global information security team, in
of, taxable
result income, deductions
in adjustments to, or impactor other tax allocations,
the timing or amount
assessment
consideration offormergers
the EC,and amonginvestigations. For example,
others, including in the Committee
sub-committee(“ERC”).
of the firmwide Enterprise Risk collaboration
The Company’s with the technology
global informationrisk and internal
security team, inaudit
which may income,
of, taxable adversely affect BlackRock’s
deductions or other tax effective tax rate
allocations,
EC and European
assessment of mergersParliament reports in 2020
and investigations. Forsuggested
example,
and
which overall financial condition.
may adversely Similarly,effective
affect BlackRock’s the Companytax rate • Committee (“ERC”).Approach: The Company has
Cross-Functional teams, engages
collaboration in the technology
with periodic assessment and testing
risk and internal auditof
that
EC andmore evidence
European was required
Parliament on the
reports impact
in 2020 of common
suggested the Company’s
teams, engagescyberin therisks and cybersecurity
periodic assessment and program.
testing of
manages
and overall assets in products
financial condition. and accounts
Similarly, that
the have
Company • implemented a global,
Cross-Functional cross-functional
Approach: The Companyapproach
has to
ownership on competition,
that more evidence and a on
was required committee
the impact of the
of common These efforts may
the Company’s include
cyber risks aand
wide range of activities,
cybersecurity program.
investment
manages assets objectives which and
in products mayaccounts
conform to thattaxhave
positions identifying,
implemented preventing, and mitigating cybersecurity
a global, cross-functional approach to
Australian
ownership House of Representatives
on competition, and a committee held an of inquiry
the in including audits,
These efforts mayassessments,
include a wide wargames and “tabletop”
range of activities,
adopted
investment by BlackRock
objectives which or to specific
may conform tax rules. To the
to tax extent
positions threats and preventing,
identifying, incidents, while also implementing
and mitigating cybersecurity
2021 on the
Australian implications
House of commonheld
of Representatives ownership andin
an inquiry exercises, threat modeling,
including audits, assessments, vulnerability
wargames testing and other
and “tabletop”
there
adopted areby changes
BlackRock in taxorlaw or policy,
to specific taxorrules.
regulatory
To the extent layered preventative,
threats and incidents,detective,
while alsoreactive and recovery
implementing
capital
2021 on concentration
the implications on Australian
of common companies
ownershipand and exercises
exercises,focused on evaluating
threat modeling, the effectiveness
vulnerability testing andof other
the
challenges
there are changesto tax positions
in tax lawadopted
or policy, byorBlackRock,
regulatorythe controls to identify and
layered preventative, managereactive
detective, cybersecurity risks.
and recovery
markets. In 2023, the UK
capital concentration Competition
on Australian & Marketsand
companies Authority Company’s cybersecurity
exercises focused measures
on evaluating the and planning. of the
effectiveness
value or attractiveness
challenges to tax positions of such investments
adopted may bethe
by BlackRock, controls to identify and manage cybersecurity
• Safeguards: The Company deploys a range of people,risks.
(“CMA”)
markets.established
In 2023, theaUK new economic research
Competition & Markets unit which
Authority BlackRock
Company’salso participates
cybersecurity in financial
measures andservices
planning.industry
diminished and BlackRock
value or attractiveness mayinvestments
of such suffer financial mayorbe • process and technical
Safeguards: controls
The Company that aare
deploys designed
range to
of people,
identified common ownership
(“CMA”) established a new economic as a potential
research research
unit which topic. and government
BlackRock forums in an
also participates in effort to improve
financial servicesboth
industry
reputational
diminished and harm.BlackRock may suffer financial or protect
processthe
andCompany’s information
technical controls that systems from to
are designed
There is substantial
identified common ownershipliterature casting doubt on
as a potential the topic.
research internal and sector
and government cybersecurity
forums defense.
in an effort The Company
to improve both
reputational harm. cybersecurity threats, which
protect the Company’s may include,
information systemsamong
from
assumptions,
There is substantial data, methodology
literature casting and conclusions
doubt on the regularly engages
internal and sectorthird parties and
cybersecurity advisors
defense. ThetoCompany
assess its
associated
assumptions, with the methodology
data, common ownership theory and
and conclusions others: physical
cybersecurity security
threats, controls;
which perimeter
may include, controls,
among
competition
associated with regulators,
the common including at the FTC
ownership theoryandandCMA,
Item 1B. Unresolved Staff including technical
others: physical assessments,
security controls; firewalls,
perimeternetwork
controls,
cybersecurity
regularly engagescontrol environment.
third parties and The results
advisors to of certain
assess its
have acknowledged
competition regulators,thatincluding
the debate at around
the FTCthe andtheory
CMA,
Item 1B. Unresolved Staff
Comments segregation, intrusion
including technical detection and
assessments, prevention;
firewalls, network
program
Committee,
and control
cybersecurity
program andand
control assessments
environment.are
BlackRock
control adjustsare
assessments
Thereported tocertain
results of
its cybersecurity
the Risk
reported to the Risk
remains unsettled. Nevertheless,
have acknowledged that the debate some commentators
around the theory have Comments tabletop exercises;
segregation, ongoing
intrusion vulnerability
detection and patch
and prevention; program
Committee,as appropriate
and BlackRock based on the
adjusts itsinformation
cybersecurity
The Company has no unresolved comments from the management; vendor
tabletop exercises; due diligence;
ongoing multi-factor
vulnerability and patch
proposed remedies,Nevertheless,
remains unsettled. including limits some on commentators
the ownership have provided
program as by appropriate
these assessments.
based on the information
Securities
The Company andhas
Exchange Commission
no unresolved (“SEC”)
comments staff
from the authentication; devicedue
management; vendor encryption;
diligence;application
multi-factor
stakes
proposed of common
remedies,owners includingthat,limits
if enacted
on theinto policy, could
ownership provided by these assessments.
relating to and
Securities BlackRock’s
Exchangeperiodic or current
Commission reports
(“SEC”) stafffiled security, code testing
authentication; deviceand penetration
encryption; testing;
application
have
stakes a of
negative
common impact
ownerson that,
the capital
if enactedmarkets, as wellcould
into policy, as
with the to
relating SEC pursuant to
BlackRock’s the Exchange
periodic Act.
or current reports filed security, code testing and penetration testing;
have a negative impact on the capital markets, as well as
with the SEC pursuant to the Exchange Act.
As of December 31, 2023, BlackRock is not aware of any BlackRock’s cybersecurity risk management and strategy
PART II The following table sets forth for the periods indicated the
cybersecurity
As of December
reasonably
cybersecurity
risks
likely
31,that
2023,
tothat
risks
have
materially
materially
BlackRock affected
is not awareorofare
affect BlackRock’s
have materially affected or
any
business
are
processes,
BlackRock’swhich
led by the Company’s
processes,
are discussed
cybersecurity
CISO. As of
which are discussed
in greater detail
risk management
inDecember
andabove,
31, 2023,
greater detail
are
strategy
above,the
are
PART II dividends declared
The following
reported
dividendson
table per
setsshare
the NYSE:
declared
forth for the common stock as the
periods indicated
per share for the common stock as
strategy,
reasonablyresults
likelyof
tooperations, or financial
materially affect condition.
BlackRock’s For
business CISO
led byhad
the over 30 years
Company’s of experience
CISO. in information
As of December 31, 2023, the reported on the NYSE:
additional information
strategy, results on whether
of operations, and howcondition.
or financial risks fromFor technology
CISO had over with 30a years
25-year concentration
of experience in information
in information Item 5. Market for Registrant’s Cash
cybersecurity threats are
additional information onreasonably
whether and likely
howtorisks
materially
from security,
technologyincluding previously
with a 25-year serving as the
concentration CISO at
in information Item 5. Market
Common forRelated
Equity, Registrant’s Dividend
Cash
affect BlackRock,
cybersecurity see are
threats “A cyber-attack or a failure
reasonably likely to
to materially several
security,global financial
including institutions.
previously servingHe asalso
the holds
CISO atthe Declared
Dividend
implement effective
affect BlackRock, seeinformation and cybersecurity
“A cyber-attack or a failure to Certified Information
several global Systems
financial Security
institutions. He Professional
also holds the
Common Equity,
Stockholder Related
Matters and Issuer 2023
Declared
policies,
implement procedures and capabilities
effective information and could disrupt
cybersecurity certification. The CISOSystems
Certified Information works closely
Securitywith the leadership
Professional Stockholder Matters and Issuer
Purchases of Equity Securities 2023
First Quarter $5.00
operations and lead to
policies, procedures andfinancial losses
capabilities and disrupt
could reputational team and other
certification. Thesubject matter
CISO works experts
closely in the global
with leadership
harm, whichand
operations may cause
lead BlackRock’s
to financial lossesAUM,
andrevenue and
reputational cybersecurity
team and other group, who
subject collectively
matter experts have extensive
in the global prior Purchases of Equity Securities First Quarter
Second Quarter $5.00
BlackRock’s common stock is listed on the NYSE and is Second
Third Quarter
Quarter $5.00
earnings
harm, whichto decline.”
may cause under Part I, Item
BlackRock’s 1A, revenue
AUM, Risk Factors
and work experience
cybersecurity in various
group, roles involving
who collectively havemanaging
extensive prior traded undercommon
the symbol “BLK”. At the
BlackRock’s stock is listed onclose of business
the NYSE and is on Third Quarter
Fourth Quarter $5.00
herein.
earnings to decline.” under Part I, Item 1A, Risk Factors information
work experiencesecurity, developing
in various cybersecurity
roles involving strategy,
managing January 31, 2024, there were 197
traded under the symbol “BLK”. Atcommon
the closestockholders
of business on Fourth Quarter $5.00
herein. implementing effective
information security, information
developing and cybersecurity
cybersecurity strategy, 2022
of record.31,
January Common stockholders
2024, there were 197include
common institutional
stockholdersor
programs
implementingand effective
overseeing cybersecurity
information and controls in
cybersecurity 2022
First Quarter $4.88
CYBERSECURITY GOVERNANCE omnibus
of record.accounts
Commonthat hold common
stockholders stock
include for many or
institutional
CYBERSECURITY GOVERNANCE technology
programs and riskoverseeing
and audit functions,
cybersecurity as well as having
controls in underlying investors.
First Quarter
Second Quarter $4.88
omnibus accounts that hold common stock for many
BlackRock’s Board of Directors is actively engaged in the relevant
technologydegrees
risk andandaudit
industry-leading
functions, ascertifications.
well as having Second
Third Quarter
Quarter $4.88
underlying investors.
oversight
BlackRock’s of BlackRock’s risk management
Board of Directors program.
is actively engaged inThe
the relevant degrees and industry-leading certifications. Third Quarter $4.88
Fourth Quarter
Risk Committee
oversight assists the
of BlackRock’s riskBoard with its oversight
management program.ofThe the The CISO and members of the TRCC monitor the
Fourth Quarter $4.88
Company’s
Risk Committeelevelsassists
of risk,the
riskBoard
assessment, risk
with its oversight of the prevention,
The CISO and detection,
members mitigation
of the TRCC andmonitor
remediation
the of
The closing price of BlackRock’s common stock as of
management
Company’s levels andof related policies
risk, risk and processes,
assessment, risk cybersecurity incidentsmitigation
prevention, detection, through their managementofof, and
and remediation
February 22,price
The closing 2024ofwas $813.44. common stock as of
BlackRock’s
including
management risksand
arising from
related cybersecurity
policies threats. The Risk
and processes, participation
cybersecurityin, the cybersecurity
incidents through their riskmanagement
managementof, and
February 22, 2024 was $813.44.
Committee receives
including risks arisingregular reports on thethreats.
from cybersecurity Company’s The Risk processes
participationdescribed above, including
in, the cybersecurity risk the operation of
management
cybersecurity program,
Committee receives technology
regular reportsresilience risk
on the Company’s BlackRock’s incident above,
processes described response plan. the operation of
including DIVIDENDS
management and related
cybersecurity program, developments
technology from risk
resilience members of BlackRock’s incident response plan. DIVIDENDS
On January 12, 2024, the Board of Directors approved
the Company’sand
management information security team,
related developments including
from members the of BlackRock’s quarterly
On January 12, dividend
2024, the Boardofof$5.10 per share
Directors to be
approved
CISO. The Boardinformation
the Company’s and the Risk Committee
security team,also receivethe
including Item 2. Properties paid on March
BlackRock’s 22, 2024
quarterly to stockholders
dividend of record
of $5.10 per share at
to the
be
information
CISO. The Boardregarding
and thecybersecurity
Risk Committee incidents that meet
also receive Item 2. Properties close of March
paid on business
22,on March
2024 7, 2024.
to stockholders of record at the
certain reporting
information thresholds.
regarding On an annual
cybersecurity incidents basis, senior
that meet BlackRock’s principal office, which is leased, is located at close of business on March 7, 2024.
members of BlackRock’s
certain reporting thresholds.technology, risk and
On an annual information
basis, senior 50 Hudson Yards,
BlackRock’s Newoffice,
principal York, which
New York. BlackRock
is leased, leases
is located at
additional
50 Hudsonoffice
Yards,space
New throughout the world,
York, New York. including
BlackRock leases ISSUER PURCHASES OF EQUITY SECURITIES
security
membersteams provide a comprehensive
of BlackRock’s technology, riskoverview of
and information
Atlanta,
additionalBelgrade (Serbia),
office space Budapest,
throughout theEdinburgh, Gurgaon
world, including ISSUER
During thePURCHASES OF EQUITY
three months ended SECURITIES
December 31, 2023, the Company made the following purchases of its common stock,
BlackRock’s
security teams cyber risk and
provide related programs
a comprehensive to a joint
overview of
session of the
BlackRock’s Board’s
cyber risk Risk and Audit
and related Committees.
programs to a joint (India),
Atlanta,Hong Kong,
Belgrade London,
(Serbia), Mumbai Edinburgh,
Budapest, (India), Princeton
Gurgaon which
Duringisthe
registered pursuant
three months to Section
ended December12(b)
31,of2023,
the Exchange Act. made the following purchases of its common stock,
the Company
session of the Board’s Risk and Audit Committees. (New Jersey),
(India), San Francisco
Hong Kong, London, and Singapore.
Mumbai (India),The Company
Princeton which is registered pursuant to Section 12(b) of the Exchange Act.
Technology and cybersecurity risks at BlackRock are also also
(Newowns an 84,500
Jersey), square and
San Francisco foot Singapore.
office building
The in
Company Maximum
overseen
Technology by and
the TRCC, a dedicated
cybersecurity risksmanagement
at BlackRock risk are also Wilmington,
also owns anDelaware and a foot
84,500 square 43,000 square
office foot in
building data Number
Maximum of
governance
overseen by committee
the TRCC, aand sub-committee
dedicated management of therisk center in Amherst,
Wilmington, Newand
Delaware York.
a 43,000 square foot data Shares
NumberThat
of
Total Number of May YetThat
Shares Be
firmwide
governance ERC. The chairand
committee of the TRCC is appointed
sub-committee of the by the center in Amherst, New York. Total Shares Purchased Purchased
Total Number of May Yet Be
head of Enterprise
firmwide ERC. The chairRisk Management
of the TRCC isatappointed
the Company and
by the Number
Total of Average as Part Purchased
Shares of Publicly Under the
Purchased
its
headmembers include
of Enterprise theManagement
Risk CISO as well as a broad
at the rangeand
Company of Item 3. Legal Proceedings Sharesof
Number Price Paid
Average Announced
as Plans
Part of Publicly Plans the
Under or
senior business
its members stakeholders
include the CISOacross
as wellBlackRock.
as a broad The rangeTRCC
of Item 3. Legal Proceedings Purchased
Shares
(1) per Share
Price Paid or Programs
Announced Plans Programs
Plans or
(1)
is responsible
senior business forstakeholders
oversight of across
BlackRock’s technology
BlackRock. and
The TRCC For a discussion of the Company’s legal proceedings, see Purchased(1) per Share or Programs Programs(1)
October 1, 2023 through October 31, 2023 211,477 $616.97 208,564 6,087,167
cybersecurity
is responsiblerisk management
for oversight practices and
of BlackRock’s helps and
technology Note
For a 15, Commitments
discussion and Contingencies,
of the Company’s in the notes
legal proceedings, to
see
October
November1, 2023 through
1, 2023 October
through 31, 2023
November 30, 2023 211,477
328,204 $616.97
$689.24 208,564
326,240 6,087,167
5,760,927
ensure that technology
cybersecurity and cybersecurity
risk management practices andriskshelps
remain the consolidated
Note financial
15, Commitments andstatements contained
Contingencies, in the in Partto
notes II,
November
December 1, 2023 through December
November 31,
30, 2023 328,204
31,900 $689.24
$759.41 326,240
28,312 5,760,927
5,732,615
within
ensurefirmwide risk tolerances
that technology and technology
and cybersecurity risks andremain Item 8.
the consolidated financial statements contained in Part II,
December
Total 1, 2023 through December 31, 2023 31,900
571,581 $759.41
$666.42 28,312
563,116 5,732,615
cybersecurity
within firmwide risk issues
risk are escalated
tolerances as appropriate
and technology and to Item 8.
Total 571,581 $666.42 563,116
the ERC and other
cybersecurity committees.
risk issues The TRCC
are escalated also reviewsto
as appropriate any (1) Consists of purchases made by the Company primarily to satisfy income tax withholding obligations of employees and members of the Company’s Board of Directors related to the vesting of
relevant technology
the ERC and and cybersecurity
other committees. The TRCC riskalso
related issues
reviews any Item 4. Mine Safety Disclosures certain restricted
(1) Consists stockmade
of purchases or restricted stock unitprimarily
by the Company awards and purchases
to satisfy made
income taxby the Company
withholding as part of
obligations ofthe share repurchase
employees and membersprogram
of thethat the Company
Company’s Boardannounced
of Directorsinrelated
July 2010,
to thewhich initially
vesting of
and helps
relevant ensure that
technology andthey are appropriately
cybersecurity escalated,
risk related issues Item 4. Mine Safety Disclosures authorized
certain the repurchase
restricted of 5.1 million
stock or restricted stockshares with noand
unit awards stated expiration.
purchases madeInbyJanuary 2023, the
the Company Company
as part of the announced that the
share repurchase Board of
program Directors
that authorized
the Company the repurchase
announced of an additional
in July 2010, which initially
reported,
and helpsand remediated.
ensure that they are appropriately escalated, Not applicable. seven million
authorized theshares under of
repurchase the5.1
Company’s existing
million shares withshare repurchase
no stated program,
expiration. for a total
In January 2023,of up
thetoCompany
approximately 7.9 million
announced shares
that the of of
Board BlackRock
Directorscommon stock.
authorized the repurchase of an additional
reported, and remediated. Not applicable. seven million shares under the Company’s existing share repurchase program, for a total of up to approximately 7.9 million shares of BlackRock common stock.
Item 6. [Reserved]
Item 6. [Reserved]
operational control environment or the potential for Acquisitions independence in many parts of the world supported by
Item 7. Management’s Discussion human errorcontrol
operational in connection with BlackRock’s
environment or the potential operational
for Acquisitions decarbonization
independence ininfrastructure.
many parts of the world supported by
Item 7. Management’s
and Analysis Discussion
of Financial Condition systems;
human error (14)in the impact of with
connection legislative and regulatory
BlackRock’s operational In August 2023, BlackRock completed the acquisition of decarbonization infrastructure.
and
and Results of OperationsCondition
Analysis of Financial actions
systems;and (14) reforms,
the impact regulatory, supervisory
of legislative or
and regulatory Kreos Capital,
In August
financing
2023,a provider
BlackRock
to companies
of growth
completed andtheventure debt of
acquisition The need for new infrastructure coupled with record high
government
The need for deficits indicates that the mobilization
with recordof
enforcement
actions and reforms,actions regulatory,
of government agenciesorand
supervisory Kreos Capital, a providerin ofthe technology
growth and healthcare
and venture debt new infrastructure coupled high
and Results of Operations governmental
enforcement actions scrutiny ofrelating
government to BlackRock;
agencies(15) and changes industries
financing to (the “Kreos Transaction”).
companies The acquisition
in the technology adds
and healthcare capital
governmentthrough public-private
deficits indicates that partnerships will be critical,
the mobilization of
in law and policy
governmental and uncertainty
scrutiny relating topending
BlackRock; any(15)
such changes to BlackRock’s
industries (the position as a leading global
“Kreos Transaction”). credit asset
The acquisition adds and willthrough
capital create compelling
public-private investment
partnershipsopportunities for
will be critical,
FORWARD-LOOKING STATEMENTS manager and advances
to BlackRock’s its aambitions
position as to provide
leading global creditclients
asset clients.
and willThecreateCompany
compellingbelieves these dynamics
investment offer for
opportunities
changes;
in law and(16) anyand
policy failure to effectively
uncertainty pending manage conflicts of
any such
FORWARD-LOOKING STATEMENTS with a diverse
manager range of private
and advances marketto
its ambitions investment
provide clients clients
clients.–Thecurrent
Company cashflow, inflation-protected,
believes these dynamics long- offer
This report, and other statements that BlackRock may interest;
changes;(17) (16)damage
any failureto BlackRock’s
to effectivelyreputation;
manage conflicts of
(18) increasing
interest; focus from
(17) damage stakeholders
to BlackRock’s regarding ESG
reputation; products and solutions.
with a diverse Total consideration
range of private market investment for the duration investments.
clients – current cashflow, inflation-protected, long-
make, may contain
This report, and other forward-looking
statements that statements
BlackRock within
may the
matters; (19) geopolitical
(18) increasing focus fromunrest, terroristregarding
stakeholders activities,ESG civil or transaction
products and was approximately
solutions. $250 million,for
Total consideration which
the duration investments.
meaning
make, may ofcontain
the Private Securities Litigation
forward-looking statements Reformwithin Act,
the The planned combination of GIP with BlackRock’s
international hostilities, and
matters; (19) geopolitical otherterrorist
unrest, events outside
activities, civil or included contingent
transaction consideration.
was approximately $250 million, which
with respect
meaning of the to BlackRock’s
Private Securities futureLitigation
financial or business
Reform Act, complementary
The planned combination infrastructureof GIP offerings will create a broad
with BlackRock’s
BlackRock’s
internationalcontrol, including
hostilities, and other wars, natural
events disasters and
outside included contingent consideration.
performance,
with respect tostrategiesBlackRock’s or expectations.
future financial Forward-looking
or business In January 2024, BlackRock announced that it had global infrastructure
complementary franchise offerings
infrastructure with differentiated
will create a broad
statements
performance, are typically identified
strategies or expectations. by words or phrases
Forward-looking health crises,control,
BlackRock’s which may adversely
including wars,affect
naturalthedisasters
general and entered into
In January a definitive
2024, agreement
BlackRock announcedto acquire
that it100%
had of the origination and assetfranchise
global infrastructure management with capabilities.
differentiated Marrying
such as “trend,”
statements “potential,”
are typically “opportunity,”
identified by words “pipeline,”
or phrases economy,
health crises, domestic
which and maylocal financial
adversely affectandthe capital
general business andaassets
entered into of GIP,
definitive a leading
agreement toindependent
acquire 100% of the the proprietary
origination andorigination
asset management and business improvement
capabilities. Marrying
“believe,” “comfortable,”
such as “trend,” “potential,”“expect,” “anticipate,”
“opportunity,” “current,”
“pipeline,” markets,
economy,specific
domestic industries
and local orfinancial
BlackRock; and(20) climate-
capital infrastructure fund manager,
business and assets for $3 billion
of GIP, a leading in cash and
independent capabilities
the proprietary of GIP and BlackRock’s
origination and businessglobal corporate and
improvement
“intention,” “estimate,” “position,”
“believe,” “comfortable,” “assume,” “outlook,”
“expect,” “anticipate,” “current,” related
markets, risks to BlackRock’s
specific industries business,
or BlackRock; products, operations
(20) climate- approximately
infrastructure fund12 million shares
manager, for of
$3BlackRock common
billion in cash and sovereign
capabilities relationships is expected global
of GIP and BlackRock’s to provide a platform
corporate and
“continue,”
“intention,” “remain,”
“estimate,” “maintain,”
“position,”“sustain,”
“assume,”“seek,” “outlook,” and clients;
related risks(21) the ability to
to BlackRock’s attract, train
business, and retain
products, operations stock. Approximately
approximately 30%shares
12 million of the of
total consideration,
BlackRock common all in for diversified,
sovereign large-scale
relationships sourcing to provide
is expected supportadeal flow
platform
“achieve,”
“continue,”and similar“maintain,”
“remain,” expressions, or future“seek,”
“sustain,” or conditional highly qualified
and clients; (21)and diversetoprofessionals;
the ability attract, train and retain stock,
stock. will be deferred30%
Approximately and will be total
of the issued subject to the
consideration, all in and co-investment
for diversified, opportunities
large-scale sourcing fortoclients.
support The Company
deal flow
verbs suchand
“achieve,” as “will,”
similar “would,”
expressions,“should,” “could,”
or future or “may” and
conditional (22)
highlyfluctuations
qualified and in the carrying
diverse value of BlackRock’s
professionals; satisfaction
stock, will beof certain and
deferred post-closing events.
will be issued The Company
subject to the believes that bringing
and co-investment GIP and BlackRock
opportunities for clients. together will
The Company
similar
verbs suchexpressions.
as “will,” “would,” “should,” “could,” “may” and economic investments;
(22) fluctuations (23) the impact
in the carrying value ofofBlackRock’s
changes to tax intends to fund
satisfaction the cash
of certain consideration
post-closing through
events. $3 billion
The Company deliver
believestothatclients the benefits
bringing GIP andofBlackRock
broader origination
together will and
similar expressions. legislation, including income,
economic investments; (23) the payroll
impact andof transaction
changes to tax of additional
intends to funddebt.
theThe
cashCompany believes
consideration the combination
through $3 billion business
deliver to improvement
clients the benefitscapabilities.
of broader origination and
BlackRock cautions that forward-looking statements are taxes, and taxation
legislation, including onincome,
products, which
payroll could
and affect the
transaction of GIP with BlackRock’s
additional complementary
debt. The Company believesinfrastructure
the combination business improvement capabilities.
subject
BlackRock to numerous
cautions that assumptions,
forward-looking risks and uncertainties,
statements are value
taxes,proposition
and taxationtoon clients and, generally,
products, which could theaffect
tax position
the offerings
of GIP withwill create a broad
BlackRock’s global infrastructure
complementary infrastructure BlackRock’s investment management revenue is primarily
which
subjectchange
to numerous over time. Forward-looking
assumptions, risks and statements
uncertainties, of the proposition
value Company; (24) BlackRock’s
to clients success in
and, generally, thenegotiating
tax position franchise withcreate
offerings will differentiated origination
a broad global and asset
infrastructure comprised
BlackRock’sofinvestment
fees earnedmanagement
as a percentage of AUM
revenue and, in
is primarily
speak
which only
change as of over thetime.
dateForward-looking
they are made, and BlackRock
statements distribution
of the Company; arrangements and maintaining
(24) BlackRock’s success indistribution
negotiating management
franchise withcapabilities.
differentiated The GIP Transaction
origination and assetis expected some cases,ofperformance
comprised fees earned as fees, which are normally
a percentage of AUM and, in
assumes
speak only noasduty of the to and
datedoes they notare undertake
made, andto update
BlackRock channels
distribution forarrangements
its products; (25) andthe failure by distribution
maintaining key third- to close in thecapabilities.
management third quarterThe of 2024 subject to customary
GIP Transaction is expected expressed
some cases, asperformance
a percentagefees, of fund
whichreturns to the client.
are normally
forward-looking
assumes no dutystatements. to and doesActual results could
not undertake to updatediffer party
channelsproviders
for its of BlackRock
products; (25) tothe
fulfill theirby
failure obligations
key third- to regulatory approvals
to close in the and other
third quarter closing
of 2024 conditions.
subject to customary Numerous
expressed as factors, including
a percentage ofprice
fund movements
returns to the inclient.
the
materially
forward-looking from those anticipated
statements. Actual inresults
forward-looking
could differ the
partyCompany;
providers(26) operational,
of BlackRock to technological and
fulfill their obligations to regulatory approvals and other closing conditions. equity,
Numerous debtfactors,
or currency markets,
including priceormovements
in the pricein ofthe
real
statements
materially from and those futureanticipated
results could differ materially from
in forward-looking regulatory
the Company; risks associated
(26) withtechnological
operational, BlackRock’s major and assets, commodities
equity, debt or currency or alternative
markets, orinvestments
in the price of in real
which
historical
statements performance.
and future results could differ materially from B u s ines s Out lo o k
technology
regulatory risks partnerships;
associated (27)
with any disruptionmajor
BlackRock’s to the BlackRock invests onor
assets, commodities behalf of clients,
alternative and BlackRock’s
investments in which
historical performance. B u s ines s Out lo o k
operations
technologyof third parties(27)
partnerships; whose anyfunctions
disruption are
to integral
the to BlackRock’s strategy continues to be guided by the ability
BlackRockto maintain
invests on strong investment
behalf of clients,performance,
and BlackRock’s could
BlackRock has previously disclosed risk factors in its
BlackRock’s
operations ofETF platform;
third (28) the
parties whose impact ofare
functions BlackRock
integral to Company’s
BlackRock’sclients’
strategy needs and focus
continues to beon the long-term,
guided by the impact
ability toBlackRock’s
maintain strong AUM, investment
revenue andperformance,
earnings. could
Securities
BlackRockand has Exchange
previouslyCommission
disclosed risk(“SEC”) factorsreports.
in its
electing
BlackRock’sto provide support(28)
ETF platform; to itstheproducts
impact from time to
of BlackRock which the Company
Company’s believes
clients’ needs andbetter
focusenables it to deliver
on the long-term, impact BlackRock’s AUM, revenue and earnings.
These risk and
Securities factors and those
Exchange identified (“SEC”)
Commission elsewhere in this
reports. Recently, central banks globally have paused raising
time andto
electing any potential
provide liabilities
support to its related
products to from
securities
time to durable
which the returns
Company for shareholders
believes better and create itvalue
enables for all of
to deliver
report, among
These risk factors others,and could
those cause actual
identified results to
elsewhere in differ
this interest
Recently,rates,
centralafter a rapid
banks rate hiking
globally regime raising
have paused in 2022 and
lending
time andorany other indemnification
potential obligations;
liabilities related and (29) the
to securities its stakeholders.
durable returns for shareholders and create value for all of
materially
report, among fromothers,forward-looking
could cause statements
actual results or historical
to differ much
interestofrates,
2023 after
in anaeffort
rapidto moderate
rate inflation.
hiking regime in 2022 and
impact
lendingof orproblems, instability orobligations;
other indemnification failure of other andfinancial
(29) the its stakeholders.
performance
materially from and include: (1) thestatements
forward-looking introduction, withdrawal,
or historical BlackRock’s framework for long-term shareholder value BlackRock’s
much of 2023 business is directly
in an effort and indirectly
to moderate inflation.affected by
institutions or the failure
impact of problems, or negative
instability performance
or failure of
of other financial
success
performance and timing of business
and include: (1) theinitiatives
introduction, and strategies;
withdrawal, creation
BlackRock’s is predicated
frameworkon forgenerating
long-termdifferentiated
shareholder value organic changes
BlackRock’s in global
business interest rates. and
is directly Changes in global
indirectly affected by
products
institutions offered
or theby otheror
failure financial
negative institutions.
performance of
(2) changes
success andand timing volatility in political,
of business economic
initiatives or industry
and strategies; growth,
creationleveraging
is predicated scale
onto increase operating
generating margins
differentiated organic interest
changesrates may interest
in global cause BlackRock’s
rates. Changes AUMintoglobal
fluctuate
products offered by other financial institutions.
conditions,
(2) changesthe andinterest
volatilityratein environment,
political, economic foreign or industry over time,
growth, and returning
leveraging scale capital
to increaseto shareholders on a
operating margins and introduce
interest rates may volatility
causetoBlackRock’s
the Company’s AUMbase fees, net
to fluctuate
exchange
conditions,rates or financial
the interest rateand capital markets,
environment, foreignwhich OVERVIEW consistent
over time, and basis. BlackRock’s
returning capital diversified platform,
to shareholders onin a terms income and operating
and introduce volatilitycash
to the flows. BlackRock’s
Company’s base business
fees, net
could
exchangeresult ratesin changes
or financialin demand
and capital for products
markets,or services
which OVERVIEW of style, product,
consistent basis. client and geography,
BlackRock’s diversifiedenables
platform,it toin terms may
incomealsoand be operating
impacted by cashgovernmental
flows. BlackRock’schanges, as well
business
or in the
could value
result in of AUM; (3)
changes the relative
in demand forand
productsabsolute or services BlackRock, Inc. (together, with its subsidiaries, unless the generate more stable
of style, product, clientcash
and flows through
geography, marketitcycles,
enables to as
maypotential
also be regulations,
impacted byforeign and trade
governmental policiesasand
changes, well
investment
or in the value performance
of AUM; (3)ofthe BlackRock’s
relative and investment
absolute context
BlackRock,otherwise indicates,
Inc. (together, “BlackRock”
with or theunless the
its subsidiaries, positioning
generate more BlackRock to invest
stable cash flowsfor the long-term
through by
market cycles, fiscal spending
as potential that mayforeign
regulations, arise asand a result
tradeofpolicies
such changes.
and
products;
investment (4)performance
BlackRock’sof ability to develop
BlackRock’s new products
investment “Company”) is a leading
context otherwise publicly
indicates, traded investment
“BlackRock” or the striking
positioningan appropriate
BlackRock to balance
invest between investingby
for the long-term for See Part
fiscal I, Item 1A,
spending thatRisk
mayFactors
arise asherein
a result forof
information
such changes. on
and services
products; (4) that address ability
BlackRock’s client preferences;
to develop new (5)products
the management
“Company”) isfirm with $10.0
a leading trillion
publicly of AUM
traded at
investment future
strikinggrowth and prudent
an appropriate discretionary
balance between expense
investing for the
See possible
Part I, Item future effects
1A, Risk of changes
Factors hereinin forglobal intereston
information
impact of increased
and services that addresscompetition; (6) the impact
client preferences; (5) of
the future December
management 31,firm
2023. With
with approximately
$10.0 trillion of AUM19,800
at management.
future growth and prudent discretionary expense rates and governmental
the possible future effects changes
of changeson the in Company’s
global interest
acquisitions
impact of increased or divestitures,
competition; including
(6) the theimpact
acquisition of
of future employees
December 31, in more
2023.thanWith30 countries, BlackRock
approximately 19,800 provides management. results.
rates and governmental changes on the Company’s
Global Infrastructure
acquisitions Management,
or divestitures, including LLCthe(referred
acquisition to of a broad range
employees of investment
in more management
than 30 countries, and technology
BlackRock provides In January 2024, BlackRock announced two changes in results.
herein BlackRock manages $2.8 trillion in fixed income assets,
Global as Global Infrastructure
Infrastructure Management, Partners LLC (“GIP”)
(referred or to
the “GIP services to institutional
a broad range of investmentand retail clients inand
management more than 100
technology anticipation
In January 2024, of theBlackRock
evolution announced
the Company two sees aheadinfor
changes
Transaction”); (7)Infrastructure
BlackRock’s ability to integrate nearly
BlackRocktwo-thirds
manages of which are owned
$2.8 trillion in fixedby institutions
income assets, for
herein as Global Partners (“GIP”) oracquired
the “GIP countries
services toacross the globe.
institutional andFor further
retail information
clients in more thansee100 asset management
anticipation and the capital
of the evolution markets.
the Company First,
sees ahead for
businesses successfully, including GIP; (8) risks related to strategic or liability-matching
nearly two-thirds of which are owned purposes. BlackRock for
by institutions
Transaction”); (7) BlackRock’s ability to integrate acquired Note 1, Business
countries across theOverview,
globe. and Note 26,
For further Segment see
information BlackRock believes that
asset management and the strategic re-architecture
capital markets. First, of the
the GIP Transaction, including the possibility that the GIP believes
strategicitorisliability-matching
well positioned forpurposes.
a stabilizing rate
BlackRock
businesses successfully, including GIP; (8) risks related to Information,
Note 1, Business in the notes toand
Overview, the consolidated
Note 26, Segmentfinancial organization
BlackRock believesto embed thatits
the ETF and Index
strategic expertise across
re-architecture of the
Transaction does notincluding
close, thethe failure to satisfy the environment
believes it is wellduepositioned
to the breadth, for a diversification
stabilizing rateand
the GIP Transaction, possibility that the GIP statements
Information,contained
in the notes in Part
to theII,consolidated
Item 8. financial the entire firmtowill
organization simplify
embed its ETFandandimprove
Indexhow the Company
expertise across
closing conditions, the possibility that expected investment
environmentperformance of its fixed
due to the breadth, income platform
diversification and
Transaction does not close, the failure to satisfy synergies
the statements contained in Part II, Item 8. works andfirm
the entire delivers for clients.
will simplify andSecond,
improve the
howCompany
the Companyalso
and value creation from the GIP Transaction willsynergies
not be The following discussion includes a comparison of which encompasses
investment performance active,
of exchange-traded
its fixed income platform funds
closing conditions, the possibility that expected believes
works and that the acquisition
delivers for clients.ofSecond,
GIP willthepropel its
Company also
realized, BlackRock’s
The followingresults for 2023
discussion and 2022.
includes For a discussion
a comparison of of (“ETFs”) and non-ETFactive,
which encompasses indexexchange-traded
fixed income products, funds and a
and valueorcreation
will not from be realized
the GIP within the expected
Transaction will not time
be leadership
believes that in the
the acquisition
fast-growing ofmarket
GIP willfor hard-asset
propel its
period, BlackRock’s results for 2021 2023 and a comparison
2022. of resultsof
For a discussion range
(“ETFs”)of and
strategies,
non-ETF including
index fixed unconstrained,
income products, high yield,
and a
realized,and impacts
or will not be torealized
business and operational
within the expected time infrastructure.
leadership in the fast-growing market for hard-asset
relationships relatedto tobusiness
disruptions for 2022 andresults
BlackRock’s 2021, see Item 7,
for 2021 and Management’s
a comparisonDiscussion
of results total
rangereturn and short-duration.
of strategies, including unconstrained, high yield,
period, and impacts andfrom the GIP
operational infrastructure.
Transaction;
relationships(9) the unfavorable
related to disruptions resolution
from theofGIP legal and Analysis
for 2022 andof Financial
2021, Condition
see Item and ResultsDiscussion
7, Management’s of A number of long-term structural trends support an total return and short-duration.
BlackRock manages $5.3 trillion of equity assets across
proceedings;
Transaction; (9) (10) thethe extent and resolution
unfavorable timing of any share
of legal Operations,
and Analysisofofthe Company’s
Financial Annual
Condition andReport onof
Results Form 10-K acceleration in infrastructure
A number of long-term structuralinvestment. These include
trends support an markets
BlackRock globally.
manages Beta divergence
$5.3 trillion ofbetween equityacross
equity assets markets,
repurchases;
proceedings; (10) (11) the extent
impact,and extent
timing andof timing
any shareof for the year ended
Operations, December 31,
of the Company’s 2022,
Annual whichon
Report was filed10-K
Form increasing
acceleration global demand for investment.
in infrastructure upgraded digital These include where
markets certain
globally.markets perform differently
Beta divergence betweenthan equityothers,
markets,
technological
repurchases; (11) changes and theextent
the impact, adequacy of intellectual
and timing of with theyear
for the SECended
on February
December 24, 31,
2023. 2022, which was filed infrastructure
increasing global likedemand
fiber broadband,
for upgraded cell towers
digital and data may
where lead to anmarkets
certain increaseperform
in the proportion
differentlyof BlackRock
than others,
property,
technologicaldata,changesinformation and and cybersecurity
the adequacy protection;
of intellectual with the SEC on February 24, 2023. centers; renewed
infrastructure likeinvestment
fiber broadband,in logistical hubs and
cell towers suchdataas AUM weighted
may lead toward lower
to an increase in the fee equity products,
proportion resulting
of BlackRock
(12) the failure
property, to effectivelyand
data, information manage the development
cybersecurity protection; and airports, railways and
centers; renewed shipping
investment inports as supply
logistical chains
hubs such asare in
AUMa decline
weighted in BlackRock’s
toward lowereffective
fee equity feeproducts,
rate. Divergent
resulting
use
(12)of
the AI;failure
(13) attempts to circumvent
to effectively manage the BlackRock’s
development and rewired;
airports,and a movement
railways and shippingtoward increased
ports as supplyenergy
chains are market factors
in a decline may also erode
in BlackRock’s the correlation
effective between the
fee rate. Divergent
use of AI; (13) attempts to circumvent BlackRock’s rewired; and a movement toward increased energy market factors may also erode the correlation between the
growth rates of AUM and investment advisory and BlackRock continues to invest in technology services EXECUTIVE SUMMARY
administration
growth rates of fees AUM(collectively
and investment “baseadvisory
fees”) and and offerings,
BlackRockwhich enhance
continues the ability
to invest to manage
in technology portfolios
services EXECUTIVE SUMMARY
securities
administration lending fees revenue.
(collectively “base fees”) and and risk, effectively
offerings, which enhance serve clients
the abilityandto operate
manage efficiently.
portfolios (in millions, except per share data) 2023 2022
securities lending revenue. Market
and risk,volatility,
effectively growing cost pressures,
serve clients and operate andefficiently.
complexity (in millions, except per share data) 2023 2022
BlackRock’s highly diversified multi-product platform was GAAP basis : (1)
in optimizing
Market whole
volatility, portfolios
growing cost underscore
pressures, and the complexity
need for
created
BlackRock’s to meet client
highly needs inmulti-product
diversified all market environments
platform was GAAPrevenue
Total basis(1): $ 17,859 $ 17,873
enterprise
in optimizing operating and risk management
whole portfolios underscore the technology,
need for
and provide
created to meet clients with
client choice
needs in how
in all marketthey seek to achieve
environments revenue
Total expense $ 17,859
11,584 $ 17,873
11,488
and shouldoperating
enterprise continue and to drive
risk demand
management for holistic and
technology,
their unique clients
and provide financial withgoals.
choiceBlackRock
in how they is positioned to
seek to achieve Total expense
Operating income $ 11,584
6,275 $ 11,488
6,385
flexible
and shouldtechnology
continue solutions. BlackRock
to drive demand forcontinues
holistic and to
provide
their uniquealpha-seeking
financial goals.active,BlackRock
index andiscash positioned to income
Operating margin $ 6,275
35.1% $ 6,385
35.7%
evolve
flexibleand enable clients
technology to further
solutions. BlackRocksimplify their to
continues
management
provide alpha-seeking investment strategies
active, index andacrosscash asset classes Operating margin 35.1% 35.7%
operating
evolve andinfrastructure
enable clientswith Aladdin.
to further Clientstheir
simplify increasingly Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests 706 89
and geographies.
management In addition,
investment BlackRock
strategies across leverages its
asset classes
want to tailor
operating how they use
infrastructure withAladdin
Aladdin. to meet
Clientstheir specific
increasingly Nonoperating
Income income (expense), less net income (loss) attributable to noncontrolling interests
tax expense 706
1,479 89
1,296
world-class
and geographies. risk management, analytics and
In addition, BlackRock technology
leverages its
needs,
want toandtailorBlackRock
how theyisuse providing
Aladdinthem to meetwith choice
their and
specific Income
Net tax expense
income attributable to BlackRock $ 1,479
5,502 $ 1,296
5,178
capabilities,
world-class risk including the Aladdin
management, platform,
analytics and on behalf of
technology
flexibility.
needs, andThrough
BlackRock theis integration
providing of themAladdin and eFront,
with choice and Net income attributable to BlackRock $ 5,502 $ 5,178
clients. BlackRock
capabilities, includingservestheaAladdin
diverse platform,
mix of institutional
on behalf of and Diluted earnings per common share $ 36.51 $ 33.97
clients areThrough
flexibility. able to better manage and
the integration analyzeand
of Aladdin risk eFront,
across
retail
clients.clients
BlackRockacrossserves
the globe, as well
a diverse mix asofinvestors
institutionalin ETFs,
and Diluted earnings
Effective tax rate per common share $ 36.51
21.2% $ 33.97
20.0%
their whole
clients portfolio
are able spanning
to better manage public
and and private
analyze riskmarkets.
across
maintaining
retail clients differentiated
across the globe, clientas relationships
well as investors andina ETFs, Effective tax(2)
As adjusted rate
: 21.2% 20.0%
BlackRock
their wholeisportfolio
empowering spanning clients withand
public dataprivate
and opening
markets.
fiduciary
maintaining focus. The diversity
differentiated of BlackRock’s
client relationships platform
and a As adjusted
Operating (2):
income $ 6,593 $ 6,711
Aladdin
BlackRock by is
creating connectivity
empowering clientswithwithecosystem
data and openingproviders
facilitates
fiduciary focus.the generation
The diversity of organic growth in
of BlackRock’s various
platform Operating margin
income $ 6,593 $ 6,711
and third-party
Aladdin by creatingtechnology
connectivity solutions, which include
with ecosystem asset
providers 41.7% 42.8%
market
facilitatesenvironments,
the generation andofasorganic
client preferences
growth in various evolve.
servicers, cloud technology
and third-party providers, digital assetwhich
solutions, platforms,
include trading
asset Operating margin
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests $ 41.7%
648 $ 42.8%
89
BlackRock’s
market environments,long-termand strategy
as clientremains to keep evolve.
preferences alpha at
systems
servicers,andcloud others. This connectivity
providers, digital assethelps clientstrading
platforms, work in Nonoperating
Net income (expense),
income attributable less net income (loss) attributable to noncontrolling interests
to BlackRock $ 648
5,692 $ 89
5,391
the heart of BlackRock;
BlackRock’s drive growth
long-term strategy in ETFs,
remains to keepprivate
alpha at
their Aladdin
systems environments
and others. with a more
This connectivity customized
helps clients work and in Net income
earnings to BlackRock
per common share $ 5,692
37.77 $ 5,391
35.36
markets,
the heartand technology;
of BlackRock; be the
drive growthglobal leaderprivate
in ETFs, in
seamless
their Aladdinend-to-end
environments experience.
with aInvestments
more customized in Aladdin
and Diluted earnings
Effective tax rate per common share $ 37.77
21.4% $ 35.36
20.7%
sustainable
markets, andinvesting;
technology; andbe lead
theas a whole
global leaderportfolio
in
AI copilots,end-to-end
seamless enhancements in openness
experience. supporting
Investments in Aladdin Effective tax rate
Other: 21.4% 20.7%
advisor.
sustainable investing; and lead as a whole portfolio
ecosystem
AI copilots, partnerships,
enhancements and advancingsupporting
in openness whole portfolio Other: under management (end of period)
advisor. Assets $10,008,995 $8,594,485
BlackRock is a $2.6 trillion active manager, with the active solutions
ecosystemincluding
partnerships,private andmarkets
advancing and digital assets are
whole portfolio
Assets under
Diluted managementcommon
weighted-average (end of period)
shares outstanding $10,008,995
150.7 $8,594,485
152.4
platform
BlackRock reflecting
is a $2.6global
trillionreach,
activeinterconnectivity
manager, with the across
active expected
solutions to further augment
including private markets the value andofdigital
using assets
Aladdin. are
Diluted weighted-average
Shares outstanding (end ofcommon
period) shares outstanding 150.7
148.5 152.4
149.8
teams
platform and regions, global
reflecting growing datainterconnectivity
reach, and insights, integrated across expected to further augment the value of using Aladdin.
As the asset management landscape shifts globally from Shares
Book outstanding
value per share(end
(3) of period) $ 148.5
264.96 $ 149.8
252.04
technology
teams and regions,and riskgrowing
management data and andinsights,
scalableintegrated
processes
individual
As the asset product selection
management to a whole-portfolio
landscape shifts globally approach,
from Book
Cash value per share
dividends (3)
declared and paid per share $ 264.96
20.00 $ 252.04
19.52
– all of which
technology andtherisk
Company
management believes andenables
scalable it to deliver
processes
BlackRock’s
individual productstrategy is focused
selection to aon creating outcome-
whole-portfolio approach, Cash dividends declared and paid per share $ 20.00 $ 19.52
more
– all ofconsistent
which theoutcomes
Company for clientsenables
believes over the it long-term.
to deliver
oriented
BlackRock’s client solutions
strategy for bothon
is focused retail investors
creating outcome-and (1) Accounting principles generally accepted in the United States (“GAAP”).
more consistent outcomes for clients over the long-term.
The ETF industry has been growing rapidly, driven by institutions.
oriented client This includesfor
solutions having a diverse
both retail platform
investors andof (1) Accounting principles generally accepted in the United States (“GAAP”).
(2) As adjusted items are described in more detail in Non-GAAP Financial Measures. Beginning in the first quarter of 2023, BlackRock updated the definitions of its non-GAAP financial measures to
structural
The ETF industrytailwinds has including
been growing the use of ETFs
rapidly, as active
driven by alpha-seeking
institutions. This active,
includesindexhaving
and alternative products,ofas
a diverse platform exclude
(2) As the items
adjusted impactare
of described
market valuation
in morechanges
detail in on certain deferred
Non-GAAP Financialcash compensation
Measures plans
. Beginning which
in the firstthe Company
quarter beganBlackRock
of 2023, economically hedging
updated in 2023. of its non-GAAP financial measures to
the definitions
tools, the migration
structural from commission-based
tailwinds including the use of ETFsto asfee-based
active well as enhanced
alpha-seeking distribution
active, index and and portfolio products,
alternative construction as exclude the impact of market valuation changes on certain deferred cash compensation plans which the Company began economically hedging in 2023.
(3) Total BlackRock stockholders’ equity, divided by total shares outstanding at December 31 of the respective year-end.
wealth
tools, the management,
migration from growth in model portfolios,
commission-based to fee-based technology
well as enhancedofferings. Digital wealth
distribution tools are
and portfolio an important
construction
(3) Total BlackRock stockholders’ equity, divided by total shares outstanding at December 31 of the respective year-end.
expansion of digital wealth
wealth management, growth platforms,
in model and the
portfolios, component of BlackRock’s
technology offerings. Digital retail strategy,
wealth as BlackRock
tools are an important
modernization
expansion of digital of thewealth
bond market.
platforms, BlackRock’s
and the ETF scales
componentand customizes
of BlackRock’s model portfolios,
retail strategy,extends Aladdin
as BlackRock 20 23 COMPARED WITH 2022 outstanding tax matters and stock-based compensation
growth strategyofisthe
modernization centered on increasing
bond market. BlackRock’sscale andETF Wealth
scales andandcustomizes
digital wealth partnerships
model portfolios,globally,
extendsand helps
Aladdin 20 23 COMPARED WITH 2022 awards that vested
outstanding in 2023.
tax matters andIncome tax expense
stock-based for 2022
compensation
pursuing
growth strategyglobal is growth
centeredthemes in client and
on increasing scaleproduct
and advisors
Wealth and build better
digital portfolios
wealth throughglobally,
partnerships portfolioand helps GAAP. Operating income of $6.3 billion decreased reflected
awards that $235 million
vested of netIncome
in 2023. discretetax taxexpense
benefitsforprimarily
2022
segments,
pursuing global including
growth Core, Strategic,
themes which
in client and includes
productFixed construction
advisors buildand riskportfolios
better management, through powered by Aladdin.
portfolio $110
GAAP.million
Operatingand income
operating margin
of $6.3 of 35.1%
billion decreased
decreased related
reflected to$235
stock-based compensation
million of net discrete tax awards thatprimarily
benefits vested
Income,
segments, Factors,
includingSustainable and Thematic
Core, Strategic, ETFs, and
which includes Fixed BlackRock
construction has seen
and riskstrong momentum
management, in outsourcing
powered by Aladdin. 60
$110bps from 2022.
million Decreases
and operating in operating
margin of 35.1% income and
decreased in 2022to
related and the resolution
stock-based of certain outstanding
compensation awards that tax vested
Precision Exposures.
Income, Factors, BlackRock
Sustainable andviews ETFs ETFs,
Thematic as a and solutions
BlackRockamong has seen institutional
strong momentum clients, including the
in outsourcing operating
60 bps from margin
2022.were primarily
Decreases driven by the
in operating negative
income and matters,
in 2022 and andthe $35resolution
million of ofnet noncash
certain tax benefits
outstanding tax
technology that facilitates
Precision Exposures. investing,
BlackRock viewsandETFs ETFsas a have funding
solutionsofamong
severalinstitutional
significant mandates in 2023,the
clients, including and impact of markets
operating margin wereon average AUM,
primarily andby
driven higher expense
the negative related
matters,toand the$35revaluation
million ofofnet
certain deferred
noncash income tax
tax benefits
become
technology core to asset
that management.
facilitates investing,The andCompany
ETFs have believes anticipates continued
funding of several outsourcing
significant mandatesopportunities
in 2023, and in the including direct fund
impact of markets on expense,
average AUM,compensation
and higher and benefits
expense liabilities.
related to the revaluation of certain deferred income tax
that
become the organizational architecture changes
core to asset management. The Company that include
believes future.
anticipates continued outsourcing opportunities in the expense
includingand general
direct fund and administrative
expense, compensationexpense,and partially
benefits liabilities.
embedding the ETF andarchitecture
that the organizational Index business changesacross theinclude
that entire future. offset
expenseby and
higher technology
general services revenue.
and administrative Operating
expense, partially Earnings per diluted common share increased $2.54, or
Across BlackRock, many clients are focusing on the
firm will accelerate
embedding the ETFthe andgrowth of ETFs and
Index business other
across the entire income
offset byfor 2023technology
higher also included a restructuring
services charge of
revenue. Operating 7%, from per
Earnings 2022, primarily
diluted commonreflecting
sharesignificantly
increased $2.54,higheror
impact of sustainability
Across BlackRock, manyfactors
clients on aretheir portfolios.
focusing on theThis
investment strategies
firm will accelerate theat BlackRock.
growth of ETFs The Company
and other also $61 million
income in connection
for 2023 with initiatives
also included to reorganize
a restructuring charge of nonoperating
7%, from 2022, income, partially
primarily offset
reflecting by lower operating
significantly higher
shift
impacthas ofbeen driven by factors
sustainability an increasedon their understanding
portfolios. This of
believes
investment thatstrategies
ETFs will at continue
BlackRock. to beThe
a structural
Companygrowth also specific platforms,
$61 million primarily
in connection Aladdin
with and illiquid
initiatives to reorganize income and a higher
nonoperating income,effective
partiallytax rateby
offset in lower
the current year.
operating
how
shift sustainability-related
has been driven by anfactors increased canunderstanding
affect economic of
area as clients
believes that ETFs turnwill
to ETFs
continueas the to preferred
be a structuralvehicle for
growth alternative investments,
specific platforms, to stay
primarily ahead
Aladdin of client
and illiquidneeds. income and a higher effective tax rate in the current year.
growth, asset values, and financial
how sustainability-related factors can markets
affectas a whole. As
economic As Adjusted. Operating income of $6.6 billion decreased
investing
area as clientsstrategies
turn to ofETFs
all types.
as the preferred vehicle for Operating
alternativeincome for 2022
investments, included
to stay aheada ofrestructuring
client needs.
a fiduciary,
growth, asset BlackRock
values, and is committed
financial marketsto providing clientsAs
as a whole. $118 millionOperating
As Adjusted. and operatingincomemargin of 41.7%
of $6.6 billion decreased
decreased
investing strategies of all types. charge of $91
Operating incomemillion
for from
2022an initiative
included to modify the size
a restructuring
with choice BlackRock
a fiduciary, and then executing
is committed in accordance
to providing with their
clients 110
$118bps fromand
million 2022. The pre-tax
operating restructuring
margin charge of
of 41.7% decreased
Clients are also increasing their allocations to private and shape
charge of the
of $91 global
million workforce
from to align
an initiative more closely
to modify the size
chosen objectives
with choice and then – for some clients,
executing this includes
in accordance with their $61
110 million
bps from and $91 The
2022. million described
pre-tax above has
restructuring beenof
charge
markets
Clients are as also
theyincreasing
search for diversification
their allocations and to higher
private with strategic
and shape priorities.
of the global workforce to align more closely
investing in sustainable
chosen objectives – for somestrategies.
clients, The Company
this includesaims to excluded
$61 million fromandas$91adjusted
millionresults for 2023
described aboveand
has2022,
been
returns.
markets BlackRock
as they search has built a broad illiquid
for diversification and alternatives
higher with strategic priorities.
deliver
investingtheinbest risk-adjusted
sustainable returns
strategies. The within the mandates
Company aims to Nonoperating income (expense) less net income (loss) respectively.
excluded from as adjusted results for 2023 and 2022,
platform with $137 has
returns. BlackRock billion of aAUM
built broadacross
illiquidinfrastructure,
alternatives
clients
deliver choose,
the best underpinned
risk-adjustedby research,
returns data,
within theand mandates attributable
Nonoperating to income
noncontrolling
(expense) interests
less net(“NCI”)
income increased
(loss) respectively.
private
platform credit, real estate
with $137 billionand of AUMprivate equity
across to meet this
infrastructure, Earnings per diluted common share increased $2.41, or
analytics.
clients choose, underpinned by research, data, and $617 millionto
attributable from 2022, driveninterests
noncontrolling primarily(“NCI”)
by higher interest
increased
demand. As ofreal
private credit, December
estate and 31, 2023,
privateBlackRock
equity to meet has this 7%, from per
Earnings 2022, reflecting
diluted common significantly higher $2.41, or
share increased
analytics. and
$617dividend income,
million from higher
2022, drivenmark-to-market revaluation
primarily by higher interest
approximately
demand. As of December $32 billion31, of committed
2023, BlackRock capitalhas to deploy BlackRock believes its strategy aligns with expected future nonoperating
7%, from 2022, income, partially
reflecting offset byhigher
significantly lower operating
for institutional$32
approximately clients in aofvariety
billion committed of alternatives
capital to deploy client demand
BlackRock and structural
believes its strategy growth
alignsopportunities
with expectedinfuture of
andthe Company’s
dividend seedhigher
income, capitalmark-to-market
portfolio, net ofrevaluation
impact of income and a higher
nonoperating income,effective
partiallytax rate.by
offset Income tax expense
lower operating
strategies,
for institutionaland remains
clients in confident
a variety in ofits ability to
alternatives areas
client including
demand and private markets,
structural suchopportunities
growth as infrastructure in certain hedges, and
of the Company’s higher
seed gains
capital on private
portfolio, net ofequity
impact of for 2022and
income excluded
a higher $35 million tax
effective netrate.
noncashIncomenettax
benefit
expense
accelerate
strategies, growth
and remains as a leader
confidentin private
in its markets.
ability to and
areasprivate credit;
including integrated
private markets, wholesuch portfolio and
as infrastructure co-investment
certain hedges,portfolios,
and higher partially
gains on offset by the
private impact of
equity described above. $35 million net noncash net benefit
for 2022 excluded
BlackRock
accelerate growthalso manages $74 in
as a leader billion in liquid
private markets. alternatives, outsourced solutions;
and private credit; ETFs; Aladdin
integrated technology;
whole portfolio andand fixed $267 million ofportfolios,
co-investment noncash gains related
partially to by
offset BlackRock’s
the impact of described above.
strategic minority
$267 million investment
of noncash gainsinrelated
iCapital
to Network,
BlackRock’s Inc. Beginning in the first quarter of 2023, BlackRock updated
as well as $84
BlackRock alsobillion
manages in liquid
$74 credit
billionstrategies, included
in liquid alternatives, income,
outsourced as allocations
solutions; ETFs; to theAladdin
asset class have become
technology; and fixed
(“iCapital”) in 2022.
strategic minority investment in iCapital Network, Inc. its definitions
Beginning in theof operating
first quarterincome,
of 2023,as adjusted,
BlackRockoperating
updated
within
as wellfixed
as $84 income
billionAUM. The credit
in liquid planned acquisition
strategies, of GIP
included more
income,attractive in a higher
as allocations to therate environment.
asset class have become
(“iCapital”) in 2022. margin, as adjusted,
its definitions nonoperating
of operating income,income (expense),
as adjusted, as
operating
is expected
within fixed to add meaningful
income AUM. The planned scale and complementary
acquisition of GIP more attractive in a higher rate environment.
Income tax expense for 2023 included $242 million adjusted,
margin, asand net income
adjusted, attributable
nonoperating to BlackRock,
income (expense), Inc.,
as
capabilities
is expected to to add
our infrastructure
meaningful scale private
andmarkets
complementaryplatform.
discrete
Income taxtaxexpense
net benefits related
for 2023 to the resolution
included $242 million of certain as adjusted,
adjusted, andtonetexclude
income theattributable
compensation expense related
to BlackRock, Inc.,
capabilities to our infrastructure private markets platform.
discrete tax net benefits related to the resolution of certain as adjusted, to exclude the compensation expense related
to the market valuation changes on certain deferred cash nonrecurring or that occur infrequently, transactions that (3) Net income attributable to BlackRock, Inc., as adjusted:
compensation plans, and
to the market valuation the related
changes nonoperating
on certain deferredgain
cash ultimately
nonrecurring willor
not impact
that occurBlackRock’s
infrequently, book value or that
transactions (3) Net income attributable to BlackRock, Inc., as adjusted:
(loss) impact ofplans,
compensation an economic
and the hedge
relatedofnonoperating
these deferred cash
gain certain taxwill
ultimately items
notthat do not
impact impact cash
BlackRock’s book flow.
value or (in millions, except per share data) 2023 2022
compensation
(loss) impact ofplans. See Non-GAAP
an economic hedge ofFinancial Measures
these deferred cash Management
certain tax items reviews non-GAAP
that do not impact financial measures, in
cash flow. (in millions, except per share data) 2023 2022
Net income attributable to BlackRock, Inc., GAAP basis $5,502 $5,178
for further information
compensation onNon-GAAP
plans. See as adjusted items and
Financial the
Measures addition
Managementto GAAP financial
reviews measures,
non-GAAP to assess
financial ongoing
measures, in
NetNon-GAAP
income attributable to BlackRock,
adjustments (1): Inc., GAAP basis $5,502 $5,178
reconciliation to GAAP. on as adjusted items and the
for further information operations
addition to and
GAAP considers
financialthem to be helpful,
measures, to assess forongoing
both
Non-GAAP adjustments
Net impact of hedged (1):
deferred cash compensation plans (a) (1) —
reconciliation to GAAP. management
operations and and investors,
considers in evaluating
them to be helpful,BlackRock’s
for both
For further discussion of BlackRock’s revenue, expense, Net impact ofof
Amortization hedged deferred
intangible cash
assets (b) compensation plans (a) (1)
114 —
114
financial
management performance over time.
and investors, Management
in evaluating also uses
BlackRock’s
nonoperating results and
For further discussion income tax expense,
of BlackRock’s revenue, see
expense, Amortization of intangible
Acquisition-related assets (b)
compensation costs (b) 114
12 114
19
non-GAAP financial measures
financial performance asManagement
over time. a benchmark also to compare
uses
Discussion
nonoperating of Financial Results
results and incomeherein.
tax expense, see compensation costs 12
its performance
non-GAAP withmeasures
financial other companies and to enhance
as a benchmark to compare Acquisition-related transaction costs (b) (b) 5 19
—
Discussion of Financial Results herein.
comparability
its performance forwith
the other
reporting periodsand
companies presented.
to enhance Acquisition-related transaction
Contingent consideration costs
fair value (b)
adjustments (b) 5
3 —
3
NON-GAAP FINANCIAL MEASURES Non-GAAP
comparability financial
for themeasures
reporting may pose
periods limitations
presented. Contingent
Lease consideration
costs—New York (c) fair value adjustments (b) 3
11 3
43
NON-GAAP FINANCIAL MEASURES because
Non-GAAP they do not measures
financial include allmayof BlackRock’s revenue
pose limitations Lease costs—New York(d)
(c) 11 43
BlackRock reports its financial results in accordance with Restructuring charge 46 69
GAAP; however,
BlackRock management
reports its financialbelieves evaluating
results in thewith
accordance and expense.
because they BlackRock’s
do not includemanagement
all of does
BlackRock’s not advocate
revenue Restructuring
Income charge (d)
tax matters 46
— 69
(35)
Company’s ongoing
GAAP; however, operatingbelieves
management results may be enhanced
evaluating the if that
and investors
expense. consider
BlackRock’s such non-GAAP
management financial
does not advocate Income tax mattersto BlackRock, Inc., as adjusted — (35)
Net income attributable $5,692 $5,391
investors
Company’s have additional
ongoing non-GAAP
operating resultsfinancial
may be measures.
enhanced if measures
that in
investors isolation
consider from,
suchor as a
non-GAAPsubstitute for,
financial financial
Net income attributable to BlackRock, Inc., as adjusted $5,692 $5,391
information
measures in prepared in accordance
isolation from, with GAAP.
or as a substitute for, financial Diluted weighted-average common shares outstanding 150.7 152.4
Adjustments toadditional
investors have GAAP financial measures
non-GAAP (“non-GAAP
financial measures.
Non-GAAP
information financial
prepared measures
in may
accordance not be
with comparable
GAAP. to Diluted weighted-average
Diluted common
earnings per common shares
share, GAAPoutstanding
basis 150.7
$36.51 152.4
$33.97
adjustments”)
Adjustments toinclude certain items
GAAP financial management
measures deems
(“non-GAAP
adjustments”) include certain items management deems other similarly
Non-GAAP titled
financial measures of
may other
not companies.
be comparable to GAAP
Diluted earnings per common share, as basis
adjusted $36.51
$37.77 $33.97
$35.36
other similarly titled measures of other companies. Diluted earnings per common share, as adjusted $37.77 $35.36
Computations and reconciliations for all periods are derived from the consolidated statements of income as follows: (1) Non-GAAP adjustments, excluding income tax matters, are net of tax.
Computations and reconciliations for all periods are derived from the consolidated statements of income as follows: (1) Non-GAAP adjustments, excluding income tax matters, are net of tax.
(1) Operating income, as adjusted, and operating disclosure to both management and investors of
(1) Operating income, as adjusted, and operating margin, as adjusted: margin, as adjusted:
(1) Operating income, Management
as adjusted,believes operating
and operating the Company’s
disclosure financial
to both performance
management over timeof
and investors
(1) Operating income, as adjusted, and operating margin, as adjusted: income,
margin, as adjusted,
adjusted:and operating believes
Management margin, as adjusted,
operating as
thethese amounts
Company’s are economically
financial performance hedged,
over timewhile
(in millions) 2023 2022 are effective
income, indicators
as adjusted, and ofoperating
BlackRock’s financial
margin, as adjusted, also increasing
as these amounts comparability
are economically with otherhedged, while
(in millions) 2023 2022 performance over time, of
are effective indicators and, therefore, financial
BlackRock’s provide useful companies.
also increasing comparability with other
Operating income, GAAP basis $ 6,275 $ 6,385
disclosure
performance to investors.
over time, Management
and, therefore,believesprovidethatuseful companies.
Operating
Non-GAAPincome, GAAP
expense basis
adjustments: $ 6,275 $ 6,385 (b) Acquisition related costs. Acquisition related costs
operating
disclosuremargin, as adjusted,
to investors. Managementreflectsbelieves
the Company’s
that (b) include adjustments
Acquisition related
related costs. to amortization
Acquisition related of costs
Non-GAAP expenseexpense
Compensation adjustments:
related to appreciation (depreciation) on deferred cash
long-term ability toasmanage
operating margin, adjusted, ongoing
reflects costs in relation to
the Company’s intangible assets, other
include adjustments acquisition-related
related to amortizationcosts, of
compensationexpense
Compensation plans (a)
related to appreciation (depreciation) on deferred cash 57 —
its revenues.
long-term The to
ability Company
manageuses operating
ongoing costs margin, as to
in relation including
intangiblecompensation costs for nonrecurring
assets, other acquisition-related costs,
compensation
Amortization plans (a) assets (b)
of intangible 57
151 —
151
adjusted,
its revenues.to assess the Company’s
The Company financialmargin,
uses operating performance,
as retention-related
including compensation deferred compensation,
costs for nonrecurring and
Amortization of intangible
Acquisition-related assets (b)
compensation costs (b) 151
17 151
24
to determine
adjusted, the long-term
to assess and annual
the Company’s compensation
financial performance,of contingent consideration
retention-related deferredfair value adjustments
compensation, and
compensation
Acquisition-related transaction costs
costs (b)
(b)(1) 17
7 24
— the Company’s
to determine the senior-level
long-term and employees
annualand to evaluate of
compensation the incurred
contingent in connection
consideration with certain
fair value acquisitions.
adjustments
Acquisition-related
Contingent transaction
consideration costs
fair value (b)(1)
adjustments (b) 7
3 —
3 Company’s
the Company’s relative performance
senior-level against
employees andindustry peers.the
to evaluate Management believes excluding
incurred in connection with certain theacquisitions.
impact of
Contingent
Lease consideration
costs—New York (c) fair value adjustments (b) 3
14 3
57 Furthermore,
Company’s relativethis metric eliminates
performance margin
against variability
industry peers. these expenses
Management when calculating
believes excluding the operating
impact of
Lease costs—New
Restructuring York(d)
charge (c) 14
61 57
91 arising from the
Furthermore, thisaccounting of revenues
metric eliminates margin andvariability
expenses income, as adjusted,
these expenses whenprovides
calculating a helpful
operatingindication
Restructuring
Reduction charge (d)
of indemnification asset (e)(1) 61
8 91
— related to distributing
arising from the accountingdifferent product structures
of revenues and expenses in of the Company’s
income, as adjusted,financial
provides performance over
a helpful indication
Reduction of as
indemnification asset (e)(1) 8 — multiple
related todistribution
distributingchannels
differentutilized
productby asset managers.
structures in time,
of thethereby
Company’s providing
financialhelpful information
performance overfor
Operating income, adjusted 6,593 6,711
multiple distribution channels utilized by asset managers. both
time, management
thereby providing and investors while also for
helpful information
Operating income,
Product as adjusted
launch costs and commissions 6,593
— 6,711
6 • Operating income, as adjusted, includes the following increasing comparability
both management with other
and investors companies.
while also
Product
Operating launch
income usedcosts and commissions
for operating margin measurement $ 6,593— $ 6,7176 non-GAAP income,
• Operating expenseas adjustments:
adjusted, includes the following increasing comparability with other companies.
Operating income used for operating margin measurement $ 6,593 $ 6,717 non-GAAP expense adjustments: (c) Lease costs – New York. In 2022 and 2023, the
Revenue, GAAP basis $ 17,859 $ 17,873 (a) Compensation expense related to appreciation Company continued to recognize lease expense
(c) Lease costs – New York. In 2022 and 2023, the
Revenue, GAAPadjustments:
Non-GAAP basis $ 17,859 $ 17,873 (depreciation) on
(a) Compensation deferred
expense cashto
related compensation
appreciation within
Company general and administration
continued to recognize lease expense for
expense
Non-GAAP adjustments:
Distribution fees (1,262) (1,381) plans. Beginning
(depreciation) on in the first
deferred cashquarter of 2023, the
compensation both
withinitsgeneral
currentand headquarters
administration located at 50 for
expense
Distributionadvisory
Investment fees fees (1,262)
(789) (1,381)
(798) Company updated
plans. Beginning inits
the definition
first quarterof operating
of 2023, the Hudson Yards inheadquarters
both its current New York andlocated prior at 50
Investment advisory fees (789) (798) income,
Company asupdated
adjusted, itstodefinition
exclude compensation
of operating headquarters
Hudson Yardsuntil in NewtheYork
Company’s
and prior lease on its
Revenue used for operating margin measurement $ 15,808 $ 15,694
expense
income, as related to the
adjusted, tomarket
exclude valuation changes
compensation prior headquarters
headquarters expired
until the in April lease
Company’s 2023.on Theits
Revenue used for operating
Operating margin, GAAP basismargin measurement $ 15,808
35.1% $ 15,694
35.7%
on certain
expense deferred
related cash
to the compensation
market valuation plans,
changes Company began lease
prior headquarters payments
expired in April related
2023. to its
The
Operating margin, GAAP basis
as adjusted 35.1%
41.7% 35.7%
42.8% which the Company began hedging economically
on certain deferred cash compensation plans, current
Company headquarters
began leasein May 2023,
payments but began
related to its
Operating margin, as adjusted 41.7% 42.8% in 2023.
which theFor these deferred
Company cash compensation
began hedging economically recording lease expense
current headquarters in August
in May 2023,2021 but beganwhen it
(1) Amount included within general and administration expense.
plans,
in 2023. the final
For value
these of the deferred
deferred amount to be
cash compensation obtained
recordingaccess to the building
lease expense in August to begin
2021 its whentenant
it
(1) Amount included within general and administration expense.
distributed
plans, the finalto employees
value of the in deferred
cash upon vesting
amount toisbe improvements.
obtained accessPrior to theto building
the Company’s to begin move to its
its tenant
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: determined
distributed to based on the in
employees returns
cash uponon specified
vesting is current headquarters
improvements. Prior tointheFebruary
Company’s 2023,move the to its
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: investment
determined funds.based Theon theCompany
returns recognizes
on specified impact
current of lease costs related
headquarters in Februaryto 502023,Hudson theYards
(in millions) 2023 2022 compensation
investment funds. expense for the appreciation
The Company recognizes was excluded
impact of leasefrom
costsoperating
related to income,
50 Hudson as adjusted.
Yards
(in millions)
Nonoperating income (expense), GAAP basis $2023
880 $2022
(95) (depreciation)
compensation of the deferred
expense for thecash compensation
appreciation In
wasFebruary
excluded 2023,
fromthe Company
operating completed
income, the
as adjusted.
Nonoperating income
Less: Net income (expense),
(loss) GAAP
attributable tobasis
NCI $ 880
174 $(184)
(95) liability in proportion
(depreciation) to the vested
of the deferred cash amount of the
compensation majority
In Februaryof its move
2023, toCompany
the 50 Hudson Yards andthe
completed no
Less: Net income (loss) attributable toNCI
NCI 174 (184) award
liabilityduring a respective
in proportion to theperiod,
vestedwhile
amountthe of
gain
the longer
majority excluded the to
of its move impact of these
50 Hudson leaseand
Yards costs.
no
Nonoperating income (expense), net of 706 89
(loss)
awardto economically
during a respectivehedge thesewhile
period, plans is gain
the Subsequently,
longer excluded from
the February
impact of2023 thesethrough
lease costs.April
Nonoperating
Less: Hedgeincome (expense),
gain (loss) net of
on deferred NCIcompensation plans (a)
cash 706
58 89
—
immediately recognized
(loss) to economically in nonoperating
hedge these plans income
is 2023, the Company
Subsequently, excluded 2023
from February the impact
through of lease
April
Less: Hedgeincome
Nonoperating gain (loss) on deferred
(expense), cashincome
less net compensation plans (a) to NCI, as adjusted
(loss) attributable 58
$ 648 —
$ 89 (expense), which createsin a timing difference
immediately recognized nonoperating income costs
2023,related to the Company’s
the Company excluded the prior
impact of lease
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted $ 648 $ 89 impacting
(expense), net whichincome.
creates This timingdifference
a timing difference will headquarters.
costs related toManagement
the Company’s believes
prior excluding
reverse
impacting andnetoffset to zero
income. This over the life
timing of the will
difference the impact of these
headquarters. respective
Management New York
believes lease
excluding
award
reverseatand theoffset
end oftothe multi-year
zero over the lifevesting period.
of the costs (“Lease
the impact costs –
of these New York”)
respective New whenYork calculating
lease
Management
award at the end believes
of theexcluding
multi-yearmarket vestingvaluation
period. operating
costs (“Leaseincome,
costsas adjusted,
– New York”) iswhen
usefulcalculating
to assess
changes
Management related to the excluding
believes deferred cash market valuation the Company’s
operating income,financial performance
as adjusted, is useful andto assess
compensation
changes related plans
to theindeferred
the calculation
cash of ongoing operations,
the Company’s and performance
financial enhances comparabilityand
operating
compensation income,plansasinadjusted, providesofuseful
the calculation among
ongoingperiods presented.
operations, and enhances comparability
operating income, as adjusted, provides useful among periods presented.
(d) Restructuring charge. In 2023, the Company believes nonoperating income (expense), less net income ASSETS UNDER MANAGEMENT
(d) recorded
Restructuring a restructuring
charge. In 2023, charge, thecomprised
Companyof (loss)
believes attributable
nonoperating to NCI, as adjusted,
income (expense), is an lesseffective
net income ASSETS UNDER MANAGEMENT
severance
recorded aand compensation
restructuring charge,expense
comprised for of AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for
measure for reviewing
(loss) attributable BlackRock’s
to NCI, as adjusted, nonoperating
is an effective
accelerated
severance and vesting of previously
compensation granted
expense for deferred each
AUM portfolio. Net purposes
for reporting asset values, total assets,
generally committed
is based upon howassets or other
investment measures
advisory andmay be used to determine
administration portfolio for
fees are calculated AUM.
contribution to its results
measure for reviewing and provides
BlackRock’s comparability of
nonoperating
compensation
accelerated vesting awards, in connection
of previously with deferred
granted each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.
this information
contribution among
to its resultsreporting
and providesperiods. Nonoperating
comparability of
initiatives
compensation to reorganize
awards, inspecific platforms,
connection with income (expense),
this information less net
among incomeperiods.
reporting (loss) attributable
Nonoperating to AUM and Net Inflows (Outflows) by Client Type and Product Type
primarily
initiativesAladdin and alternative
to reorganize investments. In
specific platforms, NCI,
income as adjusted,
(expense),excludes
less net the incomegain(loss)
(loss)attributable
on the economic to AUM and Net Inflows (Outflows) by Client Type and Product Type
2022,
primarily theAladdin
Company and recorded
alternativea restructuring
investments. In hedge
NCI, asof certain deferred
adjusted, excludescash compensation
the gain (loss) on the plans. As
economic AUM Net inflows (outflows)
charge
2022, the primarily
Company comprised
recorded ofaseverance
restructuring and AUM Net inflows (outflows)
the
hedgegain of(loss)
certain ondeferred
investments cash and derivatives plans.
compensation used to As (in millions) 2023 2022 2023 2022
accelerated
charge primarily amortization
comprised expense of previously
of severance and hedge
the gain these
(loss) compensation
on investments plansandover time substantially
derivatives used to (in millions) 2023 2022 2023 2022
granted
accelerated deferred compensation
amortization expense awards in
of previously Retail $ 929,697 $ 843,475 $ (8,473) $ (19,523)
offsets
hedge thesethe compensation
compensation expense
plans over relatedtimetosubstantially
the market
connection
granted deferred with an initiative to modify
compensation awardsthe in size Retail
ETFs $ 3,499,299
929,697 $ 2,909,610
843,475 $185,942
(8,473) $ 220,335
(19,523)
valuation
offsets thechanges
compensationon these deferred
expense cash compensation
related to the market
and shape of
connection thean
with global workforce
initiative to modifyto align
the more
size ETFs 3,499,299 2,909,610 185,942 220,335
plans,
valuation which is included
changes on thesein operating
deferred cash income, GAAP basis,
compensation Institutional:
closely
and shape withofstrategic
the global priorities.
workforce Management
to align more
management
plans, which isbelievesincluded excluding
in operating the gain
income, (loss)GAAPon the
basis, Institutional:
Active 1,912,673 1,641,591 87,106 168,826
believes
closely with excluding
strategic thepriorities.
impact ofManagement
these
restructuring
believes excluding charges the when
impact calculating
of these operating economic
management hedge of theexcluding
believes deferred cash the gaincompensation
(loss) on the plans Active
Index 1,912,673
2,902,489 1,641,591
2,528,615 87,106
(55,125) 168,826
23,612
income,
restructuringas adjusted,
chargesiswhen useful to assess the
calculating operating when
economic calculating
hedge of nonoperating
the deferredincome (expense), less
cash compensation net
plans Index
Institutional subtotal 2,902,489
4,815,162 2,528,615
4,170,206 (55,125)
31,981 23,612
192,438
Company’s financial performance
income, as adjusted, is useful to assess and ongoing
the income (loss) attributable
when calculating nonoperating to NCI, as adjusted,
income (expense),provides a
less net Institutional subtotal 4,815,162 4,170,206 31,981 192,438
Long-term 9,244,158 7,923,291 209,450 393,250
operations,
Company’s financialand enhances comparability
performance among
and ongoing useful
incomemeasure for both management
(loss) attributable to NCI, as adjusted,and investors
provides of a
Long-term
764,837 7,923,291
671,194 209,450
79,245 393,250
(77,374)
periods
operations, presented.
and enhances comparability among BlackRock’s
useful measure nonoperating results that and
for both management impact book value.
investors of
Cash management
Advisory 764,837
— 671,194
— 79,245
— (77,374)
(9,306)
periods presented. BlackRock’s nonoperating results that impact book value.
(e) Reduction of indemnification asset. In 2023, (3) Net income attributable to BlackRock, Inc., as Advisory
Total —
$10,008,995 —
$8,594,485 —
$288,695 (9,306)
$306,570
BlackRock of
(e) Reduction recorded $8 million
indemnification of general
asset. In 2023, and adjusted:
(3) Net income Management
attributable believes net incomeInc.,
to BlackRock, attributable
as Total $10,008,995 $8,594,485 $288,695 $306,570
administration
BlackRock recorded expense to reflect
$8 million the reduction
of general and of to BlackRock,
adjusted: Inc., as adjusted,
Management believes andnetdiluted
incomeearnings per
attributable
the indemnification
administration expense asset toand an offsetting
reflect the reduction of common
to BlackRock, share, as as
Inc., adjusted,
adjusted, areanduseful
dilutedmeasures
earnings of per AUM and Net Inflows (Outflows) by Investment Style and Product Type
$8
themillion tax benefitasset
indemnification due to andthe anresolution
offsettingof BlackRock’s
common share, profitability
as adjusted, and arefinancial
usefulperformance.
measures of Net AUM and Net Inflows (Outflows) by Investment Style and Product Type
certain
$8 million taxtaxmatters.
benefit The due $8tomillion general and
the resolution of income
BlackRock’s attributable to BlackRock,
profitability and financial Inc.,performance.
as adjusted, equals Net AUM Net inflows (outflows)
administrative
certain tax matters. expenseThe and $8 million
$8 million generaltax benefit
and net income
income attributable
attributable to BlackRock,
to BlackRock, Inc.,Inc., GAAP basis,
as adjusted, equals (in millions) 2023 AUM 2022 Net inflows (outflows)
2023 2022
have been excluded
administrative expense from as $8
and adjusted
millionresults as
tax benefit adjusted
net income forattributable
certain items to management
BlackRock, Inc., deems
GAAP basis, (in millions) 2023 2022 2023 2022
there
have beenis no excluded
impact onfrom BlackRock’s
as adjusted book value.as
results Active $ 2,621,178 $2,317,560 $ 59,221 $135,128
nonrecurring
adjusted for certain or thatitems
occurmanagement
infrequently, deems transactions that
there is no impact on BlackRock’s book value. Active
Index and ETFs $ 2,621,178
6,622,980 $2,317,560
5,605,731 $150,229
59,221 $135,128
258,122
• Operating income used for measuring operating ultimately
nonrecurring willornot impact
that occurBlackRock’s
infrequently, book value or that
transactions
margin, as income
• Operating adjusted, usedis equal to operating
for measuring income, as
operating certain
ultimately taxwill
itemsnotthat do not
impact impact cash
BlackRock’s book flow.
value or Index and ETFs 6,622,980 5,605,731 150,229 258,122
Long-term 9,244,158 7,923,291 209,450 393,250
adjusted,
margin, asexcluding
adjusted,the impact
is equal to of product income,
operating launch as certain tax items that do not impact cash flow. Long-term
764,837 7,923,291
671,194 209,450
79,245 393,250
(77,374)
costs (e.g.excluding
adjusted, closed-end the fund
impact launch costs) and
of product related
launch See notes (1) and (2) above for further information on the
Cash management
Advisory 764,837
— 671,194
— 79,245
— (77,374)
(9,306)
commissions. Management
costs (e.g. closed-end fund launchbelieves the exclusion
costs) and related of updated
See notespresentation
(1) and (2) aboveof non-GAAP
for further adjustments.
information For
oneach
the
period presented, the non-GAAP adjustments were taxeach Advisory
Total —
$10,008,995 —
$8,594,485 —
$288,695 (9,306)
$306,570
such costs andManagement
commissions. related commissions believes is the useful
exclusion of updated presentation of non-GAAP adjustments. For
effected at the respective
period presented, the non-GAAPblended rates applicable
adjustments were totaxthe Total $10,008,995 $8,594,485 $288,695 $306,570
because
such costs these
andcosts
related can fluctuate considerably,
commissions is useful and
revenue
because associated
these costswith can the expenditure
fluctuate of theseand
considerably, adjustments.
effected at theAmounts respective forblended
income ratestax matters
applicable represent
to the AUM and Net Inflows (Outflows) by Product Type
costs
revenue willassociated
not fully impactwith the BlackRock’s
expenditure results
of theseuntil net noncash (benefits)
adjustments. Amounts expenses
for incomeprimarily
tax matters associated
represent with
AUM and Net Inflows (Outflows) by Product Type
future periods.
costs will not fully impact BlackRock’s results until the
net revaluation
noncash (benefits) of certain deferred
expenses tax liabilities
primarily relatedwith
associated to
AUM Net inflows (outflows)
future periods. intangible
the revaluation assets ofand goodwill
certain deferred as ataxresult of tax rate
liabilities related to
• Revenue used for calculating operating margin, as 2023 AUM 2022 Net inflows (outflows)
2023 2022
changes.
intangibleThese assets amounts
and goodwill have been excluded
as a result of tax from
ratethe as (in millions)
adjusted,used
• Revenue is reduced to exclude
for calculating all of themargin,
operating Company’s as adjusted
changes. results as these items
These amounts have been will not have a from
excluded cash theflowas (in millions) 2023 2022 2023 2022
Equity $ 5,293,344 $4,435,354 $ (11,490) $105,103
distribution fees, which
adjusted, is reduced are recorded
to exclude as aCompany’s
all of the separate impact
adjusted and to enhance
results as these comparability
items will notamong have aperiods
cash flow Equity
2,804,026 $4,435,354
2,536,823 $143,087
(11,490) $105,103
249,780
line item on fees,
distribution the consolidated
which are recorded statementsas a of income,
separate presented.
impact and to enhance comparability among periods
Fixed income
870,804 2,536,823
684,904 143,087
82,787 249,780
31,222
as
linewell
item ason a portion of investment
the consolidated advisoryoffees
statements income, presented.
received Per share amounts reflect net income attributable to Multi-asset
Alternatives: 870,804 684,904 82,787 31,222
as well asthat is usedoftoinvestment
a portion pay distribution advisory andfeesservicing
costs.
received Forthat
certain
is usedproducts, based on distinct
to pay distribution and servicing BlackRock,
Per share amounts Inc., as adjusted,
reflect net divided
income byattributable
diluted weighted-to Alternatives:
Illiquid alternatives 136,909 117,751 13,665 16,052
arrangements,
costs. For certain distribution
products, fees based areoncollected
distinct by the average
BlackRock, common
Inc., asshares
adjusted,outstanding.
divided by diluted weighted- Illiquid alternatives
Liquid alternatives 136,909
74,233 117,751
80,654 13,665
(11,370) 16,052
(1,690)
Company
arrangements, and then passed-through
distribution to third-party
fees are collected by the average common shares outstanding. Liquid alternatives
Currency and commodities(1) 74,233
64,842 80,654
67,805 (11,370)
(7,229) (1,690)
(7,217)
(4) Annual Contract Value (“ACV”): Management believes
client
Company intermediaries. For other products,
and then passed-through investment
to third-party Currency and commodities(1)
Alternatives subtotal 64,842
275,984 67,805
266,210 (7,229)
(4,934) (7,217)
7,145
ACV is an effective
(4) Annual Contract metric
Value for reviewing
(“ACV”): BlackRock’sbelieves
Management
advisory fees are collected
client intermediaries. For otherby the Company
products, and a
investment Alternatives subtotal 275,984 266,210 (4,934) 7,145
technology services’
ACV is an effective ongoing
metric contribution
for reviewing to its operating
BlackRock’s Long-term 9,244,158 7,923,291 209,450 393,250
portion
advisoryisfees passed-through
are collected to bythird-party
the Company client
and a
results
technology and services’
provides ongoing
comparability of this information
contribution to its operating Long-term
764,837 7,923,291
671,194 209,450
79,245 393,250
(77,374)
intermediaries. However, intoboth
portion is passed-through structures,
third-party clientthe third-
among
results andreporting
providesperiods while alsoof
comparability providing a useful
this information Cash management
Advisory 764,837
— 671,194
— 79,245
— (77,374)
(9,306)
party client intermediary
intermediaries. However, similarly owns the the third-
in both structures,
supplemental
among reporting metric for both
periods whilemanagement
also providing and investors
a useful Advisory
Total —
$10,008,995 —
$8,594,485 —
$288,695 (9,306)
$306,570
relationship with the retail
party client intermediary client and
similarly owns is responsible
the
of BlackRock’smetric
supplemental growthfor in both
technology
management servicesand revenue over
investors Total $10,008,995 $8,594,485 $288,695 $306,570
for distributing
relationship with the
theproduct and servicing
retail client the client.
and is responsible
time, as it is linked
of BlackRock’s growthto the net new business
in technology services in revenue
technology over (1) Amounts include commodity ETFs.
The amount of distribution
for distributing the productand andinvestment
servicing the advisory
client.
services.
time, as itACV represents
is linked to the forward-looking,
net new businessannualized in technology (1) Amounts include commodity ETFs.
fees fluctuates
The amount each period and
of distribution primarily based advisory
investment on a
estimated
services. ACV value of the recurring
represents subscription
forward-looking, fees under
annualized
predetermined
fees fluctuates each percentage
period of the value
primarily of AUM
based on aduring
client
estimatedcontracts,
value of assuming
the recurringall client contracts fees
subscription that under
come
the period. These
predetermined fees also vary
percentage of thebased
valueon ofthe
AUM type of
during
up for contracts,
client renewal are renewed,all
assuming unless
clientwe receivedthat
contracts a notice
comeof
investment
the period. Theseproduct feessold
alsoand varythebased
geographic
on the location
type of
termination,
up for renewal even
arethough
renewed, such notice
unless we may
receivednot be effective
a notice of
where it is sold.
investment productIn addition,
sold and the
theCompany
geographic maylocation
waive
until a later date.
termination, evenACVthoughalsosuchincludesnoticethemay annualized
not be effective
fees
where onitcertain
is sold.products
In addition, that could
the result may
Company in the waive
estimated
until a latervalue date.ofACVnewalsosales, for existing
includes and new clients,
the annualized
reduction
fees on certainof payments
products tothat
the could
third-party
result in the
when
estimatedwe execute
value ofclient contracts,
new sales, even though
for existing and new theclients,
intermediaries.
reduction of payments to the third-party
recurring
when we executefees may not be
client effectiveeven
contracts, untilthough
a later date
the and
intermediaries.
(2) Nonoperating income (expense), less net income excludes
recurringnonrecurring
fees may not fees such asuntil
be effective implementation
a later date and and
(loss) attributableincome
(2) Nonoperating to NCI, (expense),
as adjusted: Management
less net income consulting fees.
excludes nonrecurring fees such as implementation and
(loss) attributable to NCI, as adjusted: Management consulting fees.
The following table presents the component changes in BlackRock’s AUM for 2023 and 2022. The following table presents component changes in AUM by investment style and product type for 2023.
The following table presents the component changes in BlackRock’s AUM for 2023 and 2022. The following table presents component changes in AUM by investment style and product type for 2023.
(in millions) 2023 2022 Net Full year
(in millions) 2023 2022 December 31, inflows
Net Market December 31, average
Full year
Beginning AUM $ 8,594,485 $10,010,143 (in millions) 2022 31, (outflows) Acquisition(1) change FX impact(2) 2023 31, AUM(3)
December inflows Market December average
Beginning AUM(outflows):
Net inflows $ 8,594,485 $10,010,143 (in millions) 2022 (outflows) Acquisition(1) change FX impact(2) 2023 AUM(3)
Active:
NetLong-term
inflows (outflows): 209,450 393,250
Active:
Equity $ 392,836 $ (26,772) $ — $ 57,431 $ 3,953 $ 427,448 $ 409,687
Long-term
79,245 393,250
(77,374)
Equity
392,836 $ (26,772)
(882) $ — $ 57,431
64,203 $ 3,953
7,018 $ 1,123,422
427,448 $ 1,080,917
409,687
Cash
Advisorymanagement 79,245
— (77,374)
(9,306)
Fixed income
669,629 (882)
85,424 — 64,203
93,665 7,018
7,987 1,123,422
856,705 1,080,917
773,278
Advisory
Total net inflows (outflows) —
288,695 (9,306)
306,570
Multi-asset
202,012 85,424
1,451 —
2,177 93,665
6,210 7,987
1,753 856,705
213,603 773,278
208,189
Total net(1)inflows (outflows)
Acquisition 288,695
2,177 306,570
—
Alternatives
2,317,560 1,451
59,221 2,177 6,210
221,509 1,753
20,711 213,603
2,621,178 208,189
2,472,071
Acquisition
Market (1)
change 2,177
1,073,550 —
(1,501,987)
Activeand
Index subtotal
ETFs: 2,317,560 59,221 2,177 221,509 20,711 2,621,178 2,472,071
Market
FX change
impact (2) 1,073,550
50,088 (1,501,987)
(220,241)
Index
ETFs: ETFs:
and
FX impact
Total (2)
change 50,088
1,414,510 (220,241)
(1,415,658)
ETFs:
Equity 2,081,742 81,223 — 362,885 6,781 2,532,631 2,262,361
Total change
Ending AUM 1,414,510
$10,008,995 $ (1,415,658)
8,594,485
Equity
758,093 81,223
111,956 — 362,885
24,544 6,781
3,810 2,532,631
898,403 2,262,361
824,832
Ending AUM $10,008,995 $ 8,594,485
(1) Amounts include AUM attributable to the Kreos Transaction. Fixed income
Multi-asset 758,093
8,875 111,956
(746) — 24,544
949 3,810
62 898,403
9,140 824,832
8,024
(1) Amounts include AUM attributable to the Kreos Transaction. Multi-asset
Alternatives 8,875
60,900 (746)
(6,491) — 949
4,626 62
90 9,140
59,125 8,024
61,439
(2) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Alternatives
ETFs subtotal 60,900
2,909,610 (6,491)
185,942 — 4,626
393,004 90
10,743 59,125
3,499,299 61,439
3,156,656
BlackRock has historically grown AUM through organic growth and acquisitions. Management believes that the Company ETFs subtotal
Non-ETF Index: 2,909,610 185,942 — 393,004 10,743 3,499,299 3,156,656
will be ablehas
BlackRock to continue to grow
historically AUM
grown AUMorganically by focusing
through organic onand
growth strong investment
acquisitions. performance,
Management efficient
believes delivery
that of beta
the Company Non-ETF
EquityIndex: 1,960,776 (65,941) — 430,952 7,478 2,333,265 2,148,514
for
willindex products,
be able client
to continue toservice,
grow AUMdeveloping newby
organically products and
focusing on optimizing distribution
strong investment capabilities.
performance, efficient delivery of beta Equity
725,647 (65,941)
32,013 — 430,952
18,930 7,478
5,611 2,333,265
782,201 2,148,514
737,949
for index products, client service, developing new products and optimizing distribution capabilities. Fixed income
Multi-asset 725,647
6,400 32,013
(1,891) — 18,930
560 5,611
(110) 782,201
4,959 737,949
5,891
Component Changes in AUM for 2023 Multi-asset
Alternatives 6,400
3,298 (1,891)
106 — 560
(137) (110)
(11) 4,959
3,256 5,891
3,264
Component
The followingChanges in AUM
table presents forcomponent
the 2023 changes in AUM by client type and product type for 2023. Alternatives
Non-ETF Index subtotal 3,298
2,696,121 106
(35,713) — (137)
450,305 (11)
12,968 3,256
3,123,681 3,264
2,895,618
The following table presents the component changes in AUM by client type and product type for 2023. Non-ETF
Index & ETFsIndex subtotal
subtotal 2,696,121
5,605,731 (35,713)
150,229 — 450,305
843,309 12,968
23,711 3,123,681
6,622,980 2,895,618
6,052,274
Net Full year Index & ETFs subtotal
Long-term 5,605,731
7,923,291 150,229
209,450 —
2,177 843,309
1,064,818 23,711
44,422 6,622,980
9,244,158 6,052,274
8,524,345
December 31, inflows
Net December 31, average
Full year Long-term
671,194 209,450
79,245 2,177
— 1,064,818
8,732 44,422
5,666 9,244,158
764,837 8,524,345
696,355
December (outflows)
inflows Acquisition(1) Market change FX impact(2) 2023 31,
December AUM(3)
average
(in millions) 2022 (outflows) Acquisition(1) Market change FX impact(2) 2023 AUM(3) Cash management
Total 671,194
$8,594,485 79,245
$288,695 —
$2,177 8,732
$1,073,550 5,666
$50,088 764,837
$10,008,995 696,355
$9,220,700
Retail:
Total $8,594,485 $288,695 $2,177 $1,073,550 $50,088 $10,008,995 $9,220,700
Equity
Retail: $ 370,612 $ 2,810 $ — $ 58,248 $ 4,064 $ 435,734 $ 403,530
Equity $ 370,612 $ (2,471)
2,810 $ — $ 58,248 $ 4,064 $ 435,734 $ 306,232
403,530
The following table presents component changes in AUM by product type for 2023.
Fixed income 299,114 11,821 4,335 312,799
The following table presents component changes in AUM by product type for 2023.
Fixed income
Multi-asset 299,114
125,168 (2,471)
(236) — 11,821
14,022 4,335
583 312,799
139,537 306,232
131,236
Net Full year
Multi-asset
48,581 (236)
(8,576) — 14,022
1,286 583
336 139,537
41,627 131,236
45,319 December 31, inflows Market December 31, average
Net Full year
Alternatives
843,475 (8,576)
(8,473) — 1,286
85,377 336
9,318 41,627
929,697 45,319
886,317 (in millions) 2022 31,
December (outflows)
inflows Acquisition(1) change
Market FX impact(2) 2023 31,
December AUM(3)
average
Retail subtotal
ETFs: 843,475 (8,473) — 85,377 9,318 929,697 886,317 (in millions) 2022 (outflows) Acquisition(1) change FX impact(2) 2023 AUM(3)
Equity $4,435,354 $ (11,490) $ — $ 851,268 $18,212 $ 5,293,344 $4,820,562
ETFs:
Equity 2,081,742 81,223 — 362,885 6,781 2,532,631 2,262,361 Equity $4,435,354 $ 143,087
(11,490) $ — $ 851,268 $18,212 $ 5,293,344 $4,820,562
Fixed income 2,536,823 107,677 16,439 2,804,026 2,643,698
Equity
758,093 81,223
111,956 — 362,885
24,544 6,781
3,810 2,532,631
898,403 2,262,361
824,832 Fixed income 2,536,823 143,087 107,677 16,439 2,804,026 2,643,698
Multi-asset 684,904 82,787 — 95,174 7,939 870,804 787,193
Fixed income
Multi-asset 758,093
8,875 111,956
(746) — 24,544
949 3,810
62 898,403
9,140 824,832
8,024 Multi-asset 684,904 82,787 — 95,174 7,939 870,804 787,193
Alternatives:
Multi-asset
Alternatives 8,875
60,900 (746)
(6,491) — 949
4,626 62
90 9,140
59,125 8,024
61,439 Alternatives:
Illiquid alternatives 117,751 13,665 2,177 1,885 1,431 136,909 127,655
Alternatives
2,909,610 (6,491)
185,942 — 4,626
393,004 90
10,743 59,125
3,499,299 61,439
3,156,656 Illiquidalternatives
alternatives 117,751 13,665 2,177 1,885 1,431 136,909 127,655
Liquid 80,654 (11,370) — 4,548 401 74,233 77,595
ETFs subtotal
Institutional: 2,909,610 185,942 — 393,004 10,743 3,499,299 3,156,656 Liquid alternatives
Currency and 80,654 (11,370) — 4,548 401 74,233 77,595
Institutional:
Active: commodities
Currency and
(4) 67,805 (7,229) — 4,266 — 64,842 67,642
Active:
Equity 168,734 (13,301) — 29,088 2,167 186,688 174,967 commodities
Alternatives (4)
subtotal 67,805
266,210 (7,229)
(4,934) —
2,177 4,266
10,699 —
1,832 64,842
275,984 67,642
272,892
Equity
Fixed income 168,734
774,955 (13,301)
4,714 — 29,088
53,538 2,167
3,616 186,688
836,823 174,967
798,832 Alternatives subtotal 266,210 (4,934) 2,177 10,699 1,832 275,984 272,892
Long-term 7,923,291 209,450 2,177 1,064,818 44,422 9,244,158 8,524,345
Fixed income
Multi-asset 774,955
544,469 4,714
85,665 — 53,538
79,644 3,616
7,404 836,823
717,182 798,832
642,051 Long-term 7,923,291 209,450 2,177 1,064,818 44,422 9,244,158 8,524,345
Cash management 671,194 79,245 — 8,732 5,666 764,837 696,355
Multi-asset
153,433 85,665
10,028 —
2,177 79,644
4,925 7,404
1,417 717,182
171,980 642,051
162,871 Cash 764,837
Total management 671,194
$8,594,485 79,245
$288,695 —
$2,177 8,732
$1,073,550 5,666
$50,088 $10,008,995 696,355
$9,220,700
Alternatives
1,641,591 10,028
87,106 2,177 4,925
167,195 1,417
14,604 171,980
1,912,673 162,871
1,778,721 Total $8,594,485 $288,695 $2,177 $1,073,550 $50,088 $10,008,995 $9,220,700
Active
Index: subtotal 1,641,591 87,106 2,177 167,195 14,604 1,912,673 1,778,721 (1) Amounts include AUM attributable to the Kreos Transaction.
Index:
Equity 1,814,266 (82,222) — 401,047 5,200 2,138,291 1,979,704 (1) Amounts include AUM attributable to the Kreos Transaction.
Equity
704,661 (82,222)
28,888 — 401,047
17,774 5,200
4,678 2,138,291
756,001 1,979,704
713,802 (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.
Fixed income
Multi-asset 704,661
6,392 28,888
(1,896) — 17,774
559 4,678
(110) 756,001
4,945 713,802
5,882 (3) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(4) Amounts include commodity ETFs.
Multi-asset
Alternatives 6,392
3,296 (1,896)
105 — 559
(138) (110)
(11) 4,945
3,252 5,882
3,263
Alternatives
2,528,615 105
(55,125) — (138)
419,242 (11)
9,757 3,252
2,902,489 3,263
2,702,651 AUM increased $1.4 trillion to $10.0 trillion at AUM increased $50 billion due to the impact of foreign
Index subtotal
4,170,206 (55,125)
31,981 —
2,177 419,242
586,437 9,757
24,361 2,902,489
4,815,162 2,702,651
4,481,372 December 31, 2023
AUM increased $1.4 from $8.6
trillion trilliontrillion
to $10.0 at December
at 31, exchange movements,
AUM increased primarily
$50 billion due todue
theto the weakening
impact of foreignof
Institutional subtotal
Long-term 4,170,206
7,923,291 31,981
209,450 2,177
2,177 586,437
1,064,818 24,361
44,422 4,815,162
9,244,158 4,481,372
8,524,345 2022, driven
December 31,primarily
2023 from by net
$8.6market
trillionappreciation,
at December net31, the US dollar
exchange largely against
movements, the due
primarily British pound
to the and theof
weakening
Long-term
671,194 209,450
79,245 2,177
— 1,064,818
8,732 44,422
5,666 9,244,158
764,837 8,524,345
696,355 inflows, led byprimarily
2022, driven flows intobybond and equity
net market ETFs, cash
appreciation, net euro,
the USpartially offset by
dollar largely the strengthening
against of theand
the British pound USthe
dollar
Cash management
Total 671,194
$8,594,485 79,245
$288,695 —
$2,177 8,732
$1,073,550 5,666
$50,088 764,837
$10,008,995 696,355
$9,220,700
management,
inflows, led by significant outsourcing
flows into bond and equity mandates and
ETFs, cash against the Japanese
euro, partially offset byyen.
the strengthening of the US dollar
growth in private
management, markets.outsourcing mandates and
significant against the Japanese yen.
Total $8,594,485 $288,695 $2,177 $1,073,550 $50,088 $10,008,995 $9,220,700 For further discussion on AUM, see Part I, Item 1 –
(1) Amounts include AUM attributable to the Kreos Transaction. growth in private markets.
Net market appreciation of $1.1 trillion was primarily Business
For further– Assets Under
discussion onManagement.
AUM, see Part I, Item 1 –
(2) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. driven by global
Net market equity market
appreciation of $1.1appreciation.
trillion was primarily Business – Assets Under Management.
(2) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. driven by global equity market appreciation.
Component Changes in AUM for 2022 The following table presents component changes in AUM by investment style and product type for 2022.
Component Changes
The following in AUM for
table presents the2022
component changes in AUM by client type and product type for 2022. The following table presents component changes in AUM by investment style and product type for 2022.
The following table presents the component changes in AUM by client type and product type for 2022. Net Full year
Full year
Net Full year (in millions) 2021 31, (outflows) Market change FX impact(1) 2022 31, AUM(2)
December inflows December average
Full year (in millions) 2021 (outflows) Market change FX impact(1) 2022 AUM(2)
December (outflows)
inflows Market change FX impact(1) 2022 31,
December AUM(2)
average Active:
(in millions) 2021 (outflows) Market change FX impact(1) 2022 AUM(2) Active:
Equity $ 507,103 $ (2,672) $ (100,240) $ (11,355) $ 392,836 $ 426,141
Retail:
Equity
Retail: $ 471,937 $ (103) $ (90,767) $ (10,455) $ 370,612 $ 401,582 Equityincome
Fixed $ 1,107,085
507,103 $ 92,721
(2,672) $ (132,590)
(100,240) $ (14,133)
(11,355) $ 1,053,083
392,836 $ 1,016,918
426,141
Equity
Fixed income $ 471,937
365,306 $ (20,299)
(103) $ (90,767)
(41,706) $ (10,455)
(4,187) $ 370,612
299,114 $ 401,582
798,404 92,721
30,806 (132,590)
(138,092) (14,133)
(21,489) 1,053,083
669,629 1,016,918
708,130
Fixed income
Multi-asset 365,306
155,461 (20,299)
(3,143) (41,706)
(26,064) (4,187)
(1,086) 299,114
125,168 323,500
136,690 Multi-asset
193,733 30,806
14,273 (138,092)
(2,516) (21,489)
(3,478) 669,629
202,012 708,130
199,294
Multi-asset
47,349 (3,143)
4,022 (26,064)
(2,271) (1,086)
(519) 125,168
48,581 136,690
48,937 Alternatives
2,606,325 14,273
135,128 (2,516)
(373,438) (3,478)
(50,455) 202,012
2,317,560 199,294
2,350,483
Alternatives
1,040,053 4,022
(19,523) (2,271)
(160,808) (519)
(16,247) 48,581
843,475 48,937
910,709 Active subtotal
Index and ETFs: 2,606,325 135,128 (373,438) (50,455) 2,317,560 2,350,483
Retail
ETFs: subtotal 1,040,053 (19,523) (160,808) (16,247) 843,475 910,709 Index and ETFs:
ETFs:
ETFs:
Equity 2,447,248 100,756 (449,140) (17,122) 2,081,742 2,163,108 ETFs:
Equity 2,447,248 100,756 (449,140) (17,122) 2,081,742 2,163,108
Equity
745,373 100,756
122,893 (449,140)
(103,957) (17,122)
(6,216) 2,081,742
758,093 2,163,108
719,931 Equity
745,373 100,756
122,893 (449,140)
(103,957) (17,122)
(6,216) 2,081,742
758,093 2,163,108
719,931
Fixed income
Multi-asset 745,373
9,119 122,893
1,333 (103,957)
(1,441) (6,216)
(136) 758,093
8,875 719,931
8,231 Fixed income
Multi-asset 745,373
9,119 122,893
1,333 (103,957)
(1,441) (6,216)
(136) 758,093
8,875 719,931
8,231
Multi-asset
Alternatives 9,119
65,614 1,333
(4,647) (1,441)
70 (136)
(137) 8,875
60,900 8,231
66,599 Multi-asset
Alternatives 9,119
65,614 1,333
(4,647) (1,441)
70 (136)
(137) 8,875
60,900 8,231
66,599
Alternatives
3,267,354 (4,647)
220,335 70
(554,468) (137)
(23,611) 60,900
2,909,610 66,599
2,957,869 Alternatives 65,614 (4,647) 70 (137) 60,900 66,599
ETFs subtotal 3,267,354 220,335 (554,468) (23,611) 2,909,610 2,957,869
ETFs subtotal
Institutional: 3,267,354 220,335 (554,468) (23,611) 2,909,610 2,957,869 ETFs subtotal
Non-ETF Index: 3,267,354 220,335 (554,468) (23,611) 2,909,610 2,957,869
Institutional:
Active: Non-ETF
EquityIndex: 2,388,009 7,019 (366,526) (67,726) 1,960,776 2,088,703
Active:
Equity 199,980 9,882 (34,912) (6,216) 168,734 175,567 Equity
969,583 7,019
34,166 (366,526)
(207,908) (67,726)
(70,194) 1,960,776
725,647 2,088,703
815,123
Equityincome
Fixed 199,980
767,402 9,882
114,742 (34,912)
(95,291) (6,216)
(11,898) 168,734
774,955 175,567
Multi-asset 969,583
8,971 34,166
(917) (207,908)
(1,285) (70,194)
(369) 725,647
6,400 815,123
7,558
Fixed income
Multi-asset 767,402
642,951 114,742
33,950 (95,291)
(112,028) (11,898)
(20,404) 774,955
544,469 715,600
571,448 Multi-asset
Alternatives 8,971
5,534 (917)
(2,481) (1,285)
571 (369)
(326) 6,400
3,298 7,558
4,696
Multi-asset
146,384 33,950
10,252 (112,028)
(243) (20,404)
(2,960) 544,469
153,433 571,448
150,357 Alternatives
Non-ETF Index subtotal 5,534
3,372,097 (2,481)
37,787 571
(575,148) (326)
(138,615) 3,298
2,696,121 4,696
2,916,080
Alternatives
1,756,717 10,252
168,826 (243)
(242,474) (2,960)
(41,478) 153,433
1,641,591 150,357
1,612,972 Non-ETF
Index & ETFsIndex subtotal
subtotal 3,372,097
6,639,451 37,787
258,122 (575,148)
(1,129,616) (138,615)
(162,226) 2,696,121
5,605,731 2,916,080
5,873,949
Active subtotal
Index: 1,756,717 168,826 (242,474) (41,478) 1,641,591 1,612,972 Index & ETFs subtotal 6,639,451 258,122 (1,129,616) (162,226) 5,605,731 5,873,949
Long-term 9,245,776 393,250 (1,503,054) (212,681) 7,923,291 8,224,432
Index:
Equity 2,223,195 (5,432) (341,087) (62,410) 1,814,266 1,937,695
Long-term
755,057 393,250
(77,374) (1,503,054)
1,071 (212,681)
(7,560) 7,923,291
671,194 8,224,432
719,284
Equity
943,960 (5,432)
32,444 (341,087)
(203,501) (62,410)
(68,242) 1,814,266
704,661 1,937,695
792,941
Cash management
Advisory 755,057
9,310 (77,374)
(9,306) 1,071
(4) (7,560)
— 671,194
— 719,284
4,854
Fixed income
Multi-asset 943,960
8,963 32,444
(918) (203,501)
(1,285) (68,242)
(368) 704,661
6,392 792,941
7,550
Advisory
Total 9,310
$ 10,010,143 (9,306)
$ 306,570 (4)
$(1,501,987) —
$(220,241) —
$ 8,594,485 4,854
$ 8,948,570
Multi-asset
Alternatives 8,963
5,534 (918)
(2,482) (1,285)
569 (368)
(325) 6,392
3,296 7,550
4,696
Total $ 10,010,143 $ 306,570 $(1,501,987) $(220,241) $ 8,594,485 $ 8,948,570
Alternatives
3,181,652 (2,482)
23,612 569
(545,304) (325)
(131,345) 3,296
2,528,615 4,696
2,742,882 The following table presents component changes in AUM by product type for 2022.
Index subtotal
4,938,369 23,612
192,438 (545,304)
(787,778) (131,345)
(172,823) 2,528,615
4,170,206 2,742,882
4,355,854 The following table presents component changes in AUM by product type for 2022.
Institutional subtotal
Long-term 4,938,369
9,245,776 192,438
393,250 (787,778)
(1,503,054) (172,823)
(212,681) 4,170,206
7,923,291 4,355,854
8,224,432 Net Full year
Long-term
755,057 393,250
(77,374) (1,503,054)
1,071 (212,681)
(7,560) 7,923,291
671,194 8,224,432
719,284 December 31, inflows
Full year
December (outflows)
inflows Market change FX impact(1) 2022 31,
December AUM(2)
average
Cash management
Advisory 755,057
9,310 (77,374)
(9,306) 1,071
(4) (7,560)
— 671,194
— 719,284
4,854
(in millions) 2021 (outflows) Market change FX impact(1) 2022 AUM(2)
Advisory
Total 9,310
$ 10,010,143 (9,306)
$ 306,570 (4)
$(1,501,987) —
$(220,241) —
$ 8,594,485 4,854
$ 8,948,570 Equity $ 5,342,360 $ 105,103 $ (915,906) $ (96,203) $ 4,435,354 $ 4,677,952
Total $ 10,010,143 $ 306,570 $(1,501,987) $(220,241) $ 8,594,485 $ 8,948,570 Equity
2,822,041 $ 249,780
105,103 $ (444,455)
(915,906) $ (90,543)
(96,203) $ 4,435,354
2,536,823 $ 4,677,952
2,551,972
(1) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. Fixed income 2,822,041 249,780 (444,455) (90,543) 2,536,823 2,551,972
Multi-asset 816,494 31,222 (140,818) (21,994) 684,904 723,919
(2) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months. Multi-asset
Alternatives: 816,494 31,222 (140,818) (21,994) 684,904 723,919
(2) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months. Alternatives:
Illiquid alternatives 102,579 16,052 1,112 (1,992) 117,751 111,075
Illiquidalternatives
Liquid alternatives 102,579
87,348 16,052
(1,690) 1,112
(3,710) (1,992)
(1,294) 117,751
80,654 111,075
84,024
Liquid alternatives
Currency and commodities(3) 87,348
74,954 (1,690)
(7,217) (3,710)
723 (1,294)
(655) 80,654
67,805 84,024
75,490
Currencysubtotal
Alternatives and commodities(3) 74,954
264,881 (7,217)
7,145 723
(1,875) (655)
(3,941) 67,805
266,210 75,490
270,589
Alternatives subtotal 264,881 7,145 (1,875) (3,941) 266,210 270,589
Long-term 9,245,776 393,250 (1,503,054) (212,681) 7,923,291 8,224,432
Long-term
755,057 393,250
(77,374) (1,503,054)
1,071 (212,681)
(7,560) 7,923,291
671,194 8,224,432
719,284
Cash management
Advisory 755,057
9,310 (77,374)
(9,306) 1,071
(4) (7,560)
— 671,194
— 719,284
4,854
Advisory
Total 9,310
$ 10,010,143 (9,306)
$ 306,570 (4)
$(1,501,987) —
$(220,241) —
$ 8,594,485 4,854
$ 8,948,570
Total $ 10,010,143 $ 306,570 $(1,501,987) $(220,241) $ 8,594,485 $ 8,948,570
AUM decreased $1.4 trillion to $8.6 trillion at Net market depreciation of $1.5 trillion was primarily
December 31, 2022
AUM decreased $1.4from $10.0
trillion trillion
to $8.6 at December
trillion at 31, driven by global
Net market equity and
depreciation fixedtrillion
of $1.5 income market
was primarily
2021 driven
December by2022
31, net market depreciation
from $10.0 trillion atand the negative
December 31, depreciation.
driven by global equity and fixed income market
impact of foreign
2021 driven by netexchange movements,and
market depreciation partially offset by
the negative depreciation.
AUM decreased $220 billion due to the negative impact of
positive
impact ofnet inflows,
foreign led by flows
exchange into bond
movements, ETFs, offset by
partially
foreign exchange
AUM decreased movements,
$220 due
billion due toto the
the strengthening
negative impact of
significant
positive netoutsourcing mandates
inflows, led by flows intoand growth
bond in private
ETFs,
the US dollar,
foreign largely
exchange against the
movements, British
due to thepound, the
strengthening of
markets.
significant outsourcing mandates and growth in private
Japanese yen largely
the US dollar, and theagainst
euro. the British pound, the
markets.
Japanese yen and the euro.
DISCUSSION OF FINANCIAL RESULTS The Company advises global financial institutions, Nonoperating income (expense) includes the effect of Reserve Bank stock. The Company does not engage in
DISCUSSION OF FINANCIAL RESULTS regulators,
The Company andadvises
governmentglobalentities
financial across a range of risk,
institutions, changes in theincome
Nonoperating valuations on investments
(expense) andeffect
includes the earnings
of on proprietary
Reserve Bank trading
stock.activities that could
The Company doesconflict within
not engage the
Introduction
regulatory,
regulators, capital markets and
and government strategic
entities across services.
a rangeFees of risk, equity
changesmethod
in the investments
valuations onasinvestments
well as interest
andand
earnings on interests of trading
proprietary its clients.
activities that could conflict with the
Introduction
The Company derives a substantial portion of its revenue earned for advisory
regulatory, services,and
capital markets which are included
strategic services. inFees dividend income
equity method and interest
investments asexpense. The Company
well as interest and interests of its clients.
advisory
earned for and other revenue,
advisory services,are whichdetermined
are includedusing infixed- primarily holds seed
dividend income andand co-investments
interest expense. The inCompany
sponsored In addition, nonoperating income (expense) includes the
from investment
The Company advisory
derives and administration
a substantial portion of fees, which
its revenue
rate fees and
advisory and other
are recognized
revenue, are over time as theusing
determined related
fixed- investment products
primarily holds thatco-investments
seed and invest in a variety
in of asset
sponsored impact of changes
In addition, in the valuations
nonoperating of consolidated
income (expense) includes the
are
from recognized
investment asadvisory
the services are performed over
and administration fees,time
which
services
rate feesareandcompleted.
are recognized over time as the related classes, including
investment productsprivate
that equity,
invest inprivate credit,
a variety hedge
of asset sponsored investment
impact of changes products
in the (“CIPs”).
valuations The portion of
of consolidated
because the customer
are recognized is receiving
as the services and consuming
are performed over timethe
services are completed. funds and
classes, real assets.
including Investments
private generally
equity, private are
credit, made for
hedge nonoperating income (expense)
sponsored investment not attributable
products (“CIPs”). to the
The portion of
benefits
because as thethey are provided
customer by theand
is receiving Company.
consuming Feesthe are
The Company earns fees for transition management co-investment purposes,
funds and real assets. to establish
Investments a performance
generally are made track
for Company is allocated
nonoperating income to NCI on the
(expense) notconsolidated
attributable to the
primarily
benefits as based
they on areagreed-upon
provided by the percentages
Company.of AUM
Fees and
are
services
The Companyprimarily
earns comprised of commissions
fees for transition managementrecognized record or for regulatory
co-investment purposes,purposes, including
to establish Federal track
a performance statements
Company isof income.to NCI on the consolidated
allocated
recognized
primarily based for services provided percentages
on agreed-upon during the period, of AUM which
and
in connection
services withcomprised
primarily buying and ofselling securities
commissions on behalf
recognized record or for regulatory purposes, including Federal statements of income.
are distinct for
recognized from services
services provided
provided in other
during theperiods. Such
period, which
of its customers.
in connection withCommissions
buying and selling relatedsecurities
to transitionon behalf
fees are affected
are distinct by changes
from services in AUM,
provided including
in other market
periods. Such
management
of its customers. services, which are
Commissions included
related in advisory and
to transition Revenue
appreciation
fees are affected or depreciation,
by changes in foreign
AUM,exchange
including translation
market
other revenue,services,
management are recorded whichonare a trade-date
included inbasis as and
advisory Revenue
and net inflows
appreciation or outflows. Net
or depreciation, inflows
foreign or outflows
exchange translation The table below presents detail of revenue for 2023 and 2022 and includes the product type mix of base fees and
transactions
other revenue, occur.
are recorded on a trade-date basis as
represent
and net inflows the sum of new client
or outflows. Net assets,
inflows additional
or outflowsfundings securities lending
The table below revenuedetail
presents and performance
of revenue forfees.
2023 and 2022 and includes the product type mix of base fees and
transactions occur.
from existing
represent the clients
sum of(including
new client dividend reinvestment),
assets, additional fundings The Company also records revenue related to certain securities lending revenue and performance fees.
withdrawals
from existingofclients assets(including
from, anddividendtermination of, client
reinvestment), minority
The Company investments
also recordsaccounted
revenue forrelated
as equity method
to certain (in millions) 2023 2022
accounts
withdrawals and ofdistributions
assets from, to and investors
termination representing
of, clientreturn investments.
minority investments accounted for as equity method (in millions) 2023 2022
Revenue:
of capital and distributions
accounts return on investments.
to investors Market appreciation
representing return investments. Revenue:
Investment advisory, administration fees and securities lending revenue:
or depreciation
of capital includes
and return current income
on investments. earned
Market on, and
appreciation Operating expense reflects employee compensation and
Investment
Equity: advisory, administration fees and securities lending revenue:
changes in the fair
or depreciation value current
includes of, securities
income held in client
earned on, and benefits,
Operatingdistribution
expense reflectsand servicing
employee costs, direct fundand
compensation
expense, general and and
benefits, distribution administration
servicing costs, expense
directand
fund Equity:
Active $ 2,000 $ 2,147
accounts.
changes inForeignthe fairexchange translation
value of, securities reflects
held the impact
in client
of translating
accounts. non-US
Foreign dollar denominated
exchange translation reflects AUM into US
the impact amortization
expense, general of finite-lived intangibleexpense
and administration assets. and Active
ETFs $ 2,000
4,418 $ 2,147
4,345
dollars for reporting
of translating non-US purposes.
dollar denominated AUM into US amortization of finite-lived intangible assets. ETFs
Non-ETF index 4,418
743 4,345
711
• Employee compensation and benefits expense
dollars for reporting purposes. Non-ETF
Equity index
subtotal 743
7,161 711
7,203
The Company also earns revenue by lending securities on includes salaries,
• Employee commissions,
compensation and benefitstemporary help,
expense
Equity subtotal
Fixed income: 7,161 7,203
behalf of clients,
The Company also primarily
earns revenueto highly byrated
lending banks and on
securities incentive compensation,
includes salaries, employer
commissions, payroll taxes,
temporary help,
severance and related benefit costs.payroll taxes, Fixed income:
Active 1,897 1,977
broker-dealers.
behalf of clients,The securities
primarily loaned
to highly are secured
rated banks and by incentive compensation, employer
severance and related benefit costs. Active
ETFs 1,897
1,230 1,977
1,122
collateral
broker-dealers.in the Theformsecurities
of cash orloaned securities, with minimum
are secured by • Distribution and servicing costs, which are primarily ETFs
Non-ETF index 1,230
353 1,122
396
collateral generally
in the form ranging
of cashfrom approximately
or securities, 102% to
with minimum AUM driven, and
• Distribution include payments
servicing costs, towhich
third parties,
are primarily
112% of the value of the loaned Non-ETF
Fixed incomeindex
subtotal 353
3,480 396
3,495
collateral generally ranging fromsecurities.
approximately Generally,
102%the to primarily
AUM driven, associated with distribution
include payments to thirdand servicing of
parties,
revenue
112% ofearned the value is shared between
of the loaned the Company
securities. and the
Generally, the Fixed income subtotal
Multi-asset 3,480
1,203 3,495
1,299
client investments
primarily associated inwith
certain Companyand
distribution products.
servicing of
funds
revenue or earned
accounts managed
is shared by thethe
between Company
Company from and which
the Multi-asset
Alternatives: 1,203 1,299
client investments in certain Company products.
the
funds securities
or accounts are borrowed.
managed by the Company from which • Direct fund expense primarily consists of third-party Alternatives:
Illiquid alternatives 889 741
the securities are borrowed. nonadvisory
• Direct expenses
fund expense incurred
primarily by the Company
consists of third-party Illiquidalternatives
Liquid alternatives 889
572 741
633
Investment advisory agreements for certain separate related to certain
nonadvisory fundsincurred
expenses for the use of index
by the Company Liquid alternatives
Currency and commodities(1) 572
185 633
216
accounts
Investment and investment
advisory funds provide
agreements for certain for performance
separate trademarks, reference
related to certain fundsdata for indices,
for the use of indexcustodial
Currencysubtotal
Alternatives and commodities(1) 185
1,646 216
1,590
fees basedand
accounts upon relative and/or
investment absolutefor
funds provide investment
performance services,
trademarks, fund administration,
reference data forfund accounting,
indices, custodial
Alternatives subtotal
Long-term 1,646
13,490 1,590
13,587
performance,
fees based upon in addition to baseabsolute
relative and/or fees based on AUM.
investment transfer
services,agent services, shareholder
fund administration, reporting
fund accounting,
Investment
performance, advisory
in additionperformance
to base fees feesbased
generally are earned
on AUM. services, legal expense, Long-term
909 13,587
864
transfer agent services, audit and taxreporting
shareholder services as well
after a givenadvisory
Investment period ofperformance
time when investment
fees generally performance
are earned as other fund-related
services, legal expense, expenses
audit and directly attributable
tax services as wellto Cash
Total management
investment advisory, administration fees and securities lending revenue 909
14,399 864
14,451
exceeds
after a givena contractual
period of time threshold,
when and when it performance
investment is determined the nonadvisory
as other fund-related operations
expenses of the fund. attributable
directly These to Total investment
Investment advisory,
advisory administration
performance fees: fees and securities lending revenue 14,399 14,451
that
exceedsthe fees are no longer
a contractual probable
threshold, andofwhen significant reversal.
it is determined expenses may vary
the nonadvisory over timeofwith
operations the fluctuations
fund. These in Investment
Equity advisory performance fees: 99 49
As
that such, the timing
the fees are no of recognition
longer probable ofofperformance fees may
significant reversal. AUM,
expensesnumber
may of varyshareholder
over time with accounts, or otherin
fluctuations Equity
Fixed income 99
4 49
25
increase
As such, the timingvolatilityof of the Company’s
recognition revenue and
of performance fees may attributes
AUM, number directly related to volume
of shareholder accounts, of business.
or other Fixed income
Multi-asset 4
28 25
earnings.
increase the Thevolatility
magnitude of theof Company’s
performance fees can
revenue andfluctuate attributes directly related to volume of business. Multi-asset 28 25
• General and administration expense includes Alternatives:
quarterly
earnings. due The to the timing
magnitude ofof carried interest
performance feesrecognition
can fluctuate on
marketing
• General and and promotional (including
administration expense includestravel and Alternatives:
Illiquid alternatives 273 296
illiquid
quarterly alternative
due to the products
timing of and a greater
carried interestnumber and size
recognition on
entertainment
marketing and expense),
promotional occupancy
(including and office-
travel and Illiquidalternatives
Liquid alternatives 273
150 296
119
of liquidalternative
illiquid products with performance
products and a greatermeasurement
number and periods
size
that end products
in the third and fourth quarters. related, portfolio
entertainment servicesoccupancy
expense), (including and clearing expense
office- Liquid alternatives
Alternatives subtotal 150
423 119
415
of liquid with performance measurement periods
related
related,to transition
portfolio management
services (including services
clearing andexpense Alternatives
Total investmentsubtotal
advisory performance fees 423
554 415
514
that end in the third and fourth quarters.
The Company offers investment management technology market
related todata costs), sub-advisory,
transition managementtechnology, services and Total investment
Technology advisory
services performance fees
revenue 554
1,485 514
1,364
systems,
The Company risk management
offers investment services, wealth management
management technology professional services,
market data costs), communications,
sub-advisory, contingent
technology, Technology
Distributionservices
fees revenue 1,485
1,262 1,364
1,381
and digital
systems, distribution
risk management tools, all on awealth
services, fee basis. Clients
management consideration fair value
professional services, adjustments, product
communications, launch
contingent
Distribution
Advisory and fees
other revenue: 1,262 1,381
include
and digital banks, insurance
distribution companies,
tools, all on a fee official
basis. institutions,
Clients costs, the net impact
consideration fair valueof foreign
adjustments, currency product launch
Advisory and other revenue:
Advisory 81 56
pension funds, insurance
include banks, asset managers, companies, retail official
distributors and
institutions, remeasurement,
costs, the net impact and ofother general
foreign and
currency
Advisory
Other 81
78 56
107
other
pension investors.
funds, assetFees earned
managers, for technology
retail distributors services are
and administration
remeasurement, expense.
and other general and
administration expense. Other
Total advisory and other revenue 78
159 107
163
primarily recorded
other investors. Feesasearned
services forare performedservices
technology over time are
and are generally Approximately 80% of the Company’s revenue is advisory and other revenue
Total revenue 159
$ 17,859 163
$ 17,873
primarily recordeddetermined
as services using the valueover
are performed of positions
time
on generated
Approximately in US dollars.
80% of theThe Company’s
Company’s revenue
revenue is and Total revenue $ 17,859 $ 17,873
andthe areAladdin
generally platform,
determined or on using
a fixed-rate
the value basis. Revenue
of positions
derived from the sale of software licenses is recognized expense
generated generated in foreign
in US dollars. currencies revenue
The Company’s (primarily andthe (1) Amounts include commodity ETFs.
on the Aladdin platform, or on a fixed-rate basis. Revenue
upon the granting of access rights. euro
expenseandgenerated
British pound) are impacted
in foreign currencies by (primarily
foreign exchange
the (1) Amounts include commodity ETFs.
derived from the sale of software licenses is recognized
rates.
euro andAnyBritish
effect of foreign
pound) areexchange
impactedrate changeexchange
by foreign on
upon the granting of access rights.
The Company earns distribution and service fees for revenue
rates. Any iseffect
partially offset by
of foreign a changerate
exchange in expense
change on driven by
distributing
The Company investment productsand
earns distribution andservice
providing feessupport
for the Company’s
revenue considerable
is partially offset by anon-dollar
change inexpenseexpensebase driven by
services
distributing to investment
investmentportfolios.
products The and fees are primarily
providing support related to its operations
the Company’s considerable outside the US. expense base
non-dollar
based
services ontoAUM and are portfolios.
investment recognizedThe when fees the
are amount
primarily of related to its operations outside the US.
fees
based is on
known.
AUM and are recognized when the amount of
fees is known.
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product Expense
type:
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product Expense
The following table presents expense for 2023 and 2022.
type:
The following table presents expense for 2023 and 2022.
Percentage of Base Fees Percentage of Average
and Percentage
Securities Lending (in millions) 2023 2022
of Base Revenue
Fees AUM by Product
Percentage Type(1)
of Average
and2023
Securities Lending2022
Revenue AUM by Product Type (1) (in millions) 2023 2022
2023 2022 Expense:
2023 2022 2023 2022 Expense:
Employee compensation and benefits $ 5,779 $ 5,681
Equity:
Employee compensation
Distribution and servicingand benefits
costs $ 5,779
2,051 $ 5,681
2,179
Equity:
Active 14% 14% 4% 5%
Distribution and servicing costs
Direct fund expense 2,051
1,331 2,179
1,226
Active
ETFs 14%
31% 14%
30% 4%
24% 5%
24%
Direct
Generalfund
andexpense
administration expense: 1,331 1,226
ETFs
Non-ETF index 31%
5% 30%
5% 24%
23% 24%
General and administration
Marketing expense:
and promotional 344 331
Non-ETF
Equity index
subtotal 5%
50% 5%
49% 23%
51% 24%
53%
Marketing and
Occupancy andpromotional
office related 344
418 331
403
Equity subtotal
Fixed income: 50% 49% 51% 53%
Occupancy
Portfolio and office related
services 418
270 403
280
Fixed income:
Active 13% 14% 12% 11%
Portfolio services
Sub-advisory 270
81 280
80
Active
ETFs 13%
9% 14%
8% 12%
9% 11%
8%
Sub-advisory
Technology 81
607 80
600
ETFs
Non-ETF index 9%
2% 8%
3% 9%
8% 8%
9%
Technology services
Professional 607
195 600
180
Non-ETF
Fixed incomeindex
subtotal 2%
24% 3%
25% 8%
29% 9%
28%
Professional services
Communications 195
47 180
44
Fixed income subtotal
Multi-asset 24%
8% 25%
9% 29%
9% 28%
8%
Communications
Foreign exchange remeasurement 47
(6) 44
10
Multi-asset
Alternatives: 8% 9% 9% 8%
Foreign exchange
Contingent remeasurement
consideration fair value adjustments (6)
3 10
3
Alternatives:
Illiquid alternatives 7% 5% 1% 1%
Contingent
Product consideration
launch costs fair value adjustments 3
— 3
6
Illiquidalternatives
Liquid alternatives 7%
4% 5%
4% 1% 1%
Product
Other launch
general costs
and administration —
252 6
223
Liquid alternatives
Currency and commodities(2) 4%
1% 4%
2% 1% 1%
Other general
Total and
general administration
and administration expense 252
2,211 223
2,160
Currency subtotal
Alternatives and commodities(2) 1%
12% 2%
11% 1%
3% 1%
3%
Total general
Restructuring chargeand administration expense 2,211
61 2,160
91
Alternatives subtotal 12% 11% 3% 3%
Long-term 94% 94% 92% 92% Restructuringofcharge
Amortization intangible assets 61
151 91
151
Long-term
Cash management 94%
6% 94%
6% 92%
8% 92%
8% Amortization of intangible assets 151 151
Total expense $ 11,584 $ 11,488
Cash management
Total AUM 6%
100% 6%
100% 8%
100% 8%
100% Total expense $ 11,584 $ 11,488
Total AUM 100% 100% 100% 100% Expense increased $96 million, or 1%, from 2022, General and administration expense increased $51 million
reflecting higher direct
Expense increased $96 fund expense,
million, or 1%,employee
from 2022, from 2022,
General andprimarily reflecting
administration higherincreased
expense occupancy$51 and
million
(2) Amounts include commodity ETFs. compensation
reflecting higherand benefits
direct fundexpense
expense,and general and
employee office related
from 2022, expense,
primarily higher professional
reflecting services
higher occupancy and
(2) Amounts include commodity ETFs. administration
compensation and expense, partially
benefits offset
expense andbygeneral
lower and expense, and expense,
office related higher marketing and promotional
higher professional expense,
services
Revenue of $17.9 billion in 2023 was relatively flat primarily reflecting higher revenue from long-only equity
distribution
administration andexpense,
servicingpartially
costs. offset by lower including
expense, andthe higher
impactmarketing
from higher andtravel and entertainment
promotional expense,
compared
Revenue ofwith 2022,
$17.9 primarily
billion in 2023 driven by the negative
was relatively flat and liquidreflecting
primarily alternative products,
higher revenuepartially
from offset by lower
long-only equity
distribution and servicing costs. expense,
includingandthe higher
impactother
from general and administration
higher travel and entertainment
impact
comparedof markets on average
with 2022, primarilyAUM,
driven partially offset by
by the negative revenue
and liquidfrom illiquid alternative
alternative and long-only
products, partially fixed
offset by lower Employee compensation and benefits expense increased expense, including
and highercosts
otherrelated
general toand
certain legal matters,
administration
higher
impacttechnology
of markets onservices revenue.
average AUM, partially offset by income
revenueproducts.
from illiquid alternative and long-only fixed $98 millioncompensation
Employee from 2022, reflecting higher
and benefits base increased
expense partially
expense,offset by the
including impact
costs of foreign
related exchange
to certain legal matters,
higher technology services revenue. income products. compensation,
$98 million from primarily as a result
2022, reflecting of base
higher basesalary
Investment advisory, administration fees and securities Technology services revenue of $1.5 billion in 2023 remeasurement.
partially offset by the impact of foreign exchange
increases, and higher
compensation, severance,
primarily partially
as a result of base offset by lower
salary remeasurement.
lending revenue
Investment of $14.4
advisory, billion in 2023
administration feesdecreased
and securities increased
Technology $121 million
services from $1.4
revenue billion
of $1.5 in 2022,
billion in 2023
incentive
increases,compensation, largely driven
and higher severance, by offset
partially lower operating
by lower Restructuring charges of $61 million and $91 million,
$52 million
lending fromof
revenue $14.5 billion
$14.4 in in
billion 2022,
2023 primarily
decreaseddriven by reflecting
increased the$121onboarding of several
million from largeinclients
$1.4 billion 2022, and the
income.
incentive compensation, largely driven by lower operating comprised
Restructuringof severance
charges ofand
$61compensation
million and $91 expense
million,for
the
$52negative impact
million from of market
$14.5 billion inbeta on average
2022, primarilyAUM,
driven by impact of 2023
reflecting eFront on-premise
the onboarding of severallicense renewals,
large clients andfor
the
income. accelerated
comprised ofvesting of previously
severance granted deferred
and compensation expense for
partially offset
the negative by organic
impact basebeta
of market fee growth and higher
on average AUM, which
impactaof majority of the on-premise
2023 eFront revenue is recognized at the time
license renewals, for Distribution and servicing costs decreased $128 million compensation awards,
accelerated vesting were recorded
of previously in 2023
granted and 2022,
deferred
securities lending
partially offset revenue.base
by organic Securities lending
fee growth andrevenue
higher of of renewal.
which a majority of the revenue is recognized at the time from 2022, primarily
Distribution reflecting
and servicing coststhe impact of
decreased lower
$128 million respectively,
compensation asawards,
previously described.
were recorded The impact
in 2023 andof2022,
these
$675 million
securities increased
lending $76Securities
revenue. million from $599 revenue
lending million in
of of renewal. average AUM.
from 2022, primarily reflecting the impact of lower
Distribution fees of $1.3 billion in 2023 decreased restructuring
respectively, ascharges has described.
previously been excluded The from
impactourof“as
these
2022, primarily
$675 million reflecting
increased higher
$76 millionspreads.
from $599 million in average AUM.
$119 millionfees
Distribution fromof$1.4
$1.3billion
billioninin2022,
2023primarily
decreased reflecting adjusted” financial
restructuring results.
charges See Non-GAAP
has been excluded fromFinancial
our “as
2022, primarily reflecting higher spreads. Direct fund expense increased $105 million from 2022,
Investment advisory performance fees of $554 million in impact of lower
$119 million fromaverage AUM. in 2022, primarily reflecting
$1.4 billion Measures for further
adjusted” financial information
results. on as adjusted
See Non-GAAP items.
Financial
primarily
Direct fundreflecting
expensethe impact of
increased higher
$105 average
million fromAUM.
2022,
2023 increased
Investment $40 million
advisory from $514
performance fees ofmillion
$554in 2022,in
million impact of lower average AUM. Measures for further information on as adjusted items.
primarily reflecting the impact of higher average AUM.
2023 increased $40 million from $514 million in 2022,
Nonoperating Results 2022 Income tax expense (GAAP) reflected: Separate Account Assets and Liabilities and Separate
Nonoperating Results
The summary of nonoperating income (expense), less net income (loss) attributable to NCI for 2023 and 2022 was as 2022 Income tax expense (GAAP) reflected: Account
SeparateCollateral Held under
Account Assets Securitiesand
and Liabilities Lending
Separate
• a discrete tax benefit of $148 million, primarily related Agreements
Account Collateral Held under Securities Lending
follows:
The summary of nonoperating income (expense), less net income (loss) attributable to NCI for 2023 and 2022 was as todiscrete
the resolution of certain outstanding tax matters;
•a tax benefit of $148 million, primarily related Agreements
follows: to the resolution of certain outstanding tax matters; Separate account assets are maintained by BlackRock Life
(in millions) 2023 2022 • a discrete tax benefit of $87 million, related to stock- Limited,
Separateaaccount
wholly owned
assetssubsidiary of theby
are maintained Company
BlackRock that is
Life
(in millions)
Nonoperating income (expense), GAAP basis $2023
880 $2022
(95) •abased compensation
discrete tax benefit of awards that vested
$87 million, relatedin 2022; and
to stock- a registered
Limited, life insurance
a wholly companyofinthe
owned subsidiary theCompany
UK, and that is
Nonoperating
Less: income
Net income (loss)(expense), GAAP
attributable basis
to NCI $ 174
880 $ (184)
(95) based compensation awards that vested in 2022; and represent
a registered segregated assets
life insurance held forin
company purposes of funding
the UK, and
• a discrete tax benefit of $35 million associated with individual and group pension
represent segregated assets heldcontracts. The Company
for purposes of funding
Less: Net income (loss) attributable to NCI 174 (184)
Nonoperating income (expense), net of NCI 706 89 •athe net noncash
discrete tax benefit
tax benefit of $35 related
million to the revaluation
associated with records
individualequal
andand offsetting
group pensionseparate
contracts. account liabilities.
The Company
Nonoperating
Less: income
Hedge gain (loss)(expense), netcash
on deferred of NCI
compensation plans(1) 706
58 89
— of
thecertain deferred
net noncash taxincome
benefittax liabilities.
related to the revaluation The separate
records equalaccount assets separate
and offsetting are not available
accountto creditors
liabilities.
Less: Hedge gain
Nonoperating (loss)(expense),
income on deferred
netcash compensation
of NCI, plans(1)
as adjusted(2) 58
$ 648 $ —
89 of certain deferred income tax liabilities. of
Thethe Company
separate and the
account holders
assets are of
notthe pensiontocontracts
available creditors
The as adjusted effective tax rate of 20.7% for 2022
Nonoperating income (expense), net of NCI, as adjusted (2) $ 648 $ 89 have
of theno recourseand
Company to the
theCompany’s
holders of the assets. The net
pension contracts
excluded the $35effective
The as adjusted million net noncash
tax rate benefit
of 20.7% formentioned
2022
(in millions) 2023 2022 above as it will notmillion
have anetcash flow impact and to ensure investment income
have no recourse to attributable
the Company’s to separate account
assets. The net
excluded the $35 noncash benefit mentioned
(in millions) 2023 2022 comparability assets accrues
investment directly
income to the contract
attributable owners
to separate and is not
account
Net gain (loss) on investments, net of NCI above as it willamong
not have periods
a cashpresented.
flow impact and to ensure
reported on thedirectly
assets accrues consolidated
to the statements
contract ownersof income.
and isWhile
not
NetPrivate
gain (loss) on investments, net of NCI
equity $ 349 $ 88 comparability among periods presented.
In January 2024, the Company reorganized certain of its BlackRock
reported onhas theno economic interest
consolidated statementsin these assets or
of income. While
Private
Real equity
assets $ 349
13 $ 88
28
intellectual property
In January 2024, the framework to better align
Company reorganized the of its
certain liabilities,
BlackRockBlackRock earns an
has no economic investment
interest advisory
in these assetsfee or for
Real assets
Other alternatives(3) 13
49 28
5 the serviceBlackRock
liabilities, of managing earnsthese assets on behalf
an investment of its
advisory fee for
corporate
intellectualstructure
propertyfor future commercial
framework business
to better align the
alternatives(3)
Other investments (4) 49
66 5
(201) growth
corporateobjectives.
structureAtforthis time,commercial
future the Company is still
business clients.
the service of managing these assets on behalf of its
Other investments
Hedge gain (loss) on
(4)
deferred cash compensation plans(1) 66
58 (201)
— evaluating the impact
growth objectives. to the
At this consolidated
time, the Company financial
is still clients.
Hedge gain (loss) on deferred cash compensation plans(1) 58 — statements. In addition, the Company records on its consolidated
Subtotal 535 (80) evaluating the impact to the consolidated financial
statements of financial
In addition, the Company condition
records the separate
on its account
consolidated
Subtotal
Other gains (losses)(5) 535
(10) (80)
229 statements.
collateral
statements obtained under
of financial BlackRock
condition theLife Limited
separate account
Other
Total gains(loss)
net gain (losses)(5)
on investments, net of NCI (10)
525 229
149 securities lending arrangements
collateral obtained under BlackRock for which it has legal title
Life Limited
STATEMENT OF FINANCIAL CONDITION
Total net gain (loss) on investments, net of NCI 525 149 as its own lending
securities asset in arrangements
addition to an equal
for whichanditoffsetting
has legal title
Interest and dividend income 473 152 OVERVIEW
STATEMENT OF FINANCIAL CONDITION
Interest and dividend income
expense 473
(292) 152
(212) OVERVIEW separate
as its ownaccount
asset incollateral
addition to liability
an equalfor the
andobligation
offsettingto
As Adjusted Statement of Financial Condition return
separate theaccount
collateral. The collateral
collateral liabilityisfor
not
theavailable
obligationto to
NetInterest
interestexpense
income (expense) (292)
181 (212)
(60) As Adjusted Statement of Financial Condition creditors
return theofcollateral.
the Company, and the borrowers
The collateral undertothe
is not available
Net interest income (expense)
Nonoperating income (expense), net of NCI
181
706
(60)
89
The following table presents a reconciliation of the
securities
creditors of lending arrangements
the Company, and thehave no recourse
borrowers underto the
the
Nonoperating income (expense), net of cash
NCI compensation plans(1) 706 89
consolidated
The followingstatement
table presentsof financial conditionofpresented
a reconciliation the
Less: Hedge gain (loss) on deferred 58 — Company’s assets.arrangements have no recourse to the
securities lending
on a GAAP basis
consolidated to the consolidated
statement statementpresented
of financial condition of financial
Less: Hedge
Nonoperating gain (loss)
income on deferred
(expense), net of cash compensation
NCI, as adjusted(2) plans(1) 58
$ 648 $ —
89 Company’s assets.
condition,
on a GAAPexcluding
basis to the the impact of separate
consolidated statementaccount
of financial
Nonoperating income (expense), net of NCI, as adjusted(2) $ 648 $ 89 Consolidated Sponsored Investment Products
(1) Amount relates to the gain (loss) from economically hedging BlackRock’s deferred cash compensation plans. assets andexcluding
condition, separate account
the impact collateral held account
of separate under
securities
assets andlending
separate agreements (directlyheld
account collateral related to lending
under Consolidated
The CompanySponsored Investment
consolidates Products investment
certain sponsored
(1) Amount relates to the gain (loss) from economically hedging BlackRock’s deferred cash compensation plans.
(2) Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book
separate
securitiesaccount
lendingsecurities)
agreements and separate
(directly account
related to lending products accounted
The Company for as variable
consolidates interest entities
certain sponsored investment
value. See Non-GAAP
(2) Management believesFinancial Measures
nonoperating for(expense),
income further information
net of NCI,onasother non-GAAP
adjusted, financialmeasure
is an effective measures.
for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book
liabilities and separate
separate account account
securities) andcollateral
separateliabilities
account under (“VIEs”)
productsand voting rights
accounted for asentities
variable (“VREs”).
interestSee Note 2,
entities
value. See Non-GAAP Financial Measures for further information on other non-GAAP financial measures.
(3) Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions. securities lending
liabilities and agreements
separate accountand CIPs. liabilities under
collateral Significant
(“VIEs”) andAccounting Policies,
voting rights in(“VREs”).
entities the notesSeeto the
Note 2,
(3) Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions. securities lending agreements and CIPs.
(4) Amounts primarily include net gains (losses) related to BlackRock’s seed investment portfolio, net of the impact of certain hedges. consolidated financial statements
Significant Accounting Policies, in thecontained
notes tointhe
Part II,
The Company presents the as adjusted statement of
(4) Amounts primarily include net gains (losses) related to BlackRock’s seed investment portfolio, net of the impact of certain hedges.
(5) The amounts for 2022 primarily include nonoperating noncash pre-tax gains in connection with strategic minority investment in iCapital of approximately $267 million. Additional amounts Item 8 of this financial
consolidated filing for more information
statements on the
contained in Part II,
financial
The Company condition as additional
presents information
the as adjusted to enable
statement of
include
(5) The noncash
amounts pre-taxprimarily
for 2022 gains (losses) related
include to the revaluation
nonoperating of certain
noncash pre-tax other
gains minority investments.
in connection with strategic minority investment in iCapital of approximately $267 million. Additional amounts
Company’s
Item 8 of thisconsolidation
filing for morepolicy.
information on the
investors to excludeas
financial condition certain assets
additional that have equal
information and
to enable
include noncash pre-tax gains (losses) related to the revaluation of certain other minority investments. Company’s consolidation policy.
offsetting
investors to liabilities
excludeor NCI that
certain ultimately
assets that have do equal
not haveandan The Company cannot readily access cash and cash
impact
offsettingon liabilities
stockholders’
or NCI equity
that or cash flows.
ultimately do not have an equivalents
The Company or cannot
other assets
readilyheld by CIPs
access cashtoand
usecash
in its
Income Tax Expense
Management views the as
impact on stockholders’ adjusted
equity or cashstatement
flows. of financial operating
equivalents activities.
or other In addition,
assets held the Company
by CIPs to usecannot
in its
Income Tax Expense
condition,
Management which contains
views the as non-GAAP financial measures,
adjusted statement of financial readily sellactivities.
operating investments held by CIPs
In addition, in order to
the Company obtain
cannot
GAAP As Adjusted
as an economic
condition, whichpresentation
contains non-GAAPof the Company’s total
financial measures, cash forsell
readily useinvestments
in the Company’s
held byoperations.
CIPs in order to obtain
(in millions) 2023 GAAP 2022 As Adjusted2022
2023 assets and liabilities;
as an economic however,ofitthe
presentation does not advocate
Company’s totalthat cash for use in the Company’s operations.
(in millions) 2023 2022 2023 2022 investors
assets and consider such
liabilities; non-GAAP
however, it doesfinancial measures
not advocate thatin
Operating income(1) $6,275 $6,385 $6,593 $6,711
Operating income(1)income (expense)(1)(2)
Total nonoperating $6,275
$ 706 $6,385
$ 89 $6,593
$ 648 $6,711
$ 89 isolation
investorsfrom,
consideror assuch
a substitute
non-GAAP for,financial
financialmeasures
informationin
Total nonoperating
Income income
before income taxes(expense)
(2) (1)(2) $ 706
$6,981 $ 89
$6,474 $ 648
$7,241 $ 89
$6,800
prepared in accordance
isolation from, with GAAP.
or as a substitute for, financial information
Income before income taxes $6,981 $6,474 $7,241 $6,800
prepared in accordance with GAAP.
tax expense (2)
$1,479 $1,296 $1,549 $1,409
Income tax
Effective taxexpense
rate $1,479
21.2% $1,296
20.0% $1,549
21.4% $1,409
20.7%
Effective tax rate 21.2% 20.0% 21.4% 20.7%
(1) As adjusted items are described in more detail in Non-GAAP Financial Measures.
(1) As adjusted items are described in more detail in Non-GAAP Financial Measures.
(2) Net of net income (loss) attributable to NCI.
(2) Net of net income (loss) attributable to NCI.
The Company’s tax rate is affected by tax rates in foreign • a discrete tax benefit of $41 million, related to stock-
jurisdictions
The Company’s andtaxthe relative
rate amount
is affected by of
taxincome
rates inearned
foreignin •abased compensation
discrete awards
tax benefit of that vested
$41 million, in 2023.
related to stock-
those jurisdictions,
jurisdictions and thewhich theamount
relative Company expects earned
of income to be fairly
in based compensation awards that vested in 2023.
On August 16, 2022, the Inflation Reduction Act of 2022
consistent in the near
those jurisdictions, term.
which The
the significant
Company foreign
expects to be fairly
(“IRA”)
On Augustwas 16,
enacted
2022,into
thelaw, whichReduction
Inflation became effective
Act of 2022
jurisdictions
consistent inthat haveterm.
the near different
The statutory
significanttax rates than
foreign
January 1, 2023
(“IRA”) was andinto
enacted introduced new
law, which provisions
became including
effective
the US federal
jurisdictions statutory
that rate of 21%
have different include
statutory taxthe UK,
rates than
a corporate
January bookand
1, 2023 minimum tax and
introduced new anprovisions
excise taxincluding
on net
Canada, Germany
the US federal and Ireland.
statutory rate of 21% include the UK,
stock repurchases.
a corporate The provisions
book minimum tax andwithin the IRA
an excise tax did not
on net
Canada, Germany and Ireland.
2023 Income tax expense (GAAP) reflected: have
stockarepurchases.
material impact
The on BlackRock’s
provisions consolidated
within the IRA did not
2023 Income tax expense (GAAP) reflected: financial statements.
have a material impact on BlackRock’s consolidated
• a discrete tax benefit of $201 million, related to the financial statements.
•aresolution of certain
discrete tax benefitoutstanding tax matters;
of $201 million, and
related to the
resolution of certain outstanding tax matters; and
December 31, 2023 “economic” basis, which eliminates the portion of and hedged exposures, to reflect another helpful measure
December 31, 2023
Separate investments that does
“economic” basis, whichnot impact BlackRock’s
eliminates the portionbook
of value for
andinvestors. The economic
hedged exposures, impact
to reflect of investments
another held
helpful measure
Account
Separate or net incomethat
investments attributable to BlackRock.
does not impact BlackRock’s
BlackRock’s book value pursuant to deferred
for investors. cash compensation
The economic plans is held
impact of investments
GAAP Assets/
Account As management
or net income does not advocate
attributable that investors
to BlackRock. consider
BlackRock’s substantially offset bycash
pursuant to deferred a change in associated
compensation plans is
(in millions) Basis
GAAP Collateral
Assets/
(1) CIPs(2) Adjusted
As such non-GAAP
management financial
does measures
not advocate thatininvestors
isolationconsider
from, or as compensation expense,
substantially offset by a and the in
change impact of the portfolio of
associated
(in millions) Basis Collateral(1) CIPs(2) Adjusted a substitute
such for, financial information
non-GAAP measures inprepared
isolation in
from, or as seed investments
compensation is mitigated
expense, and thebyimpact
futuresofentered into asof
the portfolio
Assets
Assets
Cash and cash equivalents $ 8,736 $ — $ 288 $ 8,448 accordance
a substitute with GAAP. information prepared in
for, financial part
seedof the Company’s
investments macro hedging
is mitigated by futures strategy.
entered Carried
into as
Cash and receivable
Accounts cash equivalents $ 8,736
3,916 $ — $ 288
— $ 8,448
3,916
accordance with GAAP. interest capital
part of the allocations
Company’s macroarehedging
excluded as thereCarried
strategy. is no
The Company presents investments, as adjusted, to impact
interestto BlackRock’s
capital stockholders’
allocations are excludedequity until such
as there is no
Accounts receivable
Investments 3,916
9,740 — —
1,866 3,916
7,874 enable investors
The Company to understand
presents the portion
investments, of investments
as adjusted, to amounts
impact toare realized as
BlackRock’s performanceequity
stockholders’ fees. Finally,
until suchthe
Investments
Separate account assets and collateral held under securities 9,740 — 1,866 7,874 that is owned
enable by the
investors Company, net
to understand theof NCI, as
portion ofainvestments
gauge to
lending account
agreements 60,656 60,656 — —
Company’s
amounts areregulatory
realized asinvestment
performance in Federal Reserve
fees. Finally, theBank
Separate assets and collateral held under securities measure the impact
that is owned of changesnet
by the Company, in net nonoperating
of NCI, as a gauge to stock, whichregulatory
Company’s is not subject to market
investment or interest
in Federal rate risk,
Reserve is
Bank
lending agreements
Operating lease right-of-use assets 60,656
1,421 60,656
— — —
1,421 income
measure(expense)
the impact onof
investments
changes in tonetnet income (loss)
nonoperating excluded from
stock, which is the
not Company’s net economic
subject to market investment
or interest rate risk, is
Operating
Other lease
assets (3) right-of-use assets 1,421
4,960 — —
122 1,421
4,838 attributable to BlackRock.
income (expense) on investments to net income (loss) exposure.
excluded from the Company’s net economic investment
Other assets (3)
Subtotal 4,960
89,429 —
60,656 122
2,276 4,838
26,497 attributable to BlackRock. exposure.
GoodwillSubtotal
and intangible assets, net 89,429
33,782 60,656
— 2,276
— 26,497
33,782 The Company further presents net “economic” investment
Goodwill 33,782 — — 33,782
exposure,
The Companynet of deferred
further cash compensation
presents net “economic”investments
investment
Total assets and intangible assets, net $ 123,211 $ 60,656 $ 2,276 $ 60,279
exposure, net of deferred cash compensation investments
Total assets $ 123,211 $ 60,656 $ 2,276 $ 60,279
Liabilities December 31, December 31,
Liabilities
Accrued compensation and benefits $ 2,393 $ — $ — $ 2,393 (in millions) 2023 31,
December 2022 31,
December
Accrued compensation
Accounts and benefits
payable and accrued liabilities $ 2,393
1,240 $ — $ — $ 2,393
1,240 (in millions) 2023 2022
Investments, GAAP $ 9,740 $ 7,466
Accounts payable and accrued liabilities
Borrowings 1,240
7,918 — — 1,240
7,918 Investments,held
Investments GAAPby CIPs $(5,977)
9,740 $(4,669)
7,466
Borrowings
Separate account liabilities and collateral liabilities under securities 7,918 — — 7,918 Investments held
Net interest in by(1)CIPs
CIPs (5,977)
4,111 (4,669)
3,622
lending account
Separate agreementsliabilities and collateral liabilities under securities 60,656 60,656 — —
NetInvestments,
interest in CIPs (1)
as adjusted 4,111
7,874 3,622
6,419
lendingincome
Deferred agreements
tax liabilities(4) 60,656
3,506 60,656
— — —
3,506
Deferred income tax liabilities(4) 3,506 — — 3,506 Investments, as adjusted
Investments related to deferred cash compensation plans 7,874
(264) 6,419
—
Operating lease liabilities 1,784 1,784
Operating lease liabilities 1,784 — — 1,784 Investments
Hedged related to deferred cash compensation plans
exposures (264)
(1,771) —
(1,461)
Other liabilities 4,474 425 4,049
Other liabilities 4,474 — 4,049 Hedged exposures
Federal Reserve Bank stock (1,771)
(92) (1,461)
(91)
Total liabilities 81,971 60,656 425 20,890
Federal interest
Carried Reserve Bank stock (92)
(1,975) (91)
(1,550)
Total liabilities 81,971 60,656 425 20,890
Equity Carried interest (1,975) (1,550)
Total “economic” investment exposure(2) $ 3,772 $ 3,317
Equity
Total BlackRock, Inc. stockholders’ equity 39,347 — — 39,347
Total “economic” investment exposure(2) $ 3,772 $ 3,317
Total BlackRock,interests
Noncontrolling Inc. stockholders’ equity 39,347
1,893 — —
1,851 39,347
42 (1) Amounts included $1.9 billion and $1.5 billion of carried interest (VIEs) as of December 31, 2023 and 2022, respectively, which has no impact on the Company’s “economic” investment
Noncontrolling
Total equity interests 1,893
41,240 — 1,851 42
39,389 (1) exposure.
Amounts included $1.9 billion and $1.5 billion of carried interest (VIEs) as of December 31, 2023 and 2022, respectively, which has no impact on the Company’s “economic” investment
exposure.
Total equity
liabilities and equity 41,240
$ 123,211 —
$ 60,656 1,851
$ 2,276 39,389
$ 60,279 (2) Amounts do not include investments in strategic minority investments included in other assets on the consolidated statements of financial condition.
Total liabilities and equity $ 123,211 $ 60,656 $ 2,276 $ 60,279 (2) Amounts do not include investments in strategic minority investments included in other assets on the consolidated statements of financial condition.
(1) Amounts represent segregated client assets and related liabilities, in which BlackRock has no economic interest. BlackRock earns an investment advisory fee for the service of managing these The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at
assets on represent
(1) Amounts behalf of its clients. client assets and related liabilities, in which BlackRock has no economic interest. BlackRock earns an investment advisory fee for the service of managing these
segregated December 31,table
The following 2023represents
and 2022: the carrying value of the Company’s economic investment exposure, by asset type, at
assets on behalf of its clients.
(2) Amounts represent the impact of consolidating CIPs. December 31, 2023 and 2022:
(2) Amounts represent the impact of consolidating CIPs. December 31, December 31,
(3) Amount includes property and equipment and other assets. (in millions) 2023 31, 2022 31,
December December
(3) Amount includes property and equipment and other assets. (in millions) 2023 2022
(4) Amount includes approximately $4.3 billion of deferred income tax liabilities related to goodwill and intangibles. See Note 24, Income Taxes, in the notes to the consolidated financial statements Equity/Fixed income/Multi-asset(1) $ 2,786 $ 2,423
(4) contained in Part approximately
Amount includes II, Item 8 of this$4.3
filingbillion
for more information.
of deferred income tax liabilities related to goodwill and intangibles. See Note 24, Income Taxes, in the notes to the consolidated financial statements Equity/Fixed $ 2,786
Alternatives: income/Multi-asset(1) $ 2,423
contained in Part II, Item 8 of this filing for more information.
The following discussion summarizes the significant liabilities), partially offset by a decrease in due from Alternatives:
Private equity 1,491 1,207
changes in assets
The following and liabilities
discussion on a GAAP
summarizes basis. Please
the significant related parties.
liabilities), partially offset by a decrease in due from Private
Real equity
assets 1,491
509 1,207
368
see the consolidated
changes in assets and statements
liabilities onof a
financial condition
GAAP basis. Please as related parties. Real assets
Other alternatives(2) 509
757 368
780
of
seeDecember 31, 2023
the consolidated and 2022 contained
statements of financialincondition
Part II, Item
as Liabilities. Accrued compensation and benefits at Other alternatives(2) 757 780
December
Liabilities. 31, 2023compensation
Accrued increased $121 andmillion fromat
benefits Alternatives subtotal 2,757 2,355
8
ofof this filing.31,
December The discussion
2023 and 2022 does not include
contained changes
in Part II, Item
December 31, 2022, primarily due
2023 increased $121 tomillion
higher from
2023 Alternatives
Hedged subtotal
exposures 2,757
(1,771) 2,355
(1,461)
related
8 of thistofiling.
assets and
The liabilitiesdoes
discussion that are
not equal
includeand changes
offsetting and have
related to assets andno impact on
liabilities that BlackRock’s
are equal and incentive
Decembercompensation accruals.
31, 2022, primarily dueOther liabilities
to higher 2023 at Hedged
Total exposuresinvestment exposure
“economic” $(1,771)
3,772 $(1,461)
3,317
stockholders’
offsetting andequity.
have no impact on BlackRock’s December 31, 2023 increased
incentive compensation $898
accruals. million
Other from at
liabilities Total “economic” investment exposure $ 3,772 $ 3,317
(1) Amounts include seed investments in equity, fixed income, and multi-asset mutual funds/strategies.
stockholders’ equity. December 31, 2022, primarily due
higher from
unit trust
(1) Amounts include seed investments in equity, fixed income, and multi-asset mutual funds/strategies.
Assets. Cash and cash equivalents at December 31, 2023 payables
December(substantially offset by
31, 2022, primarily due antoincrease in unit
higher unit trust
trust (2) Other alternatives primarily include co-investments in credit funds, direct hedge fund strategies, and hedge fund solutions.
included
Assets. Cash $288 million
and cashof cash held by
equivalents CIPs (see Liquidity
at December 31, 2023 receivables recorded within
payables (substantially other
offset by anassets) andinanunit
increase increase
trust (2) Other alternatives primarily include co-investments in credit funds, direct hedge fund strategies, and hedge fund solutions.
As adjusted investment activity for 2023 and 2022 was as follows:
and Capital
included Resources
$288 million offorcash
details
held onbythe change
CIPs in cash
(see Liquidity in the deferred
receivables carriedwithin
recorded interest liability.
other assets)Net deferred
and an increase
As adjusted investment activity for 2023 and 2022 was as follows:
and Capital
cash equivalents
Resourcesduring 2023).
for details on Accounts
the change receivable
in cash at income tax liabilities
in the deferred carriedatinterest
December 31, 2023
liability. increased
Net deferred
(in millions) 2023 2022
December 31, 2023 increased
and cash equivalents $652 Accounts
during 2023). million from receivable at $125
income million from December
tax liabilities 31, 2022,
at December primarily
31, 2023 due to
increased
(in millions) 2023 2022
December 31, 2022, primarily due
higher from
base fee and the
$125effects
millionof from
temporary
Decemberdifferences
31, 2022, associated
primarilywith
due to Investments, as adjusted, beginning balance $ 6,419 $ 6,030
technology
December 31, services
2022,receivables.
primarily due Investments
to higher baseincreased
fee and compensation and benefits
the effects of temporary and the Kreos
differences Transaction,
associated with Investments, as adjusted,
Purchases/capital beginning balance
contributions $ 6,419
1,403 $ 6,030
1,532
$2.3 billion from
technology December
services 31, 2022
receivables. (for moreincreased
Investments partially offset and
compensation by capitalized
benefits andcosts
theand realized
Kreos Transaction, Purchases/capital
Sales/maturities contributions 1,403
(914) 1,532
(695)
information
$2.3 billion fromsee Investments
December 31, herein).
2022 Goodwill
(for moreand investment gains.
partially offset by capitalized costs and realized Sales/maturities
Distributions(1) (914)
(111) (695)
(142)
intangible assets
information increased $139
see Investments million
herein). from and
Goodwill investment gains. Distributions
Market (1)
appreciation(depreciation)/earnings from equity method investments (111)
607 (142)
(224)
December 31, 2022,
intangible assets primarily
increased duemillion
$139 to the Kreos
from Investments Market appreciation(depreciation)/earnings
Carried from equity method investments
interest capital allocations/(distributions) 607
425 (224)
(5)
Transaction,
December 31,partially offset bydue
2022, primarily the amortization
to the Kreos of Investments Carried
(2) interest capital allocations/(distributions) 425 (5)
The Company’s investments were $9.7 billion and Other 45 (77)
intangible
Transaction, assets. Other
partially assets
offset increased
by the $468 million
amortization of
$7.5 billion at December
The Company’s 31, 2023
investments and 2022,
were $9.7 billionrespectively.
and Other(2) as adjusted, ending balance
Investments, 45
$ 7,874 (77)
$ 6,419
from December
intangible 31,
assets. 2022,
Other primarily
assets related$468
increased to anmillion
increase
in unit trust receivables (substantially offsettoby Investments
$7.5 billion atinclude CIPs31,
December accounted
2023 andfor as VIEs
2022, and VREs.
respectively. Investments, as adjusted, ending balance $ 7,874 $ 6,419
from December 31, 2022, primarily related ananincrease (1) Amount includes distributions representing return of capital and return on investments.
increase in unit trust payables recorded within Management reviewsCIPs
Investments include BlackRock’s investments
accounted for as VIEson anVREs.
and
in unit trust receivables (substantially offset byother
an (1) Amount includes distributions representing return of capital and return on investments.
increase in unit trust payables recorded within other Management reviews BlackRock’s investments on an (2) Amount includes the impact of foreign exchange movements.
(2) Amount includes the impact of foreign exchange movements.
LIQUIDITY A ND CAPITAL RESOURCES flows, excluding the impact of the CIPs, provide investors borrowings and a $300 million increase in the aggregate $2.2 billion, respectively, in net capital in certain regulated
LIQUIDITY A ND CAPITAL RESOURCES with
flows,useful information
excluding on the
the impact cash
of the flows
CIPs, of BlackRock
provide investors commitment
borrowings and amount
a $300 under
milliontheincrease
credit facility,
in the partially
aggregate subsidiaries, including BTC,
$2.2 billion, respectively, entities
in net regulated
capital in certainbyregulated
the
BlackRock Cash Flows Excluding the Impact of CIPs relating to its
with useful ability to fund
information additional
on the cash flows operating,
of BlackRock offset by cashamount
commitment dividend payments
under of $3.0
the credit billion,
facility, share
partially Financial
subsidiaries,Conduct Authority
including and Prudential
BTC, entities regulated Regulation
by the
BlackRock Cash Flows Excluding the Impact of CIPs investing
relating toand financing
its ability activities.
to fund BlackRock’s
additional operating, repurchases
offset by cashofdividend
$1.9 billion and $189
payments million
of $3.0 related
billion, to the
share Authority
Financial in the UK,Authority
Conduct and the Company’s broker-dealers.
and Prudential Regulation
The consolidated statements of cash flows include the management
investing and does not advocate
financing activities.that investors consider
BlackRock’s Kreos Transaction.
repurchases of $1.9 billion and $189 million related to the The Company
Authority in the was
UK,inand
compliance with allbroker-dealers.
the Company’s applicable
cash flows of the CIPs.
The consolidated The Company
statements of cash uses
flowsan adjusted
include the such non-GAAP
management doesmeasures in isolation
not advocate from, or as
that investors a
consider Kreos Transaction. regulatory
The Company net was
capital requirements.
in compliance with all applicable
cash flow
flowsstatement, which
of the CIPs. excludes the
The Company usesimpact of CIPs, as
an adjusted substitute for, itsmeasures
such non-GAAP cash flowsinpresented in accordance
isolation from, or as a with A significant portion of the Company’s $7.9 billion of regulatory net capital requirements.
a supplemental
cash non-GAAP
flow statement, whichmeasure
excludestotheassess liquidity
impact and
of CIPs, as GAAP.
substitute for, its cash flows presented in accordance with investments, as adjusted,
A significant portion of theisCompany’s
illiquid in nature and, as
$7.9 billion of such, Undistributed Earnings of Foreign Subsidiaries. As a
capital requirements.
a supplemental The Company
non-GAAP measure believes
to assessthat its cash
liquidity and GAAP. cannot be readily
investments, convertible
as adjusted, to cash.
is illiquid in nature and, as such, result of the 2017
Undistributed Tax Cuts
Earnings of and JobsSubsidiaries.
Foreign Act and the one-time
As a
capital requirements. The Company believes that its cash cannot be readily convertible to cash. mandatory
result of thedeemed
2017 Tax repatriation tax on
Cuts and Jobs untaxed
Act and the one-time
The following table presents a reconciliation of the consolidated statements of cash flows presented on a GAAP basis to Share Repurchases. In January 2023, the Company accumulated
mandatory deemed foreignrepatriation
earnings, US taxincome taxes were
on untaxed
the
Theconsolidated statements
following table presents aofreconciliation
cash flows, excluding the impact statements
of the consolidated of the cash flows of flows
of cash CIPs: presented on a GAAP basis to announced that the Board
Share Repurchases. of Directors
In January 2023, the authorized
Company the provided
accumulated on the Company’s
foreign undistributed
earnings, US incomeforeign
taxes were
the consolidated statements of cash flows, excluding the impact of the cash flows of CIPs: repurchase
announced of thatantheadditional
Board ofseven million
Directors shares under
authorized the earnings.
provided on Thethefinancial statement
Company’s basis in foreign
undistributed excess of tax
Cash Flows the Company’s
repurchase of an existing
additionalshare repurchase
seven program
million shares for a
under basis of itsThe
earnings. foreign subsidiaries
financial statementremains
basis inindefinitely
excess of tax
Impact on Excluding
Cash Flows total of up to approximately
the Company’s existing share 7.9 million shares
repurchase of for a
program reinvested
basis of its in foreign
foreign operations.remains
subsidiaries The Company will
indefinitely
GAAP Cash
ImpactFlows
on Impact of
Excluding BlackRock
total of up tocommon stock. The
approximately 7.9timing
millionand actual
shares of number
(in millions) Basis of CIPs CIPs of continue
reinvested toinevaluate
foreign its capital management
operations. The Company plans.
will
GAAP Cash Flows Impact of shares repurchased
BlackRock common stock. will The
depend timingon a variety
and actualof number
factors,
(in millions) Basis of CIPs CIPs continue to evaluate its capital management plans.
Cash, cash equivalents and restricted cash, December 31, 2021 $ 9,340 $ 308 $ 9,032 including legal limitations,
of shares repurchased price and
will depend onmarket
a varietyconditions.
of factors,
Short-Term Borrowings
Cash,
Net cash
cash equivalents
provided andin)
by/(used restricted cash,
operating December 31, 2021
activities $ 9,340
4,956 $ (712)
308 $ 9,032
5,668 including legal limitations, price and market conditions.
During 2023, the Company repurchased 2.2 million Short-Term Borrowings
2023 Revolving Credit Facility. The Company maintains an
operatingactivities
Net cash provided by/(used in) investing activities 4,956
(1,130) (712)
77 5,668
(1,207)
common
During 2023,sharestheunder
Company the Company’s
repurchased existing share
2.2 million unsecured
2023 Revolvingrevolving
Creditcredit facility
Facility. The which
Company is available
maintains for an
investing activities
Net cash provided by/(used in) financing activities (1,130)
(5,442) 77
592 (1,207)
(6,034)
repurchase
common shares programunder forthe
approximately
Company’s existing $1.5 billion.
shareAt working
unsecured capital and general
revolving corporate
credit facility which purposes (the for
is available
Net cash
Effect provided by/(used
of exchange in) financing
rate changes on cash, activities
cash equivalents and restricted cash (5,442)
(291) 592
— (6,034)
(291) December
repurchase31, 2023, there
program were approximately
for approximately 5.7 million
$1.5 billion. At “2023
working credit facility”).
capital In March
and general 2023, the
corporate 2023 credit
purposes (the
Effect
Net of exchange rate changes
increase/(decrease) in cash, on cash,
cash cash equivalents
equivalents and restricted
and restricted cash cash (291)
(1,907) —
(43) (291)
(1,864) shares
December still31,
authorized
2023, there to be repurchased
were approximately under5.7 themillion facility was amended
“2023 credit facility”).to,
In among other the
March 2023, things,
2023 (1)credit
increase
Net increase/(decrease)
Cash, in cash,
cash equivalents and cash equivalents
restricted and restricted
cash, December 31, 2022cash $ (1,907)
7,433 $ (43)
265 $ (1,864)
7,168 program.
shares still authorized to be repurchased under the the aggregate commitment amount bythings,
$300 million to
facility was amended to, among other (1) increase
Cash, cash equivalents and restricted cash, December 31, 2022
Net cash provided by/(used in) operating activities
$ 7,433
4,165
$ 265
(1,519)
$ 7,168
5,684
program. $5
thebillion,
aggregate(2) extend the maturity
commitment amount datebyto March
$300 2028
million toand
Net Capital Requirements. The Company is required to
operatingactivities
Net cash provided by/(used in) investing activities 4,165
(959) (1,519)
(26) 5,684
(933) (3) change(2)
$5 billion, theextend
secured theovernight
maturity financing
date to March rate 2028
(“SOFR”)and
maintain
Net Capital netRequirements.
capital in certain The regulated
Company subsidiaries
is required to
investing activities
Net cash provided by/(used in) financing activities (959)
(1,992) (26)
1,568 (933)
(3,560)
adjustment
(3) change the to 10 bps per
secured annum for
overnight all SOFR-based
financing rate (“SOFR”)
within
maintaina number
net capitalof jurisdictions,
in certain regulatedwhich issubsidiaries
partially
borrowings.
adjustment to The102023 credit
bps per facility
annum forpermits the Company
all SOFR-based
Net cash
Effect provided by/(used
of exchange in) financing
rate changes on cash, activities
cash equivalents and restricted cash (1,992)
106 1,568
— (3,560)
106 maintained
within a number by retaining cash andwhich
of jurisdictions, cash is equivalent
partially
to request upThe
borrowings. to an additional
2023 $1.0 billion
credit facility permits of the
borrowing
Company
Effect
Net of exchange rate changes
increase/(decrease) in cash, on cash,
cash cash equivalents
equivalents and restricted
and restricted cash cash 106
1,320 —
23 106
1,297 investments
maintained by in retaining
those subsidiaries
cash and or cashjurisdictions.
equivalent As a
capacity,
to requestsubject
up to an toadditional
lender credit $1.0approval,
billion ofwhich could
borrowing
Net increase/(decrease)
Cash, in cash,
cash equivalents and cash equivalents
restricted and restricted
cash, December 31, 2023cash 1,320
$ 8,753 $ 23
288 1,297
$ 8,465 result, such subsidiaries
investments of the Company
in those subsidiaries may be restricted
or jurisdictions. As a
increase
capacity, the overall
subject size of credit
to lender the 2023 credit which
approval, facilitycould
to an
Cash, cash equivalents and restricted cash, December 31, 2023 $ 8,753 $ 288 $ 8,465 in theirsuch
result, ability to transfer of
subsidiaries cash
thebetween
Company different
may be restricted
aggregate
increase the principal amount
overall size of 2023
of the up to credit
$6 billion. Theto2023
facility an
jurisdictions
in their abilityand to their parents.
to transfer cash between Additionally,
different transfers of
Sources of BlackRock’s operating cash primarily include withholdings related to employee stock transactions, credit facility
aggregate requires
principal the Company
amount of up tonot to exceed
$6 billion. Thea2023
cash betweenand
jurisdictions international jurisdictions
to their parents. may have
Additionally, adverse
transfers of
base feesofand
Sources securitiesoperating
BlackRock’s lending revenue, performance
cash primarily include partially offsetrelated
withholdings by $1.2tobillion of proceeds
employee from long-term
stock transactions, maximum leverage
credit facility requiresratio
the(ratio of netnot
Company debt toto earnings
exceed a
tax
cashconsequences that couldjurisdictions
between international discourage may suchhave
transfers.
adverse
fees,
base technology serviceslending
fees and securities revenue, advisory
revenue, and other
performance borrowings.
partially offset by $1.2 billion of proceeds from long-term before
maximum interest, taxes,
leverage depreciation
ratio (ratio of net and
debtamortization,
to earnings
tax consequences that could discourage such transfers.
revenue and distribution
fees, technology services fees.
revenue,BlackRock
advisory uses
andits cash to
other borrowings. BlackRock Institutional Trust Company, N.A. (“BTC”) is where
before net debt equals
interest, total debt less
taxes, depreciation andunrestricted
amortization, cash) of
The Company manages its financial condition and funding to
pay all operating
revenue expenses,
and distribution interest
fees. and principal
BlackRock on to
uses its cash chartered
BlackRockas a national bank
Institutional Trust that does not
Company, N.A.accept
(“BTC”) deposits
is 3 to 1, net
where which
debtwas satisfied
equals totalwith
debta less
ratiounrestricted
of less than cash)1 to 1ofat
maintain appropriate
The Company managesliquidity for the
its financial business.
condition Management
and funding to
borrowings, income
pay all operating taxes, dividends
expenses, interest and andprincipal
repurchases on of or make commercial
chartered as a national loansbankand thatwhose
doespowers
not acceptare limited
deposits December
3 to 1, which 31,was
2023. At December
satisfied 31, 2023,
with a ratio of lessthe Company
than 1 to 1 at
believes
maintainthat the Company’s
appropriate liquidityliquid assets,
for the continuing
business. cash
Management
the Company’s
borrowings, stock,
income acquisitions,
taxes, dividends capital expenditures
and repurchases of flows from operations, borrowing to
or trust
makeand other fiduciary
commercial loans and activities.
whoseBTC provides
powers are limited had no amount
December outstanding
31, 2023. under31,
At December the2023,
2023the credit facility.
Company
believes that the Company’s liquidcapacity
assets, under the cash
continuing
and purchases of
the Company’s co-investments
stock, acquisitions,and seedexpenditures
capital investments. Company’s existing revolving
flows from operations, borrowingcredit facilityunder
capacity and uncommitted
the investment
to trust and management
other fiduciaryand other fiduciary
activities. services,
BTC provides had no amount outstanding under the 2023 credit facility.
Commercial Paper Program. The Company can issue
and purchases of co-investments and seed investments. commercial paper private
Company’s existing placement
revolving program,
credit facility andprovide
uncommitted including
investment investment
management advisory
and other and securities lending
fiduciary services,
For details of the Company’s GAAP cash flows from sufficient resources to meet the Company’s short-term unsecured
Commercialcommercial
Paper Program. paperThenotes (the “CP
Company canNotes”)
issue on a
commercial paper private placement program, provide and agency
includingservices,
investmentto institutional
advisory and clients. BTC islending
securities subject to
operating,
For details investing and financing
of the Company’s GAAP activities,
cash flowssee fromthe long-term cash needs,
sufficient resources to including operating, debt
meet the Company’s and other
short-term and private-placement
unsecured commercial basispaper
up tonotes
a maximum
(the “CP aggregate
Notes”) on a
regulatory capitaltoand
agency services, liquid asset
institutional requirements
clients. BTC is subject to
consolidated statements
operating, investing of cash flows
and financing contained
activities, in Part II,
see the obligations as they
long-term cash come
needs, due andoperating,
including anticipated future
debt and capital
other amount outstanding
private-placement at any
basis up time of $4 billion.
to a maximum The
aggregate
administered
regulatory capital by theandUSliquid
Office of the
asset Comptroller of the
requirements
Item 8 of this statements
consolidated filing. of cash flows contained in Part II, requirements. Liquidity
obligations as they comeresources at December
due and anticipated 31, 2023
future and
capital commercial paper program
amount outstanding is currently
at any time supported
of $4 billion. The by the
Currency.
administered by the US Office of the Comptroller of the
Item 8 of this filing. 2022 were as follows:
requirements. Liquidity resources at December 31, 2023 and 2023 credit facility.
commercial At December
paper program 31, 2023,
is currently BlackRock
supported had
by the
Cash flows provided by/(used in) operating activities, Currency.
2022 were as follows: At December 31, 2023 and 2022, the Company was no
2023CPcredit
Notesfacility.
outstanding.
At December 31, 2023, BlackRock had
excluding
Cash flowsthe impactby/(used
provided of CIPs, primarily include
in) operating the receipt
activities, December 31, December 31, no CP Notes outstanding.
required
At Decemberto maintain
31, 2023 approximately
and 2022, the$1.8 billion was
Company and
of base fees,
excluding thesecurities
impact oflending revenue,include
CIPs, primarily performance fees
the receipt (in millions) 2023 31,
December 2022 31,
December required to maintain approximately $1.8 billion and
and technology
of base serviceslending
fees, securities revenue, offset by
revenue, the payment
performance of
fees (in millions) 2023 2022
Cash and cash equivalents(1) $ 8,736 $ 7,416 Long-Term Borrowings
operating expenses
and technology incurred
services in the
revenue, normal
offset course
by the of
payment of Cash and
and cash
cash equivalents
equivalents(1)
held
Cash $ 8,736 $ 7,416 Long-Term Borrowings
business,
operating including
expenses year-end
incurred in incentive
the normalandcourse
deferred of cash by CIPs
Cash
(2)
and cash equivalents held (288) (265) The carrying value of long-term borrowings at December 31, 2023 included the following:
compensation
business, includingaccrued duringincentive
year-end prior years,
andand income
deferred tax
cash by CIPs(3)
Subtotal (2) (288)
8,448 (265)
7,151 The carrying value of long-term borrowings at December 31, 2023 included the following:
payments.
compensation accrued during prior years, and income tax Subtotal (3) 8,448 7,151 (in millions) Maturity Amount Carrying Value Maturity
Credit facility — undrawn 5,000 4,700
payments. (in millions) Maturity Amount Carrying Value Maturity
Credit facility
Total — undrawn
liquidity resources 5,000
$ 13,448 4,700
$ 11,851 3.50% Notes $ 1,000 $ 1,000 March 2024
Cash flows used in investing activities, excluding the
impact of CIPs, Total liquidity resources $ 13,448 $ 11,851 3.50% Notes(1)
1.25% $ 1,000
772 $ 1,000
771 March 2024
May 2025
Cash flows usedfor in 2023 wereactivities,
investing $933 million and primarily
excluding the (1) Amounts exclude restricted cash.
reflected
impact of$446CIPs,million
for 2023 of were
net investment
$933 million purchases,
and primarily 1.25% Notes(1)
3.20% 772
700 771
698 May 2025
March 2027
(1) Amounts exclude restricted cash.
$344 million
reflected $446ofmillion
purchases of netof investment
property and equipment and
purchases, (2) The Company cannot readily access such cash and cash equivalents to use in its operating 3.20% Notes
3.25% 700
1,000 698
993 March 2027
April 2029
$189
$344 million related
of purchasesto the of
Kreos Transaction.
property and equipment and (2) activities.
The Company cannot readily access such cash and cash equivalents to use in its operating 3.25% Notes
2.40% 1,000 993
996 April 2029
2030
activities.
$189 million related to the Kreos Transaction. (3) The percentage of cash and cash equivalents held by the Company’s US subsidiaries was 2.40% Notes
1.90% 1,000
1,250 996
1,242 April 2030
January 2031
Cash flows used in financing activities, excluding the (3) approximately
The percentage50% at both
of cash December
and cash 31, 2023
equivalents heldand 2022.
by the See NetUS
Company’s Capital
subsidiaries was 1.90% Notes
2.10% 1,250
1,000 1,242
988 January 2031
February 2032
impact of CIPs,
Cash flows usedfor in 2023 wereactivities,
financing $3.6 billion, primarily
excluding the Requirements herein
approximately 50% atforboth
more information
December 31, on net capital
2023 requirements
and 2022. in certain
See Net Capital
regulated subsidiaries. 2.10% Notes
4.75% 1,000
1,250 988
1,230 February 2032
May 2033
resulting
impact offromCIPs,$3.0 billion
for 2023 of cash
were $3.6dividend payments, and
billion, primarily Requirements herein for more information on net capital requirements in certain
regulated subsidiaries. 4.75%
Total Notes
Long-term Borrowings 1,250
$ 7,972 $ 1,230
7,918 May 2033
$1.9 billion
resulting of share
from repurchases,
$3.0 billion of cashincluding $1.5 billionand
dividend payments, in Total liquidity resources increased $1.6 billion during
open marketoftransactions
$1.9 billion and $0.4
share repurchases, billion of$1.5
including employee
billiontax
in Total Long-term Borrowings $ 7,972 $ 7,918
2023, primarily
Total liquidity reflectingincreased
resources cash flows from
$1.6 otherduring
billion operating (1) The carrying value of the 1.25% Notes is calculated using the EUR/USD foreign exchange rate as of December 31, 2023.
open market transactions and $0.4 billion of employee tax activities, $1.2 billion
2023, primarily of proceeds
reflecting from
cash flows long-term
from other operating (1) The carrying value of the 1.25% Notes is calculated using the EUR/USD foreign exchange rate as of December 31, 2023.
activities, $1.2 billion of proceeds from long-term
In May 2023, the Company issued $1.25 billion in future commitments approved by the Company that are Consolidation Company. The impairment assessment performed as of
aggregate
In May 2023, principal amountissued
the Company of 4.75% senior
$1.25 unsecured
billion in not yetcommitments
future legally binding. The Company
approved by the intends
Company to that
make are Consolidation
The Company consolidates entities in which the Company July 31, 2023
Company. Theindicated
impairment no impairment
assessment charge performed wasas of
notes maturing
aggregate on May
principal 25, 2033
amount (the “2033
of 4.75% seniorNotes”).
unsecured The additional capital
not yet legally commitments
binding. The Companyfrom intends
time to time
to make to fund has required.
July 31, 2023 The Company
indicated continues
no impairment to monitor chargeitswas book
The a controlling
Company financial interest.
consolidates entities The company
in which has a
the Company
net
notesproceeds
maturing of on
theMay
2033 Notes
25, 2033are being
(the “2033 used for general
Notes”). The additional investment products for,
capital commitments fromand
timewith, its clients.
to time to fund controlling financial interest when itThe owns a majority value
required.per The
share compared
Company with closing
continues to monitorprices its of its
book
has a controlling financial interest. company hasofa the
corporate
net proceeds purposes, whichNotes
of the 2033 may include
are beingtheused
futurefor general additional investment products for, and with, its clients. VRE or is a primary common
value per stock
sharefor potential
compared indicators
with closing of impairment.
prices of its At
Compensation and Benefit Obligations. The Company has controlling financialbeneficiary
interest when (“PB”) of a VIE.
it owns Assessing
a majority of the
repayment of all or awhich
corporate purposes, portion of the
may $1.0 the
include billion 3.50%
future whether December
common stock 31, 2023, the Company’s
for potential indicators common stock closed
of impairment. At
various compensation
Compensation and Benefitand Obligations.
benefit obligations, including
The Company has VRE or isan entity isbeneficiary
a primary a VIE or a VRE (“PB”) involves
of a VIE.judgment
Assessing and
Notes
repaymentdue March
of all or2024. Interest
a portion of approximately
of the $1.0 billion 3.50% analysis on entity
a structure-by-structure basis. Factors at $811.80,31,
December which2023, exceeded its book common
the Company’s value of $264.96stock closed per
bonuses, commissionsand
various compensation andbenefit
incentive paymentsincluding
obligations, payable, whether an is a VIE or a VRE involves judgment and
$59
Notes million per year
due March is payable
2024. Interestsemi-annually
of approximately on May 25 considered share.
at $811.80, which exceeded its book value of $264.96 per
defined
bonuses,contribution
commissions plan
andmatching
incentivecontribution
payments payable, analysis on in this assessment include
a structure-by-structure the entity’s
basis. Factorslegal
and
$59 November
million per 25
year ofis
each year,semi-annually
payable commencing on on May 25 organization,
considered in the thisentity’s capital
assessment structure,
include the rights
the entity’s of
legal share.
November
and November 25, 2023.
25 of The
each2033
year,Notes may be redeemed
commencing on at obligations, and deferred
defined contribution plan compensation arrangements.
matching contribution Indefinite-lived and finite-lived intangibles. Indefinite-lived
Accrued compensation
obligations, and deferred and benefits at December
compensation arrangements. 31, equity investment
organization, holders,
the entity’s the Company’s
capital structure, contractual
the rights of intangible
Indefinite-livedassets and represent
finite-lived theintangibles.
value of advisory contracts
Indefinite-lived
the option of
November 25,the Company,
2023. in whole
The 2033 Notesor in part,
may at any time
be redeemed at involvement
equity investment with and economic
holders, interest in contractual
the Company’s the entity and
prior to February
the option 25, 2033 at
of the Company, inawhole
“make-whole”
or in part,redemption
at any time 2023 totaled
Accrued $2.4 billionand
compensation andbenefits
included atannual
December incentive
31, acquired
intangibleinassetsbusiness acquisitions
represent the value to manage
of advisory AUM in
contracts
compensation
2023 totaled $2.4 of $1.5 billion,
billion deferred compensation
and included annual incentive of any related party
involvement with orand deeconomic
facto agent implications
interest of theand
in the entity proprietary
acquired in open-end investment funds,
business acquisitions to manage collective
AUM trustin
price,
prior toorFebruary
thereafter25,at2033
100%atofa the principal amount
“make-whole” of the
redemption Company’s
any related partyinvolvement withagent
or de facto the entity. Entities of
implications that
theare
2033
price, Notes, in eachatcase
or thereafter 100%plus
of accrued but unpaid
the principal amount of the $0.5 billion andofother
compensation $1.5compensation
billion, deferred and benefits related
compensation of funds and certain
proprietary open-end other commingled
investment funds, products
collectivewithout
trusta
obligations of $0.4
$0.5 billion and billion.
other Substantially
compensation andall of the incentive
benefits related determined to be VREs are
Company’s involvement withconsolidated if the Company
the entity. Entities that are specified
funds andtermination
certain other date. The assignment
commingled products of indefinite
without a
interest.
2033 Notes,The in
unamortized discount
each case plus accruedandbut
debt issuance
unpaid can exert absolute
determined to be VREs control
areover the financial
consolidated if theand operating
Company
costs areThe
interest. being amortized discount
unamortized over the remaining term of the
and debt issuance compensation liability
obligations of $0.4 wasSubstantially
billion. paid in the firstall quarter of
of the incentive lives to such
specified contractsdate.
termination primarily is based upon
The assignment the
of indefinite
2024, while theliability
compensation deferred compensation
was obligations
paid in the first quarter of are policies
can exertofabsolute
the investee, which
control overgenerally
the financial exists if there
and is
operating following:
lives to such (1)contracts
the assumption primarily thatis there
basedisupon no foreseeable
the
2033 Notes.
costs are being amortized over the remaining term of the greater
policiesthan
of the50% votingwhich
investee, interest. Entities
generally that ifare
exists there is
2033 Notes. payable overthe
2024, while various periods,
deferred with the majority
compensation payable
obligations are limit on the
following: (1)contract period tothat
the assumption managetherethese is no products;
foreseeable
For more information on Company’s borrowings, see over periods
payable over of up to three
various periods,years.
with the majority payable determined
greater thanto 50%be VIEs
votingareinterest.
consolidated Entities if the
thatCompany
are is (2)
limittheonCompany
the contract expects
period to,to
and has the
manage ability
these to,
products;
Note 14, Borrowings,
For more informationin onthe notes to the
Company’s consolidated
borrowings, see over periods of up to three years. the PB of thetoentity.
determined be VIEs BlackRock is deemed
are consolidated to be
if the the PB ofisa
Company continue to operate
(2) the Company theseto,
expects products
and hasindefinitely;
the ability to, (3) the
financial statements contained
Note 14, Borrowings, in the notes into
Part
theII,consolidated
Item 8 of this Purchase Obligations. In the ordinary course of business, VIE if it of
the PB (1)the
has the power
entity. to direct
BlackRock the activities
is deemed to be thethatPBmost
of a products
continue to have multiple
operate theseinvestors
products and are not reliant
indefinitely; (3) theon a
filing.
financial statements contained in Part II, Item 8 of this BlackRock enters into contracts
Purchase Obligations. or purchase
In the ordinary course of obligations
business, significantly
VIE if it (1) has impact the entities’
the power to directeconomic
the activitiesperformance
that most single
products investor or small investors
have multiple group of investors
and are not forreliant
their on a
filing. with third parties
BlackRock enters whereby the third
into contracts parties provide
or purchase obligations and (2) has the
significantly obligation
impact to absorb
the entities’ losses performance
economic or the right to continued
single investor operation;
or small (4)group
current of competitive
investors forfactors their and
services
with thirdtoparties
or on behalf
whereby of BlackRock. Purchase
the third parties provide receive
and (2) benefits that potentially
has the obligation to absorb could be significant
losses or the right to to
the economic
continued conditions
operation; (4) do not indicate
current a finite life;
competitive andand
factors
Contractual Obligations , Commitments and VIE. There
receive is judgment
benefits involved in
that potentially assessing
could whethertothe
be significant the
obligations
services to orrepresent
on behalf executory contracts,
of BlackRock. Purchasewhich are either (5) there isconditions
economic a high likelihood do not of continued
indicate a finite renewal
life; and based
Cont ingencies
Contractual Obligations , Commitments and Company
VIE. Thereis is the PB of ainvolved
judgment VIE. In addition,
in assessing the Company’s
whether the
noncancelable or cancelable
obligations represent executorywith a penalty.which
contracts, At are either on
(5) historical
there is a highexperience.
likelihood In addition,
of continued traderenewal
names/based
Cont ingencies ownership
Company isinterestthe PB in of VIEs
a VIE.isInsubject
addition, to variability
the Company’s and is
The Company’s material contractual obligations, December
noncancelable31, 2023, the Company’s
or cancelable obligations
with a penalty. At primarily trademarks
on historicalare considered
experience. In indefinite-lived
addition, trade names/ intangibles if
commitments
The Company’sand contingencies
material contractualat December
obligations, 31, 2023 reflected
Decemberstandard
31, 2023, service contracts obligations
the Company’s for market data,primarily impacted
ownershipby actions
interest inof other
VIEs investors
is subject to such as on-going
variability and is they are expected
trademarks to generate
are considered cash flows indefinitely.
indefinite-lived intangibles if
include borrowings,
commitments operating leases,
and contingencies investment
at December 31, 2023 technology, office-related
reflected standard service services,
contractsmarketing
for marketand data, redemptions
impacted by actions and contributions. The Company
of other investors such as generally
on-going Indefinite-lived
they are expected intangible
to generate assetscash are not amortized.
flows indefinitely.
commitments,
include borrowings, compensation
operatingand benefits
leases, obligations,
investment promotional services, and services,
technology, office-related obligations for equipment.
marketing and consolidates
redemptions VIEs in which it holds
and contributions. Thean economic
Company interest of
generally Indefinite-lived intangible assets are not amortized.
and purchase obligations.
commitments, compensation and benefits obligations, Purchase
promotional obligations
services, areandrecorded
obligationson the consolidated
for equipment. 10% or greater
consolidates VIEsand indeconsolidates
which it holds an such VIEs once
economic its of
interest Finite-lived intangible assets represent finite-lived
and purchase obligations. financial
Purchasestatements
obligationswhen serviceson
are recorded arethe
provided and, as
consolidated economic
10% or greaterinterest andfalls below 10%. As
deconsolidates suchof December
VIEs once its 31, investor/customer
Finite-lived intangible relationships,
assets represent technology related
finite-lived
Borrowings. At December 31, 2023, the Company had such, obligations
financial statements for services and equipment
when services are provided notand,
received
as 2023,
economicthe Company
interest falls wasbelow
deemed 10%. to As
be of
theDecember
PB of 31, assets, and management
investor/customer contracts,
relationships, which relate
technology relatedto
outstanding
Borrowings. At borrowings
Decemberwith varying
31, 2023, maturities
the Companyfor an
had are not
such, included in
obligations the
for consolidated
services statement
and equipment notofreceived
financial approximately
2023, the Company 100 VIEs. See Noteto5,be
was deemed Consolidated
the PB of acquired
assets, and separate
management accounts and funds,
contracts, which thatrelate
are expected
to
aggregate
outstanding principal
borrowingsamount
withof $8.0 billion,
varying of which
maturities for an condition at December
are not included 31, 2023. At December
in the consolidated statement31, 2023,
of financial Sponsored
approximately Investment
100 VIEs. Products,
See Note in5,the notes to the
Consolidated to contribute
acquired to theaccounts
separate future cash andflows
funds, of that
the Company
are expected for a
$1.0 billionprincipal
aggregate is payable within of
amount 12$8.0
months. Future
billion, interest
of which the Company
condition had purchase
at December obligations
31, 2023. of approximately
At December 31, 2023, consolidated
Sponsored Investmentfinancial statements
Products, incontained
the notes to in the
Part II, specified
to contribute period of time.
to the future Finite-lived
cash flowsintangible
of the Company assets for area
payments
$1.0 billionassociated
is payablewith these
within borrowings
12 months. totalinterest
Future $735 million, of
the Company hadwhich $280 obligations
purchase million is payable within
of approximately Item 8 of this financial
consolidated filing for more information.
statements contained in Part II, amortized
specified periodover their remaining
of time. expected
Finite-lived usefulassets
intangible lives, are
$1.4 billion,
payments of which $210
associated million
with these is payabletotal
borrowings within 12 12
$735months.
million, of which $280 million is payable within Item 8 of this filing for more information. which,
amortized at December
over their 31, 2023 ranged
remaining expected from approximately
useful lives,
months. Seeof
$1.4 billion, Note 14,$210
which Borrowings,
million in the notes
is payable to the12
within 12 months. Fair Value Measurements 1 to 10at
which, years with a weighted-average
December 31, 2023 ranged from remaining
approximately
consolidated
months. See Note financial statements in
14, Borrowings, contained
the notesintoPart the II, Fair Value Measurements estimated
1 to 10 years usefulwithlife of approximately 5
a weighted-average years.
remaining
CRITICAL ACCOUNTING POLICIES AND The Company’s assessment of the significance of a
Item 8 of this financial
consolidated filing. statements contained in Part II, estimated useful life of approximately 5 years.
ESTIMATES
CRITICAL ACCOUNTING POLICIES AND particular
The Company’sinput assessment
to the fair valueof themeasurement
significanceaccording
of a The Company performs assessments to determine if any
Item 8 of this filing.
Operating Leases. The Company leases its primary office ESTIMATES to the fair value
particular input hierarchy
to the fair (i.e.,
value Level 1, 2 and 3 inputs,
measurement accordingas intangible
The Company assets are impaired
performs assessmentsat leasttoannually,
determine as ifofany
locations
Operatingunder
Leases. agreements
The Company thatleases
expire itsonprimary
varying office
dates The preparation of consolidated financial statements in defined)
to the fairinvalue
its entirety
hierarchyrequires judgment
(i.e., Level and3considers
1, 2 and inputs, as July 31, or assets
intangible more frequently
are impaired if events
at least or annually,
changes in as of
through
locations2043.
underAtagreements
December 31, that2023,
expirethe onCompany had
varying dates conformity
The preparationwith GAAP requires management
of consolidated to make in
financial statements factors
defined)specific to the financial
in its entirety instrument.
requires judgment See
and Note 2,
considers circumstances
July 31, or moreindicate frequently thatifitevents
is more orlikely
changes thaninnot that
operating
through 2043.leaseAtpayment
December obligations
31, 2023,oftheapproximately
Company had estimates
conformityand withassumptions
GAAP requires that affect the reported
management to make Significant Accounting
factors specific Policies, instrument.
to the financial and Note 7, See Fair Note
Value2, the intangible asset
circumstances indicatemight that beitimpaired.
is more likely than not that
$2.2 billion,
operating of which
lease $180obligations
payment million is payable within 12
of approximately amounts
estimatesof assets
and and liabilities
assumptions that and disclosure
affect the reportedof Disclosures, in the consolidated
Significant Accounting Policies, andfinancial statements
Note 7, Fair Value the intangible asset might be impaired.
months. Seeof
$2.2 billion, Note 12,$180
which Leases, in the
million is notes
payableto the
within 12 contingent
amounts ofassetsassetsandandliabilities
liabilitiesat thedisclosure
and date of the of contained
Disclosures, ininPart
theII,consolidated
Item 8 of thisfinancial
filing forstatements
more In evaluating whether it is more likely than not that the fair
consolidated
months. See Note financial statements
12, Leases, in thecontained
notes to thein Part II, consolidated
contingent assets financial
and statements
liabilities at and the reported
the date of the information
contained inon fair
Part II,value
Item 8measurements.
of this filing for more value of indefinite-lived
In evaluating whether it is intangibles
more likely isthan
less thannot thatits the fair
Item 8 of this financial
consolidated filing. statements contained in Part II, amounts
consolidated of revenue
financial and expense during
statements and the the reporting
reported information on fair value measurements. carrying value, BlackRock
value of indefinite-lived performediscertain
intangibles less than quantitative
its
periods.
amountsActual results
of revenue could
and differduring
expense significantly from those
the reporting Changes in Valuation. Changes in value on $7.1 billion of assessments
carrying value,and assessed
BlackRock various significant
performed certain quantitative
Item 8 of this filing.
Investment Commitments. At December 31, 2023, the estimates. These
periods. Actual estimates,
results couldjudgments and assumptions
differ significantly from those investments will impact
Changes in Valuation. the Company’s
Changes in value nonoperating
on $7.1 billion of quantitative
assessmentsfactors including
and assessed AUM,significant
various revenue basis points,
Company
Investmenthad $738 millionAt
Commitments. ofDecember
various capital
31, 2023, the are affected
estimates. by the
These Company’s
estimates, application
judgments andofassumptions
accounting income (expense),
investments $709 the
will impact million are heldnonoperating
Company’s at cost or projected
quantitative AUM growth
factors rates, operating
including AUM, revenue margins,basis tax rates
points,
commitments
Company had $738 to fund sponsored
million investment
of various capital products, policies. Management
are affected considers
by the Company’s the following
application accounting
of accounting amortized cost and$709
income (expense), the remaining
million are$2.0 heldbillion relates
at cost or to and discount
projected AUM rates.
growth In addition, the Company
rates, operating margins, considered
tax rates
including
commitments CIPs.toThese
fund products
sponsored include various
investment illiquid
products, policies
policies.and estimates considers
Management critical to understanding the
the following accounting carried interest,
amortized cost andwhichthewill not impact
remaining $2.0nonoperating
billion relates to other qualitative
and discount rates.factors including:
In addition, the (1) macroeconomic
Company considered
alternative
including CIPs.products,
Theseincluding
productsprivate
includeequity
various funds and
illiquid consolidated financial statements.
policies and estimates These policies
critical to understanding and
the income (expense).
carried interest, At December
which 31, 2023,
will not impact changes in fair
nonoperating conditions such as
other qualitative a deterioration
factors including: in (1)general economic
macroeconomic
real assets products,
alternative funds, andincluding
opportunistic
privatefunds.
equityThis amount
funds and estimates
consolidated arefinancial
considered critical because
statements. they hadand
These policies a value
incomeof (expense).
$4.1 billionAtofDecember
CIPs will impact
31, 2023,BlackRock’s
changes in net
fair conditions,
conditions such limitations on accessing
as a deterioration incapital,
generalfluctuations
economic
excludes
real assets additional
funds, and commitments
opportunistic made
funds.by This
consolidated
amount material
estimatesimpact, or are reasonably
are considered likely tothey
critical because havehada material
a income
value of (loss) attributable
$4.1 billion of CIPstowill
NCI on theBlackRock’s
impact consolidated net in foreign exchange
conditions, limitations rates, or other developments
on accessing capital, fluctuations in equity
funds
excludesof funds
additionalto underlying third-party
commitments made funds as third-
by consolidated impact
materialon the Company’s
impact, consolidated
or are reasonably likelyfinancial
to have a material statements
income (loss) of attributable
income. BlackRock’s
to NCI onnet theexposure to
consolidated and creditexchange
in foreign markets; (2) industry
rates, or otheranddevelopments
market in equity
party
fundsnoncontrolling interest third-party
of funds to underlying holders have the legal
funds as third- statements
impact on the and because they
Company’s require management
consolidated financial to changes
statements in fair value ofBlackRock’s
of income. CIPs was $2.2 netbillion.
exposure to considerations
and credit markets; such(2) asindustry
a deterioration
and market in the environment
obligation to fund theinterest
party noncontrolling respective commitments
holders have the legalof such make significant
statements judgments,
and because theyassumptions or estimates.
require management to changes in fair value of CIPs was $2.2 billion. in which the Company
considerations such asoperates, an increased
a deterioration competitive
in the environment
funds of funds.
obligation to fund Generally, the timing
the respective of the funding
commitments of
of such For
makea summary
significant ofjudgments,
these and additional
assumptions accounting
or estimates. Goodwill and Intangible Assets environment,
in which the Company a declineoperates,
in market-dependent
an increasedmultiples competitive or
these
funds commitments
of funds. Generally,is unknown and the
the timing commitments
of the funding of are policies see Note
For a summary of2, Significant
these Accounting
and additional Policies, in the
accounting Goodwill and Intangible Assets metrics,
environment, a change in theinmarket
a decline for an entity’smultiples
market-dependent services, or or
Goodwill. Goodwill represents the cost of a business
callable on demand at
these commitments is any time prior
unknown and theto the expiration ofare
commitments notes
policiesto see
the Note
consolidated financial
2, Significant statements
Accounting included
Policies, in thein regulatory,
metrics, a changelegal orinpolitical
the market developments;
for an entity’s andservices, or
acquisition in excess
Goodwill. Goodwill of the fairthe
represents value
costofofthe net assets
a business
the commitment.
callable on demand These unfunded
at any time priorcommitments
to the expirationare notof Part
notesII,to
Item
the 8consolidated
of this filing.financial statements included in (3) Company-specific
regulatory, legal or politicalevents, such as a change
developments; and in
acquired. The
acquisition in Company assesses
excess of the its goodwill
fair value forassets
of the net
recorded on the consolidated
the commitment. These unfundedstatements of financial
commitments are not Part II, Item 8 of this filing. management
(3) Company-specific or key personnel,
events, such overall
as afinancial
change in
impairment
acquired. TheatCompany
least annually, considering
assesses such
its goodwill forfactors as
condition.
recorded on These commitments
the consolidated do not include
statements potential
of financial performance
managementand or keylitigation
personnel, thatoverall
could affect financial significant
the book value
impairment and the
at least marketconsidering
annually, capitalization of the
such factors as
condition. These commitments do not include potential inputs
performanceused toand determine
litigation the
thatfaircould
valueaffectof thesignificant
indefinite-
the book value and the market capitalization of the
inputs used to determine the fair value of the indefinite-
lived intangible asset. If an indefinite-lived intangible is recognized for services provided during the period, which of the deferred carried interest may also be paid to certain assumptions about the future deductibility of deferred
determined
lived intangible to be moreIflikely
asset. than not impaired,
an indefinite-lived then the
intangible is are distinct for
recognized from services
services provided
provided in other
during theperiods.
period, which Such employees and carried
of the deferred other third parties.
interest mayThe alsoultimate
be paidtiming of
to certain income tax assets
assumptions aboutand theassess
future deferred
deductibilityincome tax
of deferred
fair value of to
determined thebeasset,
morewhich
likely is generally
than determined
not impaired, then using
the fees are affected
are distinct by changes
from services in AUM,
provided including
in other periods.market Such the recognition
employees of performance
and other third parties. feeThe
revenue and timing
ultimate relatedof liabilities
income tax based
assetsonand
enacted
assess taxdeferred
rates forincome
the appropriate
tax
an
fairincome
value ofapproach,
the asset,iswhichcompared with itsdetermined
is generally carrying value using appreciation
fees are affected or depreciation,
by changes in foreign
AUM, exchange
including translation
market compensation
the recognitionexpense, if any, isfee
of performance unknown.
revenueSee andNote 16,
related tax jurisdictions
liabilities based onto determine
enacted tax the amount
rates for theofappropriate
such deferred
and any excess
an income of the is
approach, carrying
compared value over
with itsthe fair value
carrying value and net inflows
appreciation or outflows. AUM
or depreciation, represents
foreign exchange thetranslation
broad Revenue,
compensationin theexpense,
notes to if the consolidated
any, is unknown.financial
See Note 16, income tax assets
tax jurisdictions toand liabilities.
determine theAt December
amount 31, deferred
of such 2023,
would
and any beexcess
recognized
of theas an expense
carrying valuein thethe
over period
fair in which
value range
and net ofinflows
financial or assets
outflows. theAUMCompany manages
represents for
the broad statements
Revenue, in forthedetailed
notes tochanges in the deferred
the consolidated financial carried the Company
income had deferred
tax assets income
and liabilities. At tax assets of
December 31, 2023,
the
wouldimpairment
be recognizedoccurs.as an expense in the period in which clients
range of onfinancial
a discretionary
assets the basis pursuant
Company to investment
manages for interest
statementsliability balancechanges
for detailed for 2023in and
the2022.
deferred carried $208 million and
the Company haddeferred
deferredincome
incometax taxliabilities
assets ofof
the impairment occurs. management and trust agreements
clients on a discretionary basis pursuant that are expected to
to investment interest liability balance for 2023 and 2022. $3.5
$208billion
millionon thedeferred
and consolidated
income statement of financial
tax liabilities of
For finite-lived intangible assets, if potential impairment continue
management for atandleast 12 agreements
trust months. In general,that arereported
expectedAUM to The Company earns revenue for providing technology condition.
$3.5 billionChanges in deferred tax
on the consolidated assets and
statement liabilities
of financial
circumstances are considered
For finite-lived intangible assets,to exist, the Company
if potential impairment will reflects
continuethe forvaluation
at least 12 methodology that corresponds
months. In general, reported AUM to services.
The Company Determining the amount
earns revenue of revenue
for providing to recognize
technology may occur Changes
condition. in certainincircumstances,
deferred tax assetsincluding statutory
and liabilities
perform a recoverability
circumstances are consideredtest, using an undiscounted
to exist, the Company will cash the basis
reflects used
the for determining
valuation methodology revenue
that (for example, to
corresponds net requires
services. judgment
Determining andtheestimates.
amount Complex
of revenue arrangements
to recognize income
may occur taxinrate changes,
certain statutory tax
circumstances, law changes,
including statutory
flow analysis.
perform Factors included
a recoverability in evaluating
test, using finite-lived
an undiscounted cash asset values).
the basis used for determining revenue (for example, net with nonstandard
requires judgmentterms and conditions
and estimates. Complexmayarrangements
require changes
income tax in rate
the anticipated timing of
changes, statutory recognition
tax law changes, of
customer
flow analysis.relationships, technology
Factors included related assets
in evaluating and
finite-lived asset values). contract interpretation
with nonstandard termstoand determine
conditions the may
appropriate
require deferred
changes tax assets
in the and liabilities
anticipated timingor ofchanges
recognition in the
of
trade
customernames include technology
relationships, technology services
related revenue
assets trends,
and The Company receives investment advisory performance accounting, including whether
contract interpretation promised
to determine goods and
the appropriate structure
deferred tax or tax status
assets andofliabilities
the Company.
or changes in the
customer
trade names attrition
include rates, obsolescence
technology services rates, and royalty
revenue trends, fees, includingreceives
The Company incentive allocationsadvisory
investment (carriedperformance
interest) from services
accounting,specified
includingin anwhether
arrangement,
promised aregoods
distinct and structure or tax status of the Company.
rates.
customerFor finite-lived
attrition rates,management
obsolescence contracts,
rates, and evaluation
royalty is certain activelyincentive
fees, including managedallocations
investment(carriedfunds and certain
interest) from performance obligations,
services specified and should be
in an arrangement, areaccounted
distinct for The Company assesses whether a valuation allowance
based on changes
rates. For finite-livedin assumptions
managementincluding contracts,AUM, evaluation is separately managed
certain actively managed accounts (“SMAs”).
investment fundsTheseand certain separately.
performance Other judgments
obligations, andinclude
shoulddetermining
be accounted whether
for should be established
The Company assessesagainst
whether itsadeferred
valuation income
allowancetax
revenue
based onbasischangespoints, projected AUM
in assumptions growth rates,
including AUM, performance
separately managed fees areaccounts
dependent upon exceeding
(“SMAs”). These performance
separately. Otherobligations
judgments are satisfied over time orwhether
include determining at a assets
shouldbased on consideration
be established against itsof all available
deferred evidence,
income tax
operating
revenue basis margins,
points,taxprojected
rates andAUM discount
growth rates.
rates, Actual specified
performance relative
feesor areabsolute
dependent investment return
upon exceeding point in time. obligations
performance Fees earnedare forsatisfied
technology overservices
time or areat a both
assetspositive
based and negative, using
on consideration a more
of all likelyevidence,
available than not
results
operating could differ from
margins, these
tax rates andcash flow estimates,
discount rates. Actual which thresholds, whichor
specified relative vary by product
absolute or account,
investment return and include primarily recorded
point in time. as services
Fees earned are performed
for technology over time
services are standard.
both positiveTheand
assessment
negative,considers,
using a more among
likelyother
than not
could
resultsmaterially
could differ impact
fromthe theseimpairment
cash flowconclusion.
estimates, which If the monthly,
thresholds, quarterly,
which vary annual or longer
by product or measurement
account, and include and are generally
primarily recordeddetermined
as services using the valueover
are performed of positions
time matters,
standard.the Thenature, frequency
assessment and severity
considers, among ofother
recent
carrying value ofimpact
could materially the asset theisimpairment
determinedconclusion.
not to be If the periods.
monthly, quarterly, annual or longer measurement on
andthe
areAladdin
generally platform
determinedor on a fixed-rate
using basis.
the value of Revenue
positions losses,
matters,forecast of future
the nature, profitability,
frequency the duration
and severity of recent of
recoverable
carrying value based
of theonasset
the undiscounted
is determinedcash not to flowbe test, the periods. derived from the
on the Aladdin sale of software
platform licenses is
or on a fixed-rate recognized
basis. Revenue statutory carry back
losses, forecast and carry
of future forwardthe
profitability, periods,
durationthe of
difference
recoverablebetween
based on the book
the value of thecash
undiscounted assetflow andtest,
its the Performance fees, including carried interest, are upon the
derived granting
from the sale of access rights.
of software licenses is recognized Company’s
statutory carryexperience
back and with taxforward
carry attributes expiring
periods, the unused,
current
difference estimated
betweenfair thevalue
bookwouldvalue be recognized
of the asset and asits
an generated
Performance on fees,
certain management
including carriedcontracts
interest, are when upon the granting of access rights. and tax planning
Company’s alternatives.
experience with tax attributes expiring unused,
expense in the period
current estimated fair in which
value the impairment
would be recognized occurs.
as an performance
generated on hurdles are achieved. Such
certain management performance
contracts when fees Adjustments to revenue arising from initial estimates and tax planning alternatives.
expense in the period in which the impairment occurs. are recognized
performance when the
hurdles are contractual
achieved. Such performance
performance criteria
fees recorded
Adjustments historically
to revenue have been immaterial
arising from initial since the
estimates
Accounting Developments
In addition, management judgment is required to estimate have been met and
are recognized when when it is determined
the contractual that theycriteria
performance are no majority
recordedof BlackRock’s
historically haveinvestment advisorysince
been immaterial and the
Accounting Developments
For accounting pronouncements not yet adopted by the
the period over
In addition, which finite-lived
management judgment intangible
is required assets will
to estimate longer
have beenprobable
met and of significant reversal. Given
when it is determined thatthe they unique
are no administration revenue investment
majority of BlackRock’s is calculatedadvisory
based on andAUM,
contribute
the period overto the Company’s
which cashintangible
finite-lived flows and assets
the pattern will in nature of each fee
longer probable of arrangement,
significant reversal. contractsGiven with the customers
unique recognized
administrationwhen known,isand
revenue given the
calculated Company
based on AUM, does not Company, see Note
For accounting 2, Significant Accounting
pronouncements Policies,
not yet adopted in
by the
which thesetoassets
contribute will be consumed
the Company’s cash flows and whether
and the patternthe in are evaluated
nature of eachon feean individual basis
arrangement, to determine
contracts the
with customers record performance
recognized when known, fee revenue
and given until:
the(1) performance
Company does not the consolidated
Company, see Note financial statements
2, Significant contained
Accounting in Part
Policies, in II,
indefinite-life
which these assets and finite-life classifications
will be consumed are stillthe
and whether timing of revenue
are evaluated on an recognition.
individual basis Significant judgment
to determine theis thresholds have been
record performance exceeded
fee revenueand (2)(1)
until: management
performance Item 8 of this filing.
the consolidated financial statements contained in Part II,
appropriate.
indefinite-lifeA andchange in theclassifications
finite-life remaining useful arelifestillof any of involved
timing ofin makingrecognition.
revenue such determination.
Significant Performance
judgment isfees determines
thresholds havethe feesbeen are no longer
exceeded andprobable of significant
(2) management Item 8 of this filing.
these assets,Aorchange
appropriate. the reclassification
in the remaining of anuseful
indefinite-lived
life of any of typically
involved arise from such
in making investment management
determination. services fees
Performance that reversal.
determines SeetheNotefees2, are
Significant
no longer Accounting
probable of Policies, in the
significant
intangible
these assets, asset to areclassification
or the finite-lived intangible asset, could
of an indefinite-lived began
typicallyinarise
prior from
reporting periods.
investment Consequently,
management a portion
services that consolidated financial
reversal. See Note statements
2, Significant containedPolicies,
Accounting in Part II,
in the Item 7A. Quantitative and
have a significant
intangible asset toimpact on theintangible
a finite-lived Company’sasset, amortization
could of the fees
began the reporting
in prior Companyperiods. recognizes may be partially
Consequently, a portion Item 8 of this financial
consolidated filing for more information
statements on revenue
contained in Part II, Item 7A. Quantitative
Qualitative and
Disclosures about
expense,
$147
expense,
which was
have a significant
million
whichforwas
2023,
$151 on
impact
$1512022
million, $151 million
the Company’s
and 2021,
million,
and
amortization
$151 respectively.
million and
related
meet
relatedthe
to the
of the fees theservices
Company
torecognition
the servicescriteria
performed
recognizes
performed in the
in prior
may be
incurrent
periods
partially
period.that
prior periods
that
At each
recognition,
Item 8 of thisincluding
filing for other revenue streams.
more information
recognition, including other revenue streams.
on revenue Qualitative
Market Risk Disclosures about
$147 million for 2023, 2022 and 2021, respectively. reporting date, the Company
meet the recognition criteria in considers
the currentvariousperiod. factors
At eachin Income Taxes Market Risk
In 2023, 2022 and 2021, the Company performed estimating
reporting date, performance
the Company fees considers
to be recognized,
various including
factors in AUM Market Price Risk. BlackRock’s investment advisory
Income Taxesrecords income taxes based upon its
The Company and
AUMadministration fees are
Market Price Risk. primarily comprised
BlackRock’s investmentof fees
advisory
impairment
In 2023, 2022 tests,
andincluding
2021, theevaluating various qualitative
Company performed carried
estimatinginterest. These factors
performance fees to include but are not
be recognized, limited
including
factors
impairment and performing
tests, including certain quantitative
evaluating assessments.
various qualitative to whether:
carried (1) the
interest. amounts
These factors are dependent
include but are onnot thelimited estimated
The Company income tax liability
records incomeor benefit.
taxes based The Company’s
upon its based on a percentage
and administration feesofare theprimarily
value of comprised
AUM and, in ofsome
fees
The Company
factors determined
and performing that no
certain impairment
quantitative charges
assessments. financial
to whether: markets
(1) theand, thus, are dependent
amounts highly susceptible
on the to actual tax liability
estimated income or taxbenefit
liabilitymay differ from
or benefit. Thethe estimated
Company’s cases,
based onperformance
a percentage feesofexpressed
the value of as AUM
a percentage of the
and, in some
were required and
The Company that thethat
determined classification
no impairment of indefinite-lived
charges factors
financial outside
markets theand,
Company’s
thus, areinfluence; (2) the ultimate
highly susceptible to income taxliability
actual tax liabilityororbenefit
benefit. may differ from the estimated returns realized on AUM.
cases, performance At December
fees expressed as a31, 2023, theof the
percentage
versus finite-lived
were required and intangibles was still appropriate
that the classification and no
of indefinite-lived payments
factors outsidehave thea large numberinfluence;
Company’s and a broad (2)range of
the ultimate income tax liability or benefit. majority of the Company’s
returns realized on AUM. Atinvestment
December advisory31, 2023,and the
changes were required
versus finite-lived to the expected
intangibles lives of the finite-
was still appropriate and no Deferred income tax assets and liabilities are recognized administration fees were based
majority of the Company’s on average
investment or period
advisory and end
possible
payments amounts;
have a large and number
(3) the fundsand aor SMAsrange
broad have of the for futureincome
tax consequences attributable
lived
changesintangibles. The Company
were required continuously
to the expected lives ofmonitors
the finite- Deferred tax assets and liabilitiesto temporary
are recognized AUM of the applicable
administration fees were investment
based onfunds average or separate
or period end
ability
possibleto amounts;
(a) invest or and reinvest
(3) the their
fundssales proceeds
or SMAs have or the differences between the financial statement carrying
various factors, including
lived intangibles. The Company AUM, for potential indicators
continuously monitors of for future tax consequences attributable to temporary accounts.
AUM of theMovements
applicable in equity market
investment fundsprices, interest
or separate
(b) distribute
ability their sales
to (a) invest proceeds,
or reinvest theirand
sales determine
proceedsthe or amounts of between
existing assets and liabilities andcarrying
their
impairment.
various factors, including AUM, for potential indicators of differences the financial statement rates/credit spreads, foreign
accounts. Movements in equity exchange rates orinterest
market prices, all three
timing of suchtheir
(b) distribute distributions.
sales proceeds, and determine the respective
impairment. amounts oftax bases assets
existing using currently enacted
and liabilities andtax rates in
their could cause spreads,
rates/credit the valueforeign
of AUMexchange
to decline,rates whichor would
all three
timing of such distributions. effect for the
respective taxyear
basesin which the differences
using currently enacted aretax
expected
rates into
Revenue Recognition The Company is allocated/distributed carried interest result in lower
could cause investment
the value of AUM advisory and administration
to decline, which would
from certain alternative
The Company investment products
is allocated/distributed carriedupon interest reverse.
effect forThe
theeffect
year inofwhich
a change in tax rates on
the differences aredeferred
expectedtax to fees.
result in lower investment advisory and administration
Revenue Recognition
The Company recognizes revenues when its obligations assets
reverse.and
Theliabilities
effect of is recognized
a change in rates
in tax income onin the period
deferred tax
exceeding
from certain performance thresholds. products
alternative investment The Company uponmay be fees.
related to the services
The Company recognizesare revenues
satisfied and
when it its
is probable
obligations that required
exceeding toperformance
reverse/return all, or part,
thresholds. of such
The Company carried may be that includes
assets the enactment
and liabilities date. in income in the period
is recognized Corporate Investments Portfolio Risks. As a leading
a significant
related to thereversal
servicesofare thesatisfied
revenueand amount would not
it is probable that interest
requiredallocations/distributions
to reverse/return all, or part, depending
of suchupon carried future that includes the enactment date. investment managementPortfolio
Corporate Investments firm, BlackRock
Risks. As devotes
a leading
occur in future
a significant periods.
reversal of The Company
the revenue enters would
amount into not Significant management judgment is required in significant
investmentresources
management across allBlackRock
firm, of its operations
devotes to
performance of these products. Carried
interest allocations/distributions dependinginterest upon subject
futureto estimating
contracts that can
occur in future include
periods. Themultiple
Company services,
enters which
into are Significant the ranges of possible
management judgment outcomes
is required andin identifying, measuring,
significant resources monitoring,
across all of itsmanaging
operations and
to
such clawback
performance ofprovisions
these products. is recorded
Carried in interest
investments subject or to determining theranges
probability of favorable or unfavorable tax
accounted for separately
contracts that can includeifmultiple
they are services,
determined whichto be
are estimating the of possible outcomes and analyzing
identifying,market and operating
measuring, monitoring, risks, includingand
managing the
cash
such and cash equivalents
clawback provisions istorecordedthe extent that it is
in investments or outcomes and potential interest and penalties related totax
distinct.
accounted Management
for separately judgment is required
if they are determined in assessing
to be determining the probability of favorable or unfavorable management
analyzing market andand
oversight
operating of itsrisks,
own including
investment the
distributed,
cash and cash on equivalents
the Company’s to theconsolidated
extent thatstatements
it is of such unfavorable outcomes. Actual
the probability
distinct. of significant
Management judgment revenue reversal
is required inand in
assessing outcomes and potential interest andfuture tax related to
penalties portfolio.
management The Board of Directors
and oversight of itsofown
theinvestment
Company has
financial
distributed, condition.
on the Company’s consolidated statements of consequences relating to uncertain tax positions may be
identification
the probabilityofofdistinct services.
significant revenue reversal and in such unfavorable outcomes. Actual future tax adopted
portfolio.guidelines
The Boardfor the reviewofofthe
of Directors investments
Company has (or
financial condition. materially
consequences different thantothe
relating Company’s
uncertain current estimates.
tax positions may be
identification of distinct services. The Company records a liability for deferred carried commitments to invest)
adopted guidelines for theto be made
review of by the Company,
investments (or
The Company derives a substantial portion of its revenue interest
The Companyto the records
extent itareceives
liability cash or capital
for deferred allocations
carried At December
materially 31, 2023,
different thanBlackRock had $749
the Company’s million
current of
estimates. requiring,
commitments among other things,
to invest) to be madethat certain investments be
by the Company,
from investment
The Company advisory
derives and administration
a substantial portion of fees which
its revenue related
interestto tocarried
the extent interest prior to
it receives meeting
cash the revenue
or capital allocations gross unrecognized
At December 31, 2023,taxBlackRock
benefits, ofhad which$749$505 million,
million of if referred
requiring,toamong
the Board
otherof things,
Directors, thatdepending on the
certain investments be
are
fromrecognized
investment asadvisory
the services are performed over
and administration fees time
which recognition criteria.
related to carried At December
interest prior to 31, 2023the
meeting andrevenue
2022, the recognized, would affect
gross unrecognized the effective
tax benefits, tax rate.
of which $505 million, if circumstances, for notification
referred to the Board of Directors, or approval.
depending on the
because the customer
are recognized is receiving
as the services and consuming
are performed the
over time Company
recognition had $1.8 billion
criteria. and $1.4
At December 31,billion,
2023 respectively,
and 2022, the of recognized, would affect the effective tax rate. circumstances, for notification or approval.
benefits
because asthethey are provided
customer by theand
is receiving Company.
consuming Feestheare Management is required to estimate the timing of the In the normal course of its business, BlackRock is exposed
deferred
Companycarriedhad $1.8 interest
billionrecorded
and $1.4inbillion,
other liabilities
respectively, on theof recognition ofis
deferred tax
primarily
benefits asbased
they on
areagreed-upon
provided by the percentages
Company.of AUM
Fees and
are Management required toassets
estimateandtheliabilities,
timing of make
the to equity
In the market
normal priceofrisk,
course interest rate/credit
its business, BlackRockspread risk
is exposed
consolidated
deferred carried statements of financial
interest recorded condition.
in other A portion
liabilities on the
primarily based on agreed-upon percentages of AUM and recognition of deferred tax assets and liabilities, make to equity market price risk, interest rate/credit spread risk
consolidated statements of financial condition. A portion
and foreign exchange rate risk associated with its At December 31, 2023 and 2022, approximately
corporate
and foreign investments.
exchange rate risk associated with its $6.0 billion and
At December 31,$4.7
2023 billion, respectively,
and 2022, of BlackRock’s
approximately
Item 8. Financial Statements and Item 9A. Controls and Procedures
corporate investments. investments
$6.0 billion andwere held
$4.7 in consolidated
billion, respectively, sponsored
of BlackRock’s
Item 8. Financial
Supplemental DataStatements and Item 9A. Controls and Procedures
Disclosure Controls and Procedures. Under the direction
BlackRock has investments primarily in sponsored
investment products that invest in a variety of asset
investment
investmentsproducts
were held accounted for as variable
in consolidated sponsored interest Supplemental Data of BlackRock’s
Disclosure Chief Executive
Controls Officer Under
and Procedures. and Chief
the Financial
direction
BlackRock has investments primarily in sponsored entities
investmentor voting rights
products entities. Excluding
accounted the impact
for as variable interestof The report of the independent registered public
Officer, BlackRock
of BlackRock’s Chiefevaluated
Executive the effectiveness
Officer and Chief ofFinancial
its
classes,
investment including
productsrealthat
assets, private
invest equityof
in a variety and hedge
asset the Federal
entities Reserve
or voting Bank
rights stock, Excluding
entities. carried interest,
the impact of accounting
The report offirm
theand financial statements
independent listed in the
registered public
disclosure controlsevaluated
Officer, BlackRock and procedures (as such term
the effectiveness is
of its
funds.
classes,Investments
including realgenerally
assets,are made
private for co-investment
equity and hedge investments made toBank
the Federal Reserve hedge exposure
stock, carriedtointerest,
certain deferred accompanying
accounting firmindex are included
and financial in Item 15
statements of this
listed report.
in the
defined
disclosurein Rules 13a-15(e)
controls and 15d-15(e)
and procedures under
(as such termtheis
purposes, to establish
funds. Investments a performance
generally are made track record, to
for co-investment cash compensation
investments made toplans
hedge and certain to
exposure investments that
certain deferred See Index to theindex
accompanying consolidated financial
are included statements
in Item 15 of thisonreport.
Exchange
defined in Act)
Rulesas13a-15(e)
of the endandof the period covered
15d-15(e) under the by this
hedge exposure
purposes, to certain
to establish deferred cash
a performance compensation
track record, to are
cash hedged via the seed
compensation planscapital hedging
and certain program, the
investments that page F-1 of
See Index tothis
the Form 10-K. financial statements on
consolidated
annual
Exchange report
Act)on
asForm
of the10-K.
end ofBased on this
the period evaluation,
covered by this
plans
hedgeor for regulatory
exposure purposes.
to certain deferredThe Company
cash has a seed
compensation Company’s
are hedged economic
via the seed exposure to its investment
capital hedging program,portfolio
the page F-1 of this Form 10-K.
BlackRock’s
annual report Chief Executive
on Form 10-K.Officer andthis
Based on Chief Financial
evaluation,
capital
plans orhedging program
for regulatory in whichThe
purposes. it enters
Companyinto futures to
has a seed at December
Company’s 31, 2023exposure
economic and 2022towere $3.8 billionportfolio
its investment and Officer have Chief
BlackRock’s concluded that BlackRock’s
Executive disclosure
Officer and Chief Financial
hedge
capitalmarket
hedging and interest
program inrate
whichexposure
it enterswith
intorespect
futurestoto
its totalmarket
hedge portfolio
and ofinterest
seed investments
rate exposurein sponsored
with respect to
$3.3 billion, respectively.
at December 31, 2023 and See Itemwere
2022 7, Management’s
$3.8 billion and Item 9. Changes in and controls and concluded
Officer have proceduresthat were effective. disclosure
BlackRock’s
investment products.
its total portfolio Theinvestments
of seed Company had outstanding
in sponsored
Discussion
$3.3 billion,and Analysis of
respectively. Financial
See Item 7, Condition
Management’sand Results Item 9. Changeswith
Disagreements in and
Accountants controls and procedures were effective.
of Operations-Statement
Discussion and Analysis of ofFinancial
FinancialCondition
Conditionand Overview-
Results Internal Control over Financial Reporting. There were no
futures
investmentrelated to its seed
products. The capital
Company hedging program with an
had outstanding Investments for further information
of Operations-Statement of Financialon the Company’s
Condition Overview- Disagreements with Accountants
on Accounting and Financial changes in our internal
Internal Control control over
over Financial financial
Reporting. reporting
There were no
aggregate notional
futures related to itsvalue
seedof approximately
capital $1.8 billion
hedging program and
with an
$1.5 billionnotional
aggregate at December
value31, 2023 and 2022,
of approximately respectively.
$1.8 billion and
investments.
Investments for further information on the Company’s
investments.
on Accounting and Financial
Disclosure
that occurred
changes
ending
in ourduring
December
that occurred
thecontrol
internal
31,the
during 2023
fourth over
quarter
thatquarter
fourth
of thereporting
financial
have materially
fiscal year
affected
of the fiscal year
$1.5 billion at December 31, 2023 and 2022, respectively.
Equity Market Price Risk. Investments subject to market price risk include public and private equity and real assets
Disclosure or are reasonably
ending Decemberlikely to materially
31, 2023 that haveaffect our internal
materially affected
There have been no disagreements on accounting and control over financial
or are reasonably reporting.
likely to materially affect our internal
investments,
Equity Market hedge
Pricefunds
Risk. and funds of funds
Investments subject astowell as mutual
market funds.
price risk The following
include public and table provides
private equityourandnet exposure
real assets to financial
There havedisclosure matters. BlackRock
been no disagreements has not changed
on accounting and control over financial reporting.
equity markethedge
investments, price risk and
funds ourfunds
and hypothetical
of fundsexposure
as well astomutual
a 10%funds.
adverseThechange in market
following prices: our net exposure to
table provides accountants in the two
financial disclosure most BlackRock
matters. recent fiscal
hasyears.
not changed
equity market price risk and our hypothetical exposure to a 10% adverse change in market prices: accountants in the two most recent fiscal years.
As of December 31,
2023 As of December 31, 2022
Net 2023 Effect of Net 2022 Effect of
(in millions) Exposure
Net -10% Change
Effect of Exposure
Net -10% Change
Effect of
(in millions) Exposure -10% Change Exposure -10% Change
Equity Market Price Risk
Equity Market Price Risk
Investments $ 1,684 $ 168 $ 1,417 $ 142
Investments $ 1,684 $ 168 $ 1,417 $ 142
Interest-Rate/Credit Spread Risk. Investments subject to interest-rate and credit spread risk include debt securities and
sponsored investmentSpread
Interest-Rate/Credit products thatInvestments
Risk. invest primarily in debt
subject securities. The
to interest-rate andfollowing tablerisk
credit spread provides ourdebt
include exposure to and
securities
interest
sponsoredrate risk and credit
investment spread
products risk
that and our
invest hypothetical
primarily in debt exposure
securities.toThe
an following
adverse 100 basis
table point our
provides fluctuation
exposureinto
interest
rates or credit
interest spreads:
rate risk and credit spread risk and our hypothetical exposure to an adverse 100 basis point fluctuation in interest
rates or credit spreads:
As of December 31,
2023 Effect of 2022 Effect of
-100 Basis
Effect of -100 Basis
Effect of
(in millions) Exposure Point
-100Change
Basis Exposure Point
-100Change
Basis
(in millions) Exposure Point Change Exposure Point Change
Interest-Rate/Credit Spread Risk
Interest-Rate/Credit
Investments Spread Risk $ 2,088 $ 53 $ 1,900 $ 43
Investments $ 2,088 $ 53 $ 1,900 $ 43
Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a
variety
ForeignofExchange
asset classes.
RateThe carrying
Risk. value ofabove,
As discussed the total
theeconomic
Company investment exposure investment
invests in sponsored denominated in foreign
products currencies
that invest in a
are primarily
variety based
of asset in the
classes. TheBritish pound
carrying and
value ofeuro. The economic
the total following table provides
investment our exposure
exposure to foreign
denominated currencies
in foreign and our
currencies
hypothetical
are primarily exposure to aBritish
based in the 10% adverse change
pound and euro.inThe
thefollowing
applicable foreign
table exchange
provides rates: to foreign currencies and our
our exposure
hypothetical exposure to a 10% adverse change in the applicable foreign exchange rates:
As of December 31,
2023 Effect of 2022 Effect of
(in millions) Exposure -10% Change
Effect of Exposure -10% Change
Effect of
(in millions) Exposure -10% Change Exposure -10% Change
Foreign Exchange Rate Risk
Foreign Exchange Rate Risk
Investments $ 1,125 $ 112 $ 998 $ 100
Investments $ 1,125 $ 112 $ 998 $ 100
Other Market Risks. The Company executes forward Company entered into futures to hedge economically the
foreign currency
Other Market exchange
Risks. contracts
The Company to mitigate
executes the risk of
forward exposure
Companyto marketinto
entered movements
futures toon certain
hedge deferred cash
economically the
certain
foreign foreign
currencyexchange
exchange risk movements.
contracts At
to mitigate the risk of compensation plans.
exposure to market At December
movements on 31, 2023,
certain the Company
deferred cash
December 31, 2023
certain foreign and 2022,
exchange the Company
risk movements. At had had outstanding
compensation exchange
plans. traded futures
At December with
31, 2023, aggregate
the Company
outstanding
December 31, forward foreign
2023 and 2022,currency exchange
the Company hadcontracts notional values related
had outstanding exchangeto itstraded
deferred cashwith
futures compensation
aggregate
with an aggregate
outstanding notional
forward foreignvalue of approximately
currency exchange contracts hedging program
notional values of approximately
related to its deferred$204
cashmillion, with
compensation
$3.1 billion
with an and $2.2
aggregate billion value
notional with expiration dates in
of approximately expiration dates during
hedging program the first quarter
of approximately $204ofmillion,
2024. with
January 2024
$3.1 billion andand 2023,
$2.2 respectively.
billion In addition,
with expiration dates inthe expiration dates during the first quarter of 2024.
January 2024 and 2023, respectively. In addition, the
Management’s Report on Internal Control Over Financial Reporting REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Management’s Report on Internal Control Over Financial Reporting
Management of BlackRock, Inc. (the “Company”) is responsible for establishing and maintaining effective internal control
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of BlackRock, Inc.:
over financial of
Management reporting. Internal
BlackRock, control
Inc. (the over financial
“Company”) reportingfor
is responsible is defined in Rules
establishing and13a-15(f)
maintainingandeffective
15d-15(f) under control
internal the To the Board of Directors and Stockholders of BlackRock, Inc.:
Securities Exchange
over financial Act Internal
reporting. of 1934,control
as amended, as a process
over financial designed
reporting by, orin
is defined under
Rulesthe supervision
13a-15(f) of, the Company’s
and 15d-15(f) under the Opinion on Internal Control over Financial Reporting
principal
Securitiesexecutive
Exchange and
Actprincipal
of 1934, financial
as amended,officers,
as a or persons
process performing
designed by, orsimilar
underfunctions, and effected
the supervision by the
of, the Company’s Opinion on Internal Control over Financial Reporting
Company’s board ofand
principal executive directors,
principalmanagement and other
financial officers, personnel,
or persons to provide
performing reasonable
similar assurance
functions, regarding
and effected the
by the We have audited the internal control over financial reporting of BlackRock, Inc. and subsidiaries (the “Company”) as of
reliability
Company’s ofboard
financial reportingmanagement
of directors, and the preparation
and other of financial
personnel,statements
to providefor external purposes
reasonable assuranceinregarding
accordance thewith December 31, 2023,
We have audited the based
internaloncontrol
criteriaover
established
financialin Internal of
reporting Control — Integrated
BlackRock, Inc. andFramework
subsidiaries(2013) issued by theas of
(the “Company”)
accounting
reliability of principles generallyand
financial reporting accepted in the United
the preparation States ofstatements
of financial America and forincludes
externalthose policies
purposes and procedures
in accordance with that: Committee
December 31, of Sponsoring
2023, basedOrganizations of the Treadway
on criteria established Commission
in Internal Control — (COSO). In our
Integrated opinion,(2013)
Framework the Company maintained,
issued by the
accounting principles generally accepted in the United States of America and includes those policies and procedures that: in all material
Committee respects, effective
of Sponsoring internal of
Organizations control over financial
the Treadway reporting
Commission as of December
(COSO). 31, 2023,
In our opinion, based on maintained,
the Company criteria
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and established in respects,
in all material Internal Control — Integrated
effective Framework
internal control (2013) issued
over financial by COSO.
reporting as of December 31, 2023, based on criteria
dispositions
• pertain to theofmaintenance
the assets ofof the Company;
records that, in reasonable detail, accurately and fairly reflect the transactions and established in Internal Control — Integrated Framework (2013) issued by COSO.
dispositions of the assets of the Company; We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial States)
We have(PCAOB), the financial
also audited, statements
in accordance as of
with the and for the
standards yearPublic
of the endedCompany
December 31, 2023, Oversight
Accounting of the Company
Board and our
(United
statements
• provide in accordance
reasonable assurancewiththat
accounting principles
transactions generally
are recorded asaccepted
necessary into
the United
permit States of America,
preparation and that
of financial report
States)dated February
(PCAOB), 23, 2024,
the financial expressedas
statements anofunqualified
and for theopinion on those
year ended financial
December 31, statements.
2023, of the Company and our
receipts
statementsandinexpenditures
accordance withof theaccounting
Company are being made
principles onlyaccepted
generally in accordancein thewith the States
United authorizations
of America, of and that report dated February 23, 2024, expressed an unqualified opinion on those financial statements.
management and directorsofofthe
receipts and expenditures theCompany
Company; and
are being made only in accordance with the authorizations of
Basis for Opinion
management and directors of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
disposition
• provide of the Company’s
reasonable assuranceassets that prevention
regarding could have or a material effect onofthe
timely detection financial statements.
unauthorized acquisition, use or
assessment
The Company’s of the effectiveness
management of internal control
is responsible over financial
for maintaining reporting,
effective internalincluded
controlin thefinancial
over accompanying Management’s
reporting and for its
disposition of the Company’s assets that could have a material effect on the financial statements.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or Report on Internal
assessment of the Control Over Financial
effectiveness Reporting.
of internal Ourfinancial
control over responsibility is to included
reporting, express anin opinion on the Company’s
the accompanying internal
Management’s
improper
Because of management
the inherentoverride of controls,
limitations of internalmaterial
controlmisstatements due to error
over financial reporting, or fraudthe
including may not be prevented
possibility or or
of collusion control over
Report on financial
Internal reporting
Control Over based on our
Financial audit. We
Reporting. Ourare a public accounting
responsibility firm registered
is to express an opinionwith theCompany’s
on the PCAOB andinternal
are
detected
improperon a timely basis.
management Also, projections
override of controls, of any evaluation
material of effectiveness
misstatements due to error of the internal
or fraud maycontrol
not beover financial
prevented or required to be
control over independent
financial withbased
reporting respect
onto the
our Company
audit. We are inaaccordance with thefirm
public accounting U.S.registered
federal securities
with thelaws
PCAOBandand
the are
reporting
detected on to future
a timely periods are subject
basis. Also, to theof
projections risks
anythat controls
evaluation ofmay become inadequate
effectiveness because
of the internal of changes
control in
over financial applicable
required torules and regulations
be independent of the Securities
with respect and Exchange
to the Company Commission
in accordance with theand thefederal
U.S. PCAOB. securities laws and the
conditions,
reporting toor that the
future degree
periods areof compliance
subject to the with
risksthe
thatpolicies
controlsormay
procedures
becomemay deteriorate.
inadequate because of changes in applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, perform the audit
We conducted ourto obtain
audit reasonable with
in accordance assurance about whether
the standards effectiveThose
of the PCAOB. internal control require
standards over financial
that wereporting
plan andwas
2023 based onassessed
Management the criteria
theestablished
effectiveness in of
Internal Control — internal
the Company’s Integrated Framework
control (2013) issued
over financial by the
reporting as of Committee
Decemberof 31, maintained
perform the in all material
audit to obtainrespects.
reasonableOurassurance
audit included
aboutobtaining an understanding
whether effective of internal
internal control over control
financialover financial
reporting was
Sponsoring
2023 based Organizations
on the criteria of the Treadway
established Commission.
in Internal ControlBased on thisFramework
— Integrated assessment, management
(2013) issued byconcluded
the Committeethat, as
of of reporting,
maintained assessing the risk
in all material that a material
respects. Our auditweakness
includedexists, testing
obtaining and evaluating of
an understanding theinternal
designcontrol
and operating
over financial
December
Sponsoring31, 2023, the Company’s
Organizations internalCommission.
of the Treadway control over Based
financial
on reporting is effective.
this assessment, management concluded that, as of effectiveness of internal
reporting, assessing the control
risk thatbased on the
a material assessedexists,
weakness risk, and performing
testing such other
and evaluating the procedures
design and as we considered
operating
December 31, 2023, the Company’s internal control over financial reporting is effective. necessary in the
effectiveness circumstances.
of internal We believe
control based on thethat our audit
assessed provides
risk, a reasonable
and performing suchbasis
otherfor our opinion.
procedures as we considered
The Company’s independent registered public accounting firm has issued an attestation report on the effectiveness of the
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Company’s
The Company’s internal control over
independent financial
registered reporting.
public accounting firm has issued an attestation report on the effectiveness of the
Company’s internal control over financial reporting. Definition and Limitations of Internal Control over Financial Reporting
February 23, 2024 Definition and Limitations of Internal Control over Financial Reporting
February 23, 2024 A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability
A company’s of financial reporting
internal control and
over the preparation
financial reportingofisfinancial
a process statements
designed to forprovide
external purposes assurance
reasonable in accordance with the
regarding
generally
reliability accepted
of financialaccounting
reporting principles. A company’s
and the preparation internal statements
of financial control overforfinancial
externalreporting
purposes includes those policies
in accordance with
and procedures
generally acceptedthataccounting
(1) pertainprinciples.
to the maintenance
A company’s of records
internalthat, in reasonable
control detail,
over financial accurately
reporting and fairly
includes thosereflect the
policies
transactions
and procedures andthat
dispositions ofto
(1) pertain the
theassets of the company;
maintenance of records (2)that,
provide reasonabledetail,
in reasonable assurance that transactions
accurately are the
and fairly reflect
recorded
transactionsas necessary to permit
and dispositions of preparation
the assets ofofthefinancial
company; statements in accordance
(2) provide with generally
reasonable assurance thataccepted accounting
transactions are
principles,
recorded asand that receipts
necessary and preparation
to permit expenditures ofof the company
financial are being
statements made only with
in accordance in accordance with authorizations
generally accepted accountingof
management
principles, andand thatdirectors
receiptsof theexpenditures
and company; and of (3)
theprovide
company reasonable
are beingassurance
made onlyregarding prevention
in accordance or timely
with authorizations of
detection
management of unauthorized
and directorsacquisition, use, orand
of the company; disposition
(3) provide of the company’s
reasonable assets that
assurance could have
regarding a material
prevention effect on the
or timely
financial
detectionstatements.
of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections
Because of any limitations,
of its inherent evaluation of effectiveness
internal control to future
over periods
financial are subject
reporting may tonotthe risk that
prevent controls
or detect may become
misstatements.
inadequate because
Also, projections of changes
of any evaluationin of
conditions, or that
effectiveness the degree
to future of compliance
periods are subject with the
to the policies
risk or procedures
that controls may
may become
deteriorate.
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
/s/ Deloitte & Touche LLP
/s/ Deloitte & Touche LLP
New York, New York
February
New York,23, New2024
York
February 23, 2024
3. Exhibit Index
Item 9B. Other Information Item 12. Security Ownership of 3.
Item 9B. Other Information Item 12.Beneficial
Security Ownership of AsExhibit
used in Index
this exhibit list, “BlackRock” refers to BlackRock, Inc. (formerly named New BlackRock, Inc. and previously,
The Company is furnishing no other information in this Certain Owners and New Boise,
As used Inc.)exhibit
in this (Commission File No. 001-33099)
list, “BlackRock” and “OldInc.
refers to BlackRock, BlackRock”
(formerlyrefers
named to New
BlackRock Holdco
BlackRock, Inc.2,and
Inc.previously,
(formerly
Form 10-K. is furnishing no other information in this
The Company Certain Beneficial
Management and Owners
Related and named BlackRock,
New Boise, Inc.) (Commission
Inc.) (Commission File No.File No. 001-15305),
001-33099) and “Oldwhich is the predecessor
BlackRock” of BlackRock.
refers to BlackRock HoldcoThe following
2, Inc. exhibits
(formerly
Form 10-K. Management and Related
Stockholder Matters
are filedBlackRock,
named as part of this
Inc.)Annual Report File
(Commission on Form 10-K:
No. 001-15305), which is the predecessor of BlackRock. The following exhibits
are filed as part of this Annual Report on Form 10-K:
Item 9C. Disclosure Regarding Stockholder Matters Please note that the agreements included as exhibits to this Form 10-K are included to provide information regarding
The information contained in the sections captioned their
Pleaseterms
noteand
thatare
thenot intended to
agreements provideas
included any other factual
exhibits or disclosure
to this Form 10-K areinformation
included toabout
provideBlackRock
information or the other
regarding
Item 9C.Jurisdictions
Foreign Disclosure Regarding
That Prevent “Ownership of BlackRock
The information containedCommon Stock” and
in the sections “Executive
captioned parties to the
their terms andagreements. The agreements
are not intended contain
to provide any otherrepresentations and warranties
factual or disclosure informationby each
aboutofBlackRock
the partiesortothe theother
Foreign Jurisdictions
Inspections That Prevent Compensation – Compensation
“Ownership of BlackRock CommonDiscussion and
Stock” and Analysis –
“Executive applicable agreement
parties to the that The
agreements. haveagreements
been made contain
solely for the benefit of the
representations andother partiesby
warranties toeach
the applicable agreement
of the parties to the and may
6. Executive Compensation
Compensation Tables
– Compensation – Equity Compensation
Discussion and Analysis – not describe
applicable the actualthat
agreement state of affairs
have as of the
been made date
solely forthey were made
the benefit or other
of the at anyparties
other time.
to the applicable agreement and may
Inspections Plan Information”
6. Executive of the Proxy
Compensation Statement
Tables is Compensation
– Equity incorporated not describe the actual state of affairs as of the date they were made or at any other time.
Not applicable.
herein by reference.
Plan Information” of the Proxy Statement is incorporated Exhibit
Not applicable. No. Description
herein by reference. Exhibit
No. Description
PART III Item 13. Certain Relationships and
3.1 (1) Amended and Restated Certificate of Incorporation of BlackRock.
PART III Item 13.Transactions,

Certain Relationships and
3.1
3.1.1 (1)
(2) Amended and
Certificate Restated
of Change ofCertificate
Registeredof Incorporation
Agent of BlackRock.
and/or Registered Office.
Related and Director 3.1.1

3.2 (2)
(3) Certificate
Amended and of Change ofBylaws
Restated Registered Agent and/or Registered Office.
of BlackRock.
Item 10. Directors, Executive Related Transactions, and Director

Independence
3.2
4.1 (3)
(4) Amended and
Specimen RestatedStock
of Common Bylaws of BlackRock.
Certificate.
4.1
4.2 (4)
(5) Specimen
Indenture, of Common
dated Stock 17,
September Certificate.
2007, between BlackRock and The Bank of New York, as trustee, relating to senior debt
Item 10. and
Officers Directors, Executive
Corporate Governance Independence 4.2 (5) securities.
Indenture, dated September 17, 2007, between BlackRock and The Bank of New York, as trustee, relating to senior debt
The information contained in the sections captioned
Officers and Corporate Governance “Certain Relationships
The information and in
contained Related Transactions”
the sections and
captioned
4.3 (6) securities.
Form of 3.500% Notes due 2024.
The information regarding directors and executive officers 4.3
4.4 (6)
(7) Form of 3.500%
1.250% Notes due 2024.
2025.
set
Theforth under the
information captionsdirectors
regarding “Item 1: and
Election of Directors
executive officers– “Item 1: Election
“Certain of Directors
Relationships – Criteria
and Related for Board and
Transactions”
4.4
4.5 (7)
(8) Form of 1.250%
3.200% Notes due 2025.
2027.
Director
set forth Nominee
under theBiographies”
captions “Itemand1:“Corporate
Election of Directors – Membership – Director
“Item 1: Election Independence”
of Directors of the
– Criteria for Proxy
Board
4.5
4.6 (8)
(9) Form of 3.200%
3.250% Notes due 2029.
2027.
Governance
Director Nominee– Other Executive Officers”
Biographies” of the Proxy
and “Corporate Statement
Membership is incorporated herein by reference.
– Director Independence” of the Proxy
4.6
4.7 (9)
(10) Form of 2.400%
3.250% Notes due 2029.
2030.
Statement
Governance is–incorporated herein
Other Executive by reference.
Officers” of the Proxy Statement is incorporated herein by reference.
4.7
4.8 (10)
(11) Form of 2.400%
1.900% Notes due 2031.
2030.
Statement is incorporated herein by reference.
Information regarding compliance with Section 16(a) of Item 14. Principal Accountant Fees 4.8
4.9 (11)
(12) Form of 1.900% Notes due 2031.
2.10% Notes due 2032.
the Exchange
Information Act required
regarding by Item 10,
compliance withifSection
any, is set forth
16(a) of Item 14. Principal Accountant Fees
and Services
4.9
4.10 (12)
(13) Form of 2.10%
4.750%Notes
Notesdue
due2032.
2033.
under the caption
the Exchange “Delinquent
Act required Section
by Item 10, if16(a)
any, Reports” of
is set forth 4.10
4.11 (13)
(7) Form of 4.750% Notes dueMay
Officers’ Certificate, dated 2033.
6, 2015, for the 1.250% Notes due 2025 issued pursuant to the Indenture.
the Proxy
under the Statement and incorporated
caption “Delinquent Section herein by reference.
16(a) Reports” of and Services 4.11
4.12 (7)
(14) Officers’ Certificate,
Description dated May 6, 2015, for the 1.250% Notes due 2025 issued pursuant to the Indenture.
of Securities.
The information regarding BlackRock’s independent
the Proxy Statement and incorporated herein by reference. 4.12
10.1 (14)
(15) Description of Securities.
BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
The information regarding BlackRock’s Code of Ethics for auditor fees and regarding
The information services inBlackRock’s
the section captioned “Item 4:
independent
10.1
10.2 (15)
(16) BlackRock,
AmendmentInc. Second
to the Amended
BlackRock, Inc.and Restated
Second 1999and
Amended Stock Award and
Restated Incentive
1999 Plan.+
Stock Award and Incentive Plan.+
Chief Executive and
The information SeniorBlackRock’s
regarding Financial Officers
Code ofunder
Ethicsthefor Ratification
auditor fees of
andthe Appointment
services of the Independent
in the section captioned “Item 4:
Registered
RatificationPublic
of the Accounting
Appointment Firm” of Independent
of the the Proxy 10.2
10.3 (16)
(17) Amendment
Amended and Restated BlackRock, Inc. 1999 Annual Incentive Performance Plan.+ and Incentive Plan.+
to the BlackRock, Inc. Second Amended and Restated 1999 Stock Award
caption “Corporate
Chief Executive andGovernance – OurOfficers
Senior Financial Corporate under the
Statement
Registered is incorporated
Public herein
Accounting by of
Firm” reference.
the Proxy 10.3
10.4 (17)
(18) Amended
Amendment and Restated
No. 1 to theBlackRock,
BlackRock,Inc.Inc.1999 Annual
Amended andIncentive
Restated Performance
1999 Annual Plan.+
Incentive Performance Plan.+
Governance Framework”
caption “Corporate of the Proxy
Governance – OurStatement
Corporate is
incorporated herein by reference.
Governance Framework” of the Proxy Statement is Statement is incorporated herein by reference. 10.4
10.5 (18)
(19) Amendment No. 1 to the BlackRock, Inc. Amended and Restated 1999
Form of Restricted Stock Unit Agreement under the BlackRock, Inc. Second Amended Annual IncentiveandPerformance
Restated 1999 Plan.+
Stock Award
10.5 (19) and Incentive
Form Plan.+
of Restricted Stock Unit Agreement under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award
incorporated herein by reference.
The information regarding BlackRock’s Audit Committee
PART IV 10.6 (19) and Incentive
Form Plan.+
of Performance-Based Restricted Stock Unit Agreement (BPIP) under the BlackRock, Inc. Second Amended and
under the caption
The information
Committees”
under the caption
“Corporate
regarding
of the“Corporate
Governance
BlackRock’s
Proxy Statement
– Board
Audit Committee
is incorporated
Governance – Board
PART IV 10.6
10.7
(19)
(20)
Restated
Form
Restated
Form
1999 Stock Award and
of Performance-Based
1999 Stock Award and
of Performance-Based
Incentive
Restricted
Incentive
Stock
Plan.+
Stock
OptionPlan.+
Unit Agreement (BPIP) under the BlackRock, Inc. Second Amended and
Agreement under the BlackRock, Inc. Second Amended and Restated 1999
Stock of
Award and Incentive Plan.+
Committees” of the Proxy Statement is incorporated
Item 15. Exhibits and Financial 10.7
10.8
(20)
(21)
Form
Stock of
Form
Performance-Based
Award
Stock and Incentive
Option
Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999
Plan.+ expected to be used in connection with future grants of Stock Options under the
Agreement
Item 15. Exhibits
Statement and Financial
Schedules 10.8 (21) BlackRock,
Form Inc.Option
of Stock Second Amended expected
Agreement and Restatedto be1999
usedStock Award and
in connection Incentive
with Plan.+ of Stock Options under the
future grants
Statement Schedules 10.9 (21) BlackRock,
Form Inc. Second
of Restricted StockAmended
Agreement andexpected
Restatedto1999 Stock
be used in Award and Incentive
connection with futurePlan.+
grants of Restricted Stock under the
Item 11. Executive Compensation 1. Financial Statements 10.9 (21) BlackRock,
Form Inc. Second
of Restricted StockAmended
Agreement andexpected
Restatedto1999 Stock
be used in Award and Incentive
connection with futurePlan.+
grants of Restricted Stock under the
Item 11. Executive Compensation 1. Financial Statements 10.10 (21) BlackRock,
Form Inc. Second
of Directors’ Amended
Restricted Stockand
UnitRestated 1999
Agreement Stock Award
expected to beand
usedIncentive Plan.+ with future grants of Restricted
in connection
The information contained in the sections captioned Stock of
Units under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award andfuture
Incentive Plan.+
The Company’s consolidated financial statements are 10.10 (21) Form Directors’ Restricted Stock Unit Agreement expected to be used in connection with grants of Restricted
“Management
The informationDevelopment
contained in&theCompensation Committee
sections captioned Stock UnitsInc.
under the BlackRock, Inc. Second Amended andCompensation
Restated 1999Plan,Stock
included beginning
The Company’s on page F-1.
consolidated financial statements are 10.11 (15) BlackRock, Amended and Restated Voluntary Deferred asAward
amended and and
Incentive Plan.+
restated as of
Interlocks
“Managementand Insider Participation,”
Development “Executive
& Compensation Committee November 16,
included beginning on page F-1. 10.11 (15) BlackRock, Inc.2015.+
Amended and Restated Voluntary Deferred Compensation Plan, as amended and restated as of
Compensation – Compensation
Interlocks and Insider Discussion
Participation,” and Analysis”
“Executive 10.12 (22) NovemberRevolving
Five-Year 16, 2015.+Credit Agreement, dated as of March 10, 2011, by and among BlackRock, Inc., certain of its
and “Corporate–Governance
Compensation Compensation– 2023 Directorand Analysis”
Discussion 2. Financial Statement Schedules subsidiaries, Wells Fargo
10.12 (22) Five-Year Revolving CreditBank, National
Agreement, Association,
dated as administrative
as of March 10, 2011, by andagent, swingline
among lender,
BlackRock, issuing
Inc., lender
certain of itsand L/C
Compensation” of the Proxy –Statement
and “Corporate Governance is incorporated
2023 Director 2. Financial Statement Schedules agent, Sumitomo
subsidiaries, WellsMitsui
FargoBanking Corporation,
Bank, National as Japanese
Association, Yen lender, agent,
as administrative a groupswingline
of lenders, Wellsissuing
lender, Fargo Securities,
lender andLLC,
L/C
Financial statement schedules have been omitted
Compensation” of the Proxy Statement is incorporated Citigroup Global Markets
agent, Sumitomo Inc., Merrill
Mitsui Banking Lynch, Pierce,
Corporation, Fenner &
as Japanese Smith
Yen Incorporated,
lender, BarclaysWells
a group of lenders, Capital, J.P.Securities,
Fargo Morgan LLC,
because
Financialthey are notschedules
statement applicable,have
not required or the
been omitted Securities LLC and Morgan Stanley
herein by reference. Citigroup Global Markets Inc., MerrillSenior
Lynch, Funding, Inc., as&
Pierce, Fenner joint lead
Smith arrangers and
Incorporated, joint bookrunners,
Barclays Capital, J.P. Citibank,
Morgan N.A., as
information
because theyrequired is included not
are not applicable, in the Company’s
required or the syndication
Securities LLCagent
andand BankStanley
Morgan of America,
Senior N.A., Barclays
Funding, Bank
Inc., PLC, lead
as joint JPMorgan Chase
arrangers andBank,
joint N.A. and Morgan
bookrunners, Stanley
Citibank, Senior
N.A., as
consolidated financialisstatements
information required included inor notes
the thereto.
Company’s Funding, Inc.,
syndication as documentation
agent agents.N.A., Barclays Bank PLC, JPMorgan Chase Bank, N.A. and Morgan Stanley Senior
and Bank of America,
consolidated financial statements or notes thereto. 10.13 (23) Funding, Inc.,No.
Amendment as 1,
documentation agents.
dated as of March 30, 2012, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
10.13 (23) Bank, National
Amendment No.Association,
1, dated as as administrative
of March 30, 2012, agent,
by andswingline lender, issuing
among BlackRock, Inc.,lender,
certainL/C agent
of its and a lender,
subsidiaries, Wellsand the
Fargo
banks and otherAssociation,
Bank, National financial institutions referredagent,
as administrative to therein.
swingline lender, issuing lender, L/C agent and a lender, and the
10.14 (24) banks and other
Amendment financial
No. 2, dated asinstitutions
of March 28, referred
2013,tobytherein.
and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
certainL/C agent
Fargo
Amendment financial
2014,tobytherein.
and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
certainL/C agent
Fargo
Amendment financial
of April 2, referred
2015, byto therein.
and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.16 (26) National Association,
Amendment as administrative
No. 4, dated agent,
as of April 2, 2015, byswingline
and among lender, issuingInc.,
BlackRock, lender, L/Cof
certain agent and a lender,
its subsidiaries, and Fargo
Wells the banks
Bank,
and otherAssociation,
National financial institutions referred agent,
swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
Exhibit (10) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on January 27, 2020.
No.
Exhibit Description (10) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on January 27, 2020.
(11) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 6, 2020.
No.
10.17 (27) Amendment No. 5, dated as of April 8, 2016, by and among Description
BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank, (11) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 6, 2020.
National Association, as administrative agent, (12) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 10, 2021.
10.17 (27) Amendment No. 5, dated as of April 8, 2016, byswingline
Wells the banks
Bank,
swingline lender, issuing lender, L/C agent and a lender, and the banks (12) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 10, 2021.
and other financial
10.18 (28) Amendment institutions
No. 6, dated referred
as of April to therein.
6, 2017, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank, (13) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 25, 2023.
National Association, as administrative agent, (14) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.
Wells the banks
Bank,
swingline lender, issuing lender, L/C agent and a lender, and the banks (14) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.
(15) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2015.
and other financial
as of April to therein.
3, 2018, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank, (15) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2015.
National Association, as administrative agent, (16) Incorporated by reference to BlackRock’s Definitive Proxy Statement on Form DEF 14A filed on April 13, 2018.
Wells the banks
Bank,
swingline lender, issuing lender, L/C agent and a lender, and the banks (16) Incorporated by reference to BlackRock’s Definitive Proxy Statement on Form DEF 14A filed on April 13, 2018.
(17) Incorporated by reference to Old BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2002.
and other financial
as of March 29,to2019,
therein.
by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo (17) Incorporated by reference to Old BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2002.
Bank, National (18) Incorporated by reference to Old BlackRock’s Current Report on Form 8-K filed on May 24, 2006.
10.20 (30) Amendment No.Association,
of March 29, 2019,agent,
by and swingline lender, issuing
certainL/C agent
Fargo
swingline lender, issuing lender, L/C agent and a lender, and the (18) Incorporated by reference to Old BlackRock’s Current Report on Form 8-K filed on May 24, 2006.
(19) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015.
banks and other
10.21 (31) Amendment financial
2020,tobytherein.
and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo (19) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015.
Bank, National (20) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.
of March 31, 2020,agent,
by and swingline lender, issuing
certainL/C agent
Fargo
swingline lender, issuing lender, L/C agent and a lender, and the (20) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.
(21) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on October 5, 2006.
banks and other
10.22 (32) Amendment financial
No. 10, datedinstitutions
as of Marchreferred to by
31, 2021, therein.
and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo (21) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on October 5, 2006.
Bank, National (22) Incorporated by reference to BlackRock’s Current Report on Form 8-K/A filed on August 24, 2012.
10, dated as asofadministrative
March 31, 2021,agent,
by anda swingline lender, an issuing
among BlackRock, lender,
Inc., certain L/Csubsidiaries,
of its agent and aWells
lender, and
Fargo
the banks
Bank, and other
National financial
Association, asinstitutions
administrativereferred
agent, to atherein.
swingline lender, an issuing lender, L/C agent and a lender, and (22) Incorporated by reference to BlackRock’s Current Report on Form 8-K/A filed on August 24, 2012.
(23) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 4, 2012.
the banks and
10.23 (33) Amendment other
No. financial
11, dated institutions
as of Decemberreferred
13, 2021, to by
therein.
and among BlackRock, Inc., certain of its subsidiaries, Wells (23) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 4, 2012.
Fargo Bank, National Association, as administrative (24) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2013.
10.23 (33) Amendment No. 11, dated as of December 13, 2021,agent,
by andaamong
swingline lender, an
BlackRock, issuing
Inc., lender,
certain of its L/C agent and
subsidiaries, a lender,
Wells
and
Fargothe banks
Bank, and other
National financial institutions
Association, referred
agent, a swingline lender, an issuing lender, L/C agent and a lender, (24) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2013.
(25) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 28, 2014.
and the banks
10.24 (34) Amendment and
No. 12,other
datedfinancial institutions
as of March referred
31, 2022, by andtoamongtherein.BlackRock, Inc., certain of its subsidiaries, Wells Fargo (25) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 28, 2014.
Bank, National (26) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2015.
lender, and
Fargo
the banks
Bank, and other
National financial
agent, to atherein.
swingline lender, an issuing lender, L/C agent and a lender, and (26) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2015.
10.25 (35) the banks and
Amendment other
No. financial
13, dated institutions
as of March 31,referred
2023, bytoand therein.
among BlackRock, Inc., certain of its subsidiaries, Wells Fargo (27) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 14, 2016.
Bank, National (28) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 11, 2017.
lender, and
Fargo
the banks
Bank, and other
National financial
agent, to atherein.
swingline lender, an issuing lender, L/C agent and a lender, and (28) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 11, 2017.
the banks
10.26 (36) Lease and other
Agreement, financial
dated as of institutions
February 17,referred to therein.
2010, among BlackRock Investment Management (UK) Limited and (29) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 6, 2018.
Mourant & Co Trustees (30) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 29, 2019.
10.26 (36) Lease Agreement, datedLimited and Mourant
as of February Property
17, 2010, among Trustees Limited
BlackRock as Trustees
Investment of the Drapers
Management (UK) Gardens Unit Trust for
Limited and
the lease &
Mourant ofCo
Drapers Gardens,
Trustees Limited12andThrogmorton Avenue,Trustees
Mourant Property London,Limited
EC2, United Kingdom.
as Trustees of the Drapers Gardens Unit Trust for (30) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 29, 2019.
the lease
10.27 (37) Lease, by of
andDrapers
betweenGardens, 12 Throgmorton
BlackRock, Avenue,
Inc. and 50 HYMC London,LLC.*
Holdings EC2, United Kingdom.
10.27 (37) Lease, by and between BlackRock, Inc. and 50 HYMC Holdings LLC.*
10.28 (38) Letter Agreement, dated February 12, 2013, between Gary S. Shedlin and BlackRock.+
10.28
10.29 (38)
(39) Letter
AmendedAgreement, datedCommercial
and Restated February 12,Paper
2013,Dealer
between Gary S. Shedlin
Agreement betweenand BlackRock.+
BlackRock and Barclays Capital Inc., dated as of (33) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 13, 2021.
10.29 (39) Decemberand
Amended 23, Restated
2014. Commercial Paper Dealer Agreement between BlackRock and Barclays Capital Inc., dated as of (33) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 13, 2021.
10.30 (39) Decemberand
Amended 23, Restated
2014. Commercial Paper Dealer Agreement between BlackRock and Citigroup Global Markets Inc., (34) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 1, 2022.
dated as ofand
December (35) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2023.
10.30 (39) Amended Restated23, 2014.
Commercial Paper Dealer Agreement between BlackRock and Citigroup Global Markets Inc.,
10.31 (39) dated as ofand
Amended December
Restated23, 2014.
Commercial Paper Dealer Agreement between BlackRock and Merrill Lynch, Pierce, Fenner & (35) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2023.
10.31 (39) Smith Incorporated,
Amended and Restateddated as of January
Commercial 6, 2015.
Paper Dealer Agreement between BlackRock and Merrill Lynch, Pierce, Fenner & (36) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2009.
10.32 (39) Smith Incorporated,
Amended and Restateddated as of January
Commercial 6, 2015.
Paper Dealer Agreement between BlackRock and Credit Suisse Securities (USA) LLC
dated as ofand
January 6, 2015. (37) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
10.32 (39) Amended Restated Commercial Paper Dealer Agreement between BlackRock and Credit Suisse Securities (USA) LLC (38) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on February 19, 2013.
10.33 (40) dated as of Inc.
BlackRock, January 6, 2015.Retention Carry Plan.+
Leadership (38) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on February 19, 2013.
10.33
10.34 (40)
(41) BlackRock, Inc. Leadership
Form of Percentage Retention
Points Award Carry Plan.+
Agreement pursuant to the BlackRock, Inc. Leadership Retention Carry Plan.+ (39) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2014.
10.34
10.35 (41)
(42) Form of Percentage Points Award Agreement pursuantunder
Performance-Based Stock Option Agreement to thethe
BlackRock, Inc.Inc.
BlackRock, Leadership Retentionand
Second Amended Carry Plan.+ 1999
Restated
Stock of
Award and Incentive Plan.+ (40) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2019.
10.35 (42) Form Performance-Based Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999 (41) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
21.1 Stock Award and
Subsidiaries Incentive Plan.+
of Registrant. (41) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
21.1
23.1 Subsidiaries of Registrant.
Deloitte & Touche LLP Consent. (42) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.
+ Denotes compensatory plans or arrangements.
23.1
31.1 Deloitte 302
Section & Touche LLP Consent.
Certification of Chief Executive Officer.
+ Denotes compensatory plans or arrangements.
31.1
31.2 Section 302 Certification of Chief Executive Officer.
Financial Officer. * Portions of this exhibit have been omitted pursuant to a confidential treatment order from the SEC.
31.2
32.1 302 Certification of Chief Executive
Section 906 Financial Officer.
Officer and Chief Financial Officer. * Portions of this exhibit have been omitted pursuant to a confidential treatment order from the SEC.
32.1
97.1 SectionRelating
Policy 906 Certification of of
to Recovery Chief ExecutiveAwarded
Erroneously Officer and Chief Financial Officer.
Compensation.
97.1
101.INS Policy Relating
Inline XBRL to Recovery
Instance of Erroneously
Document Awarded
– the instance Compensation.
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(2) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on July 23, 2021.
(2) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on July 23, 2021.
(3) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on September 15, 2023.
(3) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on September 15, 2023.
(4) Incorporated by reference to BlackRock’s Registration Statement on Form S-8 (Registration No. 333-137708) filed on September 29, 2006.
(4) Incorporated by reference to BlackRock’s Registration Statement on Form S-8 (Registration No. 333-137708) filed on September 29, 2006.
SIGNATURES Signature Title Date
SIGNATURES Signature
/s/ Charles H. Robbins
Title Date
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly Director February 23, 2024
caused this
Pursuant to report to be signedofon
the requirements its behalf
Section by15(d)
13 or the undersigned, thereunto
of the Securities duly Act
Exchange authorized.
of 1934, the registrant has duly /s/ Charles
Charles H.H. Robbins
Robbins Director February 23, 2024
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Charles H. Robbins
BLACKROCK, INC. /s/ Marco Antonio Slim Domit Director February 23, 2024
BLACKROCK, INC. /s/ Marco
Marco Antonio
Antonio Slim
Slim Domit
Domit Director February 23, 2024
Marco Antonio Slim Domit
By: /s/ Laurence D. Fink /s/ Hans E. Vestberg Director February 23, 2024
By: /s/ Laurence D. Fink /s/ Hans
Hans E. E. Vestberg
Vestberg
Laurence D. Fink Director February 23, 2024
Laurence D.Officer
Fink and Director Hans E. Vestberg
Chairman, Chief Executive /s/ Susan L. Wagner Director February 23, 2024
Chairman, Chief Executive Officer and Director /s/ Susan
Susan L. L. Wagner
Wagner Director February 23, 2024
February 23, 2024 Susan L. Wagner
/s/ Mark Wilson Director February 23, 2024
February 23, 2024
/s/ Mark
Mark Wilson
Wilson Director February 23, 2024
Each of the officers and directors of BlackRock, Inc. whose signature appears below, in so signing, also makes, constitutes
Mark Wilson
and
Eachappoints Laurence
of the officers andD. Fink, Martin
directors S. Small, Inc.
of BlackRock, Christopher J. Meade,
whose signature Laura Hildner
appears below, inand
so R. Andrewalso
signing, Dickson
makes,III,constitutes
his or her
true and lawful
and appoints attorneys-in-fact,
Laurence with full
D. Fink, Martin powerChristopher
S. Small, and substitution, for him
J. Meade, or her
Laura in any
Hildner and
and R. all capacities,
Andrew to execute
Dickson III, his or her
and
true cause to beattorneys-in-fact,
and lawful filed with the Securities and
with full Exchange
power Commission
and substitution, forany
himand all amendments
or her in any and allto the Annual
capacities, toReport
executeon
Form 10-K,towith
and cause exhibits
be filed withthereto and other
the Securities and documents
Exchange connected
Commission therewith
any andand to perform any
all amendments toacts necessary
the Annual to be
Report ondone
in order
Form to file
10-K, withsuch documents,
exhibits theretoand
andhereby ratifies andconnected
other documents confirms all that saidand
therewith attorney-in-fact
to perform any oracts
his or her substitute
necessary or
to be done
substitutes may
in order to file do or
such cause to be
documents, anddone by virtue
hereby hereof.
ratifies and confirms all that said attorney-in-fact or his or her substitute or
substitutes may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons
Pursuanton tobehalf of the registrant
the requirements of theand in the capacities
Securities ExchangeandAct on the dates
of 1934, thisindicated.
report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature Title Date
Signature Title Date
/s/ Laurence D. Fink Chairman, Chief Executive Officer and February 23, 2024
/s/ Laurence
Laurence D.D. Fink
Fink Director
Chairman,(Principal Executive
Chief Executive Officer)
Officer and February 23, 2024
Laurence D. Fink Director (Principal Executive Officer)
/s/ Martin S. Small Senior Managing Director and Chief February 23, 2024
/s/ Martin
Martin S.S. Small
Small Financial Officer (Principal
Senior Managing Financial
Director and Chief Officer) February 23, 2024
Martin S. Small Financial Officer (Principal Financial Officer)
/s/ Marc D. Comerchero Managing Director and Chief Accounting February 23, 2024
/s/ Marc
Marc D.D. Comerchero
Comerchero Officer
Managing(Principal Accounting
Director and Chief Officer)
Accounting February 23, 2024
Marc D. Comerchero Officer (Principal Accounting Officer)
/s/ Bader M. Alsaad Director February 23, 2024
/s/ Bader
Bader M.M. Alsaad
Alsaad Director February 23, 2024
Bader M. Alsaad
/s/ Pamela Daley Director February 23, 2024
/s/ Pamela
Pamela Daley
Daley Director February 23, 2024
Pamela Daley
/s/ William E. Ford Director February 23, 2024
/s/ William
William E.E. Ford
Ford Director February 23, 2024
William E. Ford
/s/ Fabrizio Freda Director February 23, 2024
/s/ Fabrizio
Fabrizio Freda
Freda Director February 23, 2024
Fabrizio Freda
/s/ Murry S. Gerber Director February 23, 2024
/s/ Murry
Murry S.S. Gerber
Gerber Director February 23, 2024
Murry S. Gerber
/s/ Margaret L. Johnson Director February 23, 2024
/s/ Margaret
Margaret L.L. Johnson
Johnson Director February 23, 2024
Margaret L. Johnson
/s/ Robert S. Kapito Director February 23, 2024
/s/ Robert
Robert S.S. Kapito
Kapito Director February 23, 2024
Robert S. Kapito
/s/ Cheryl D. Mills Director February 23, 2024
/s/ Cheryl
Cheryl D.D. Mills
Mills Director February 23, 2024
Cheryl D. Mills
/s/ Amin H. Nasser Director February 23, 2024
/s/ Amin
Amin H.H. Nasser
Nasser Director February 23, 2024
Amin H. Nasser
/s/ Gordon M. Nixon Director February 23, 2024
/s/ Gordon
Gordon M.M. Nixon
Nixon Director February 23, 2024
Gordon M. Nixon
/s/ Kristin Peck Director February 23, 2024
/s/ Kristin
Kristin Peck
Peck Director February 23, 2024
Kristin Peck
F-1 BlackRock | 2023 Form 10-K BlackRock | 2023 Form 10-K F-2
BlackRock | 2023 Form 10-K F-1 F-2 BlackRock | 2023 Form 10-K
INDEX TO FINANCIAL STATEMENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
INDEX TO FINANCIAL STATEMENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Report of Independent Registered Public Accounting Firm (PCAOB ID 34) F-2 To the Board of Directors and Stockholders of BlackRock, Inc.:
Report of Independent
Consolidated Registered
Statements Public
of Financial Accounting Firm (PCAOB ID 34)
Condition F-2
F-4 To the Board of Directors and Stockholders of BlackRock, Inc.:
Consolidated Statements
Consolidated Statements of
of Income
Financial Condition F-4
F-5 Opinion on the Financial Statements
Consolidated Opinion on the Financial Statements
Consolidated Statements of Income
Statements of Comprehensive Income F-5
F-6 We have audited the accompanying consolidated statements of financial condition of BlackRock, Inc. and subsidiaries
Consolidated Statements
Consolidated Statements of
of Changes
Comprehensive Income
in Equity F-6
F-7 (the “Company”)
We have audited as theofaccompanying
December 31,consolidated
2023 and 2022, the related
statements consolidated
of financial statements
condition of income,
of BlackRock, Inc.comprehensive
and subsidiaries
Consolidated Statements of Changes in Equity F-7 income, changesas
(the “Company”) in of
equity, and cash
December flows,and
31, 2023 for each
2022,ofthe
therelated
three years in the period
consolidated ended December
statements of income,31, 2023, and the
comprehensive
Consolidated Statements of Cash Flows F-8 related
income,notes
changes(collectively
in equity,referred
and cash to flows,
as thefor“financial
each ofstatements”).
the three yearsIn in
our opinion,
the period the financial
ended statements
December present
31, 2023, fairly,
and the
Consolidated
Notes Statements of
to the Consolidated Cash Flows
Financial Statements F-8
F-9 in all material
related respects, thereferred
notes (collectively financialto position of the Company
as the “financial as of December
statements”). 31, 2023
In our opinion, and 2022,
the financial and the results
statements presentoffairly,
its
Notes to the Consolidated Financial Statements F-9 operations andrespects,
in all material its cash the
flows for eachposition
financial of the three
of theyears in theas
Company period ended December
of December 31, 202331,and2023,
2022,inand
conformity with
the results of its
accounting
operations andprinciples
its cashgenerally
flows foraccepted
each of thein the United
three yearsStates
in the of America.
period ended December 31, 2023, in conformity with
accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States)
We have(PCAOB), the Company’s
also audited, in accordanceinternal
with control over financial
the standards reporting
of the Public as of December
Company Accounting 31,Oversight
2023, based on (United
Board criteria
established in Internal
States) (PCAOB), Control — Integrated
the Company’s Framework
internal control (2013) issued
over financial by the
reporting Committee
as of Decemberof31, Sponsoring
2023, basedOrganizations
on criteria of
the Treadway
established inCommission
Internal Controland—our report dated
Integrated February
Framework 23, 2024,
(2013) issuedexpressed an unqualified
by the Committee opinion on
of Sponsoring the Company’s
Organizations of
internal control
the Treadway over financial
Commission andreporting.
our report dated February 23, 2024, expressed an unqualified opinion on the Company’s
internal control over financial reporting.
Basis for Opinion
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s
These financial statementsfinancial statements based
are the responsibility of theon our audits.
Company’s We are a public
management. Ouraccounting firmisregistered
responsibility to expresswith
an the
PCAOB
opinion and areCompany’s
on the required tofinancial
be independent withbased
statements respectontoour
theaudits.
Company in accordance
We are with the U.S.
a public accounting firmfederal securities
registered with the
laws
PCAOB andand
theare
applicable
requiredrules
to beand regulations
independent of the
with Securities
respect to the and Exchange
Company Commission
in accordance and
with thethe PCAOB.
U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit
We conducted ourto obtain
audits in reasonable
accordanceassurance about whether
with the standards of thethe financial
PCAOB. Thosestatements
standardsare free of
require material
that we plan and
misstatement,
perform the auditwhether due reasonable
to obtain to error or fraud. Our audits
assurance aboutincluded
whether performing
the financialprocedures
statementstoare
assess the
free of risks of material
material
misstatement
misstatement,of the financial
whether due to statements, whether
error or fraud. due to
Our audits error orperforming
included fraud, and performing
proceduresprocedures
to assess the that respond
risks to those
of material
risks. Such procedures
misstatement included
of the financial examining,
statements, on a test
whether duebasis, evidence
to error regarding
or fraud, the amounts
and performing and disclosures
procedures in theto those
that respond
financial
risks. Suchstatements.
procedures Our audits examining,
included also included
onevaluating
a test basis,the accounting
evidence principles
regarding used andand
the amounts significant estimates
disclosures in the made
by management,
financial as well
statements. Ourasaudits
evaluating the overall
also included presentation
evaluating of the financial
the accounting statements.
principles Wesignificant
used and believe that our audits
estimates made
provide a reasonable
by management, basis
as well as for our opinion.
evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.
Critical Audit Matter
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial
statements that was
The critical audit communicated
matter communicated or required
below isto be communicated
a matter arising fromtothe
thecurrent-period
audit committee and
audit ofthat (1) relates to
the financial
accounts
statementsorthat
disclosures that are material
was communicated to the financial
or required statements and
to be communicated (2)audit
to the involved our especially
committee and thatchallenging,
(1) relates to
subjective,
accounts orordisclosures
complex judgments. The communication
that are material to the financialofstatements
critical audit matters
and does not
(2) involved ouralter in any challenging,
especially way our opinion on
the financial
subjective, orstatements, taken as aThe
complex judgments. whole, and we are not,
communication by communicating
of critical audit mattersthe critical
does auditinmatter
not alter any waybelow, providing
our opinion ona
separate opinion
the financial on the critical
statements, taken asaudit matter
a whole, or on
and we the
are accounts or disclosures the
not, by communicating to which it audit
critical relates.
matter below, providing a
separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Impairment of indefinite-lived intangible assets related to certain management contracts — Refer to Notes 2 and 11
to the financial
Impairment statements
of indefinite-lived intangible assets related to certain management contracts — Refer to Notes 2 and 11
to the financial statements
Critical Audit Matter Description
Critical Audit Matter Description
The Company’s indefinite-lived intangible assets are comprised of management contracts, trade names/trademarks and
licenses acquired
The Company’s in business acquisitions.
indefinite-lived The Company
intangible assets performs
are comprised its impairment
of management assessment
contracts, ofnames/trademarks
trade its indefinite-lived and
intangible assets at
licenses acquired in least annually,
business as of July
acquisitions. 31st.
The In evaluating
Company performswhether it is more assessment
its impairment likely than not of that the fair value of
its indefinite-lived
indefinite-lived
intangible assets intangibles is less than
at least annually, as ofcarrying value,
July 31st. the Company
In evaluating performs
whether certain
it is more quantitative
likely than not thatassessments andof
the fair value
assesses various
indefinite-lived significantisqualitative
intangibles factors. Ifvalue,
less than carrying an indefinite-lived
the Company intangible asset isquantitative
performs certain determinedassessments
to be more likely
and than
not impaired,
assesses the significant
various fair value ofqualitative
the asset is then compared
factors. with its carrying
If an indefinite-lived valueasset
intangible and any excess of the
is determined carrying
to be value than
more likely over
the
not fair value would
impaired, the fairbevalue
recognized as anisexpense
of the asset in the period
then compared in which
with its thevalue
carrying impairment
and anyoccurs.
excess The
of thedetermination
carrying valueof over
fair
value requires
the fair management
value would to make
be recognized as estimates
an expense and assumptions
in the related
period in which to impairment
the revenue basis points,
occurs. Theprojected assets under
determination of fair
management
value requires(“AUM”)
management growthtorates,
makeoperating
estimatesmargins, tax rates and
and assumptions discount
related rates.basis points, projected assets under
to revenue
management (“AUM”) growth rates, operating margins, tax rates and discount rates.
Given the significant judgments made by management to estimate the fair value of indefinite-lived intangible assets
related
Given theto significant
certain management
judgmentscontracts, performing audit
made by management procedures
to estimate to evaluate
the fair value ofthe reasonableness
indefinite-lived of management’s
intangible assets
estimates and assumptions
related to certain management related to projected
contracts, AUM growth
performing rates, revenue
audit procedures basis points,
to evaluate operating margins,
the reasonableness tax rates,
of management’s
and discount
estimates andrates, requiredrelated
assumptions a high degree of auditor
to projected AUMjudgment andrevenue
growth rates, an increasedbasis extent
points,ofoperating
effort, including
margins,the taxneed to
rates,
involve our fair
and discount valuerequired
rates, specialists.
a high degree of auditor judgment and an increased extent of effort, including the need to
involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit BlackRock, Inc.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the determination of fair value of indefinite-lived intangible assets related to certain BlackRock, Inc.
Consolidated Statements of Financial Condition
management contracts
Our audit procedures included
related thedetermination
to the following, among others:
of fair value of indefinite-lived intangible assets related to certain Consolidated Statements of Financial Condition
management contracts included the following, among others: December 31, December 31,
• We tested the design and operating effectiveness of controls over the Company’s indefinite-lived intangible asset
(in millions, except shares and per share data) 2023 31,
December 2022 31,
December
• impairment
We tested theanalysis,
design including thoseeffectiveness
and operating related to management’s
of controls overassessment of theindefinite-lived
the Company’s factors that impact the fairasset
intangible value
(in millions, except shares and per share data) 2023 2022
of the Company’s
impairment indefinite-lived
analysis, including thoseintangible
relatedassets. This includes
to management’s controls related
assessment of the to management’s
factors that impactrevenue
the fairbasis
value Assets
points, projected AUM
of the Company’s growth rates,
indefinite-lived operating
intangible margins,
assets. Thistax rates, and
includes the selection
controls related toofmanagement’s
the discount rates.
revenue basis Assets
Cash and cash equivalents(1) $ 8,736 $ 7,416
points, projected AUM growth rates, operating margins, tax rates, and the selection of the discount rates. Cash and receivable
Accounts cash equivalents(1) $ 8,736
3,916 $ 7,416
3,264
• We evaluated the reasonableness of management’s AUM, revenue basis points, projected AUM growth rates,
Accounts receivable
Investments(1) 3,916
9,740 3,264
7,466
• operating margins,
We evaluated tax rates and discount
the reasonableness rates by comparing
of management’s AUM, revenuemanagement’s projections
basis points, projected to:AUM growth rates,
Investments
Separate (1)
account assets 9,740
56,098 7,466
54,066
operating margins, tax rates and discount rates by comparing management’s projections to:
• historical amounts. assets
Separate account collateral held under securities lending agreements 56,098
4,558 54,066
5,765
• historical amounts. Separate and
Property account collateral
equipment (netheld under securities
of accumulated lending agreements
depreciation and amortization of $1,439 and $1,390 at 4,558 5,765
• Internal communications to management and the Board of Directors.
December
Property and31, 2023 and(net
equipment 2022, respectively) depreciation and amortization of $1,439 and $1,390 at
of accumulated 1,112 1,031
• Internal communications to management and the Board of Directors.
• Forecasted information included in analyst and industry reports for the Company and certain of its peer December
Intangible 31, 2023
assets (net and 2022, respectively)
of accumulated amortization of $618 and $483 at December 31, 2023 and 2022, 1,112 1,031
• companies.
Forecasted information included in analyst and industry reports for the Company and certain of its peer respectively)
Intangible assets (net of accumulated amortization of $618 and $483 at December 31, 2023 and 2022, 18,258 18,302
companies. respectively)
Goodwill 18,258
15,524 18,302
15,341
• We evaluated management’s ability to accurately project revenue basis points, AUM growth rates, operating
Goodwill
Operating lease right-of-use assets 15,524
1,421 15,341
1,516
• margins and tax
We evaluated rates, by comparing
management’s ability toactual results
accurately to management’s
project revenue basishistorical forecasts.
points, AUM growth rates, operating
Operating
Other lease
assets (1) right-of-use assets 1,421
3,848 1,516
3,461
margins and tax rates, by comparing actual results to management’s historical forecasts.
• With the assistance of our fair value specialists, we evaluated the reasonableness of the Company’s valuation Other
Total assets(1)
assets 3,848
$ 123,211 3,461
$ 117,628
• methodology and assumptions,
With the assistance including
of our fair value the selection
specialists, of the the
we evaluated discount rates by: (1)
reasonableness oftesting the source
the Company’s information
valuation Total assets $ 123,211 $ 117,628
Liabilities
underlying
methodology theand
determination
assumptions, of including
the discounttherate and the
selection mathematical
of the accuracy
discount rates by: (1)oftesting
the evaluation and
the source information
Liabilities
Accrued compensation and benefits $ 2,393 $ 2,272
(2) developing
underlying the adetermination
range of independent estimates
of the discount rateand
andcomparing those toaccuracy
the mathematical the discount
of therate selectedand
evaluation by
Accrued
Accountscompensation and benefits
payable and accrued liabilities $ 2,393
1,240 $ 2,272
1,294
management.
(2) developing a range of independent estimates and comparing those to the discount rate selected by
Accounts payable
Borrowings and accrued liabilities 1,240
7,918 1,294
6,654
management.
• We evaluated the impact of changes in management’s forecasts from July 31, 2023, the annual impairment Borrowings
Separate account liabilities 7,918
56,098 6,654
54,066
• assessment
We evaluateddate, to December
the impact 31, 2023.
of changes in management’s forecasts from July 31, 2023, the annual impairment Separate account liabilities
collateral liabilities under securities lending agreements 56,098
4,558 54,066
5,765
assessment date, to December 31, 2023. Separate accounttaxcollateral liabilities under securities lending agreements 4,558 5,765
Deferred income liabilities 3,506 3,381
/s/ Deloitte & Touche LLP Deferred income tax liabilities
Operating lease liabilities 3,506
1,784 3,381
1,835
/s/ Deloitte & Touche LLP Operating lease(1)liabilities
Other liabilities 1,784
4,474 1,835
3,576
New York, New York Other liabilities
Total liabilities (1) 4,474
81,971 3,576
78,843
February
New York,23,
New2024
York Total liabilities 81,971 78,843
Commitments and contingencies (Note 15)
February 23, 2024
Commitments
Temporary equity and contingencies (Note 15)
We have served as the Company’s auditor since 2002.
Temporary equity
Redeemable noncontrolling interests 1,740 909
We have served as the Company’s auditor since 2002.
Redeemable noncontrolling interests
Permanent equity 1,740 909
Permanent equity
BlackRock, Inc. stockholders’ equity
BlackRock, Inc.
Common stock,stockholders’
$0.01 par equity
value; 2 2
Common
Sharesstock, $0.01 par
authorized: value;
500,000,000 at December 31, 2023 and 2022; Shares issued: 172,075,373 at 2 2
December
Shares 31, 2023
authorized: and 2022; Shares
500,000,000 outstanding:
at December 148,500,074
31, 2023 and 149,756,492
and 2022; Shares at
issued: 172,075,373 at
December
December 31,
31, 2023
2023 and
and 2022,
2022; respectively
Shares outstanding: 148,500,074 and 149,756,492 at
December
Additional 31,capital
paid-in 2023 and 2022, respectively 19,833 19,772
Additionalearnings
Retained paid-in capital 19,833
32,343 19,772
29,876
Retained earnings
Accumulated other comprehensive loss 32,343
(840) 29,876
(1,101)
Accumulated other
Treasury stock, comprehensive
common, loss
at cost (23,575,299 and 22,318,881 shares held at December 31, 2023 and (840) (1,101)
2022, respectively)
Treasury stock, common, at cost (23,575,299 and 22,318,881 shares held at December 31, 2023 and (11,991) (10,805)
Total 2022, respectively)
BlackRock, Inc. stockholders’ equity (11,991)
39,347 (10,805)
37,744
Total BlackRock, noncontrolling
Nonredeemable Inc. stockholders’ equity
interests 39,347
153 37,744
132
Nonredeemable noncontrolling
Total permanent equity interests 153
39,500 132
37,876
Total liabilities,
Total permanent equity equity and permanent equity
temporary 39,500
$ 123,211 37,876
$ 117,628
Total liabilities, temporary equity and permanent equity $ 123,211 $ 117,628
(1) At December 31, 2023, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $5.0 billion, $83 million and $2.2 billion, respectively, related to
consolidated
(1) At variable
December 31, interest
2023, entities
cash and cash(“VIEs”). At December
equivalents, 31, 2022,
investments, cash and
other assets andcash equivalents,
other investments,
liabilities include $234 other assets
million, $5.0and other
billion, liabilities
$83 million include $234
and $2.2 million,
billion, $3.9 billion,
respectively, $68
related tomillion
and $1.9 billion,
consolidated respectively,
variable interest related
entitiesto(“VIEs”).
consolidated VIEs. 31, 2022, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $3.9 billion, $68 million
At December
and $1.9 billion, respectively, related to consolidated VIEs.
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
BlackRock, Inc. BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Income BlackRock, Inc.
Consolidated Statements of Comprehensive Income
Consolidated Statements of Income Consolidated Statements of Comprehensive Income
(in millions, except per share data) 2023 2022 2021 (in millions) 2023 2022 2021
(in millions, except per share data) 2023 2022 2021 (in millions) 2023 2022 2021
Revenue Net income $ 5,676 $ 4,994 $ 6,205
Revenue
Investment advisory, administration fees and securities lending revenue: NetOther
income
comprehensive income (loss): $ 5,676 $ 4,994 $ 6,205
Investment advisory, administration fees and securities lending revenue:
Related parties $ 10,757 $ 10,848 $ 11,474 Other comprehensive
Foreign income (loss):
currency translation adjustments(1) 261 (551) (213)
Related parties
Other third parties $ 10,757
3,642 $ 10,848
3,603 $ 11,474
3,786 Foreign currency
Comprehensive income translation adjustments(1) 261
5,937 (551)
4,443 (213)
5,992
Other
Total third parties
investment advisory, administration fees and securities lending revenue 3,642
14,399 3,603
14,451 3,786
15,260 Comprehensive income
Less: Comprehensive income (loss) attributable to noncontrolling interests 5,937
174 4,443
(184) 5,992
304
Total investment advisory,
Investment advisory administration
performance fees fees and securities lending revenue 14,399
554 14,451
514 15,260
1,143 Less: Comprehensive
Comprehensive incomeincome (loss) attributable
attributable to noncontrolling
to BlackRock, Inc. interests 174
$ 5,763 (184)
$ 4,627 304
$ 5,688
Investment
Technology advisory
services performance
revenue fees 554
1,485 514
1,364 1,143
1,281 Comprehensive income attributable to BlackRock, Inc. $ 5,763 $ 4,627 $ 5,688
Technology services revenue 1,485 1,364 1,281 (1) Amount for 2023 includes a loss from a net investment hedge of $20 million (net of tax benefit of $6 million). Amount for 2022 includes a gain from a net investment hedge of $37 million (net
Distribution fees 1,262 1,381 1,521
of tax expense
(1) Amount of $12
for 2023 million).
includes Amount
a loss from afor
net2021 includes
investment a gain
hedge offrom
$20 amillion
net investment
(net of taxhedge
benefitofof$46
$6 million
million).(net of taxfor
Amount expense
2022 of $14 million).
includes a gain from a net investment hedge of $37 million (net
Distribution
Advisory andfees
other revenue 1,262
159 1,381
163 1,521
169

Black Rock Annual Report 2023

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Black Rock Annual Report 2023

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2023 Annual Report

BlackRock has the best solutions across all our

for years by embedding our ETF and index

our platform In January, we announced two before. This supply-demand

for the future…

1. BlackRock as of December 31, 2023. Represents total AUM since 2003.

…with clients Americas

retirement solutions so that more Made a minority investment in

Precise tracking for index and

1. BlackRock as of December 31, 2023.

We got our start sales were multi-product, as

1. BlackRock as of December 31, 2023.

$1.2B expands access to bitcoin for

of private markets net inflows

Annual chairman’s letter to investors

Artwork: Rick Lowe’s Untitled, 2023. © Rick Lowe Studio

% of 2020 National Working Age Population

6. World Economic Forum, Ageing and Longevity, (2023)

Global Executive Committee

34. Human Interest, The power of 401(k) automatic enrollment, (2024)

infrastructure The future of infrastructure is

47. US Department of Treasury, Table 5: Major Foreign Holders of Treasury Securities

Highlights as well as for source information on other

Table of Contents the globe, who

and technology services to institutional and

PART III Item 13.Transactions,

Related and Director 3.1.1

Item 10. Directors, Executive Related Transactions, and Director

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