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BlackRock Reports Second Quarter 2017 Diluted EPS of $5.22, or $5.24 as adjusted
By Business Wire
  • $104 billion of total net inflows in the second quarter driven by breadth of diversified business model and investments we have made to grow our platform over time
  • Record $94 billion of long-term net inflows, positive across client type, product type and investment style
  • 12% growth in technology and risk management revenue year-over-year reflects strength of globally integrated investment and technology platform
  • 10% increase in diluted EPS year-over-year
  • Consistent capital management with $275 million of quarterly share repurchases

NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. (NYSE: BLK):


FINANCIAL RESULTS

  Q2   Q2     Q1         Six Months Ended June 30,  
(in millions, except per share data)   2017     2016     Change     2017     Change         2017   2016     Change  
AUM $ 5,689,273 $ 4,890,121 16 % $ 5,420,477 5 % $ 5,689,273 $ 4,890,121 16 %
Total net flows $ 103,616 $ 6,504 $ 64,599 $ 168,215 $ 34,331

GAAP basis:

Revenue $ 2,965 $ 2,804 6 % $ 2,824 5 % $ 5,789 $ 5,428 7 %
Operating income $ 1,242 $ 1,173 6 % $ 1,147 8 % $ 2,389 $ 2,136 12 %
Operating margin 41.9 % 41.8 % 10 bps 40.6 % 130 bps 41.3 % 39.4 % 190 bps
Net income(1) $ 857 $ 789 9 % $ 862 (1 )% $ 1,719 $ 1,446 19 %
Diluted EPS $ 5.22 $ 4.73 10 % $ 5.23 - % $ 10.45 $ 8.66 21 %
Weighted average diluted shares 164.1 166.6 (1 )% 164.9 - % 164.5 167.0 (1 )%

As adjusted:


Operating income(2) $ 1,246 $ 1,179 6 % $ 1,151 8 % $ 2,397 $ 2,226 8 %
Operating margin(2) 43.9 % 43.9 % - bps 42.6 % 130 bps 43.3 % 42.8 % 50 bps
Net income(1) (2) $ 860 $ 797 8 % $ 865 (1 )% $ 1,725 $ 1,508 14 %
Diluted EPS(2)   $ 5.24     $ 4.78     10 %   $ 5.25     - %       $ 10.48   $ 9.03     16 %
 

(1)

  Net income represents net income attributable to BlackRock, Inc.

(2)

See notes (1) through (3) to the Condensed Consolidated Statements of Income and Supplemental Information for more information on as adjusted items and the reconciliation to GAAP.

BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2017.

?BlackRocks second quarter results reflect the trust our clients continue to place in our global investment and technology platform, commented Laurence D. Fink, Chairman and CEO of BlackRock.

?While significant cash remains on the sidelines, investors have begun to put more of their assets to work. The strength and breadth of BlackRocks platform generated a record $94 billion of long-term net inflows in the quarter, positive across all client and product types, and investment styles. The organic growth that BlackRock is experiencing is a direct result of the investments weve made over time to build our platform.

?The combination of BlackRocks differentiated technology, scale and broad base of investment strategies, including market-cap weighted index products, a spectrum of active offerings from smart beta and factors to high conviction alpha strategies, as well as illiquid alternatives, positions us as the partner of choice to deliver outcomes for both institutional and retail clients.

?iShares® assets under management crossed $1.5 trillion as momentum continued in the second quarter, with a record $74 billion of net inflows. Growth was balanced among iShares Core funds, precision exposures and financial instruments, demonstrating that ETFs are no longer used only as passive allocations, but increasingly by active investors to generate alpha in their portfolios. We continue to focus investments in distribution, portfolio construction technology and ETF education as iShares growth opportunities migrate more rapidly to accelerating adoption and new uses of ETFs.

?Both institutional and retail clients continue to search for yield. BlackRocks active strategies generated $8 billion of net inflows, led by multi-asset, fixed income and alternative offerings, contributing to strong organic base fee growth this quarter.

?Weve seen strong fundraising momentum in illiquid alternatives, with $9 billion in flows and commitments year-to-date, as the investments weve made in our platform over time are resonating with clients.

?Going forward, technology-enabled scale will be critical for every aspect of an asset managers business: client service, alpha-generation and operational excellence. BlackRocks technology and risk management revenue grew 12% year-over-year, driven by Aladdin®. In addition, our first three Aladdin Risk for Wealth Management clients are now live on the platform, benefitting from greater risk transparency and portfolio construction capabilities. We continued to expand our digital distribution offerings this quarter with the announced acquisition of Cachematrix and minority investment in Scalable Capital. Both transactions illustrate BlackRocks use of technology to provide enhanced value and innovative solutions for clients.

?I have never seen more opportunity than I do today for BlackRock to help investors achieve their financial goals. As we look to provide increased value both for clients and shareholders, we will continue to strategically invest for enhanced growth going forward.

RESULTS BY CLIENT TYPE  
                June 30, 2017   Q2 2017
Q2 2017 June 30, 2017 Q2 2017 AUM Base fees(1)
(in millions), (unaudited)   Net flows     AUM     Base fees(1)         % of Total   % of Total
Retail $ 6,510 $ 586,756 $ 819   10 %   31 %
iShares ETFs 73,755 1,528,236 998 27 % 37 %
Institutional:
Active 4,589 1,075,855 470 19 % 18 %
Index   8,662       2,093,193       251           37 %       9 %
Total institutional   13,251       3,169,048       721           56 %       27 %
Long-term 93,516 5,284,040 2,538 93 % 95 %
Cash management 10,178 402,575 137 7 % 5 %
Advisory   (78 )     2,658       -         -       -  
Total   $ 103,616     $ 5,689,273     $ 2,675           100 %       100 %
 
RESULTS BY PRODUCT TYPE  
June 30, 2017 Q2 2017
Q2 2017 June 30, 2017 Q2 2017 AUM Base fees(1)
(in millions), (unaudited)   Net flows     AUM     Base fees(1)         % of Total   % of Total
Equity $ 38,370 $ 3,014,696 $ 1,366 53 % 51 %
Fixed income 42,915 1,704,624 712 30 % 27 %
Multi-asset 9,524 436,736 282 8 % 11 %
Alternatives   2,707       127,984       178           2 %       6 %
Long-term 93,516 5,284,040 2,538 93 % 95 %
Cash management 10,178 402,575 137 7 % 5 %
Advisory   (78 )     2,658       -         -       -  
Total   $ 103,616     $ 5,689,273     $ 2,675           100 %       100 %
 
RESULTS BY INVESTMENT STYLE  
June 30, 2017 Q2 2017
Q2 2017 June 30, 2017 Q2 2017 AUM Base fees(1)
(in millions), (unaudited)   Net flows     AUM     Base fees(1)         % of Total   % of Total
Active $ 7,535 $ 1,598,591 $ 1,273 28 % 48 %
Index and iShares ETFs   85,981       3,685,449       1,265           65 %       47 %
Long-term 93,516 5,284,040 2,538 93 % 95 %
Cash management 10,178 402,575 137 7 % 5 %
Advisory   (78 )     2,658       -         -       -  
Total   $ 103,616     $ 5,689,273     $ 2,675           100 %       100 %
 

(1)

  Base fees include investment advisory, administration fees and securities lending revenue.

BUSINESS HIGHLIGHTS

Long-term net inflows of $96.2 billion and $6.2 billion from clients in the Americas and Asia-Pacific regions, respectively, were partially offset by net outflows of $8.9 billion from clients in EMEA. At June 30, 2017, BlackRock managed 64% of its long-term AUM for investors in the Americas and 36% for clients in EMEA and Asia-Pacific.

The Companys net flows by client type for the second quarter of 2017 are presented below.

  • Retail long-term net inflows of $6.5 billion reflected net inflows of $3.5 billion internationally and $3.0 billion in the United States. Fixed income net inflows of $7.1 billion were diversified across our top-performing platform, led by net inflows into municipal, total return and unconstrained categories. Equity net outflows of $0.6 billion reflected outflows from European and US equities. Multi-asset net outflows of $0.1 billion were largely due to outflows from world allocation strategies.
  • iShares ETFs long-term net inflows of $73.8 billion reflected strength in precision exposure, financial instrument and iShares Core ETFs. Equity net inflows of $51.8 billion were driven by both US and international equity market exposures. Fixed income net inflows of $21.0 billion reflected inflows into investment grade corporate, emerging markets debt and treasury bond funds. Commodities iShares generated $0.7 billion of net inflows.
  • Institutional active long-term net inflows of $4.6 billion were led by multi-asset net inflows of $9.5 billion reflecting ongoing demand for the LifePath® target-date series. Alternatives net inflows of $1.7 billion were led by flows into infrastructure offerings. Equity net outflows of $4.4 billion were largely due to outflows from scientific active and fundamental US equities.
  • Institutional index long-term net inflows of $8.7 billion reflected fixed income net inflows of $17.1 billion, partially offset by equity net outflows of $8.5 billion.

Cash management AUM increased 4% to $402.6 billion, driven by $10.2 billion of net inflows.

INVESTMENT PERFORMANCE AT JUNE 30, 2017 (1)

    One-year period   Three-year period   Five-year period
Fixed income:            
Actively managed AUM above benchmark or peer median
Taxable 75% 77% 88%
Tax-exempt 53% 54% 68%
Index AUM within or above applicable tolerance     97%     94%     99%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental 62% 78% 66%
Scientific 91% 92% 92%
Index AUM within or above applicable tolerance     95%     98%     96%
 

(1)

 

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

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Monday, July 17, 2017 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 47820770). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Monday, July 17, 2017 and ending at midnight on Monday, July 31, 2017. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 47820770. To access the webcast, please visit the investor relations section of www.blackrock.com.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At June 30, 2017, BlackRocks AUM was $5.7 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of June 30, 2017, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Companys website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

      Three Months  
Three Months Ended Ended
June 30,   March 31,
  2017     2016     Change     2017     Change  
Revenue

Investment advisory, administration fees and securities lending revenue

$ 2,675 $ 2,489 $ 186 $ 2,530 $ 145
Investment advisory performance fees 48 74 (26 ) 70 (22 )
Technology and risk management revenue(a) 164 146 18 158 6
Distribution fees 5 11 (6 ) 7 (2 )
Advisory and other revenue(a)   73     84     (11 )   59     14  
Total revenue   2,965     2,804     161     2,824     141  
 
Expense
Employee compensation and benefits 999 977 22 1,021 (22 )
Distribution and servicing costs 121 109 12 117 4
Amortization of deferred sales commissions 4 9 (5 ) 5 (1 )
Direct fund expense 224 195 29 208 16
General and administration 350 316 34 301 49
Amortization of intangible assets   25     25     -     25     -  
Total expense   1,723     1,631     92     1,677     46  
 
Operating income 1,242 1,173 69 1,147 95
 
Nonoperating income (expense)
Net gain (loss) on investments 36 20 16 51 (15 )
Interest and dividend income 13 6 7 7 6
Interest expense   (48 )   (51 )   3     (65 )   17  
Total nonoperating income (expense)   1     (25 )   26     (7 )   8  
 
Income before income taxes 1,243 1,148 95 1,140 103
Income tax expense   376     353     23     269     107  
Net income   867     795     72     871     (4 )
Less:

Net income (loss) attributable to noncontrolling interests

  10     6     4     9     1  
Net income attributable to BlackRock, Inc. $ 857   $ 789   $ 68   $ 862   $ (5 )
 
Weighted-average common shares outstanding
Basic 162,502,465 164,758,612 (2,256,147 ) 163,016,599 (514,134 )
Diluted 164,149,861 166,639,290 (2,489,429 ) 164,856,183 (706,322 )

Earnings per share attributable to BlackRock, Inc. common stockholders (3)

Basic $ 5.27 $ 4.79 $ 0.48 $ 5.29 $ (0.02 )
Diluted $ 5.22 $ 4.73 $ 0.49 $ 5.23 $ (0.01 )
Cash dividends declared and paid per share $ 2.50 $ 2.29 $ 0.21 $ 2.50 $ -
 

Supplemental information:

 
AUM (end of period) $ 5,689,273 $ 4,890,121 $ 799,152 $ 5,420,477 $ 268,796
Shares outstanding (end of period) 162,207,216 164,463,297 (2,256,081 ) 162,868,647 (661,431 )
GAAP:
Operating margin 41.9 % 41.8 % 10

  bps

40.6 % 130

 bps

Effective tax rate 30.5 % 30.9 % (40

) bps

23.8 % 670

 bps

As adjusted:
Operating income (1) $ 1,246 $ 1,179 $ 67 $ 1,151 $ 95
Operating margin (1) 43.9 % 43.9 % -

  bps

42.6 % 130

 bps

Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests

$ (9 ) $ (31 ) $ 22 $ (16 ) $ 7
Net income attributable to BlackRock, Inc. (2) $ 860 $ 797 $ 63 $ 865 $ (5 )

Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) (3)

$ 5.24 $ 4.78 $ 0.46 $ 5.25 $ (0.01 )
Effective tax rate   30.5 %     30.6 %     (10

) bps

    23.8 %     670

 bps

 

See the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

    (a)  

Beginning with the first quarter of 2017, Aladdin revenue previously reported within ?BlackRock Solutions® and advisory has been presented within ?Technology and risk management revenue on the condensed consolidated statements of income. The remaining previously reported ?BlackRock Solutions and advisory revenue is currently reported as part of ?Advisory and other revenue. Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $189 million for the three months ended June 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $172 million for the three months ended June 30, 2016 has been reclassified to conform to the current presentation. See the Summary of Revenue for further information.

 
 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

   
Six Months Ended
June 30,  
  2017     2016     Change  
Revenue

Investment advisory, administration fees and securities lending revenue

$ 5,205 $ 4,848 $ 357
Investment advisory performance fees 118 108 10
Technology and risk management revenue(a) 322 287 35
Distribution fees 12 22 (10 )
Advisory and other revenue(a)   132     163     (31 )
Total revenue   5,789     5,428     361  
 
Expense
Employee compensation and benefits 2,020 1,924 96
Distribution and servicing costs 238 206 32
Amortization of deferred sales commissions 9 19 (10 )
Direct fund expense 432 383 49
General and administration 651 634 17
Restructuring charge - 76 (76 )
Amortization of intangible assets   50     50     -  
Total expense   3,400     3,292     108  
 
Operating income 2,389 2,136 253
 
Nonoperating income (expense)
Net gain (loss) on investments 87 18 69
Interest and dividend income 20 11 9
Interest expense   (113 )   (102 )   (11 )
Total nonoperating income (expense)   (6 )   (73 )   67  
 
Income before income taxes 2,383 2,063 320
Income tax expense   645     621     24  
Net income   1,738     1,442     296  
Less:
Net income (loss) attributable to noncontrolling interests   19     (4 )   23  
Net income attributable to BlackRock, Inc. $ 1,719   $ 1,446   $ 273  
 
Weighted-average common shares outstanding
Basic 162,758,112 165,073,371 (2,315,259 )
Diluted 164,544,760 167,023,559 (2,478,799 )

Earnings per share attributable to BlackRock, Inc. common stockholders (3)

Basic $ 10.56 $ 8.76 $ 1.80
Diluted $ 10.45 $ 8.66 $ 1.79
Cash dividends declared and paid per share $ 5.00 $ 4.58 $ 0.42
 

Supplemental information:

 
AUM (end of period) $ 5,689,273 $ 4,890,121 $ 799,152
Shares outstanding (end of period) 162,207,216 164,463,297 (2,256,081 )
GAAP:
Operating margin 41.3 % 39.4 % 190

  bps

Effective tax rate 27.3 % 30.1 % (280

) bps

As adjusted:
Operating income (1) $ 2,397 $ 2,226 $ 171
Operating margin (1) 43.3 % 42.8 % 50

  bps

Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests

$ (25 ) $ (69 ) $ 44
Net income attributable to BlackRock, Inc. (2) $ 1,725 $ 1,508 $ 217

Diluted earnings attributable to BlackRock, Inc. common stockholders per share (2) (3)

$ 10.48 $ 9.03 $ 1.45
Effective tax rate   27.3 %     30.1 %     (280 ) bps
 

See the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

(a)  

Beginning with the first quarter of 2017, Aladdin revenue previously reported within ?BlackRock Solutions and advisory has been presented within ?Technology and risk management revenue on the condensed consolidated statements of income. The remaining previously reported ?BlackRock Solutions and advisory revenue is currently reported as part of ?Advisory and other revenue. Under the historical presentation, BlackRock Solutions and advisory revenue would have totaled $371 million for the six months ended June 30, 2017. The prior period amount reported for BlackRock Solutions and advisory of $343 million for the six months ended June 30, 2016 has been reclassified to conform to the current presentation. See the Summary of Revenue for further information.

 
 

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
    Net                
March 31, inflows Market June 30,
2017   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Retail:
Equity $ 208,181 $ (553 ) $ - $ 5,524 $ 2,656 $ 215,808 $ 212,757
Fixed income 230,003 7,091 - 1,940 1,898 240,932 236,361
Multi-asset 110,702 (149 ) - 2,952 398 113,903 112,530
Alternatives   15,447     121     -     340     205     16,113     16,565
Retail subtotal 564,333 6,510 - 10,756 5,157 586,756 578,213
iShares ETFs:
Equity 1,052,409 51,834 - 29,006 6,601 1,139,850 1,098,998
Fixed income 337,904 20,950 - 2,090 4,047 364,991 351,251
Multi-asset 2,890 269 - 77 4 3,240 3,065
Alternatives   20,132     702     -     (772 )   93     20,155     20,296
iShares ETFs subtotal 1,413,335 73,755 - 30,401 10,745 1,528,236 1,473,610
Institutional:
Active:
Equity 124,817 (4,386 ) - 4,282 1,733 126,446 126,151
Fixed income 543,782 (2,217 ) - 8,088 3,999 553,652 549,297
Multi-asset 290,729 9,458 - 5,249 6,485 311,921 300,779
Alternatives   77,905     1,734     3,264     222     711     83,836     79,275
Active subtotal 1,037,233 4,589 3,264 17,841 12,928 1,075,855 1,055,502
Index:
Equity 1,480,108 (8,525 ) - 48,500 12,509 1,532,592 1,513,735
Fixed income 518,880 17,091 - (3,791 ) 12,869 545,049 536,685
Multi-asset 7,244 (54 ) - 457 25 7,672 7,551
Alternatives   7,673     150     -     (56 )   113     7,880     7,800
Index subtotal   2,013,905     8,662     -     45,110     25,516     2,093,193     2,065,771
Institutional subtotal   3,051,138     13,251     3,264     62,951     38,444     3,169,048     3,121,273
Long-term 5,028,806 93,516

3,264

104,108 54,346 5,284,040 5,173,096
Cash management 388,935 10,178 - 406 3,056 402,575 401,996
Advisory (4)   2,736     (78 )   -     (62 )   62     2,658     2,693
Total $ 5,420,477   $ 103,616   $ 3,264   $ 104,452   $ 57,464   $ 5,689,273   $ 5,577,785
                                                     
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
Net
March 31, inflows Market June 30,
2017   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Active:
Equity $ 285,716 $ (7,641 ) $ - $ 8,546 $ 3,575 $ 290,196 $ 288,982
Fixed income 763,020 4,012 - 10,018 5,572 782,622 774,232
Multi-asset 401,431 9,309 - 8,201 6,883 425,824 413,309
Alternatives   93,352     1,855     3,264     562     916     99,949     95,840
Active subtotal 1,543,519 7,535 3,264 27,327 16,946 1,598,591 1,572,363
Index and iShares ETFs:
iShares ETFs:
Equity 1,052,409 51,834 - 29,006 6,601 1,139,850 1,098,998
Fixed income 337,904 20,950 - 2,090 4,047 364,991 351,251
Multi-asset 2,890 269 - 77 4 3,240 3,065
Alternatives   20,132     702     -     (772 )   93     20,155     20,296
iShares ETFs subtotal 1,413,335 73,755 - 30,401 10,745 1,528,236 1,473,610
Non-ETF Index:
Equity 1,527,390 (5,823 ) - 49,760 13,323 1,584,650 1,563,661
Fixed income 529,645 17,953 - (3,781 ) 13,194 557,011 548,111
Multi-asset 7,244 (54 ) - 457 25 7,672 7,551
Alternatives   7,673     150     -     (56 )   113     7,880     7,800
Non-ETF Index subtotal   2,071,952     12,226     -     46,380     26,655     2,157,213     2,127,123
Index & iShares ETFs subtotal   3,485,287     85,981     -     76,781     37,400     3,685,449     3,600,733
Long-term $ 5,028,806   $ 93,516   $ 3,264   $ 104,108   $ 54,346   $ 5,284,040   $ 5,173,096
                                                     
Current Quarter Component Changes by Product Type (Long-term)
Net
March 31, inflows Market June 30,
2017   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Equity $ 2,865,515 $ 38,370 $ - $ 87,312 $ 23,499 $ 3,014,696 $ 2,951,641
Fixed income 1,630,569 42,915 - 8,327 22,813 1,704,624 1,673,594
Multi-asset 411,565 9,524 - 8,735 6,912 436,736 423,925
Alternatives:
Core 90,914 1,852 3,264 589 932 97,551 93,411
Currency and commodities(5)   30,243     855     -     (855 )   190     30,433     30,525
Alternatives subtotal   121,157     2,707     3,264     (266 )   1,122     127,984     123,936
Long-term $ 5,028,806   $ 93,516   $ 3,264   $ 104,108   $ 54,346   $ 5,284,040   $ 5,173,096
 
(1)   Amount represents AUM acquired in the First Reserve Energy Infrastructure business transaction in June 2017.
(2) Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
(3) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(4) Advisory AUM represents long-term portfolio liquidation assignments.
(5)

Amounts include commodity iShares ETFs.

 
 

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Component Changes by Client Type and Product Type
    Net                
December 31, inflows Market June 30,
2016   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Retail:
Equity $ 196,221 $ 1,276 $ - $ 14,782 $ 3,529 $ 215,808 $ 207,755
Fixed income 222,256 11,884 - 4,433 2,359 240,932 231,545
Multi-asset 107,997 (1,893 ) - 7,209 590 113,903 111,068
Alternatives   15,478     (133 )   -     502     266     16,113     16,078
Retail subtotal 541,952 11,134 - 26,926 6,744 586,756 566,446
iShares ETFs:
Equity 951,252 96,386 - 83,756 8,456 1,139,850 1,050,985
Fixed income 314,707 41,254 - 4,050 4,980 364,991 339,617
Multi-asset 3,149 (109 ) - 195 5 3,240 3,003
Alternatives   18,771     705     -     561     118     20,155     19,961
iShares ETFs subtotal 1,287,879 138,236 - 88,562 13,559 1,528,236 1,413,566
Institutional:
Active:
Equity 120,699 (9,062 ) - 12,157 2,652 126,446 124,758
Fixed income 536,727 (3,463 ) - 13,192 7,196 553,652 546,905
Multi-asset 276,933 13,217 - 13,703 8,068 311,921 292,484
Alternatives   75,615     2,888     3,264     860     1,209     83,836     78,086
Active subtotal 1,009,974 3,580 3,264 39,912 19,125 1,075,855 1,042,233
Index:
Equity 1,389,004 (6,172 ) - 128,583 21,177 1,532,592 1,474,598
Fixed income 498,675 26,613 - 1,548 18,213 545,049 522,641
Multi-asset 6,928 (142 ) - 709 177 7,672 7,365
Alternatives   7,074     607     -     38     161     7,880     7,584
Index subtotal   1,901,681     20,906     -     130,878     39,728     2,093,193     2,012,188
Institutional subtotal   2,911,655     24,486     3,264     170,790     58,853     3,169,048     3,054,421
Long-term 4,741,486 173,856

3,264

286,278 79,156 5,284,040 5,034,433
Cash management 403,584 (5,527 ) - 625 3,893 402,575 401,362
Advisory (4)   2,782     (114 )   -     (92 )   82     2,658     2,727
Total $ 5,147,852   $ 168,215   $ 3,264   $ 286,811   $ 83,131   $ 5,689,273   $ 5,438,522
                                                     
Year-to-Date Component Changes by Investment Style and Product Type (Long-term)
Net
December 31, inflows Market June 30,
2016   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Active:
Equity $ 275,033 $ (14,460 ) $ - $ 24,533 $ 5,090 $ 290,196 $ 285,283
Fixed income 749,996 6,073 - 17,423 9,130 782,622 767,774
Multi-asset 384,930 11,324 - 20,912 8,658 425,824 403,552
Alternatives   91,093     2,755     3,264     1,362     1,475     99,949     94,164
Active subtotal 1,501,052 5,692 3,264 64,230 24,353 1,598,591 1,550,773
Index and iShares ETFs:
iShares ETFs:
Equity 951,252 96,386 - 83,756 8,456 1,139,850 1,050,985
Fixed income 314,707 41,254 - 4,050 4,980 364,991 339,617
Multi-asset 3,149 (109 ) - 195 5 3,240 3,003
Alternatives   18,771     705     -     561     118     20,155     19,961
iShares ETFs subtotal 1,287,879 138,236 - 88,562 13,559 1,528,236 1,413,566
Non-ETF Index:
Equity 1,430,891 502 - 130,989 22,268 1,584,650 1,521,828
Fixed income 507,662 28,961 - 1,750 18,638 557,011 533,317
Multi-asset 6,928 (142 ) - 709 177 7,672 7,365
Alternatives   7,074     607     -     38     161     7,880     7,584
Non-ETF Index subtotal   1,952,555     29,928     -     133,486     41,244     2,157,213     2,070,094
Index & iShares ETFs subtotal   3,240,434     168,164     -     222,048     54,803     3,685,449     3,483,660
Long-term $ 4,741,486   $ 173,856   $

3,264

  $ 286,278   $ 79,156   $ 5,284,040   $ 5,034,433
                                                     
Year-to-Date Component Changes by Product Type (Long-term)
Net
December 31, inflows Market June 30,
2016   (outflows)   Acquisition(1)   change   FX impact (2)   2017   Average AUM (3)
Equity $ 2,657,176 $ 82,428 $ - $ 239,278 $ 35,814 $ 3,014,696 $ 2,858,096
Fixed income 1,572,365 76,288 - 23,223 32,748 1,704,624 1,640,708
Multi-asset 395,007 11,073 - 21,816 8,840 436,736 413,920
Alternatives:
Core 88,630 2,854 3,264 1,398 1,405 97,551 91,742
Currency and commodities(5)   28,308     1,213     -     563     349     30,433     29,967
Alternatives subtotal   116,938     4,067     3,264     1,961     1,754     127,984     121,709
Long-term $ 4,741,486   $ 173,856   $ 3,264   $ 286,278   $ 79,156   $ 5,284,040   $ 5,034,433
                                                     

Contacts

BlackRock, Inc.
Investor Relations:
Tom Wojcik, 212-810-8127
Media Relations:
Brian Beades, 212-810-5596


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