Embracing
transformation
2023 Annual Report
2023 AUM
Total AUM1
Reimagining
Reimagining
Reimagining
our platform
our platform
our platform
for the future…
for the future…
for the future…
BlackRock | 2023 Annual Report 1
BlackRock | 2023 Annual Report 1
BlackRock has
led our industry
for years by
transforming
and reimagining
ourselves to stay
ahead of the needs
of our clients and
by being ready
to seize new
opportunities.
In January, we announced two
transformational moves in
anticipation of changes we see
ahead for asset management and
the capital markets.
The strategic re-
architecture of our
organization will simplify
and improve how we work
and deliver for clients.
As part of this re-architecture, we
created a new strategic Global
Product Solutions group (GPS).
GPS will work to deliver our clients
the best solutions across all our
investment strategies, asset
classes and fund structures while
embedding our ETF and index
expertise across the firm. We also
We bring the
introduced a new International
BlackRock
business structure to drive scale,
provide unified leadership and
platform strategy
allow us to be simultaneously more
to life by delivering
global and more local in fast-
growing international markets.
access, expertise,
and service.
And we anticipate our
planned acquisition of
Global Infrastructure
Partners ("GIP") will
propel our success
in the fast-growing
infrastructure market.
The planned combination of
BlackRock’s infrastructure
platform and GIP will provide
clients access to investment and
operating expertise across the
infrastructure landscape. We
believe the integrated platform
will deliver clients scale and
differentiated origination across
equity, debt and solutions.
These two transformational changes
are the largest since our acquisition
of BGI nearly 15 years ago.
The infrastructure
imperative
Infrastructure is expected to
be one of the fastest-growing
segments of private markets in the
years ahead. An unprecedented
public need for investment in
global infrastructure systems,
combined with record government
deficits, means that private
capital will be needed like never
before. This supply-demand
imbalance creates compelling
investment opportunities for our
clients. Infrastructure also offers
clients the current cash flow and
inflation-protected, long-duration
investments they need.
Through the future integration
of BlackRock and GIP, we aim to
connect our clients with bigger and
better opportunities, while also
accelerating growth, diversifying
revenue and generating earnings
for our shareholders.
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
Americas
ex-U.S.
$356B
Helping more and more people
experience financial well-being
Launched iShares LifePath
Target Date ETFs, helping
Americans access retirement
savings solutions through low-
cost ETFs
Made a minority investment in
Upvest, which creates technology
infrastructure to lower the barriers
to entry for millions of investors
across Europe
Partnered with Monzo to provide
better access to digital investing
in the UK
Announced our agreement to form
Jio BlackRock, where we see the
potential to revolutionize India’s
asset management industry
Delivering performance
Durable active investment
performance contributed to
nearly $60B of net inflows across
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
…with clients
always at the
center
More than half of the
money BlackRock
manages is related to
retirement.
So helping people finance
retirement is a major focus of
ours. BlackRock is committed to
building more intuitive, resilient
retirement solutions so that more
people can save for retirement. We
are working with governments and
the private sector across dozens of
countries to provide our retirement
system expertise, insights,
products and services.
We see significant opportunity
to deepen relationships and
consolidate share with our clients
as the only partner that can
provide integrated investment
management and technology
across public and private markets,
ultimately driving better long-
term outcomes.
Everything we do
is for our clients.
We listen to them,
learn from them,
and put their
needs first.
Thousands of clients, who invest
on behalf of millions of individuals
around the globe, entrust us
with over $10 trillion of their own
money. In 2023 alone, BlackRock
generated $289 billion of net new
client assets.
Understanding our clients’ needs
and applying that to our vision
for the future of our industry
has defined our history. That
commitment gave rise to the
invention and growth of Aladdin.
It drove the revolution that made
iShares ETFs ubiquitous with tens
of millions of investors globally.
And it accelerated our ambition
to lead in infrastructure private
markets, including our planned
acquisition of GIP.
1. BlackRock as of December 31, 2023.
2. BlackRock as of December 31, 2023. Past performance is not indicative of future results.
Asia
Pacific
$802B
United
States
$6,372B
Total AUM by Region1
4 BlackRock
BlackRock | 2023 Annual Report 5
Technology
Services Revenue
2021
2020
2019
2018
Technology
powering the
portfolio of
the future
2023
2022
We got our start
by helping long-
term investors
better manage
their risk and
portfolios in a
scaled way using
technology.
That is what drove our early
investment in Aladdin – and
many of the investments we have
made since – to enhance our
understanding of risk factors
to deliver better outcomes for
our clients.
In the same way that many
of our asset management
clients are consolidating their
portfolios with fewer managers,
our clients are looking to use
fewer technology providers. In
2023, BlackRock generated
$1.5 billion of technology services
revenue. Over 50% of our Aladdin
1. BlackRock as of December 31, 2023.
sales were multi-product, as
clients increasingly extend their
partnership with Aladdin.
Through its dynamic ecosystem
of over 130,000 users, the Aladdin
platform is constantly innovating
and improving. Investments in
Aladdin AI copilots, enhancements
in openness supporting ecosystem
partnerships, and advancing
whole portfolio solutions including
private markets and digital assets
are going to further augment the
value of Aladdin.
50%+
of Aladdin sales were across
multiple products
130,000+
Aladdin users1
100+
specialists in AI-related fields,
including optimization, data
science, machine learning and
natural language processing1
Enhancing our operating
model through AI
As a technology leader in asset
management, we’ve used AI
and related tools including
optimization, data science,
machine learning and natural
language processing for years.
We started our AI Labs in 2018 to
build technology-first solutions to
drive productivity, efficiency and
investment performance across
our platform.
We’ve used AI to generate alpha in
systematic strategies for decades,
and we have more recently been
bringing these techniques to
alternatives. We use AI to bring
operational efficiencies across
trade execution, operations and
enterprise data management. We
empower our people to use AI to
provide richer client interactions
and build better portfolios. We’re
now bringing AI to Aladdin to
reduce friction in investing and
create a seamless end-to-end
investment lifecycle for our clients.
6 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 7
Client-first
approach to global
innovation
Innovation is
crucial to how
we deliver
performance and
stay ahead of our
clients’ needs.
That commitment to innovating
and evolving for our clients has
been behind everything we’ve
done as a firm, whether it’s
unlocking new markets through
iShares; pioneering whole portfolio
advisory; launching Aladdin on
the desktops of investors; and so
much more.
Private Markets
Active ETFs
BlackRock has been successfully
scaling our private markets
platform, which has more than
doubled over the last 5 years. Our
global network of relationships,
data and analytics, and flexible,
adaptable capital mean we can
source proprietary deals for
our clients and mobilize assets
to accelerate innovation and
economic growth. At the same
time, our increasing momentum
in private markets is delivering
value for our shareholders through
organic asset and revenue growth.
$1.2B
record private markets revenue
in 2023
$14B
of private markets net inflows
In 2023, BlackRock launched
19 active ETFs, leveraging the
benefits of the ETF structure
alongside the insights of our
portfolio managers to help clients
reach the outcomes they seek.
Some of these strategies seek to
outperform a benchmark, while
others use options strategies to
generate income or provide greater
downside protection, such as our
Buy/Write and Buffer ETFs.
In January 2024, the iShares
Bitcoin ETF began trading –
another landmark moment that
advances ETF innovation and
expands access to bitcoin for
investors.
We will continue to enable more
convenient and cost-effective
investment access across asset
classes through innovation, risk
management and technology.
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.
BlackRock ETF Flows
Nearly 20% of ETF flows
from products launched
since 20201
8 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 9
Unlocking
value for our
shareholders
Total Return (%)1
Almost fifteen
years ago,
after our
transformational
acquisition of
BGI and iShares,
BlackRock stock
was 80% held
by three large
institutions.
Today we’re
proud to have
thousands
of owners of
BlackRock.
Our firm looked different back
then. But it is our willingness to
reimagine our business and seize
opportunities that has accelerated
our growth and generated value
for our shareholders.
Our shareholder value framework
is simple – we focus on generating
organic growth, driving operating
leverage and returning excess
capital to shareholders. Over the
last 5 years, clients have entrusted
BlackRock with over $1.9 trillion
in net new assets, driving organic
asset and base fee growth. The
powerful simplicity of our business
model is that when we deliver
value for our clients, we also
create more durable value for our
shareholders.
Since our IPO in 1999, we have
generated a total return of
over 9,000%, including nearly
140% in just the last five years –
well in excess of peers and
broader markets.
We believe we enter 2024 in a
stronger position than ever,
and all of us at BlackRock are
excited about the opportunities
ahead for our clients, the firm
and our shareholders.
$289B
of total net inflows in 2023
15%+
IRR on share repurchases in
last five years
$4.5B+
returned to shareholders
through a combination
of dividends and share
repurchases after investing for
growth in 2023
9,000%+1
total return on BlackRock’s
stock since IPO
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
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
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.
10 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 11
Annual chairman’s letter to investors
Time to rethink
retirement
When my mom passed away in
2012, my dad started to decline
quickly, and my brother and I had
to go through my parents’ bills
and finances.
Both my mom and dad worked
great jobs for 50 years, but they
were never in the top tax bracket.
My mom taught English at the local
state college (Cal Northridge), and
my dad owned a shoe store.
I don’t know exactly how much they
made every year, but in today’s
dollars, it was probably not more
than $150,000 as a couple. So, my
brother and I were surprised when
we saw the size of our parents’
retirement savings. It was an order
of magnitude bigger than you’d
expect for a couple making their
income. And when we finished
going over their estate, we learned
why: my parents’ investments.
My dad had always been an
enthusiastic investor. He
encouraged me to buy my first
stock (the DuPont chemical
company) as a teenager. My dad
invested because he knew that
whatever money he put in the bond
or stock markets would likely grow
faster than in the bank. And he
was right.
I went back and did the math. If
my parents had $1,000 to invest
in 1960, and they put that money
in the S&P 500, then by the time
they’d reached retirement age in
1990, the $1,000 would be worth
nearly $20,000.1 That’s more
than double what they would have
earned if they’d just put the money
in a bank account. My dad passed
away a few months after my mom,
in his late 80s. But both my parents
could have lived beyond 100 and
comfortably afforded it.
Why am I writing about my parents?
Because going over their finances
showed me something about my
own career in finance. I had been
working at BlackRock for almost 25
years by the time I lost my mom and
dad, but the experience reminded
me – in a new and very personal way
– why my business partners and I
founded BlackRock in the first place.
Obviously, we were ambitious
entrepreneurs, and we wanted to
build a big, successful company.
But we also wanted to help
people retire like my parents
did. That’s why we started an
asset manager – a company that
helps people invest in the capital
markets – because we believed
participating in those markets
was going to be crucial for people
who wanted to retire comfortably
and financially secure.
We also believed the capital
markets would become a bigger
and bigger part of the global
economy. If more people could
invest in the capital markets, it
would create a virtuous economic
cycle, fueling growth for companies
and countries, which would, in turn,
generate wealth for millions
more people.
My parents lived their final years
with dignity and financial freedom.
Most people don’t have that
chance. But they can. The same
kinds of markets that helped my
parents in their time can help
others in our time. Indeed, I think
the growth- and prosperity-
generating power of the capital
markets will remain a dominant
economic trend through the rest
of the 21st Century.
This letter attempts to explain why.
A brief (and admittedly
incomplete) history of
U.S. capital markets
In finance, there are two basic ways
to get or grow money.
One is the bank, which is what most
people historically relied on. They
deposited their savings to earn
interest or took out loans to buy
a home or expand their business.
But over time a second avenue for
financing arose, particularly in the
U.S., with the growth of the capital
markets: publicly traded stocks,
bonds, and other securities.
I saw this firsthand in the late 1970s
and early 1980s when I played a role
in the creation of the securitization
market for mortgages.
Before the 1970s, most people
secured financing for their homes
the same way they did in the
Christmas classic It’s a Wonderful
Life – through the Building & Loan
(B&L). Customers deposited their
savings into the B&L, which was
essentially a bank. Then that bank
would turn around and lend out
those savings in the form of
mortgages.
In the movie – and in real life –
everything works fine until people
start lining up at the bank’s front
door asking for their deposits back.
As Jimmy Stewart explained in
the film, the bank didn’t have their
money. It was tied up in somebody
else’s house.
After the Great Depression, B&Ls
morphed into savings & loans
(S&Ls), which had their own crisis
in the 1980s. Approximately half of
the outstanding home mortgages
in the U.S. were held by S&Ls in
1980, and poor risk management
and loose lending practices led
to a raft of failures costing U.S.
taxpayers more than $100 billion
dollars.2
But the S&L crisis didn’t cause the
American economy lasting damage.
Why? Because at the same time
the S&Ls were collapsing another
method of financing was getting
stronger. The capital markets were
providing an avenue to channel
capital back to challenged real
estate markets.
1. Based on a $1,000 investment from January 1960 to December 1990. Assumes reinvestment of all dividends. Past performance is not
indicative of future results.
2. Federal Reserve History, Savings and
Loan Crisis
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12 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 13
This was mortgage securitization.
Securitization allowed banks not
just to make mortgages but to sell
them. By selling mortgages, banks
could better manage risk on their
balance sheets and have capital
to lend to home buyers, which is
why the S&L crisis didn’t severely
impact American homeownership.
Eventually, the excesses
of mortgage securitization
contributed to the crash in 2008,
and unlike the S&L crisis, the
Great Recession did harm home
ownership in the U.S. The country
still hasn’t fully recovered in that
respect. But the broader underlying
trend – the expansion of the capital
markets – was still very helpful for
the American economy.
In fact, it’s worth considering:
Why did the U.S. rebound from
2008 faster than almost any
other developed nation? 3
A big part of the answer is the
country’s capital markets.
In Europe, where most assets were
kept in banks, economies froze
as banks were forced to shrink
their balance sheets. Of course,
U.S. banks had to tighten capital
standards and pull back from
lending as well. But because the
U.S. had a more robust secondary
pool of money – the capital markets
– the nation was able to recover
much more quickly.
Today public equities and bonds
provide over 70% of financing for
non-financial corporations in the
U.S. – more than any other country
in the world. In China, for example,
the bank-to-capital market ratio is
almost flipped. Chinese companies
rely on bank loans for 65% of
their financing.4
In my opinion, this is the most
important lesson in recent
economic history: Countries
aiming for prosperity don’t just
need strong banking systems
– they also need strong capital
markets.
underperformed the Indian
stock market, proving a subpar
investment for individual investors.
Nor has investing in gold helped
the country’s economy.
That lesson is now spreading
around the world.
Replicating the
success of America’s
capital markets
Last year, I spent a lot of days
on the road, logging visits to 17
different countries. I met with
clients and employees. I also
met with many policymakers and
heads of state, and during those
meetings, the most frequent
conversation I had was about the
capital markets.
More and more countries
recognize the power of American
capital markets and want to build
their own.
Of course, many countries do have
capital markets already. There are
something like 80 stock exchanges
around the world, everywhere from
Kuala Lumpur to Johannesburg.5
But most of these are rather small,
with little investment. They’re not
as robust as the markets in the U.S.,
and that’s what other nations are
increasingly looking for.
In Saudi Arabia, for example,
the government is interested in
building a market for mortgage
securitization while Japan and India
want to give people new places to
put their savings. Today, in Japan,
it’s mostly the bank. In India, it’s
often in gold.
When I visited India in November,
I met policymakers who lamented
their fellow citizens’ fondness
for gold. The commodity has
Compare investing in gold with,
let’s say, investing in a new house.
When you buy a home, that creates
an economic multiplier effect
because you need to furnish
and repair the house. Maybe you
have a family and fill the house
with children. All that generates
economic activity. Even when
someone puts their money in a
bank, there’s a multiplier effect
because the bank can use that
money to fund a mortgage. But
gold? It just sits in a safe. It can
be a good store of value, but gold
doesn’t generate economic growth.
This is a small illustration – but a
good one – of what countries want
to accomplish with robust capital
markets. (Or rather, of what they
can’t accomplish without them).
Despite the anti-capitalist strain
in our modern politics, most world
leaders still see the obvious: No
other force can lift more people
from poverty or improve quality
of life quite like capitalism. No
other economic model can help
us achieve our highest hopes for
financial freedom – whether we
want it for ourselves or our country.
That’s why the capital markets
will be key to addressing two of
the mid-21st Century’s biggest
economic challenges.
1 The first is providing
people what my
parents built over time
– a secure, well-earned
retirement. This is a
much harder proposition than it
was 30 years ago. And it’ll be a
much harder proposition 30 years
from now. People are living longer
3. OCED Economic Surveys: United States (2016)
4. Securities Industry and Financial Markets Association, Capital Markets Fact Book (2023), p.6
5. World Federation of Exchanges, Market Statistics-February 2024, (2024)
lives. They’ll need more money. The
capital markets can provide it –
so long as governments and
companies help people invest.
2 A second challenge is
infrastructure. How are
we going to build the
massive amount the
world needs?
As countries decarbonize and
digitize their economies, they’re
supercharging demand for all sorts
of infrastructure, from telecom
networks to new ways to generate
power. In fact, in my nearly 50 years
in finance, I’ve never seen more
demand for energy infrastructure.
And that’s because many countries
have twin aims: They want to
transition to lower-carbon sources
of power while also achieving energy
security. The capital markets can
help countries meet their energy
goals, including decarbonization,
in an affordable way.
Asking the old
age question:
How do we afford
longer lives?
Last year, Japan passed a
demographic milestone. The
country’s population has been
aging since the early 1990s as
the pool of working-age people
has shrunk and the number of
elderly has risen. But 2023 was
the first time that 10% of their
people exceeded 80 years old,6
making Japan the “oldest country
in the world”7 according to the
United Nations.
This is part of the reason the
Japanese government is making
a push for retirement investment.
Most Japanese keep the bulk of
their retirement savings in banks,
earning a low interest rate. It wasn’t
such a bad strategy when Japan
was suffering from deflation, but
now the country’s economy has
turned around, with the NIKKEI
surging past 40,000 for the first
time this month (March 2024).8
Most aspiring retirees are missing
out on the upswing. The country
didn’t have anything resembling
a 401(k) program until 2001, but
even then, the amount of income
people could contribute was
quite low. So a decade ago, the
government launched the Nippon
Individual Savings Accounts
(NISA) to encourage people to
invest even more in retirement.
Now they’re trying to double NISA’s
As populations age, building retirement savings has never been more urgent
2020
n
o
i
t
a
l
u
p
o
P
e
g
A
g
n
i
k
r
o
W
l
a
n
o
i
t
a
N
0
2
0
2
f
o
%
130%
120%
110%
100%
90%
80%
70%
60%
50%
Peak Year
Australia 2100
India
2048
USA
2053
Mexico 2039
2029
UK
Brazil
2035
Japan
1994
2010
2020
2030
2040
2050
2060
2070
Source: Working-age population (ages 15-64): UN “medium trend”9
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).
Data from United Nations Population Division, World Population Prospects. (latest refresh 2022), Medium Fertility Projection. 2. Peak year is
defined as the year in which working age population reaches its maximum for a country. Sources: United Nations Population Statistics (as of
2022). OECD (as of 06/2023). World Bank (as of 2022).
14 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 15
enrollment. The goal is 34 million
Japanese investors before the end
of the decade.10 It will require the
Japanese government to expand
their capital markets, which
historically had very little retail
participation.
Japan isn’t alone in helping more
of its citizens invest for retirement.
BlackRock has a joint venture –
Jio BlackRock – with Jio Financial
Services, an affiliate of India’s
Reliance Industries. Over the
past 10 years, India has built a
huge digital public infrastructure
network that connects nearly
one billion Indians to everything
from healthcare to government
payments via their smartphones.
Jio BlackRock’s goal is to use the
same infrastructure to deliver
retirement investing (and more).
After all, India is aging, too. The
whole world is, albeit at different
speeds. Brazil will start seeing more
people leave its workforce than
enter it by 2035; Mexico will reach
peak workforce by 2040; India
sometime around 2050.
By the mid-century mark, one-
in-six people globally will be
over the age of 65, up from one-
in-11 in 2019.11 To support them,
governments are going to have to
prioritize building out robust capital
markets like the U.S. has.
But this isn’t to say the U.S.
retirement system is perfect. I’m
not sure anybody believes that. The
retirement system in America needs
modernizing, at the very least.
Rethinking retirement in
the United States
This was particularly clear last year
as the biotech industry pumped
out a rush of new, life-extending
drugs. Obesity, for example,
can take more than 10 years off
someone’s life expectancy, which
is why some researchers think that
new pharmaceuticals like Ozempic
and Wegovy can be life-extending
drugs, not just weight-loss drugs.12
In fact, a recent study shows that
semaglutide, the generic name
for Ozempic, can give people with
cardiovascular disease an extra two
years of life where they don’t suffer a
major condition like a heart attack.13
These drugs are breakthroughs.
But they underscore a frustrating
irony: As a society, we focus a
tremendous amount of energy on
helping people live longer lives.
But not even a fraction of that
effort is spent helping people
afford those extra years.
It wasn’t always this way. One
reason my parents had a financially
secure retirement was CalPERS,
California’s state pension system.
As a public university employee,
my mom could enroll. But pension
enrollment has been declining
across the country since the 1980s.14
Meanwhile the federal government
has prioritized maintaining
entitlement benefits for people my
age (I’m 71) even though it might
mean that Social Security will
struggle to meet its full obligations
when younger workers retire.
It’s no wonder younger generations,
Millennials and Gen Z, are so
economically anxious. They believe
my generation – the Baby Boomers
– have focused on their own
financial well-being to the detriment
of who comes next. And in the case
of retirement, they’re right.
Today in America, the retirement
message that the government
and companies tell their workers
is effectively: “You’re on your
own.” And before my generation
fully disappears from positions of
corporate and political leadership,
we have an obligation to change that.
Maybe once a decade, the U.S.
faces a problem so big and urgent
that government and corporate
leaders stop business as usual.
They step out of their silos and
sit around the same table to
find a solution. I participated in
something like this after 2008,
when the government needed
to find a way to unwind the toxic
assets from the mortgage crisis.
More recently, tech CEOs and
the federal government came
together to address the fragility of
America’s semiconductor supply
chain. We need to do something
similar for the retirement crisis.
America needs an organized, high-
level effort to ensure that future
generations can live out their final
years with dignity.
What should that national effort
do? I don’t have all the answers. But
what I do have is some data and
the beginnings of a few ideas from
BlackRock’s work. Because our core
business is retirement.
10. Cabinet Secretariat of Japan, Doubling Asset-based Income Plan, (2022), p.2
11. United Nations, UN DESA releases new report on ageing, (2019)
12. The New York Times Magazine, Can We Live to 200? (2021)
13. National Library of Medicine, Estimated Life-Years Gained Free of New or Recurrent Major Cardiovascular Events With the Addition of
Semaglutide to Standard of Care in People With Type 2 Diabetes and High Cardiovascular Risk, (2022)
14. Source 1: Bureau of Labor Statistics, Employee Benefits in the United States, (2023), p.1; Source 2: Bureau of Labor Statistics, Employee
Benefits in Industry, (1980), p. 6
More than half the assets
BlackRock manages are for
retirement.15 We help about 35
million Americans invest for life
after work,16 which amounts to
about a quarter of the country’s
workers.17 Many are educators like
my mom was. BlackRock helps
manage pension assets for roughly
half of U.S. public school teachers.18
And this work – and our similar work
around the globe – has given us
some insight into how a national
initiative to modernize retirement
might begin.
We think the conversation starts by
looking at the challenge through
three different lenses.
• What’s the issue from the
perspective of a current worker,
someone who’s still trying to save
for retirement?
• What about someone who has
already retired? We have to look
at the problem from the retiree’s
point-of-view — an individual who
has already saved enough to stop
working but is worried the money
will run out.
• But first it’s important to look at
retirement in America like you’d
look at a map of America – a
high-level picture of the problem,
the kind a national policymaker
might look at. What’s the issue for
the population as a whole? (It’s
demographics).
The demographics
don’t lie
There’s a popular saying in
economics: “You just can’t fight
demographics.” And yet, when it
comes to retirement, the U.S. is
trying anyway.
In wealthy countries, most
retirement systems have three
pillars. One is what people invest
personally (my dad putting his
money in the stock market).
Another is the plans provided by
employers (my mom’s CalPERS
pension). A third component is what
we hear politicians mostly talking
about – the government safety net.
In the U.S., this is Social Security.
You’re probably familiar with the
economics behind Social Security.
During your working years, the
government takes a portion of your
income, then after you retire, it
sends you a check every month. The
idea actually originates from pre-
World War I Germany, and these
“old-age insurance” programs
gradually became popular over the
20th Century largely because the
demographics made sense.
Think about someone who was
65 years old in 1952, the year I was
born. If he hadn’t retired already,
that person was probably getting
ready to stop working.
But now think about that person’s
former colleagues, all the people
around his age who he’d entered
the workforce with back in the
1910s. The data shows that in 1952,
most of those people were not
preparing for retirement because
they’d already passed away.
This is how the Social Security
program functioned: More than half
the people who worked and paid
into the system never lived to retire
and be paid from the system.19
Today, these demographics have
completely unraveled, and this
unraveling is obviously a wonderful
thing. We should want more people
to live more years. But we can’t
overlook the massive impact on the
country’s retirement system.
It’s not just that more people are
retiring in America; it’s also that
their retirements are increasing
in length. Today, if you’re married
and both you and your spouse are
over the age of 65, there’s a 50/50
chance at least one of you will be
receiving a Social Security check
until you’re 90.20
All this is putting the U.S.
retirement system under immense
strain. The Social Security
Administration itself says that by
2034, it won’t be able to pay people
their full benefits.21
What’s the solution here? No one
should have to work longer than
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)
18. Represents the total number of active public schoolteachers enrolled in defined benefit plans with assets managed by BlackRock. Excludes
Virginia, Alaska and Pennsylvania pension clients, as the states’ DB plan is not the default plan for its participants. Public school teachers count
from the National Center for Education Statistics, projection for 2022 school year. Pensions participation rate based on data from the U.S. Bureau
of Labor Statistics: 89% as of March 2022.
19. Social Security, Life Tables for the United States Social Security Area 1900-2100, Figure 3a
20. Social Security, When to Start Receiving Retirement Benefits, (2023), p.2
21. Social Security, Summary: Actuarial Status of the Social Security Trust Funds, (2023)
16 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 17
they want to. But I do think it’s a
bit crazy that our anchor idea for
the right retirement age – 65 years
old – originates from the time of the
Ottoman Empire.
Humanity has changed over
the past 120 years. So must our
conception of retirement.
One nation that’s rethought
retirement is the Netherlands. In
order to keep their state pension
affordable, the Dutch decided
more than 10 years ago to gradually
raise the retirement age. It will
now automatically adjust as the
country’s life expectancy changes.22
Obviously, implementing this policy
elsewhere would be a massive
political undertaking. But my point
is that we should start having the
conversation. When people are
regularly living past 90, what should
the average retirement age be?
Or rather than pushing back when
people receive retirement benefits,
perhaps there’s a more politically
palatable idea: How do we encourage
more people who wish to work longer,
with carrots rather than sticks?
What if the government and the
private sector treated 60-plus-year-
olds as late-career workers with
much to offer rather than people
who should retire?
One way Japan has managed its
aging economy is by doing exactly
this. They’ve found new ways to
boost the labor force participation
rate, a metric that has been
declining in the U.S. since the early
2000s.23 It’s worth asking: How
can America stop (or at least, slow)
that trend?
Again, I’m not pretending to have
the answers. Despite BlackRock’s
success helping millions retire,
these questions are going to
have to be posed to a broader
range of investors, retirees,
policymakers, and others. Over
the next few months, BlackRock
will be announcing a series of
partnerships and initiatives to do
just that, and I invite you to join us.
For workers, make
investing (almost)
automatic
When the U.S. Census Bureau
released its regular survey of
consumer finances in 2022, nearly
half of Americans aged 55 to
65 reported not having a single
dollar saved in personal retirement
accounts.24 Nothing in a pension.
Zero in an IRA or 401(k).
an Emergency Savings Initiative.
The program has helped mostly low-
income Americans put away a total
of $2 billion in new liquid savings.26
Why? Well, the first barrier
to retirement investing is
affordability.
Four-in-10 Americans don’t
have $400 to spare to cover an
emergency like a car repair or
hospital visit.25 Who is going to
invest money for a retirement 30
years away if they don’t have cash
for today? No one. That’s why
BlackRock’s foundation has worked
with a group of nonprofits to set up
Studies show that when people
have emergency savings, they’re
70% more likely to invest for
retirement.27 But this is where
workers run into another barrier:
Investing is complex even if you
can afford it.
No one is born a natural investor.
It’s important to say that because
sometimes in the financial services
industry we imply the opposite.
We make it seem like saving for
22. Dutch Government, Why is the state pension age increasing? (translated from Dutch)
23. U.S. Bureau of Labor Statistics, Civilian labor force participation rate, (2000-2024)
24. U.S. Census Bureau, Survey of Income and Program Participation (SIPP), (2022)
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
Chief Executive Officer
President
Global Head of
Investment Stewardship
Head of Aladdin
Engineering
Vice Chairman
Global Head of
Corporate Affairs
Head of the Portfolio
Management Group
Head of International
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
ETF and Index Investments
Chief Product Officer
Global Head of Equity
Private Markets
General Counsel and
Chief Legal Officer
Head of BlackRock Global
Markets
Global Head of Aladdin
Chief Investment Officer
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 &
Head of the Risk and
Quantitative Analysis
Group
Chief Operating Officer
Global Head of the
Financial and Strategic
Investors Group
Global Head of Human
Resources
Global Head of BlackRock
Systematic
Chief Financial Officer
Global Head of
Technology & Operations
Head of the
Global Client Business
18 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 19
retirement can be a simple task,
something anyone can do with a bit
of practice, like driving your car to
work. Just grab your keys and hop
in the driver’s seat. But financing
retirement isn’t so intuitive. The
better analogy is if someone
dropped a bunch of engine and
auto parts in your driveway and
said, “Figure it out.”
At BlackRock, we’ve tried to make
the investing process more intuitive
by inventing simpler products like
target date funds. They only require
people to make one decision: What
year do they expect to retire? Once
people choose their “target date,”
the fund automatically adjusts their
portfolio, shifting from higher-
return equities to less risky bonds
as retirement approaches.28
like a target date fund can do. Indeed,
for most people, the data shows
that the hardest part of retirement
investing is just getting started.
In 2023, BlackRock expanded the
types of target date ETFs we offer
so people can more easily buy
them even if they don’t work for
employers offering a retirement
plan. There are 57 million people
like this in America – farmers, gig
workers, restaurant employees,
independent contractors – who
don’t have access to a defined
contribution plan.29 And while
better investment products can help,
there are limits to what something
Other nations make things
simpler for their part-time and
contract workers. In Australia,
employers must contribute a
portion of income for every worker
between the ages of 18 and 70
into a retirement account, which
then belongs to the employee.
The Superannuation Guarantee
was introduced in 1992 when the
country seemed like it was on the
path to a retirement crisis. Thirty-
two years later, Australians likely
28. BlackRock, What are target date funds?
29. AARP, New AARP Research: Nearly Half of Americans Do Not Have Access to Retirement Plans at Work, (2022)
have more retirement savings per
capita than any other country. The
nation has the world’s 54th largest
population,30 but the 4th largest
retirement system.31
Of course, every country is different,
so every retirement system should
be different. But Australia’s
experience with Supers could
be a good model for American
policymakers to study and build
on. Some already are. There are
about 20 U.S. states – like Colorado
and Virginia – that have instituted
retirement systems to cover all
workers like Australia does, even
if they’re gig or part-time.32
It’s a good thing that legislators
are proposing different bills and
states are becoming “laboratories
of retirement.” More should
consider it. The benefits could be
enormous for individual retirees.
These new programs could also
help the U.S. ensure the long-
term solvency of Social Security.
That’s what Australia found – their
Superannuation Guarantee relieved
the financial tension in their
country’s public pension program.33
But what about workers who
do have access to an employer
retirement plan? They need
support too.
Even among employees who
have access to employer plans,
17% don’t enroll in them, and the
hypothesis among retirement
experts is this is not a conscious
choice. People are just busy.
It sounds trivial, but even the
hour or so it takes someone to
look through their work e-mail
inbox for the correct link to their
company’s retirement system and
then select the percentage of their
income they want to contribute
can be the unclearable hurdle.
That’s why companies should
make a conscious effort to look
at what their default option is.
30. CIA: The World Factbook, Country Comparisons: Population (2023 est.)
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
Chairman and CEO of
BlackRock
Chairman of the Board and Director
General of the Arab Fund for
Economic & Social Development
Former Senior Vice President of
Corporate Business Development of
General Electric Company
President and CEO of the
Saudi Arabian Oil Company
Former President and CEO of
Royal Bank of Canada
Kristin Peck
CEO of Zoetis, Inc.
William E. Ford
Fabrizio Freda
Murry S. Gerber
Chairman and CEO of
General Atlantic
President and CEO of the
Estée Lauder Companies Inc.
Lead Independent Director
Former Chairman and CEO of
EQT Corporation
Charles H. Robbins
Chairman and CEO of
Cisco Systems, Inc.
Marco Antonio Slim Domit
Hans E. Vestberg
Chairman of Grupo Financiero
Inbursa, S.A.B. de C.V.
Chairman and CEO of Verizon
Communications, Inc.
Margaret “Peggy” L. Johnson
Robert S. Kapito
Cheryl D. Mills
CEO of Agility Robotics
President of BlackRock
Founder and CEO of
BlackIvy Group
Susan L. Wagner
Mark Wilson
Former Vice Chairman of
BlackRock
Former CEO of Aviva plc and
former President and CEO of AIA
20 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 21
Are people automatically enrolled in
a plan or not? And how much are
they auto-enrolled to contribute? Is
it a minimum percentage of their
income? Or the maximum?
In 2017, the University of Chicago
economist Richard Thaler won
the Nobel Prize, in part, for his
pioneering work around “nudges”
– small changes in policy that can
have enormous impact in people’s
financial lives. Auto-enrollment is
one of them. Studies show that the
simple step of making enrollment
automatic increases retirement
plan participation by nearly 50%.34
As a nation, we should do
everything we can to make
retirement investing more
automatic for workers. And there
are already bright spots. Next
year, a new federal law will kick in,
requiring employers that set up
new 401(k) plans to auto-enroll
their new workers. Plus, there are
hundreds of major companies
(including BlackRock) that have
already taken this step voluntarily.
But firms can do even more to
improve their employee’s financial
lives, such as providing some level
of matching funds for retirement
plans and offering more financial
education on the tremendous
long-term difference between
contributing a small percentage of
your income to retirement versus
the maximum. I also think we
should make it easier for workers to
transfer their 401(k) savings when
they switch jobs. There is a menu
of options here, and we need to
explore all of them.
For retirees, help them
spend what they saved
In 2018, BlackRock commissioned
a study of 1,150 American retirees.
When we dug into the data, we
found something unexpected –
even paradoxical.
The survey showed that after nearly
two decades of retirement, the
average person still had 80% of
their pre-retirement money saved.
We’re talking about people who
were probably between the ages of
75 and 95. If they had invested for
retirement, they were likely sitting
on more than enough money for
the rest of their lives. And yet the
data also showed that they were
anxious about their finances. Only
32% reported feeling comfortable
about spending what they saved.35
This retirement paradox has
a simple explanation: Even
people who know how to save for
retirement still don’t know how to
spend for it.
In the U.S., this problem’s roots
stretch back more than four
decades when employers began
switching from defined benefit
plans – pensions – to defined
contribution plans like 401(k)s.
In a lot of ways, pensions were
much simpler than the 401(k). You
had a job somewhere for 20 or 30
years. Then when you retired, your
pension paid you a set amount –
a defined benefit – every month.
When I entered the workforce in the
1970s, 38% of Americans had one
of these defined benefit plans, but
by 2008 the percentage had been
cut almost in half.36 Meanwhile,
the fraction of Americans with
defined contribution plans almost
quadrupled.37
This should have been a good thing.
Beginning with the Baby Boomers,
fewer and fewer workers spent
their entire careers in one place,
meaning they needed a retirement
option that would follow them from
job to job. In theory, 401(k)s did
that. But in practice? Not really.
Anyone who’s switched jobs knows
how unintuitive it is to transfer
your retirement savings. In fact,
studies show that about 40% of
employees cash out their 401(k)s
when they switch jobs, putting
themselves back at the starting line
for retirement savings.38
The real drawback of defined
contribution was that it
removed most of the retirement
responsibility from employers and
put it squarely on the shoulders of
the employees themselves. With
pensions, companies had a very
clear obligation to their workers.
Their retirement money was a
financial liability on the corporate
balance sheet. Companies knew
they’d have to write a check every
month to each one of their retirees.
But defined contribution plans
ended that, forcing retirees to trade
a steady stream of income for an
impossible math problem.
Because most defined contribution
accounts don’t come with
instructions for how much you can
take out every month, individual
savers first must build up a nest-
egg, then spend down at a rate that
will last them the rest of their lives.
But who really knows how long that
will be?
Put simply, the shift from
defined benefit to defined
contribution has been, for
most people, a shift from
financial certainty to financial
uncertainty.
That’s why around the same time
we saw the data that retirees were
nervous about spending their
savings, we started wondering: Was
there something we could do about
it? Could we develop an investment
strategy that provided the flexibility
of a 401(k) investment but also
the potential for a predictable,
paycheck-like income stream,
similar to a pension?
It turns out, we could. That strategy
is called LifePath Paycheck™, which
will go live in April. As I write this,
14 retirement plan sponsors
are planning to make LifePath
Paycheck™ available to 500,000
employees. I believe it will one day be
the most used investment strategy
in defined contribution plans.
We’re talking about a revolution
in retirement. And while it may
happen in the U.S. first, eventually
other countries will benefit from the
innovation as well. At least, that is
my hope. Because while retirement
is mainly a saving challenge, the
data is clear: It’s a spending one too.
Fear vs. hope
Before I conclude this section on
retirement, I want to share a few
words about one of the largest
barriers to investing for the future.
In my view, it’s not just affordability
or complexity or the fact that
people are too busy to enroll in their
employer’s plan.
Arguably the biggest barrier to
investing for retirement – or for
anything – is fear.
In finance, we sometimes think
of “fear” as a fuzzy, emotional
concept – not as a hard economic
data point. But that’s what it is. Fear
is as important and actionable a
metric as GDP. After all, investment
(or lack thereof) is just a measure
of fear because no one lets their
money sit in a stock or a bond for
30 or 40 years if they’re afraid the
future is going to be worse than the
present. That’s when they put their
money in a bank. Or underneath
the mattress.
This is what happens in many
countries. In China, where new
surveys show consumer confidence
has dropped to its lowest level in
decades, household savings have
reached their highest level on record
– nearly $20 trillion – according
to the central bank.39 China has a
savings rate of about 30%. Nearly
a third of all money earned is socked
away in cash in case it’s needed for
harder times ahead. The U.S., by
comparison, has a savings rate in
the single digits.40
America has rarely been a fearful
country. Hope has been the
nation’s greatest economic asset.
People put their money in American
markets for the same reason
they invest in their homes and
businesses – because they believe
this country will be better tomorrow
than it is today.
This big, hopeful America has
been the one I’ve known my
whole life, but over the past few
years, especially as I’ve had more
grandchildren, I’ve started to ask
myself: Will they know this version
of America, too?
As I was finishing this letter, The
Wall Street Journal published an
article that caught my attention.
It was titled “The Rough Years
that Turned Gen Z into America’s
Most Disillusioned Voters,” and it
included some eye-catching – and
really disheartening – data.
The article showed that from the
mid-1990s through most of the
early 21st Century, most young
people – around 60% of high
school seniors, to be specific –
believed they’d earn a professional
degree, would land a good job, and
go on to be wealthier than their
parents. They were optimistic. But
since the pandemic, that optimism
has fallen precipitously.
Compared with 20 years ago, the
current cohort of young Americans
is 50% more likely to question
whether life has a purpose. Four-
in-10 say it’s “hard to have hope for
the world.” 41
I’ve been working in finance for
almost 50 years. I’ve seen a lot of
numbers. But no single data point
has ever concerned me more than
this one.
The lack of hope worries me as a
CEO. It worries me as a grandfather.
But most of all, it worries me as
an American.
If future generations don’t feel
hopeful about this country and
their future in it, then the U.S.
doesn’t only lose the force that
makes people want to invest.
America will lose what makes it
America. Without hope, we risk
becoming just another place
where people look at the incentive
structure before them and decide
that the safe choice is the only
choice. We risk becoming a country
where people keep their money
under the mattress and their
dreams bottled up in their bedroom.
How do we get our hope back?
Whether we’re trying to solve
retirement or any other problem,
that is the first question we have
to ask, although I readily admit
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)
37. U.S. Chamber of Commerce, Statement of the U.S. Chamber of Commerce, (2012), p. 3
38. Harvard Business Review, Too Many Employees Cash Out Their 401(k)s When Leaving a Job, (2023)
39. The Wall Street Journal, Why China’s Middle Class Is Losing Its Confidence, (2024)
40. The Wall Street Journal, Covid-Era Savings are Crucial to China’s Economic Recovery, (2023)
41. The Wall Street Journal, The Rough Years That Turned Gen Z Into America’s Most Disillusioned Voters, (2024)
22 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 23
that I do not have the solution. I
look at the state of America – and
the world – and I am as answerless
as everyone else. There’s so much
anger and division, and I often
struggle to wrap my head around it.
What I do know is that any answer
has to start by bringing young people
into the fold. The same surveys
that show their lack of hope also
show their lack of confidence – far
less than any previous generation –
in every pillar of society: in politics,
government, the media, and in
corporations. Leaders of these
institutions (I am one) should be
empathetic to their concerns.
Young people have lost trust in
older generations. The burden is
on us to get it back. And maybe
investing for their long-term goals,
including retirement, isn’t such a
bad place to begin.
Perhaps the best way to start
building hope is by telling young
people, “You may not feel very
hopeful about your future. But we
do. And we’re going to help you
invest in it.”
The new
infrastructure
blueprint: steel,
concrete, and
public-private
partnership
I started traveling to London in the
1980s, and back then, if you had a
choice between the city’s two major
international airports – Heathrow
or Gatwick – you probably chose
Heathrow. Gatwick was farther
from the city. It was also in a
comparative state of disrepair.
But things changed in 2009 when
Gatwick was purchased by Global
Infrastructure Partners (GIP). They
increased runway capacity and
instituted commonsense changes,
like oversized luggage trays that cut
security screening times by more
than half.
“The thing about infrastructure
businesses… is a lot of them tend
not to focus on customer service,”
GIP’s CEO Bayo Ogunlesi told the
Financial Times. GIP wanted to make
Gatwick different. In the process,
they also turned the airport into a
prime example of how infrastructure
will be built and run in the 21st
Century – with private capital.42
In the U.S., people tend to think of
infrastructure as a government
endeavor, something built with
taxpayer funds. But because of
one very big reason that I’ll dive
into momentarily, that won’t be the
primary way infrastructure is built
in the mid-21st Century. Rather
than only tapping government
treasuries to build bridges, power
grids, and airports, the world will do
what Gatwick did.
The future of infrastructure is
public-private partnership.
Debt matters
The $1 trillion infrastructure sector
is one of the fastest growing
segments of the private markets,
and there are some undeniable
macroeconomic trends driving this
growth. In developing countries,
people are getting richer, boosting
demand for everything from energy
to transportation while in wealthy
countries, governments need to
both build new infrastructure and
repair the old.
Even in the U.S., where the
Biden Administration has signed
generational infrastructure
investments into law, there’s
still $2 trillion worth of deferred
maintenance.43
How will we pay for all this
infrastructure? The reason I believe
it’ll have to be some combination
of public and private dollars is that
funding probably cannot come
from the government alone. The
debt is just too high.
From Italy to South Africa, many
nations are suffering the highest
debt burdens in their history.
Public debt has tripled since the
mid-1970s, reaching 92% of global
GDP in 2022.44 And in America, the
situation is more urgent than I can
ever remember. Since the start of
the pandemic, the U.S. has issued
roughly $11.1 trillion of new debt,45
and the amount is only part of the
issue. There’s also the interest rate
the Treasury needs to pay on it.
Three years ago, the rate on a 10-
year Treasury bill was under 1%.
But as I write this, it’s over 4%, and
that 3-percentage-point increase is
very dangerous. Should the current
rates hold, it amounts to an extra
trillion dollars in interest payments
over the next decade.46
Why is this debt a problem now?
Because historically, America
has paid for old debt by issuing
new debt in the form of Treasury
securities. It’s a workable strategy
so long as people want to buy those
42. Financial Times, How Adebayo Ogunlesi’s contrarian bet led to $12.5bn BlackRock tie-up, (2024)
43. American Society of Civil Engineers (ASCE), 2021 Report Card For America’s Infrastructure, (2021), p. 5
44. International Monetary Fund, Global Debt Is Returning to its Rising Trend, (2023)
45. Fiscal Data: U.S. Treasury, Debt to the Penny, (Debt was $23.4T in March 2020 and $34.5T in March 2024)
46. The Wall Street Journal, A $1 Trillion Conundrum: The U.S. Government’s Mounting Debt Bill, (2024)
securities — but going forward, the
U.S. cannot take for granted that
investors will want to buy them in
such volume or at the premium they
currently do.
Today, around 30%47 of U.S.
Treasury securities are held by
foreign governments or investors.
That percentage will likely go
down as more countries build their
own capital markets and invest
domestically.
More leaders should pay attention
to America’s snowballing debt.
There’s a bad scenario where the
American economy starts looking
like Japan’s in the late 1990s and
early 2000s, when debt exceeded
GDP and led to periods of austerity
and stagnation. A high-debt
America would also be one where
it’s much harder to fight inflation
since monetary policymakers could
not raise rates without dramatically
adding to an already unsustainable
debt-servicing bill.
But is a debt crisis inevitable? No.
While fiscal discipline can help
tame debt on the margins, it will be
very difficult (both politically and
mathematically) to raise taxes or
cut spending at the level America
would need to dramatically reduce
the debt. But there is another way
out beyond taxing or cutting, and
that’s growth. If U.S. GDP grows
at an average of 3% (in real, not
nominal terms) over the next five
years, that would keep the country’s
debt-to-GDP ratio at 120% –
high, but reasonable.
I should be clear: 3% growth is
a very tall order, especially given
the country’s aging workforce. It
will require policymakers to shift
their focus. We can’t see debt as
a problem that can be solved only
through taxing and spending cuts
anymore. Instead, America’s debt
efforts have to center around pro-
growth policies, which include
tapping the capital markets to
build one of the best catalysts for
growth: infrastructure. Especially
energy infrastructure.
Energy pragmatism
Roads. Bridges. Ports. Airports.
Cell towers. The infrastructure
sector contains multitudes, but
the multitude where BlackRock
sees arguably the greatest demand
for new investment is energy
infrastructure.
Why energy? Two things are
happening in the sector at the
same time.
The first is the “energy transition.”
It’s a mega force, a major economic
trend being driven by nations
representing 90% of the world’s
GDP.48 With wind and solar power
now cheaper in many places than
fossil-fuel-generated electricity,
these countries are increasingly
installing renewables.49 It’s also
a major way to address climate
change. This shift – or energy
transition – has created a ripple
effect in the markets, creating both
risks and opportunities for investors,
including BlackRock’s clients.
I started writing about the
transition in 2020. Since then,
the issue has become more
contentious in the U.S. But outside
that debate, much is still the same.
People are still investing heavily
in decarbonization. In Europe, for
example, net-zero remains a top
investment priority for most of
BlackRock’s clients.50 But now the
demand for clean energy is being
amplified by something else: a
focus on energy security.
Governments have been pursuing
energy security since the oil crisis
of the 1970s (and probably as
far back as the early Industrial
Revolution), so this is not a
new trend. In fact, when I wrote
my original 2020 letter about
sustainability, I also wrote to our
clients that countries would still
need to produce oil and gas to meet
their energy needs.
To be energy secure, I wrote, most
parts of the globe would need “to
rely on hydrocarbons for a number
of years.” 51
Then in 2022, Putin invaded
Ukraine. The war lit a fresh spark
under the idea of energy security. It
disrupted the world’s supply of oil
and gas causing massive energy
inflation, particularly in Europe.
The UK, Norway, and the 27 EU
countries had to collectively spend
800 billion euros subsidizing
energy bills.52
This is part of the reason I’m
hearing more leaders talk about
decarbonization and energy
security together under the joint
banner of what you might call
“energy pragmatism.”
Last year, as I mentioned, I visited
17 countries, and I spent a lot of
time talking to the people who are
responsible for powering homes
and businesses, everybody from
prime ministers to energy grid
operators. The message I heard
was completely opposite to what
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)
50. BlackRock iResearch Services global survey, sample size n=200, May-June 2023. Survey covered institutional investors’ attitudes, approaches,
barriers, and opportunities regarding transition investing. 83% of EMEA respondents surveyed have net zero by 2050 or other date as a transition
objective across their portfolio.
51. BlackRock’s 2020 Letter to Clients, Sustainability as BlackRock’s New Standard for Investing, (2020)
52. Reuters, Europe’s spend on energy crisis nears 800 billion euros, (2023)
24 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 25
you often hear from activists
on the far left and right who say
that countries have to choose
between renewables and oil and
gas. These leaders believe that
the world still needs both. They
were far more pragmatic about
energy than dogmatic. Even the
most climate conscious among
them saw that their long-term path
to decarbonization will include
hydrocarbons, albeit it less of them,
for some time to come.
Germany is a good example of
how energy pragmatism is still a
path to decarbonization. It’s one
of the countries most committed
to fighting climate change and
has made enormous investments
in wind and solar power. But
sometimes the wind doesn’t blow in
Berlin, and the sun doesn’t shine in
Munich. And during those windless,
sunless periods, the country still
needs to rely on natural gas for
“dispatchable power.” Germany
used to get that gas from Russia,
but now it needs to look elsewhere.
So, they’re building additional
gas facilities to import from other
producers around the world.53
Or look at Texas. They face a similar
energy challenge – not because
of Russia but because of the
economy. The state is one of the
fastest growing in the U.S.,54 and
the additional demand for power
is stretching ERCOT, Texas’ energy
grid, to the limit.55
Today, Texas runs on 28%
renewable energy56 – 6% more
than the U.S. as a whole.57 But
without an additional 10 gigawatts
of dispatchable power, which might
need to come partially from natural
gas, the state could continue to
suffer devastating brownouts.
In February, BlackRock helped
convene a summit of investors and
policymakers in Houston to help
find a solution.
Texas and Germany are great
illustrations of what the energy
transition looks like. As I wrote
in 2020, the transition will only
succeed if it’s “fair.” Nobody will
support decarbonization if it means
giving up heating their home in
the winter or cooling it in the
summer. Or if the cost of doing so
is prohibitive.
Since 2020, economists have
popularized better language to
describe what a fair transition
actually means. One important
concept is the “green premium.”
It’s the surcharge people pay
for “going green”: For example,
switching from a car that runs
on gas to an electric vehicle. The
lower the green premium, the fairer
decarbonization will be because
it’ll be more affordable.
This is where the power of the
capital markets can be unleashed
to great effect. Private investment
can help energy companies reduce
the cost of their innovations and
scale them around the world.
Last year, BlackRock invested in
over a dozen of these transition
projects on behalf of our clients.
We partnered with developers in
Southeast Asia aiming to build
over a gigawatt of solar capacity
(enough to power a city) in both
Thailand and the Philippines.58 We
also invested in Lake Turkana Wind
Power, Africa’s largest windfarm.
It’s located in Kenya and currently
accounts for about 12% of the
country’s power generation.59
There are also earlier-stage
technologies, like a giant “hot
rock” battery being built by Antora
Energy. The company heats up
blocks of carbon with wind or solar
power during parts of the day
when renewable energy is cheap
and abundant. These “thermal
batteries” reach up to 2,400
degrees Celsius and glow brighter
than the sun.60 Then, that heat
is used to power giant industrial
facilities around-the-clock, even
when the sun isn’t shining, or the
wind isn’t blowing.
BlackRock invested in Antora
through Decarbonization Partners,
a partnership we have with the
investment firm, Temasek. Our
funding will help Antora scale up to
deliver billions of dollars worth of
zero-emission energy to industrial
customers.61 (One day, their thermal
batteries might help solve the kind
of dispatchable power problem that
Texas and Germany are facing –
but without carbon emissions).
The final technology I’ll spotlight
is carbon capture. Last year, one
of BlackRock’s infrastructure
funds invested $550 million in a
project called STRATOS, which
will be the world’s largest direct air
capture facility when construction
is completed in 2025.62 Among the
more interesting aspects of the
project is who’s building the facility:
Occidental Petroleum, the big
Texas oil company.
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)
The energy market isn’t divided
the way some people think, with
a hard split between oil & gas
producers on one side and new
clean power and climate tech firms
on the other. Many companies,
like Occidental, do both, which
is a major reason BlackRock has
never supported divesting from
traditional energy firms. They’re
pioneers of decarbonization, too.
Today, BlackRock has more than
$300 billion invested in traditional
energy firms on behalf of our
clients. Of that $300 billion, more
than half – $170 billion – is in the
U.S.63 We invest in these energy
companies for one simple reason:
It’s our clients’ money. If they want
to invest in hydrocarbons, we give
them every opportunity to do it –
the same way we invest roughly
$138 billion in energy transition
strategies for our clients. That’s
part of being an asset manager.
We follow our clients’ mandates.
But when it comes to energy,
I also understand why people
have different preferences in
the first place. Decarbonization
and energy security are the two
macroeconomic trends driving
the demand for more energy
infrastructure. Sometimes they’re
competing trends. Other times,
they’re complementary, like when
the same advanced battery that
decarbonizes your grid can also
reduce your dependence on
foreign power.
The point is: The energy transition
is not proceeding in a straight line.
As I’ve written many times before,
it’s moving in different ways and at
different paces in different parts
of the world. At BlackRock, our job
is to help our clients navigate the
big shifts in the energy market no
matter where they are.
BlackRock’s next
transformation
One way we’re helping our
clients navigate the booming
infrastructure market is by
transforming our company. I began
this section by writing about the
owners of Gatwick Airport, GIP. In
January, BlackRock announced our
plans to acquire them.
Why GIP? BlackRock’s own
infrastructure business had been
growing rapidly over the past
several years. But to meet demand,
we realized we needed to grow
even faster.
It’s not just debt-strapped
governments that need to find
alternate pools of financing for
their infrastructure. Private sector
firms do too. All over the world,
there’s a vast infrastructure
footprint that’s owned and operated
entirely by private companies.
Cell towers are a good example.
So are pipelines that deliver the
feedstocks for chemical companies.
Increasingly, the owners of these
assets prefer to have a financing
partner, rather than carrying the full
cost for the infrastructure on their
balance sheet.
I had been thinking about this
trend and called an old colleague,
Bayo Ogunlesi.
Both Bayo and I started our careers
in finance at the investment
bank First Boston. But our paths
diverged. I lost $100 million on a
series of bad trades at First Boston
and…well, nobody needs to hear
that story again. But it led me (and
my BlackRock partners) to pioneer
better risk management for fixed
income markets. Meanwhile, Bayo
and his team were pioneering
modern infrastructure investing
in the private markets.
Now, we plan to join our forces
again. I think the result will be
better opportunities for our clients
to invest in the infrastructure that
keeps our lights on, planes flying,
trains moving, and our cell service
at the maximum number of bars.
More about
BlackRock’s
work in 2023
In this letter, I’ve shared my view
that the capital markets are going to
play an even bigger role in the global
economy. They’ll have to if the world
wants to address the challenges
around infrastructure, debt, and
retirement. These are the major
economic issues of the mid-21st
Century. We’re going to need the
power of capitalism to solve them.
The way BlackRock figures into
that story is through our work with
clients. We want to position them
well to navigate these trends, which
is why we’ve tried to stay more
connected to our clients than ever.
Over the past five years, thousands
of clients on behalf of millions
of individuals have entrusted
BlackRock with managing over
$1.9 trillion in net new assets.
Thousands also use our technology
to better understand the risks in
their portfolios and support the
growth and commercial agility
of their own businesses. Years
of organic growth, alongside the
long-term growth of the capital
markets, underpin our $10 trillion
63. As of June 30, 2022. “Energy companies” refers to corporations classified as belonging to the GICS-1 Energy Sector.
26 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 27
of client assets, which grew by over
$1.4 trillion in 2023.
In good times and bad, whether
clients are focused on increasing
or decreasing risk, our consistent
industry-leading organic growth
demonstrates that clients are
consolidating more of their
portfolios with BlackRock. In 2023,
our clients awarded us with $289
billion in net new assets during
a period of rapid change and
significant portfolio de-risking.
BlackRock’s differentiated business
model has enabled us to continue
to grow with our clients and maintain
positive organic base fee growth.
We’ve grown regardless of the
market backdrop and even as most
of the industry experienced outflows.
I think back to 2016 and 2018
when uncertainty and cautious
sentiment impacted investment
behavior among institutions and
individuals. Many clients de-risked
and moved to cash. BlackRock
stayed connected with our clients.
We stayed rigorous in driving
investment performance, innovating
new products and technologies,
and providing advice on portfolio
design. Once clients were ready to
step back into the markets more
actively, they did it with BlackRock
– leading to new records for client
flows, and organic base fee growth
at or above our target.
Flows and organic base fee growth
accelerated into the end of 2023. We
saw $96 billion of total net inflows in
the fourth quarter and entered 2024
with great momentum.
In 2024, I plan to do what I did in
2023 – spend a lot of time on the
road visiting clients. I’ve already
taken several trips in the U.S. and
around the world, and it’s clearer
than ever that companies and
clients want to work with BlackRock.
For companies where we are
investing on behalf of our clients,
they appreciate that we typically
provide long-term, consistent capital.
We often invest early, and we stay
invested through cycles whether it’s
debt or equity, pre-IPO or post-IPO.
Companies recognize BlackRock’s
global relationships, brand, and
expertise across markets and
industries. This makes us a valuable
partner, and in turn supports the
sourcing and performance we can
provide for clients.
Over the past 18 months, we’ve
sourced and executed on a number
of deals for clients. In addition to
the STRATOS direct air capture
project, our funds partnered with
AT&T on the Gigapower JV to build
out broadband in communities
across the U.S. We also made
investments globally, including
in Brasol (Brazil), AirFirst (South
Korea), Akaysha Energy (Australia),
and the Lake Turkana Wind Farm
(Kenya).
Our ability to source deals for
clients is a primary driver of
demand for BlackRock private
markets strategies. These
strategies saw $14 billion of
net inflows in 2023, driven by
infrastructure and private credit.
We continue to expect these
categories to be our primary growth
drivers within alternatives in the
coming years.
Our active investment insights,
expertise and strong investment
performance similarly differentiate
BlackRock in the market. We saw
nearly $60 billion of active net
inflows in 2023, compared with
industry outflows.
In ETFs, BlackRock generated an
industry-leading $186 billion of net
inflows in 2023. Our leadership
in the ETF industry is another
testament to our global platform
and connectivity with clients.
What we have seen in market
after market is that if we can
make investing easier and more
affordable, we can quickly attract
new clients. We are leveraging
digital wealth platforms in
local markets to provide more
investment access and accelerate
organic growth for iShares ETFs.
In EMEA, BlackRock powers ETF
savings plans for end investors,
partnering with many banks and
brokerage platforms, including
Trade Republic, Scalable Capital,
ING, Lloyds, and Nordnet. These
partnerships will help millions of
people access investments, invest
for the long-term, and achieve
financial well-being.
In 2023, we also announced our
minority investment in Upvest,
which will help drive innovation in
how Europeans access markets
and make it cheaper and simpler to
start investing.
Then there is our work with Britain’s
leading digital bank, Monzo, to
offer its customers our products
through its app, with minimum
investments as low as £1. Through
these relationships, we’re evolving
our iShares ETF franchise to
meaningfully increase access to
global markets.
Let me also say a few words about
Aladdin. It remains the language of
portfolios, uniting all of BlackRock,
and providing the technological
foundation for how we serve clients
across our platform. And Aladdin
isn’t just the key technology that
powers BlackRock; it also powers
many of our clients. The need for
integrated data and risk analytics as
well as whole portfolio views across
public and private markets is driving
annual contract value (ACV) growth.
In 2023, we generated $1.5 billion
in technology services revenue.
Clients are looking to grow and
expand with Aladdin, reflected in
strong harvesting activity, with
over 50% of Aladdin sales being
multi-product.
As we look ahead, the re-risking
of client portfolios will create
tremendous prospects for both
Total return since BlackRock’s IPO through December 31, 2023
9,097%
487%
258%
Oct 1, 1999
Dec 31, 2023
BLK
S&P 500
S&P Financials
Source: S&P Global. The performance graph is not necessarily indicative of future investment performance.
our public and private markets
franchises. And integrated
technology will be needed to
help clients be nimble while
operating at scale.
These are the times where investors
are making broad changes to
the way they build portfolios.
BlackRock is helping investors
build the “portfolio of the future”
– one that integrates public and
private markets and is digitally
enabled. We view these changes as
big catalysts. With the diversified
investment and technology
platform we’ve built, we’ve set
ourselves up to be a structural
grower in the years ahead.
Positioning our
organization for the
future
Just as we continually innovate and
evolve our business to stay ahead
of our clients, we also evolve our
organization and our leadership team.
can continue to get the insights,
solutions, and outcomes they
expect from us.
For years, BlackRock has worked
with clients across the whole
portfolio, albeit with distinctions
between product structures for
ETFs, active mutual funds, and
separate accounts.
Now the traditional lines between
products are blurring. Clients are
building portfolios that seamlessly
combine both active and index
strategies, including liquid and
illiquid assets and spanning public
and private markets, across
ETF, mutual fund, and separate
account structures.
BlackRock has been critical in
expanding the market for ETFs by
making them accessible to more
investors and delivering new asset
classes (like bonds) and investment
strategies (like active). As a result of
that success, the ETF is no longer
just an indexing concept – it is
becoming an efficient structure for
a range of investment solutions.
Earlier this year we announced
changes to reimagine our business
and transform our organization to
better anticipate what clients need
– and shape BlackRock so clients
We always viewed ETFs as a
technology, a technology that
facilitated investing. And just as our
Aladdin technology has become
core to asset management, so too
have ETFs. That’s why we believe
embedding our ETF and Index
expertise across the entire firm will
accelerate the growth of iShares
and every investment strategy
at BlackRock.
We’ll be nimbler and more closely
aligned with clients through our
new architecture with the aim of
delivering a better experience, better
performance, and better outcomes.
Voting choice
Healthy capital markets depend
on a continuous feedback loop
between companies and their
investors. For more than a decade,
BlackRock endeavored to improve
that feedback loop for our clients.
We’ve done it by building an
industry-leading stewardship
program, one that’s focused on
engaging investee companies
on issues impacting our clients’
long-term economic interests.
This requires understanding
how companies are positioned
to navigate the risks and
opportunities they face – for
example, how geopolitical
fragmentation might rewire their
supply chains or how higher
28 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 29
borrowing cost might impact
their capacity to deliver sustained
earnings growth.
but continue to believe that the
industry would benefit from
additional proxy advisors.
To do that, we built one of the
largest stewardship teams to
engage with companies, often
alongside our investment teams,
because we never believed in
the industry’s reliance on the
recommendations of a few proxy
advisors. We knew our clients would
expect us to make independent
proxy voting decisions, informed
by our ongoing dialogue with
companies – a philosophy
that continues to underpin our
stewardship efforts today. For our
clients who have entrusted us with
this important responsibility, we
remain steadfast in promoting
sound corporate governance
practices and financial resilience at
investee companies on their behalf.
And for our clients who wish to
take a more direct role in the proxy
voting process, we continue to
innovate to provide them with more
choice. In 2022, BlackRock was
the first in our industry to launch
Voting Choice, a capability that
enabled institutional investors
to participate in the proxy voting
process. Today, about half of
our clients’ index equity assets
under management can access
Voting Choice. And in February,
we launched a pilot in our largest
core S&P 500 ETF, enabling Voting
Choice for individual investors for
the first time.
We welcome these additional
voices to corporate governance
and believe they can further
strengthen shareholder democracy.
I believe that more asset owners
can participate in this important
process effectively if they are
well-informed. We are encouraged
by their engagement and the
continued transformation of
the proxy voting ecosystem
Strategy for long-term
growth
For 36 years, BlackRock has led by
listening to our clients and evolving
to help them achieve long-term
outcomes. That commitment has
been behind everything we’ve done
as a firm, whether it’s unlocking
new markets through iShares,
pioneering whole portfolio advisory,
launching Aladdin on the desktops
of investors and so much more.
Clients have been at the foundation
of our mindset and our growth
strategy, informing the investments
we’ve made across our businesses.
The combination of technology and
advisory, alongside ETFs, active
and private markets capabilities,
enables us to deliver a better
client experience – leading to
clients consolidating more of
their portfolios with BlackRock
or engaging us for outsourcing
solutions. We believe this in turn
will drive continued differentiated
organic growth into the future.
As we do each year, our
management team and Board
spent time assessing our strategy
for growth. We challenge ourselves
to think: What opportunities will
this economic environment create
for BlackRock and our clients,
what more can we do to meet and
anticipate their needs? How can we
evolve our organization, operating
structure, investment capabilities,
and service models and, in doing
so, keep leading the industry?
We have strong conviction in our
strategy and our ability to execute
with scale and expense discipline.
Our strategy remains centered
on growing Aladdin, ETFs, and
private markets, keeping alpha at
the heart of BlackRock, leading in
sustainable investing, and advising
clients on their whole portfolio.
We have continually made internal
investments for organic growth and
efficiency, investing ahead of client
opportunities in private markets,
ETFs, technology and whole
portfolio solutions.
In private markets, we are prepared
to capitalize on structural growth
trends. Whether it’s executing
on demand for much-needed
infrastructure, or the growing
role of private credit as banks and
public lenders move away from the
middle market, private capital will
be essential. BlackRock is poised
to capture share through our scale,
proprietary origination, and track
record. And we believe our planned
acquisition of GIP will meaningfully
accelerate our ability to offer our
private markets capabilities to
our clients.
In ETFs, we will continue to lead
by expanding investment access
globally and through innovation.
The ETF is an adaptable piece of
financial technology, and over time
we’ve been able to do more with it
than just making investing more
affordable. We’ve been able to bring
better liquidity and price discovery
to more opaque markets. One
recent example is offering people
exposure to Bitcoin through ETFs.
ETFs have been an incredible
growth story in the U.S., with
iShares leading the way. We believe
global ETF adoption is set to
accelerate as catalyst trends that
we saw in the U.S. years ago like the
growth of fee-based advisory and
model portfolios are just beginning
to take root. Nearly half of 2023
iShares net inflows were from our
ETFs listed internationally in local
markets, led by European iShares
net inflows of $70 billion.
Active asset allocation, security
selection and risk management
have consistently been key
elements in long-term returns.
Our active teams across multi-
asset, fixed income and equities
are well-positioned to seize on
broad opportunities arising out
of this new interest rate and
potentially more volatile regime.
We are particularly excited about
the opportunity in fixed income
and how artificial intelligence is
propelling performance in our
systematic investing businesses.
Fixed income is going to be
increasingly relevant in the
construction of whole portfolios
with higher yields and better return
potential compared to the low-
rate environment of the last 15
years. Now that the rate on 10-year
U.S. Treasuries is near long-term
averages, clients are reconsidering
bond allocations.
BlackRock is well-positioned with a
diversified fixed income platform.
It’s not going to be just about
index, where we manage nearly $1.7
trillion. Or just about active, where
we manage over $1 trillion. Some
of the most interesting portfolio
conversations are with allocators
who are blending ETFs with active
or using innovations like our active
ETFs for professionally managed
income solutions.
Across asset classes, the need for
integrated data, technology and
risk management will continue to
drive demand for Aladdin. Through
its dynamic ecosystem of over
130,000 users, the Aladdin platform
is constantly innovating and being
improved. Investments in Aladdin AI
copilots, enhancements in openness
supporting ecosystem partnerships,
and advancing whole portfolio
solutions are going to further
augment the value of Aladdin.
We are honored that our clients
entrusted us with $289 billion of
net new assets in 2023. And over
the past few months, we’ve seen a
decidedly more positive sentiment
and tone in markets and among
clients that I’m very optimistic will
carry into the rest of 2024.
Our ability to adapt, evolve, and
grow has generated a total return
of 9,000% for our shareholders
since our IPO in 1999. That is well
in excess of the S&P 500 return
of 490% and representative of
a business model serving all our
stakeholders.
Our Board of Directors
BlackRock’s Board plays an integral
role in our strategy, our growth and
our success.
The diverse experiences and
backgrounds of our Directors
enable us to have rich discussions
and debates. At each meeting,
our Directors review components
of our long-term strategy and
foster constructive dialogue with
our leadership team on strategic
opportunities, priorities and risks
facing BlackRock’s business. This
dialogue ultimately pushes us to
make the sometimes tactical and
sometimes transformational moves
to build a better BlackRock. This
includes the two transformational
moves we made in January: the
strategic re-architecture of our
organization and our agreement to
acquire GIP.
These two transformational
changes are the largest since our
acquisition of Barclays Global
Investors nearly 15 years ago.
Following the closing of the GIP
transaction, we plan to have
Bayo Ogunlesi join our Board of
Directors. We will continue to evolve
our Board over time to reflect the
breadth of our global business and
to guide us as we evolve ahead of
our clients’ needs.
A final note
Over the past 36 years, BlackRock
has grown from a company of eight
people in a tiny Manhattan office
into the largest asset manager in the
world. But our growth is just a small
part of a much larger success story.
It’s part of the same story that
includes my parents retiring
comfortably after 50 years of
hard work. The same story where
America was able to endure
the 1980s S&L crisis and 2008
financial crisis – and rebound
quickly and with growing strength.
And it’s the story that, hopefully,
will include more people around the
world. Nations that can outgrow
their debt. Cities that can afford to
power more homes and build more
roads. Workers who can live out
their golden years with dignity.
All of these stories are only possible
because of the power of the capital
markets and the people who are
hopeful enough to invest in them.
Sincerely,
Laurence D. Fink
Chairman and
Chief Executive Officer
30 BlackRock | 2023 Annual Report
BlackRock | 2023 Annual Report 31
Financial
Highlights
Please review the Important Notes on
page 31 for information on certain non-
GAAP figures shown through page 30,
as well as for source information on other
data points through page 30.
Important
Notes
(in millions)
2023
2022
2021
Opinions
Total AUM (end of period)
$ 10,008,995
$ 8,594,485
$ 10,010,143
Revenue
17,859
17,873
19,374
Operating income, GAAP
Operating income, as adjusted1
6,275
6,593
6,385
7,450
6,711
7,747
Operating margin, GAAP
35.1%
35.7%
38.5%
Operating margin, as adjusted1
41.7%
42.8%
46.8%
Net income attributable to BLK, GAAP
5,502
5,178
5,901
Net income attributable to BLK, as adjusted1
Diluted weighted-average common shares
5,692
150.7
5,391
152.4
6,254
154.4
Per Share
Diluted earnings, GAAP
$ 36.51
$
33.97
$
38.22
Diluted earnings, as adjusted1
Dividends declared
37.77
20.00
35.36
40.51
19.52
16.52
1. 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, to include adjustments related to amortization of intangible assets, other acquisition-related
costs, including compensation costs for non-recurring retention-related deferred compensation awards, and contingent consideration fair value
adjustments incurred in connection with certain acquisitions and recast such measures for prior periods. Beginning in the first quarter of 2023, the
Company also updated these definitions to exclude the compensation expense related to the market valuation changes on certain deferred cash
compensation plans, and the related gain (loss) on the economic hedge of these deferred cash compensation plans, which the Company began
hedging economically in 2023. The presentation of such updated measures, and their reconciliation to operating income, GAAP basis, operating
margin, GAAP basis, and net income attributable to BlackRock, Inc., GAAP basis for 2023 and 2022 have been included in BlackRock’s Annual Report
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.
Opinions expressed through page 29
are those of BlackRock, Inc. as of
April 2024 and are subject to change.
Investment involves risk including
the loss of principal. The companies
mentioned in this document are not
meant to be a recommendation to buy
or sell any security.
BlackRock data points
All data through page 30 reflects
as-adjusted full-year 2023 results or
is as of December 31, 2023, unless
otherwise noted. 2023 organic growth
is defined as full-year 2023 net flows
divided by assets under management
(AUM) for the entire firm, a particular
segment or particular product as
of December 31, 2022. Long-term
product offerings include active and
passive strategies across equity, fixed
income, multi-asset and alternatives,
and exclude AUM and flows from
the cash management and advisory
businesses.
Industry data points
All data is as of December 31, 2023
unless otherwise noted.
GAAP and as-adjusted results
See pages 44–46 of our 2023 10-K for
an explanation of the use of non-GAAP
financial measures and a reconciliation
to GAAP.
Performance notes
Past performance is not indicative of
future results. Except as specified,
the performance information shown
is as of December 31, 2023 and is
based on preliminary data available
at that time. The performance data
shown reflects information for all
actively and passively managed
equity and fixed income accounts,
including US registered investment
companies, European-domiciled
retail funds and separate accounts for
which performance data is available,
including performance data for high
net worth accounts available as of
November 30, 2023. The performance
data does not include accounts
terminated prior to December 31,
2023 and accounts for which data has
not yet been verified. If such accounts
had been included, the performance
data provided may have substantially
differed from that shown.
Performance comparisons shown are
gross-of-fees for institutional and
high net worth separate accounts,
and net-of-fees for retail funds. The
performance tracking shown for
index accounts is based on gross-
of-fees performance and includes all
institutional accounts and all iShares
funds globally using an index strategy.
AUM information is based on AUM
available as of December 31, 2023
for each account or fund in the asset
class shown without adjustment for
overlapping management of the same
account or fund. Fund performance
reflects the reinvestment of dividends
and distributions.
Performance shown is derived
from applicable benchmarks or peer
median information, as selected by
BlackRock, Inc. Peer medians are
based in part on data either from
Lipper, Inc. or Morningstar, Inc. for
each included product.
Forward-looking statements
This report, and other statements that
BlackRock may make, may contain
forward-looking statements within
the meaning of the Private Securities
Litigation Reform Act, with respect
to BlackRock’s future financial or
business performance, strategies
or expectations. Forward-looking
statements are typically identified
by words or phrases such as “trend,”
“potential,” “opportunity,” “pipeline,”
“believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,”
“estimate,” “position,” “assume,”
“outlook,” “continue,” “remain,”
“maintain,” “sustain,” “seek,”
“achieve,” and similar expressions,
or future or conditional verbs such
as “will,” “would,” “should,” “could,”
“may” and similar expressions. These
statements include, among other
things, statements about future
results of operations and financial
condition; business initiatives and
strategies; political, economic or
industry conditions, the interest
rate environment and financial
and capital markets; product and
service offerings; risk management,
including climate-related risks;
acquisitions and dispositions;
share repurchases and dividends;
and the legislative and regulatory
environment. BlackRock cautions
that forward-looking statements are
subject to numerous assumptions,
risks and uncertainties, which
change over time. Forward-looking
statements speak only as of the
date they are made, and BlackRock
assumes no duty to and does not
undertake to update forward-
looking statements. Actual results
could differ materially from those
anticipated in forward-looking
statements and future results could
differ materially from historical
performance. Factors that can cause
actual results to differ materially
from forward-looking statements
or historical performance include
those described under “Forward-
Looking Statements” and risk factors
disclosed in BlackRock’s most recent
Form 10-K, as such factors may
be updated from time to time in its
periodic filings with the SEC and
available on our website.
32 BlackRock | 2023 Annual Report
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
1
1
BlackRock, Inc.
Form 10-K
Table of Contents
PART I
1
Item 1 Business
20
Item 1A Risk Factors
36
Item 1B Unresolved Staff Comments
37
Item 1C Cybersecurity
38
Item 2 Properties
PART III
70
Item 10
Directors, Executive Officers and
Corporate Governance
70
Item 11 Executive Compensation
70
Item 12
Security Ownership of Certain Beneficial
Owners and Management and Related
Stockholder Matters
38
Item 3 Legal Proceedings
70
Item 13
38
Item 4 Mine Safety Disclosures
Certain Relationships and Related
Transactions, and Director
Independence
PART II
39
Item 5
Market for Registrant’s Common Equity,
Related Stockholder Matters and Issuer
Purchases of Equity Securities
39
Item 6 Reserved
70
Item 14
Principal Accountant Fees
and Services
PART IV
70
Item 15
Exhibits and Financial Statement
Schedules
40
Item 7
Management’s Discussion and Analysis
of Financial Condition and Results of
Operations
73
Item 16 Form 10-K Summary
74
Signatures
65
Item 7A
Quantitative and Qualitative Disclosures
about Market Risk
67
Item 8
Financial Statements and Supplemental
Data
67
Item 9
Changes in and Disagreements with
Accountants on Accounting and
Financial Disclosure
67
Item 9A Controls and Procedures
70
Item 9B Other Information
70
Item 9C Disclosure Regarding Foreign
Jurisdictions That Prevent Inspections
PART I
PART I
Item 1. Business
Item 1. Business
OVERVIEW
OVERVIEW
BlackRock, Inc. (together, with its subsidiaries, unless the
context otherwise indicates, “BlackRock” or the
BlackRock, Inc. (together, with its subsidiaries, unless the
“Company”) is a leading publicly traded investment
context otherwise indicates, “BlackRock” or the
management firm with $10.0 trillion of assets under
“Company”) is a leading publicly traded investment
management (“AUM”) at December 31, 2023. With
management firm with $10.0 trillion of assets under
approximately 19,800 employees in more than 30
management (“AUM”) at December 31, 2023. With
countries who serve clients in over 100 countries across
approximately 19,800 employees in more than 30
the globe, BlackRock provides a broad range of investment
countries who serve clients in over 100 countries across
management and technology services to institutional and
the globe, BlackRock provides a broad range of investment
retail clients worldwide.
management and technology services to institutional and
retail clients worldwide.
BlackRock’s diverse platform of alpha-seeking active,
index and cash management investment strategies across
BlackRock’s diverse platform of alpha-seeking active,
asset classes enables the Company to offer choice and
index and cash management investment strategies across
tailor investment and asset allocation solutions for clients.
asset classes enables the Company to offer choice and
Product offerings include single- and multi-asset
tailor investment and asset allocation solutions for clients.
portfolios investing in equities, fixed income, alternatives
Product offerings include single- and multi-asset
and money market instruments. Products are offered
portfolios investing in equities, fixed income, alternatives
directly and through intermediaries in a variety of vehicles,
and money market instruments. Products are offered
including open-end and closed-end mutual funds,
directly and through intermediaries in a variety of vehicles,
iShares® and BlackRock exchange-traded funds (“ETFs”),
including open-end and closed-end mutual funds,
iShares® and BlackRock exchange-traded funds (“ETFs”),
separate accounts, collective trust funds and other pooled
investment vehicles. BlackRock also offers technology
separate accounts, collective trust funds and other pooled
services, including the investment and risk management
investment vehicles. BlackRock also offers technology
technology platform, Aladdin®, Aladdin Wealth, eFront, and
services, including the investment and risk management
technology platform, Aladdin®, Aladdin Wealth, eFront, and
Cachematrix, as well as advisory services and solutions to
a broad base of institutional and wealth management
Cachematrix, as well as advisory services and solutions to
clients. The Company is highly regulated and manages its
a broad base of institutional and wealth management
clients’ assets as a fiduciary. The Company does not
clients. The Company is highly regulated and manages its
engage in proprietary trading activities that could conflict
clients’ assets as a fiduciary. The Company does not
with the interests of its clients.
engage in proprietary trading activities that could conflict
with the interests of its clients.
BlackRock serves a diverse mix of institutional and retail
clients across the globe. Clients include tax-exempt
BlackRock serves a diverse mix of institutional and retail
institutions, such as defined benefit and defined
clients across the globe. Clients include tax-exempt
contribution pension plans, charities, foundations and
institutions, such as defined benefit and defined
endowments; official institutions, such as central banks,
contribution pension plans, charities, foundations and
sovereign wealth funds, supranationals and other
endowments; official institutions, such as central banks,
government entities; taxable institutions, including
sovereign wealth funds, supranationals and other
insurance companies, financial institutions, corporations
government entities; taxable institutions, including
and third-party fund sponsors, and retail intermediaries.
insurance companies, financial institutions, corporations
and third-party fund sponsors, and retail intermediaries.
BlackRock maintains a significant global sales and
marketing presence that is focused on establishing and
BlackRock maintains a significant global sales and
maintaining retail and institutional investment
marketing presence that is focused on establishing and
management and technology service relationships by
maintaining retail and institutional investment
marketing its services to investors directly and through
management and technology service relationships by
third-party distribution relationships, including financial
marketing its services to investors directly and through
professionals and pension consultants.
third-party distribution relationships, including financial
professionals and pension consultants.
BlackRock is an independent, publicly traded company,
with no single majority shareholder and over 85% of its
BlackRock is an independent, publicly traded company,
Board of Directors consisting of independent directors.
with no single majority shareholder and over 85% of its
Board of Directors consisting of independent directors.
Management seeks to deliver value for stockholders over
time by, among other things, capitalizing on BlackRock’s
Management seeks to deliver value for stockholders over
differentiated competitive position, including:
time by, among other things, capitalizing on BlackRock’s
differentiated competitive position, including:
• the Company’s longstanding model of client choice,
through which it offers a wide range of index, active,
• the Company’s longstanding model of client choice,
through which it offers a wide range of index, active,
and whole portfolio solutions across broad markets,
themes, regions, and investment styles;
and whole portfolio solutions across broad markets,
themes, regions, and investment styles;
• the Company’s focus on strong investment
• the Company’s focus on strong investment
performance, seeking the best risk-adjusted returns for
client portfolios, within the mandates given by clients,
performance, seeking the best risk-adjusted returns for
to help them meet their investment objectives;
client portfolios, within the mandates given by clients,
to help them meet their investment objectives;
• the Company’s research, data and analytics, which are
at the center of BlackRock’s investment approach and
• the Company’s research, data and analytics, which are
processes. They inform BlackRock’s pursuit of the best
at the center of BlackRock’s investment approach and
risk-adjusted returns, and underpin product creation
processes. They inform BlackRock’s pursuit of the best
and innovation;
risk-adjusted returns, and underpin product creation
and innovation;
• the Company’s global reach and commitment to best
practices around the world, with approximately 55% of
• the Company’s global reach and commitment to best
employees outside the United States (“US”) serving
practices around the world, with approximately 55% of
clients locally and supporting local investment
employees outside the United States (“US”) serving
capabilities. Approximately 40% of total AUM is
clients locally and supporting local investment
managed for clients domiciled outside the US;
capabilities. Approximately 40% of total AUM is
managed for clients domiciled outside the US;
• the Company’s differentiated client relationships and
fiduciary focus, which enable effective positioning
• the Company’s differentiated client relationships and
toward changing client needs and industry trends
fiduciary focus, which enable effective positioning
including the secular shift to ETFs; growing allocations
toward changing client needs and industry trends
to private markets, such as infrastructure and private
including the secular shift to ETFs; growing allocations
credit; increasing demand for outsourcing and whole
to private markets, such as infrastructure and private
portfolio solutions using index, active and illiquid
credit; increasing demand for outsourcing and whole
alternatives products; anticipated re-allocations to
portfolio solutions using index, active and illiquid
fixed income; demand for high-performing active
alternatives products; anticipated re-allocations to
strategies; interest in sustainable investment
fixed income; demand for high-performing active
strategies; and a continued focus on income and
strategies; interest in sustainable investment
retirement; and
strategies; and a continued focus on income and
retirement; and
• the Company’s longstanding commitment to
• the Company’s longstanding commitment to
innovation, technology services and the continued
development of, and increased interest in, BlackRock
innovation, technology services and the continued
technology products and solutions, including Aladdin,
development of, and increased interest in, BlackRock
Aladdin Wealth, eFront, and Cachematrix. This
technology products and solutions, including Aladdin,
commitment is further extended by minority
Aladdin Wealth, eFront, and Cachematrix. This
investments in financial technology and digital
commitment is further extended by minority
distribution providers, data and whole portfolio
investments in financial technology and digital
capabilities including Upvest, Avaloq, Human Interest,
distribution providers, data and whole portfolio
Circle, SpiderRock Advisors, Clarity AI, Envestnet,
capabilities including Upvest, Avaloq, Human Interest,
Acorns, Scalable Capital and iCapital.
Circle, SpiderRock Advisors, Clarity AI, Envestnet,
Acorns, Scalable Capital and iCapital.
BlackRock operates in a global marketplace impacted by
changing market dynamics and economic uncertainty,
BlackRock operates in a global marketplace impacted by
factors that can significantly affect earnings and
changing market dynamics and economic uncertainty,
stockholder returns in any given period.
factors that can significantly affect earnings and
stockholder returns in any given period.
The Company’s ability to increase revenue, earnings and
stockholder value over time is predicated on its ability to
The Company’s ability to increase revenue, earnings and
generate new business, including business in Aladdin and
stockholder value over time is predicated on its ability to
other technology products and services. New business
generate new business, including business in Aladdin and
efforts depend on BlackRock’s ability to achieve clients’
other technology products and services. New business
investment objectives, in a manner consistent with their
efforts depend on BlackRock’s ability to achieve clients’
risk preferences, to deliver excellent client service and to
investment objectives, in a manner consistent with their
innovate in technology to serve clients’ evolving needs. All
risk preferences, to deliver excellent client service and to
of these efforts require the commitment and contributions
innovate in technology to serve clients’ evolving needs. All
of BlackRock employees. Accordingly, the ability to attract,
of these efforts require the commitment and contributions
develop and retain qualified professionals is critical to the
of BlackRock employees. Accordingly, the ability to attract,
Company’s long-term success.
develop and retain qualified professionals is critical to the
Company’s long-term success.
2 BlackRock | 2023 Form 10-K
2 BlackRock | 2023 Form 10-K
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
(in millions, except per share data)
GAAP:
GAAP:
Total revenue
Total revenue
Operating income
Operating income
Operating margin
Operating margin
Nonoperating income (expense)(1)
Nonoperating income (expense)(1)
Net income attributable to BlackRock, Inc.
Net income attributable to BlackRock, Inc.
Diluted earnings per common share
Diluted earnings per common share
(in millions, except per share data)
(in millions, except per share data)
As adjusted(2):
As adjusted(2):
Operating income
Operating income
Operating margin
Operating margin
Nonoperating income (expense)(1)
Nonoperating income (expense)(1)
Net income attributable to BlackRock, Inc.
Net income attributable to BlackRock, Inc.
Diluted earnings per common share
Diluted earnings per common share
(1) Net of net income (loss) attributable to noncontrolling interests (redeemable and nonredeemable).
2023
2023
2022
2022
2021
2021
2020
2020
2019
2019
$ 17,859
$ 17,859
$ 6,275
$ 6,275
35.1%
35.1%
706
$
$
706
$ 5,502
$ 5,502
$ 36.51
$ 36.51
$ 17,873
$ 17,873
$ 6,385
$ 6,385
35.7%
35.7%
89
$
$
89
$ 5,178
$ 5,178
$ 33.97
$ 33.97
$ 19,374
$ 19,374
$ 7,450
$ 7,450
38.5%
38.5%
419
$
$
419
$ 5,901
$ 5,901
$ 38.22
$ 38.22
$ 16,205
$ 16,205
$ 5,695
$ 5,695
35.1%
35.1%
475
$
$
475
$ 4,932
$ 4,932
$ 31.85
$ 31.85
$ 14,539
$ 14,539
$ 5,551
$ 5,551
38.2%
38.2%
186
$
$
186
$ 4,476
$ 4,476
$ 28.43
$ 28.43
2023
2023
2022
2022
2021
2021
2020
2020
2019
2019
$ 6,593
$ 6,593
41.7%
41.7%
648
$
$
648
$ 5,692
$ 5,692
$ 37.77
$ 37.77
$ 6,711
$ 6,711
42.8%
42.8%
89
$
$
89
$ 5,391
$ 5,391
$ 35.36
$ 35.36
$ 7,747
$ 7,747
46.8%
46.8%
419
$
$
419
$ 6,254
$ 6,254
$ 40.51
$ 40.51
$ 6,433
$ 6,433
46.0%
46.0%
353
$
$
353
$ 5,352
$ 5,352
$ 34.57
$ 34.57
$ 5,784
$ 5,784
45.5%
45.5%
186
$
$
186
$ 4,664
$ 4,664
$ 29.62
$ 29.62
(1) Net of net income (loss) attributable to noncontrolling interests (redeemable and nonredeemable).
(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
(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
ongoing operating results may be enhanced if investors have additional non-GAAP financial measures.
ongoing operating results may be enhanced if investors have additional non-GAAP financial measures.
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, to include new adjustments. Such measures have been recast for all prior periods to reflect the inclusion of such new adjustments. In addition, beginning in the first quarter of 2023,
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
BlackRock updated the definitions of its non-GAAP financial measures to exclude the impact of market valuation changes on certain deferred cash compensation plans which the Company
adjusted, to include new adjustments. Such measures have been recast for all prior periods to reflect the inclusion of such new adjustments. In addition, beginning in the first quarter of 2023,
began economically hedging in 2023. For further information on non-GAAP financial measures and for as adjusted items for 2023 and 2022, see Item 7. Management’sDiscussionand
BlackRock updated the definitions of its non-GAAP financial measures to exclude the impact of market valuation changes on certain deferred cash compensation plans which the Company
AnalysisofFinancialConditionandResultsofOperations—Non-GAAPFinancialMeasures. For further information on non-GAAP financial measures and for as adjusted items for 2021, 2020
began economically hedging in 2023. For further information on non-GAAP financial measures and for as adjusted items for 2023 and 2022, see Item 7. Management’sDiscussionand
and 2019, see Item 7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Non-GAAPFinancialMeasures, of the Company’s Annual Report on Form 10-K
AnalysisofFinancialConditionandResultsofOperations—Non-GAAPFinancialMeasures. For further information on non-GAAP financial measures and for as adjusted items for 2021, 2020
for the year ended December 31, 2022.
and 2019, see Item 7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations—Non-GAAPFinancialMeasures, of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2022.
ASSETS UNDER MANAGEMENT
ASSETS UNDER MANAGEMENT
The Company’s AUM by product type for the years 2019 through 2023 is presented below.
The Company’s AUM by product type for the years 2019 through 2023 is presented below.
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
(1) Percentage represents compound annual growth rate (“CAGR”) over a five-year period (December 31, 2018 – December 31, 2023).
2023
2023
$ 5,293,344
$ 5,293,344
2,804,026
2,804,026
870,804
870,804
275,984
275,984
9,244,158
9,244,158
764,837
764,837
—
—
$ 10,008,995
$ 10,008,995
2022
2022
$ 4,435,354
$ 4,435,354
2,536,823
2,536,823
684,904
684,904
266,210
266,210
7,923,291
7,923,291
671,194
671,194
—
—
$ 8,594,485
$ 8,594,485
December 31,
December 31,
2021
2021
$ 5,342,360
$ 5,342,360
2,822,041
2,822,041
816,494
816,494
264,881
264,881
9,245,776
9,245,776
755,057
755,057
9,310
9,310
$ 10,010,143
$ 10,010,143
2020
2020
$ 4,419,806
$ 4,419,806
2,674,488
2,674,488
658,733
658,733
235,042
235,042
7,988,069
7,988,069
666,252
666,252
22,359
22,359
$ 8,676,680
$ 8,676,680
2019
2019
$ 3,820,329
$ 3,820,329
2,315,392
2,315,392
568,121
568,121
178,072
178,072
6,881,914
6,881,914
545,949
545,949
1,770
1,770
$ 7,429,633
$ 7,429,633
5-Year
CAGR(1)
5-Year
CAGR(1)
12%
12%
8%
8%
14%
14%
14%
14%
11%
11%
11%
11%
—
—
11%
11%
(1) Percentage represents compound annual growth rate (“CAGR”) over a five-year period (December 31, 2018 – December 31, 2023).
Component changes in AUM by product type for the five years ended December 31, 2023 are presented below.
Component changes in AUM by product type for the five years ended December 31, 2023 are presented below.
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
(1)
December 31,
2023
December 31,
2023
$ 5,293,344
$ 5,293,344
2,804,026
2,804,026
870,804
870,804
275,984
275,984
9,244,158
9,244,158
764,837
764,837
—
—
$ 10,008,995
$ 10,008,995
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
2023 (the “Kreos Transaction”).
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
2023 (the “Kreos Transaction”).
Market
change
Market
change
$ 2,015,984
$ 2,015,984
(68,551)
(68,551)
178,501
178,501
37,779
37,779
2,163,713
2,163,713
11,654
11,654
618
618
$ 2,175,985
$ 2,175,985
Net inflows
(outflows)
Net inflows
(outflows)
$ 272,642
$ 272,642
1,044,744
1,044,744
243,942
243,942
93,248
93,248
1,654,576
1,654,576
302,338
302,338
(2,421)
(2,421)
$ 1,954,493
$ 1,954,493
December 31,
2018
December 31,
2018
$ 3,035,825
$ 3,035,825
1,884,417
1,884,417
461,884
461,884
143,358
143,358
5,525,484
5,525,484
448,565
448,565
1,769
1,769
$ 5,975,818
$ 5,975,818
FX
impact
FX
impact
$ (72,431)
$ (72,431)
(56,584)
(56,584)
(13,523)
(13,523)
(578)
(578)
(143,116)
(143,116)
2,280
2,280
34
34
$ (140,802)
$ (140,802)
Acquisitions(1)
Acquisitions(1)
$ 41,324
$ 41,324
—
—
—
—
2,177
2,177
43,501
43,501
—
—
—
—
$ 43,501
$ 43,501
(1)
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
3
3
investment system as well as risk management,
outsourcing, advisory and other technology services, to
investment system as well as risk management,
institutional investors and wealth management
outsourcing, advisory and other technology services, to
intermediaries. Revenue for these services may be based
institutional investors and wealth management
on several criteria including value of positions, number of
intermediaries. Revenue for these services may be based
users, implementation go-lives and software solution
on several criteria including value of positions, number of
delivery and support.
users, implementation go-lives and software solution
delivery and support.
At December 31, 2023, total AUM was $10.0 trillion,
representing a CAGR of 11% over the last five years. AUM
At December 31, 2023, total AUM was $10.0 trillion,
growth during the period was achieved through the
representing a CAGR of 11% over the last five years. AUM
combination of net market valuation gains, net inflows
growth during the period was achieved through the
and acquisitions, including the net AUM impact from the
combination of net market valuation gains, net inflows
Aperio Transaction, which added $41.3 billion of AUM in
and acquisitions, including the net AUM impact from the
February 2021, and the Kreos Transaction, which added
Aperio Transaction, which added $41.3 billion of AUM in
$2.2 billion of AUM in August 2023. Our AUM mix
February 2021, and the Kreos Transaction, which added
encompasses a broadly diversified product range, as
$2.2 billion of AUM in August 2023. Our AUM mix
described below.
encompasses a broadly diversified product range, as
described below.
AUM represents the broad range of financial assets
managed for clients on a discretionary basis pursuant to
AUM represents the broad range of financial assets
investment management and trust agreements that are
managed for clients on a discretionary basis pursuant to
expected to continue for at least 12 months. In general,
investment management and trust agreements that are
reported AUM reflects the valuation methodology that
expected to continue for at least 12 months. In general,
corresponds to the basis used for determining revenue
reported AUM reflects the valuation methodology that
(for example, net asset value). Reported AUM does not
corresponds to the basis used for determining revenue
include assets for which BlackRock provides risk
(for example, net asset value). Reported AUM does not
management or other forms of nondiscretionary advice, or
include assets for which BlackRock provides risk
assets that the Company is retained to manage on a short-
management or other forms of nondiscretionary advice, or
term, temporary basis.
assets that the Company is retained to manage on a short-
term, temporary basis.
Investment management fees are typically earned as a
percentage of AUM. BlackRock also earns performance
Investment management fees are typically earned as a
fees on certain portfolios relative to an agreed-upon
percentage of AUM. BlackRock also earns performance
benchmark or return hurdle. On some products, the
fees on certain portfolios relative to an agreed-upon
Company also may earn securities lending revenue. In
benchmark or return hurdle. On some products, the
addition, BlackRock offers its proprietary Aladdin
Company also may earn securities lending revenue. In
addition, BlackRock offers its proprietary Aladdin
The Company considers the categorization of its AUM by client type, product type, investment style, and client region
useful to understanding its business. The following discussion of the Company’s AUM will be organized as follows:
The Company considers the categorization of its AUM by client type, product type, investment style, and client region
useful to understanding its business. The following discussion of the Company’s AUM will be organized as follows:
Client Type
Client Type
• Retail
• Retail
• ETFs
• ETFs
• Institutional
• Institutional
Client Region
Client Region
• Americas
• Americas
• Europe, the Middle East and Africa (“EMEA”)
• Europe, the Middle East and Africa (“EMEA”)
• Asia-Pacific
• Asia-Pacific
Investment Style
Investment Style
• Active
• Active
• Index and ETFs
• Index and ETFs
Product Type
Product Type
• Equity
• Equity
• Fixed Income
• Fixed Income
• Multi-asset
• Multi-asset
• Alternatives
• Alternatives
• Cash Management
• Cash Management
CLIENT TYPE
CLIENT TYPE
BlackRock serves a diverse mix of institutional and retail
clients across the globe, with a regionally focused
BlackRock serves a diverse mix of institutional and retail
business model. BlackRock leverages the benefits of scale
clients across the globe, with a regionally focused
across global investment, risk and technology platforms
business model. BlackRock leverages the benefits of scale
while at the same time using local distribution presence to
across global investment, risk and technology platforms
deliver solutions for clients. Furthermore, our structure
while at the same time using local distribution presence to
facilitates strong teamwork globally across both functions
deliver solutions for clients. Furthermore, our structure
and regions in order to enhance our ability to leverage
facilitates strong teamwork globally across both functions
best practices to serve our clients and continue to develop
and regions in order to enhance our ability to leverage
our talent.
best practices to serve our clients and continue to develop
our talent.
Clients include tax-exempt institutions, such as defined
benefit and defined contribution pension plans, charities,
Clients include tax-exempt institutions, such as defined
benefit and defined contribution pension plans, charities,
AUM by investment style and client type at December 31, 2023 is presented below.
AUM by investment style and client type at December 31, 2023 is presented below.
foundations and endowments; official institutions, such as
central banks, sovereign wealth funds, supranationals and
foundations and endowments; official institutions, such as
other government entities; taxable institutions, including
central banks, sovereign wealth funds, supranationals and
insurance companies, financial institutions, corporations
other government entities; taxable institutions, including
and third-party fund sponsors, and retail intermediaries.
insurance companies, financial institutions, corporations
and third-party fund sponsors, and retail intermediaries.
ETFs are a growing component of both institutional and
retail client portfolios. However, as ETFs are traded on
ETFs are a growing component of both institutional and
exchanges, complete transparency on the ultimate
retail client portfolios. However, as ETFs are traded on
end-client is unavailable. Therefore, ETFs are presented as
exchanges, complete transparency on the ultimate
a separate client type below, with investments in ETFs by
end-client is unavailable. Therefore, ETFs are presented as
institutions and retail clients excluded from figures and
a separate client type below, with investments in ETFs by
discussions in their respective sections.
institutions and retail clients excluded from figures and
discussions in their respective sections.
(in millions)
(in millions)
Active
Active
Non-ETF Index
Non-ETF Index
ETFs
ETFs
Long-term
Long-term
Cash management
Cash management
Total
Total
Retail
Retail
$ 708,510
$ 708,510
221,187
221,187
—
—
929,697
929,697
9,142
9,142
$ 938,839
$ 938,839
ETFs
ETFs
$
$
—
—
—
—
3,499,299
3,499,299
3,499,299
3,499,299
—
—
$ 3,499,299
$ 3,499,299
Institutional
Institutional
$ 1,912,668
$ 1,912,668
2,902,494
2,902,494
—
—
4,815,162
4,815,162
755,695
755,695
$ 5,570,857
$ 5,570,857
Total
Total
$ 2,621,178
$ 2,621,178
3,123,681
3,123,681
3,499,299
3,499,299
9,244,158
9,244,158
764,837
764,837
$ 10,008,995
$ 10,008,995
Retail
Retail
BlackRock serves retail investors globally through a wide
array of products across the investment spectrum,
BlackRock serves retail investors globally through a wide
including separate accounts, open-end and closed-end
array of products across the investment spectrum,
funds, unit trusts and private investment funds. Retail
including separate accounts, open-end and closed-end
investors are served principally through intermediaries,
funds, unit trusts and private investment funds. Retail
including broker-dealers, banks, trust companies,
investors are served principally through intermediaries,
insurance companies and independent financial advisors.
including broker-dealers, banks, trust companies,
Technology solutions, digital distribution tools and a shift
insurance companies and independent financial advisors.
Technology solutions, digital distribution tools and a shift
toward portfolio construction are increasing the number
of financial advisors and end-retail investors using
toward portfolio construction are increasing the number
BlackRock products.
of financial advisors and end-retail investors using
BlackRock products.
Retail represented 10% of long-term AUM at
December 31, 2023 and 31% of long-term investment
Retail represented 10% of long-term AUM at
advisory and administration fees (collectively “base fees”)
December 31, 2023 and 31% of long-term investment
and securities lending revenue for 2023.
advisory and administration fees (collectively “base fees”)
and securities lending revenue for 2023.
4 BlackRock | 2023 Form 10-K
4 BlackRock | 2023 Form 10-K
ETFs have a significant retail component but are shown
separately below. With the exclusion of ETFs, the majority
ETFs have a significant retail component but are shown
of retail AUM is comprised of active mutual funds. In the
separately below. With the exclusion of ETFs, the majority
aggregate, active and index mutual funds totaled
of retail AUM is comprised of active mutual funds. In the
$705 billion, or approximately 75%, of retail long-term
aggregate, active and index mutual funds totaled
$705 billion, or approximately 75%, of retail long-term
Component changes in retail long-term AUM for 2023 are presented below.
Component changes in retail long-term AUM for 2023 are presented below.
AUM at year-end, with the remainder invested in private
investment funds and separately managed accounts.
AUM at year-end, with the remainder invested in private
Approximately 75% of retail long-term AUM is invested in
investment funds and separately managed accounts.
active products.
Approximately 75% of retail long-term AUM is invested in
active products.
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Total
Total
The retail client base is diversified geographically, with
69% of long-term AUM managed for investors based in
The retail client base is diversified geographically, with
the Americas, 26% in EMEA and 5% in Asia-Pacific at
69% of long-term AUM managed for investors based in
year-end 2023.
the Americas, 26% in EMEA and 5% in Asia-Pacific at
year-end 2023.
• US retail long-term net outflows of $5 billion were
driven by outflows from alternatives, fixed income and
• US retail long-term net outflows of $5 billion were
multi-asset of $6 billion, $2 billion and $1 billion,
driven by outflows from alternatives, fixed income and
respectively, partially offset by equity net inflows of
multi-asset of $6 billion, $2 billion and $1 billion,
$5 billion. Alternatives and fixed income net outflows
respectively, partially offset by equity net inflows of
were primarily from rising-rate-sensitive strategies,
$5 billion. Alternatives and fixed income net outflows
were primarily from rising-rate-sensitive strategies,
December 31,
2022
December 31,
2022
$ 370,612
$ 370,612
299,114
299,114
125,168
125,168
48,581
48,581
$ 843,475
$ 843,475
FX
impact
FX
impact
$ 4,064
$ 4,064
4,335
4,335
583
583
336
336
$ 9,318
$ 9,318
Net inflows
(outflows)
Net inflows
(outflows)
$ 2,810
$ 2,810
(2,471)
(2,471)
(236)
(236)
(8,576)
(8,576)
$ (8,473)
$ (8,473)
December 31,
2023
December 31,
2023
$ 435,734
$ 435,734
312,799
312,799
139,537
139,537
41,627
41,627
$ 929,697
$ 929,697
Market
change
Market
change
$ 58,248
$ 58,248
11,821
11,821
14,022
14,022
1,286
1,286
$ 85,377
$ 85,377
including event driven, multi-strategy credit and
unconstrained bond funds. Multi-asset net outflows
including event driven, multi-strategy credit and
were driven by world allocation and multi-asset
unconstrained bond funds. Multi-asset net outflows
income strategies. Equity net inflows of $5 billion
were driven by world allocation and multi-asset
reflected flows in Aperio, BlackRock’s customized
income strategies. Equity net inflows of $5 billion
index equity solution.
reflected flows in Aperio, BlackRock’s customized
index equity solution.
• International retail long-term net outflows of $4 billion
were driven by alternatives and equity net outflows of
• International retail long-term net outflows of $4 billion
$2 billion each, primarily due to redemptions from
were driven by alternatives and equity net outflows of
event driven and unconstrained strategies.
$2 billion each, primarily due to redemptions from
event driven and unconstrained strategies.
ETFs
ETFs
BlackRock is the leading ETF provider in the world with $3.5 trillion of AUM as of December 31, 2023. BlackRock
generated ETF net inflows of $186 billion in 2023. The majority of ETF AUM and net inflows represent the Company’s
BlackRock is the leading ETF provider in the world with $3.5 trillion of AUM as of December 31, 2023. BlackRock
index-tracking iShares-branded ETFs. The Company also offers active BlackRock-branded ETFs that seek
generated ETF net inflows of $186 billion in 2023. The majority of ETF AUM and net inflows represent the Company’s
outperformance and/or differentiated outcomes and certain iShares-branded ETFs that seek defined outcomes.
index-tracking iShares-branded ETFs. The Company also offers active BlackRock-branded ETFs that seek
outperformance and/or differentiated outcomes and certain iShares-branded ETFs that seek defined outcomes.
Fixed income ETF net inflows of $112 billion were diversified across exposures, led by flows into treasury, core and
corporate credit ETFs. Equity ETF net inflows of $81 billion were driven by flows into core ETFs, as well as continued client
Fixed income ETF net inflows of $112 billion were diversified across exposures, led by flows into treasury, core and
use of BlackRock’s broad-based precision exposure ETFs to express risk preferences and make tactical allocation
corporate credit ETFs. Equity ETF net inflows of $81 billion were driven by flows into core ETFs, as well as continued client
changes during the year. Alternative ETFs had net outflows of $6 billion, primarily driven by commodities funds.
use of BlackRock’s broad-based precision exposure ETFs to express risk preferences and make tactical allocation
changes during the year. Alternative ETFs had net outflows of $6 billion, primarily driven by commodities funds.
ETFs represented 38% of long-term AUM at December 31, 2023 and 43% of long-term base fees and securities lending
revenue for 2023.
ETFs represented 38% of long-term AUM at December 31, 2023 and 43% of long-term base fees and securities lending
revenue for 2023.
Component changes in ETFs AUM for 2023 are presented below.
Component changes in ETFs AUM for 2023 are presented below.
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives(1)
Alternatives(1)
Total
Total
(1)
Amounts include commodity ETFs.
December 31,
2022
December 31,
2022
$ 2,081,742
$ 2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
$ 2,909,610
$ 2,909,610
Net inflows
(outflows)
Net inflows
(outflows)
$ 81,223
$ 81,223
111,956
111,956
(746)
(746)
(6,491)
(6,491)
$ 185,942
$ 185,942
Market
change
Market
change
$ 362,885
$ 362,885
24,544
24,544
949
949
4,626
4,626
$ 393,004
$ 393,004
FX
impact
FX
impact
$ 6,781
$ 6,781
3,810
3,810
62
62
90
90
$ 10,743
$ 10,743
December 31,
2023
December 31,
2023
$ 2,532,631
$ 2,532,631
898,403
898,403
9,140
9,140
59,125
59,125
$ 3,499,299
$ 3,499,299
Amounts include commodity ETFs.
(1)
BlackRock’s ETF product range offers investors a precise,
transparent and efficient way to gain exposure to a full range of
BlackRock’s ETF product range offers investors a precise,
asset classes and global markets that have been difficult for
transparent and efficient way to gain exposure to a full range of
many investors to access, as well as the liquidity required to
asset classes and global markets that have been difficult for
make adjustments to their exposures quickly and cost-
many investors to access, as well as the liquidity required to
efficiently.
make adjustments to their exposures quickly and cost-
efficiently.
• US ETF* AUM ended 2023 at $2.6 trillion with
• US ETF* AUM ended 2023 at $2.6 trillion with
$103 billion of net inflows, led by net inflows into fixed
$103 billion of net inflows, led by net inflows into fixed
income and core equity ETFs and partially offset by
outflows from precision exposure ETFs.
income and core equity ETFs and partially offset by
outflows from precision exposure ETFs.
• International ETF* AUM ended 2023 at $945 billion
with $83 billion of net inflows, diversified across
• International ETF* AUM ended 2023 at $945 billion
product categories, and led by net inflows into fixed
with $83 billion of net inflows, diversified across
income, core equity and sustainable ETFs.
product categories, and led by net inflows into fixed
income, core equity and sustainable ETFs.
Regional ETF amounts based on jurisdiction of product, not underlying client.
Regional ETF amounts based on jurisdiction of product, not underlying client.
*
*
Ins t itutional
Ins t itutional
BlackRock serves institutional investors on six continents in sub-categories including: pensions, endowments and
foundations, official institutions, and financial institutions; institutional AUM is diversified across product and region.
BlackRock serves institutional investors on six continents in sub-categories including: pensions, endowments and
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.
Component changes in institutional long-term AUM for 2023 are presented below.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
5
5
(in millions)
(in millions)
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index:
Index:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Index subtotal
Index subtotal
Total
Total
(1)
Amounts include AUM attributable to the Kreos Transaction.
December 31,
2022
December 31,
2022
$ 168,734
$ 168,734
774,955
774,955
544,469
544,469
153,433
153,433
1,641,591
1,641,591
1,814,266
1,814,266
704,661
704,661
6,392
6,392
3,296
3,296
2,528,615
2,528,615
$ 4,170,206
$ 4,170,206
Net inflows
(outflows)
Net inflows
(outflows)
$ (13,301)
$ (13,301)
4,714
4,714
85,665
85,665
10,028
10,028
87,106
87,106
(82,222)
(82,222)
28,888
28,888
(1,896)
(1,896)
105
105
(55,125)
(55,125)
$ 31,981
$ 31,981
Acquisition(1)
Acquisition(1)
$
$
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
—
—
—
—
—
—
—
—
$ 2,177
$ 2,177
Market
change
Market
change
$ 29,088
$ 29,088
53,538
53,538
79,644
79,644
4,925
4,925
167,195
167,195
401,047
401,047
17,774
17,774
559
559
(138)
(138)
419,242
419,242
$ 586,437
$ 586,437
FX
impact
FX
impact
$ 2,167
$ 2,167
3,616
3,616
7,404
7,404
1,417
1,417
14,604
14,604
5,200
5,200
4,678
4,678
(110)
(110)
(11)
(11)
9,757
9,757
$ 24,361
$ 24,361
December 31,
2023
December 31,
2023
$ 186,688
$ 186,688
836,823
836,823
717,182
717,182
171,980
171,980
1,912,673
1,912,673
2,138,291
2,138,291
756,001
756,001
4,945
4,945
3,252
3,252
2,902,489
2,902,489
$ 4,815,162
$ 4,815,162
Amounts include AUM attributable to the Kreos Transaction.
(1)
Institutional active AUM ended 2023 at $1.9 trillion,
reflecting $87 billion of net inflows, driven by the funding
Institutional active AUM ended 2023 at $1.9 trillion,
of several significant outsourcing mandates and
reflecting $87 billion of net inflows, driven by the funding
continued growth in our LifePath® target-date and private
of several significant outsourcing mandates and
continued growth in our LifePath® target-date and private
markets platforms.
markets platforms.
Multi-asset net inflows of $86 billion reflected continued
growth from significant pension outsourcing mandates
Multi-asset net inflows of $86 billion reflected continued
and LifePath target-date offerings. Fixed income net
growth from significant pension outsourcing mandates
inflows of $5 billion similarly reflected the funding of
and LifePath target-date offerings. Fixed income net
insurance outsourcing mandates. Equity net outflows of
inflows of $5 billion similarly reflected the funding of
$13 billion were primarily from quantitative equity
insurance outsourcing mandates. Equity net outflows of
strategies.
$13 billion were primarily from quantitative equity
strategies.
Alternatives net inflows of $10 billion were led by
infrastructure, private credit and private equity. Excluding
Alternatives net inflows of $10 billion were led by
return of capital and investment of $7 billion, alternatives
infrastructure, private credit and private equity. Excluding
net inflows were $17 billion. At year-end, BlackRock had
return of capital and investment of $7 billion, alternatives
approximately $32 billion of non-fee paying, unfunded,
net inflows were $17 billion. At year-end, BlackRock had
uninvested commitments to deploy for institutional
approximately $32 billion of non-fee paying, unfunded,
clients, which is not included in AUM.
uninvested commitments to deploy for institutional
clients, which is not included in AUM.
Institutional active represented 21% of long-term AUM
and 19% of long-term base fees and securities lending
Institutional active represented 21% of long-term AUM
revenue for 2023.
and 19% of long-term base fees and securities lending
revenue for 2023.
Institutional index AUM totaled $2.9 trillion at
December 31, 2023, reflecting $55 billion of net outflows,
Institutional index AUM totaled $2.9 trillion at
driven by equities.
December 31, 2023, reflecting $55 billion of net outflows,
driven by equities.
Institutional index represented 31% of long-term AUM
and 7% of long-term base fees and securities lending
Institutional index represented 31% of long-term AUM
revenue for 2023.
and 7% of long-term base fees and securities lending
revenue for 2023.
The Company’s institutional clients consist of the
following:
The Company’s institutional clients consist of the
following:
• Pensions, Foundations and Endowments BlackRock
is among the world’s largest managers of pension
• Pensions, Foundations and Endowments BlackRock
is among the world’s largest managers of pension
plan assets with $3.0 trillion, or 63%, of long-term
institutional AUM managed for defined benefit,
plan assets with $3.0 trillion, or 63%, of long-term
defined contribution and other pension plans for
institutional AUM managed for defined benefit,
corporations, governments and unions at
defined contribution and other pension plans for
December 31, 2023. The market landscape continues
corporations, governments and unions at
to shift from defined benefit to defined contribution,
December 31, 2023. The market landscape continues
and our defined contribution channel represented
to shift from defined benefit to defined contribution,
$1.5 trillion of total pension AUM. BlackRock remains
and our defined contribution channel represented
well positioned for the on-going evolution of the
$1.5 trillion of total pension AUM. BlackRock remains
defined contribution market and demand for
well positioned for the on-going evolution of the
outcome-oriented investments. An additional
defined contribution market and demand for
$83 billion, or 2%, of long-term institutional AUM was
outcome-oriented investments. An additional
managed for other tax-exempt investors, including
$83 billion, or 2%, of long-term institutional AUM was
charities, foundations and endowments.
managed for other tax-exempt investors, including
charities, foundations and endowments.
• Official Institutions BlackRock managed $272 billion,
or 6%, of long-term institutional AUM for official
• Official Institutions BlackRock managed $272 billion,
institutions, including central banks, sovereign wealth
or 6%, of long-term institutional AUM for official
funds, supranationals, multilateral entities and
institutions, including central banks, sovereign wealth
government ministries and agencies at year-end
funds, supranationals, multilateral entities and
2023. These clients often require specialized
government ministries and agencies at year-end
investment advice, the use of customized
2023. These clients often require specialized
benchmarks and training support.
investment advice, the use of customized
benchmarks and training support.
• Financial and Other Institutions BlackRock is a top
• Financial and Other Institutions BlackRock is a top
independent manager of assets for insurance
companies, which accounted for $650 billion, or 13%,
independent manager of assets for insurance
of long-term institutional AUM at year-end 2023.
companies, which accounted for $650 billion, or 13%,
Assets managed for other taxable institutions,
of long-term institutional AUM at year-end 2023.
including corporations, banks and third-party fund
Assets managed for other taxable institutions,
sponsors for which the Company provides
including corporations, banks and third-party fund
sub-advisory services, totaled $773 billion, or 16%, of
sponsors for which the Company provides
long-term institutional AUM at year-end.
sub-advisory services, totaled $773 billion, or 16%, of
long-term institutional AUM at year-end.
6 BlackRock | 2023 Form 10-K
6 BlackRock | 2023 Form 10-K
CLIENT TYPE AND PRODUCT TYPE
CLIENT TYPE AND PRODUCT TYPE
Component changes in AUM by client type and product type for 2023 are presented below.
Component changes in AUM by client type and product type for 2023 are presented below.
Market
change
Market
change
December 31,
2022
December 31,
2022
Net inflows
(outflows)
Net inflows
(outflows)
Acquisition(1)
Acquisition(1)
(in millions)
(in millions)
Retail:
Retail:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Retail subtotal
ETFs:
Retail subtotal
ETFs:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
ETFs subtotal
Institutional:
ETFs subtotal
Institutional:
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index:
Index:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Index subtotal
Index subtotal
Institutional subtotal
Institutional subtotal
Long-term
Long-term
Cash management
Cash management
Total
Total
(1)
$ 370,612
$ 370,612
299,114
299,114
125,168
125,168
48,581
48,581
843,475
843,475
2,081,742
2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
2,909,610
2,909,610
168,734
168,734
774,955
774,955
544,469
544,469
153,433
153,433
1,641,591
1,641,591
1,814,266
1,814,266
704,661
704,661
6,392
6,392
3,296
3,296
2,528,615
2,528,615
4,170,206
4,170,206
7,923,291
7,923,291
671,194
671,194
$ 8,594,485
$ 8,594,485
$
$
2,810
2,810
(2,471)
(2,471)
(236)
(236)
(8,576)
(8,576)
(8,473)
(8,473)
81,223
81,223
111,956
111,956
(746)
(746)
(6,491)
(6,491)
185,942
185,942
(13,301)
(13,301)
4,714
4,714
85,665
85,665
10,028
10,028
87,106
87,106
(82,222)
(82,222)
28,888
28,888
(1,896)
(1,896)
105
105
(55,125)
(55,125)
31,981
31,981
209,450
209,450
79,245
79,245
$ 288,695
$ 288,695
$
$
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
—
—
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
$ 2,177
$ 2,177
$
$
58,248
58,248
11,821
11,821
14,022
14,022
1,286
1,286
85,377
85,377
362,885
362,885
24,544
24,544
949
949
4,626
4,626
393,004
393,004
29,088
29,088
53,538
53,538
79,644
79,644
4,925
4,925
167,195
167,195
401,047
401,047
17,774
17,774
559
559
(138)
(138)
419,242
419,242
586,437
586,437
1,064,818
1,064,818
8,732
8,732
$ 1,073,550
$ 1,073,550
FX
impact
FX
impact
$ 4,064
$ 4,064
4,335
4,335
583
583
336
336
9,318
9,318
6,781
6,781
3,810
3,810
62
62
90
90
10,743
10,743
2,167
2,167
3,616
3,616
7,404
7,404
1,417
1,417
14,604
14,604
5,200
5,200
4,678
4,678
(110)
(110)
(11)
(11)
9,757
9,757
24,361
24,361
44,422
44,422
5,666
5,666
$ 50,088
$ 50,088
December 31,
2023
December 31,
2023
$
$
435,734
435,734
312,799
312,799
139,537
139,537
41,627
41,627
929,697
929,697
2,532,631
2,532,631
898,403
898,403
9,140
9,140
59,125
59,125
3,499,299
3,499,299
186,688
186,688
836,823
836,823
717,182
717,182
171,980
171,980
1,912,673
1,912,673
2,138,291
2,138,291
756,001
756,001
4,945
4,945
3,252
3,252
2,902,489
2,902,489
4,815,162
4,815,162
9,244,158
9,244,158
764,837
764,837
$ 10,008,995
$ 10,008,995
Amounts include AUM attributable to the Kreos Transaction.
Amounts include AUM attributable to the Kreos Transaction.
(1)
Long-term product offerings include active and index
strategies. Our active strategies seek to earn attractive
Long-term product offerings include active and index
returns in excess of a market benchmark or performance
strategies. Our active strategies seek to earn attractive
hurdle while maintaining an appropriate risk profile and
returns in excess of a market benchmark or performance
leverage fundamental research and quantitative models to
hurdle while maintaining an appropriate risk profile and
drive portfolio construction. In contrast, index strategies
leverage fundamental research and quantitative models to
seek to closely track the returns of a corresponding index,
drive portfolio construction. In contrast, index strategies
generally by investing in substantially the same
seek to closely track the returns of a corresponding index,
underlying securities within the index or in a subset of
generally by investing in substantially the same
those securities selected to approximate a similar risk and
underlying securities within the index or in a subset of
return profile of the index. Index products include both our
those securities selected to approximate a similar risk and
non-ETF index products and ETFs.
return profile of the index. Index products include both our
non-ETF index products and ETFs.
Although many clients use both active and index
strategies, the application of these strategies may differ.
Although many clients use both active and index
For example, clients may use index products to gain
strategies, the application of these strategies may differ.
exposure to a market or asset class or may use a
For example, clients may use index products to gain
combination of index strategies to target active returns. In
exposure to a market or asset class or may use a
addition, institutional non-ETF index assignments tend to
combination of index strategies to target active returns. In
be very large (multi-billion dollars) and typically reflect low
addition, institutional non-ETF index assignments tend to
fee rates. Net flows in institutional index products
be very large (multi-billion dollars) and typically reflect low
generally have a small impact on BlackRock’s revenues
fee rates. Net flows in institutional index products
and earnings.
generally have a small impact on BlackRock’s revenues
and earnings.
Equity
Equity
Year-end 2023 equity AUM totaled $5.3 trillion, reflecting
net outflows of $11 billion. Net outflows included
Year-end 2023 equity AUM totaled $5.3 trillion, reflecting
$27 billion and $66 billion out of active and non-ETF
net outflows of $11 billion. Net outflows included
$27 billion and $66 billion out of active and non-ETF
index, respectively, partially offset by ETF net inflows of
$81 billion.
index, respectively, partially offset by ETF net inflows of
$81 billion.
BlackRock’s effective fee rates fluctuate due to changes in
AUM mix. Approximately half of BlackRock’s equity AUM is
BlackRock’s effective fee rates fluctuate due to changes in
tied to international market strategies, including emerging
AUM mix. Approximately half of BlackRock’s equity AUM is
markets, which tend to have higher fee rates than US
tied to international market strategies, including emerging
equity strategies. Accordingly, fluctuations in international
markets, which tend to have higher fee rates than US
equity markets, which may not consistently move in
equity strategies. Accordingly, fluctuations in international
tandem with US markets, have a greater impact on
equity markets, which may not consistently move in
BlackRock’s equity revenues and effective fee rate.
tandem with US markets, have a greater impact on
BlackRock’s equity revenues and effective fee rate.
Equity represented 58% of long-term AUM and 53% of
long-term base fees and securities lending revenue for
Equity represented 58% of long-term AUM and 53% of
2023.
long-term base fees and securities lending revenue for
2023.
Fixed Incom e
Fixed Incom e
Fixed income AUM ended 2023 at $2.8 trillion, reflecting
net inflows of $143 billion. Net inflows included
Fixed income AUM ended 2023 at $2.8 trillion, reflecting
$112 billion and $32 billion into ETFs and non-ETF index,
net inflows of $143 billion. Net inflows included
respectively, partially offset by $1 billion of net outflows
$112 billion and $32 billion into ETFs and non-ETF index,
from active. Fixed income ETF net inflows of $112 billion
respectively, partially offset by $1 billion of net outflows
reflected the benefit of our diverse product offering and
from active. Fixed income ETF net inflows of $112 billion
included strong flows into treasury, core and corporate
reflected the benefit of our diverse product offering and
credit ETFs.
included strong flows into treasury, core and corporate
credit ETFs.
Fixed income represented 30% of long-term AUM and
26% of long-term base fees and securities lending
Fixed income represented 30% of long-term AUM and
revenue for 2023.
26% of long-term base fees and securities lending
revenue for 2023.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
7
7
(in millions)
FX
impact
FX
impact
$ 1,926
$ 1,926
1,596
1,596
4,417
4,417
$ 7,939
$ 7,939
Market
change
Market
change
$ 67,091
$ 67,091
20,300
20,300
7,783
7,783
$ 95,174
$ 95,174
Net inflows
(outflows)
Net inflows
(outflows)
$ 49,279
$ 49,279
23,059
23,059
10,449
10,449
$ 82,787
$ 82,787
December 31,
2023
December 31,
2023
$ 489,136
$ 489,136
246,127
246,127
135,541
135,541
$ 870,804
$ 870,804
• Target date and target risk strategies generated net
• Target date and target risk strategies generated net
include a combination of long-only portfolios and
alternative investments as well as tactical asset allocation
include a combination of long-only portfolios and
overlays.
alternative investments as well as tactical asset allocation
overlays.
Multi-asset represented 9% of long-term AUM and 9% of
long-term base fees and securities lending revenue for
Multi-asset represented 9% of long-term AUM and 9% of
2023.
long-term base fees and securities lending revenue for
2023.
(in millions)
Target date/risk
Target date/risk
Asset allocation and balanced
Asset allocation and balanced
Fiduciary
Fiduciary
Total
Total
Multi-asset net inflows reflected ongoing institutional
demand for our solutions-based advice with $84 billion of
Multi-asset net inflows reflected ongoing institutional
net inflows coming from institutional clients, including the
demand for our solutions-based advice with $84 billion of
funding of several significant outsourcing mandates.
net inflows coming from institutional clients, including the
Defined contribution plans remained a significant driver of
funding of several significant outsourcing mandates.
flows and contributed $30 billion to institutional multi-
Defined contribution plans remained a significant driver of
asset net inflows in 2023, primarily into target date and
flows and contributed $30 billion to institutional multi-
target risk product offerings.
asset net inflows in 2023, primarily into target date and
target risk product offerings.
The Company’s multi-asset strategies include the
following:
The Company’s multi-asset strategies include the
following:
Multi-As s et
Multi-As s et
BlackRock manages a variety of multi-asset funds and
bespoke mandates for a diversified client base that
BlackRock manages a variety of multi-asset funds and
leverages our broad investment expertise in global
bespoke mandates for a diversified client base that
equities, bonds, and alternatives, and our extensive risk
leverages our broad investment expertise in global
management capabilities. Investment solutions may
equities, bonds, and alternatives, and our extensive risk
management capabilities. Investment solutions may
Component changes in multi-asset AUM for 2023 are presented below.
Component changes in multi-asset AUM for 2023 are presented below.
December 31,
2022
December 31,
2022
$ 370,840
$ 370,840
201,172
201,172
112,892
112,892
$ 684,904
$ 684,904
markets and developing a holistic approach to address
client needs in alternatives investing. Our alternatives
markets and developing a holistic approach to address
products fall into three main categories — (1) illiquid
client needs in alternatives investing. Our alternatives
alternatives, (2) liquid alternatives, and (3) currency and
products fall into three main categories — (1) illiquid
commodities. Illiquid alternatives include offerings in
alternatives, (2) liquid alternatives, and (3) currency and
infrastructure, opportunistic and credit, private equity, real
commodities. Illiquid alternatives include offerings in
estate and alternative solutions. Liquid alternatives
infrastructure, opportunistic and credit, private equity, real
include offerings in direct hedge funds and hedge fund
estate and alternative solutions. Liquid alternatives
solutions (funds of funds).
include offerings in direct hedge funds and hedge fund
solutions (funds of funds).
In 2023, liquid and illiquid alternatives generated a
combined $2 billion of net inflows, or $10 billion excluding
In 2023, liquid and illiquid alternatives generated a
return of capital / return on investment of $8 billion. The
combined $2 billion of net inflows, or $10 billion excluding
largest contributors to return of capital / return on
return of capital / return on investment of $8 billion. The
investment were opportunistic and credit strategies,
largest contributors to return of capital / return on
infrastructure and private equity solutions. Net inflows
investment were opportunistic and credit strategies,
were driven by infrastructure, opportunistic and credit
infrastructure and private equity solutions. Net inflows
strategies and private equity. At year-end, BlackRock had
were driven by infrastructure, opportunistic and credit
approximately $32 billion of non-fee paying, unfunded,
strategies and private equity. At year-end, BlackRock had
uninvested commitments, which are expected to be
approximately $32 billion of non-fee paying, unfunded,
deployed in future years; these commitments are not
uninvested commitments, which are expected to be
included in AUM or flows until they are fee-paying.
deployed in future years; these commitments are not
Currency and commodities saw $7 billion of net outflows,
included in AUM or flows until they are fee-paying.
primarily from commodities ETFs.
Currency and commodities saw $7 billion of net outflows,
primarily from commodities ETFs.
BlackRock believes that as alternatives become more
conventional and investors adapt their asset allocation
BlackRock believes that as alternatives become more
strategies, investors will further increase their use of
conventional and investors adapt their asset allocation
alternative investments to complement core holdings.
strategies, investors will further increase their use of
BlackRock’s highly diversified alternatives franchise is well
alternative investments to complement core holdings.
positioned to continue to meet growing demand from both
BlackRock’s highly diversified alternatives franchise is well
institutional and retail investors.
positioned to continue to meet growing demand from both
institutional and retail investors.
Alternatives represented 3% of long-term AUM and 12%
of long-term base fees and securities lending revenue for
Alternatives represented 3% of long-term AUM and 12%
2023.
of long-term base fees and securities lending revenue for
2023.
In the first quarter of 2024, BlackRock announced that it
had entered into an agreement to acquire Global
In the first quarter of 2024, BlackRock announced that it
Infrastructure Management LLC (referred to herein as
had entered into an agreement to acquire Global
Global Infrastructure Partners (“GIP”)), a leading
Infrastructure Management LLC (referred to herein as
independent infrastructure manager with over
Global Infrastructure Partners (“GIP”)), a leading
$100 billion in client AUM as of September 30, 2023. GIP
independent infrastructure manager with over
specializes in investing in, owning and operating assets
$100 billion in client AUM as of September 30, 2023. GIP
across the energy, transport, digital infrastructure and
specializes in investing in, owning and operating assets
water and waste management sectors. The transaction is
across the energy, transport, digital infrastructure and
expected to close in the third quarter of 2024, subject to
water and waste management sectors. The transaction is
customary regulatory approvals and other closing
expected to close in the third quarter of 2024, subject to
conditions.
customary regulatory approvals and other closing
conditions.
• Asset allocation and balanced strategies generated
$23 billion of net inflows. These strategies combine
• Asset allocation and balanced strategies generated
equity, fixed income and alternative components for
$23 billion of net inflows. These strategies combine
investors seeking a tailored solution relative to a
equity, fixed income and alternative components for
specific benchmark and within a risk budget. In
investors seeking a tailored solution relative to a
certain cases, these strategies seek to minimize
specific benchmark and within a risk budget. In
downside risk through diversification, derivatives
certain cases, these strategies seek to minimize
strategies and tactical asset allocation decisions.
downside risk through diversification, derivatives
Flows in this category included pension outsourcing
strategies and tactical asset allocation decisions.
mandates that funded during the year. Flagship
Flows in this category included pension outsourcing
products also include our Global Allocation and Multi-
mandates that funded during the year. Flagship
Asset Income fund families.
products also include our Global Allocation and Multi-
Asset Income fund families.
• Fiduciary management services are complex
mandates in which pension plan sponsors or
• Fiduciary management services are complex
endowments and foundations retain BlackRock to
mandates in which pension plan sponsors or
assume responsibility for some or all aspects of
endowments and foundations retain BlackRock to
investment management, often with BlackRock acting
assume responsibility for some or all aspects of
as outsourced chief investment officer. These
investment management, often with BlackRock acting
customized services require strong partnership with
as outsourced chief investment officer. These
the clients’ investment staff and trustees in order to
customized services require strong partnership with
tailor investment strategies to meet client-specific
the clients’ investment staff and trustees in order to
risk budgets and return objectives.
tailor investment strategies to meet client-specific
risk budgets and return objectives.
inflows of $49 billion. Institutional investors
represented 90% of target date and target risk AUM,
inflows of $49 billion. Institutional investors
with defined contribution plans representing 81% of
represented 90% of target date and target risk AUM,
AUM. Flows were driven by defined contribution
with defined contribution plans representing 81% of
investments in our LifePath offerings. LifePath
AUM. Flows were driven by defined contribution
products utilize a proprietary active asset allocation
investments in our LifePath offerings. LifePath
model that seeks to balance risk and return over an
products utilize a proprietary active asset allocation
investment horizon based on the investor’s expected
model that seeks to balance risk and return over an
retirement timing. Underlying investments are
investment horizon based on the investor’s expected
primarily index products.
retirement timing. Underlying investments are
primarily index products.
Alternatives
Alternatives
BlackRock alternatives focus on sourcing and managing
high-alpha investments with lower correlation to public
BlackRock alternatives focus on sourcing and managing
high-alpha investments with lower correlation to public
8 BlackRock | 2023 Form 10-K
8 BlackRock | 2023 Form 10-K
Component changes in alternatives AUM for 2023 are presented in the table below.
Component changes in alternatives AUM for 2023 are presented in the table below.
(in millions)
(in millions)
Illiquid alternatives:
Illiquid alternatives:
Alternative solutions
Alternative solutions
Private equity and opportunistic:
Private equity and opportunistic:
strategies
strategies
Private equity solutions
Private equity solutions
Opportunistic and credit
Opportunistic and credit
Long Term Private Capital
Long Term Private Capital
Private equity and opportunistic
subtotal
Private equity and opportunistic
subtotal
Real assets:
Real assets:
Real estate
Real estate
Infrastructure
Infrastructure
Real assets subtotal
Real assets subtotal
Total illiquid alternatives
Total illiquid alternatives
Liquid alternatives:
Liquid alternatives:
Direct hedge fund strategies
Direct hedge fund strategies
Hedge fund solutions
Hedge fund solutions
Total Liquid alternatives
Total Liquid alternatives
Currency and commodities
Currency and commodities
Total
Total
(1)
December 31,
2022
December 31,
2022
Net inflows
(outflows)
Net inflows
(outflows)
Acquisition(1)
Acquisition(1)
Market
change
Market
change
FX
impact
FX
impact
December 31,
2023
December 31,
2023
Memo:
return of
Memo:
capital/
return of
investment(2)
capital/
investment(2)
Memo:
committed
Memo:
capital(3)
committed
capital(3)
$
$
6,645
6,645
$
$
21,500
21,500
24,842
24,842
6,620
6,620
52,962
52,962
28,596
28,596
29,548
29,548
58,144
58,144
117,751
117,751
504
504
3,443
3,443
3,887
3,887
4
4
7,334
7,334
43
43
5,784
5,784
5,827
5,827
13,665
13,665
$
$
—
—
$
$
63 $ 102
63 $ 102
$
$
7,314
7,314
$ (565)
$ (565)
$ 5,599
$ 5,599
—
—
2,177
2,177
—
—
2,177
2,177
—
—
—
—
—
—
2,177
2,177
(126)
(126)
(125)
(125)
3,702
3,702
3,451
3,451
(1,523)
(1,523)
(106)
(106)
(1,629)
(1,629)
1,885
1,885
65
65
347
347
—
—
412
412
442
442
475
475
917
917
1,431
1,431
24,882
24,882
31,128
31,128
10,326
10,326
66,336
66,336
27,558
27,558
35,701
35,701
63,259
63,259
136,909
136,909
(1,829)
(1,829)
(2,826)
(2,826)
—
—
(4,655)
(4,655)
(515)
(515)
(1,961)
(1,961)
(2,476)
(2,476)
(7,696)
(7,696)
6,913
6,913
3,075
3,075
—
—
9,988
9,988
378
378
14,983
14,983
15,361
15,361
30,948
30,948
51,972
51,972
28,682
28,682
80,654
80,654
67,805
67,805
$ 266,210
$ 266,210
(9,224)
(9,224)
(2,146)
(2,146)
(11,370)
(11,370)
(7,229)
(7,229)
$ (4,934)
$ (4,934)
—
—
—
—
—
—
—
—
$ 2,177
$ 2,177
3,200
3,200
1,348
1,348
4,548
4,548
4,266
4,266
370
370
31
31
401
401
—
—
$ 10,699 $ 1,832
$ 10,699 $ 1,832
46,318
46,318
27,915
27,915
74,233
74,233
64,842
64,842
$ 275,984
$ 275,984
—
—
(324)
(324)
(324)
(324)
—
—
$ (8,020)
$ (8,020)
—
—
765
765
765
765
—
—
$ 31,713
$ 31,713
Amounts include AUM attributable to the Kreos Transaction.
(1)
(2) Return of capital/investment is included in outflows.
Amounts include AUM attributable to the Kreos Transaction.
(2) Return of capital/investment is included in outflows.
(3)
(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
be counted in AUM and flows as the capital is deployed over time.
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
be counted in AUM and flows as the capital is deployed over time.
Illiquid Alternatives
Illiquid Alternatives
The Company’s illiquid alternatives strategies include the
following:
The Company’s illiquid alternatives strategies include the
following:
• Real Assets which includes infrastructure and real
estate, totaled $63 billion in AUM, reflecting net
• Real Assets which includes infrastructure and real
inflows of $6 billion, led by infrastructure.
estate, totaled $63 billion in AUM, reflecting net
inflows of $6 billion, led by infrastructure.
• Private Equity and Opportunistic included AUM of
$31 billion in opportunistic and credit offerings,
• Private Equity and Opportunistic included AUM of
$25 billion in private equity solutions, and $10 billion
$31 billion in opportunistic and credit offerings,
in Long Term Private Capital (“LTPC”). Net inflows of
$25 billion in private equity solutions, and $10 billion
$7 billion into private equity and opportunistic
in Long Term Private Capital (“LTPC”). Net inflows of
strategies included $4 billion of net inflows into
$7 billion into private equity and opportunistic
opportunistic and credit offerings and $3 billion of net
strategies included $4 billion of net inflows into
inflows into private equity solutions.
opportunistic and credit offerings and $3 billion of net
inflows into private equity solutions.
• Alternative Solutions represents highly customized
portfolios of alternative investments. Alternative
• Alternative Solutions represents highly customized
solutions portfolios had $7 billion in AUM at
portfolios of alternative investments. Alternative
December 31, 2023, reflecting $0.5 billion of net
solutions portfolios had $7 billion in AUM at
inflows.
December 31, 2023, reflecting $0.5 billion of net
inflows.
Liquid Alternatives
Liquid Alternatives
The Company’s liquid alternatives products’ net outflows
of $11 billion reflected redemptions from direct hedge
The Company’s liquid alternatives products’ net outflows
of $11 billion reflected redemptions from direct hedge
funds, mainly from retail event driven and multi-strategy
credit funds. Direct hedge fund strategies includes a
funds, mainly from retail event driven and multi-strategy
variety of single-and multi-strategy offerings.
credit funds. Direct hedge fund strategies includes a
variety of single-and multi-strategy offerings.
In addition, the Company manages $84 billion in liquid
credit strategies which is included in active fixed income.
In addition, the Company manages $84 billion in liquid
credit strategies which is included in active fixed income.
Currency and Commodities
Currency and Commodities
The Company’s currency and commodities products
include a range of active and index products.
The Company’s currency and commodities products
include a range of active and index products.
Currency and commodities products had $7 billion of net
outflows, primarily from ETFs. Commodities ETFs
Currency and commodities products had $7 billion of net
represented $59 billion of AUM and are not eligible for
outflows, primarily from ETFs. Commodities ETFs
performance fees.
represented $59 billion of AUM and are not eligible for
performance fees.
Cas h Managem ent
Cas h Managem ent
Cash management AUM totaled a record $765 billion at
December 31, 2023, reflecting $79 billion of net inflows.
Cash management AUM totaled a record $765 billion at
Cash management products include taxable and
December 31, 2023, reflecting $79 billion of net inflows.
tax-exempt money market funds, short-term investment
Cash management products include taxable and
funds and customized separate accounts. Portfolios are
tax-exempt money market funds, short-term investment
denominated in US dollars, Canadian dollars, Australian
funds and customized separate accounts. Portfolios are
dollars, euros, Swiss francs, New Zealand dollars or British
denominated in US dollars, Canadian dollars, Australian
pounds.
dollars, euros, Swiss francs, New Zealand dollars or British
pounds.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
9
9
CLIENT REGION
CLIENT REGION
Our footprints in the Americas, EMEA and Asia-Pacific regions reflect strong relationships with intermediaries and an
established ability to deliver our global investment expertise in funds and other products tailored to local regulations and
Our footprints in the Americas, EMEA and Asia-Pacific regions reflect strong relationships with intermediaries and an
requirements.
established ability to deliver our global investment expertise in funds and other products tailored to local regulations and
requirements.
AUM by product type and client region at December 31, 2023 is presented below.
AUM by product type and client region at December 31, 2023 is presented below.
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Long-term
Long-term
Cash management
Cash management
Total
Total
Component changes in AUM by client region for 2023 are presented below.
Component changes in AUM by client region for 2023 are presented below.
Americas
Americas
$ 3,660,686
$ 3,660,686
1,740,218
1,740,218
627,582
627,582
148,944
148,944
6,177,430
6,177,430
550,880
550,880
$ 6,728,310
$ 6,728,310
EMEA
EMEA
$ 1,227,394
$ 1,227,394
755,240
755,240
197,128
197,128
95,622
95,622
2,275,384
2,275,384
203,426
203,426
$ 2,478,810
$ 2,478,810
Asia-Pacific
Asia-Pacific
$ 405,264
$ 405,264
308,568
308,568
46,094
46,094
31,418
31,418
791,344
791,344
10,531
10,531
$ 801,875
$ 801,875
Total
Total
$ 5,293,344
$ 5,293,344
2,804,026
2,804,026
870,804
870,804
275,984
275,984
9,244,158
9,244,158
764,837
764,837
$ 10,008,995
$ 10,008,995
(in millions)
(in millions)
Americas
Americas
EMEA
EMEA
Asia-Pacific
Asia-Pacific
Total
Total
(1)
Amounts include AUM attributable to the Kreos Transaction.
December 31,
2022
December 31,
2022
$ 5,782,223
$ 5,782,223
2,137,442
2,137,442
674,820
674,820
$ 8,594,485
$ 8,594,485
Net inflows
(outflows)
Net inflows
(outflows)
$ 177,249
$ 177,249
65,171
65,171
46,275
46,275
$ 288,695
$ 288,695
Acquisition(1)
Acquisition(1)
$
$
—
—
2,177
2,177
—
—
$ 2,177
$ 2,177
Market change
Market change
$ 757,788
$ 757,788
210,475
210,475
105,287
105,287
$ 1,073,550
$ 1,073,550
FX impact
FX impact
$ 11,050
$ 11,050
63,545
63,545
(24,507)
(24,507)
$ 50,088
$ 50,088
December 31,
2023
December 31,
2023
$ 6,728,310
$ 6,728,310
2,478,810
2,478,810
801,875
801,875
$ 10,008,995
$ 10,008,995
Amounts include AUM attributable to the Kreos Transaction.
(1)
Americas
Americas
Americas net inflows of $177 billion were driven by net
inflows into fixed income, multi-asset, cash, and equity of
Americas net inflows of $177 billion were driven by net
$83 billion, $60 billion, $39 billion, and $4 billion,
inflows into fixed income, multi-asset, cash, and equity of
respectively. These were partially offset by alternative net
$83 billion, $60 billion, $39 billion, and $4 billion,
outflows of $9 billion, primarily from US mutual funds.
respectively. These were partially offset by alternative net
During the year, BlackRock served clients through offices
outflows of $9 billion, primarily from US mutual funds.
across the US as well as in Canada, Mexico, Brazil,
During the year, BlackRock served clients through offices
Colombia, Chile and the Dominican Republic.
across the US as well as in Canada, Mexico, Brazil,
Colombia, Chile and the Dominican Republic.
The Americas represented 67% of total AUM and 65% of
total base fees and securities lending revenue for 2023.
The Americas represented 67% of total AUM and 65% of
total base fees and securities lending revenue for 2023.
EMEA
EMEA
EMEA net inflows of $65 billion were driven by cash, fixed
income, multi-asset, and alternatives net inflows of
EMEA net inflows of $65 billion were driven by cash, fixed
$38 billion, $27 billion, $23 billion, and $3 billion,
income, multi-asset, and alternatives net inflows of
respectively. These were partially offset by equity net
$38 billion, $27 billion, $23 billion, and $3 billion,
outflows of $26 billion, which included a $19 billion single
respectively. These were partially offset by equity net
institutional client redemption from a low-fee index
outflows of $26 billion, which included a $19 billion single
mandate in the third quarter. Offerings include fund
institutional client redemption from a low-fee index
families in the United Kingdom (“UK”), the Netherlands,
mandate in the third quarter. Offerings include fund
Luxembourg and Dublin and ETFs listed on stock
families in the United Kingdom (“UK”), the Netherlands,
exchanges throughout Europe, as well as separate
Luxembourg and Dublin and ETFs listed on stock
accounts and pooled investment products.
exchanges throughout Europe, as well as separate
accounts and pooled investment products.
EMEA represented 25% of total AUM and 29% of total
base fees and securities lending revenue for 2023.
EMEA represented 25% of total AUM and 29% of total
base fees and securities lending revenue for 2023.
As ia-Pacific
As ia-Pacific
Asia-Pacific net inflows of $46 billion were primarily due to
fixed income and equity net inflows of $34 billion and
Asia-Pacific net inflows of $46 billion were primarily due to
$11 billion, respectively. Clients in the Asia-Pacific region
fixed income and equity net inflows of $34 billion and
are served through offices in Japan, Australia, Hong Kong,
$11 billion, respectively. Clients in the Asia-Pacific region
Singapore, Taiwan, Korea, China, and India.
are served through offices in Japan, Australia, Hong Kong,
Singapore, Taiwan, Korea, China, and India.
Asia-Pacific represented 8% of total AUM and 6% of total
base fees and securities lending revenue for 2023.
Asia-Pacific represented 8% of total AUM and 6% of total
base fees and securities lending revenue for 2023.
INVESTMENT PERFORMANCE
INVESTMENT PERFORMANCE
Investment performance across active and index products
as of December 31, 2023 was as follows:
Investment performance across active and index products
as of December 31, 2023 was as follows:
One-year
period
One-year
period
Three-year
period
Three-year
period
Five-year
period
Five-year
period
Fixed income:
Fixed income:
Actively managed AUM above
benchmark or peer median
Actively managed AUM above
benchmark or peer median
Taxable
Taxable
Tax-exempt
Tax-exempt
applicable tolerance
applicable tolerance
Index AUM within or above
Index AUM within or above
Equity:
Equity:
Actively managed AUM above
benchmark or peer median
Actively managed AUM above
benchmark or peer median
Fundamental
Fundamental
Systematic
Systematic
Index AUM within or above
Index AUM within or above
applicable tolerance
applicable tolerance
84%
84%
75%
75%
98%
98%
69%
69%
87%
87%
96%
96%
78%
78%
61%
61%
97%
97%
47%
47%
83%
83%
99%
99%
92%
92%
45%
45%
97%
97%
87%
87%
89%
89%
100%
100%
Performance Notes
Performance Notes
Past performance is not indicative of future results. Except
as specified, the performance information shown is as of
Past performance is not indicative of future results. Except
December 31, 2023 and is based on preliminary data
as specified, the performance information shown is as of
available at that time. The performance data shown
December 31, 2023 and is based on preliminary data
reflects information for all actively and passively managed
available at that time. The performance data shown
equity and fixed income accounts, including US registered
reflects information for all actively and passively managed
investment companies, European-domiciled retail funds
equity and fixed income accounts, including US registered
and separate accounts for which performance data is
investment companies, European-domiciled retail funds
available, including performance data for high net worth
and separate accounts for which performance data is
accounts available as of November 30, 2023. The
available, including performance data for high net worth
performance data does not include accounts terminated
accounts available as of November 30, 2023. The
prior to December 31, 2023 and accounts for which data
performance data does not include accounts terminated
has not yet been verified. If such accounts had been
prior to December 31, 2023 and accounts for which data
included, the performance data provided may have
has not yet been verified. If such accounts had been
substantially differed from that shown.
included, the performance data provided may have
substantially differed from that shown.
10 BlackRock | 2023 Form 10-K
10 BlackRock | 2023 Form 10-K
Performance comparisons shown are gross-of-fees for
institutional and high net worth separate accounts, and
Performance comparisons shown are gross-of-fees for
net-of-fees for retail funds. The performance tracking
institutional and high net worth separate accounts, and
shown for index accounts is based on gross-of-fees
net-of-fees for retail funds. The performance tracking
performance and includes all institutional accounts and
shown for index accounts is based on gross-of-fees
all iShares funds globally using an index strategy. AUM
performance and includes all institutional accounts and
information is based on AUM available as of December 31,
all iShares funds globally using an index strategy. AUM
2023 for each account or fund in the asset class shown
information is based on AUM available as of December 31,
without adjustment for overlapping management of the
2023 for each account or fund in the asset class shown
same account or fund. Fund performance reflects the
without adjustment for overlapping management of the
reinvestment of dividends and distributions.
same account or fund. Fund performance reflects the
reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks
or peer median information, as selected by BlackRock. Peer
Performance shown is derived from applicable benchmarks
medians are based in part on data either from Lipper, Inc. or
or peer median information, as selected by BlackRock. Peer
Morningstar, Inc. for each included product.
medians are based in part on data either from Lipper, Inc. or
Morningstar, Inc. for each included product.
TECHNOLOGY SERVICES
TECHNOLOGY SERVICES
BlackRock offers investment management technology
systems, risk management services, and wealth
BlackRock offers investment management technology
management and digital distribution tools on a fee basis.
systems, risk management services, and wealth
Aladdin is our proprietary technology platform, providing
management and digital distribution tools on a fee basis.
an end-to-end, SaaS solution for investment and risk
Aladdin is our proprietary technology platform, providing
management for both BlackRock and a growing number of
an end-to-end, SaaS solution for investment and risk
institutional and retail investors around the world.
management for both BlackRock and a growing number of
BlackRock offers risk reporting capabilities via Aladdin
institutional and retail investors around the world.
Risk, as well as investment accounting capabilities. Aladdin
BlackRock offers risk reporting capabilities via Aladdin
Provider is a tool used by asset servicers, connecting them
Risk, as well as investment accounting capabilities. Aladdin
to the platform used by asset managers and owners to add
Provider is a tool used by asset servicers, connecting them
operational efficiency. In 2019, BlackRock acquired eFront,
to the platform used by asset managers and owners to add
a leading end-to-end alternative investment management
operational efficiency. In 2019, BlackRock acquired eFront,
software and solutions provider to enable clients to
a leading end-to-end alternative investment management
manage portfolios and risk across public and private asset
software and solutions provider to enable clients to
classes on a single platform. eFront is offered to clients
manage portfolios and risk across public and private asset
both as a standalone offering and as part of an integrated
classes on a single platform. eFront is offered to clients
“Whole Portfolio View” solution that provides transparency
both as a standalone offering and as part of an integrated
across clients’ public and private assets. Through our
“Whole Portfolio View” solution that provides transparency
Cachematrix platform, BlackRock is also a leading provider
across clients’ public and private assets. Through our
of financial technology which simplifies the cash
Cachematrix platform, BlackRock is also a leading provider
management process for banks and their corporate clients
of financial technology which simplifies the cash
in a streamlined, open-architecture platform.
management process for banks and their corporate clients
in a streamlined, open-architecture platform.
BlackRock offers a number of wealth management
technology tools offering personalized digital advice,
BlackRock offers a number of wealth management
portfolio construction capabilities and risk analytics for
technology tools offering personalized digital advice,
retail distributors. These tools include Aladdin Wealth,
portfolio construction capabilities and risk analytics for
which provides wealth management firms and their
retail distributors. These tools include Aladdin Wealth,
financial professionals with institutional-quality business
which provides wealth management firms and their
management, portfolio construction, modeling and risk
financial professionals with institutional-quality business
analytics capabilities.
management, portfolio construction, modeling and risk
analytics capabilities.
At year-end, BlackRock technology services clients
included banks, insurance companies, official institutions,
At year-end, BlackRock technology services clients
pension funds, asset managers, asset servicers, retail
included banks, insurance companies, official institutions,
distributors and other investors across North America,
pension funds, asset managers, asset servicers, retail
South America, Europe, the Middle East, Asia, Africa and
distributors and other investors across North America,
Australia.
South America, Europe, the Middle East, Asia, Africa and
Australia.
Technology services revenue of $1.5 billion was up 9%
year-over-year, and annual contract value (“ACV”)
Technology services revenue of $1.5 billion was up 9%
increased 10% year-over-year. ACV growth was driven by
year-over-year, and annual contract value (“ACV”)
strong net sales of Aladdin in 2023, with over half of new
increased 10% year-over-year. ACV growth was driven by
client mandates spanning multiple Aladdin products.
strong net sales of Aladdin in 2023, with over half of new
Aladdin assignments are typically long-term contracts
client mandates spanning multiple Aladdin products.
that provide recurring revenue. At the end of any period,
Aladdin assignments are typically long-term contracts
BlackRock generally has recurring revenue contracts in
that provide recurring revenue. At the end of any period,
place for a large portion of total annual revenue.
BlackRock generally has recurring revenue contracts in
place for a large portion of total annual revenue.
BlackRock measures the fees related to these agreements
and refers to this as ACV. For further information on ACV,
BlackRock measures the fees related to these agreements
see Item 7. Management’s Discussion and Analysis of
and refers to this as ACV. For further information on ACV,
Financial Condition and Results of Operations — Non-GAAP
see Item 7. Management’s Discussion and Analysis of
Financial Measures.
Financial Condition and Results of Operations — Non-GAAP
Financial Measures.
Aladdin, which represented the majority of technology
services revenue for the year, continues to benefit from
Aladdin, which represented the majority of technology
trends favoring global platform consolidation and multi-
services revenue for the year, continues to benefit from
asset risk solutions across public and private markets.
trends favoring global platform consolidation and multi-
Approximately 25% of Aladdin’s revenue was
asset risk solutions across public and private markets.
denominated in non-US currencies. In addition, while
Approximately 25% of Aladdin’s revenue was
Aladdin is a multi-asset system, the majority of positions
denominated in non-US currencies. In addition, while
managed on the platform are fixed income. 2023
Aladdin is a multi-asset system, the majority of positions
technology services revenue growth reflected headwinds
managed on the platform are fixed income. 2023
associated with 2022 bond market declines on Aladdin’s
technology services revenue growth reflected headwinds
fixed income platform assets.
associated with 2022 bond market declines on Aladdin’s
fixed income platform assets.
BlackRock is focused on enhancing Aladdin, with
continued investment into areas such as whole portfolio,
BlackRock is focused on enhancing Aladdin, with
private markets, wealth and sustainable investing
continued investment into areas such as whole portfolio,
solutions. BlackRock continues to evolve and enable
private markets, wealth and sustainable investing
clients to further simplify their operating infrastructure
solutions. BlackRock continues to evolve and enable
with Aladdin. Clients increasingly want to tailor how they
clients to further simplify their operating infrastructure
use Aladdin to meet their specific needs, and BlackRock is
with Aladdin. Clients increasingly want to tailor how they
providing them with choice and flexibility. BlackRock is
use Aladdin to meet their specific needs, and BlackRock is
empowering clients with data and opening Aladdin by
providing them with choice and flexibility. BlackRock is
creating connectivity with ecosystem providers and third-
empowering clients with data and opening Aladdin by
party technology solutions, which include asset servicers,
creating connectivity with ecosystem providers and third-
cloud providers, digital asset platforms, trading systems
party technology solutions, which include asset servicers,
and others. This connectivity helps clients work in their
cloud providers, digital asset platforms, trading systems
Aladdin environments with a more customized and
and others. This connectivity helps clients work in their
seamless end-to-end experience.
Aladdin environments with a more customized and
seamless end-to-end experience.
In addition, BlackRock has made minority investments in
financial technology and digital distribution providers,
In addition, BlackRock has made minority investments in
data and whole portfolio capabilities including Upvest,
financial technology and digital distribution providers,
Avaloq, Human Interest, Circle, SpiderRock Advisors,
data and whole portfolio capabilities including Upvest,
Clarity AI, Envestnet, Acorns, Scalable Capital and iCapital.
Avaloq, Human Interest, Circle, SpiderRock Advisors,
BlackRock records its share of income related to minority
Clarity AI, Envestnet, Acorns, Scalable Capital and iCapital.
investments accounted for under the equity method in
BlackRock records its share of income related to minority
other revenue and records gains and losses related to
investments accounted for under the equity method in
changes in value of other minority investments in
other revenue and records gains and losses related to
nonoperating income (expense).
changes in value of other minority investments in
nonoperating income (expense).
SECURITIES LENDING
SECURITIES LENDING
Securities lending is managed by a dedicated team,
supported by quantitative analysis, proprietary technology
Securities lending is managed by a dedicated team,
and disciplined risk management. BlackRock receives both
supported by quantitative analysis, proprietary technology
cash (primarily for US domiciled portfolios) and noncash
and disciplined risk management. BlackRock receives both
collateral under securities lending arrangements. The cash
cash (primarily for US domiciled portfolios) and noncash
management team invests the cash received as collateral
collateral under securities lending arrangements. The cash
for securities on loan in other portfolios. Fees for securities
management team invests the cash received as collateral
lending for US domiciled portfolios can be structured as a
for securities on loan in other portfolios. Fees for securities
share of earnings, or as a management fee based on a
lending for US domiciled portfolios can be structured as a
percentage of the value of the cash collateral or both. The
share of earnings, or as a management fee based on a
value of the securities on loan and the revenue earned are
percentage of the value of the cash collateral or both. The
captured in the corresponding asset class being managed.
value of the securities on loan and the revenue earned are
The value of the collateral is not included in AUM.
captured in the corresponding asset class being managed.
The value of the collateral is not included in AUM.
Outstanding loan balances ended the year at
approximately $359 billion, up from $355 billion at
Outstanding loan balances ended the year at
year-end 2022. More demand for general collateral
approximately $359 billion, up from $355 billion at
securities resulted in slightly higher balances year over
year-end 2022. More demand for general collateral
year. Intrinsic lending spreads increased and cash
securities resulted in slightly higher balances year over
reinvestment spreads remained flat as cash yields were
year. Intrinsic lending spreads increased and cash
stable year over year.
reinvestment spreads remained flat as cash yields were
stable year over year.
BlackRock employs a conservative investment style for
cash and securities lending collateral that emphasizes
BlackRock employs a conservative investment style for
quality, liquidity, and interest rate risk management.
cash and securities lending collateral that emphasizes
Disciplined risk management, including a rigorous credit
quality, liquidity, and interest rate risk management.
surveillance process, is an integral part of the investment
Disciplined risk management, including a rigorous credit
process. BlackRock’s Cash Management Credit
surveillance process, is an integral part of the investment
Committee has established risk limits, such as aggregate
process. BlackRock’s Cash Management Credit
issuer exposure limits and maturity limits, across many of
Committee has established risk limits, such as aggregate
the products BlackRock manages, including over all of its
issuer exposure limits and maturity limits, across many of
cash management products. In the ordinary course of our
the products BlackRock manages, including over all of its
business, there may be instances when a portfolio may
cash management products. In the ordinary course of our
exceed an internal risk limit or when an internal risk limit
business, there may be instances when a portfolio may
may be changed. No such instances, individually or in the
exceed an internal risk limit or when an internal risk limit
aggregate, have been material to the Company. To the
may be changed. No such instances, individually or in the
extent that daily evaluation and reporting of the profile of
aggregate, have been material to the Company. To the
the portfolios identify that a limit has been exceeded, the
extent that daily evaluation and reporting of the profile of
relevant portfolio will be adjusted. To the extent a portfolio
the portfolios identify that a limit has been exceeded, the
manager would like to obtain a temporary waiver of a risk
relevant portfolio will be adjusted. To the extent a portfolio
limit, the portfolio manager must obtain approval from the
manager would like to obtain a temporary waiver of a risk
credit research team, which is independent from the cash
limit, the portfolio manager must obtain approval from the
management portfolio managers. While a risk limit may be
credit research team, which is independent from the cash
waived temporarily, such waivers are infrequent.
management portfolio managers. While a risk limit may be
waived temporarily, such waivers are infrequent.
RISK AND QUANTITATIVE A NALYSIS
RISK AND QUANTITATIVE A NALYSIS
Across all asset classes, in addition to the efforts of the
portfolio management teams, the Risk and Quantitative
Across all asset classes, in addition to the efforts of the
Analysis (“RQA”) group at BlackRock draws on extensive
portfolio management teams, the Risk and Quantitative
analytical systems and proprietary and third-party data to
Analysis (“RQA”) group at BlackRock draws on extensive
identify, measure and manage a wide range of risks. RQA
analytical systems and proprietary and third-party data to
provides risk management advice and independent risk
identify, measure and manage a wide range of risks. RQA
oversight of the investment management processes,
provides risk management advice and independent risk
identifies and helps manage counterparty and enterprise
oversight of the investment management processes,
risks, coordinates standards for firm wide investment
identifies and helps manage counterparty and enterprise
performance measurement and determines risk
risks, coordinates standards for firm wide investment
management-related analytical and information
performance measurement and determines risk
requirements. Where appropriate, RQA will work with
management-related analytical and information
portfolio managers and developers to facilitate the
requirements. Where appropriate, RQA will work with
development or improvement of risk models and analytics.
portfolio managers and developers to facilitate the
development or improvement of risk models and analytics.
COMPETITION
COMPETITION
BlackRock competes with investment management firms,
mutual fund complexes, insurance companies, banks,
BlackRock competes with investment management firms,
brokerage firms, financial technology providers and other
mutual fund complexes, insurance companies, banks,
financial institutions that offer products that are similar to,
brokerage firms, financial technology providers and other
or alternatives to, those offered by BlackRock. In order to
financial institutions that offer products that are similar to,
grow its business, BlackRock must be able to compete
or alternatives to, those offered by BlackRock. In order to
effectively for AUM. Key competitive factors include
grow its business, BlackRock must be able to compete
investment performance track records, the efficient
effectively for AUM. Key competitive factors include
delivery of beta for index products, investment style and
investment performance track records, the efficient
discipline, price, client service and brand name recognition.
delivery of beta for index products, investment style and
Historically, the Company has competed principally on the
discipline, price, client service and brand name recognition.
basis of its long-term investment performance track
Historically, the Company has competed principally on the
record, its investment process, its risk management and
basis of its long-term investment performance track
analytic capabilities and the quality of its client service.
record, its investment process, its risk management and
analytic capabilities and the quality of its client service.
HUMAN CAPITAL
HUMAN CAPITAL
With approximately 19,800 employees in more than
30 countries, as of December 31, 2023, BlackRock
With approximately 19,800 employees in more than
provides a broad range of investment management and
30 countries, as of December 31, 2023, BlackRock
technology services to institutional and retail clients in
provides a broad range of investment management and
more than 100 countries across the globe. As an asset
technology services to institutional and retail clients in
manager, BlackRock’s long-term success depends on its
more than 100 countries across the globe. As an asset
people and how it manages its workforce.
manager, BlackRock’s long-term success depends on its
people and how it manages its workforce.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
11
11
Culture and Principles
Culture and Principles
BlackRock believes that maintaining a strong corporate
culture is an important component of its human capital
BlackRock believes that maintaining a strong corporate
management practices and critical to the firm’s long-term
culture is an important component of its human capital
success. BlackRock’s culture is underpinned by five core
management practices and critical to the firm’s long-term
principles that unify its workforce and guide how it
success. BlackRock’s culture is underpinned by five core
interacts with its employees, its clients, the communities
principles that unify its workforce and guide how it
in which it operates and its other stakeholders: (1) We are
interacts with its employees, its clients, the communities
a fiduciary to our clients; (2) We are One BlackRock; (3) We
in which it operates and its other stakeholders: (1) We are
are passionate about performance; (4) We take emotional
a fiduciary to our clients; (2) We are One BlackRock; (3) We
ownership; and (5) We are committed to a better future.
are passionate about performance; (4) We take emotional
ownership; and (5) We are committed to a better future.
Diversity, Equity and Inc lusion (“DEI”)
Diversity, Equity and Inc lusion (“DEI”)
BlackRock believes a diverse workforce with an inclusive
and connected culture is a commercial imperative and
BlackRock believes a diverse workforce with an inclusive
indispensable to its success. Ultimately, a dynamic,
and connected culture is a commercial imperative and
inclusive organization allows BlackRock to attract and
indispensable to its success. Ultimately, a dynamic,
retain top talent around the world and to stay ahead of its
inclusive organization allows BlackRock to attract and
clients’ needs.
retain top talent around the world and to stay ahead of its
clients’ needs.
BlackRock’s three pillar DEI strategy is aligned with the
firm’s business priorities and long-term objectives. The
BlackRock’s three pillar DEI strategy is aligned with the
three pillars are (1) talent and culture across the globe,
firm’s business priorities and long-term objectives. The
which focuses on attracting, developing and retaining top
three pillars are (1) talent and culture across the globe,
talent by cultivating an inclusive work environment where
which focuses on attracting, developing and retaining top
employees have fair access to opportunities and feel seen,
talent by cultivating an inclusive work environment where
heard, valued and respected, (2) activities to support
employees have fair access to opportunities and feel seen,
interested clients, which focus on expanding investment
heard, valued and respected, (2) activities to support
choices and business partnership opportunities with
interested clients, which focus on expanding investment
brokers, managers, and suppliers, and (3) impact in
choices and business partnership opportunities with
underserved communities, which focuses on helping more
brokers, managers, and suppliers, and (3) impact in
and more people experience financial well-being through
underserved communities, which focuses on helping more
BlackRock philanthropy and employee-led volunteer efforts.
and more people experience financial well-being through
BlackRock philanthropy and employee-led volunteer efforts.
BlackRock views transparency and measurement as
critical to its strategy. Since 2020, the firm has published
BlackRock views transparency and measurement as
annual SASB-aligned disclosure and EEO-1 reports, and
critical to its strategy. Since 2020, the firm has published
since 2022, a Global DEI Annual Report. As of January 1,
annual SASB-aligned disclosure and EEO-1 reports, and
2024, of the Company’s employees who self-identified
since 2022, a Global DEI Annual Report. As of January 1,
their gender status, approximately 44% of the Company’s
2024, of the Company’s employees who self-identified
global workforce, 33% of global senior leaders (Directors
their gender status, approximately 44% of the Company’s
or above) and 47% of global new hires, were women.
global workforce, 33% of global senior leaders (Directors
Additionally, as of January 1, 2024, of the Company’s US
or above) and 47% of global new hires, were women.
employees who self-identified their race/ethnicity status,
Additionally, as of January 1, 2024, of the Company’s US
approximately 8% of employees, 4% of senior leaders and
employees who self-identified their race/ethnicity status,
10% of new hires identified as Black or African American,
approximately 8% of employees, 4% of senior leaders and
8% of employees, 5% of senior leaders and 16% of new
10% of new hires identified as Black or African American,
hires identified as Latinx, and 28% of employees, 21% of
8% of employees, 5% of senior leaders and 16% of new
senior leaders and 30% of new hires identified as Asian.
hires identified as Latinx, and 28% of employees, 21% of
Further, of the Company’s approximately 19,800
senior leaders and 30% of new hires identified as Asian.
employees as of December 31, 2023, 46% were based in
Further, of the Company’s approximately 19,800
the Americas, 31% were based in EMEA and 23% were
employees as of December 31, 2023, 46% were based in
based in Asia-Pacific regions.
the Americas, 31% were based in EMEA and 23% were
based in Asia-Pacific regions.
Board Oversight of Human Capital
Managem ent
Board Oversight of Human Capital
Managem ent
BlackRock’s Board of Directors (the “Board”) plays an
important role in the oversight of human capital
BlackRock’s Board of Directors (the “Board”) plays an
management and devotes one Board meeting annually to
important role in the oversight of human capital
an in-depth review of BlackRock’s culture, talent
management and devotes one Board meeting annually to
development, retention and recruiting initiatives, DEI
an in-depth review of BlackRock’s culture, talent
strategy, leadership and succession planning and
development, retention and recruiting initiatives, DEI
employee feedback. Moreover, the Board’s Management
strategy, leadership and succession planning and
Development and Compensation Committee periodically
employee feedback. Moreover, the Board’s Management
reviews efforts and developments related to the firm’s
Development and Compensation Committee periodically
human capital management strategy.
reviews efforts and developments related to the firm’s
human capital management strategy.
12 BlackRock | 2023 Form 10-K
12 BlackRock | 2023 Form 10-K
Succession planning for BlackRock’s Chief Executive
Officer and other senior executives is a key part of the
Succession planning for BlackRock’s Chief Executive
Board’s annual review of human capital management
Officer and other senior executives is a key part of the
issues. As part of this review, the Board focuses on
Board’s annual review of human capital management
whether BlackRock has the right people in place to
issues. As part of this review, the Board focuses on
execute the Company’s long-term strategic plans, and on
whether BlackRock has the right people in place to
BlackRock’s ability to identify, attract, develop, promote
execute the Company’s long-term strategic plans, and on
and retain future senior executives. An important element
BlackRock’s ability to identify, attract, develop, promote
of the succession planning across the organization is a
and retain future senior executives. An important element
commitment to building leadership from within.
of the succession planning across the organization is a
commitment to building leadership from within.
Employee Engagement
Employee Engagement
BlackRock values continuous dialogue with its employees
to better understand their experiences at the firm and
BlackRock values continuous dialogue with its employees
assess the efficacy of its human capital management
to better understand their experiences at the firm and
practices. The Company uses several employee
assess the efficacy of its human capital management
engagement mechanisms, including: (1) employee
practices. The Company uses several employee
opinion pulse surveys; (2) interactive events and
engagement mechanisms, including: (1) employee
communications; (3) the sponsorship of employee
opinion pulse surveys; (2) interactive events and
networks; and (4) local community involvement. The
communications; (3) the sponsorship of employee
employee opinion pulse surveys, which BlackRock
networks; and (4) local community involvement. The
conducts throughout the year, provide the Company with
employee opinion pulse surveys, which BlackRock
actionable feedback for its teams and for the Company as
conducts throughout the year, provide the Company with
a whole. Additionally, BlackRock uses ongoing lifecycle
actionable feedback for its teams and for the Company as
surveys to collect feedback at various points along the
a whole. Additionally, BlackRock uses ongoing lifecycle
employee journey. BlackRock works to keep employees
surveys to collect feedback at various points along the
informed and engaged through a regular cadence of
employee journey. BlackRock works to keep employees
communications and events, including newsletters, global
informed and engaged through a regular cadence of
and local townhalls and messages from leaders with
communications and events, including newsletters, global
timely business and organizational updates and culture-
and local townhalls and messages from leaders with
building opportunities. BlackRock’s employee networks
timely business and organizational updates and culture-
also provide additional forums and opportunities for
building opportunities. BlackRock’s employee networks
employees with a diverse range of backgrounds,
also provide additional forums and opportunities for
experiences and perspectives to connect with one another
employees with a diverse range of backgrounds,
and enhance the firm’s culture. Open to all, the networks
experiences and perspectives to connect with one another
are designed by employees, for employees, are sponsored
and enhance the firm’s culture. Open to all, the networks
by senior leaders and strengthen the One BlackRock
are designed by employees, for employees, are sponsored
community.
by senior leaders and strengthen the One BlackRock
community.
BlackRock believes that employees value opportunities
to give back to their communities. Through local,
BlackRock believes that employees value opportunities
employee-led BlackRock Gives committees, the Company
to give back to their communities. Through local,
supports nonprofit organizations nominated by
employee-led BlackRock Gives committees, the Company
employees in the communities where it operates. In
supports nonprofit organizations nominated by
addition, the Company has a matching gifts program that
employees in the communities where it operates. In
provides full-time employees with up to $10,000 per year
addition, the Company has a matching gifts program that
in matched donations to any IRS qualified charitable
provides full-time employees with up to $10,000 per year
organization, Full-time employees are also given two paid
in matched donations to any IRS qualified charitable
volunteer days per year and BlackRock matches volunteer
organization, Full-time employees are also given two paid
time with eligible charities.
volunteer days per year and BlackRock matches volunteer
time with eligible charities.
Compensation, Wellness and Benefits
Compensation, Wellness and Benefits
BlackRock is committed to responsible business practices
and believes that investing in the physical, emotional,
BlackRock is committed to responsible business practices
mental and financial well-being of its employees is a
and believes that investing in the physical, emotional,
critical component of the firm’s human capital
mental and financial well-being of its employees is a
management strategy. To that end, the Company designs
critical component of the firm’s human capital
its compensation and benefits practices to: (1) attract,
management strategy. To that end, the Company designs
motivate, and retain talented employees; (2) align
its compensation and benefits practices to: (1) attract,
employee incentives and risk-taking with that of the firm
motivate, and retain talented employees; (2) align
and the interests of its clients; and (3) support employees
employee incentives and risk-taking with that of the firm
and their families across many aspects of their lives. The
and the interests of its clients; and (3) support employees
Company has a strong pay-for-performance culture and
and their families across many aspects of their lives. The
an annual compensation process that takes into
Company has a strong pay-for-performance culture and
consideration firmwide results, individual business results
an annual compensation process that takes into
and employee performance, as well as market benchmarks.
consideration firmwide results, individual business results
and employee performance, as well as market benchmarks.
BlackRock also offers a wide range of benefits that it
regularly reviews in accordance with market practices and
BlackRock also offers a wide range of benefits that it
the local requirements of its offices, including, where
regularly reviews in accordance with market practices and
applicable, retirement savings plans, a Flexible Time Off
the local requirements of its offices, including, where
(“FTO”) policy and flexible working arrangements, parental
applicable, retirement savings plans, a Flexible Time Off
leave and family forming benefits, such as fertility benefits,
(“FTO”) policy and flexible working arrangements, parental
adoption and surrogacy assistance, and backup elder and
leave and family forming benefits, such as fertility benefits,
childcare benefits. The Company provides comprehensive
adoption and surrogacy assistance, and backup elder and
healthcare and mental-health benefits to eligible
childcare benefits. The Company provides comprehensive
employees, including medical, dental and vision coverage,
healthcare and mental-health benefits to eligible
health savings and spending accounts, counseling
employees, including medical, dental and vision coverage,
services, an employee assistance program and access to
health savings and spending accounts, counseling
telemedicine services, where available. The Company also
services, an employee assistance program and access to
offers a Mental Health Ambassador program that is
telemedicine services, where available. The Company also
comprised of global volunteers across office locations who
offers a Mental Health Ambassador program that is
are trained in empathetic listening skills and direct
comprised of global volunteers across office locations who
interested colleagues to benefits, tools and resources to
are trained in empathetic listening skills and direct
support mental health.
interested colleagues to benefits, tools and resources to
support mental health.
BlackRock prioritizes protecting the rights of its workforce.
The Company has implemented policies related to
BlackRock prioritizes protecting the rights of its workforce.
harassment prevention and compliance with equal
The Company has implemented policies related to
employment opportunity and overtime regulations.
harassment prevention and compliance with equal
BlackRock is also committed to providing a safe and healthy
employment opportunity and overtime regulations.
work environment for its workforce. To do this, it designs
BlackRock is also committed to providing a safe and healthy
global programs, including environmental and occupational
work environment for its workforce. To do this, it designs
health and safety programs, to meet or exceed local
global programs, including environmental and occupational
requirements. Moreover, BlackRock encourages all of its
health and safety programs, to meet or exceed local
employees to raise issues of concern and assures
requirements. Moreover, BlackRock encourages all of its
employees that they may do so without fear of retaliation.
employees to raise issues of concern and assures
employees that they may do so without fear of retaliation.
Recruiting, Training and Development
Recruiting, Training and Development
BlackRock recognizes that, like all companies, it is
operating in an increasingly competitive environment. As
BlackRock recognizes that, like all companies, it is
such, the Company engages in efforts to reach top talent,
operating in an increasingly competitive environment. As
including continued partnerships with organizations that
such, the Company engages in efforts to reach top talent,
promote talent from many different backgrounds;
including continued partnerships with organizations that
regularly reviewing job postings for potentially biased
promote talent from many different backgrounds;
language; and actively engaging in outreach and
regularly reviewing job postings for potentially biased
recruitment efforts for its open positions. In the spirit of
language; and actively engaging in outreach and
attracting talent from broad backgrounds, BlackRock also
recruitment efforts for its open positions. In the spirit of
provides formal recruiting programs for Veterans (former
attracting talent from broad backgrounds, BlackRock also
service members transitioning to civilian careers) and
provides formal recruiting programs for Veterans (former
Returners (individuals who have taken a career break of
service members transitioning to civilian careers) and
18 months or more).
Returners (individuals who have taken a career break of
18 months or more).
BlackRock is also committed to innovation, learning and
reinvention in all areas of its business and believes that
BlackRock is also committed to innovation, learning and
developing the capabilities of its employees is integral to
reinvention in all areas of its business and believes that
delivering long-term value. To that end, the Company’s
developing the capabilities of its employees is integral to
human capital management practices are designed to
delivering long-term value. To that end, the Company’s
provide opportunities for employees to learn, innovate and
human capital management practices are designed to
enhance their skillsets at every stage of their career. One
provide opportunities for employees to learn, innovate and
example is the BlackRock Academies, the firm’s online
enhance their skillsets at every stage of their career. One
suite of interactive resources and courses, which enable
example is the BlackRock Academies, the firm’s online
employees to build skills in specific facets of BlackRock’s
suite of interactive resources and courses, which enable
business and purpose. The Company believes these
employees to build skills in specific facets of BlackRock’s
opportunities play an important role in engaging
business and purpose. The Company believes these
BlackRock’s employees.
opportunities play an important role in engaging
BlackRock’s employees.
In addition, BlackRock believes that a critical driver of its
future success is its ability to grow strong leaders and
In addition, BlackRock believes that a critical driver of its
people managers. The Company invests in leadership
future success is its ability to grow strong leaders and
development programs designed to foster career growth.
people managers. The Company invests in leadership
For leadership development, BlackRock provides training
development programs designed to foster career growth.
and makes coaching available to people managers to
For leadership development, BlackRock provides training
assist in building foundational skills.
and makes coaching available to people managers to
assist in building foundational skills.
REGULATION
REGULATION
Virtually all aspects of BlackRock’s business are subject to
various laws and regulations around the world, some of
Virtually all aspects of BlackRock’s business are subject to
which are summarized below. These laws and regulations
various laws and regulations around the world, some of
are primarily intended to protect investment advisory
which are summarized below. These laws and regulations
clients, investors in registered and unregistered
are primarily intended to protect investment advisory
investment companies, and trust and other fiduciary
clients, investors in registered and unregistered
clients of BlackRock Institutional Trust Company, N.A.
investment companies, and trust and other fiduciary
(“BTC”). Under these laws and regulations, agencies that
clients of BlackRock Institutional Trust Company, N.A.
regulate investment advisers, investment funds and trust
(“BTC”). Under these laws and regulations, agencies that
banks and other individuals and entities have broad
regulate investment advisers, investment funds and trust
administrative powers, including the power to limit, restrict
banks and other individuals and entities have broad
or prohibit the regulated entity or person from carrying on
administrative powers, including the power to limit, restrict
business if it fails to comply with such laws and
or prohibit the regulated entity or person from carrying on
regulations. Possible sanctions for significant compliance
business if it fails to comply with such laws and
failures include the suspension of individual employees,
regulations. Possible sanctions for significant compliance
limitations on engaging in certain lines of business for
failures include the suspension of individual employees,
specified periods of time, revocation of investment adviser
limitations on engaging in certain lines of business for
and other registrations or bank charters, censures and
specified periods of time, revocation of investment adviser
fines both for individuals and BlackRock. The rules
and other registrations or bank charters, censures and
governing the regulation of financial institutions and their
fines both for individuals and BlackRock. The rules
holding companies and subsidiaries are very detailed and
governing the regulation of financial institutions and their
technical. Accordingly, the discussion below is general in
holding companies and subsidiaries are very detailed and
nature, does not purport to be complete and is current
technical. Accordingly, the discussion below is general in
only as of the date of this report.
nature, does not purport to be complete and is current
only as of the date of this report.
BlackRock’s business may be impacted by numerous
regulatory reform initiatives occurring around the world.
BlackRock’s business may be impacted by numerous
Any such initiative, or any new laws or regulations or
regulatory reform initiatives occurring around the world.
changes to, or in the enforcement of, existing laws or
Any such initiative, or any new laws or regulations or
regulations, could materially and adversely impact the
changes to, or in the enforcement of, existing laws or
scope or profitability of BlackRock’s business activities,
regulations, could materially and adversely impact the
lead to business disruptions, require BlackRock to alter its
scope or profitability of BlackRock’s business activities,
business or operating activities and expose BlackRock to
lead to business disruptions, require BlackRock to alter its
additional costs (including compliance and legal costs) as
business or operating activities and expose BlackRock to
well as reputational harm. BlackRock’s profitability also
additional costs (including compliance and legal costs) as
could be materially and adversely affected by modification
well as reputational harm. BlackRock’s profitability also
of the rules and regulations that impact the business and
could be materially and adversely affected by modification
financial communities in general, including changes to
of the rules and regulations that impact the business and
the laws governing banking, securities, taxation, antitrust
financial communities in general, including changes to
regulation and electronic commerce.
the laws governing banking, securities, taxation, antitrust
regulation and electronic commerce.
GLOBAL REGULATORY REFORM
GLOBAL REGULATORY REFORM
Policymaking workstreams focused on the financial
services sector led by global standard setters, such as the
Policymaking workstreams focused on the financial
Financial Stability Board (“FSB”) and International
services sector led by global standard setters, such as the
Organization of Securities Commissions (“IOSCO”), may
Financial Stability Board (“FSB”) and International
lead to or inform new regulations in multiple jurisdictions
Organization of Securities Commissions (“IOSCO”), may
in which BlackRock operates. Most recently, such
lead to or inform new regulations in multiple jurisdictions
workstreams have focused on areas such as products and
in which BlackRock operates. Most recently, such
activities of money market funds (“MMFs”), open-ended
workstreams have focused on areas such as products and
funds (“OEFs”) and sustainability regulations.
activities of money market funds (“MMFs”), open-ended
funds (“OEFs”) and sustainability regulations.
Macroprudential Policies for As s et Managers
Macroprudential Policies for As s et Managers
Concerns about liquidity and leverage risks in the asset
management industry and wider market-based finance
Concerns about liquidity and leverage risks in the asset
sector have been heightened since the COVID-19
management industry and wider market-based finance
pandemic and reinforced by the Liquidity Driven
sector have been heightened since the COVID-19
Investment events in the UK. This has prompted a broad
pandemic and reinforced by the Liquidity Driven
review of existing regulations globally, including an
Investment events in the UK. This has prompted a broad
assessment of the adequacy of certain structural market
review of existing regulations globally, including an
components in mitigating risks by the FSB, IOSCO, the US
assessment of the adequacy of certain structural market
Securities and Exchange Commission (the “SEC”) and the
components in mitigating risks by the FSB, IOSCO, the US
Financial Stability Oversight Council (“FSOC”). In
Securities and Exchange Commission (the “SEC”) and the
Financial Stability Oversight Council (“FSOC”). In
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
13
13
November 2022, the SEC proposed amendments to rules
governing OEF liquidity risk management and swing
November 2022, the SEC proposed amendments to rules
pricing. The European Union (“EU”) also proposed reforms
governing OEF liquidity risk management and swing
to increase the availability of liquidity management tools
pricing. The European Union (“EU”) also proposed reforms
to OEFs (including MMFs), enhance reporting on the use
to increase the availability of liquidity management tools
of liquidity management tools by OEFs to national
to OEFs (including MMFs), enhance reporting on the use
regulators and allow such regulators to require OEF
of liquidity management tools by OEFs to national
managers to activate liquidity management tools in
regulators and allow such regulators to require OEF
extreme market conditions. Meanwhile, the UK proposed
managers to activate liquidity management tools in
introducing liquidity facilities to certain asset owners,
extreme market conditions. Meanwhile, the UK proposed
which could result in regulatory burdens on asset
introducing liquidity facilities to certain asset owners,
managers. If any of these regulatory or policy actions
which could result in regulatory burdens on asset
result in broad application of macroprudential tools to
managers. If any of these regulatory or policy actions
OEFs or require changes to structural features of certain
result in broad application of macroprudential tools to
OEFs, it could limit BlackRock’s ability to offer products to
OEFs or require changes to structural features of certain
certain clients and/or result in clients altering their
OEFs, it could limit BlackRock’s ability to offer products to
investment strategies or allocations in a manner that is
certain clients and/or result in clients altering their
adverse to BlackRock.
investment strategies or allocations in a manner that is
adverse to BlackRock.
Global MMF Reforms
Global MMF Reforms
Following the market events of March 2020, US, UK and
EU authorities initiated a review of existing regulatory
Following the market events of March 2020, US, UK and
frameworks with the aim of improving the resilience of
EU authorities initiated a review of existing regulatory
MMFs in market downturns. In the US, the SEC adopted
frameworks with the aim of improving the resilience of
changes to Rule 2a-7, the primary rule under the
MMFs in market downturns. In the US, the SEC adopted
Investment Company Act of 1940 governing MMFs,
changes to Rule 2a-7, the primary rule under the
including changes to required liquidity levels and certain
Investment Company Act of 1940 governing MMFs,
operational aspects of such funds, and requiring
including changes to required liquidity levels and certain
mandatory liquidity fees under certain circumstances. The
operational aspects of such funds, and requiring
UK released a consultation in December 2023 indicating
mandatory liquidity fees under certain circumstances. The
their intent to change regulatory requirements for MMFs
UK released a consultation in December 2023 indicating
domiciled or marketed in the UK, including material
their intent to change regulatory requirements for MMFs
increases in required liquidity levels. Although EU
domiciled or marketed in the UK, including material
authorities stated in July 2023 that they would not
increases in required liquidity levels. Although EU
re-open the EU regulatory framework for MMFs in the
authorities stated in July 2023 that they would not
near term, the UK’s proposed changes may increase
re-open the EU regulatory framework for MMFs in the
pressure to implement similar reforms as the vast majority
near term, the UK’s proposed changes may increase
of MMFs sold in the UK are EU-domiciled and regulated.
pressure to implement similar reforms as the vast majority
Such regulatory reforms could significantly and adversely
of MMFs sold in the UK are EU-domiciled and regulated.
impact certain of BlackRock’s MMF products.
Such regulatory reforms could significantly and adversely
impact certain of BlackRock’s MMF products.
Env ir onm ent al, Social and Gov er nance (“ESG”)
and Sus tainability
Env ir onm ent al, Social and Gov er nance (“ESG”)
and Sus tainability
ESG and sustainability have been the subject of increased
regulatory focus across jurisdictions. The International
ESG and sustainability have been the subject of increased
Sustainability Standards Board (“ISSB”) released its first
regulatory focus across jurisdictions. The International
two disclosure standards in 2023, which may inform
Sustainability Standards Board (“ISSB”) released its first
national regulators’ approaches. For example, the UK,
two disclosure standards in 2023, which may inform
Singapore, Hong Kong, Taiwan and Australia have already
national regulators’ approaches. For example, the UK,
indicated their intention to endorse these standards. In
Singapore, Hong Kong, Taiwan and Australia have already
the US, the SEC has proposed a series of rules that would
indicated their intention to endorse these standards. In
require, among other things: (1) corporate issuers to make
the US, the SEC has proposed a series of rules that would
substantial climate-related disclosures in periodic reports,
require, among other things: (1) corporate issuers to make
including with respect to governance, risk management,
substantial climate-related disclosures in periodic reports,
business strategy, financial statement metrics and
including with respect to governance, risk management,
greenhouse gas (“GHG”) emissions and (2) enhanced ESG
business strategy, financial statement metrics and
disclosures by investment companies and investment
greenhouse gas (“GHG”) emissions and (2) enhanced ESG
advisers in fund and adviser filings, including disclosures
disclosures by investment companies and investment
on ESG strategies and how ESG factors are considered,
advisers in fund and adviser filings, including disclosures
and GHG emissions disclosure by certain environmentally
on ESG strategies and how ESG factors are considered,
focused funds. Furthermore, the SEC has announced
and GHG emissions disclosure by certain environmentally
plans to propose rules to require enhanced disclosure
focused funds. Furthermore, the SEC has announced
regarding human capital management and board diversity
plans to propose rules to require enhanced disclosure
for public issuers. It has also increased scrutiny of
regarding human capital management and board diversity
disclosure and compliance issues relating to investment
for public issuers. It has also increased scrutiny of
advisers’ and funds’ ESG strategies, policies and
disclosure and compliance issues relating to investment
advisers’ and funds’ ESG strategies, policies and
14 BlackRock | 2023 Form 10-K
14 BlackRock | 2023 Form 10-K
procedures. In addition, the US Department of Labor
(“DOL”) issued final rules clarifying that Employee
procedures. In addition, the US Department of Labor
Retirement Income Security Act of 1974, as amended
(“DOL”) issued final rules clarifying that Employee
(“ERISA”) plan fiduciaries can, but are not required to,
Retirement Income Security Act of 1974, as amended
consider the economic effects of ESG factors for purposes
(“ERISA”) plan fiduciaries can, but are not required to,
of investing ERISA plan assets and exercising voting rights
consider the economic effects of ESG factors for purposes
with respect to plan investments. Moreover, California
of investing ERISA plan assets and exercising voting rights
passed several laws in 2023 that will require companies
with respect to plan investments. Moreover, California
doing business in California to make certain types of
passed several laws in 2023 that will require companies
climate-related disclosures, and other states may adopt
doing business in California to make certain types of
similar laws.
climate-related disclosures, and other states may adopt
similar laws.
The EU has enacted numerous regulations on ESG and
sustainability, including on sustainability-related
The EU has enacted numerous regulations on ESG and
disclosures by financial market participants; integration of
sustainability, including on sustainability-related
sustainability considerations into investment and risk
disclosures by financial market participants; integration of
management processes of asset managers and other
sustainability considerations into investment and risk
institutional investors; making the advice and financial
management processes of asset managers and other
product distribution process more receptive to
institutional investors; making the advice and financial
end-investor sustainability preferences; and requiring
product distribution process more receptive to
asset managers to report against an EU-wide taxonomy of
end-investor sustainability preferences; and requiring
environmentally sustainable activities and make detailed
asset managers to report against an EU-wide taxonomy of
disclosures relating to ESG characteristics of funds and
environmentally sustainable activities and make detailed
portfolios. Further regulations include the Corporate
disclosures relating to ESG characteristics of funds and
Sustainability Reporting Directive, which will require
portfolios. Further regulations include the Corporate
enhanced sustainability reporting for EU-based corporate
Sustainability Reporting Directive, which will require
issuers, with phased implementation beginning in 2024
enhanced sustainability reporting for EU-based corporate
and for a wider group of global companies from 2028. In
issuers, with phased implementation beginning in 2024
December 2023, the EU reached provisional agreement on
and for a wider group of global companies from 2028. In
a directive, which if adopted in its current form, would
December 2023, the EU reached provisional agreement on
require a wide group of European and global companies to
a directive, which if adopted in its current form, would
provide transition plans and conduct due diligence on the
require a wide group of European and global companies to
sustainability of their suppliers. The EU and the UK
provide transition plans and conduct due diligence on the
Financial Conduct Authority (“FCA”) are also developing
sustainability of their suppliers. The EU and the UK
rules and guidelines for the use of ESG or sustainability
Financial Conduct Authority (“FCA”) are also developing
related terms in fund names, focused on specifying a
rules and guidelines for the use of ESG or sustainability
minimum threshold of assets meeting ESG or sustainable
related terms in fund names, focused on specifying a
criteria for such funds.
minimum threshold of assets meeting ESG or sustainable
criteria for such funds.
Within the UK, the FCA has proposed UK-specific
sustainability regulations, including a sustainable product
Within the UK, the FCA has proposed UK-specific
classification system for funds and enhanced disclosure
sustainability regulations, including a sustainable product
requirements, which are expected to apply on a staggered
classification system for funds and enhanced disclosure
basis from July 2024. In addition, His Majesty’s Treasury
requirements, which are expected to apply on a staggered
(“HMT”) released a consultation to bring ESG rating
basis from July 2024. In addition, His Majesty’s Treasury
providers under regulation by the FCA and will consult on a
(“HMT”) released a consultation to bring ESG rating
UK-specific taxonomy of environmentally sustainable
providers under regulation by the FCA and will consult on a
activities.
UK-specific taxonomy of environmentally sustainable
activities.
A number of Asia-Pacific jurisdictions are consulting on
sustainability reporting obligations aligned with the ISSB
A number of Asia-Pacific jurisdictions are consulting on
standards. Similarly, policymakers in Japan have
sustainability reporting obligations aligned with the ISSB
announced that they are preparing a local version of the
standards. Similarly, policymakers in Japan have
ISSB standards. Japan and Singapore have published
announced that they are preparing a local version of the
codes of conduct for ESG data and ratings providers, with
ISSB standards. Japan and Singapore have published
Hong Kong considering a similar approach, while India
codes of conduct for ESG data and ratings providers, with
introduced a regulatory framework for ESG ratings
Hong Kong considering a similar approach, while India
providers in July 2023.
introduced a regulatory framework for ESG ratings
providers in July 2023.
Taxation
Taxation
BlackRock’s businesses may be directly or indirectly
affected by tax legislation and regulation, or the
BlackRock’s businesses may be directly or indirectly
modification of existing tax laws, by US or non-US tax
affected by tax legislation and regulation, or the
authorities. Legislation at both the US federal and state
modification of existing tax laws, by US or non-US tax
level has been previously proposed to enact a financial
authorities. Legislation at both the US federal and state
transaction tax (“FTT”) on stocks, bonds and a broad range
level has been previously proposed to enact a financial
of financial instruments and derivative transactions. In the
transaction tax (“FTT”) on stocks, bonds and a broad range
of financial instruments and derivative transactions. In the
EU, certain Member States have also enacted similar FTTs
and the European Commission (“EC”) has proposed
EU, certain Member States have also enacted similar FTTs
legislation to harmonize these taxes and provide for the
and the European Commission (“EC”) has proposed
adoption of EU-level legislation applicable to some (but
legislation to harmonize these taxes and provide for the
not all) EU Member States. If enacted as proposed, FTTs
adoption of EU-level legislation applicable to some (but
could have an adverse effect on BlackRock’s financial
not all) EU Member States. If enacted as proposed, FTTs
results and clients’ performance results.
could have an adverse effect on BlackRock’s financial
results and clients’ performance results.
The Organisation for Economic Cooperation and
Development (“OECD”) has proposed certain international
The Organisation for Economic Cooperation and
tax reforms, which, among other things, would (1) shift
Development (“OECD”) has proposed certain international
taxing rights to the jurisdiction of the consumer and
tax reforms, which, among other things, would (1) shift
(2) establish a global minimum tax for multinational
taxing rights to the jurisdiction of the consumer and
companies of 15% (namely the “Pillar One” and “Pillar
(2) establish a global minimum tax for multinational
Two” Framework). EU member states adopted, or plan to
companies of 15% (namely the “Pillar One” and “Pillar
adopt, laws implementing the OECD’s minimum tax rules
Two” Framework). EU member states adopted, or plan to
under the Pillar Two Framework, which are expected to go
adopt, laws implementing the OECD’s minimum tax rules
into effect in 2024. Several other countries, including the
under the Pillar Two Framework, which are expected to go
UK, have changed or are considering changes to their tax
into effect in 2024. Several other countries, including the
law to implement the OECD’s minimum tax proposal. As a
UK, have changed or are considering changes to their tax
result of these developments, the tax laws of certain
law to implement the OECD’s minimum tax proposal. As a
countries in which BlackRock does business have and may
result of these developments, the tax laws of certain
continue to change, and any such changes could increase
countries in which BlackRock does business have and may
its tax liabilities. The Company is continuing to monitor
continue to change, and any such changes could increase
legislative developments and evaluate the potential
its tax liabilities. The Company is continuing to monitor
impact of the Pillar Two Framework on future periods.
legislative developments and evaluate the potential
impact of the Pillar Two Framework on future periods.
The application of tax regulations involves numerous
uncertainties and, in the normal course of business, US and
The application of tax regulations involves numerous
non-US tax authorities may review and challenge tax
uncertainties and, in the normal course of business, US and
positions adopted by BlackRock. These challenges may
non-US tax authorities may review and challenge tax
result in adjustments to, or impact the timing or amount of,
positions adopted by BlackRock. These challenges may
taxable income, deductions or other tax allocations, which
result in adjustments to, or impact the timing or amount of,
may adversely affect BlackRock’s effective tax rate and
taxable income, deductions or other tax allocations, which
overall financial condition. Similarly, the Company manages
may adversely affect BlackRock’s effective tax rate and
assets in products and accounts that have investment
overall financial condition. Similarly, the Company manages
objectives which may conform to tax positions adopted by
assets in products and accounts that have investment
BlackRock or to specific tax rules. To the extent there are
objectives which may conform to tax positions adopted by
changes in tax law or policy, or regulatory challenges to tax
BlackRock or to specific tax rules. To the extent there are
positions adopted by BlackRock, the value or attractiveness
changes in tax law or policy, or regulatory challenges to tax
of such investments may be diminished and BlackRock may
positions adopted by BlackRock, the value or attractiveness
suffer financial or reputational harm.
of such investments may be diminished and BlackRock may
suffer financial or reputational harm.
Regulation of Swaps and Derivatives
Regulation of Swaps and Derivatives
Jurisdictions outside the US in which BlackRock operates
have adopted and implemented, or are in the process of
Jurisdictions outside the US in which BlackRock operates
considering, adopting or implementing, more pervasive
have adopted and implemented, or are in the process of
regulation of many elements of the financial services
considering, adopting or implementing, more pervasive
industry, which could further impact BlackRock and the
regulation of many elements of the financial services
broader markets. For example, various global rules and
industry, which could further impact BlackRock and the
regulations applicable to the use of financial products by
broader markets. For example, various global rules and
funds, accounts and counterparties that have been
regulations applicable to the use of financial products by
adopted or proposed have required or will require
funds, accounts and counterparties that have been
BlackRock to build and implement new compliance
adopted or proposed have required or will require
monitoring procedures to address the enhanced level of
BlackRock to build and implement new compliance
oversight to which it and its clients will be subject. These
monitoring procedures to address the enhanced level of
rules impose requirements such as mandatory central
oversight to which it and its clients will be subject. These
clearing of certain swaps transactions, requiring execution
rules impose requirements such as mandatory central
of certain swaps transactions on or through registered
clearing of certain swaps transactions, requiring execution
electronic trading venues (as opposed to over the phone or
of certain swaps transactions on or through registered
other execution methods), reporting transactions to
electronic trading venues (as opposed to over the phone or
central data repositories, mandating certain
other execution methods), reporting transactions to
documentation standards, requiring the posting and
central data repositories, mandating certain
collection of initial and/or variation margin for bilateral
documentation standards, requiring the posting and
swap transactions and subjecting certain types of listed
collection of initial and/or variation margin for bilateral
and/or over-the-counter transactions to position limit or
swap transactions and subjecting certain types of listed
position reporting requirements.
and/or over-the-counter transactions to position limit or
position reporting requirements.
In the US, certain interest rate swaps and certain index
credit default swaps are subject to central clearing and
In the US, certain interest rate swaps and certain index
trading venue execution requirements under the Dodd-
credit default swaps are subject to central clearing and
Frank Wall Street Reform and Consumer Protection Act of
trading venue execution requirements under the Dodd-
2010 (the “Dodd-Frank Act”), with additional products and
Frank Wall Street Reform and Consumer Protection Act of
asset classes potentially becoming subject to these
2010 (the “Dodd-Frank Act”), with additional products and
requirements in the future. In the EU and UK, central
asset classes potentially becoming subject to these
clearing and trading venue requirements for certain swap
requirements in the future. In the EU and UK, central
transactions have become effective for certain types of
clearing and trading venue requirements for certain swap
BlackRock funds and accounts. Further, most derivatives
transactions have become effective for certain types of
transactions that are not centrally cleared, including
BlackRock funds and accounts. Further, most derivatives
non-deliverable foreign exchange forward transactions
transactions that are not centrally cleared, including
and currency option transactions, are subject to
non-deliverable foreign exchange forward transactions
requirements in the US, EU, UK and numerous other
and currency option transactions, are subject to
jurisdictions to post or collect mark-to-market margin
requirements in the US, EU, UK and numerous other
payments. For certain BlackRock funds and accounts,
jurisdictions to post or collect mark-to-market margin
initial margin requirements also apply in addition to such
payments. For certain BlackRock funds and accounts,
mark-to-market margin payments. These rules and
initial margin requirements also apply in addition to such
regulations increase the complexity and cost of trading
mark-to-market margin payments. These rules and
non-cleared derivatives for BlackRock’s clients, in certain
regulations increase the complexity and cost of trading
cases produce regulatory inconsistencies in global
non-cleared derivatives for BlackRock’s clients, in certain
derivatives trading rules, and increase BlackRock’s
cases produce regulatory inconsistencies in global
operational and legal risks.
derivatives trading rules, and increase BlackRock’s
operational and legal risks.
US REGULATORY REFORM
US REGULATORY REFORM
Antitrust Rules and Guidance
Antitrust Rules and Guidance
In 2023, the Federal Trade Commission (“FTC”) and the
Antitrust Division of the Department of Justice (the “DOJ”)
In 2023, the Federal Trade Commission (“FTC”) and the
issued a notice of proposed rulemaking with amendments
Antitrust Division of the Department of Justice (the “DOJ”)
to rules enacted under the Hart-Scott-Rodino Antitrust
issued a notice of proposed rulemaking with amendments
Improvements Act of 1976 (“HSR”) that require parties in
to rules enacted under the Hart-Scott-Rodino Antitrust
certain transactions to provide the FTC and DOJ prior
Improvements Act of 1976 (“HSR”) that require parties in
notice and observe a waiting period before consummation
certain transactions to provide the FTC and DOJ prior
of such transactions. The proposals would significantly
notice and observe a waiting period before consummation
expand the information required to be reported and
of such transactions. The proposals would significantly
documentation to be submitted in connection with an
expand the information required to be reported and
HSR filing. If enacted as drafted, the proposed rules could
documentation to be submitted in connection with an
substantially increase BlackRock’s pre-merger notification
HSR filing. If enacted as drafted, the proposed rules could
expenses and delay transactions. In December 2023 the
substantially increase BlackRock’s pre-merger notification
FTC and DOJ also jointly issued new merger guidelines,
expenses and delay transactions. In December 2023 the
which could impact the ability of the Company to expand
FTC and DOJ also jointly issued new merger guidelines,
its services through strategic investments or acquisitions.
which could impact the ability of the Company to expand
its services through strategic investments or acquisitions.
Des ignation as a Sys t emically Important
Financial Ins t it ut ion (“SIFI”)
Des ignation as a Sys t emically Important
Financial Ins t it ut ion (“SIFI”)
The FSOC has the authority to designate nonbank financial
institutions as SIFIs in the US under the Dodd-Frank Act. In
The FSOC has the authority to designate nonbank financial
November 2023, the FSOC finalized amendments to its
institutions as SIFIs in the US under the Dodd-Frank Act. In
existing interpretive guidance to remove the prioritization
November 2023, the FSOC finalized amendments to its
of an activities-based approach over an entity-specific
existing interpretive guidance to remove the prioritization
approach to designation in connection with addressing
of an activities-based approach over an entity-specific
potential risks to financial stability, although the
approach to designation in connection with addressing
amendment clarified that the FSOC retained the ability to
potential risks to financial stability, although the
use an activities-based approach when appropriate. If
amendment clarified that the FSOC retained the ability to
BlackRock is designated as a SIFI, it could become subject
use an activities-based approach when appropriate. If
to enhanced regulatory and capital requirements and
BlackRock is designated as a SIFI, it could become subject
direct supervision by the Federal Reserve.
to enhanced regulatory and capital requirements and
direct supervision by the Federal Reserve.
US DOL Fiduciary Rule
US DOL Fiduciary Rule
In October 2023, the US DOL proposed a new regulation
redefining the meaning of “investment advice fiduciary”
In October 2023, the US DOL proposed a new regulation
under ERISA as well as amendments to several prohibited
redefining the meaning of “investment advice fiduciary”
transaction exemptions applicable to investment advice
under ERISA as well as amendments to several prohibited
fiduciaries. If adopted as proposed, the rule would
transaction exemptions applicable to investment advice
fiduciaries. If adopted as proposed, the rule would
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
15
15
substantially expand when a person would be considered
a fiduciary subject to ERISA and could require BlackRock
substantially expand when a person would be considered
to revise a number of its distribution relationships, create
a fiduciary subject to ERISA and could require BlackRock
compliance and operational challenges for BlackRock and
to revise a number of its distribution relationships, create
its distribution partners, and limit BlackRock’s ability to
compliance and operational challenges for BlackRock and
provide certain services to applicable clients.
its distribution partners, and limit BlackRock’s ability to
provide certain services to applicable clients.
Regulation of Swaps and Derivatives
Regulation of Swaps and Derivatives
The SEC, Federal Reserve, the Internal Revenue Service
and the Commodity Futures Trading Commission (“CFTC”)
The SEC, Federal Reserve, the Internal Revenue Service
each continue to review practices and regulations relating
and the Commodity Futures Trading Commission (“CFTC”)
to the use of futures, swaps and other derivatives. Such
each continue to review practices and regulations relating
reviews could result in regulations that restrict or limit the
to the use of futures, swaps and other derivatives. Such
use of such products by funds or accounts. If adopted, any
reviews could result in regulations that restrict or limit the
such limitations or restrictions could require BlackRock to
use of such products by funds or accounts. If adopted, any
change certain business practices or implement new
such limitations or restrictions could require BlackRock to
compliance processes, which could result in additional
change certain business practices or implement new
costs and/or restrictions.
compliance processes, which could result in additional
costs and/or restrictions.
In October 2020, the SEC adopted regulations governing
the use of derivatives by registered investment companies
In October 2020, the SEC adopted regulations governing
(“RICs”), including mutual funds (other than MMFs), ETFs
the use of derivatives by registered investment companies
and closed-end funds, as well as business development
(“RICs”), including mutual funds (other than MMFs), ETFs
companies. RICs were required to implement and comply
and closed-end funds, as well as business development
with this rule beginning in 2022. The rule, among other
companies. RICs were required to implement and comply
things, imposes limits on the amount of derivatives
with this rule beginning in 2022. The rule, among other
transactions a RIC can enter into, eliminates the asset
things, imposes limits on the amount of derivatives
segregation compliance framework and introduces new
transactions a RIC can enter into, eliminates the asset
compliance requirements for funds, including the
segregation compliance framework and introduces new
establishment of comprehensive risk management
compliance requirements for funds, including the
programs. The rule may impact certain RICs’ usage of
establishment of comprehensive risk management
derivatives and investment strategy.
programs. The rule may impact certain RICs’ usage of
derivatives and investment strategy.
In 2021, the SEC proposed rules in connection with
security-based swaps (“SBS”) transactions to require
In 2021, the SEC proposed rules in connection with
public reporting of large SBS positions. These rules, if
security-based swaps (“SBS”) transactions to require
adopted as proposed, may affect the types of transactions
public reporting of large SBS positions. These rules, if
BlackRock may choose to execute in SBS or other
adopted as proposed, may affect the types of transactions
SBS-related assets, introduce or increase costs relating to
BlackRock may choose to execute in SBS or other
such transactions, and impact the liquidity in the SBS
SBS-related assets, introduce or increase costs relating to
markets in which BlackRock transacts.
such transactions, and impact the liquidity in the SBS
markets in which BlackRock transacts.
SEC Proposed Rules on Private Fund Advisers
SEC Proposed Rules on Private Fund Advisers
In 2023, the SEC adopted new rules and amendments to
enhance regulation of private fund advisors. These
In 2023, the SEC adopted new rules and amendments to
included amendments to Form PF for registered
enhance regulation of private fund advisors. These
investment advisers requiring new disclosures, filing
included amendments to Form PF for registered
obligations and enhanced reporting. The SEC adopted
investment advisers requiring new disclosures, filing
additional rules requiring registered private fund advisers
obligations and enhanced reporting. The SEC adopted
to, among other things, provide quarterly reports to fund
additional rules requiring registered private fund advisers
investors, obtain annual audits for funds, distribute
to, among other things, provide quarterly reports to fund
fairness opinions in connection with certain transactions,
investors, obtain annual audits for funds, distribute
prohibit certain types of preferential terms and treatment,
fairness opinions in connection with certain transactions,
and provide transparency to investors of all types of
prohibit certain types of preferential terms and treatment,
preferential treatment granted to other investors in the
and provide transparency to investors of all types of
same fund. Implementing these rules and amendments
preferential treatment granted to other investors in the
may significantly increase BlackRock’s reporting,
same fund. Implementing these rules and amendments
disclosure and compliance obligations and create
may significantly increase BlackRock’s reporting,
operational complexity for BlackRock’s alternatives
disclosure and compliance obligations and create
products.
operational complexity for BlackRock’s alternatives
products.
Proposed Rules on Regulation A TS
Proposed Rules on Regulation A TS
In 2023, the SEC re-proposed amendments to Regulation
ATS. The proposed rules would expand the types of
In 2023, the SEC re-proposed amendments to Regulation
systems that could fall within the definition of “exchange”
ATS. The proposed rules would expand the types of
and extend Regulation ATS and Regulation Systems
systems that could fall within the definition of “exchange”
and extend Regulation ATS and Regulation Systems
16 BlackRock | 2023 Form 10-K
16 BlackRock | 2023 Form 10-K
Compliance and Integrity to systems involving US
government securities trading. If enacted as proposed,
Compliance and Integrity to systems involving US
these rules may increase compliance costs for BlackRock.
government securities trading. If enacted as proposed,
these rules may increase compliance costs for BlackRock.
SEC US Treasury Cleari ng Mandate
SEC US Treasury Cleari ng Mandate
In December 2023, the SEC adopted rules mandating
central clearing of US Treasury repurchases and certain
In December 2023, the SEC adopted rules mandating
other Treasury transactions. The rules require many
central clearing of US Treasury repurchases and certain
market participants, including a large number of
other Treasury transactions. The rules require many
BlackRock funds and accounts, to clear Treasury
market participants, including a large number of
repurchase transactions and potentially certain cash
BlackRock funds and accounts, to clear Treasury
Treasury securities transactions through a clearing
repurchase transactions and potentially certain cash
agency registered with the SEC, which could increase
Treasury securities transactions through a clearing
transaction costs for BlackRock’s clients.
agency registered with the SEC, which could increase
transaction costs for BlackRock’s clients.
Proposed Rules on Equity Market Structure
Proposed Rules on Equity Market Structure
In 2023, the SEC proposed equity market structure
reforms that would significantly change how national
In 2023, the SEC proposed equity market structure
market system (“NMS”) stock orders are priced, executed
reforms that would significantly change how national
and reported. The reforms include: (1) a requirement for
market system (“NMS”) stock orders are priced, executed
certain retail orders to be subject to order-by-order
and reported. The reforms include: (1) a requirement for
competition, (2) an SEC-level best execution rule and
certain retail orders to be subject to order-by-order
(3) an adjustment to the tick sizes at which NMS stocks
competition, (2) an SEC-level best execution rule and
can be quoted or traded. If enacted as proposed, the
(3) an adjustment to the tick sizes at which NMS stocks
collective impact of the rules may adversely affect market
can be quoted or traded. If enacted as proposed, the
efficiency and execution costs, which would result in
collective impact of the rules may adversely affect market
negative effects for BlackRock’s business and clients.
efficiency and execution costs, which would result in
negative effects for BlackRock’s business and clients.
SEC Rules on Short Sales and Reporting of
Securities Loans
SEC Rules on Short Sales and Reporting of
Securities Loans
In 2023, the SEC adopted a new rule requiring certain
institutional managers to report short positions and
In 2023, the SEC adopted a new rule requiring certain
activity to the SEC for publication on an aggregate basis,
institutional managers to report short positions and
which could potentially impact investment strategies and
activity to the SEC for publication on an aggregate basis,
result in greater operational burdens and cost for
which could potentially impact investment strategies and
BlackRock. The SEC also adopted a new rule requiring
result in greater operational burdens and cost for
certain persons to report information on securities loan
BlackRock. The SEC also adopted a new rule requiring
transactions to a registered national securities association
certain persons to report information on securities loan
which will then publish certain information. The rule may
transactions to a registered national securities association
increase BlackRock’s operational burdens and costs.
which will then publish certain information. The rule may
increase BlackRock’s operational burdens and costs.
SEC Standard Settlement Rules
SEC Standard Settlement Rules
In 2023, the SEC adopted amendments and new rules
which, among other things, shortened the standard
In 2023, the SEC adopted amendments and new rules
settlement for most securities transactions to one
which, among other things, shortened the standard
business day after the trade date (T+1), which will likely
settlement for most securities transactions to one
increase BlackRock’s operational burdens and costs.
business day after the trade date (T+1), which will likely
increase BlackRock’s operational burdens and costs.
SEC Predictive Data A nalytics Rules
SEC Predictive Data A nalytics Rules
The SEC proposed new rules in 2023 that would require
broker-dealers and investment advisers, when engaging
The SEC proposed new rules in 2023 that would require
or communicating with investors using predictive data
broker-dealers and investment advisers, when engaging
analytics (“PDA”) and PDA-like technologies, to evaluate
or communicating with investors using predictive data
such technologies for conflicts of interest and, where
analytics (“PDA”) and PDA-like technologies, to evaluate
identified, eliminate or neutralize the conflict of interest. If
such technologies for conflicts of interest and, where
adopted as proposed, the rules could encompass a wide
identified, eliminate or neutralize the conflict of interest. If
range of forward-looking uses of technology applications
adopted as proposed, the rules could encompass a wide
and impose significant operational burdens and costs.
range of forward-looking uses of technology applications
and impose significant operational burdens and costs.
SEC Rulemakings for US Registered Funds and
Inves tm ent Advisers
SEC Rulemakings for US Registered Funds and
Inves tm ent Advisers
The SEC has recently engaged in various initiatives and
reviews impacting regulatory structure governing the
The SEC has recently engaged in various initiatives and
reviews impacting regulatory structure governing the
asset management industry and registered investment
companies. For example, the SEC adopted rules requiring
asset management industry and registered investment
certain funds to provide tailored fund shareholder reports,
companies. For example, the SEC adopted rules requiring
adopted final amendments to the rule governing fund
certain funds to provide tailored fund shareholder reports,
names, expanding the scope of the rule to fund names
adopted final amendments to the rule governing fund
including growth, value, ESG or similar terms, and
names, expanding the scope of the rule to fund names
proposed rules governing outsourcing of certain functions
including growth, value, ESG or similar terms, and
by investment advisers to service providers.
proposed rules governing outsourcing of certain functions
by investment advisers to service providers.
INTERNATIONAL REGULATORY REFORM
INTERNATIONAL REGULATORY REFORM
Enhanced Regulat or y Scr ut iny of Technology
Service Providers to Financ ial Services Firms
Enhanced Regulat or y Scr ut iny of Technology
Service Providers to Financ ial Services Firms
The EU’s Digital Operational Resilience Act (“DORA”),
which focuses on direct regulation of providers and users
The EU’s Digital Operational Resilience Act (“DORA”),
of technology and data services, will become applicable
which focuses on direct regulation of providers and users
beginning in January 2025. DORA will, among other
of technology and data services, will become applicable
things: (1) introduce additional governance, risk
beginning in January 2025. DORA will, among other
management, incident reporting, resilience testing and
things: (1) introduce additional governance, risk
information sharing requirements to several of
management, incident reporting, resilience testing and
BlackRock’s European entities and certain Aladdin clients;
information sharing requirements to several of
and (2) potentially subject Aladdin to additional oversight.
BlackRock’s European entities and certain Aladdin clients;
In parallel with DORA, the UK proposed a new Critical
and (2) potentially subject Aladdin to additional oversight.
Third Party regime to regulate certain third parties
In parallel with DORA, the UK proposed a new Critical
designated by HMT as “critical” to the financial sector, and
Third Party regime to regulate certain third parties
UK regulators have issued a consultation on proposed
designated by HMT as “critical” to the financial sector, and
requirements for “critical” third parties, with further
UK regulators have issued a consultation on proposed
consultations expected in 2024.
requirements for “critical” third parties, with further
consultations expected in 2024.
Retail Investment Strategy
Retail Investment Strategy
In 2023, the European Commission (“EC”) adopted a
Retail Investment Strategy package with wide-reaching
In 2023, the European Commission (“EC”) adopted a
amendments intended to enhance protections for retail
Retail Investment Strategy package with wide-reaching
investors. If enacted as proposed, these changes may
amendments intended to enhance protections for retail
impact BlackRock’s operations in European markets,
investors. If enacted as proposed, these changes may
including product development, client servicing and
impact BlackRock’s operations in European markets,
distribution models.
including product development, client servicing and
distribution models.
FSMA 2023
FSMA 2023
The Financial Services and Markets Act 2023 (“FSMA
2023”) reflects significant changes to the UK framework
The Financial Services and Markets Act 2023 (“FSMA
for financial services regulation, including changes that:
2023”) reflects significant changes to the UK framework
(1) revoke retained EU law related to financial services
for financial services regulation, including changes that:
regulation, (2) amend the UK Markets in Financial
(1) revoke retained EU law related to financial services
Instruments Directive and Markets in Financial
regulation, (2) amend the UK Markets in Financial
Instruments Regulation frameworks, (3) establish a new
Instruments Directive and Markets in Financial
designated activities regime and (4) reform the financial
Instruments Regulation frameworks, (3) establish a new
promotion regime for unauthorized firms. The UK
designated activities regime and (4) reform the financial
government and FCA are expected to publish further
promotion regime for unauthorized firms. The UK
legislation setting out specific changes impacting the UK
government and FCA are expected to publish further
market in 2024.
legislation setting out specific changes impacting the UK
market in 2024.
Mansion House Reforms
Mansion House Reforms
The Mansion House reforms announced in July 2023 also
build on the new UK regulatory framework enabled by the
The Mansion House reforms announced in July 2023 also
FSMA 2023. Potential impacts to the asset management
build on the new UK regulatory framework enabled by the
sector include: (1) repeal and replacement of the
FSMA 2023. Potential impacts to the asset management
packaged retail and insurance based investment products
sector include: (1) repeal and replacement of the
(“PRIIPs”) Regulation; (2) review of the UK’s green finance
packaged retail and insurance based investment products
strategy, including potential regulation of ESG data
(“PRIIPs”) Regulation; (2) review of the UK’s green finance
providers; (3) review of governance through the Senior
strategy, including potential regulation of ESG data
Managers and Certification Regime; (4) repeal of EU
providers; (3) review of governance through the Senior
legislation on the European Long-Term Investment Fund;
Managers and Certification Regime; (4) repeal of EU
(5) market infrastructure reforms; (6) reassessment of the
legislation on the European Long-Term Investment Fund;
(5) market infrastructure reforms; (6) reassessment of the
boundary between investment advice and financial
guidance; and (7) independent review of the UK
boundary between investment advice and financial
investment research landscape.
guidance; and (7) independent review of the UK
investment research landscape.
Ov er s eas Fund Regim e (“OFR”)
Ov er s eas Fund Regim e (“OFR”)
OFR, the simplified regime through which non-UK funds
can register with the FCA to be marketed to UK retail
OFR, the simplified regime through which non-UK funds
investors, was enacted in February 2022 and is expected
can register with the FCA to be marketed to UK retail
to be implemented through 2024. OFR requires consumer
investors, was enacted in February 2022 and is expected
protection regimes in EU countries where BlackRock
to be implemented through 2024. OFR requires consumer
funds are domiciled to be found equivalent to the UK’s
protection regimes in EU countries where BlackRock
regime in order to market such funds in the UK.
funds are domiciled to be found equivalent to the UK’s
regime in order to market such funds in the UK.
Conduct Regulation
Conduct Regulation
The FCA continues to focus on conduct regulation,
including the implementation of the Consumer Duty by all
The FCA continues to focus on conduct regulation,
asset management firms, including BlackRock’s UK
including the implementation of the Consumer Duty by all
subsidiaries. The Consumer Duty rules require firms to act
asset management firms, including BlackRock’s UK
to deliver good outcomes for retail customers in their
subsidiaries. The Consumer Duty rules require firms to act
manufacture and distribution of products and services, in
to deliver good outcomes for retail customers in their
respect of price and value, consumer understanding and
manufacture and distribution of products and services, in
consumer support. Any failure to meet the FCA’s
respect of price and value, consumer understanding and
regulatory expectations could expose BlackRock to
consumer support. Any failure to meet the FCA’s
regulatory sanctions and increased reputational risk.
regulatory expectations could expose BlackRock to
regulatory sanctions and increased reputational risk.
UK Stewardship Code Review
UK Stewardship Code Review
The UK Financial Reporting Council has announced a
planned review of the UK Stewardship Code in 2024 to
The UK Financial Reporting Council has announced a
consider potential revisions to address stakeholder
planned review of the UK Stewardship Code in 2024 to
concerns.
consider potential revisions to address stakeholder
concerns.
Reform of Investment Markets
Reform of Investment Markets
BlackRock is subject to numerous regulatory reform
initiatives that may affect the Company’s provision of
BlackRock is subject to numerous regulatory reform
investment services globally. In Europe, the Markets in
initiatives that may affect the Company’s provision of
Financial Instruments Directive (“MiFID”) governing the
investment services globally. In Europe, the Markets in
provision of investment services has been revised and is
Financial Instruments Directive (“MiFID”) governing the
accompanied by an associated Regulation (together with
provision of investment services has been revised and is
certain secondary regulation, “MiFID II”). The Regulation’s
accompanied by an associated Regulation (together with
requirements generally apply consistently across the EU.
certain secondary regulation, “MiFID II”). The Regulation’s
The MiFID II reforms were substantive, materially
requirements generally apply consistently across the EU.
changing market transparency requirements, enhancing
The MiFID II reforms were substantive, materially
protections afforded to investors, and increasing
changing market transparency requirements, enhancing
operational complexity for the Company. Forthcoming
protections afforded to investors, and increasing
proposals to review the operation of MiFID II and to
operational complexity for the Company. Forthcoming
develop a new EU Retail Investment Strategy may affect
proposals to review the operation of MiFID II and to
the European market structure and impact BlackRock’s
develop a new EU Retail Investment Strategy may affect
ability to operate in European markets. The broad nature
the European market structure and impact BlackRock’s
of MiFID II means future reforms could also affect product
ability to operate in European markets. The broad nature
development, client servicing and distribution models.
of MiFID II means future reforms could also affect product
Similar reforms have been implemented in Switzerland
development, client servicing and distribution models.
and Australia.
Similar reforms have been implemented in Switzerland
and Australia.
Regulatory Environm ent in China
Regulatory Environm ent in China
The Company’s operations in China are subject to a
number of regulatory risks, including an evolving
The Company’s operations in China are subject to a
regulatory environment and complex data security and
number of regulatory risks, including an evolving
data transfer regulations. These factors may increase
regulatory environment and complex data security and
compliance risk and costs, limit the Company’s ability to
data transfer regulations. These factors may increase
source and execute new investment opportunities and
compliance risk and costs, limit the Company’s ability to
lead to impairment losses on its investments. Restrictions
source and execute new investment opportunities and
on transfers of certain types of onshore data of the
lead to impairment losses on its investments. Restrictions
Company’s Chinese entities to offshore entities also may
on transfers of certain types of onshore data of the
limit BlackRock’s ability to aggregate, report and monitor
Company’s Chinese entities to offshore entities also may
limit BlackRock’s ability to aggregate, report and monitor
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
17
17
such data on its global platform. In addition, a number of
regulators in China have jurisdiction over BlackRock’s
such data on its global platform. In addition, a number of
business operations, increasing operational and
regulators in China have jurisdiction over BlackRock’s
regulatory engagement complexity. These risks may be
business operations, increasing operational and
further heightened by additional scrutiny by Chinese
regulatory engagement complexity. These risks may be
regulators of certain sectors, such as technology and
further heightened by additional scrutiny by Chinese
other industries that might be deemed to be of national
regulators of certain sectors, such as technology and
importance.
other industries that might be deemed to be of national
importance.
EXISTING US REGULATION – OVERVIEW
EXISTING US REGULATION – OVERVIEW
BlackRock and certain of its US subsidiaries are currently
subject to extensive regulation, primarily at the federal
BlackRock and certain of its US subsidiaries are currently
level, by the SEC, the DOL, the Federal Reserve, the Office
subject to extensive regulation, primarily at the federal
of the Comptroller of the Currency (“OCC”), the Financial
level, by the SEC, the DOL, the Federal Reserve, the Office
Industry Regulatory Authority (“FINRA”), the National
of the Comptroller of the Currency (“OCC”), the Financial
Futures Association (“NFA”), the FTC, the Department of
Industry Regulatory Authority (“FINRA”), the National
Justice, the CFTC and other federal government agencies
Futures Association (“NFA”), the FTC, the Department of
and regulatory bodies.
Justice, the CFTC and other federal government agencies
and regulatory bodies.
Certain of BlackRock’s US subsidiaries are also subject to
various anti-terrorist financing, privacy, anti-money
Certain of BlackRock’s US subsidiaries are also subject to
laundering and economic sanctions laws and regulations
various anti-terrorist financing, privacy, anti-money
established by various agencies. In addition, the
laundering and economic sanctions laws and regulations
Investment Advisers Act of 1940 (the “Advisers Act”)
established by various agencies. In addition, the
imposes numerous obligations on registered investment
Investment Advisers Act of 1940 (the “Advisers Act”)
advisers such as certain BlackRock subsidiaries, including
imposes numerous obligations on registered investment
record-keeping, operational and marketing requirements,
advisers such as certain BlackRock subsidiaries, including
disclosure obligations and prohibitions on fraudulent
record-keeping, operational and marketing requirements,
activities. State level regulation through attorneys general,
disclosure obligations and prohibitions on fraudulent
insurance commissioners and other state level agencies
activities. State level regulation through attorneys general,
also applies to certain BlackRock activities.
insurance commissioners and other state level agencies
also applies to certain BlackRock activities.
The Investment Company Act of 1940 (the “Investment
Company Act”) imposes stringent governance,
The Investment Company Act of 1940 (the “Investment
compliance, operational, disclosure and related
Company Act”) imposes stringent governance,
obligations on registered investment companies and their
compliance, operational, disclosure and related
investment advisers and distributors, such as certain
obligations on registered investment companies and their
BlackRock subsidiaries and affiliates. The SEC is
investment advisers and distributors, such as certain
authorized to institute proceedings and impose sanctions
BlackRock subsidiaries and affiliates. The SEC is
for violations of the Advisers Act and the Investment
authorized to institute proceedings and impose sanctions
Company Act, ranging from fines and censure to
for violations of the Advisers Act and the Investment
termination of an investment adviser’s registration.
Company Act, ranging from fines and censure to
Investment advisers also are subject to certain state
termination of an investment adviser’s registration.
securities laws and regulations. Non-compliance with the
Investment advisers also are subject to certain state
Advisers Act, the Investment Company Act or other federal
securities laws and regulations. Non-compliance with the
and state securities laws and regulations could result in
Advisers Act, the Investment Company Act or other federal
investigations, sanctions, disgorgement, fines and
and state securities laws and regulations could result in
reputational damage.
investigations, sanctions, disgorgement, fines and
reputational damage.
BlackRock’s trading and investment activities for client
accounts are regulated under the Securities Exchange Act
BlackRock’s trading and investment activities for client
of 1934, as amended (the “Exchange Act”), as well as the
accounts are regulated under the Securities Exchange Act
rules of various securities exchanges and self-regulatory
of 1934, as amended (the “Exchange Act”), as well as the
organizations, including laws governing trading on inside
rules of various securities exchanges and self-regulatory
information, market manipulation and a broad number of
organizations, including laws governing trading on inside
technical requirements (e.g., short sale limits, volume
information, market manipulation and a broad number of
limitations and reporting obligations) and market
technical requirements (e.g., short sale limits, volume
regulation policies. Violation of any of these laws and
limitations and reporting obligations) and market
regulations could result in fines or sanctions, as well as
regulation policies. Violation of any of these laws and
restrictions on BlackRock’s activities and damage to its
regulations could result in fines or sanctions, as well as
reputation. Furthermore, the Dodd-Frank Act requires one
restrictions on BlackRock’s activities and damage to its
of BlackRock’s subsidiaries, BTC, to register as a municipal
reputation. Furthermore, the Dodd-Frank Act requires one
advisor (as that term is defined in the Exchange Act) with
of BlackRock’s subsidiaries, BTC, to register as a municipal
the SEC and Municipal Securities Rulemaking Board
advisor (as that term is defined in the Exchange Act) with
(“MSRB”). BTC’s registration as a municipal advisor
the SEC and Municipal Securities Rulemaking Board
subjects BTC to additional regulation by the SEC and
(“MSRB”). BTC’s registration as a municipal advisor
MSRB.
subjects BTC to additional regulation by the SEC and
MSRB.
18 BlackRock | 2023 Form 10-K
18 BlackRock | 2023 Form 10-K
BlackRock manages a variety of private pools of capital,
including hedge funds, funds of hedge funds, private
BlackRock manages a variety of private pools of capital,
equity funds, collateralized debt obligations, collateralized
including hedge funds, funds of hedge funds, private
loan obligations, real estate funds, collective trust funds,
equity funds, collateralized debt obligations, collateralized
managed futures funds and hybrid funds. Congress,
loan obligations, real estate funds, collective trust funds,
regulators, tax authorities and others continue to explore,
managed futures funds and hybrid funds. Congress,
on their own and in response to demands from the
regulators, tax authorities and others continue to explore,
investment community and the public, increased
on their own and in response to demands from the
regulation related to private pools of capital, including
investment community and the public, increased
changes with respect to investor eligibility, certain
regulation related to private pools of capital, including
limitations on trading activities, record-keeping and
changes with respect to investor eligibility, certain
reporting, the scope of anti-fraud protections, safekeeping
limitations on trading activities, record-keeping and
of client assets and a variety of other matters. BlackRock
reporting, the scope of anti-fraud protections, safekeeping
may be materially and adversely affected by new
of client assets and a variety of other matters. BlackRock
legislation, rulemaking or changes in the interpretation or
may be materially and adversely affected by new
enforcement of existing rules and regulations imposed by
legislation, rulemaking or changes in the interpretation or
various regulators in this area.
enforcement of existing rules and regulations imposed by
various regulators in this area.
Certain BlackRock subsidiaries are subject to ERISA, and
to regulations promulgated thereunder by the DOL,
Certain BlackRock subsidiaries are subject to ERISA, and
insofar as they act as a “fiduciary” under ERISA with
to regulations promulgated thereunder by the DOL,
respect to benefit plan clients that are subject to ERISA.
insofar as they act as a “fiduciary” under ERISA with
ERISA and applicable provisions of the Internal Revenue
respect to benefit plan clients that are subject to ERISA.
Code impose certain duties on persons who are fiduciaries
ERISA and applicable provisions of the Internal Revenue
under ERISA, prohibit certain transactions involving ERISA
Code impose certain duties on persons who are fiduciaries
plan clients and impose excise taxes for violations of these
under ERISA, prohibit certain transactions involving ERISA
prohibitions, mandate certain required periodic reporting
plan clients and impose excise taxes for violations of these
and disclosures and require certain BlackRock entities to
prohibitions, mandate certain required periodic reporting
carry bonds insuring against losses caused by fraud or
and disclosures and require certain BlackRock entities to
dishonesty. ERISA also imposes additional compliance,
carry bonds insuring against losses caused by fraud or
reporting and operational requirements on BlackRock that
dishonesty. ERISA also imposes additional compliance,
otherwise are not applicable to clients that are not subject
reporting and operational requirements on BlackRock that
to ERISA.
otherwise are not applicable to clients that are not subject
to ERISA.
BlackRock has seven subsidiaries that are registered as
commodity pool operators and/or commodity trading
BlackRock has seven subsidiaries that are registered as
advisors with the CFTC and are members of the NFA. The
commodity pool operators and/or commodity trading
CFTC and NFA each administer a comparable regulatory
advisors with the CFTC and are members of the NFA. The
system covering futures contracts and various other
CFTC and NFA each administer a comparable regulatory
financial instruments, including swaps as a result of the
system covering futures contracts and various other
Dodd-Frank Act, in which certain BlackRock clients may
financial instruments, including swaps as a result of the
invest. In addition, two of BlackRock’s subsidiaries are
Dodd-Frank Act, in which certain BlackRock clients may
registered with the SEC as broker-dealers and are
invest. In addition, two of BlackRock’s subsidiaries are
member-firms of FINRA. Each broker-dealer has a
registered with the SEC as broker-dealers and are
membership agreement with FINRA that limits the scope
member-firms of FINRA. Each broker-dealer has a
of such broker-dealer’s permitted activities. One of the
membership agreement with FINRA that limits the scope
broker-dealers is also a member of the MSRB and is
of such broker-dealer’s permitted activities. One of the
subject to MSRB rules.
broker-dealers is also a member of the MSRB and is
subject to MSRB rules.
BlackRock’s business activity in California that involves
the processing of personal information is subject to the
BlackRock’s business activity in California that involves
California Consumer Privacy Act (“CCPA”) and the
the processing of personal information is subject to the
California Privacy Rights Act (“CPRA”), which provide for
California Consumer Privacy Act (“CCPA”) and the
enhanced consumer protections for California residents.
California Privacy Rights Act (“CPRA”), which provide for
The CCPA and CPRA impose obligations on BlackRock for
enhanced consumer protections for California residents.
the handling, disclosure and deletion of personal
The CCPA and CPRA impose obligations on BlackRock for
information for California residents. In addition, several
the handling, disclosure and deletion of personal
other US states have proposed or adopted similar privacy
information for California residents. In addition, several
laws. Any failure by BlackRock to comply with the CCPA,
other US states have proposed or adopted similar privacy
CPRA or similar state privacy laws may result in fines,
laws. Any failure by BlackRock to comply with the CCPA,
heightened regulatory scrutiny, litigation and/or
CPRA or similar state privacy laws may result in fines,
reputational harm.
heightened regulatory scrutiny, litigation and/or
reputational harm.
US Banking Regulation
US Banking Regulation
One of BlackRock’s subsidiaries, BTC, is organized as a
nationally-chartered limited purpose trust company that
One of BlackRock’s subsidiaries, BTC, is organized as a
does not accept deposits or make commercial loans.
nationally-chartered limited purpose trust company that
does not accept deposits or make commercial loans.
Accordingly, BTC is examined and supervised by the OCC
and is subject to various banking laws and regulations
Accordingly, BTC is examined and supervised by the OCC
enforced by the OCC, such as laws and regulations
and is subject to various banking laws and regulations
governing capital adequacy, fiduciary activities, conflicts
enforced by the OCC, such as laws and regulations
of interest, self-dealing, and the prevention of financial
governing capital adequacy, fiduciary activities, conflicts
crime, including money laundering. BTC is also a member
of interest, self-dealing, and the prevention of financial
of the Federal Reserve System and is subject to various
crime, including money laundering. BTC is also a member
Federal Reserve regulations applicable to member
of the Federal Reserve System and is subject to various
institutions, such as regulations restricting transactions
Federal Reserve regulations applicable to member
with affiliates. Many of these laws and regulations are
institutions, such as regulations restricting transactions
meant for the protection of BTC and/or BTC’s customers
with affiliates. Many of these laws and regulations are
rather than BlackRock, its affiliates or stockholders.
meant for the protection of BTC and/or BTC’s customers
rather than BlackRock, its affiliates or stockholders.
EXISTING INTERNATIONAL REGULATION –
OVERVIEW
EXISTING INTERNATIONAL REGULATION –
OVERVIEW
BlackRock’s international operations are subject to the
laws and regulations of a number of international
BlackRock’s international operations are subject to the
jurisdictions, as well as oversight by numerous regulatory
laws and regulations of a number of international
agencies and bodies in those jurisdictions. In some
jurisdictions, as well as oversight by numerous regulatory
instances, these operations are also affected by US laws
agencies and bodies in those jurisdictions. In some
and regulations that have extra-territorial application.
instances, these operations are also affected by US laws
and regulations that have extra-territorial application.
Below is a summary of certain international regulatory
standards to which BlackRock is subject. It is not meant to
Below is a summary of certain international regulatory
be comprehensive as there are parallel legal and
standards to which BlackRock is subject. It is not meant to
regulatory arrangements in force in many jurisdictions
be comprehensive as there are parallel legal and
where BlackRock’s subsidiaries conduct business.
regulatory arrangements in force in many jurisdictions
where BlackRock’s subsidiaries conduct business.
Of note among the various other international regulations
to which BlackRock is subject, are the extensive and
Of note among the various other international regulations
complex regulatory reporting requirements that
to which BlackRock is subject, are the extensive and
necessitate the monitoring and reporting of issuer
complex regulatory reporting requirements that
exposure levels (thresholds) across the holdings of
necessitate the monitoring and reporting of issuer
managed funds and accounts and those of the Company.
exposure levels (thresholds) across the holdings of
managed funds and accounts and those of the Company.
European Regulation
European Regulation
The FCA currently regulates certain BlackRock
subsidiaries in the UK. It is also responsible for the
The FCA currently regulates certain BlackRock
conduct of business regulation of the UK branch of one of
subsidiaries in the UK. It is also responsible for the
BlackRock’s US subsidiaries. In addition, the Prudential
conduct of business regulation of the UK branch of one of
Regulation Authority (“PRA”) regulates one BlackRock UK
BlackRock’s US subsidiaries. In addition, the Prudential
insurance subsidiary. Authorization by the FCA and (where
Regulation Authority (“PRA”) regulates one BlackRock UK
relevant) the PRA is required to conduct certain financial
insurance subsidiary. Authorization by the FCA and (where
services-related business in the UK under the Financial
relevant) the PRA is required to conduct certain financial
Services and Markets Act 2000 (the “FSMA”). The FCA’s
services-related business in the UK under the Financial
rules adopted under the FSMA govern the majority of a
Services and Markets Act 2000 (the “FSMA”). The FCA’s
firm’s capital and liquidity resources requirements, senior
rules adopted under the FSMA govern the majority of a
management arrangements, conduct of business
firm’s capital and liquidity resources requirements, senior
requirements, interaction with clients, and systems and
management arrangements, conduct of business
controls, whereas the rules of the PRA focus solely on the
requirements, interaction with clients, and systems and
prudential requirements that apply to BlackRock’s
controls, whereas the rules of the PRA focus solely on the
UK-based insurance subsidiary. The FCA supervises
prudential requirements that apply to BlackRock’s
BlackRock’s UK-regulated subsidiaries through a
UK-based insurance subsidiary. The FCA supervises
combination of proactive engagement, event-driven and
BlackRock’s UK-regulated subsidiaries through a
reactive supervision and thematic reviews in order to
combination of proactive engagement, event-driven and
monitor BlackRock’s compliance with regulatory
reactive supervision and thematic reviews in order to
requirements. Breaches of the FCA’s rules may result in a
monitor BlackRock’s compliance with regulatory
wide range of disciplinary actions against BlackRock’s
requirements. Breaches of the FCA’s rules may result in a
UK-regulated subsidiaries and/or its employees.
wide range of disciplinary actions against BlackRock’s
UK-regulated subsidiaries and/or its employees.
In addition, BlackRock has regulated entities in France,
Germany, Ireland, Jersey, Luxembourg, the Netherlands
In addition, BlackRock has regulated entities in France,
and Switzerland. Each of these entities is required to
Germany, Ireland, Jersey, Luxembourg, the Netherlands
comply with regulatory rules in the country in which it has
and Switzerland. Each of these entities is required to
been established, including the branches of the
comply with regulatory rules in the country in which it has
Netherlands entity which operate across the EU.
been established, including the branches of the
Netherlands entity which operate across the EU.
BlackRock’s EU subsidiaries and branches must comply
with the EU regulatory regime set out in MiFID II.
BlackRock’s EU subsidiaries and branches must comply
BlackRock’s UK-regulated subsidiaries must comply with
with the EU regulatory regime set out in MiFID II.
the UK version of MiFID II, which regulates the provision of
BlackRock’s UK-regulated subsidiaries must comply with
investment services and activities in the UK. MiFID II, and
the UK version of MiFID II, which regulates the provision of
the UK equivalent of MiFID II, set out detailed
investment services and activities in the UK. MiFID II, and
requirements governing the organization and conduct of
the UK equivalent of MiFID II, set out detailed
business of investment firms and regulated markets. The
requirements governing the organization and conduct of
legislation also includes pre- and post-trade transparency
business of investment firms and regulated markets. The
requirements for equity and non-equity markets and
legislation also includes pre- and post-trade transparency
extensive transaction reporting requirements. Certain
requirements for equity and non-equity markets and
BlackRock UK subsidiaries must also comply with the UK
extensive transaction reporting requirements. Certain
regulation which implements the Consolidated Life
BlackRock UK subsidiaries must also comply with the UK
Directive and Insurance Distribution Directive. In addition,
regulation which implements the Consolidated Life
relevant entities must comply with revised obligations on
Directive and Insurance Distribution Directive. In addition,
capital resources for certain investment firms arising out
relevant entities must comply with revised obligations on
of the IFPR. These include requirements to ensure capital
capital resources for certain investment firms arising out
adequacy, as well as matters of governance and
of the IFPR. These include requirements to ensure capital
remuneration. Relevant BlackRock entities must also
adequacy, as well as matters of governance and
comply with the requirements of the UCITS Directive and
remuneration. Relevant BlackRock entities must also
the AIFMD, as implemented in the relevant EU Member
comply with the requirements of the UCITS Directive and
States and in the UK, which impose obligations on the
the AIFMD, as implemented in the relevant EU Member
authorization and capital, conduct of business,
States and in the UK, which impose obligations on the
organization, transparency and marketing of retail and
authorization and capital, conduct of business,
alternative investment funds respectively that are sold in,
organization, transparency and marketing of retail and
or marketed to, the EU. The obligations introduced
alternative investment funds respectively that are sold in,
through these regulations and directives will affect certain
or marketed to, the EU. The obligations introduced
of BlackRock’s European operations. Compliance with the
through these regulations and directives will affect certain
UCITS Directives and the AIFMD may subject BlackRock to
of BlackRock’s European operations. Compliance with the
additional expenses associated with depositary oversight
UCITS Directives and the AIFMD may subject BlackRock to
and other organizational requirements. BlackRock’s
additional expenses associated with depositary oversight
EU-regulated subsidiaries are also subject to the
and other organizational requirements. BlackRock’s
European Market Infrastructure Regulation (“EMIR”) (or
EU-regulated subsidiaries are also subject to the
the UK version of EMIR transposed into UK law in
European Market Infrastructure Regulation (“EMIR”) (or
accordance with The European Union (Withdrawal) Act
the UK version of EMIR transposed into UK law in
2018 in the case of BlackRock’s UK-regulated
accordance with The European Union (Withdrawal) Act
subsidiaries), an EU regulation governing derivatives,
2018 in the case of BlackRock’s UK-regulated
central counterparties and trade repositories, which
subsidiaries), an EU regulation governing derivatives,
requires (1) the central clearing of certain OTC derivatives;
central counterparties and trade repositories, which
(2) the application of risk-mitigation techniques to
requires (1) the central clearing of certain OTC derivatives;
non-centrally cleared OTC derivatives (including the
(2) the application of risk-mitigation techniques to
exchange of collateral with certain counterparties); and
non-centrally cleared OTC derivatives (including the
(3) the reporting of all derivative contracts to an ESMA
exchange of collateral with certain counterparties); and
registered or recognized derivatives trade repository (or a
(3) the reporting of all derivative contracts to an ESMA
UK authorized trade repository in the case of the UK
registered or recognized derivatives trade repository (or a
version of EMIR).
UK authorized trade repository in the case of the UK
version of EMIR).
The EU has seen an increase in Common Supervisory
Actions by ESMA to coordinate supervisory action by
The EU has seen an increase in Common Supervisory
national EU regulators, most notably in areas such as
Actions by ESMA to coordinate supervisory action by
product governance, liquidity management and fund costs
national EU regulators, most notably in areas such as
and charges. BlackRock’s EU operations may be affected
product governance, liquidity management and fund costs
to the extent this initiative results in formal legislation or
and charges. BlackRock’s EU operations may be affected
action.
to the extent this initiative results in formal legislation or
action.
EU Member States, the UK and many other non-US
jurisdictions have adopted statutes and/or regulations
EU Member States, the UK and many other non-US
concerning privacy and data protection and requiring
jurisdictions have adopted statutes and/or regulations
notification of personal data security breaches if certain
concerning privacy and data protection and requiring
thresholds are met. For example, the EU adopted the
notification of personal data security breaches if certain
General Data Protection Regulation (“GDPR”), which
thresholds are met. For example, the EU adopted the
became effective in 2018, and the UK transposed the
General Data Protection Regulation (“GDPR”), which
GDPR into national law (“UK GDPR”), which became
became effective in 2018, and the UK transposed the
effective in 2021. In June 2021, the EC published a new
GDPR into national law (“UK GDPR”), which became
set of standard contractual clauses, which only apply to
effective in 2021. In June 2021, the EC published a new
the transfer of personal data outside of the EU to a
set of standard contractual clauses, which only apply to
country not approved by the EU as providing an adequate
the transfer of personal data outside of the EU to a
country not approved by the EU as providing an adequate
BlackRock | 2023 Form 10-K
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19
19
level of protection for the processing of personal data. The
EU’s adequacy decision with respect to the UK, which
level of protection for the processing of personal data. The
allows the continued flow of personal data from the EU to
EU’s adequacy decision with respect to the UK, which
the UK, will be regularly reviewed and may be revoked if
allows the continued flow of personal data from the EU to
the UK diverges from its current adequate data protection
the UK, will be regularly reviewed and may be revoked if
laws. The UK has developed its own international data
the UK diverges from its current adequate data protection
transfer agreement, which was implemented in March
laws. The UK has developed its own international data
2022. In June 2023, the EU-US Data Protection
transfer agreement, which was implemented in March
Framework came into force, which allows organizations to
2022. In June 2023, the EU-US Data Protection
self-certify their compliance under the framework for data
Framework came into force, which allows organizations to
transfers from the EU, UK and Switzerland to the US.
self-certify their compliance under the framework for data
GDPR and UK GDPR, as well as other statutes and/or
transfers from the EU, UK and Switzerland to the US.
regulations concerning privacy and data protection,
GDPR and UK GDPR, as well as other statutes and/or
increase compliance obligations, affect BlackRock’s
regulations concerning privacy and data protection,
collection, processing, retention and transfer of personal
increase compliance obligations, affect BlackRock’s
data and reporting of personal data security breaches, and
collection, processing, retention and transfer of personal
provide for increased penalties for non-compliance.
data and reporting of personal data security breaches, and
provide for increased penalties for non-compliance.
BlackRock also maintains two offices in the Middle East,
one in Dubai, which is regulated by the Dubai Financial
BlackRock also maintains two offices in the Middle East,
Services Authority, and one in Riyadh, Saudi Arabia, which
one in Dubai, which is regulated by the Dubai Financial
is regulated by the Saudi Capital Markets Authority. Both
Services Authority, and one in Riyadh, Saudi Arabia, which
offices are authorized to provide certain investment
is regulated by the Saudi Capital Markets Authority. Both
services and support BlackRock’s provision of investment
offices are authorized to provide certain investment
products and services in their countries of domicile. Other
services and support BlackRock’s provision of investment
countries across the Middle Eastern region are serviced on
products and services in their countries of domicile. Other
a cross-border basis.
countries across the Middle Eastern region are serviced on
a cross-border basis.
Regulation in the A s ia-Pacific Region
Regulation in the A s ia-Pacific Region
In Japan, a BlackRock subsidiary is subject to the
Financial Instruments and Exchange Act (“FIEA”) and the
In Japan, a BlackRock subsidiary is subject to the
Act on Investment Trusts and Investment Corporations.
Financial Instruments and Exchange Act (“FIEA”) and the
These laws are administered and enforced by the
Act on Investment Trusts and Investment Corporations.
Japanese Financial Services Agency (“JFSA”), which
These laws are administered and enforced by the
establishes standards for compliance, including capital
Japanese Financial Services Agency (“JFSA”), which
adequacy and financial soundness requirements,
establishes standards for compliance, including capital
customer protection requirements and conduct of
adequacy and financial soundness requirements,
business rules. The JFSA is empowered to conduct
customer protection requirements and conduct of
administrative proceedings that can result in censure,
business rules. The JFSA is empowered to conduct
fines, cease and desist orders or the suspension or
administrative proceedings that can result in censure,
revocation of registrations and licenses granted under the
fines, cease and desist orders or the suspension or
FIEA. This Japanese subsidiary also holds a license for real
revocation of registrations and licenses granted under the
estate brokerage activities which subjects it to the
FIEA. This Japanese subsidiary also holds a license for real
regulations set forth in the Real Estate Brokerage Act.
estate brokerage activities which subjects it to the
regulations set forth in the Real Estate Brokerage Act.
In Australia, BlackRock’s operating entity is principally
regulated under the Corporations Act 2001 (Cth) by the
In Australia, BlackRock’s operating entity is principally
Australian Securities and Investments Commission
regulated under the Corporations Act 2001 (Cth) by the
(“ASIC”), which includes holding an Australian financial
Australian Securities and Investments Commission
services license and operating registered managed
(“ASIC”), which includes holding an Australian financial
investment schemes. ASIC is Australia’s integrated
services license and operating registered managed
corporate, markets, financial services and consumer credit
investment schemes. ASIC is Australia’s integrated
regulator.
corporate, markets, financial services and consumer credit
regulator.
In New Zealand, certain BlackRock subsidiaries are
primarily regulated by the Financial Markets Authority
In New Zealand, certain BlackRock subsidiaries are
(“FMA”). The FMA is responsible for overseeing and
primarily regulated by the Financial Markets Authority
enforcing financial markets legislation including the
(“FMA”). The FMA is responsible for overseeing and
licensing of firms to provide certain financial products and
enforcing financial markets legislation including the
services in New Zealand and administering anti-money
licensing of firms to provide certain financial products and
laundering and terrorism financing legislation, amongst
services in New Zealand and administering anti-money
other functions.
laundering and terrorism financing legislation, amongst
other functions.
The activities of certain BlackRock subsidiaries in Hong
Kong are subject to the Securities and Futures Ordinance
The activities of certain BlackRock subsidiaries in Hong
(“SFO”), which governs the securities and futures markets
Kong are subject to the Securities and Futures Ordinance
and regulates, among others, offers of investments to the
(“SFO”), which governs the securities and futures markets
and regulates, among others, offers of investments to the
20 BlackRock | 2023 Form 10-K
20 BlackRock | 2023 Form 10-K
public and provides for the licensing of intermediaries.
The SFO is administered by the Securities and Futures
public and provides for the licensing of intermediaries.
Commission (“SFC”). The SFC is also empowered to
The SFO is administered by the Securities and Futures
establish standards for compliance as well as codes and
Commission (“SFC”). The SFC is also empowered to
guidelines. The relevant BlackRock subsidiaries and the
establish standards for compliance as well as codes and
employees conducting any of the regulated activities
guidelines. The relevant BlackRock subsidiaries and the
specified in the SFO are required to be licensed with the
employees conducting any of the regulated activities
SFC, and are subject to the rules, codes and guidelines
specified in the SFO are required to be licensed with the
issued by the SFC.
SFC, and are subject to the rules, codes and guidelines
issued by the SFC.
BlackRock’s operations in Taiwan are regulated by the
Taiwan Financial Supervisory Commission, which is
BlackRock’s operations in Taiwan are regulated by the
responsible for regulating securities markets (including
Taiwan Financial Supervisory Commission, which is
the Taiwan Stock Exchange and the Taiwan Futures
responsible for regulating securities markets (including
Exchange), the banking industry and the insurance sector.
the Taiwan Stock Exchange and the Taiwan Futures
Exchange), the banking industry and the insurance sector.
BlackRock’s Fund Management Company in China
(“BlackRock FMC”) is regulated by the China Securities
BlackRock’s Fund Management Company in China
Regulatory Commission and is subject to the Securities
(“BlackRock FMC”) is regulated by the China Securities
Investment Fund Law and Measures for the Supervision
Regulatory Commission and is subject to the Securities
and Administration of Mutual Fund Managers for the
Investment Fund Law and Measures for the Supervision
overall oversight from incorporation to the corporate
and Administration of Mutual Fund Managers for the
governance and operations of fund managers and funds.
overall oversight from incorporation to the corporate
BlackRock FMC is also subject to the China Securities Law
governance and operations of fund managers and funds.
and various other financial laws and regulations.
BlackRock FMC is also subject to the China Securities Law
BlackRock CCB Wealth Management Limited, which is
and various other financial laws and regulations.
BlackRock’s wealth management joint venture company
BlackRock CCB Wealth Management Limited, which is
with CCB Wealth Management Co., Ltd. and Fullerton
BlackRock’s wealth management joint venture company
Management Pte Ltd. in China, is regulated by the
with CCB Wealth Management Co., Ltd. and Fullerton
National Financial Regulatory Administration (“NFRA”,
Management Pte Ltd. in China, is regulated by the
formerly known as the China Banking and Insurance
National Financial Regulatory Administration (“NFRA”,
Regulatory Commission). They have enacted Bank Wealth
formerly known as the China Banking and Insurance
Management Supervision and Management Measures
Regulatory Commission). They have enacted Bank Wealth
and Management Measures of Bank Wealth Management
Management Supervision and Management Measures
Subsidiaries and other relevant rules to regulate the setup,
and Management Measures of Bank Wealth Management
conduct of business and risk management of bank wealth
Subsidiaries and other relevant rules to regulate the setup,
management companies.
conduct of business and risk management of bank wealth
management companies.
In Singapore, a BlackRock subsidiary is regulated by the
Monetary Authority of Singapore (“MAS”) and its business
In Singapore, a BlackRock subsidiary is regulated by the
activities are subject to the Securities and Futures Act
Monetary Authority of Singapore (“MAS”) and its business
2001 (“SFA”). The SFA governs the regulation of activities
activities are subject to the Securities and Futures Act
and institutions in the securities and derivatives industry,
2001 (“SFA”). The SFA governs the regulation of activities
including fund management, dealing in capital markets
and institutions in the securities and derivatives industry,
products and leveraged foreign exchange trading. The
including fund management, dealing in capital markets
MAS is Singapore’s central bank and integrated financial
products and leveraged foreign exchange trading. The
regulator, which regulates the financial services sector in
MAS is Singapore’s central bank and integrated financial
Singapore and conducts integrated supervision of
regulator, which regulates the financial services sector in
financial services and financial stability surveillance. This
Singapore and conducts integrated supervision of
BlackRock subsidiary and the employees conducting any
financial services and financial stability surveillance. This
of the regulated activities specified in the SFA are required
BlackRock subsidiary and the employees conducting any
to be licensed with the MAS, and are subject to the SFA
of the regulated activities specified in the SFA are required
and the regulations, rules, codes, notices and guidelines
to be licensed with the MAS, and are subject to the SFA
issued by the MAS.
and the regulations, rules, codes, notices and guidelines
issued by the MAS.
Other financial regulators oversee BlackRock subsidiaries,
branches and representative offices across the Asia-
Other financial regulators oversee BlackRock subsidiaries,
Pacific region, including in South Korea. Regulators in all
branches and representative offices across the Asia-
of these jurisdictions have authority with respect to
Pacific region, including in South Korea. Regulators in all
financial services including, among other things, the
of these jurisdictions have authority with respect to
authority to grant, suspend or cancel required licenses or
financial services including, among other things, the
registrations. In addition, these regulators may subject
authority to grant, suspend or cancel required licenses or
certain BlackRock subsidiaries to net capital
registrations. In addition, these regulators may subject
requirements.
certain BlackRock subsidiaries to net capital
requirements.
AVAILAB LE INFORMATION
AVAILAB LE INFORMATION
BlackRock files annual, quarterly and current reports,
proxy statements and all amendments to these reports
BlackRock files annual, quarterly and current reports,
and other information with the SEC. BlackRock makes
proxy statements and all amendments to these reports
available free-of-charge, on or through its website at
and other information with the SEC. BlackRock makes
https://www.blackrock.com, the Company’s Annual
available free-of-charge, on or through its website at
Reports on Form 10-K, Quarterly Reports on Form 10-Q,
https://www.blackrock.com, the Company’s Annual
Current Reports on Form 8-K, proxy statements and all
Reports on Form 10-K, Quarterly Reports on Form 10-Q,
amendments to those filings, as soon as reasonably
Current Reports on Form 8-K, proxy statements and all
practicable after such material is electronically filed with
amendments to those filings, as soon as reasonably
or furnished to the SEC. The Company also makes
practicable after such material is electronically filed with
available on its website the charters for the Audit
or furnished to the SEC. The Company also makes
Committee, Management Development and
available on its website the charters for the Audit
Compensation Committee, Nominating, Governance and
Committee, Management Development and
Sustainability Committee and Risk Committee of the
Compensation Committee, Nominating, Governance and
Board of Directors, its Code of Business Conduct and
Sustainability Committee and Risk Committee of the
Ethics, its Code of Ethics for Chief Executive and Senior
Board of Directors, its Code of Business Conduct and
Financial Officers and its Corporate Governance
Ethics, its Code of Ethics for Chief Executive and Senior
Guidelines. Further, BlackRock will provide, without
Financial Officers and its Corporate Governance
charge, upon written request, a copy of the Company’s
Guidelines. Further, BlackRock will provide, without
Annual Reports on Form 10-K, Quarterly Reports on Form
charge, upon written request, a copy of the Company’s
10-Q, Current Reports on Form 8-K, proxy statements and
Annual Reports on Form 10-K, Quarterly Reports on Form
all amendments to those filings as well as the committee
10-Q, Current Reports on Form 8-K, proxy statements and
charters, its Code of Business Conduct and Ethics, its
all amendments to those filings as well as the committee
Code of Ethics for Chief Executive and Senior Financial
charters, its Code of Business Conduct and Ethics, its
Officers and its Corporate Governance Guidelines.
Code of Ethics for Chief Executive and Senior Financial
Requests for copies should be addressed to Investor
Officers and its Corporate Governance Guidelines.
Relations, BlackRock, Inc., 50 Hudson Yards, New York,
Requests for copies should be addressed to Investor
New York 10001. Reports, proxy statements and other
Relations, BlackRock, Inc., 50 Hudson Yards, New York,
information regarding issuers that file electronically with
New York 10001. Reports, proxy statements and other
the SEC, including BlackRock’s filings, are also available to
information regarding issuers that file electronically with
the public from the SEC’s website at https://www.sec.gov.
the SEC, including BlackRock’s filings, are also available to
the public from the SEC’s website at https://www.sec.gov.
Item 1A. Risk Factors
Item 1A. Risk Factors
As a global investment management firm, risk is an
inherent part of BlackRock’s business. Global markets, by
As a global investment management firm, risk is an
their nature, are prone to uncertainty and subject
inherent part of BlackRock’s business. Global markets, by
participants to a variety of risks. While BlackRock devotes
their nature, are prone to uncertainty and subject
significant resources across all of its operations to
participants to a variety of risks. While BlackRock devotes
identify, measure, monitor, manage and analyze market,
significant resources across all of its operations to
operating, legal, compliance, reputational, fiduciary and
identify, measure, monitor, manage and analyze market,
investment risks, BlackRock’s business, financial
operating, legal, compliance, reputational, fiduciary and
condition, operating results and nonoperating results
investment risks, BlackRock’s business, financial
could be materially adversely affected and the Company’s
condition, operating results and nonoperating results
stock price could decline as a result of any of these risks
could be materially adversely affected and the Company’s
and uncertainties, including the ones discussed below.
stock price could decline as a result of any of these risks
and uncertainties, including the ones discussed below.
MARKET AND COMPETITION RISKS
MARKET AND COMPETITION RISKS
Changes in the value levels of equity, debt, real assets,
commodities, foreign exchange or other asset markets,
Changes in the value levels of equity, debt, real assets,
as well as the impact of global trade policies and tariffs,
commodities, foreign exchange or other asset markets,
may cause assets under management (“AUM”), revenue
as well as the impact of global trade policies and tariffs,
and earnings to decline.
may cause assets under management (“AUM”), revenue
and earnings to decline.
BlackRock’s investment management revenue is primarily
comprised of fees based on a percentage of the value of
BlackRock’s investment management revenue is primarily
AUM and, in some cases, performance fees which are
comprised of fees based on a percentage of the value of
normally expressed as a percentage of returns to the
AUM and, in some cases, performance fees which are
client. Numerous factors, including price movements in
normally expressed as a percentage of returns to the
the equity, debt or currency markets, or movements in the
client. Numerous factors, including price movements in
price of real assets, commodities or other alternative
the equity, debt or currency markets, or movements in the
investments in which BlackRock invests on behalf of its
price of real assets, commodities or other alternative
investments in which BlackRock invests on behalf of its
clients, as well as the impact of global fiscal, monetary and
trade policies, could cause:
clients, as well as the impact of global fiscal, monetary and
trade policies, could cause:
• the value of AUM, or BlackRock’s returns on AUM, to
• the value of AUM, or BlackRock’s returns on AUM, to
decrease;
decrease;
• client redemptions from BlackRock’s products;
• client redemptions from BlackRock’s products;
• client rebalancing or reallocating of assets into
• client rebalancing or reallocating of assets into
BlackRock products that yield lower fees;
BlackRock products that yield lower fees;
• an impairment to the value of intangible assets and
• an impairment to the value of intangible assets and
• a decrease in the value of seed or co-investment
• a decrease in the value of seed or co-investment
goodwill; or
goodwill; or
capital.
capital.
These risks may also be heightened by market volatility,
illiquid market conditions or other market disruptions. The
These risks may also be heightened by market volatility,
occurrence of any of the above events may cause the
illiquid market conditions or other market disruptions. The
Company’s AUM, revenue and earnings to decline.
occurrence of any of the above events may cause the
Company’s AUM, revenue and earnings to decline.
Changes in interest or foreign exchange rates and/or
divergent beta may cause BlackRock’s AUM and base
Changes in interest or foreign exchange rates and/or
fees to fluctuate and introduce volatility to the
divergent beta may cause BlackRock’s AUM and base
Company’s net income and operating cash flows.
fees to fluctuate and introduce volatility to the
Company’s net income and operating cash flows.
In recent years, global markets have experienced
substantial volatility, with significant downturns in both
In recent years, global markets have experienced
bond and equity markets. In addition, central banks
substantial volatility, with significant downturns in both
worldwide have raised interest rates in an effort to
bond and equity markets. In addition, central banks
moderate rising inflation. BlackRock’s business is directly
worldwide have raised interest rates in an effort to
and indirectly affected by changes in global interest rates.
moderate rising inflation. BlackRock’s business is directly
Similarly, due to the global nature of BlackRock’s
and indirectly affected by changes in global interest rates.
operations, a portion of its business is conducted in
Similarly, due to the global nature of BlackRock’s
currencies other than the United States (“US”) dollar.
operations, a portion of its business is conducted in
BlackRock’s exposure to foreign exchange rates relative to
currencies other than the United States (“US”) dollar.
the US dollar and interest rates may cause BlackRock’s
BlackRock’s exposure to foreign exchange rates relative to
AUM to fluctuate and introduce volatility to the Company’s
the US dollar and interest rates may cause BlackRock’s
base fees, net income and operating cash flows.
AUM to fluctuate and introduce volatility to the Company’s
base fees, net income and operating cash flows.
In addition, beta divergence between equity markets,
where certain markets perform differently than others,
In addition, beta divergence between equity markets,
may lead to an increase in the proportion of BlackRock
where certain markets perform differently than others,
AUM weighted toward lower fee equity products, resulting
may lead to an increase in the proportion of BlackRock
in a decline in BlackRock’s effective fee rate. Divergent
AUM weighted toward lower fee equity products, resulting
market factors may also erode the correlation between the
in a decline in BlackRock’s effective fee rate. Divergent
growth rates of AUM and base fees.
market factors may also erode the correlation between the
growth rates of AUM and base fees.
BlackRock’s investment advisory contracts may be
terminated or may not be renewed by clients and fund
BlackRock’s investment advisory contracts may be
boards on favorable terms and the liquidation of certain
terminated or may not be renewed by clients and fund
funds may be accelerated at the option of investors.
boards on favorable terms and the liquidation of certain
funds may be accelerated at the option of investors.
BlackRock derives a substantial portion of its revenue
from providing investment advisory services. The advisory
BlackRock derives a substantial portion of its revenue
or management contracts BlackRock has entered into with
from providing investment advisory services. The advisory
its clients, including the agreements that govern many of
or management contracts BlackRock has entered into with
BlackRock’s investment funds, provide investors or, in
its clients, including the agreements that govern many of
some cases, the independent directors of applicable
BlackRock’s investment funds, provide investors or, in
investment funds, with significant latitude to terminate
some cases, the independent directors of applicable
such contracts, withdraw funds or liquidate funds, or to
investment funds, with significant latitude to terminate
remove BlackRock as a fund’s investment advisor (or
such contracts, withdraw funds or liquidate funds, or to
equivalent). BlackRock also manages its US mutual funds,
remove BlackRock as a fund’s investment advisor (or
closed-end and exchange-traded funds under
equivalent). BlackRock also manages its US mutual funds,
management contracts that must be renewed and
closed-end and exchange-traded funds under
approved annually by the funds’ respective boards of
management contracts that must be renewed and
directors, a majority of whom are independent from the
approved annually by the funds’ respective boards of
Company. BlackRock’s fee arrangements under any of its
directors, a majority of whom are independent from the
advisory or management contracts may be reduced
Company. BlackRock’s fee arrangements under any of its
(including at the behest of a fund’s board of directors). In
advisory or management contracts may be reduced
(including at the behest of a fund’s board of directors). In
BlackRock | 2023 Form 10-K
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21
21
addition, shareholder activism involving closed-end funds
has increased, including public campaigns to demand
addition, shareholder activism involving closed-end funds
that a fund consider significant transactions such as a
has increased, including public campaigns to demand
tender offer, merger or liquidation or seek other actions
that a fund consider significant transactions such as a
such as the termination of the fund’s management
tender offer, merger or liquidation or seek other actions
contract. If a number of BlackRock’s clients terminate their
such as the termination of the fund’s management
contracts, or otherwise remove BlackRock from its
contract. If a number of BlackRock’s clients terminate their
advisory roles, liquidate funds or fail to renew
contracts, or otherwise remove BlackRock from its
management contracts on similar terms, the fees or
advisory roles, liquidate funds or fail to renew
carried interest BlackRock earns could be reduced, which
management contracts on similar terms, the fees or
may cause BlackRock’s AUM, revenue and earnings to
carried interest BlackRock earns could be reduced, which
decline.
may cause BlackRock’s AUM, revenue and earnings to
decline.
The failure or negative performance of products offered
by competitors may cause AUM in similar BlackRock
The failure or negative performance of products offered
products to decline irrespective of BlackRock’s
by competitors may cause AUM in similar BlackRock
performance.
products to decline irrespective of BlackRock’s
performance.
Many competitors offer similar products to those offered
by BlackRock and the failure or negative performance of
Many competitors offer similar products to those offered
competitors’ products could lead to a loss of confidence in
by BlackRock and the failure or negative performance of
similar BlackRock products, irrespective of the
competitors’ products could lead to a loss of confidence in
performance of such BlackRock products. Any loss of
similar BlackRock products, irrespective of the
confidence in a product type could lead to withdrawals,
performance of such BlackRock products. Any loss of
redemptions and liquidity issues in such products, which
confidence in a product type could lead to withdrawals,
may cause the Company’s AUM, revenue and earnings to
redemptions and liquidity issues in such products, which
decline.
may cause the Company’s AUM, revenue and earnings to
decline.
Increased competition may cause BlackRock’s AUM,
revenue and earnings to decline.
Increased competition may cause BlackRock’s AUM,
revenue and earnings to decline.
The investment management industry is highly
competitive, and BlackRock competes based on a number
The investment management industry is highly
of factors including: investment performance, liquidity, its
competitive, and BlackRock competes based on a number
technology and portfolio construction offerings, the level
of factors including: investment performance, liquidity, its
of fees charged, the quality and breadth of services and
technology and portfolio construction offerings, the level
products provided, name recognition and reputation, and
of fees charged, the quality and breadth of services and
its ability to develop new investment strategies and
products provided, name recognition and reputation, and
products to meet the changing needs of investors. In
its ability to develop new investment strategies and
addition, over the past several years, there has been
products to meet the changing needs of investors. In
continued consolidation in the asset management
addition, over the past several years, there has been
industry as investors increasingly seek out firms that have
continued consolidation in the asset management
the capacity to deliver broad multi-asset investment
industry as investors increasingly seek out firms that have
capabilities and technological expertise, including in a
the capacity to deliver broad multi-asset investment
manner that is responsive to ever more localized needs.
capabilities and technological expertise, including in a
This consolidation, together with the introduction of new
manner that is responsive to ever more localized needs.
technologies, as well as regulatory changes, continues to
This consolidation, together with the introduction of new
alter the competitive landscape for investment managers,
technologies, as well as regulatory changes, continues to
which may lead to additional fee compression or require
alter the competitive landscape for investment managers,
BlackRock to invest more to modify or adapt its product
which may lead to additional fee compression or require
offerings to attract and retain customers and remain
BlackRock to invest more to modify or adapt its product
competitive with the products, services and geographic
offerings to attract and retain customers and remain
diversity offered by other financial institutions, technology
competitive with the products, services and geographic
companies, trading, advisory or asset management firms.
diversity offered by other financial institutions, technology
Increased competition on the basis of any of these factors,
companies, trading, advisory or asset management firms.
including competition leading to fee reductions on
Increased competition on the basis of any of these factors,
existing or new business, may cause the Company’s AUM,
including competition leading to fee reductions on
revenue and earnings to decline.
existing or new business, may cause the Company’s AUM,
revenue and earnings to decline.
Failure to maintain Aladdin’s competitive position in a
dynamic market could lead to a loss of clients and could
Failure to maintain Aladdin’s competitive position in a
impede BlackRock’s productivity and growth.
dynamic market could lead to a loss of clients and could
impede BlackRock’s productivity and growth.
The sophisticated risk analytics, portfolio management,
trade execution and investment operations that BlackRock
The sophisticated risk analytics, portfolio management,
provides via its technology platform to support investment
trade execution and investment operations that BlackRock
advisory and Aladdin clients are important elements of
provides via its technology platform to support investment
advisory and Aladdin clients are important elements of
22 BlackRock | 2023 Form 10-K
22 BlackRock | 2023 Form 10-K
BlackRock’s competitive success. Aladdin’s competitive
position is based in part on its ability to combine risk
BlackRock’s competitive success. Aladdin’s competitive
analytics with portfolio management, trading and
position is based in part on its ability to combine risk
operations tools on a single platform. Increased
analytics with portfolio management, trading and
competition from risk analytics and investment
operations tools on a single platform. Increased
management technology providers, including as a result
competition from risk analytics and investment
of growing industry consolidation giving rise to
management technology providers, including as a result
competitors with increasingly sophisticated and
of growing industry consolidation giving rise to
comprehensive product offerings, or a shift in client
competitors with increasingly sophisticated and
demand toward standalone or internally developed
comprehensive product offerings, or a shift in client
solutions, whether due to price competition, perceived
demand toward standalone or internally developed
client market share, platform offerings or flexibility, or
solutions, whether due to price competition, perceived
market-based or regulatory factors, may weaken Aladdin’s
client market share, platform offerings or flexibility, or
competitive position and may cause the Company’s
market-based or regulatory factors, may weaken Aladdin’s
revenue and earnings to decline. In addition, to the extent
competitive position and may cause the Company’s
that Aladdin competitors are able to innovate more
revenue and earnings to decline. In addition, to the extent
effectively than BlackRock or leverage delivery models that
that Aladdin competitors are able to innovate more
provide clients faster time to market, lower costs or the
effectively than BlackRock or leverage delivery models that
ability to more seamlessly combine or bundle with other
provide clients faster time to market, lower costs or the
service offerings, BlackRock may lose existing clients or
ability to more seamlessly combine or bundle with other
fail to capture future market share, which may impede its
service offerings, BlackRock may lose existing clients or
productivity and growth. Moreover, although BlackRock
fail to capture future market share, which may impede its
takes steps to safeguard against infringements of its
productivity and growth. Moreover, although BlackRock
intellectual property (“IP”), there can be no assurance that
takes steps to safeguard against infringements of its
the Company will be able to effectively protect and enforce
intellectual property (“IP”), there can be no assurance that
its IP rights in Aladdin.
the Company will be able to effectively protect and enforce
its IP rights in Aladdin.
BlackRock may be unable to develop new products and
services and the development of new products and
BlackRock may be unable to develop new products and
services may expose BlackRock to reputational harm,
services and the development of new products and
additional costs or operational risk.
services may expose BlackRock to reputational harm,
additional costs or operational risk.
BlackRock’s financial performance depends, in part, on its
ability to react to changes in the asset management
BlackRock’s financial performance depends, in part, on its
industry, respond to evolving client demands and develop,
ability to react to changes in the asset management
market and manage new investment products and
industry, respond to evolving client demands and develop,
services. The development and introduction of new
market and manage new investment products and
products and services, including the creation of
services. The development and introduction of new
increasingly customizable products, requires continued
products and services, including the creation of
innovative effort on the part of BlackRock and may require
increasingly customizable products, requires continued
significant time and resources as well as ongoing support
innovative effort on the part of BlackRock and may require
and investment. Substantial risk and uncertainties are
significant time and resources as well as ongoing support
associated with the introduction of new products and
and investment. Substantial risk and uncertainties are
services, including the implementation of new and
associated with the introduction of new products and
appropriate operational controls and procedures, shifting
services, including the implementation of new and
client and market preferences, the introduction of
appropriate operational controls and procedures, shifting
competing products or services, constraints on
client and market preferences, the introduction of
BlackRock’s ability to manage growth within client
competing products or services, constraints on
mandates, compliance with regulatory and disclosure
BlackRock’s ability to manage growth within client
requirements and IP-related lawsuits or claims, which may
mandates, compliance with regulatory and disclosure
not be fully evident or identified at such time. A growing
requirements and IP-related lawsuits or claims, which may
number of BlackRock’s products and services also depend
not be fully evident or identified at such time. A growing
on data provided by third parties as analytical inputs and
number of BlackRock’s products and services also depend
are subject to additional risks, including with respect to
on data provided by third parties as analytical inputs and
data quality, cost, availability and provider relationships.
are subject to additional risks, including with respect to
Data sets for certain developing analytics, such as those in
data quality, cost, availability and provider relationships.
the sustainability space, continue to evolve and difficulties
Data sets for certain developing analytics, such as those in
approximating gaps in the data, sourcing data from
the sustainability space, continue to evolve and difficulties
reliable sources, or validating the data could adversely
approximating gaps in the data, sourcing data from
impact the accuracy and effectiveness of such analytics.
reliable sources, or validating the data could adversely
There can be no assurance that BlackRock will be able to
impact the accuracy and effectiveness of such analytics.
innovate effectively in order to develop new products or
There can be no assurance that BlackRock will be able to
services that address the needs of its clients on the
innovate effectively in order to develop new products or
timeline they require. Any failure to successfully develop
services that address the needs of its clients on the
new products and services, or effectively manage
timeline they require. Any failure to successfully develop
associated operational risks, could harm BlackRock’s
new products and services, or effectively manage
reputation and expose the Company to additional costs,
associated operational risks, could harm BlackRock’s
reputation and expose the Company to additional costs,
which may cause its AUM, revenue and earnings to
decline.
which may cause its AUM, revenue and earnings to
decline.
Changes in the value of seed and co-investments that
BlackRock owns as well as BlackRock’s minority
Changes in the value of seed and co-investments that
investments could affect its income and could increase
BlackRock owns as well as BlackRock’s minority
the volatility of its earnings.
investments could affect its income and could increase
the volatility of its earnings.
At December 31, 2023, BlackRock’s net economic
investment exposure of approximately $3.8 billion in its
At December 31, 2023, BlackRock’s net economic
investments (see Item 7, Management’s Discussion and
investment exposure of approximately $3.8 billion in its
Analysis of Financial Condition and Results of Operations-
investments (see Item 7, Management’s Discussion and
Investments) primarily resulted from co-investments and
Analysis of Financial Condition and Results of Operations-
seed investments in its sponsored investment funds.
Investments) primarily resulted from co-investments and
Movements in the equity, debt or currency markets, or in
seed investments in its sponsored investment funds.
the price of real assets, commodities or other alternative
Movements in the equity, debt or currency markets, or in
investments, could lower the value of these investments as
the price of real assets, commodities or other alternative
well as certain minority investments, increase the volatility
investments, could lower the value of these investments as
of BlackRock’s earnings and cause earnings to decline.
well as certain minority investments, increase the volatility
of BlackRock’s earnings and cause earnings to decline.
BlackRock indemnifies certain securities lending clients
for specified losses as a result of a borrower default.
BlackRock indemnifies certain securities lending clients
for specified losses as a result of a borrower default.
BlackRock provides borrower default indemnification to
certain of its securities lending clients. In the event of a
BlackRock provides borrower default indemnification to
borrower default, BlackRock would use the collateral
certain of its securities lending clients. In the event of a
pledged by the borrower to repurchase securities out on
borrower default, BlackRock would use the collateral
loan in order to replace them in a client’s account.
pledged by the borrower to repurchase securities out on
Borrower default indemnification is limited to the shortfall
loan in order to replace them in a client’s account.
that occurs in the event the collateral available at the time
Borrower default indemnification is limited to the shortfall
of the borrower’s default is insufficient to repurchase
that occurs in the event the collateral available at the time
those securities out on loan. BlackRock requires all
of the borrower’s default is insufficient to repurchase
borrowers to mark to market their pledged collateral daily
those securities out on loan. BlackRock requires all
to levels in excess of the value of the securities out on loan
borrowers to mark to market their pledged collateral daily
which mitigates the likelihood of the indemnity being
to levels in excess of the value of the securities out on loan
triggered. Where the collateral is in the form of cash, the
which mitigates the likelihood of the indemnity being
indemnities BlackRock provides do not guarantee, assume
triggered. Where the collateral is in the form of cash, the
or otherwise insure the investment performance or return
indemnities BlackRock provides do not guarantee, assume
of any cash collateral vehicle into which that cash
or otherwise insure the investment performance or return
collateral is invested. The amount of securities on loan as
of any cash collateral vehicle into which that cash
of December 31, 2023 and subject to this type of
collateral is invested. The amount of securities on loan as
indemnification was approximately $259 billion. In the
of December 31, 2023 and subject to this type of
Company’s capacity as lending agent, cash and securities
indemnification was approximately $259 billion. In the
totaling approximately $276 billion was held as collateral
Company’s capacity as lending agent, cash and securities
for indemnified securities on loan at December 31, 2023.
totaling approximately $276 billion was held as collateral
Significant borrower defaults occurring simultaneously
for indemnified securities on loan at December 31, 2023.
with rapid declines in the value of collateral pledged and/
Significant borrower defaults occurring simultaneously
or increases in the value of the securities loaned may
with rapid declines in the value of collateral pledged and/
create collateral shortfalls, which could result in material
or increases in the value of the securities loaned may
liabilities under these indemnities and may cause the
create collateral shortfalls, which could result in material
Company’s revenue and earnings to decline.
liabilities under these indemnities and may cause the
Company’s revenue and earnings to decline.
BlackRock’s decision on whether to provide support to
particular products from time to time, or the inability to
BlackRock’s decision on whether to provide support to
provide support, may cause AUM, revenue and earnings
particular products from time to time, or the inability to
to decline.
provide support, may cause AUM, revenue and earnings
to decline.
While not legally mandated, BlackRock may, at its option,
from time to time choose to seed, warehouse or otherwise
While not legally mandated, BlackRock may, at its option,
support investment products through capital or credit
from time to time choose to seed, warehouse or otherwise
support for commercial or other reasons. Any decision by
support investment products through capital or credit
BlackRock on whether to support products may utilize
support for commercial or other reasons. Any decision by
capital and liquidity that would otherwise be available for
BlackRock on whether to support products may utilize
other corporate purposes. BlackRock’s ability to seed,
capital and liquidity that would otherwise be available for
warehouse or otherwise support certain products may be
other corporate purposes. BlackRock’s ability to seed,
restricted by regulation or by the Company’s failure to
warehouse or otherwise support certain products may be
have or make available sufficient capital or liquidity.
restricted by regulation or by the Company’s failure to
have or make available sufficient capital or liquidity.
Moreover, inherent constraints arising from the business
models of certain asset managers, including BlackRock,
Moreover, inherent constraints arising from the business
may during periods of market volatility result in BlackRock
models of certain asset managers, including BlackRock,
having fewer options for accessing liquidity than asset
may during periods of market volatility result in BlackRock
managers with alternate business models, which may
having fewer options for accessing liquidity than asset
adversely impact its ability to support certain products.
managers with alternate business models, which may
Any decision by BlackRock to support particular products,
adversely impact its ability to support certain products.
or its inability or unwillingness to provide such support,
Any decision by BlackRock to support particular products,
may result in losses or affect BlackRock’s capital or
or its inability or unwillingness to provide such support,
liquidity, which may cause AUM, revenue and earnings to
may result in losses or affect BlackRock’s capital or
decline.
liquidity, which may cause AUM, revenue and earnings to
decline.
Geopolitical unrest and other events outside of
BlackRock’s control could adversely affect the global
Geopolitical unrest and other events outside of
economy or specific international, regional and domestic
BlackRock’s control could adversely affect the global
markets, which may cause BlackRock’s AUM, revenue
economy or specific international, regional and domestic
and earnings to decline.
markets, which may cause BlackRock’s AUM, revenue
and earnings to decline.
Geopolitical risks, including those arising from trade
tension and/or the imposition of trade tariffs, terrorist
Geopolitical risks, including those arising from trade
activity or acts of civil or international hostility, could have
tension and/or the imposition of trade tariffs, terrorist
an adverse impact on BlackRock. For instance, the
activity or acts of civil or international hostility, could have
Ukraine-Russia and Israel-Hamas wars and potential
an adverse impact on BlackRock. For instance, the
escalation have and may continue to result in geopolitical
Ukraine-Russia and Israel-Hamas wars and potential
instability and adversely affect the global economy, supply
escalation have and may continue to result in geopolitical
chains, specific markets and operations. Strategic
instability and adversely affect the global economy, supply
competition between the US and China and resulting
chains, specific markets and operations. Strategic
tensions and heightened levels of political polarization
competition between the US and China and resulting
have also contributed to uncertainty in the geopolitical
tensions and heightened levels of political polarization
and regulatory landscapes. Similarly, other events outside
have also contributed to uncertainty in the geopolitical
of BlackRock’s control, including natural disasters,
and regulatory landscapes. Similarly, other events outside
climate-related events, pandemics or health crises may
of BlackRock’s control, including natural disasters,
arise from time to time and be accompanied by
climate-related events, pandemics or health crises may
governmental actions that may increase international
arise from time to time and be accompanied by
tension or impact the US or global economy in ways that
governmental actions that may increase international
are uncertain. Any such events and responses, including
tension or impact the US or global economy in ways that
regulatory developments, may cause significant volatility
are uncertain. Any such events and responses, including
and declines in the global markets, disproportionate
regulatory developments, may cause significant volatility
impacts to certain industries or sectors, disruptions to
and declines in the global markets, disproportionate
commerce (including to economic activity, travel and
impacts to certain industries or sectors, disruptions to
supply chains), loss of life and property damage, and may
commerce (including to economic activity, travel and
adversely affect the global economy or capital markets, as
supply chains), loss of life and property damage, and may
well as the Company’s products, operations, clients,
adversely affect the global economy or capital markets, as
vendors and employees, which may cause BlackRock’s
well as the Company’s products, operations, clients,
AUM, revenue and earnings to decline. BlackRock’s
vendors and employees, which may cause BlackRock’s
exposure to geopolitical risks may be heightened to the
AUM, revenue and earnings to decline. BlackRock’s
extent such risks arise in countries in which BlackRock
exposure to geopolitical risks may be heightened to the
currently operates or seeks to expand its presence.
extent such risks arise in countries in which BlackRock
currently operates or seeks to expand its presence.
Climate-related risks could adversely affect BlackRock’s
business, products, operations and clients, which may
Climate-related risks could adversely affect BlackRock’s
cause BlackRock’s AUM, revenue and earnings to decline.
business, products, operations and clients, which may
cause BlackRock’s AUM, revenue and earnings to decline.
BlackRock’s business and those of its clients could be
impacted by climate-related risks. Climate-related risks
BlackRock’s business and those of its clients could be
may impact BlackRock through changes in the physical
impacted by climate-related risks. Climate-related risks
climate or from the process of transitioning to a
may impact BlackRock through changes in the physical
low-carbon economy. Climate-related physical risks arise
climate or from the process of transitioning to a
from the direct impacts of a changing climate in the
low-carbon economy. Climate-related physical risks arise
short- and long-term. Such risks may include the risks of
from the direct impacts of a changing climate in the
extreme weather events and changes in temperature,
short- and long-term. Such risks may include the risks of
which may damage infrastructure and facilities, including
extreme weather events and changes in temperature,
BlackRock’s physical assets, as well as disrupt connectivity
which may damage infrastructure and facilities, including
or supply chains. Climate-related transition risks arise
BlackRock’s physical assets, as well as disrupt connectivity
from exposure to the transition to a low-carbon economy
or supply chains. Climate-related transition risks arise
through policy, regulatory, technology and market
from exposure to the transition to a low-carbon economy
through policy, regulatory, technology and market
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
23
23
changes. For instance, new or divergent climate
regulations or guidance, as well as differing perspectives
changes. For instance, new or divergent climate
of stakeholders regarding climate impacts, have affected
regulations or guidance, as well as differing perspectives
and may continue to affect BlackRock’s business activities
of stakeholders regarding climate impacts, have affected
and reputation, increase scrutiny and complicate
and may continue to affect BlackRock’s business activities
compliance requirements, which could increase the
and reputation, increase scrutiny and complicate
Company’s costs.
compliance requirements, which could increase the
Company’s costs.
Climate-related physical and transition risks could also
impact BlackRock’s business both directly and indirectly
Climate-related physical and transition risks could also
through adverse impacts to its clients’ investments,
impact BlackRock’s business both directly and indirectly
including as a result of declines in asset values, changes
through adverse impacts to its clients’ investments,
in client preferences, increased regulatory and compliance
including as a result of declines in asset values, changes
costs and significant business disruptions. Any of these
in client preferences, increased regulatory and compliance
risks may cause the Company’s AUM, revenue and
costs and significant business disruptions. Any of these
earnings to decline.
risks may cause the Company’s AUM, revenue and
earnings to decline.
RISKS RELATED TO INVESTMENT
PERFORMANCE
RISKS RELATED TO INVESTMENT
PERFORMANCE
Poor investment performance could lead to the loss of
clients and may cause AUM, revenue and earnings to
Poor investment performance could lead to the loss of
decline.
clients and may cause AUM, revenue and earnings to
decline.
The Company’s management believes that investment
performance, including the efficient delivery of beta, is one
The Company’s management believes that investment
of the most important factors for the growth and retention
performance, including the efficient delivery of beta, is one
of AUM. Poor investment performance relative to
of the most important factors for the growth and retention
applicable portfolio benchmarks, aggregate fee levels or
of AUM. Poor investment performance relative to
competitors may cause AUM, revenue and earnings to
applicable portfolio benchmarks, aggregate fee levels or
decline as a result of:
competitors may cause AUM, revenue and earnings to
decline as a result of:
• client withdrawals in favor of better performing
• client withdrawals in favor of better performing
products offered by competitors;
products offered by competitors;
• client shifts to products that charge lower fees;
• client shifts to products that charge lower fees;
• the diminishing ability to attract additional funds
• the diminishing ability to attract additional funds
from existing and new clients;
from existing and new clients;
• reduced, minimal or no performance fees;
• reduced, minimal or no performance fees;
• an impairment to the value of intangible assets and
• an impairment to the value of intangible assets and
goodwill; or
goodwill; or
• a decrease in the valuations of seed and
• a decrease in the valuations of seed and
co-investment capital.
co-investment capital.
Performance fees may increase volatility of both revenue
and earnings.
Performance fees may increase volatility of both revenue
and earnings.
A portion of BlackRock’s revenue is derived from
performance fees on investment advisory assignments.
A portion of BlackRock’s revenue is derived from
Performance fees represented $554 million, or 3%, of total
performance fees on investment advisory assignments.
revenue for the year ended December 31, 2023. Generally,
Performance fees represented $554 million, or 3%, of total
the Company is entitled to a performance fee only if the
revenue for the year ended December 31, 2023. Generally,
agreement under which it is managing the assets provides
the Company is entitled to a performance fee only if the
for one and if returns on the related portfolio exceed
agreement under which it is managing the assets provides
agreed-upon periodic or cumulative return targets. If
for one and if returns on the related portfolio exceed
these targets are not exceeded, a performance fee for that
agreed-upon periodic or cumulative return targets. If
period will not be earned and, if targets are based on
these targets are not exceeded, a performance fee for that
cumulative returns, the Company may not earn
period will not be earned and, if targets are based on
performance fees in future periods. The volatility of the
cumulative returns, the Company may not earn
Company’s future revenue and earnings may also be
performance fees in future periods. The volatility of the
affected due to illiquid alternatives becoming an
Company’s future revenue and earnings may also be
increasing component of the overall composition of the
affected due to illiquid alternatives becoming an
Company’s performance fee generating assets. In
increasing component of the overall composition of the
particular, the Company expects that as it manages more
Company’s performance fee generating assets. In
illiquid products, its performance fees will generally be
particular, the Company expects that as it manages more
recognized over substantially longer multi-year periods
illiquid products, its performance fees will generally be
than those associated with more liquid products.
recognized over substantially longer multi-year periods
than those associated with more liquid products.
24 BlackRock | 2023 Form 10-K
24 BlackRock | 2023 Form 10-K
Failure to identify errors in the quantitative models
BlackRock utilizes to manage its business could
Failure to identify errors in the quantitative models
adversely affect product performance and client
BlackRock utilizes to manage its business could
relationships.
adversely affect product performance and client
relationships.
BlackRock employs various quantitative models to support
its investment processes, including those related to risk
BlackRock employs various quantitative models to support
assessment, portfolio management, trading and hedging
its investment processes, including those related to risk
activities and product valuations. Any errors or limitations
assessment, portfolio management, trading and hedging
in the underlying models, model inputs or assumptions,
activities and product valuations. Any errors or limitations
including those from third-party sources, as well as any
in the underlying models, model inputs or assumptions,
failure of BlackRock’s governance, approval, testing and
including those from third-party sources, as well as any
validation standards in respect of such models, model
failure of BlackRock’s governance, approval, testing and
inputs or assumptions, the failure to timely update such
validation standards in respect of such models, model
models, model inputs or assumptions or errors in how
inputs or assumptions, the failure to timely update such
such models are used, could have adverse effects on
models, model inputs or assumptions or errors in how
BlackRock’s business and reputation. These risks may be
such models are used, could have adverse effects on
heightened by the rapid growth and complexity of new
BlackRock’s business and reputation. These risks may be
models, evolving data sets and standards and market
heightened by the rapid growth and complexity of new
volatility.
models, evolving data sets and standards and market
volatility.
TECHNOLOGY A ND OPERATIONAL RISKS
TECHNOLOGY A ND OPERATIONAL RISKS
A failure in, or disruption to, BlackRock’s operations,
systems or infrastructure, including business continuity
A failure in, or disruption to, BlackRock’s operations,
plans, could adversely affect operations, damage the
systems or infrastructure, including business continuity
Company’s reputation and cause BlackRock’s AUM,
plans, could adversely affect operations, damage the
revenue and earnings to decline.
Company’s reputation and cause BlackRock’s AUM,
revenue and earnings to decline.
BlackRock’s infrastructure, including its technological
capacity, data centers and office space, is vital to the
BlackRock’s infrastructure, including its technological
competitiveness of its business. Moreover, a significant
capacity, data centers and office space, is vital to the
portion of BlackRock’s critical business operations is
competitiveness of its business. Moreover, a significant
concentrated in a limited number of geographic areas,
portion of BlackRock’s critical business operations is
including San Francisco, New York, London, Edinburgh,
concentrated in a limited number of geographic areas,
Budapest, Atlanta, Gurgaon and Belgrade. The failure to
including San Francisco, New York, London, Edinburgh,
maintain an infrastructure commensurate with the size
Budapest, Atlanta, Gurgaon and Belgrade. The failure to
and scope of BlackRock’s business, or the occurrence of a
maintain an infrastructure commensurate with the size
business outage or event outside BlackRock’s control,
and scope of BlackRock’s business, or the occurrence of a
including a major earthquake, hurricane, fire, terrorist act,
business outage or event outside BlackRock’s control,
pandemic, health crisis or other catastrophic event, or the
including a major earthquake, hurricane, fire, terrorist act,
actions of individuals or groups seeking to disrupt
pandemic, health crisis or other catastrophic event, or the
BlackRock’s operations in any location at which BlackRock
actions of individuals or groups seeking to disrupt
maintains a major presence, could materially impact
BlackRock’s operations in any location at which BlackRock
operations, result in business disruption or impede the
maintains a major presence, could materially impact
Company’s growth.
operations, result in business disruption or impede the
Company’s growth.
Despite BlackRock’s efforts to ensure business continuity,
if it fails to keep business continuity plans up-to-date or if
Despite BlackRock’s efforts to ensure business continuity,
such plans, including secure back-up facilities and
if it fails to keep business continuity plans up-to-date or if
systems and the availability of back-up employees, are
such plans, including secure back-up facilities and
improperly implemented or deployed during a disruption,
systems and the availability of back-up employees, are
the Company’s ability to operate could be adversely
improperly implemented or deployed during a disruption,
impacted which may cause AUM, revenue and earnings to
the Company’s ability to operate could be adversely
decline or impact the Company’s ability to comply with
impacted which may cause AUM, revenue and earnings to
regulatory obligations or contractual obligations leading
decline or impact the Company’s ability to comply with
to reputational harm, legal liability, regulatory fines and/or
regulatory obligations or contractual obligations leading
sanctions.
to reputational harm, legal liability, regulatory fines and/or
sanctions.
A cyber-attack or a failure to implement effective
information and cybersecurity policies, procedures and
A cyber-attack or a failure to implement effective
capabilities could disrupt operations and lead to financial
information and cybersecurity policies, procedures and
losses and reputational harm, which may cause
capabilities could disrupt operations and lead to financial
BlackRock’s AUM, revenue and earnings to decline.
losses and reputational harm, which may cause
BlackRock’s AUM, revenue and earnings to decline.
BlackRock is dependent on the effectiveness of the
information and cybersecurity policies, procedures and
BlackRock is dependent on the effectiveness of the
capabilities it maintains to protect its computer and
information and cybersecurity policies, procedures and
telecommunications systems and the data that resides on
capabilities it maintains to protect its computer and
telecommunications systems and the data that resides on
or is transmitted through them, including data provided by
third parties that is significant to portions of BlackRock’s
or is transmitted through them, including data provided by
business and products. An information security incident or
third parties that is significant to portions of BlackRock’s
disruption, such as a cyber-attack including social
business and products. An information security incident or
engineering, a phishing scam, business email compromise,
disruption, such as a cyber-attack including social
malware, denial-of-service or ransomware attack, or a failure
engineering, a phishing scam, business email compromise,
to control access to sensitive systems, could materially
malware, denial-of-service or ransomware attack, or a failure
interrupt business operations or cause disclosure or
to control access to sensitive systems, could materially
modification of sensitive or confidential client or competitive
interrupt business operations or cause disclosure or
information. Moreover, developments in BlackRock’s use of
modification of sensitive or confidential client or competitive
process automation and artificial intelligence (“AI”), as well as
information. Moreover, developments in BlackRock’s use of
the use of remote access by employees and mobile and cloud
process automation and artificial intelligence (“AI”), as well as
technologies, could heighten these and other operational
the use of remote access by employees and mobile and cloud
risks, as certain aspects of the security of such technologies
technologies, could heighten these and other operational
may be complex, unpredictable or beyond BlackRock’s
risks, as certain aspects of the security of such technologies
control. BlackRock’s growing exposure to the public Internet,
may be complex, unpredictable or beyond BlackRock’s
as well as reliance on mobile or cloud technology or any
control. BlackRock’s growing exposure to the public Internet,
failure by mobile technology and cloud service providers to
as well as reliance on mobile or cloud technology or any
adequately safeguard their systems and prevent cyber-
failure by mobile technology and cloud service providers to
attacks, could disrupt BlackRock’s operations and result in
adequately safeguard their systems and prevent cyber-
misappropriation, corruption or loss of personal, confidential
attacks, could disrupt BlackRock’s operations and result in
or proprietary information or third-party data. In addition,
misappropriation, corruption or loss of personal, confidential
there is a risk that encryption and other protective measures
or proprietary information or third-party data. In addition,
may be circumvented, particularly to the extent that new
there is a risk that encryption and other protective measures
computing technologies including quantum computing
may be circumvented, particularly to the extent that new
increase the speed and computing power available.
computing technologies including quantum computing
increase the speed and computing power available.
The financial services industry has been the subject of
cyber-attacks involving the dissemination, theft and
The financial services industry has been the subject of
destruction of corporate information or other assets, as a
cyber-attacks involving the dissemination, theft and
result of failure to follow procedures by employees or
destruction of corporate information or other assets, as a
contractors or as a result of actions by third parties,
result of failure to follow procedures by employees or
including nation state actors, terrorist organizations, cyber
contractors or as a result of actions by third parties,
criminals and hacktivists. BlackRock has been and
including nation state actors, terrorist organizations, cyber
continues to be the target of cyber-attacks, as well as the
criminals and hacktivists. BlackRock has been and
co-opting of its brand, and continues to monitor and
continues to be the target of cyber-attacks, as well as the
develop its systems to protect its technology
co-opting of its brand, and continues to monitor and
infrastructure and data from misappropriation or
develop its systems to protect its technology
corruption, as the failure to do so could disrupt
infrastructure and data from misappropriation or
BlackRock’s operations and cause financial losses.
corruption, as the failure to do so could disrupt
Advances in technology, including generative AI, and use
BlackRock’s operations and cause financial losses.
of such technology by malicious actors could heighten
Advances in technology, including generative AI, and use
these risks. Although BlackRock has implemented policies
of such technology by malicious actors could heighten
and controls, and takes protective measures involving
these risks. Although BlackRock has implemented policies
significant expense, to prevent and address potential data
and controls, and takes protective measures involving
breaches, inadvertent disclosures, increasingly
significant expense, to prevent and address potential data
sophisticated cyber-attacks and cyber-related fraud, there
breaches, inadvertent disclosures, increasingly
can be no assurance that any of these measures proves
sophisticated cyber-attacks and cyber-related fraud, there
fully effective. In addition, given the evolving nature of
can be no assurance that any of these measures proves
cyber threat actors and the increasing sophistication of
fully effective. In addition, given the evolving nature of
cyber-attack methodology, a successful cyber-attack may
cyber threat actors and the increasing sophistication of
persist for an extended period of time before being
cyber-attack methodology, a successful cyber-attack may
detected, and it may take a considerable amount of time
persist for an extended period of time before being
for an investigation to be completed and the severity and
detected, and it may take a considerable amount of time
potential impact to be known. Moreover, due to the
for an investigation to be completed and the severity and
complexity and interconnectedness of BlackRock’s
potential impact to be known. Moreover, due to the
systems, the process of upgrading or patching the
complexity and interconnectedness of BlackRock’s
Company’s protective measures could itself create a risk
systems, the process of upgrading or patching the
of security issues or system disruptions for the Company,
Company’s protective measures could itself create a risk
as well as for clients who rely upon, or have exposure to,
of security issues or system disruptions for the Company,
BlackRock’s systems.
as well as for clients who rely upon, or have exposure to,
BlackRock’s systems.
In addition, due to BlackRock’s interconnectivity with
third-party vendors, advisors, central agents, exchanges,
In addition, due to BlackRock’s interconnectivity with
clearing houses and other financial institutions,
third-party vendors, advisors, central agents, exchanges,
BlackRock or any such third party may be adversely
clearing houses and other financial institutions,
affected if any of them is subject to a successful
BlackRock or any such third party may be adversely
affected if any of them is subject to a successful
cyber-attack or other information security event, including
those arising due to the use of mobile technology or a
cyber-attack or other information security event, including
third-party cloud environment. BlackRock also routinely
those arising due to the use of mobile technology or a
transmits and receives personal, confidential or
third-party cloud environment. BlackRock also routinely
proprietary information by email and other electronic
transmits and receives personal, confidential or
means. The Company collaborates with clients, vendors
proprietary information by email and other electronic
and other third parties to develop secure transmission
means. The Company collaborates with clients, vendors
capabilities and protect against cyber-attacks. However,
and other third parties to develop secure transmission
BlackRock or such third parties may not have all
capabilities and protect against cyber-attacks. However,
appropriate controls in place to protect the confidentiality
BlackRock or such third parties may not have all
of such information.
appropriate controls in place to protect the confidentiality
of such information.
Any information security incident or cyber-attack against
BlackRock or third parties with whom it is connected,
Any information security incident or cyber-attack against
including any interception, mishandling or misuse of
BlackRock or third parties with whom it is connected,
personal, confidential or proprietary information or failure
including any interception, mishandling or misuse of
to disclose or communicate a cybersecurity incident
personal, confidential or proprietary information or failure
appropriately, could result in material financial loss, loss of
to disclose or communicate a cybersecurity incident
competitive position, regulatory fines and/or sanctions,
appropriately, could result in material financial loss, loss of
breach of client contracts, reputational harm or legal
competitive position, regulatory fines and/or sanctions,
liability, which, in turn, may cause BlackRock’s AUM,
breach of client contracts, reputational harm or legal
revenue and earnings to decline. In addition, BlackRock’s
liability, which, in turn, may cause BlackRock’s AUM,
cybersecurity insurance may not cover all losses and
revenue and earnings to decline. In addition, BlackRock’s
damages from such events and BlackRock’s ability to
cybersecurity insurance may not cover all losses and
maintain or obtain sufficient insurance coverage in the
damages from such events and BlackRock’s ability to
future may be limited.
maintain or obtain sufficient insurance coverage in the
future may be limited.
Failure or unavailability of third-party dependencies may
adversely affect Aladdin operations, which could cause
Failure or unavailability of third-party dependencies may
reputational harm, lead to a loss of clients and impede
adversely affect Aladdin operations, which could cause
BlackRock’s productivity and growth.
reputational harm, lead to a loss of clients and impede
BlackRock’s productivity and growth.
BlackRock must maintain effective infrastructure,
including a robust and secure technological framework, in
BlackRock must maintain effective infrastructure,
order to maximize the benefit of the Aladdin platform. In
including a robust and secure technological framework, in
so doing, it relies in part on certain third-party service
order to maximize the benefit of the Aladdin platform. In
providers, including for cloud hosting and technologies
so doing, it relies in part on certain third-party service
supporting cloud-based operations. For example,
providers, including for cloud hosting and technologies
Aladdin’s data architecture depends on third-party
supporting cloud-based operations. For example,
providers of technology solutions, including the ability of
Aladdin’s data architecture depends on third-party
such parties to scale and perform in response to Aladdin’s
providers of technology solutions, including the ability of
growth. In addition, the analytical capabilities of Aladdin
such parties to scale and perform in response to Aladdin’s
depend on the ability of a number of third parties to
growth. In addition, the analytical capabilities of Aladdin
provide data and other information as inputs into
depend on the ability of a number of third parties to
Aladdin’s analytical calculations. Although BlackRock has
provide data and other information as inputs into
implemented internal controls and procedures and
Aladdin’s analytical calculations. Although BlackRock has
maintains a robust vendor management program
implemented internal controls and procedures and
designed to perform diligence and monitor third parties
maintains a robust vendor management program
that support the Aladdin platform, there can be no
designed to perform diligence and monitor third parties
assurance that these measures will prove effective. Any
that support the Aladdin platform, there can be no
failure by third parties to maintain infrastructure that is
assurance that these measures will prove effective. Any
commensurate with Aladdin’s size and growth, or provide
failure by third parties to maintain infrastructure that is
the data or information required to support its varying
commensurate with Aladdin’s size and growth, or provide
capabilities, could compromise Aladdin’s resilience, result
the data or information required to support its varying
in operational difficulties, cause reputational harm and
capabilities, could compromise Aladdin’s resilience, result
adversely impact BlackRock’s ability to provide services to
in operational difficulties, cause reputational harm and
its investment advisory and Aladdin clients.
adversely impact BlackRock’s ability to provide services to
its investment advisory and Aladdin clients.
Continuing enhancements to Aladdin’s capabilities, as
well as the expansion of the Aladdin platform into new
Continuing enhancements to Aladdin’s capabilities, as
markets and geographies, have led to significant growth
well as the expansion of the Aladdin platform into new
in Aladdin’s processing scale, which may expose
markets and geographies, have led to significant growth
BlackRock to reputational harm, increased regulatory
in Aladdin’s processing scale, which may expose
scrutiny and heightened operational, data management,
BlackRock to reputational harm, increased regulatory
cyber- and information-security risks.
scrutiny and heightened operational, data management,
cyber- and information-security risks.
The operation of BlackRock’s Aladdin platform routinely
involves updating existing capabilities, configuration
The operation of BlackRock’s Aladdin platform routinely
involves updating existing capabilities, configuration
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
25
25
change management, developing, testing and rolling out
new functionalities and expanding coverage into new
change management, developing, testing and rolling out
markets and geographies, including in connection with
new functionalities and expanding coverage into new
inorganic transactions or to address client or regulatory
markets and geographies, including in connection with
requirements. These updates and expansion initiatives,
inorganic transactions or to address client or regulatory
which have led to significant growth in Aladdin’s
requirements. These updates and expansion initiatives,
processing scale, frequently occur on accelerated time
which have led to significant growth in Aladdin’s
frames and may expose BlackRock to additional cyber-
processing scale, frequently occur on accelerated time
and information-security risks, as well as increased
frames and may expose BlackRock to additional cyber-
execution, operational and data management risks. If
and information-security risks, as well as increased
BlackRock is unable to manage the pace of, or provide the
execution, operational and data management risks. If
operational resiliency and stability for, the expansion of
BlackRock is unable to manage the pace of, or provide the
Aladdin and associated growth of its processing scale,
operational resiliency and stability for, the expansion of
BlackRock may experience client attrition, reduced
Aladdin and associated growth of its processing scale,
business, increased costs, reputational harm or regulatory
BlackRock may experience client attrition, reduced
fines and/or sanctions, which may cause BlackRock’s
business, increased costs, reputational harm or regulatory
AUM, revenue and earnings to decline.
fines and/or sanctions, which may cause BlackRock’s
AUM, revenue and earnings to decline.
In addition, the highly regulated business activities of
many Aladdin clients may expose BlackRock to
In addition, the highly regulated business activities of
heightened regulatory scrutiny. For example, the changing
many Aladdin clients may expose BlackRock to
political and regulatory environment in certain
heightened regulatory scrutiny. For example, the changing
jurisdictions in which Aladdin clients are based has
political and regulatory environment in certain
required BlackRock to open new data centers in those
jurisdictions in which Aladdin clients are based has
jurisdictions in order to host client data in the client’s
required BlackRock to open new data centers in those
home location. Operating new data centers in foreign
jurisdictions in order to host client data in the client’s
jurisdictions may expose BlackRock to increased
home location. Operating new data centers in foreign
operational complexity, as well as additional regulatory
jurisdictions may expose BlackRock to increased
risks associated with the compliance requirements of such
operational complexity, as well as additional regulatory
jurisdictions. In addition, there has been increased
risks associated with the compliance requirements of such
regulatory scrutiny globally on technology and
jurisdictions. In addition, there has been increased
information providers, which may impact Aladdin and
regulatory scrutiny globally on technology and
certain functionalities and tools.
information providers, which may impact Aladdin and
certain functionalities and tools.
A failure to effectively manage the development and use
of AI, combined with an evolving regulatory environment,
A failure to effectively manage the development and use
could have an adverse effect on BlackRock’s growth,
of AI, combined with an evolving regulatory environment,
reputation or business.
could have an adverse effect on BlackRock’s growth,
reputation or business.
BlackRock uses machine learning and AI in its business
and expects to continue to expand its AI capabilities,
BlackRock uses machine learning and AI in its business
including through generative AI. AI methods are complex
and expects to continue to expand its AI capabilities,
and rapidly evolving, and the introduction of AI into new or
including through generative AI. AI methods are complex
existing processes may result in new or enhanced
and rapidly evolving, and the introduction of AI into new or
governmental or regulatory scrutiny, IP or other litigation,
existing processes may result in new or enhanced
data protection, confidentiality or information security
governmental or regulatory scrutiny, IP or other litigation,
risks, social or ethical concerns, competitive harm or other
data protection, confidentiality or information security
complications. For example, the use of datasets to develop
risks, social or ethical concerns, competitive harm or other
and test AI models, the content generated by AI systems,
complications. For example, the use of datasets to develop
or the application of AI systems may be found to be
and test AI models, the content generated by AI systems,
insufficient, biased or harmful, or lead to adverse business
or the application of AI systems may be found to be
decisions or operating errors. AI technologies, including
insufficient, biased or harmful, or lead to adverse business
generative AI, may create content that appears correct but
decisions or operating errors. AI technologies, including
is factually inaccurate or flawed. In addition, IP ownership
generative AI, may create content that appears correct but
and license rights, including copyright, surrounding AI
is factually inaccurate or flawed. In addition, IP ownership
technologies have not been fully addressed by US courts
and license rights, including copyright, surrounding AI
or federal, state or non-US laws or regulation.
technologies have not been fully addressed by US courts
Furthermore, regulation of AI technologies is evolving
or federal, state or non-US laws or regulation.
globally. Efforts around use of these technologies require
Furthermore, regulation of AI technologies is evolving
additional investment in operational controls and
globally. Efforts around use of these technologies require
procedures, development and implementation of
additional investment in operational controls and
appropriate protections and safeguards for handling the
procedures, development and implementation of
use of data with AI, including with respect to data leakage,
appropriate protections and safeguards for handling the
and regulatory compliance costs. Any failure to
use of data with AI, including with respect to data leakage,
successfully integrate AI technologies, respond to client or
and regulatory compliance costs. Any failure to
market demands or effectively manage the related risks
successfully integrate AI technologies, respond to client or
could harm BlackRock’s growth and reputation, adversely
market demands or effectively manage the related risks
impact product offerings, client interactions or business
could harm BlackRock’s growth and reputation, adversely
impact product offerings, client interactions or business
26 BlackRock | 2023 Form 10-K
26 BlackRock | 2023 Form 10-K
initiatives, and expose the Company to legal and
regulatory liabilities and additional costs, including
initiatives, and expose the Company to legal and
regulatory fines or sanctions, which may cause its AUM,
regulatory liabilities and additional costs, including
revenue and earnings to decline.
regulatory fines or sanctions, which may cause its AUM,
revenue and earnings to decline.
Failure to maintain adequate corporate and contingent
liquidity may cause BlackRock’s AUM, liquidity and
Failure to maintain adequate corporate and contingent
earnings to decline, as well as harm its prospects for
liquidity may cause BlackRock’s AUM, liquidity and
growth.
earnings to decline, as well as harm its prospects for
growth.
BlackRock’s ability to meet anticipated cash needs
depends upon a number of factors, including its
BlackRock’s ability to meet anticipated cash needs
creditworthiness and ability to generate operating cash
depends upon a number of factors, including its
flows. In addition, while BlackRock, Inc. is not subject to
creditworthiness and ability to generate operating cash
regulatory capital or liquidity requirements, certain of its
flows. In addition, while BlackRock, Inc. is not subject to
subsidiaries are subject to regulatory capital and liquidity
regulatory capital or liquidity requirements, certain of its
frameworks as well as certain other prudential
subsidiaries are subject to regulatory capital and liquidity
requirements and standards, which require them to
frameworks as well as certain other prudential
maintain certain levels of capital and liquidity. Failure to
requirements and standards, which require them to
maintain adequate liquidity could lead to unanticipated
maintain certain levels of capital and liquidity. Failure to
costs and force BlackRock to revise existing strategic and
maintain adequate liquidity could lead to unanticipated
business initiatives. BlackRock’s access to equity and debt
costs and force BlackRock to revise existing strategic and
markets and its ability to issue public or private debt, or
business initiatives. BlackRock’s access to equity and debt
secure lines of credit or commercial paper back-up lines,
markets and its ability to issue public or private debt, or
on reasonable terms may be limited by adverse market
secure lines of credit or commercial paper back-up lines,
conditions, a reduction in its long- or short-term credit
on reasonable terms may be limited by adverse market
ratings, or changes in government regulations, including
conditions, a reduction in its long- or short-term credit
tax and interest rates. Failure to obtain funds and/or
ratings, or changes in government regulations, including
financing, or any adverse change to the cost of obtaining
tax and interest rates. Failure to obtain funds and/or
such funds and/or financing, may cause BlackRock’s
financing, or any adverse change to the cost of obtaining
AUM, liquidity and earnings to decline, curtail its
such funds and/or financing, may cause BlackRock’s
operations and limit or impede its prospects for growth.
AUM, liquidity and earnings to decline, curtail its
operations and limit or impede its prospects for growth.
Operating risks associated with BlackRock’s securities
lending program may result in client losses.
Operating risks associated with BlackRock’s securities
lending program may result in client losses.
BlackRock lends securities to banks and broker-dealers on
behalf of certain of its clients. In these securities lending
BlackRock lends securities to banks and broker-dealers on
transactions, the borrower is required to provide and
behalf of certain of its clients. In these securities lending
maintain collateral at or above regulatory minimums.
transactions, the borrower is required to provide and
Securities on loan are marked to market daily to determine
maintain collateral at or above regulatory minimums.
if the borrower is required to pledge additional collateral.
Securities on loan are marked to market daily to determine
BlackRock must manage this process and is charged with
if the borrower is required to pledge additional collateral.
mitigating the associated operational risks. The failure of
BlackRock must manage this process and is charged with
BlackRock’s controls to mitigate such operational risks
mitigating the associated operational risks. The failure of
could result in financial losses for the Company’s clients
BlackRock’s controls to mitigate such operational risks
that participate in its securities lending programs
could result in financial losses for the Company’s clients
(separate from any losses related to the risks of collateral
that participate in its securities lending programs
investments), and BlackRock may be held liable for any
(separate from any losses related to the risks of collateral
failure to manage such risks.
investments), and BlackRock may be held liable for any
failure to manage such risks.
Inorganic transactions may harm the Company’s
competitive or financial position if they are not
Inorganic transactions may harm the Company’s
successful.
competitive or financial position if they are not
successful.
BlackRock employs a variety of organic and inorganic
strategies intended to enhance earnings, increase product
BlackRock employs a variety of organic and inorganic
offerings, deliver whole-portfolio solutions, access new
strategies intended to enhance earnings, increase product
clients, leverage advances in technology and expand into
offerings, deliver whole-portfolio solutions, access new
new geographies. Inorganic strategies have included
clients, leverage advances in technology and expand into
hiring smaller-sized investment teams, making minority
new geographies. Inorganic strategies have included
investments in early- to mid-stage technological and
hiring smaller-sized investment teams, making minority
other ventures, entering into strategic joint ventures and
investments in early- to mid-stage technological and
acquiring investment management and technology
other ventures, entering into strategic joint ventures and
businesses, analytics, models and other IP. Inorganic
acquiring investment management and technology
transactions involve a number of financial, accounting,
businesses, analytics, models and other IP. Inorganic
tax, regulatory, geographical and operational challenges
transactions involve a number of financial, accounting,
and uncertainties, including in some cases, the
tax, regulatory, geographical and operational challenges
and uncertainties, including in some cases, the
assumption of pre-existing liabilities, which must be
managed in order for BlackRock to realize the benefit of
assumption of pre-existing liabilities, which must be
such transactions, and such transactions may be the
managed in order for BlackRock to realize the benefit of
subject of unanticipated liabilities arising from
such transactions, and such transactions may be the
commercial disputes, information security vulnerabilities
subject of unanticipated liabilities arising from
or breaches and IP or other legal claims. The success of
commercial disputes, information security vulnerabilities
BlackRock’s inorganic strategy also depends in large part
or breaches and IP or other legal claims. The success of
on its ability to integrate the workforce, operations,
BlackRock’s inorganic strategy also depends in large part
strategies, technologies and other components of a target
on its ability to integrate the workforce, operations,
business following the completion of an acquisition.
strategies, technologies and other components of a target
BlackRock may be required to commit significant
business following the completion of an acquisition.
management time, as well as create new, or grow existing,
BlackRock may be required to commit significant
operational and support functions, to facilitate the
management time, as well as create new, or grow existing,
integration of acquired businesses, manage combined
operational and support functions, to facilitate the
future growth and maintain a cohesive corporate culture.
integration of acquired businesses, manage combined
There can be no assurance that BlackRock will be able to
future growth and maintain a cohesive corporate culture.
successfully integrate acquired businesses, retain
There can be no assurance that BlackRock will be able to
associated talent, scale support functions or realize other
successfully integrate acquired businesses, retain
intended benefits of its inorganic strategy in the
associated talent, scale support functions or realize other
timeframe BlackRock expects, or at all. Moreover, the
intended benefits of its inorganic strategy in the
challenges associated with BlackRock’s inorganic strategy
timeframe BlackRock expects, or at all. Moreover, the
may be heightened when inorganic transactions are in
challenges associated with BlackRock’s inorganic strategy
new geographic locations, involve new markets, products,
may be heightened when inorganic transactions are in
business lines or early stage investments or are delivered
new geographic locations, involve new markets, products,
via technology and systems that differ from those
business lines or early stage investments or are delivered
employed by BlackRock or that overlap with existing
via technology and systems that differ from those
BlackRock businesses. In addition, in the case of minority
employed by BlackRock or that overlap with existing
investments and joint ventures, BlackRock may be subject
BlackRock businesses. In addition, in the case of minority
to risks due to reputational harm, liability or loss resulting
investments and joint ventures, BlackRock may be subject
from, or relating to operating systems, risk management
to risks due to reputational harm, liability or loss resulting
controls, and employees that are outside of BlackRock’s
from, or relating to operating systems, risk management
control, as well as risks related to the jurisdictions or
controls, and employees that are outside of BlackRock’s
markets in which such investees or joint ventures operate.
control, as well as risks related to the jurisdictions or
For example, BlackRock has a minority investment in
markets in which such investees or joint ventures operate.
Circle Internet Financial (“Circle”), which is associated with
For example, BlackRock has a minority investment in
crypto asset markets which experienced substantial
Circle Internet Financial (“Circle”), which is associated with
volatility and high-profile enterprise failures and
crypto asset markets which experienced substantial
bankruptcies. The crypto asset markets are subject to
volatility and high-profile enterprise failures and
significant regulatory uncertainty, which could also
bankruptcies. The crypto asset markets are subject to
negatively impact BlackRock’s investment in Circle. Any
significant regulatory uncertainty, which could also
failure to identify and mitigate the risks associated with
negatively impact BlackRock’s investment in Circle. Any
acquisitions, joint ventures or minority investments
failure to identify and mitigate the risks associated with
through due diligence, governance or oversight rights,
acquisitions, joint ventures or minority investments
indemnification provisions and/or operational expertise,
through due diligence, governance or oversight rights,
or to manage the integration of acquisitions effectively,
indemnification provisions and/or operational expertise,
could result in losses or impairments related to such
or to manage the integration of acquisitions effectively,
transactions and have an adverse effect on BlackRock’s
could result in losses or impairments related to such
reputation or cause its AUM, revenue and earnings to
transactions and have an adverse effect on BlackRock’s
decline, which may harm the Company’s competitive
reputation or cause its AUM, revenue and earnings to
position in the investment management industry.
decline, which may harm the Company’s competitive
position in the investment management industry.
BlackRock is subject to risks associated with its proposed
acquisition of GIP, including completion of the
BlackRock is subject to risks associated with its proposed
acquisition in the anticipated timeframe and failure to
acquisition of GIP, including completion of the
realize anticipated benefits of the acquisition.
acquisition in the anticipated timeframe and failure to
realize anticipated benefits of the acquisition.
BlackRock is subject to risks and uncertainties associated
with its proposed acquisition of Global Infrastructure
BlackRock is subject to risks and uncertainties associated
Partners (“GIP”), including the risk that a condition to
with its proposed acquisition of Global Infrastructure
closing may not be satisfied or waived, the possibility of
Partners (“GIP”), including the risk that a condition to
failure to obtain necessary regulatory approvals, which
closing may not be satisfied or waived, the possibility of
may be outside of BlackRock’s or GIP’s control, or the
failure to obtain necessary regulatory approvals, which
possibility that the acquisition does not close in the
may be outside of BlackRock’s or GIP’s control, or the
anticipated timeframe or at all. BlackRock may not be able
possibility that the acquisition does not close in the
to realize the anticipated benefits of the acquisition,
anticipated timeframe or at all. BlackRock may not be able
including synergies, value creation or other benefits of the
to realize the anticipated benefits of the acquisition,
proposed acquisition fully or at all, or on the timeline
including synergies, value creation or other benefits of the
proposed acquisition fully or at all, or on the timeline
BlackRock expects. At times, the resources of either or
both companies or the attention of certain members of
BlackRock expects. At times, the resources of either or
their management may be focused on completion of the
both companies or the attention of certain members of
acquisition and diverted from day-to-day business
their management may be focused on completion of the
operations, which may disrupt each company’s ongoing
acquisition and diverted from day-to-day business
business. In addition, consummation of the acquisition
operations, which may disrupt each company’s ongoing
may have an adverse impact on the Company, including
business. In addition, consummation of the acquisition
from risks related to significant transaction costs,
may have an adverse impact on the Company, including
unknown liabilities, litigation and/or regulatory actions
from risks related to significant transaction costs,
related to the acquisition or if the acquired business does
unknown liabilities, litigation and/or regulatory actions
not perform as expected, which may cause BlackRock’s
related to the acquisition or if the acquired business does
AUM, revenue and earnings to decline.
not perform as expected, which may cause BlackRock’s
AUM, revenue and earnings to decline.
BlackRock’s alternatives products include investments in
early-stage companies, private equity portfolio
BlackRock’s alternatives products include investments in
companies and real assets, such as real estate,
early-stage companies, private equity portfolio
infrastructure and energy assets, which may expose
companies and real assets, such as real estate,
BlackRock and its funds and accounts to new or increased
infrastructure and energy assets, which may expose
risks and liabilities, as well as reputational harm.
BlackRock and its funds and accounts to new or increased
risks and liabilities, as well as reputational harm.
BlackRock’s alternatives products include investments in
early-stage companies, private equity portfolio companies
BlackRock’s alternatives products include investments in
and real assets, including real estate, infrastructure and
early-stage companies, private equity portfolio companies
energy assets, which may expose BlackRock and its funds
and real assets, including real estate, infrastructure and
and accounts to increased risks and liabilities that are
energy assets, which may expose BlackRock and its funds
inherent in the ownership and management of such
and accounts to increased risks and liabilities that are
investments and portfolio companies. These may include:
inherent in the ownership and management of such
investments and portfolio companies. These may include:
• risks related to the potential illiquidity, valuation and
• risks related to the potential illiquidity, valuation and
disposition of such investments;
disposition of such investments;
• risks related to emerging and less established
• risks related to emerging and less established
companies that have, among other things, short
operating histories, new technologies and products,
companies that have, among other things, short
nascent control functions, quickly evolving markets
operating histories, new technologies and products,
and limited financial resources;
nascent control functions, quickly evolving markets
and limited financial resources;
• construction risks, including as a result of force
majeure, labor disputes or work stoppages, shortages
• construction risks, including as a result of force
of material or interruptions to the availability of
majeure, labor disputes or work stoppages, shortages
necessary equipment;
of material or interruptions to the availability of
necessary equipment;
• accidents, pandemics, health crises or catastrophic
events, such as explosions, fires or terrorist activity
• accidents, pandemics, health crises or catastrophic
beyond BlackRock’s control;
events, such as explosions, fires or terrorist activity
beyond BlackRock’s control;
• climate-related risks, including greater frequency or
intensity of adverse weather and natural disasters;
• climate-related risks, including greater frequency or
intensity of adverse weather and natural disasters;
• personal injury or property damage;
• personal injury or property damage;
• failures on the part of third-party servicers and
operators, including managers and contractors,
• failures on the part of third-party servicers and
appointed in connection with investments or projects
operators, including managers and contractors,
to adequately perform their contractual duties or
appointed in connection with investments or projects
operate in accordance with applicable laws;
to adequately perform their contractual duties or
operate in accordance with applicable laws;
• risks related to investments in emerging markets,
• risks related to investments in emerging markets,
including economic and political risks and differences
in legal or regulatory environments, which may make
including economic and political risks and differences
enforcement of legal obligations more difficult;
in legal or regulatory environments, which may make
enforcement of legal obligations more difficult;
• exposure to stringent and complex non-US, federal,
state and local laws, ordinances and regulations,
• exposure to stringent and complex non-US, federal,
including those related to financial crime, permits,
state and local laws, ordinances and regulations,
government contracting, conservation, exploration
including those related to financial crime, permits,
and production, tenancy, occupational health and
government contracting, conservation, exploration
safety, foreign investment and environmental
and production, tenancy, occupational health and
protection;
safety, foreign investment and environmental
protection;
• environmental hazards, such as natural gas leaks,
• environmental hazards, such as natural gas leaks,
product and waste spills, pipeline and tank ruptures,
and unauthorized discharges of products, wastes and
product and waste spills, pipeline and tank ruptures,
other pollutants;
and unauthorized discharges of products, wastes and
other pollutants;
BlackRock | 2023 Form 10-K
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27
• changes to the supply and demand for properties and/
or tenancies or fluctuations in the price of commodities;
• changes to the supply and demand for properties and/
or tenancies or fluctuations in the price of commodities;
• risks related to the availability, cost, coverage and
• risks related to the availability, cost, coverage and
other limitations on insurance;
other limitations on insurance;
• risks related to governance and oversight, including
• risks related to governance and oversight, including
board oversight, of portfolio companies;
board oversight, of portfolio companies;
• the financial resources of tenants; and
• the financial resources of tenants; and
• contingent liabilities on disposition of investments.
• contingent liabilities on disposition of investments.
The above risks may expose BlackRock’s funds and
accounts to additional expenses and liabilities, including
The above risks may expose BlackRock’s funds and
costs associated with delays or remediation, and
accounts to additional expenses and liabilities, including
increased legal or regulatory costs, all of which could
costs associated with delays or remediation, and
impact the returns earned by BlackRock’s clients. These
increased legal or regulatory costs, all of which could
risks could also result in direct liability for BlackRock by
impact the returns earned by BlackRock’s clients. These
exposing BlackRock to losses, regulatory sanctions or
risks could also result in direct liability for BlackRock by
litigation, including claims for compensatory or punitive
exposing BlackRock to losses, regulatory sanctions or
damages. Similarly, market conditions may change during
litigation, including claims for compensatory or punitive
the course of developments or projects in which
damages. Similarly, market conditions may change during
BlackRock invests and those changes may make such
the course of developments or projects in which
developments or projects less attractive than at the time
BlackRock invests and those changes may make such
they were commenced and potentially harm the
developments or projects less attractive than at the time
investment returns of BlackRock’s clients. The occurrence
they were commenced and potentially harm the
of any such events may expose BlackRock to reputational
investment returns of BlackRock’s clients. The occurrence
harm, divert management’s attention away from
of any such events may expose BlackRock to reputational
BlackRock’s other business activities or cause its AUM,
harm, divert management’s attention away from
revenue and earnings to decline.
BlackRock’s other business activities or cause its AUM,
revenue and earnings to decline.
Operating in international markets increases BlackRock’s
operational, political, regulatory and other risks.
Operating in international markets increases BlackRock’s
operational, political, regulatory and other risks.
As a result of BlackRock’s extensive international
operations, the Company faces associated operational,
As a result of BlackRock’s extensive international
regulatory, reputational, political and foreign exchange rate
operations, the Company faces associated operational,
risks, many of which are outside of the Company’s control.
regulatory, reputational, political and foreign exchange rate
Operating outside the US may also expose BlackRock to
risks, many of which are outside of the Company’s control.
increased compliance risks, as well as higher costs to
Operating outside the US may also expose BlackRock to
comply with US and non-US anti-corruption, anti-money
increased compliance risks, as well as higher costs to
laundering and sanctions laws and regulations. Similarly,
comply with US and non-US anti-corruption, anti-money
certain jurisdictions in which BlackRock operates may not
laundering and sanctions laws and regulations. Similarly,
have comparable levels of protection for corporate assets,
certain jurisdictions in which BlackRock operates may not
such as IP, and client information and records, to the US.
have comparable levels of protection for corporate assets,
As a result, there may also be heightened information
such as IP, and client information and records, to the US.
security or privacy risks in those jurisdictions. Any theft or
As a result, there may also be heightened information
unauthorized use of data, technology or IP may negatively
security or privacy risks in those jurisdictions. Any theft or
impact BlackRock’s business operations and reputation. In
unauthorized use of data, technology or IP may negatively
addition, changes to the political or regulatory environment
impact BlackRock’s business operations and reputation. In
in a jurisdiction in which BlackRock operates, including
addition, changes to the political or regulatory environment
increased restrictions or scrutiny, may adversely impact
in a jurisdiction in which BlackRock operates, including
BlackRock’s business or operating activities. The failure of
increased restrictions or scrutiny, may adversely impact
the Company’s systems of internal control to mitigate such
BlackRock’s business or operating activities. The failure of
risks, or of its operating infrastructure to support its global
the Company’s systems of internal control to mitigate such
activities, could result in operational failures and regulatory
risks, or of its operating infrastructure to support its global
fines and/or sanctions and impede the Company’s growth,
activities, could result in operational failures and regulatory
which may cause the Company’s AUM, revenue and
fines and/or sanctions and impede the Company’s growth,
earnings to decline.
which may cause the Company’s AUM, revenue and
earnings to decline.
RISKS RELATED TO HUMAN CAPITAL
RISKS RELATED TO HUMAN CAPITAL
The potential for human error in connection with
BlackRock’s operational systems could disrupt
The potential for human error in connection with
operations, cause losses, lead to regulatory fines or
BlackRock’s operational systems could disrupt
damage the Company’s reputation and may cause
operations, cause losses, lead to regulatory fines or
BlackRock’s AUM, revenue and earnings to decline.
damage the Company’s reputation and may cause
BlackRock’s AUM, revenue and earnings to decline.
Many of BlackRock’s operations are highly complex and
are dependent on the Company’s ability to process and
Many of BlackRock’s operations are highly complex and
are dependent on the Company’s ability to process and
28 BlackRock | 2023 Form 10-K
28 BlackRock | 2023 Form 10-K
monitor a large number of transactions, many of which
occur across numerous markets and currencies at high
monitor a large number of transactions, many of which
volumes and frequencies. Although BlackRock expends
occur across numerous markets and currencies at high
considerable resources on systemic controls, supervision,
volumes and frequencies. Although BlackRock expends
technology and training in an effort to ensure that such
considerable resources on systemic controls, supervision,
transactions do not violate client guidelines and
technology and training in an effort to ensure that such
applicable rules and regulations or adversely affect
transactions do not violate client guidelines and
clients, counterparties or the Company, BlackRock’s
applicable rules and regulations or adversely affect
operations are dependent on its employees. From
clients, counterparties or the Company, BlackRock’s
time-to-time, employees make mistakes that are not
operations are dependent on its employees. From
always immediately detected by systems, controls, policies
time-to-time, employees make mistakes that are not
and procedures intended to prevent and detect such
always immediately detected by systems, controls, policies
errors. These can include calculation errors, errors in
and procedures intended to prevent and detect such
software implementation or development, failure to ensure
errors. These can include calculation errors, errors in
data security, follow processes, patch systems or timely
software implementation or development, failure to ensure
report issues, or errors in judgment. Such risks may be
data security, follow processes, patch systems or timely
exacerbated in times of increased market volatility, high
report issues, or errors in judgment. Such risks may be
trading volumes or workforce turnover. Human errors,
exacerbated in times of increased market volatility, high
even if promptly discovered and remediated, may disrupt
trading volumes or workforce turnover. Human errors,
operations or result in regulatory fines and/or sanctions,
even if promptly discovered and remediated, may disrupt
breach of client contracts, reputational harm or legal
operations or result in regulatory fines and/or sanctions,
liability, which, in turn, may cause BlackRock’s AUM,
breach of client contracts, reputational harm or legal
revenue and earnings to decline.
liability, which, in turn, may cause BlackRock’s AUM,
revenue and earnings to decline.
Fraud, the circumvention of controls or the violation of risk
management and workplace policies could have an adverse
Fraud, the circumvention of controls or the violation of risk
effect on BlackRock’s reputation, which may cause the
management and workplace policies could have an adverse
Company’s AUM, revenue and earnings to decline.
effect on BlackRock’s reputation, which may cause the
Company’s AUM, revenue and earnings to decline.
BlackRock seeks to foster a positive workplace culture, has
adopted a comprehensive risk management framework
BlackRock seeks to foster a positive workplace culture, has
and continues to enhance various controls, procedures,
adopted a comprehensive risk management framework
policies and systems to monitor and manage risks.
and continues to enhance various controls, procedures,
Notwithstanding these measures, BlackRock cannot
policies and systems to monitor and manage risks.
ensure that its workplace culture or such controls,
Notwithstanding these measures, BlackRock cannot
procedures, policies and systems will successfully identify
ensure that its workplace culture or such controls,
and manage internal and external risks and BlackRock
procedures, policies and systems will successfully identify
employees have in the past engaged in improper conduct.
and manage internal and external risks and BlackRock
In addition, BlackRock is subject to the risk that its
employees have in the past engaged in improper conduct.
employees, contractors or other third parties may in the
In addition, BlackRock is subject to the risk that its
future deliberately or recklessly seek to circumvent
employees, contractors or other third parties may in the
established controls to commit fraud, pay or solicit bribes
future deliberately or recklessly seek to circumvent
or otherwise act in ways that are inconsistent with the
established controls to commit fraud, pay or solicit bribes
Company’s controls, policies, procedures, workplace
or otherwise act in ways that are inconsistent with the
culture or principles. This risk may be heightened as
Company’s controls, policies, procedures, workplace
BlackRock expands into new markets and increases the
culture or principles. This risk may be heightened as
breadth of its business offerings, all of which introduce
BlackRock expands into new markets and increases the
additional complexity to its risk management program.
breadth of its business offerings, all of which introduce
The changing nature of the office environment, such as
additional complexity to its risk management program.
return to office arrangements and remote and alternative
The changing nature of the office environment, such as
work models, could cause employees to become
return to office arrangements and remote and alternative
disconnected with corporate culture and policies, which
work models, could cause employees to become
may increase operational issues. Persistent attempts to
disconnected with corporate culture and policies, which
circumvent policies and controls or repeated incidents
may increase operational issues. Persistent attempts to
involving fraud, conflicts of interests or transgressions of
circumvent policies and controls or repeated incidents
policies and controls could have an adverse effect on
involving fraud, conflicts of interests or transgressions of
BlackRock’s reputation, cause adverse publicity, and result
policies and controls could have an adverse effect on
in litigation, regulatory inquiries, fines and/or sanctions,
BlackRock’s reputation, cause adverse publicity, and result
which may cause the Company’s AUM, revenue and
in litigation, regulatory inquiries, fines and/or sanctions,
earnings to decline.
which may cause the Company’s AUM, revenue and
earnings to decline.
The failure to recruit, train and retain employees and
develop and implement effective executive succession
The failure to recruit, train and retain employees and
could lead to the loss of clients and may cause AUM,
develop and implement effective executive succession
revenue and earnings to decline.
could lead to the loss of clients and may cause AUM,
revenue and earnings to decline.
BlackRock’s success is largely dependent on the talents
and efforts of its highly skilled workforce and the
BlackRock’s success is largely dependent on the talents
and efforts of its highly skilled workforce and the
Company’s ability to plan for the future long-term growth
of the business by identifying and developing those
Company’s ability to plan for the future long-term growth
employees who can ultimately transition into key roles
of the business by identifying and developing those
within BlackRock. The global market for qualified fund
employees who can ultimately transition into key roles
managers, investment analysts, technology and risk
within BlackRock. The global market for qualified fund
specialists and other professionals is highly competitive,
managers, investment analysts, technology and risk
and factors that affect BlackRock’s ability to attract, train
specialists and other professionals is highly competitive,
and retain highly qualified and diverse employees include
and factors that affect BlackRock’s ability to attract, train
the Company’s reputation and workplace culture, the
and retain highly qualified and diverse employees include
immigration and public health policies in the jurisdictions
the Company’s reputation and workplace culture, the
in which BlackRock has offices, its approach to remote
immigration and public health policies in the jurisdictions
and alternative work models, the compensation and
in which BlackRock has offices, its approach to remote
benefits it provides, and its commitment to effectively
and alternative work models, the compensation and
managing executive succession, including the
benefits it provides, and its commitment to effectively
development and training of qualified individuals.
managing executive succession, including the
development and training of qualified individuals.
In addition, a percentage of the deferred compensation
that BlackRock pays to certain of its employees is tied to
In addition, a percentage of the deferred compensation
the Company’s share price. As such, decreases in
that BlackRock pays to certain of its employees is tied to
BlackRock’s share price could impair the retention value of
the Company’s share price. As such, decreases in
such deferred compensation. There can be no assurance
BlackRock’s share price could impair the retention value of
that the Company will continue to be successful in its
such deferred compensation. There can be no assurance
efforts to recruit and retain employees and effectively
that the Company will continue to be successful in its
manage executive succession. If BlackRock is unable to
efforts to recruit and retain employees and effectively
offer competitive compensation or otherwise attract,
manage executive succession. If BlackRock is unable to
develop and retain talented individuals, or if it fails to
offer competitive compensation or otherwise attract,
effectively manage executive succession, the Company’s
develop and retain talented individuals, or if it fails to
ability to compete effectively and retain its existing clients
effectively manage executive succession, the Company’s
may be materially impacted.
ability to compete effectively and retain its existing clients
may be materially impacted.
RISKS RELATED TO KEY THIRD-PARTY
RELATIONSHIPS
RISKS RELATED TO KEY THIRD-PARTY
RELATIONSHIPS
The impairment or failure of third parties may negatively
impact the performance of products and accounts that
The impairment or failure of third parties may negatively
BlackRock manages, which may cause BlackRock’s AUM,
impact the performance of products and accounts that
revenue and earnings to decline.
BlackRock manages, which may cause BlackRock’s AUM,
revenue and earnings to decline.
BlackRock’s investment management activities expose the
products and accounts it manages for its clients to many
BlackRock’s investment management activities expose the
different industries and counterparties, including
products and accounts it manages for its clients to many
distributors, brokers and dealers, commercial and
different industries and counterparties, including
investment banks, clearing organizations, mutual and
distributors, brokers and dealers, commercial and
hedge funds, and other institutional clients. Transactions
investment banks, clearing organizations, mutual and
with counterparties expose BlackRock’s clients to credit
hedge funds, and other institutional clients. Transactions
risk in the event the applicable counterparty defaults.
with counterparties expose BlackRock’s clients to credit
Although BlackRock regularly assesses risks posed by its
risk in the event the applicable counterparty defaults.
counterparties, such counterparties may be subject to
Although BlackRock regularly assesses risks posed by its
sudden swings in the financial and credit markets that
counterparties, such counterparties may be subject to
may impair their ability to perform or they may fail to meet
sudden swings in the financial and credit markets that
their obligations. Counterparties may also experience
may impair their ability to perform or they may fail to meet
lapses in their internal controls or risk management
their obligations. Counterparties may also experience
systems or expose BlackRock and/or its clients to losses
lapses in their internal controls or risk management
resulting from employee malfeasance, negligence or
systems or expose BlackRock and/or its clients to losses
human error. In addition, the concentration of certain
resulting from employee malfeasance, negligence or
financial institutions that BlackRock uses to facilitate
human error. In addition, the concentration of certain
securities and derivatives transactions for its clients,
financial institutions that BlackRock uses to facilitate
including clearing organizations, exchanges and central
securities and derivatives transactions for its clients,
agents, increases the risk that a technical or operational
including clearing organizations, exchanges and central
issue at, or default by, one such institution could introduce
agents, increases the risk that a technical or operational
operational issues or delays impacting multiple BlackRock
issue at, or default by, one such institution could introduce
clients. Any such operational issue, impairment or failure
operational issues or delays impacting multiple BlackRock
could negatively impact the performance of products that
clients. Any such operational issue, impairment or failure
BlackRock manages for its clients, which may lead to
could negatively impact the performance of products that
client attrition and, in turn, cause BlackRock’s AUM,
BlackRock manages for its clients, which may lead to
revenue and earnings to decline.
client attrition and, in turn, cause BlackRock’s AUM,
revenue and earnings to decline.
The failure of key third-party providers to BlackRock to
fulfill their obligations or a failure by BlackRock to
The failure of key third-party providers to BlackRock to
maintain its relationships with key third-party providers
fulfill their obligations or a failure by BlackRock to
could have a material adverse effect on BlackRock’s
maintain its relationships with key third-party providers
growth, reputation or business, which may cause the
could have a material adverse effect on BlackRock’s
Company’s AUM, revenue and earnings to decline.
growth, reputation or business, which may cause the
Company’s AUM, revenue and earnings to decline.
BlackRock depends on a number of key third-party
providers for various fund administration, accounting,
BlackRock depends on a number of key third-party
custody, market and environmental, social and
providers for various fund administration, accounting,
governance (“ESG”) data, market indices, insurance,
custody, market and environmental, social and
technology and AI, cloud hosting and transfer agent roles
governance (“ESG”) data, market indices, insurance,
and other distribution and operational needs. Further,
technology and AI, cloud hosting and transfer agent roles
BlackRock relies upon a relatively concentrated group of
and other distribution and operational needs. Further,
third-party index providers to deliver services that are
BlackRock relies upon a relatively concentrated group of
integral to its clients’ investment decisions. The index
third-party index providers to deliver services that are
provider industry is characterized by large vendors and the
integral to its clients’ investment decisions. The index
use of long-term contracts remains the market standard.
provider industry is characterized by large vendors and the
This industry structure may limit BlackRock’s ability to
use of long-term contracts remains the market standard.
renegotiate its index provider contracts on favorable terms
This industry structure may limit BlackRock’s ability to
or at all. While BlackRock performs focused diligence on
renegotiate its index provider contracts on favorable terms
its vendors in an effort to ensure they operate in
or at all. While BlackRock performs focused diligence on
accordance with expectations, to the extent any significant
its vendors in an effort to ensure they operate in
deficiencies are uncovered, there may be few, or no,
accordance with expectations, to the extent any significant
alternative vendors available. In addition, BlackRock’s
deficiencies are uncovered, there may be few, or no,
operations and processes rely on commercially available
alternative vendors available. In addition, BlackRock’s
data provided by third parties as well as providers of
operations and processes rely on commercially available
services, including technology services, and operating
data provided by third parties as well as providers of
errors, process delays and failures or failures to comply
services, including technology services, and operating
with data usage requirements with respect to these service
errors, process delays and failures or failures to comply
providers may adversely impact BlackRock. Data providers
with data usage requirements with respect to these service
commonly disclaim the accuracy and completeness of
providers may adversely impact BlackRock. Data providers
data and BlackRock does not have the ability to validate or
commonly disclaim the accuracy and completeness of
verify the accuracy and completeness of commercially
data and BlackRock does not have the ability to validate or
sourced datasets. Moreover, in situations where BlackRock
verify the accuracy and completeness of commercially
has limited access to alternative vendors, or where the
sourced datasets. Moreover, in situations where BlackRock
nature of BlackRock’s arrangement with a vendor requires
has limited access to alternative vendors, or where the
a long term-commitment, BlackRock may be dependent
nature of BlackRock’s arrangement with a vendor requires
on such vendor for continuous operational reliability and
a long term-commitment, BlackRock may be dependent
may be unable to avoid incurring costs if such vendor
on such vendor for continuous operational reliability and
introduces required upgrades to its services.
may be unable to avoid incurring costs if such vendor
introduces required upgrades to its services.
BlackRock may from time to time transfer key contracts
from one third-party provider to another. Key contract
BlackRock may from time to time transfer key contracts
transfers may be costly and complex and expose
from one third-party provider to another. Key contract
BlackRock to heightened operational risks. Any failure to
transfers may be costly and complex and expose
mitigate such risks could result in reputational harm, as
BlackRock to heightened operational risks. Any failure to
well as financial losses to BlackRock and its clients. The
mitigate such risks could result in reputational harm, as
failure or inability of BlackRock to diversify its sources for
well as financial losses to BlackRock and its clients. The
key services or the failure of any key third-party provider to
failure or inability of BlackRock to diversify its sources for
fulfill its obligations could result in activities inconsistent
key services or the failure of any key third-party provider to
with clients’ investment management or other
fulfill its obligations could result in activities inconsistent
agreements, have an adverse financial impact on
with clients’ investment management or other
BlackRock products or lead to operational, legal and
agreements, have an adverse financial impact on
regulatory issues for the Company, which could result in
BlackRock products or lead to operational, legal and
reputational harm or legal liability, fines and/or sanctions
regulatory issues for the Company, which could result in
and may cause BlackRock’s AUM, revenue and earnings to
reputational harm or legal liability, fines and/or sanctions
decline.
and may cause BlackRock’s AUM, revenue and earnings to
decline.
Any disruption to the Company’s distribution channels
may cause BlackRock’s AUM, revenue and earnings to
Any disruption to the Company’s distribution channels
decline.
may cause BlackRock’s AUM, revenue and earnings to
decline.
BlackRock relies on a number of third parties to provide
distribution, portfolio administration and servicing for
BlackRock relies on a number of third parties to provide
certain BlackRock investment management products and
distribution, portfolio administration and servicing for
services through their various distribution channels.
certain BlackRock investment management products and
BlackRock’s ability to maintain strong relationships with
services through their various distribution channels.
its distributors may impact the Company’s future
BlackRock’s ability to maintain strong relationships with
its distributors may impact the Company’s future
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performance, and its relationships with distributors are
subject to periodic renegotiation that may result in
performance, and its relationships with distributors are
increased distribution costs and/or reductions in the
subject to periodic renegotiation that may result in
amount of BlackRock products and services being
increased distribution costs and/or reductions in the
marketed or distributed. Moreover, new fiduciary
amount of BlackRock products and services being
regulations could lead to significant shifts in distributors’
marketed or distributed. Moreover, new fiduciary
business models and more limited product offerings,
regulations could lead to significant shifts in distributors’
potentially resulting in reduced distribution and/or
business models and more limited product offerings,
marketing of certain of the Company’s products and
potentially resulting in reduced distribution and/or
services and fee compression. If BlackRock is unable to
marketing of certain of the Company’s products and
distribute its products and services successfully or if it is
services and fee compression. If BlackRock is unable to
unable to replace or renew existing distribution
distribute its products and services successfully or if it is
arrangements, BlackRock’s AUM, revenue and earnings
unable to replace or renew existing distribution
may decline. In addition, improper activities, as well as
arrangements, BlackRock’s AUM, revenue and earnings
inadequate anti-money laundering diligence conducted
may decline. In addition, improper activities, as well as
by third-party distributors, could create reputational and
inadequate anti-money laundering diligence conducted
regulatory harm to BlackRock.
by third-party distributors, could create reputational and
regulatory harm to BlackRock.
Key technology partnerships may expose BlackRock to
increased regulatory oversight, as well as migration,
Key technology partnerships may expose BlackRock to
execution, technology and operational risks.
increased regulatory oversight, as well as migration,
execution, technology and operational risks.
In April 2020, BlackRock announced a strategic
partnership to host Aladdin infrastructure on the
In April 2020, BlackRock announced a strategic
Microsoft Azure cloud and commenced a multi-year plan
partnership to host Aladdin infrastructure on the
to migrate the Aladdin environments for BlackRock and its
Microsoft Azure cloud and commenced a multi-year plan
external Aladdin clients to the cloud. In addition,
to migrate the Aladdin environments for BlackRock and its
BlackRock has also migrated certain systems that support
external Aladdin clients to the cloud. In addition,
its corporate functions to cloud-based platforms. The
BlackRock has also migrated certain systems that support
benefits of cloud-based platforms are significant and
its corporate functions to cloud-based platforms. The
BlackRock has adopted a robust risk-based approach to
benefits of cloud-based platforms are significant and
its migration strategies; however these partnerships also
BlackRock has adopted a robust risk-based approach to
introduce new risks, including: (1) risks associated with
its migration strategies; however these partnerships also
relying on third-parties for aspects of infrastructure
introduce new risks, including: (1) risks associated with
reliability and stability; (2) software and information
relying on third-parties for aspects of infrastructure
security risks arising from the use of cloud technology;
reliability and stability; (2) software and information
(3) operational and execution risks, including those
security risks arising from the use of cloud technology;
related to migration; and (4) risks related to increased
(3) operational and execution risks, including those
regulatory oversight and new compliance obligations,
related to migration; and (4) risks related to increased
which risks may be further exacerbated as BlackRock and
regulatory oversight and new compliance obligations,
the Aladdin platform continue to grow. Failures by
which risks may be further exacerbated as BlackRock and
BlackRock to manage these risks, and/or risks associated
the Aladdin platform continue to grow. Failures by
with future potential technology partnerships, may result
BlackRock to manage these risks, and/or risks associated
in escalating costs, financial loss, client dissatisfaction or
with future potential technology partnerships, may result
attrition, regulatory fines and/or sanctions, reputational
in escalating costs, financial loss, client dissatisfaction or
harm or legal liability, which, in turn, may cause
attrition, regulatory fines and/or sanctions, reputational
BlackRock’s AUM, revenue and earnings to decline.
harm or legal liability, which, in turn, may cause
BlackRock’s AUM, revenue and earnings to decline.
Disruption to the operations of third parties whose
functions are integral to BlackRock’s exchange-traded
Disruption to the operations of third parties whose
fund (“ETF”) platform may adversely affect the prices at
functions are integral to BlackRock’s exchange-traded
which ETFs trade, particularly during periods of market
fund (“ETF”) platform may adversely affect the prices at
volatility.
which ETFs trade, particularly during periods of market
volatility.
BlackRock is the largest provider of ETFs globally. Shares
of ETFs trade on stock exchanges at prices at, above or
BlackRock is the largest provider of ETFs globally. Shares
below the ETF’s most recent net asset value (“NAV”). The
of ETFs trade on stock exchanges at prices at, above or
NAV of an ETF is calculated at least once daily, generally at
below the ETF’s most recent net asset value (“NAV”). The
the end of each business day, and fluctuates with changes
NAV of an ETF is calculated at least once daily, generally at
in the market value of the ETF’s holdings. The trading
the end of each business day, and fluctuates with changes
price of the ETF’s shares fluctuates continuously
in the market value of the ETF’s holdings. The trading
throughout trading hours. The creation/redemption
price of the ETF’s shares fluctuates continuously
feature and arbitrage mechanism of an ETF are designed
throughout trading hours. The creation/redemption
to make it more likely that the ETF’s shares normally will
feature and arbitrage mechanism of an ETF are designed
trade at prices close to the NAV. Notwithstanding these
to make it more likely that the ETF’s shares normally will
features, exchange prices have in the past deviated
trade at prices close to the NAV. Notwithstanding these
measurably from the NAV of certain ETFs and may under
features, exchange prices have in the past deviated
measurably from the NAV of certain ETFs and may under
30 BlackRock | 2023 Form 10-K
30 BlackRock | 2023 Form 10-K
certain circumstances do so in the future. ETF market
prices are subject to numerous potential risks, including
certain circumstances do so in the future. ETF market
trading halts invoked by a stock exchange, and the
prices are subject to numerous potential risks, including
inability or unwillingness of market makers, authorized
trading halts invoked by a stock exchange, and the
participants, settlement systems or other market
inability or unwillingness of market makers, authorized
participants to perform functions necessary for an ETF’s
participants, settlement systems or other market
arbitrage mechanism to function effectively. These risks
participants to perform functions necessary for an ETF’s
may be heightened as a result of significant market
arbitrage mechanism to function effectively. These risks
volatility, the growth of the ETF industry combined with
may be heightened as a result of significant market
increased market activity, as well as the complexity
volatility, the growth of the ETF industry combined with
associated with certain products or asset classes.
increased market activity, as well as the complexity
Moreover, if market events lead to incidences where ETFs
associated with certain products or asset classes.
trade at prices that deviate meaningfully from an ETF’s
Moreover, if market events lead to incidences where ETFs
NAV, or trading halts are invoked by the relevant stock
trade at prices that deviate meaningfully from an ETF’s
exchange or market, investors may lose confidence in ETF
NAV, or trading halts are invoked by the relevant stock
products and redeem their holdings, which may cause
exchange or market, investors may lose confidence in ETF
BlackRock’s AUM, revenue and earnings to decline.
products and redeem their holdings, which may cause
BlackRock’s AUM, revenue and earnings to decline.
LEGAL, REGULATORY AND REPUTATIONAL
RISKS
LEGAL, REGULATORY AND REPUTATIONAL
RISKS
BlackRock is subject to extensive regulation around the
world, which increases its cost of doing business.
BlackRock is subject to extensive regulation around the
world, which increases its cost of doing business.
BlackRock’s business is subject to extensive regulation
around the world. These regulations subject BlackRock’s
BlackRock’s business is subject to extensive regulation
business activities to an array of increasingly detailed
around the world. These regulations subject BlackRock’s
operational requirements, compliance with which is costly
business activities to an array of increasingly detailed
and complex.
operational requirements, compliance with which is costly
and complex.
In addition, many of BlackRock’s legal entities are subject
to laws and regulations aimed at preventing corruption,
In addition, many of BlackRock’s legal entities are subject
money laundering, inappropriate employment practices,
to laws and regulations aimed at preventing corruption,
illegal payments and engaging in business activities with
money laundering, inappropriate employment practices,
certain individuals, countries or groups, including but not
illegal payments and engaging in business activities with
limited to the US Foreign Corrupt Practices Act, the USA
certain individuals, countries or groups, including but not
PATRIOT Act, the Bank Secrecy Act, the EU Anti-Money
limited to the US Foreign Corrupt Practices Act, the USA
Laundering Directives, the Money Laundering, Terrorist
PATRIOT Act, the Bank Secrecy Act, the EU Anti-Money
Financing and Transfer of Funds Regulations 2017, the
Laundering Directives, the Money Laundering, Terrorist
UK Bribery Act, sanctions imposed by the US Treasury’s
Financing and Transfer of Funds Regulations 2017, the
Office of Foreign Assets Control, the United Nations and
UK Bribery Act, sanctions imposed by the US Treasury’s
the EU and its member states, as well as those imposed by
Office of Foreign Assets Control, the United Nations and
other countries in which BlackRock operates, such as His
the EU and its member states, as well as those imposed by
Majesty’s Treasury’s (“HMT”) Office of Financial Sanctions
other countries in which BlackRock operates, such as His
Implementation.
Majesty’s Treasury’s (“HMT”) Office of Financial Sanctions
Implementation.
BlackRock is also subject to certain risk retention rules
and regulation, as well as regulatory capital requirements,
BlackRock is also subject to certain risk retention rules
which require the Company to maintain capital to support
and regulation, as well as regulatory capital requirements,
certain of its businesses. Furthermore, many jurisdictions
which require the Company to maintain capital to support
in which BlackRock operates have laws and regulations
certain of its businesses. Furthermore, many jurisdictions
relating to data privacy, cybersecurity and protection of
in which BlackRock operates have laws and regulations
personal information, including the GDPR and UK GDPR,
relating to data privacy, cybersecurity and protection of
which impose stringent data protection rules for
personal information, including the GDPR and UK GDPR,
individuals within the European Economic Area (“EEA”)
which impose stringent data protection rules for
and UK, respectively, and for personal data exported
individuals within the European Economic Area (“EEA”)
outside the EEA and UK.
and UK, respectively, and for personal data exported
outside the EEA and UK.
BlackRock is additionally subject to scrutiny from various
government agencies that focus on antitrust and
BlackRock is additionally subject to scrutiny from various
competition laws and regulations within the US and
government agencies that focus on antitrust and
internationally, including in connection with merger
competition laws and regulations within the US and
control proceedings and proposed investments. Any
internationally, including in connection with merger
determination of a failure to comply with any such laws or
control proceedings and proposed investments. Any
regulations could result in fines and/or sanctions against
determination of a failure to comply with any such laws or
the Company, as well as reputational harm. Moreover, to
regulations could result in fines and/or sanctions against
the extent that these laws and regulations become more
the Company, as well as reputational harm. Moreover, to
stringent, or if BlackRock is required to hold increased
the extent that these laws and regulations become more
stringent, or if BlackRock is required to hold increased
levels of capital to support its businesses, the Company’s
financial performance or plans for growth may be
levels of capital to support its businesses, the Company’s
adversely impacted.
financial performance or plans for growth may be
adversely impacted.
BlackRock may also be adversely affected by a failure to
comply with existing laws and regulations or by changes
BlackRock may also be adversely affected by a failure to
in the interpretation or enforcement of such laws and
comply with existing laws and regulations or by changes
regulations, including those discussed above. Challenges
in the interpretation or enforcement of such laws and
associated with interpreting regulations issued in
regulations, including those discussed above. Challenges
numerous countries in a globally consistent manner may
associated with interpreting regulations issued in
add to such risks if regulators in different jurisdictions
numerous countries in a globally consistent manner may
have inconsistent views or provide only limited regulatory
add to such risks if regulators in different jurisdictions
guidance. In particular, violation of applicable laws or
have inconsistent views or provide only limited regulatory
regulations could result in fines and/or sanctions,
guidance. In particular, violation of applicable laws or
temporary or permanent prohibition of certain activities,
regulations could result in fines and/or sanctions,
reputational harm and related client terminations,
temporary or permanent prohibition of certain activities,
suspensions of employees or revocation of their licenses,
reputational harm and related client terminations,
suspension or termination of investment adviser, broker-
suspensions of employees or revocation of their licenses,
dealer or other registrations, or suspension or termination
suspension or termination of investment adviser, broker-
of BTC’s bank charter or other sanctions, which could have
dealer or other registrations, or suspension or termination
a material adverse effect on BlackRock’s reputation or
of BTC’s bank charter or other sanctions, which could have
business and may cause the Company’s AUM, revenue
a material adverse effect on BlackRock’s reputation or
and earnings to decline. For a more extensive discussion
business and may cause the Company’s AUM, revenue
of the laws, regulations and regulators to which BlackRock
and earnings to decline. For a more extensive discussion
is subject and regulated by, see Item 1, Business –
of the laws, regulations and regulators to which BlackRock
Regulation.
is subject and regulated by, see Item 1, Business –
Regulation.
New regulations informed by global standard setters
and/or developed by various national authorities may
New regulations informed by global standard setters
expose BlackRock to increasing regulatory scrutiny and
and/or developed by various national authorities may
compliance costs in the jurisdictions in which it operates.
expose BlackRock to increasing regulatory scrutiny and
compliance costs in the jurisdictions in which it operates.
Policymaking workstreams focused on the financial
services sector led by global standard setters, such as the
Policymaking workstreams focused on the financial
Financial Stability Board (“FSB”) and International
services sector led by global standard setters, such as the
Organization of Securities Commissions (“IOSCO”), may
Financial Stability Board (“FSB”) and International
lead to or inform new regulations in multiple jurisdictions
Organization of Securities Commissions (“IOSCO”), may
in which BlackRock operates. Such workstreams have
lead to or inform new regulations in multiple jurisdictions
focused on areas such as money market funds (“MMFs”),
in which BlackRock operates. Such workstreams have
open-ended funds (“OEFs”) and sustainability regulations.
focused on areas such as money market funds (“MMFs”),
BlackRock is, and may become, subject to increasing
open-ended funds (“OEFs”) and sustainability regulations.
regulation in these areas, see Item 1, Business –
BlackRock is, and may become, subject to increasing
Regulation, including:
regulation in these areas, see Item 1, Business –
Regulation, including:
• Macroprudential Policies for Asset Managers:
• Macroprudential Policies for Asset Managers:
Concerns about liquidity and leverage risks in the
asset management industry and wider market-based
Concerns about liquidity and leverage risks in the
finance sector have been heightened since the
asset management industry and wider market-based
COVID-19 pandemic and reinforced by the Liquidity
finance sector have been heightened since the
Driven Investment events in the UK. This has
COVID-19 pandemic and reinforced by the Liquidity
prompted a broad review of existing regulations
Driven Investment events in the UK. This has
globally, including an assessment of the adequacy of
prompted a broad review of existing regulations
certain structural market components in mitigating
globally, including an assessment of the adequacy of
risks by the FSB, IOSCO, the US Securities and
certain structural market components in mitigating
Exchange Commission (the “SEC”) and the Financial
risks by the FSB, IOSCO, the US Securities and
Stability Oversight Council (“FSOC”). In November
Exchange Commission (the “SEC”) and the Financial
2022, the SEC proposed amendments to rules
Stability Oversight Council (“FSOC”). In November
governing OEF liquidity risk management and swing
2022, the SEC proposed amendments to rules
pricing. The EU also proposed reforms to increase the
governing OEF liquidity risk management and swing
availability of liquidity management tools to OEFs
pricing. The EU also proposed reforms to increase the
(including MMFs), enhance reporting on the use of
availability of liquidity management tools to OEFs
liquidity management tools by OEFs to national
(including MMFs), enhance reporting on the use of
regulators and allow such regulators to require OEF
liquidity management tools by OEFs to national
managers to activate liquidity management tools in
regulators and allow such regulators to require OEF
extreme market conditions. Meanwhile, the UK
managers to activate liquidity management tools in
proposed introducing liquidity facilities to certain
extreme market conditions. Meanwhile, the UK
asset owners, which could result in regulatory
proposed introducing liquidity facilities to certain
burdens on asset managers. If any of these regulatory
asset owners, which could result in regulatory
burdens on asset managers. If any of these regulatory
or policy actions result in broad application of
macroprudential tools to OEFs or require changes to
or policy actions result in broad application of
structural features of certain OEFs, it could limit
macroprudential tools to OEFs or require changes to
BlackRock’s ability to offer products to certain clients
structural features of certain OEFs, it could limit
and/or result in clients altering their investment
BlackRock’s ability to offer products to certain clients
strategies or allocations in a manner that is adverse to
and/or result in clients altering their investment
BlackRock.
strategies or allocations in a manner that is adverse to
BlackRock.
• Global MMF Reforms: Following the market events of
March 2020, US, UK and EU authorities initiated a
• Global MMF Reforms: Following the market events of
review of existing regulatory frameworks with the aim
March 2020, US, UK and EU authorities initiated a
of improving the resilience of MMFs in market
review of existing regulatory frameworks with the aim
downturns. In the US, the SEC adopted changes to
of improving the resilience of MMFs in market
Rule 2a-7, the primary rule under the Investment
downturns. In the US, the SEC adopted changes to
Company Act of 1940 governing MMFs, including
Rule 2a-7, the primary rule under the Investment
changes to required liquidity levels and certain
Company Act of 1940 governing MMFs, including
operational aspects of such funds, and requiring
changes to required liquidity levels and certain
mandatory liquidity fees under certain circumstances.
operational aspects of such funds, and requiring
The UK released a consultation in December 2023
mandatory liquidity fees under certain circumstances.
indicating their intent to change regulatory
The UK released a consultation in December 2023
requirements for MMFs domiciled or marketed in the
indicating their intent to change regulatory
UK, including material increases in required liquidity
requirements for MMFs domiciled or marketed in the
levels. Although EU authorities stated in July 2023
UK, including material increases in required liquidity
that they would not re-open the EU regulatory
levels. Although EU authorities stated in July 2023
framework for MMFs in the near term, the UK’s
that they would not re-open the EU regulatory
proposed changes may increase pressure to
framework for MMFs in the near term, the UK’s
implement similar reforms as the vast majority of
proposed changes may increase pressure to
MMFs sold in the UK are EU-domiciled and regulated.
implement similar reforms as the vast majority of
Such regulatory reforms could significantly and
MMFs sold in the UK are EU-domiciled and regulated.
adversely impact certain of BlackRock’s MMF
Such regulatory reforms could significantly and
products.
adversely impact certain of BlackRock’s MMF
products.
• ESG and Sustainability: ESG and sustainability have
• ESG and Sustainability: ESG and sustainability have
been the subject of increased regulatory focus across
jurisdictions. The International Sustainability
been the subject of increased regulatory focus across
Standards Board (“ISSB”) released its first two
jurisdictions. The International Sustainability
disclosure standards in 2023, which may inform
Standards Board (“ISSB”) released its first two
national regulators’ approaches. For example, the UK,
disclosure standards in 2023, which may inform
Singapore, Hong Kong, Taiwan and Australia have
national regulators’ approaches. For example, the UK,
already indicated their intention to endorse these
Singapore, Hong Kong, Taiwan and Australia have
standards. In the US, the SEC has proposed a series of
already indicated their intention to endorse these
rules that would require, among other things:
standards. In the US, the SEC has proposed a series of
(1) corporate issuers to make substantial climate-
rules that would require, among other things:
related disclosures in periodic reports, including with
(1) corporate issuers to make substantial climate-
respect to governance, risk management, business
related disclosures in periodic reports, including with
strategy, financial statement metrics and greenhouse
respect to governance, risk management, business
gas (“GHG”) emissions and (2) enhanced ESG
strategy, financial statement metrics and greenhouse
disclosures by investment companies and investment
gas (“GHG”) emissions and (2) enhanced ESG
advisers in fund and adviser filings, including
disclosures by investment companies and investment
disclosures on ESG strategies and how ESG factors
advisers in fund and adviser filings, including
are considered, and GHG emissions disclosure by
disclosures on ESG strategies and how ESG factors
certain environmentally focused funds. Furthermore,
are considered, and GHG emissions disclosure by
the SEC has announced plans to propose rules to
certain environmentally focused funds. Furthermore,
require enhanced disclosure regarding human capital
the SEC has announced plans to propose rules to
management and board diversity for public issuers. It
require enhanced disclosure regarding human capital
has also increased scrutiny of disclosure and
management and board diversity for public issuers. It
compliance issues relating to investment advisers’
has also increased scrutiny of disclosure and
and funds’ ESG strategies, policies and procedures. In
compliance issues relating to investment advisers’
addition, the US Department of Labor (“DOL”) issued
and funds’ ESG strategies, policies and procedures. In
final rules clarifying that Employee Retirement
addition, the US Department of Labor (“DOL”) issued
Income Security Act of 1974, as amended (“ERISA”)
final rules clarifying that Employee Retirement
plan fiduciaries can, but are not required to, consider
Income Security Act of 1974, as amended (“ERISA”)
the economic effects of ESG factors for purposes of
plan fiduciaries can, but are not required to, consider
investing ERISA plan assets and exercising voting
the economic effects of ESG factors for purposes of
rights with respect to plan investments. Moreover,
investing ERISA plan assets and exercising voting
California passed several laws in 2023 that will
rights with respect to plan investments. Moreover,
require companies doing business in California to
California passed several laws in 2023 that will
require companies doing business in California to
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
31
31
make certain types of climate-related disclosures, and
other states may adopt similar laws.
make certain types of climate-related disclosures, and
other states may adopt similar laws.
The EU has enacted numerous regulations on ESG
and sustainability, including on sustainability-related
The EU has enacted numerous regulations on ESG
disclosures by financial market participants;
and sustainability, including on sustainability-related
integration of sustainability considerations into
disclosures by financial market participants;
investment and risk management processes of asset
integration of sustainability considerations into
managers and other institutional investors; making
investment and risk management processes of asset
the advice and financial product distribution process
managers and other institutional investors; making
more receptive to end-investor sustainability
the advice and financial product distribution process
preferences; and requiring asset managers to report
more receptive to end-investor sustainability
against an EU-wide taxonomy of environmentally
preferences; and requiring asset managers to report
sustainable activities and make detailed disclosures
against an EU-wide taxonomy of environmentally
relating to ESG characteristics of funds and portfolios.
sustainable activities and make detailed disclosures
Further regulations include the Corporate
relating to ESG characteristics of funds and portfolios.
Sustainability Reporting Directive, which will require
Further regulations include the Corporate
enhanced sustainability reporting for EU-based
Sustainability Reporting Directive, which will require
corporate issuers, with phased implementation
enhanced sustainability reporting for EU-based
beginning in 2024 and for a wider group of global
corporate issuers, with phased implementation
companies from 2028. In December 2023, the EU
beginning in 2024 and for a wider group of global
reached provisional agreement on a directive, which if
companies from 2028. In December 2023, the EU
adopted in its current form, would require a wide
reached provisional agreement on a directive, which if
group of European and global companies to provide
adopted in its current form, would require a wide
transition plans and conduct due diligence on the
group of European and global companies to provide
sustainability of their suppliers. The EU and the UK
transition plans and conduct due diligence on the
Financial Conduct Authority (“FCA”) are also
sustainability of their suppliers. The EU and the UK
developing rules and guidelines for the use of ESG or
Financial Conduct Authority (“FCA”) are also
sustainability related terms in fund names, focused
developing rules and guidelines for the use of ESG or
on specifying a minimum threshold of assets meeting
sustainability related terms in fund names, focused
ESG or sustainable criteria for such funds. Within the
on specifying a minimum threshold of assets meeting
UK, the FCA has proposed UK-specific sustainability
ESG or sustainable criteria for such funds. Within the
regulations, including a sustainable product
UK, the FCA has proposed UK-specific sustainability
classification system for funds and enhanced
regulations, including a sustainable product
disclosure requirements, which are expected to apply
classification system for funds and enhanced
on a staggered basis from July 2024. In addition, HMT
disclosure requirements, which are expected to apply
released a consultation to bring ESG rating providers
on a staggered basis from July 2024. In addition, HMT
under regulation by the FCA and will consult on a
released a consultation to bring ESG rating providers
UK-specific taxonomy of environmentally sustainable
under regulation by the FCA and will consult on a
activities.
UK-specific taxonomy of environmentally sustainable
activities.
A number of Asia-Pacific jurisdictions are consulting
on sustainability reporting obligations aligned with
A number of Asia-Pacific jurisdictions are consulting
the ISSB standards. Similarly, policymakers in Japan
on sustainability reporting obligations aligned with
have announced that they are preparing a local
the ISSB standards. Similarly, policymakers in Japan
version of the ISSB standards. Japan and Singapore
have announced that they are preparing a local
have published codes of conduct for ESG data and
version of the ISSB standards. Japan and Singapore
ratings providers, with Hong Kong considering a
have published codes of conduct for ESG data and
similar approach, while India introduced a regulatory
ratings providers, with Hong Kong considering a
framework for ESG ratings providers in July 2023.
similar approach, while India introduced a regulatory
framework for ESG ratings providers in July 2023.
As jurisdictions continue to develop legal frameworks
on ESG and sustainability regulations, BlackRock
As jurisdictions continue to develop legal frameworks
faces increased fragmentation risk related to local
on ESG and sustainability regulations, BlackRock
implementation, resulting in complex and potentially
faces increased fragmentation risk related to local
conflicting compliance obligations and legal and
implementation, resulting in complex and potentially
regulatory uncertainty.
conflicting compliance obligations and legal and
regulatory uncertainty.
Global regulatory reforms could require BlackRock to alter
its future business or operating activities, which could be
Global regulatory reforms could require BlackRock to alter
time-consuming and increase costs, including costs
its future business or operating activities, which could be
related to regulatory compliance, result in litigation,
time-consuming and increase costs, including costs
impede the Company’s growth and cause its AUM,
related to regulatory compliance, result in litigation,
revenue and earnings to decline. Regulatory reform may
impede the Company’s growth and cause its AUM,
also impact BlackRock’s clients, which could cause them
revenue and earnings to decline. Regulatory reform may
to change their investment strategies or allocations in
also impact BlackRock’s clients, which could cause them
manners that may be adverse to BlackRock.
to change their investment strategies or allocations in
manners that may be adverse to BlackRock.
32 BlackRock | 2023 Form 10-K
32 BlackRock | 2023 Form 10-K
Regulatory reforms in the US expose BlackRock to
increasing regulatory scrutiny, as well as regulatory
Regulatory reforms in the US expose BlackRock to
uncertainty.
increasing regulatory scrutiny, as well as regulatory
uncertainty.
In recent years, a number of regulatory reforms have been
proposed or fully or partially implemented in the US, and
In recent years, a number of regulatory reforms have been
the level of regulatory scrutiny to which BlackRock is
proposed or fully or partially implemented in the US, and
subject has increased. These risks have been heightened
the level of regulatory scrutiny to which BlackRock is
as the pace of regulatory rulemaking has intensified.
subject has increased. These risks have been heightened
BlackRock, as well as its clients, vendors and distributors,
as the pace of regulatory rulemaking has intensified.
have expended resources and altered certain of their
BlackRock, as well as its clients, vendors and distributors,
business or operating activities to prepare for, address
have expended resources and altered certain of their
and meet the requirements that such regulatory reforms
business or operating activities to prepare for, address
impose. While BlackRock is, and may become, subject to
and meet the requirements that such regulatory reforms
numerous reform initiatives in the US, see Item 1,
impose. While BlackRock is, and may become, subject to
Business – Regulation, key regulatory reforms that may
numerous reform initiatives in the US, see Item 1,
impact the Company include:
Business – Regulation, key regulatory reforms that may
impact the Company include:
• Antitrust Rules and Guidance: In 2023, the Federal
Trade Commission (“FTC”) and the Antitrust Division
• Antitrust Rules and Guidance: In 2023, the Federal
of the Department of Justice (the “DOJ”) issued a
Trade Commission (“FTC”) and the Antitrust Division
notice of proposed rulemaking with amendments to
of the Department of Justice (the “DOJ”) issued a
rules enacted under the Hart-Scott-Rodino Antitrust
notice of proposed rulemaking with amendments to
Improvements Act of 1976 (“HSR”) that require
rules enacted under the Hart-Scott-Rodino Antitrust
parties in certain transactions to provide the FTC and
Improvements Act of 1976 (“HSR”) that require
DOJ prior notice and observe a waiting period before
parties in certain transactions to provide the FTC and
consummation of such transactions. The proposals
DOJ prior notice and observe a waiting period before
would significantly expand the information required
consummation of such transactions. The proposals
to be reported and documentation to be submitted in
would significantly expand the information required
connection with an HSR filing. If enacted as drafted,
to be reported and documentation to be submitted in
the proposed rules could substantially increase
connection with an HSR filing. If enacted as drafted,
BlackRock’s pre-merger notification expenses and
the proposed rules could substantially increase
delay transactions. In December 2023, the FTC and
BlackRock’s pre-merger notification expenses and
DOJ also jointly issued new merger guidelines, which
delay transactions. In December 2023, the FTC and
could impact the ability of the Company to expand its
DOJ also jointly issued new merger guidelines, which
services through strategic investments or
could impact the ability of the Company to expand its
acquisitions.
services through strategic investments or
acquisitions.
• Designation as a Systemically Important Financial
Institution (“SIFI”): The FSOC has the authority to
• Designation as a Systemically Important Financial
designate nonbank financial institutions as SIFIs in
Institution (“SIFI”): The FSOC has the authority to
the US under the Dodd-Frank Wall Street Reform and
designate nonbank financial institutions as SIFIs in
Consumer Protection Act of 2010. In November 2023,
the US under the Dodd-Frank Wall Street Reform and
the FSOC finalized amendments to its existing
Consumer Protection Act of 2010. In November 2023,
interpretive guidance to remove the prioritization of
the FSOC finalized amendments to its existing
an activities-based approach over an entity-specific
interpretive guidance to remove the prioritization of
approach to designation in connection with
an activities-based approach over an entity-specific
addressing potential risks to financial stability,
approach to designation in connection with
although the amendment clarified that the FSOC
addressing potential risks to financial stability,
retained the ability to use an activities-based
although the amendment clarified that the FSOC
approach when appropriate. If BlackRock is
retained the ability to use an activities-based
designated as a SIFI, it could become subject to
approach when appropriate. If BlackRock is
enhanced regulatory and capital requirements and
designated as a SIFI, it could become subject to
direct supervision by the Federal Reserve.
enhanced regulatory and capital requirements and
direct supervision by the Federal Reserve.
• US DOL Fiduciary Rule: In October 2023, the US DOL
proposed a new regulation redefining the meaning of
• US DOL Fiduciary Rule: In October 2023, the US DOL
“investment advice fiduciary” under ERISA as well as
proposed a new regulation redefining the meaning of
amendments to several prohibited transaction
“investment advice fiduciary” under ERISA as well as
exemptions applicable to investment advice
amendments to several prohibited transaction
fiduciaries. If adopted as proposed, the rule would
exemptions applicable to investment advice
substantially expand when a person would be
fiduciaries. If adopted as proposed, the rule would
considered a fiduciary subject to ERISA and could
substantially expand when a person would be
require BlackRock to revise a number of its
considered a fiduciary subject to ERISA and could
distribution relationships, create compliance and
require BlackRock to revise a number of its
operational challenges for BlackRock and its
distribution relationships, create compliance and
distribution partners, and limit BlackRock’s ability to
operational challenges for BlackRock and its
provide certain services to applicable clients.
distribution partners, and limit BlackRock’s ability to
provide certain services to applicable clients.
• SEC Rules Governing Security-Based Swaps: In 2021,
the SEC proposed rules in connection with security-
• SEC Rules Governing Security-Based Swaps: In 2021,
based swaps (“SBS”) transactions to require public
the SEC proposed rules in connection with security-
reporting of large SBS positions. These rules, if
based swaps (“SBS”) transactions to require public
adopted as proposed, may affect the types of
reporting of large SBS positions. These rules, if
transactions BlackRock may choose to execute in SBS
adopted as proposed, may affect the types of
or other SBS-related assets, introduce or increase
transactions BlackRock may choose to execute in SBS
costs relating to such transactions, and impact the
or other SBS-related assets, introduce or increase
liquidity in the SBS markets in which BlackRock
costs relating to such transactions, and impact the
transacts.
liquidity in the SBS markets in which BlackRock
transacts.
• SEC Rules on Private Fund Advisers: In 2023, the SEC
adopted new rules and amendments to enhance
• SEC Rules on Private Fund Advisers: In 2023, the SEC
regulation of private fund advisors. These included
adopted new rules and amendments to enhance
amendments to Form PF for registered investment
regulation of private fund advisors. These included
advisers requiring new disclosures, filing obligations
amendments to Form PF for registered investment
and enhanced reporting. The SEC adopted additional
advisers requiring new disclosures, filing obligations
rules requiring registered private fund advisers to,
and enhanced reporting. The SEC adopted additional
among other things, provide quarterly reports to fund
rules requiring registered private fund advisers to,
investors, obtain annual audits for funds, distribute
among other things, provide quarterly reports to fund
fairness opinions in connection with certain
investors, obtain annual audits for funds, distribute
transactions, prohibit certain types of preferential
fairness opinions in connection with certain
terms and treatment, and provide transparency to
transactions, prohibit certain types of preferential
investors of all types of preferential treatment granted
terms and treatment, and provide transparency to
to other investors in the same fund. Implementing
investors of all types of preferential treatment granted
these rules and amendments may significantly
to other investors in the same fund. Implementing
increase BlackRock’s reporting, disclosure and
these rules and amendments may significantly
compliance obligations and create operational
increase BlackRock’s reporting, disclosure and
complexity for BlackRock’s alternatives products.
compliance obligations and create operational
complexity for BlackRock’s alternatives products.
• Proposed Rules on Regulation ATS: In 2023, the SEC
re-proposed amendments to Regulation ATS. The
• Proposed Rules on Regulation ATS: In 2023, the SEC
proposed rules would expand the types of systems
re-proposed amendments to Regulation ATS. The
that could fall within the definition of “exchange” and
proposed rules would expand the types of systems
extend Regulation ATS and Regulation Systems
that could fall within the definition of “exchange” and
Compliance and Integrity to systems involving US
extend Regulation ATS and Regulation Systems
government securities trading. If enacted as
Compliance and Integrity to systems involving US
proposed, these rules may increase compliance costs
government securities trading. If enacted as
for BlackRock.
proposed, these rules may increase compliance costs
for BlackRock.
• SEC US Treasury Clearing Mandate: In December
2023, the SEC adopted rules mandating central
• SEC US Treasury Clearing Mandate: In December
clearing of US Treasury repurchases and certain other
2023, the SEC adopted rules mandating central
Treasury transactions. The rules require many market
clearing of US Treasury repurchases and certain other
participants, including a large number of BlackRock
Treasury transactions. The rules require many market
funds and accounts, to clear Treasury repurchase
participants, including a large number of BlackRock
transactions and potentially certain cash Treasury
funds and accounts, to clear Treasury repurchase
securities transactions through a clearing agency
transactions and potentially certain cash Treasury
registered with the SEC, which could increase
securities transactions through a clearing agency
transaction costs for BlackRock’s clients.
registered with the SEC, which could increase
transaction costs for BlackRock’s clients.
• Proposed Rules on Equity Market Structure: In 2023,
the SEC proposed equity market structure reforms
• Proposed Rules on Equity Market Structure: In 2023,
that would significantly change how national market
the SEC proposed equity market structure reforms
system (“NMS”) stock orders are priced, executed and
that would significantly change how national market
reported. The reforms include: (1) a requirement for
system (“NMS”) stock orders are priced, executed and
certain retail orders to be subject to order-by-order
reported. The reforms include: (1) a requirement for
competition, (2) an SEC-level best execution rule and
certain retail orders to be subject to order-by-order
(3) an adjustment to the tick sizes at which NMS
competition, (2) an SEC-level best execution rule and
stocks can be quoted or traded. If enacted as
(3) an adjustment to the tick sizes at which NMS
proposed, the collective impact of the rules may
stocks can be quoted or traded. If enacted as
adversely affect market efficiency and execution
proposed, the collective impact of the rules may
costs, which would result in negative effects for
adversely affect market efficiency and execution
BlackRock’s business and clients.
costs, which would result in negative effects for
BlackRock’s business and clients.
• SEC Rules on Short Sales and Reporting of Securities
Loans: In 2023, the SEC adopted a new rule requiring
• SEC Rules on Short Sales and Reporting of Securities
certain institutional managers to report short
Loans: In 2023, the SEC adopted a new rule requiring
positions and activity to the SEC for publication on an
certain institutional managers to report short
aggregate basis, which could potentially impact
positions and activity to the SEC for publication on an
aggregate basis, which could potentially impact
investment strategies and result in greater
operational burdens and cost for BlackRock. The SEC
investment strategies and result in greater
also adopted a new rule requiring certain persons to
operational burdens and cost for BlackRock. The SEC
report information on securities loan transactions to a
also adopted a new rule requiring certain persons to
registered national securities association which will
report information on securities loan transactions to a
then publish certain information. The rule may
registered national securities association which will
increase BlackRock’s operational burdens and costs.
then publish certain information. The rule may
increase BlackRock’s operational burdens and costs.
• SEC Standard Settlement Rules: In 2023, the SEC
• SEC Standard Settlement Rules: In 2023, the SEC
adopted amendments and new rules which, among
other things, shortened the standard settlement for
adopted amendments and new rules which, among
most securities transactions to one business day after
other things, shortened the standard settlement for
the trade date (T+1), which will likely increase
most securities transactions to one business day after
BlackRock’s operational burdens and costs.
the trade date (T+1), which will likely increase
BlackRock’s operational burdens and costs.
• SEC Predictive Data Analytics Rules: The SEC
• SEC Predictive Data Analytics Rules: The SEC
proposed new rules in 2023 that would require
broker-dealers and investment advisers, when
proposed new rules in 2023 that would require
engaging or communicating with investors using
broker-dealers and investment advisers, when
predictive data analytics (“PDA”) and PDA-like
engaging or communicating with investors using
technologies, to evaluate such technologies for
predictive data analytics (“PDA”) and PDA-like
conflicts of interest and, where identified, eliminate or
technologies, to evaluate such technologies for
neutralize the conflict of interest. If adopted as
conflicts of interest and, where identified, eliminate or
proposed, the rules could encompass a wide range of
neutralize the conflict of interest. If adopted as
forward-looking uses of technology applications and
proposed, the rules could encompass a wide range of
impose significant operational burdens and costs.
forward-looking uses of technology applications and
impose significant operational burdens and costs.
• SEC Rulemakings for US Registered Funds and
• SEC Rulemakings for US Registered Funds and
Investment Advisers: The SEC has recently engaged in
various initiatives and reviews impacting regulatory
Investment Advisers: The SEC has recently engaged in
structure governing the asset management industry
various initiatives and reviews impacting regulatory
and registered investment companies. For example,
structure governing the asset management industry
the SEC adopted rules requiring certain funds to
and registered investment companies. For example,
provide tailored fund shareholder reports, adopted
the SEC adopted rules requiring certain funds to
final amendments to the rule governing fund names,
provide tailored fund shareholder reports, adopted
expanding the scope of the rule to fund names
final amendments to the rule governing fund names,
including growth, value, ESG or similar terms, and
expanding the scope of the rule to fund names
proposed rules governing outsourcing of certain
including growth, value, ESG or similar terms, and
functions by investment advisers to service providers.
proposed rules governing outsourcing of certain
functions by investment advisers to service providers.
Regulatory reforms in the US could require BlackRock to
alter its future business or operating activities, which
Regulatory reforms in the US could require BlackRock to
could be time-consuming and costly, increase regulatory
alter its future business or operating activities, which
compliance costs, result in litigation, impede the
could be time-consuming and costly, increase regulatory
Company’s growth and cause its AUM, revenue and
compliance costs, result in litigation, impede the
earnings to decline. Regulatory reform may also impact
Company’s growth and cause its AUM, revenue and
BlackRock’s clients, which could cause them to change
earnings to decline. Regulatory reform may also impact
their investment strategies or allocations in manners that
BlackRock’s clients, which could cause them to change
may be adverse to BlackRock.
their investment strategies or allocations in manners that
may be adverse to BlackRock.
International regulatory reforms expose BlackRock and
its clients to increasing regulatory scrutiny, as well as
International regulatory reforms expose BlackRock and
regulatory uncertainty.
its clients to increasing regulatory scrutiny, as well as
regulatory uncertainty.
BlackRock’s business and operating activities are subject
to increasing regulatory oversight outside of the US and
BlackRock’s business and operating activities are subject
the Company may be affected by several proposed or
to increasing regulatory oversight outside of the US and
implemented reform initiatives in the EMEA and the Asia-
the Company may be affected by several proposed or
Pacific regions, as well as volatility associated with
implemented reform initiatives in the EMEA and the Asia-
international regulatory uncertainty. While BlackRock is,
Pacific regions, as well as volatility associated with
and may become, subject to numerous reform initiatives
international regulatory uncertainty. While BlackRock is,
internationally, see Item 1, Business – Regulation, key
and may become, subject to numerous reform initiatives
reforms in these regions include:
internationally, see Item 1, Business – Regulation, key
reforms in these regions include:
European Union
European Union
• Enhanced Regulatory Scrutiny of Technology Service
Providers to Financial Services Firms: The EU’s Digital
• Enhanced Regulatory Scrutiny of Technology Service
Operational Resilience Act (“DORA”), which focuses
Providers to Financial Services Firms: The EU’s Digital
on direct regulation of providers and users of
Operational Resilience Act (“DORA”), which focuses
on direct regulation of providers and users of
BlackRock | 2023 Form 10-K
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33
33
technology and data services, will become applicable
beginning in January 2025. DORA will, among other
technology and data services, will become applicable
things: (1) introduce additional governance, risk
beginning in January 2025. DORA will, among other
management, incident reporting, resilience testing
things: (1) introduce additional governance, risk
and information sharing requirements to several of
management, incident reporting, resilience testing
BlackRock’s European entities and certain Aladdin
and information sharing requirements to several of
clients; and (2) potentially subject Aladdin to
BlackRock’s European entities and certain Aladdin
additional oversight. In parallel with DORA, the UK
clients; and (2) potentially subject Aladdin to
proposed a new Critical Third Party regime to regulate
additional oversight. In parallel with DORA, the UK
certain third parties designated by HMT as “critical” to
proposed a new Critical Third Party regime to regulate
the financial sector, and UK regulators have issued a
certain third parties designated by HMT as “critical” to
consultation on proposed requirements for “critical”
the financial sector, and UK regulators have issued a
third parties, with further consultations expected in
consultation on proposed requirements for “critical”
2024.
third parties, with further consultations expected in
2024.
• Retail Investment Strategy: In 2023, the European
Commission (“EC”) adopted a Retail Investment
• Retail Investment Strategy: In 2023, the European
Strategy package with wide-reaching amendments
Commission (“EC”) adopted a Retail Investment
intended to enhance protections for retail investors. If
Strategy package with wide-reaching amendments
enacted as proposed, these changes may impact
intended to enhance protections for retail investors. If
BlackRock’s operations in European markets,
enacted as proposed, these changes may impact
including product development, client servicing and
BlackRock’s operations in European markets,
distribution models.
including product development, client servicing and
distribution models.
United Kingdom
United Kingdom
• FSMA 2023: The Financial Services and Markets Act
2023 (“FSMA”) reflects significant changes to the UK
• FSMA 2023: The Financial Services and Markets Act
framework for financial services regulation, including
2023 (“FSMA”) reflects significant changes to the UK
changes that: (1) revoke retained EU law related to
framework for financial services regulation, including
financial services regulation, (2) amend the UK
changes that: (1) revoke retained EU law related to
Markets in Financial Instruments Directive and
financial services regulation, (2) amend the UK
Markets in Financial Instruments Regulation
Markets in Financial Instruments Directive and
frameworks, (3) establish a new designated activities
Markets in Financial Instruments Regulation
regime and (4) reform the financial promotion regime
frameworks, (3) establish a new designated activities
for unauthorized firms. The UK government and FCA
regime and (4) reform the financial promotion regime
are expected to publish further legislation setting out
for unauthorized firms. The UK government and FCA
specific changes impacting the UK market in 2024.
are expected to publish further legislation setting out
specific changes impacting the UK market in 2024.
• Mansion House Reforms: The Mansion House reforms
announced in July 2023 also build on the new UK
• Mansion House Reforms: The Mansion House reforms
regulatory framework enabled by the FSMA. Potential
announced in July 2023 also build on the new UK
impacts to the asset management sector include:
regulatory framework enabled by the FSMA. Potential
(1) repeal and replacement of the packaged retail and
impacts to the asset management sector include:
insurance based investment products (“PRIIPs”)
(1) repeal and replacement of the packaged retail and
Regulation; (2) review of the UK’s green finance
insurance based investment products (“PRIIPs”)
strategy, including potential regulation of ESG data
Regulation; (2) review of the UK’s green finance
providers; (3) review of governance through the
strategy, including potential regulation of ESG data
Senior Managers and Certification Regime; (4) repeal
providers; (3) review of governance through the
of EU legislation on the European Long-Term
Senior Managers and Certification Regime; (4) repeal
Investment Fund; (5) market infrastructure reforms;
of EU legislation on the European Long-Term
(6) reassessment of the boundary between
Investment Fund; (5) market infrastructure reforms;
investment advice and financial guidance; and
(6) reassessment of the boundary between
(7) independent review of the UK investment research
investment advice and financial guidance; and
landscape.
(7) independent review of the UK investment research
landscape.
• Overseas Fund Regime (“OFR”): OFR, the simplified
regime through which non-UK funds can register with
• Overseas Fund Regime (“OFR”): OFR, the simplified
the FCA to be marketed to UK retail investors, was
regime through which non-UK funds can register with
enacted in February 2022 and is expected to be
the FCA to be marketed to UK retail investors, was
implemented through 2024. OFR requires consumer
enacted in February 2022 and is expected to be
protection regimes in EU countries where BlackRock
implemented through 2024. OFR requires consumer
funds are domiciled to be found equivalent to the
protection regimes in EU countries where BlackRock
UK’s regime in order to market such funds in the UK.
funds are domiciled to be found equivalent to the
UK’s regime in order to market such funds in the UK.
• Conduct Regulation: The FCA continues to focus on
conduct regulation, including the implementation of
• Conduct Regulation: The FCA continues to focus on
the Consumer Duty by all asset management firms,
conduct regulation, including the implementation of
including BlackRock’s UK subsidiaries. The Consumer
the Consumer Duty by all asset management firms,
Duty rules require firms to act to deliver good
including BlackRock’s UK subsidiaries. The Consumer
Duty rules require firms to act to deliver good
34 BlackRock | 2023 Form 10-K
34 BlackRock | 2023 Form 10-K
outcomes for retail customers in their manufacture
and distribution of products and services, in respect
outcomes for retail customers in their manufacture
of price and value, consumer understanding and
and distribution of products and services, in respect
consumer support. Any failure to meet the FCA’s
of price and value, consumer understanding and
regulatory expectations could expose BlackRock to
consumer support. Any failure to meet the FCA’s
regulatory sanctions and increased reputational risk.
regulatory expectations could expose BlackRock to
regulatory sanctions and increased reputational risk.
• UK Stewardship Code Review: The UK Financial
Reporting Council has announced a planned review of
• UK Stewardship Code Review: The UK Financial
the UK Stewardship Code in 2024 to consider
Reporting Council has announced a planned review of
potential revisions to address stakeholder concerns.
the UK Stewardship Code in 2024 to consider
potential revisions to address stakeholder concerns.
Asia-Pacific
Asia-Pacific
• Regulatory Environment in China: The Company’s
operations in China are subject to a number of
• Regulatory Environment in China: The Company’s
regulatory risks, including an evolving regulatory
operations in China are subject to a number of
environment and complex data security and data
regulatory risks, including an evolving regulatory
transfer regulations. These factors may increase
environment and complex data security and data
compliance risk and costs, limit the Company’s ability
transfer regulations. These factors may increase
to source and execute new investment opportunities
compliance risk and costs, limit the Company’s ability
and lead to impairment losses on its investments.
to source and execute new investment opportunities
Restrictions on transfers of certain types of onshore
and lead to impairment losses on its investments.
data of the Company’s Chinese entities to offshore
Restrictions on transfers of certain types of onshore
entities also may limit BlackRock’s ability to
data of the Company’s Chinese entities to offshore
aggregate, report and monitor such data on its global
entities also may limit BlackRock’s ability to
platform. In addition, a number of regulators in China
aggregate, report and monitor such data on its global
have jurisdiction over BlackRock’s business
platform. In addition, a number of regulators in China
operations, increasing operational and regulatory
have jurisdiction over BlackRock’s business
engagement complexity. These risks may be further
operations, increasing operational and regulatory
heightened by additional scrutiny by Chinese
engagement complexity. These risks may be further
regulators of certain sectors, such as technology and
heightened by additional scrutiny by Chinese
other industries that might be deemed to be of
regulators of certain sectors, such as technology and
national importance.
other industries that might be deemed to be of
national importance.
International regulatory reforms could require BlackRock
to alter its future business or operating activities, which
International regulatory reforms could require BlackRock
could be time-consuming and costly, increase regulatory
to alter its future business or operating activities, which
compliance costs, result in litigation, impede the
could be time-consuming and costly, increase regulatory
Company’s growth and cause its AUM, revenue and
compliance costs, result in litigation, impede the
earnings to decline. Regulatory reform may also impact
Company’s growth and cause its AUM, revenue and
BlackRock’s clients, which could cause them to change
earnings to decline. Regulatory reform may also impact
their investment strategies or allocations in manners that
BlackRock’s clients, which could cause them to change
may be adverse to BlackRock.
their investment strategies or allocations in manners that
may be adverse to BlackRock.
Legal proceedings may cause the Company’s AUM,
revenue and earnings to decline.
Legal proceedings may cause the Company’s AUM,
revenue and earnings to decline.
BlackRock is subject to a number of sources of potential
legal liability and the Company, certain of the investment
BlackRock is subject to a number of sources of potential
funds it manages and certain of its subsidiaries and
legal liability and the Company, certain of the investment
employees have been named as defendants in various
funds it manages and certain of its subsidiaries and
legal actions, including arbitrations, class actions and
employees have been named as defendants in various
other litigation arising in connection with BlackRock’s
legal actions, including arbitrations, class actions and
activities. Certain of BlackRock’s subsidiaries and
other litigation arising in connection with BlackRock’s
employees are also subject to periodic examination,
activities. Certain of BlackRock’s subsidiaries and
special inquiries and potential proceedings by regulatory
employees are also subject to periodic examination,
authorities, including the Securities and Exchange
special inquiries and potential proceedings by regulatory
Commission, Office of the Comptroller of the Currency
authorities, including the Securities and Exchange
(“OCC”), Department of Labor, Commodity Futures
Commission, Office of the Comptroller of the Currency
Trading Commission, Financial Conduct Authority,
(“OCC”), Department of Labor, Commodity Futures
Commission de Surveillance du Secteur Financial and
Trading Commission, Financial Conduct Authority,
Federal Reserve. Similarly, from time to time, BlackRock
Commission de Surveillance du Secteur Financial and
receives subpoenas or other requests for information from
Federal Reserve. Similarly, from time to time, BlackRock
various US state and federal as well as non-US
receives subpoenas or other requests for information from
governmental and regulatory authorities in connection
various US state and federal as well as non-US
with certain industry-wide, company-specific or other
governmental and regulatory authorities in connection
investigations, proceedings or litigations. These
with certain industry-wide, company-specific or other
investigations, proceedings or litigations. These
examinations, inquiries and proceedings have in the past
and could in the future, if compliance failures or other
examinations, inquiries and proceedings have in the past
violations are found, cause the relevant governmental or
and could in the future, if compliance failures or other
regulatory authority to institute proceedings and/or
violations are found, cause the relevant governmental or
impose sanctions for violations. Any such action may also
regulatory authority to institute proceedings and/or
result in litigation by investors in BlackRock’s funds, other
impose sanctions for violations. Any such action may also
BlackRock clients or BlackRock’s shareholders. Such legal
result in litigation by investors in BlackRock’s funds, other
proceedings could harm the Company’s reputation and
BlackRock clients or BlackRock’s shareholders. Such legal
may cause its AUM, revenue and earnings to decline,
proceedings could harm the Company’s reputation and
potentially harm the investment returns of the applicable
may cause its AUM, revenue and earnings to decline,
fund, or result in the Company being liable for damages.
potentially harm the investment returns of the applicable
fund, or result in the Company being liable for damages.
In addition, when clients retain BlackRock to manage their
assets or provide them with products or services, they
In addition, when clients retain BlackRock to manage their
typically specify contractual requirements or guidelines
assets or provide them with products or services, they
that BlackRock must observe in the provision of its
typically specify contractual requirements or guidelines
services. A failure to comply with these guidelines or
that BlackRock must observe in the provision of its
requirements could expose BlackRock to lawsuits, harm its
services. A failure to comply with these guidelines or
reputation or cause clients to withdraw assets or terminate
requirements could expose BlackRock to lawsuits, harm its
contracts.
reputation or cause clients to withdraw assets or terminate
contracts.
BlackRock faces increasing focus from regulators,
officials, clients and other stakeholders regarding ESG
BlackRock faces increasing focus from regulators,
matters, which may adversely impact its reputation and
officials, clients and other stakeholders regarding ESG
business.
matters, which may adversely impact its reputation and
business.
BlackRock faces increasing focus from regulators,
officials, clients and other stakeholders regarding ESG
BlackRock faces increasing focus from regulators,
matters. BlackRock offers choice to its clients who have a
officials, clients and other stakeholders regarding ESG
variety of goals and preferences, including those who want
matters. BlackRock offers choice to its clients who have a
to increase their exposure to the low-carbon transition and
variety of goals and preferences, including those who want
those who choose not to invest in products or strategies
to increase their exposure to the low-carbon transition and
with sustainable investment objectives. BlackRock is
those who choose not to invest in products or strategies
subject to competing demands from different stakeholder
with sustainable investment objectives. BlackRock is
groups with divergent views on ESG-related matters,
subject to competing demands from different stakeholder
including in countries in which BlackRock operates and
groups with divergent views on ESG-related matters,
invests, as well as in states and localities where BlackRock
including in countries in which BlackRock operates and
serves public sector clients. This divergence has and
invests, as well as in states and localities where BlackRock
continues to increase the risk that any perceived or actual
serves public sector clients. This divergence has and
action or lack thereof by BlackRock on such matters on
continues to increase the risk that any perceived or actual
behalf of its clients will be viewed differently by various
action or lack thereof by BlackRock on such matters on
stakeholders and adversely impact BlackRock’s reputation
behalf of its clients will be viewed differently by various
and business, including through withdrawals,
stakeholders and adversely impact BlackRock’s reputation
redemptions, terminations or decisions not to commit or
and business, including through withdrawals,
invest new capital by clients, as well as legal and
redemptions, terminations or decisions not to commit or
governmental action and scrutiny. Some US states and
invest new capital by clients, as well as legal and
state officials have adopted or proposed legislation or
governmental action and scrutiny. Some US states and
otherwise have taken official positions restricting or
state officials have adopted or proposed legislation or
prohibiting state government entities from doing certain
otherwise have taken official positions restricting or
business with entities identified by the state as
prohibiting state government entities from doing certain
“boycotting” or “discriminating” against particular
business with entities identified by the state as
industries or considering ESG factors in their investment
“boycotting” or “discriminating” against particular
processes and proxy voting. Other states and localities
industries or considering ESG factors in their investment
may adopt similar legislation or other ESG-related laws
processes and proxy voting. Other states and localities
and positions that adversely impact BlackRock’s business.
may adopt similar legislation or other ESG-related laws
BlackRock may also communicate certain initiatives and
and positions that adversely impact BlackRock’s business.
goals for its corporate activities related to environmental,
BlackRock may also communicate certain initiatives and
diversity, and other ESG-related matters. BlackRock could
goals for its corporate activities related to environmental,
be criticized for the scope or nature of any initiatives or
diversity, and other ESG-related matters. BlackRock could
goals, or for revisions thereto. Such initiatives or goals
be criticized for the scope or nature of any initiatives or
may be difficult or costly to implement, may not advance
goals, or for revisions thereto. Such initiatives or goals
at the anticipated pace, or be accomplished within the
may be difficult or costly to implement, may not advance
announced timeframe or at all. If BlackRock is not able to
at the anticipated pace, or be accomplished within the
successfully manage ESG-related expectations across
announced timeframe or at all. If BlackRock is not able to
varied stakeholder interests, it may adversely affect
successfully manage ESG-related expectations across
BlackRock’s reputation, ability to attract and retain clients,
varied stakeholder interests, it may adversely affect
employees, shareholders and business partners or result
BlackRock’s reputation, ability to attract and retain clients,
employees, shareholders and business partners or result
in litigation, legal or governmental action, which may
cause its AUM, revenue and earnings to decline.
in litigation, legal or governmental action, which may
cause its AUM, revenue and earnings to decline.
Damage to BlackRock’s reputation may harm its
business.
Damage to BlackRock’s reputation may harm its
business.
BlackRock’s reputation is critical to its relationships with
its clients, employees, shareholders and business
BlackRock’s reputation is critical to its relationships with
partners. BlackRock’s reputation may be harmed by,
its clients, employees, shareholders and business
among other factors, regulatory, enforcement or other
partners. BlackRock’s reputation may be harmed by,
governmental actions, technology or operational failures,
among other factors, regulatory, enforcement or other
poor investment performance, ineffective management or
governmental actions, technology or operational failures,
monitoring of key third-party relationships, ransomware or
poor investment performance, ineffective management or
other cybersecurity incidents, privacy incidents, employee
monitoring of key third-party relationships, ransomware or
errors or misconduct, failures to manage risks or conflicts
other cybersecurity incidents, privacy incidents, employee
of interest, or legal actions related to BlackRock or its
errors or misconduct, failures to manage risks or conflicts
products and services. In addition, BlackRock’s business,
of interest, or legal actions related to BlackRock or its
scale and investments subject it to significant media
products and services. In addition, BlackRock’s business,
coverage and increasing attention from a broad range of
scale and investments subject it to significant media
stakeholders. This heightened scrutiny has resulted in
coverage and increasing attention from a broad range of
negative publicity and adverse actions for BlackRock and
stakeholders. This heightened scrutiny has resulted in
may continue to do so in the future. Any perceived or
negative publicity and adverse actions for BlackRock and
actual action or lack thereof, or perceived lack of
may continue to do so in the future. Any perceived or
transparency, by BlackRock on matters subject to scrutiny,
actual action or lack thereof, or perceived lack of
such as ESG, may be viewed differently by various
transparency, by BlackRock on matters subject to scrutiny,
stakeholders and adversely impact BlackRock’s reputation
such as ESG, may be viewed differently by various
and business, including through redemptions or
stakeholders and adversely impact BlackRock’s reputation
terminations by clients, and legal and governmental
and business, including through redemptions or
action and scrutiny. BlackRock’s global presence and
terminations by clients, and legal and governmental
investments on behalf of its clients around the world could
action and scrutiny. BlackRock’s global presence and
also lead to heightened scrutiny and criticism in an
investments on behalf of its clients around the world could
increasingly fragmented geopolitical landscape. For
also lead to heightened scrutiny and criticism in an
example, BlackRock has received criticism from some
increasingly fragmented geopolitical landscape. For
stakeholders because of its operations and investments in
example, BlackRock has received criticism from some
certain countries on behalf of clients, including China.
stakeholders because of its operations and investments in
These criticisms could adversely impact BlackRock’s
certain countries on behalf of clients, including China.
reputation and business. In addition, the increasing
These criticisms could adversely impact BlackRock’s
popularity of social media and non-mainstream Internet
reputation and business. In addition, the increasing
news sources may lead to faster and wider dissemination
popularity of social media and non-mainstream Internet
of adverse publicity or inaccurate information about
news sources may lead to faster and wider dissemination
BlackRock, making effective remediation more difficult.
of adverse publicity or inaccurate information about
Damage to BlackRock’s reputation may impact
BlackRock, making effective remediation more difficult.
BlackRock’s ability to attract and retain clients, employees,
Damage to BlackRock’s reputation may impact
shareholders and business partners, which may cause its
BlackRock’s ability to attract and retain clients, employees,
AUM, revenue and earnings to decline.
shareholders and business partners, which may cause its
AUM, revenue and earnings to decline.
A failure to effectively manage potential conflicts of
interest could result in litigation or enforcement actions
A failure to effectively manage potential conflicts of
and/or adversely affect BlackRock’s business and
interest could result in litigation or enforcement actions
reputation, which may cause BlackRock’s AUM, revenue
and/or adversely affect BlackRock’s business and
and earnings to decline.
reputation, which may cause BlackRock’s AUM, revenue
and earnings to decline.
As a global investment management firm that provides
investment and technology services to a diverse range of
As a global investment management firm that provides
clients, the Company must routinely address and manage
investment and technology services to a diverse range of
conflicts of interest, as well as the perception of conflicts
clients, the Company must routinely address and manage
of interest, between itself and its clients, employees or
conflicts of interest, as well as the perception of conflicts
vendors. While BlackRock has policies, controls and
of interest, between itself and its clients, employees or
disclosure protocols in place to manage and address
vendors. While BlackRock has policies, controls and
potential conflicts of interest, identifying and mitigating
disclosure protocols in place to manage and address
conflicts of interest can be complex and is the subject of
potential conflicts of interest, identifying and mitigating
increasing regulatory and media scrutiny. It is possible
conflicts of interest can be complex and is the subject of
that actual, potential or perceived conflicts could give rise
increasing regulatory and media scrutiny. It is possible
to investor or client dissatisfaction, adverse publicity,
that actual, potential or perceived conflicts could give rise
litigation or enforcement actions. In particular,
to investor or client dissatisfaction, adverse publicity,
BlackRock’s broad range of investment, advisory and
litigation or enforcement actions. In particular,
technology offerings, and its focus on providing clients
BlackRock’s broad range of investment, advisory and
technology offerings, and its focus on providing clients
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with whole portfolio solutions, may result in clients
working with multiple BlackRock businesses and/or
with whole portfolio solutions, may result in clients
BlackRock being engaged by institutions that have a
working with multiple BlackRock businesses and/or
nexus to industries or jurisdictions in which BlackRock
BlackRock being engaged by institutions that have a
operates, which may increase the potential for actual or
nexus to industries or jurisdictions in which BlackRock
perceived conflicts of interest and improper information
operates, which may increase the potential for actual or
sharing. To the extent that BlackRock fails, or appears to
perceived conflicts of interest and improper information
fail, to deal appropriately with any conflict of interest, it
sharing. To the extent that BlackRock fails, or appears to
may face adverse publicity, reputational damage,
fail, to deal appropriately with any conflict of interest, it
litigation, regulatory proceedings, client attrition,
may face adverse publicity, reputational damage,
penalties, fines and/or sanctions, any of which may cause
litigation, regulatory proceedings, client attrition,
BlackRock’s AUM, revenue and earnings to decline.
penalties, fines and/or sanctions, any of which may cause
BlackRock’s AUM, revenue and earnings to decline.
A subsidiary of BlackRock is subject to US banking
regulations that may limit its business activities.
A subsidiary of BlackRock is subject to US banking
regulations that may limit its business activities.
BlackRock’s trust bank subsidiary, which is a national
banking association chartered by the OCC, is subject to
BlackRock’s trust bank subsidiary, which is a national
OCC regulation and capital requirements that may limit its
banking association chartered by the OCC, is subject to
business activities. The OCC has broad supervisory and
OCC regulation and capital requirements that may limit its
enforcement authority over BlackRock’s trust bank.
business activities. The OCC has broad supervisory and
Having a subsidiary subject to banking regulation may put
enforcement authority over BlackRock’s trust bank.
BlackRock at a competitive disadvantage because certain
Having a subsidiary subject to banking regulation may put
of its competitors are not subject to the limitations
BlackRock at a competitive disadvantage because certain
imposed by such regulation.
of its competitors are not subject to the limitations
imposed by such regulation.
The implications of complying with threshold limits and/
or any failure to comply with ownership reporting
The implications of complying with threshold limits and/
requirements could result in harm to BlackRock’s
or any failure to comply with ownership reporting
reputation, impact the performance of certain BlackRock
requirements could result in harm to BlackRock’s
funds and may cause its AUM, revenue and earnings to
reputation, impact the performance of certain BlackRock
decline.
funds and may cause its AUM, revenue and earnings to
decline.
Of note among the various regulations to which BlackRock
is subject are the extensive and increasingly stringent
Of note among the various regulations to which BlackRock
regulatory reporting requirements that necessitate the
is subject are the extensive and increasingly stringent
monitoring and reporting of issuer exposure levels
regulatory reporting requirements that necessitate the
(thresholds) across the holdings of managed funds and
monitoring and reporting of issuer exposure levels
accounts and those of the Company. The specific triggers
(thresholds) across the holdings of managed funds and
and the reporting methods that these threshold filings
accounts and those of the Company. The specific triggers
entail vary significantly by regulator and across
and the reporting methods that these threshold filings
jurisdictions. BlackRock continues to invest in technology,
entail vary significantly by regulator and across
training and its employees to further enhance its
jurisdictions. BlackRock continues to invest in technology,
monitoring and reporting functions. Despite these
training and its employees to further enhance its
investments, the complexity of the various threshold
monitoring and reporting functions. Despite these
reporting requirements combined with the breadth of the
investments, the complexity of the various threshold
assets managed by the Company and high volume of
reporting requirements combined with the breadth of the
securities trading have caused errors and omissions to
assets managed by the Company and high volume of
occur in the past and pose a risk that errors or omissions
securities trading have caused errors and omissions to
may occur in the future. Any such errors may expose
occur in the past and pose a risk that errors or omissions
BlackRock to monetary penalties or other sanctions, which
may occur in the future. Any such errors may expose
could have an adverse effect on BlackRock’s reputation
BlackRock to monetary penalties or other sanctions, which
and may cause its AUM, revenue and earnings to decline.
could have an adverse effect on BlackRock’s reputation
and may cause its AUM, revenue and earnings to decline.
Moreover, as BlackRock’s business grows it is becoming
subject to a greater number of regulatory, industry-level or
Moreover, as BlackRock’s business grows it is becoming
issuer-specific threshold limits and scrutiny that may
subject to a greater number of regulatory, industry-level or
prevent BlackRock from holding positions in certain equity
issuer-specific threshold limits and scrutiny that may
securities, securities convertible into equity securities or
prevent BlackRock from holding positions in certain equity
futures contracts in excess of certain thresholds. Although
securities, securities convertible into equity securities or
BlackRock is actively engaged in regulatory, issuer-
futures contracts in excess of certain thresholds. Although
specific and structural initiatives to create additional
BlackRock is actively engaged in regulatory, issuer-
investment capacity, threshold limits may nonetheless
specific and structural initiatives to create additional
prevent the purchase of certain securities which may, in
investment capacity, threshold limits may nonetheless
turn, impact the performance of certain BlackRock index
prevent the purchase of certain securities which may, in
funds by increasing tracking error relative to the funds’
turn, impact the performance of certain BlackRock index
benchmarks, impact the performance of certain BlackRock
funds by increasing tracking error relative to the funds’
benchmarks, impact the performance of certain BlackRock
36 BlackRock | 2023 Form 10-K
36 BlackRock | 2023 Form 10-K
actively managed funds by preventing them from taking
advantage of alpha generating opportunities, and impede
actively managed funds by preventing them from taking
the Company’s growth.
advantage of alpha generating opportunities, and impede
the Company’s growth.
BlackRock has been the subject of commentary citing
concerns about the scale of its index investing business,
BlackRock has been the subject of commentary citing
as well as purported competition issues relating to the
concerns about the scale of its index investing business,
common ownership theory.
as well as purported competition issues relating to the
common ownership theory.
As a leader in the index investing and asset management
industry, BlackRock has been the subject of commentary
As a leader in the index investing and asset management
citing concerns about the growth of index investing and
industry, BlackRock has been the subject of commentary
concentrated proxy voting power. Some commentators
citing concerns about the growth of index investing and
have argued that continued growth of index funds has the
concentrated proxy voting power. Some commentators
potential to impact stock market competitiveness by
have argued that continued growth of index funds has the
exacerbating stock price moves and market volatility. Some
potential to impact stock market competitiveness by
commentators, regulators and lawmakers have also argued
exacerbating stock price moves and market volatility. Some
that index managers have accumulated outsized influence
commentators, regulators and lawmakers have also argued
through the proxy voting power their clients have assigned
that index managers have accumulated outsized influence
them. Some have proposed limitations on the ability of
through the proxy voting power their clients have assigned
index fund managers to vote on behalf of their clients, or
them. Some have proposed limitations on the ability of
that voting and engagement on certain topics should
index fund managers to vote on behalf of their clients, or
trigger changes in regulatory status. Additional
that voting and engagement on certain topics should
commentary focuses on the common ownership theory, an
trigger changes in regulatory status. Additional
academic theory stating that minority ownership of
commentary focuses on the common ownership theory, an
multiple companies within a single industry by the same
academic theory stating that minority ownership of
investor leads to anticompetitive effects. This theory
multiple companies within a single industry by the same
purports to link aggregated equity positions in certain
investor leads to anticompetitive effects. This theory
industries with higher consumer prices and executive
purports to link aggregated equity positions in certain
compensation and lower wages and employment rates,
industries with higher consumer prices and executive
among other things. In the US, the FTC cited common
compensation and lower wages and employment rates,
ownership as a disqualifying factor in a proposed
among other things. In the US, the FTC cited common
exemption from pre-merger notification rules and as a
ownership as a disqualifying factor in a proposed
consideration underlying its consultation on rules applying
exemption from pre-merger notification rules and as a
to acquisitions of voting securities by investment entities.
consideration underlying its consultation on rules applying
In 2021, the FTC identified common ownership as a key
to acquisitions of voting securities by investment entities.
enforcement area and passed a resolution empowering
In 2021, the FTC identified common ownership as a key
individual commissioners to investigate shareholder
enforcement area and passed a resolution empowering
conduct in connection with common ownership. In 2023,
individual commissioners to investigate shareholder
the FTC and DOJ released new merger guidelines
conduct in connection with common ownership. In 2023,
recognizing that common ownership may reduce
the FTC and DOJ released new merger guidelines
competitive incentives. Common ownership may be given
recognizing that common ownership may reduce
greater consideration in regulatory investigations, studies,
competitive incentives. Common ownership may be given
rule proposals, policy decisions and/or the scrutiny of
greater consideration in regulatory investigations, studies,
mergers and acquisitions. The debate on common
rule proposals, policy decisions and/or the scrutiny of
ownership is still on the agenda of competition regulators
mergers and acquisitions. The debate on common
globally, and common ownership may continue to be a
ownership is still on the agenda of competition regulators
consideration for the EC, among others, including in the
globally, and common ownership may continue to be a
assessment of mergers and investigations. For example,
consideration for the EC, among others, including in the
EC and European Parliament reports in 2020 suggested
assessment of mergers and investigations. For example,
that more evidence was required on the impact of common
EC and European Parliament reports in 2020 suggested
ownership on competition, and a committee of the
that more evidence was required on the impact of common
Australian House of Representatives held an inquiry in
ownership on competition, and a committee of the
2021 on the implications of common ownership and
Australian House of Representatives held an inquiry in
capital concentration on Australian companies and
2021 on the implications of common ownership and
markets. In 2023, the UK Competition & Markets Authority
capital concentration on Australian companies and
(“CMA”) established a new economic research unit which
markets. In 2023, the UK Competition & Markets Authority
identified common ownership as a potential research topic.
(“CMA”) established a new economic research unit which
There is substantial literature casting doubt on the
identified common ownership as a potential research topic.
assumptions, data, methodology and conclusions
There is substantial literature casting doubt on the
associated with the common ownership theory and
assumptions, data, methodology and conclusions
competition regulators, including at the FTC and CMA,
associated with the common ownership theory and
have acknowledged that the debate around the theory
competition regulators, including at the FTC and CMA,
remains unsettled. Nevertheless, some commentators have
have acknowledged that the debate around the theory
proposed remedies, including limits on the ownership
remains unsettled. Nevertheless, some commentators have
stakes of common owners that, if enacted into policy, could
proposed remedies, including limits on the ownership
have a negative impact on the capital markets, as well as
stakes of common owners that, if enacted into policy, could
have a negative impact on the capital markets, as well as
increase costs and limit the availability of products for
investors. Such policy solutions could, in turn, adversely
increase costs and limit the availability of products for
affect BlackRock.
investors. Such policy solutions could, in turn, adversely
affect BlackRock.
New tax legislation or changes to existing US and non-US
tax laws, treaties and regulations or challenges to
New tax legislation or changes to existing US and non-US
BlackRock’s historical taxation practices may adversely
tax laws, treaties and regulations or challenges to
affect BlackRock’s effective tax rate, business and overall
BlackRock’s historical taxation practices may adversely
financial condition.
affect BlackRock’s effective tax rate, business and overall
financial condition.
BlackRock’s businesses may be directly or indirectly affected
by tax legislation and regulation, or the modification of
BlackRock’s businesses may be directly or indirectly affected
existing tax laws, by US or non-US tax authorities.
by tax legislation and regulation, or the modification of
Legislation at both the US federal and state level has been
existing tax laws, by US or non-US tax authorities.
previously proposed to enact a financial transaction tax
Legislation at both the US federal and state level has been
(“FTT”) on stocks, bonds and a broad range of financial
previously proposed to enact a financial transaction tax
instruments and derivative transactions. In the EU, certain
(“FTT”) on stocks, bonds and a broad range of financial
Member States have also enacted similar FTTs and the EC
instruments and derivative transactions. In the EU, certain
has proposed legislation to harmonize these taxes and
Member States have also enacted similar FTTs and the EC
provide for the adoption of EU-level legislation applicable to
has proposed legislation to harmonize these taxes and
some (but not all) EU Member States. If enacted as
provide for the adoption of EU-level legislation applicable to
proposed, FTTs could have an adverse effect on BlackRock’s
some (but not all) EU Member States. If enacted as
financial results and clients’ performance results.
proposed, FTTs could have an adverse effect on BlackRock’s
financial results and clients’ performance results.
The Organisation for Economic Cooperation and
Development (“OECD”) has proposed certain international
The Organisation for Economic Cooperation and
tax reforms, which, among other things, would (1) shift
Development (“OECD”) has proposed certain international
taxing rights to the jurisdiction of the consumer and
tax reforms, which, among other things, would (1) shift
(2) establish a global minimum tax for multinational
taxing rights to the jurisdiction of the consumer and
companies of 15% (namely the “Pillar One” and “Pillar
(2) establish a global minimum tax for multinational
Two” Framework). EU member states adopted, or plan to
companies of 15% (namely the “Pillar One” and “Pillar
adopt, laws implementing the OECD’s minimum tax rules
Two” Framework). EU member states adopted, or plan to
under the Pillar Two Framework, which are expected to go
adopt, laws implementing the OECD’s minimum tax rules
into effect in 2024. Several other countries, including the
under the Pillar Two Framework, which are expected to go
UK, have changed or are considering changes to their tax
into effect in 2024. Several other countries, including the
law to implement the OECD’s minimum tax proposal. As a
UK, have changed or are considering changes to their tax
result of these developments, the tax laws of certain
law to implement the OECD’s minimum tax proposal. As a
countries in which BlackRock does business have and may
result of these developments, the tax laws of certain
continue to change, and any such changes could increase
countries in which BlackRock does business have and may
its tax liabilities. The Company is continuing to monitor
continue to change, and any such changes could increase
legislative developments and evaluate the potential
its tax liabilities. The Company is continuing to monitor
impact of the Pillar Two Framework on future periods.
legislative developments and evaluate the potential
impact of the Pillar Two Framework on future periods.
The application of tax regulations involves numerous
uncertainties, and in the normal course of business US
The application of tax regulations involves numerous
and non-US tax authorities may review and challenge tax
uncertainties, and in the normal course of business US
positions adopted by BlackRock. These challenges may
and non-US tax authorities may review and challenge tax
result in adjustments to, or impact the timing or amount
positions adopted by BlackRock. These challenges may
of, taxable income, deductions or other tax allocations,
result in adjustments to, or impact the timing or amount
which may adversely affect BlackRock’s effective tax rate
of, taxable income, deductions or other tax allocations,
and overall financial condition. Similarly, the Company
which may adversely affect BlackRock’s effective tax rate
manages assets in products and accounts that have
and overall financial condition. Similarly, the Company
investment objectives which may conform to tax positions
manages assets in products and accounts that have
adopted by BlackRock or to specific tax rules. To the extent
investment objectives which may conform to tax positions
there are changes in tax law or policy, or regulatory
adopted by BlackRock or to specific tax rules. To the extent
challenges to tax positions adopted by BlackRock, the
there are changes in tax law or policy, or regulatory
value or attractiveness of such investments may be
challenges to tax positions adopted by BlackRock, the
diminished and BlackRock may suffer financial or
value or attractiveness of such investments may be
reputational harm.
diminished and BlackRock may suffer financial or
reputational harm.
Item 1B. Unresolved Staff
Item 1B. Unresolved Staff
Comments
Comments
The Company has no unresolved comments from the
Securities and Exchange Commission (“SEC”) staff
The Company has no unresolved comments from the
relating to BlackRock’s periodic or current reports filed
Securities and Exchange Commission (“SEC”) staff
with the SEC pursuant to the Exchange Act.
relating to BlackRock’s periodic or current reports filed
with the SEC pursuant to the Exchange Act.
Item 1C. Cybersecurity
Item 1C. Cybersecurity
CYBERSECURITY RISK MANAGEMENT A ND
STRATEGY
CYBERSECURITY RISK MANAGEMENT A ND
STRATEGY
BlackRock recognizes the importance of identifying,
assessing, and managing material risks associated with
BlackRock recognizes the importance of identifying,
cybersecurity threats. Cybersecurity represents an
assessing, and managing material risks associated with
important component of the Company’s approach to
cybersecurity threats. Cybersecurity represents an
enterprise risk management (“ERM”). The Company
important component of the Company’s approach to
leverages a multi-lines-of-defense model with
enterprise risk management (“ERM”). The Company
cybersecurity operational processes executed by global
leverages a multi-lines-of-defense model with
information security and other teams across the firm and
cybersecurity operational processes executed by global
dedicated internal audit technology and technology risk
information security and other teams across the firm and
management (“TRM”) teams that independently review
dedicated internal audit technology and technology risk
technology risks. The Company’s cybersecurity program is
management (“TRM”) teams that independently review
fully integrated into its ERM framework and is aligned with
technology risks. The Company’s cybersecurity program is
recognized frameworks, including NIST CSF, FFIEC CAT,
fully integrated into its ERM framework and is aligned with
FedRAMP, SOC 1/2, ISO 27001/2 and others. BlackRock
recognized frameworks, including NIST CSF, FFIEC CAT,
aims to inform and continuously improve its cybersecurity
FedRAMP, SOC 1/2, ISO 27001/2 and others. BlackRock
program through engagement with regulatory, client,
aims to inform and continuously improve its cybersecurity
insurer, vendor, partner, peer, government and industry
program through engagement with regulatory, client,
organizations and associations, as well as external audit,
insurer, vendor, partner, peer, government and industry
technology risk, information security and other
organizations and associations, as well as external audit,
assessments.
technology risk, information security and other
assessments.
BlackRock seeks to address cybersecurity risks through a
global, multilayered strategy of control programs that is
BlackRock seeks to address cybersecurity risks through a
designed to preserve the confidentiality, integrity and
global, multilayered strategy of control programs that is
availability of the information that BlackRock collects and
designed to preserve the confidentiality, integrity and
stores by identifying, preventing and mitigating
availability of the information that BlackRock collects and
cybersecurity threats and incidents. As one of the critical
stores by identifying, preventing and mitigating
elements of the Company’s overall ERM framework,
cybersecurity threats and incidents. As one of the critical
BlackRock’s cybersecurity program is focused on the
elements of the Company’s overall ERM framework,
following key areas:
BlackRock’s cybersecurity program is focused on the
following key areas:
• Governance: As discussed in more detail under the
heading “Cybersecurity Governance” below, the
• Governance: As discussed in more detail under the
Board’s oversight of cybersecurity risk management
heading “Cybersecurity Governance” below, the
is supported by the Risk Committee, which regularly
Board’s oversight of cybersecurity risk management
interacts with the Company’s risk management
is supported by the Risk Committee, which regularly
function, the Company’s Chief Risk Officer (“CRO”)
interacts with the Company’s risk management
and Chief Information Security Officer (“CISO”), along
function, the Company’s Chief Risk Officer (“CRO”)
with other members of management. In addition,
and Chief Information Security Officer (“CISO”), along
technology and cybersecurity risks are formally
with other members of management. In addition,
overseen by a dedicated management risk
technology and cybersecurity risks are formally
governance committee, the Technology Risk and
overseen by a dedicated management risk
Cybersecurity Committee (“TRCC”), which is a
governance committee, the Technology Risk and
sub-committee of the firmwide Enterprise Risk
Cybersecurity Committee (“TRCC”), which is a
Committee (“ERC”).
sub-committee of the firmwide Enterprise Risk
Committee (“ERC”).
• Cross-Functional Approach: The Company has
• Cross-Functional Approach: The Company has
implemented a global, cross-functional approach to
identifying, preventing, and mitigating cybersecurity
implemented a global, cross-functional approach to
threats and incidents, while also implementing
identifying, preventing, and mitigating cybersecurity
layered preventative, detective, reactive and recovery
threats and incidents, while also implementing
controls to identify and manage cybersecurity risks.
layered preventative, detective, reactive and recovery
controls to identify and manage cybersecurity risks.
• Safeguards: The Company deploys a range of people,
process and technical controls that are designed to
• Safeguards: The Company deploys a range of people,
protect the Company’s information systems from
process and technical controls that are designed to
cybersecurity threats, which may include, among
protect the Company’s information systems from
others: physical security controls; perimeter controls,
cybersecurity threats, which may include, among
including technical assessments, firewalls, network
others: physical security controls; perimeter controls,
segregation, intrusion detection and prevention;
including technical assessments, firewalls, network
tabletop exercises; ongoing vulnerability and patch
segregation, intrusion detection and prevention;
management; vendor due diligence; multi-factor
tabletop exercises; ongoing vulnerability and patch
authentication; device encryption; application
management; vendor due diligence; multi-factor
security, code testing and penetration testing;
authentication; device encryption; application
security, code testing and penetration testing;
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
37
37
endpoint security, including anti-malware protection,
threat intel and response, managed detection and
endpoint security, including anti-malware protection,
response, security configuration management,
threat intel and response, managed detection and
portable storage device lockdown, and restricted
response, security configuration management,
administrative privileges; employee awareness,
portable storage device lockdown, and restricted
training, and phishing testing; data loss prevention
administrative privileges; employee awareness,
program and monitoring; information security
training, and phishing testing; data loss prevention
incident reporting and monitoring; and layered and
program and monitoring; information security
comprehensive access controls.
incident reporting and monitoring; and layered and
comprehensive access controls.
• Incident Response and Recovery Planning: The
Company has established and maintains incident
• Incident Response and Recovery Planning: The
response and recovery plans that address the
Company has established and maintains incident
Company’s response to a cybersecurity incident,
response and recovery plans that address the
including processes designed to assess, escalate,
Company’s response to a cybersecurity incident,
contain, investigate and remediate the incident, as
including processes designed to assess, escalate,
well as to comply with applicable legal obligations
contain, investigate and remediate the incident, as
and mitigate potential reputational damage. Such
well as to comply with applicable legal obligations
plans are evaluated on a periodic basis.
and mitigate potential reputational damage. Such
plans are evaluated on a periodic basis.
• Third-Party Risk Management: The Company
• Third-Party Risk Management: The Company
maintains a risk-based approach to identifying and
overseeing cybersecurity risks presented by third
maintains a risk-based approach to identifying and
parties, including vendors, service providers,
overseeing cybersecurity risks presented by third
counterparties and clients, as well as the systems of
parties, including vendors, service providers,
third parties that could significantly and adversely
counterparties and clients, as well as the systems of
impact the Company’s business in the event of a
third parties that could significantly and adversely
cybersecurity incident affecting those third-party
impact the Company’s business in the event of a
systems. Operational incidents can arise as a result of
cybersecurity incident affecting those third-party
failures by third parties with which the Company does
systems. Operational incidents can arise as a result of
business, such as failures by internet, communication
failures by third parties with which the Company does
technology and cloud service providers or other
business, such as failures by internet, communication
vendors to adequately follow processes and
technology and cloud service providers or other
procedures, safeguard their systems or prevent
vendors to adequately follow processes and
system disruptions or cyber-attacks. Third-party risks
procedures, safeguard their systems or prevent
are included within BlackRock’s ERM framework, and
system disruptions or cyber-attacks. Third-party risks
risk identification and mitigation are supported by the
are included within BlackRock’s ERM framework, and
Company’s cybersecurity program. BlackRock also
risk identification and mitigation are supported by the
performs diligence on certain third parties and
Company’s cybersecurity program. BlackRock also
monitors cybersecurity threats and risks identified
performs diligence on certain third parties and
through such diligence.
monitors cybersecurity threats and risks identified
through such diligence.
• Education and Awareness: The Company’s
• Education and Awareness: The Company’s
employees and contractors are required to complete
an annual information security training to equip them
employees and contractors are required to complete
with effective tools to address cybersecurity threats,
an annual information security training to equip them
and receive communications on the Company’s
with effective tools to address cybersecurity threats,
evolving information security policies and procedures.
and receive communications on the Company’s
evolving information security policies and procedures.
The Company’s global information security team, in
collaboration with the technology risk and internal audit
The Company’s global information security team, in
teams, engages in the periodic assessment and testing of
collaboration with the technology risk and internal audit
the Company’s cyber risks and cybersecurity program.
teams, engages in the periodic assessment and testing of
These efforts may include a wide range of activities,
the Company’s cyber risks and cybersecurity program.
including audits, assessments, wargames and “tabletop”
These efforts may include a wide range of activities,
exercises, threat modeling, vulnerability testing and other
including audits, assessments, wargames and “tabletop”
exercises focused on evaluating the effectiveness of the
exercises, threat modeling, vulnerability testing and other
Company’s cybersecurity measures and planning.
exercises focused on evaluating the effectiveness of the
BlackRock also participates in financial services industry
Company’s cybersecurity measures and planning.
and government forums in an effort to improve both
BlackRock also participates in financial services industry
internal and sector cybersecurity defense. The Company
and government forums in an effort to improve both
regularly engages third parties and advisors to assess its
internal and sector cybersecurity defense. The Company
cybersecurity control environment. The results of certain
regularly engages third parties and advisors to assess its
program and control assessments are reported to the Risk
cybersecurity control environment. The results of certain
Committee, and BlackRock adjusts its cybersecurity
program and control assessments are reported to the Risk
program as appropriate based on the information
Committee, and BlackRock adjusts its cybersecurity
provided by these assessments.
program as appropriate based on the information
provided by these assessments.
38 BlackRock | 2023 Form 10-K
38 BlackRock | 2023 Form 10-K
As of December 31, 2023, BlackRock is not aware of any
cybersecurity risks that have materially affected or are
As of December 31, 2023, BlackRock is not aware of any
reasonably likely to materially affect BlackRock’s business
cybersecurity risks that have materially affected or are
strategy, results of operations, or financial condition. For
reasonably likely to materially affect BlackRock’s business
additional information on whether and how risks from
strategy, results of operations, or financial condition. For
cybersecurity threats are reasonably likely to materially
additional information on whether and how risks from
affect BlackRock, see “A cyber-attack or a failure to
cybersecurity threats are reasonably likely to materially
implement effective information and cybersecurity
affect BlackRock, see “A cyber-attack or a failure to
policies, procedures and capabilities could disrupt
implement effective information and cybersecurity
operations and lead to financial losses and reputational
policies, procedures and capabilities could disrupt
harm, which may cause BlackRock’s AUM, revenue and
operations and lead to financial losses and reputational
earnings to decline.” under Part I, Item 1A, Risk Factors
harm, which may cause BlackRock’s AUM, revenue and
herein.
earnings to decline.” under Part I, Item 1A, Risk Factors
herein.
CYBERSECURITY GOVERNANCE
CYBERSECURITY GOVERNANCE
BlackRock’s Board of Directors is actively engaged in the
oversight of BlackRock’s risk management program. The
BlackRock’s Board of Directors is actively engaged in the
Risk Committee assists the Board with its oversight of the
oversight of BlackRock’s risk management program. The
Company’s levels of risk, risk assessment, risk
Risk Committee assists the Board with its oversight of the
management and related policies and processes,
Company’s levels of risk, risk assessment, risk
including risks arising from cybersecurity threats. The Risk
management and related policies and processes,
Committee receives regular reports on the Company’s
including risks arising from cybersecurity threats. The Risk
cybersecurity program, technology resilience risk
Committee receives regular reports on the Company’s
management and related developments from members of
cybersecurity program, technology resilience risk
the Company’s information security team, including the
management and related developments from members of
CISO. The Board and the Risk Committee also receive
the Company’s information security team, including the
information regarding cybersecurity incidents that meet
CISO. The Board and the Risk Committee also receive
certain reporting thresholds. On an annual basis, senior
information regarding cybersecurity incidents that meet
members of BlackRock’s technology, risk and information
certain reporting thresholds. On an annual basis, senior
security teams provide a comprehensive overview of
members of BlackRock’s technology, risk and information
BlackRock’s cyber risk and related programs to a joint
security teams provide a comprehensive overview of
session of the Board’s Risk and Audit Committees.
BlackRock’s cyber risk and related programs to a joint
session of the Board’s Risk and Audit Committees.
Technology and cybersecurity risks at BlackRock are also
overseen by the TRCC, a dedicated management risk
Technology and cybersecurity risks at BlackRock are also
governance committee and sub-committee of the
overseen by the TRCC, a dedicated management risk
firmwide ERC. The chair of the TRCC is appointed by the
governance committee and sub-committee of the
head of Enterprise Risk Management at the Company and
firmwide ERC. The chair of the TRCC is appointed by the
its members include the CISO as well as a broad range of
head of Enterprise Risk Management at the Company and
senior business stakeholders across BlackRock. The TRCC
its members include the CISO as well as a broad range of
is responsible for oversight of BlackRock’s technology and
senior business stakeholders across BlackRock. The TRCC
cybersecurity risk management practices and helps
is responsible for oversight of BlackRock’s technology and
ensure that technology and cybersecurity risks remain
cybersecurity risk management practices and helps
within firmwide risk tolerances and technology and
ensure that technology and cybersecurity risks remain
cybersecurity risk issues are escalated as appropriate to
within firmwide risk tolerances and technology and
the ERC and other committees. The TRCC also reviews any
cybersecurity risk issues are escalated as appropriate to
relevant technology and cybersecurity risk related issues
the ERC and other committees. The TRCC also reviews any
and helps ensure that they are appropriately escalated,
relevant technology and cybersecurity risk related issues
reported, and remediated.
and helps ensure that they are appropriately escalated,
reported, and remediated.
BlackRock’s cybersecurity risk management and strategy
processes, which are discussed in greater detail above, are
BlackRock’s cybersecurity risk management and strategy
led by the Company’s CISO. As of December 31, 2023, the
processes, which are discussed in greater detail above, are
CISO had over 30 years of experience in information
led by the Company’s CISO. As of December 31, 2023, the
technology with a 25-year concentration in information
CISO had over 30 years of experience in information
security, including previously serving as the CISO at
technology with a 25-year concentration in information
several global financial institutions. He also holds the
security, including previously serving as the CISO at
Certified Information Systems Security Professional
several global financial institutions. He also holds the
certification. The CISO works closely with the leadership
Certified Information Systems Security Professional
team and other subject matter experts in the global
certification. The CISO works closely with the leadership
cybersecurity group, who collectively have extensive prior
team and other subject matter experts in the global
work experience in various roles involving managing
cybersecurity group, who collectively have extensive prior
information security, developing cybersecurity strategy,
work experience in various roles involving managing
implementing effective information and cybersecurity
information security, developing cybersecurity strategy,
programs and overseeing cybersecurity controls in
implementing effective information and cybersecurity
technology risk and audit functions, as well as having
programs and overseeing cybersecurity controls in
relevant degrees and industry-leading certifications.
technology risk and audit functions, as well as having
relevant degrees and industry-leading certifications.
The CISO and members of the TRCC monitor the
prevention, detection, mitigation and remediation of
The CISO and members of the TRCC monitor the
cybersecurity incidents through their management of, and
prevention, detection, mitigation and remediation of
participation in, the cybersecurity risk management
cybersecurity incidents through their management of, and
processes described above, including the operation of
participation in, the cybersecurity risk management
BlackRock’s incident response plan.
processes described above, including the operation of
BlackRock’s incident response plan.
Item 2. Properties
Item 2. Properties
BlackRock’s principal office, which is leased, is located at
50 Hudson Yards, New York, New York. BlackRock leases
BlackRock’s principal office, which is leased, is located at
additional office space throughout the world, including
50 Hudson Yards, New York, New York. BlackRock leases
Atlanta, Belgrade (Serbia), Budapest, Edinburgh, Gurgaon
additional office space throughout the world, including
(India), Hong Kong, London, Mumbai (India), Princeton
Atlanta, Belgrade (Serbia), Budapest, Edinburgh, Gurgaon
(New Jersey), San Francisco and Singapore. The Company
(India), Hong Kong, London, Mumbai (India), Princeton
also owns an 84,500 square foot office building in
(New Jersey), San Francisco and Singapore. The Company
Wilmington, Delaware and a 43,000 square foot data
also owns an 84,500 square foot office building in
center in Amherst, New York.
Wilmington, Delaware and a 43,000 square foot data
center in Amherst, New York.
Item 3. Legal Proceedings
Item 3. Legal Proceedings
For a discussion of the Company’s legal proceedings, see
Note 15, Commitments and Contingencies, in the notes to
For a discussion of the Company’s legal proceedings, see
the consolidated financial statements contained in Part II,
Note 15, Commitments and Contingencies, in the notes to
Item 8.
the consolidated financial statements contained in Part II,
Item 8.
Item 4. Mine Safety Disclosures
Item 4. Mine Safety Disclosures
Not applicable.
Not applicable.
PART II
PART II
Item 5. Market for Registrant’s
Item 5. Market for Registrant’s
Common Equity, Related
Common Equity, Related
Stockholder Matters and Issuer
Stockholder Matters and Issuer
Purchases of Equity Securities
Purchases of Equity Securities
BlackRock’s common stock is listed on the NYSE and is
traded under the symbol “BLK”. At the close of business on
BlackRock’s common stock is listed on the NYSE and is
January 31, 2024, there were 197 common stockholders
traded under the symbol “BLK”. At the close of business on
of record. Common stockholders include institutional or
January 31, 2024, there were 197 common stockholders
omnibus accounts that hold common stock for many
of record. Common stockholders include institutional or
underlying investors.
omnibus accounts that hold common stock for many
underlying investors.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
39
39
The following table sets forth for the periods indicated the
dividends declared per share for the common stock as
The following table sets forth for the periods indicated the
reported on the NYSE:
dividends declared per share for the common stock as
reported on the NYSE:
2023
2023
2022
2022
First Quarter
First Quarter
Second Quarter
Second Quarter
Third Quarter
Third Quarter
Fourth Quarter
Fourth Quarter
First Quarter
First Quarter
Second Quarter
Second Quarter
Third Quarter
Third Quarter
Fourth Quarter
Fourth Quarter
Cash
Dividend
Cash
Declared
Dividend
Declared
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00
$4.88
$4.88
$4.88
$4.88
$4.88
$4.88
$4.88
$4.88
The closing price of BlackRock’s common stock as of
February 22, 2024 was $813.44.
The closing price of BlackRock’s common stock as of
February 22, 2024 was $813.44.
DIVIDENDS
DIVIDENDS
On January 12, 2024, the Board of Directors approved
BlackRock’s quarterly dividend of $5.10 per share to be
On January 12, 2024, the Board of Directors approved
paid on March 22, 2024 to stockholders of record at the
BlackRock’s quarterly dividend of $5.10 per share to be
close of business on March 7, 2024.
paid on March 22, 2024 to stockholders of record at the
close of business on March 7, 2024.
ISSUER PURCHASES OF EQUITY SECURITIES
ISSUER PURCHASES OF EQUITY SECURITIES
During the three months ended December 31, 2023, the Company made the following purchases of its common stock,
which is registered pursuant to Section 12(b) of the Exchange Act.
During the three months ended December 31, 2023, the Company made the following purchases of its common stock,
which is registered pursuant to Section 12(b) of the Exchange Act.
Total
Number of
Total
Shares
Number of
Purchased(1)
Shares
Purchased(1)
211,477
211,477
328,204
328,204
31,900
31,900
571,581
571,581
Average
Price Paid
Average
per Share
Price Paid
per Share
$616.97
$616.97
$689.24
$689.24
$759.41
$759.41
$666.42
$666.42
Total Number of
Shares Purchased
Total Number of
as Part of Publicly
Shares Purchased
Announced Plans
as Part of Publicly
or Programs
Announced Plans
or Programs
208,564
208,564
326,240
326,240
28,312
28,312
563,116
563,116
Maximum
Number of
Maximum
Shares That
Number of
May Yet Be
Shares That
Purchased
May Yet Be
Under the
Purchased
Plans or
Under the
Programs(1)
Plans or
Programs(1)
6,087,167
6,087,167
5,760,927
5,760,927
5,732,615
5,732,615
October 1, 2023 through October 31, 2023
October 1, 2023 through October 31, 2023
November 1, 2023 through November 30, 2023
November 1, 2023 through November 30, 2023
December 1, 2023 through December 31, 2023
December 1, 2023 through December 31, 2023
Total
Total
(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
certain restricted stock or restricted stock unit awards and purchases made by the Company as part of the share repurchase program that the Company announced in July 2010, which initially
(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
authorized the repurchase of 5.1 million shares with no stated expiration. In January 2023, the Company announced that the Board of Directors authorized the repurchase of an additional
certain restricted stock or restricted stock unit awards and purchases made by the Company as part of the share repurchase program that the Company announced in July 2010, which initially
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.
authorized the repurchase of 5.1 million shares with no stated expiration. In January 2023, the Company announced that the Board of Directors authorized the repurchase of an additional
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]
40 BlackRock | 2023 Form 10-K
40 BlackRock | 2023 Form 10-K
Item 7. Management’s Discussion
Item 7. Management’s Discussion
and Analysis of Financial Condition
and Analysis of Financial Condition
and Results of Operations
and Results of Operations
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
This report, and other statements that BlackRock may
make, may contain forward-looking statements within the
This report, and other statements that BlackRock may
meaning of the Private Securities Litigation Reform Act,
make, may contain forward-looking statements within the
with respect to BlackRock’s future financial or business
meaning of the Private Securities Litigation Reform Act,
performance, strategies or expectations. Forward-looking
with respect to BlackRock’s future financial or business
statements are typically identified by words or phrases
performance, strategies or expectations. Forward-looking
such as “trend,” “potential,” “opportunity,” “pipeline,”
statements are typically identified by words or phrases
“believe,” “comfortable,” “expect,” “anticipate,” “current,”
such as “trend,” “potential,” “opportunity,” “pipeline,”
“intention,” “estimate,” “position,” “assume,” “outlook,”
“believe,” “comfortable,” “expect,” “anticipate,” “current,”
“continue,” “remain,” “maintain,” “sustain,” “seek,”
“intention,” “estimate,” “position,” “assume,” “outlook,”
“achieve,” and similar expressions, or future or conditional
“continue,” “remain,” “maintain,” “sustain,” “seek,”
verbs such as “will,” “would,” “should,” “could,” “may” and
“achieve,” and similar expressions, or future or conditional
similar expressions.
verbs such as “will,” “would,” “should,” “could,” “may” and
similar expressions.
BlackRock cautions that forward-looking statements are
subject to numerous assumptions, risks and uncertainties,
BlackRock cautions that forward-looking statements are
which change over time. Forward-looking statements
subject to numerous assumptions, risks and uncertainties,
speak only as of the date they are made, and BlackRock
which change over time. Forward-looking statements
assumes no duty to and does not undertake to update
speak only as of the date they are made, and BlackRock
forward-looking statements. Actual results could differ
assumes no duty to and does not undertake to update
materially from those anticipated in forward-looking
forward-looking statements. Actual results could differ
statements and future results could differ materially from
materially from those anticipated in forward-looking
historical performance.
statements and future results could differ materially from
historical performance.
BlackRock has previously disclosed risk factors in its
Securities and Exchange Commission (“SEC”) reports.
BlackRock has previously disclosed risk factors in its
These risk factors and those identified elsewhere in this
Securities and Exchange Commission (“SEC”) reports.
report, among others, could cause actual results to differ
These risk factors and those identified elsewhere in this
materially from forward-looking statements or historical
report, among others, could cause actual results to differ
performance and include: (1) the introduction, withdrawal,
materially from forward-looking statements or historical
success and timing of business initiatives and strategies;
performance and include: (1) the introduction, withdrawal,
(2) changes and volatility in political, economic or industry
success and timing of business initiatives and strategies;
conditions, the interest rate environment, foreign
(2) changes and volatility in political, economic or industry
exchange rates or financial and capital markets, which
conditions, the interest rate environment, foreign
could result in changes in demand for products or services
exchange rates or financial and capital markets, which
or in the value of AUM; (3) the relative and absolute
could result in changes in demand for products or services
investment performance of BlackRock’s investment
or in the value of AUM; (3) the relative and absolute
products; (4) BlackRock’s ability to develop new products
investment performance of BlackRock’s investment
and services that address client preferences; (5) the
products; (4) BlackRock’s ability to develop new products
impact of increased competition; (6) the impact of future
and services that address client preferences; (5) the
acquisitions or divestitures, including the acquisition of
impact of increased competition; (6) the impact of future
Global Infrastructure Management, LLC (referred to
acquisitions or divestitures, including the acquisition of
herein as Global Infrastructure Partners (“GIP”) or the “GIP
Global Infrastructure Management, LLC (referred to
Transaction”); (7) BlackRock’s ability to integrate acquired
herein as Global Infrastructure Partners (“GIP”) or the “GIP
businesses successfully, including GIP; (8) risks related to
Transaction”); (7) BlackRock’s ability to integrate acquired
the GIP Transaction, including the possibility that the GIP
businesses successfully, including GIP; (8) risks related to
Transaction does not close, the failure to satisfy the
the GIP Transaction, including the possibility that the GIP
closing conditions, the possibility that expected synergies
Transaction does not close, the failure to satisfy the
and value creation from the GIP Transaction will not be
closing conditions, the possibility that expected synergies
realized, or will not be realized within the expected time
and value creation from the GIP Transaction will not be
period, and impacts to business and operational
realized, or will not be realized within the expected time
relationships related to disruptions from the GIP
period, and impacts to business and operational
Transaction; (9) the unfavorable resolution of legal
relationships related to disruptions from the GIP
proceedings; (10) the extent and timing of any share
Transaction; (9) the unfavorable resolution of legal
repurchases; (11) the impact, extent and timing of
proceedings; (10) the extent and timing of any share
technological changes and the adequacy of intellectual
repurchases; (11) the impact, extent and timing of
property, data, information and cybersecurity protection;
technological changes and the adequacy of intellectual
(12) the failure to effectively manage the development and
property, data, information and cybersecurity protection;
use of AI; (13) attempts to circumvent BlackRock’s
(12) the failure to effectively manage the development and
use of AI; (13) attempts to circumvent BlackRock’s
operational control environment or the potential for
human error in connection with BlackRock’s operational
operational control environment or the potential for
systems; (14) the impact of legislative and regulatory
human error in connection with BlackRock’s operational
actions and reforms, regulatory, supervisory or
systems; (14) the impact of legislative and regulatory
enforcement actions of government agencies and
actions and reforms, regulatory, supervisory or
governmental scrutiny relating to BlackRock; (15) changes
enforcement actions of government agencies and
in law and policy and uncertainty pending any such
governmental scrutiny relating to BlackRock; (15) changes
changes; (16) any failure to effectively manage conflicts of
in law and policy and uncertainty pending any such
interest; (17) damage to BlackRock’s reputation;
changes; (16) any failure to effectively manage conflicts of
(18) increasing focus from stakeholders regarding ESG
interest; (17) damage to BlackRock’s reputation;
matters; (19) geopolitical unrest, terrorist activities, civil or
(18) increasing focus from stakeholders regarding ESG
international hostilities, and other events outside
matters; (19) geopolitical unrest, terrorist activities, civil or
BlackRock’s control, including wars, natural disasters and
international hostilities, and other events outside
health crises, which may adversely affect the general
BlackRock’s control, including wars, natural disasters and
economy, domestic and local financial and capital
health crises, which may adversely affect the general
markets, specific industries or BlackRock; (20) climate-
economy, domestic and local financial and capital
related risks to BlackRock’s business, products, operations
markets, specific industries or BlackRock; (20) climate-
and clients; (21) the ability to attract, train and retain
related risks to BlackRock’s business, products, operations
highly qualified and diverse professionals;
and clients; (21) the ability to attract, train and retain
(22) fluctuations in the carrying value of BlackRock’s
highly qualified and diverse professionals;
economic investments; (23) the impact of changes to tax
(22) fluctuations in the carrying value of BlackRock’s
legislation, including income, payroll and transaction
economic investments; (23) the impact of changes to tax
taxes, and taxation on products, which could affect the
legislation, including income, payroll and transaction
value proposition to clients and, generally, the tax position
taxes, and taxation on products, which could affect the
of the Company; (24) BlackRock’s success in negotiating
value proposition to clients and, generally, the tax position
distribution arrangements and maintaining distribution
of the Company; (24) BlackRock’s success in negotiating
channels for its products; (25) the failure by key third-
distribution arrangements and maintaining distribution
party providers of BlackRock to fulfill their obligations to
channels for its products; (25) the failure by key third-
the Company; (26) operational, technological and
party providers of BlackRock to fulfill their obligations to
regulatory risks associated with BlackRock’s major
the Company; (26) operational, technological and
technology partnerships; (27) any disruption to the
regulatory risks associated with BlackRock’s major
operations of third parties whose functions are integral to
technology partnerships; (27) any disruption to the
BlackRock’s ETF platform; (28) the impact of BlackRock
operations of third parties whose functions are integral to
electing to provide support to its products from time to
BlackRock’s ETF platform; (28) the impact of BlackRock
time and any potential liabilities related to securities
electing to provide support to its products from time to
lending or other indemnification obligations; and (29) the
time and any potential liabilities related to securities
impact of problems, instability or failure of other financial
lending or other indemnification obligations; and (29) the
institutions or the failure or negative performance of
impact of problems, instability or failure of other financial
products offered by other financial institutions.
institutions or the failure or negative performance of
products offered by other financial institutions.
OVERVIEW
OVERVIEW
BlackRock, Inc. (together, with its subsidiaries, unless the
context otherwise indicates, “BlackRock” or the
BlackRock, Inc. (together, with its subsidiaries, unless the
“Company”) is a leading publicly traded investment
context otherwise indicates, “BlackRock” or the
management firm with $10.0 trillion of AUM at
“Company”) is a leading publicly traded investment
December 31, 2023. With approximately 19,800
management firm with $10.0 trillion of AUM at
employees in more than 30 countries, BlackRock provides
December 31, 2023. With approximately 19,800
a broad range of investment management and technology
employees in more than 30 countries, BlackRock provides
services to institutional and retail clients in more than 100
a broad range of investment management and technology
countries across the globe. For further information see
services to institutional and retail clients in more than 100
Note 1, Business Overview, and Note 26, Segment
countries across the globe. For further information see
Information, in the notes to the consolidated financial
Note 1, Business Overview, and Note 26, Segment
statements contained in Part II, Item 8.
Information, in the notes to the consolidated financial
statements contained in Part II, Item 8.
The following discussion includes a comparison of
BlackRock’s results for 2023 and 2022. For a discussion of
The following discussion includes a comparison of
BlackRock’s results for 2021 and a comparison of results
BlackRock’s results for 2023 and 2022. For a discussion of
for 2022 and 2021, see Item 7, Management’s Discussion
BlackRock’s results for 2021 and a comparison of results
and Analysis of Financial Condition and Results of
for 2022 and 2021, see Item 7, Management’s Discussion
Operations, of the Company’s Annual Report on Form 10-K
and Analysis of Financial Condition and Results of
for the year ended December 31, 2022, which was filed
Operations, of the Company’s Annual Report on Form 10-K
with the SEC on February 24, 2023.
for the year ended December 31, 2022, which was filed
with the SEC on February 24, 2023.
Acquisitions
Acquisitions
In August 2023, BlackRock completed the acquisition of
Kreos Capital, a provider of growth and venture debt
In August 2023, BlackRock completed the acquisition of
financing to companies in the technology and healthcare
Kreos Capital, a provider of growth and venture debt
industries (the “Kreos Transaction”). The acquisition adds
financing to companies in the technology and healthcare
to BlackRock’s position as a leading global credit asset
industries (the “Kreos Transaction”). The acquisition adds
manager and advances its ambitions to provide clients
to BlackRock’s position as a leading global credit asset
with a diverse range of private market investment
manager and advances its ambitions to provide clients
products and solutions. Total consideration for the
with a diverse range of private market investment
transaction was approximately $250 million, which
products and solutions. Total consideration for the
included contingent consideration.
transaction was approximately $250 million, which
included contingent consideration.
In January 2024, BlackRock announced that it had
entered into a definitive agreement to acquire 100% of the
In January 2024, BlackRock announced that it had
business and assets of GIP, a leading independent
entered into a definitive agreement to acquire 100% of the
infrastructure fund manager, for $3 billion in cash and
business and assets of GIP, a leading independent
approximately 12 million shares of BlackRock common
infrastructure fund manager, for $3 billion in cash and
stock. Approximately 30% of the total consideration, all in
approximately 12 million shares of BlackRock common
stock, will be deferred and will be issued subject to the
stock. Approximately 30% of the total consideration, all in
satisfaction of certain post-closing events. The Company
stock, will be deferred and will be issued subject to the
intends to fund the cash consideration through $3 billion
satisfaction of certain post-closing events. The Company
of additional debt. The Company believes the combination
intends to fund the cash consideration through $3 billion
of GIP with BlackRock’s complementary infrastructure
of additional debt. The Company believes the combination
offerings will create a broad global infrastructure
of GIP with BlackRock’s complementary infrastructure
franchise with differentiated origination and asset
offerings will create a broad global infrastructure
management capabilities. The GIP Transaction is expected
franchise with differentiated origination and asset
to close in the third quarter of 2024 subject to customary
management capabilities. The GIP Transaction is expected
regulatory approvals and other closing conditions.
to close in the third quarter of 2024 subject to customary
regulatory approvals and other closing conditions.
B u s ines s Out lo o k
B u s ines s Out lo o k
BlackRock’s strategy continues to be guided by the
Company’s clients’ needs and focus on the long-term,
BlackRock’s strategy continues to be guided by the
which the Company believes better enables it to deliver
Company’s clients’ needs and focus on the long-term,
durable returns for shareholders and create value for all of
which the Company believes better enables it to deliver
its stakeholders.
durable returns for shareholders and create value for all of
its stakeholders.
BlackRock’s framework for long-term shareholder value
creation is predicated on generating differentiated organic
BlackRock’s framework for long-term shareholder value
growth, leveraging scale to increase operating margins
creation is predicated on generating differentiated organic
over time, and returning capital to shareholders on a
growth, leveraging scale to increase operating margins
consistent basis. BlackRock’s diversified platform, in terms
over time, and returning capital to shareholders on a
of style, product, client and geography, enables it to
consistent basis. BlackRock’s diversified platform, in terms
generate more stable cash flows through market cycles,
of style, product, client and geography, enables it to
positioning BlackRock to invest for the long-term by
generate more stable cash flows through market cycles,
striking an appropriate balance between investing for
positioning BlackRock to invest for the long-term by
future growth and prudent discretionary expense
striking an appropriate balance between investing for
management.
future growth and prudent discretionary expense
management.
In January 2024, BlackRock announced two changes in
anticipation of the evolution the Company sees ahead for
In January 2024, BlackRock announced two changes in
asset management and the capital markets. First,
anticipation of the evolution the Company sees ahead for
BlackRock believes that the strategic re-architecture of the
asset management and the capital markets. First,
organization to embed its ETF and Index expertise across
BlackRock believes that the strategic re-architecture of the
the entire firm will simplify and improve how the Company
organization to embed its ETF and Index expertise across
works and delivers for clients. Second, the Company also
the entire firm will simplify and improve how the Company
believes that the acquisition of GIP will propel its
works and delivers for clients. Second, the Company also
leadership in the fast-growing market for hard-asset
believes that the acquisition of GIP will propel its
infrastructure.
leadership in the fast-growing market for hard-asset
infrastructure.
A number of long-term structural trends support an
acceleration in infrastructure investment. These include
A number of long-term structural trends support an
increasing global demand for upgraded digital
acceleration in infrastructure investment. These include
infrastructure like fiber broadband, cell towers and data
increasing global demand for upgraded digital
centers; renewed investment in logistical hubs such as
infrastructure like fiber broadband, cell towers and data
airports, railways and shipping ports as supply chains are
centers; renewed investment in logistical hubs such as
rewired; and a movement toward increased energy
airports, railways and shipping ports as supply chains are
rewired; and a movement toward increased energy
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
41
41
independence in many parts of the world supported by
decarbonization infrastructure.
independence in many parts of the world supported by
decarbonization infrastructure.
The need for new infrastructure coupled with record high
government deficits indicates that the mobilization of
The need for new infrastructure coupled with record high
capital through public-private partnerships will be critical,
government deficits indicates that the mobilization of
and will create compelling investment opportunities for
capital through public-private partnerships will be critical,
clients. The Company believes these dynamics offer
and will create compelling investment opportunities for
clients – current cashflow, inflation-protected, long-
clients. The Company believes these dynamics offer
duration investments.
clients – current cashflow, inflation-protected, long-
duration investments.
The planned combination of GIP with BlackRock’s
complementary infrastructure offerings will create a broad
The planned combination of GIP with BlackRock’s
global infrastructure franchise with differentiated
complementary infrastructure offerings will create a broad
origination and asset management capabilities. Marrying
global infrastructure franchise with differentiated
the proprietary origination and business improvement
origination and asset management capabilities. Marrying
capabilities of GIP and BlackRock’s global corporate and
the proprietary origination and business improvement
sovereign relationships is expected to provide a platform
capabilities of GIP and BlackRock’s global corporate and
for diversified, large-scale sourcing to support deal flow
sovereign relationships is expected to provide a platform
and co-investment opportunities for clients. The Company
for diversified, large-scale sourcing to support deal flow
believes that bringing GIP and BlackRock together will
and co-investment opportunities for clients. The Company
deliver to clients the benefits of broader origination and
believes that bringing GIP and BlackRock together will
business improvement capabilities.
deliver to clients the benefits of broader origination and
business improvement capabilities.
BlackRock’s investment management revenue is primarily
comprised of fees earned as a percentage of AUM and, in
BlackRock’s investment management revenue is primarily
some cases, performance fees, which are normally
comprised of fees earned as a percentage of AUM and, in
expressed as a percentage of fund returns to the client.
some cases, performance fees, which are normally
Numerous factors, including price movements in the
expressed as a percentage of fund returns to the client.
equity, debt or currency markets, or in the price of real
Numerous factors, including price movements in the
assets, commodities or alternative investments in which
equity, debt or currency markets, or in the price of real
BlackRock invests on behalf of clients, and BlackRock’s
assets, commodities or alternative investments in which
ability to maintain strong investment performance, could
BlackRock invests on behalf of clients, and BlackRock’s
impact BlackRock’s AUM, revenue and earnings.
ability to maintain strong investment performance, could
impact BlackRock’s AUM, revenue and earnings.
Recently, central banks globally have paused raising
interest rates, after a rapid rate hiking regime in 2022 and
Recently, central banks globally have paused raising
much of 2023 in an effort to moderate inflation.
interest rates, after a rapid rate hiking regime in 2022 and
BlackRock’s business is directly and indirectly affected by
much of 2023 in an effort to moderate inflation.
changes in global interest rates. Changes in global
BlackRock’s business is directly and indirectly affected by
interest rates may cause BlackRock’s AUM to fluctuate
changes in global interest rates. Changes in global
and introduce volatility to the Company’s base fees, net
interest rates may cause BlackRock’s AUM to fluctuate
income and operating cash flows. BlackRock’s business
and introduce volatility to the Company’s base fees, net
may also be impacted by governmental changes, as well
income and operating cash flows. BlackRock’s business
as potential regulations, foreign and trade policies and
may also be impacted by governmental changes, as well
fiscal spending that may arise as a result of such changes.
as potential regulations, foreign and trade policies and
See Part I, Item 1A, Risk Factors herein for information on
fiscal spending that may arise as a result of such changes.
the possible future effects of changes in global interest
See Part I, Item 1A, Risk Factors herein for information on
rates and governmental changes on the Company’s
the possible future effects of changes in global interest
results.
rates and governmental changes on the Company’s
results.
BlackRock manages $2.8 trillion in fixed income assets,
nearly two-thirds of which are owned by institutions for
BlackRock manages $2.8 trillion in fixed income assets,
strategic or liability-matching purposes. BlackRock
nearly two-thirds of which are owned by institutions for
believes it is well positioned for a stabilizing rate
strategic or liability-matching purposes. BlackRock
environment due to the breadth, diversification and
believes it is well positioned for a stabilizing rate
investment performance of its fixed income platform
environment due to the breadth, diversification and
which encompasses active, exchange-traded funds
investment performance of its fixed income platform
(“ETFs”) and non-ETF index fixed income products, and a
which encompasses active, exchange-traded funds
range of strategies, including unconstrained, high yield,
(“ETFs”) and non-ETF index fixed income products, and a
total return and short-duration.
range of strategies, including unconstrained, high yield,
total return and short-duration.
BlackRock manages $5.3 trillion of equity assets across
markets globally. Beta divergence between equity markets,
BlackRock manages $5.3 trillion of equity assets across
where certain markets perform differently than others,
markets globally. Beta divergence between equity markets,
may lead to an increase in the proportion of BlackRock
where certain markets perform differently than others,
AUM weighted toward lower fee equity products, resulting
may lead to an increase in the proportion of BlackRock
in a decline in BlackRock’s effective fee rate. Divergent
AUM weighted toward lower fee equity products, resulting
market factors may also erode the correlation between the
in a decline in BlackRock’s effective fee rate. Divergent
market factors may also erode the correlation between the
42 BlackRock | 2023 Form 10-K
42 BlackRock | 2023 Form 10-K
growth rates of AUM and investment advisory and
administration fees (collectively “base fees”) and
growth rates of AUM and investment advisory and
securities lending revenue.
administration fees (collectively “base fees”) and
securities lending revenue.
BlackRock’s highly diversified multi-product platform was
created to meet client needs in all market environments
BlackRock’s highly diversified multi-product platform was
and provide clients with choice in how they seek to achieve
created to meet client needs in all market environments
their unique financial goals. BlackRock is positioned to
and provide clients with choice in how they seek to achieve
provide alpha-seeking active, index and cash
their unique financial goals. BlackRock is positioned to
management investment strategies across asset classes
provide alpha-seeking active, index and cash
and geographies. In addition, BlackRock leverages its
management investment strategies across asset classes
world-class risk management, analytics and technology
and geographies. In addition, BlackRock leverages its
capabilities, including the Aladdin platform, on behalf of
world-class risk management, analytics and technology
clients. BlackRock serves a diverse mix of institutional and
capabilities, including the Aladdin platform, on behalf of
retail clients across the globe, as well as investors in ETFs,
clients. BlackRock serves a diverse mix of institutional and
maintaining differentiated client relationships and a
retail clients across the globe, as well as investors in ETFs,
fiduciary focus. The diversity of BlackRock’s platform
maintaining differentiated client relationships and a
facilitates the generation of organic growth in various
fiduciary focus. The diversity of BlackRock’s platform
market environments, and as client preferences evolve.
facilitates the generation of organic growth in various
BlackRock’s long-term strategy remains to keep alpha at
market environments, and as client preferences evolve.
the heart of BlackRock; drive growth in ETFs, private
BlackRock’s long-term strategy remains to keep alpha at
markets, and technology; be the global leader in
the heart of BlackRock; drive growth in ETFs, private
sustainable investing; and lead as a whole portfolio
markets, and technology; be the global leader in
advisor.
sustainable investing; and lead as a whole portfolio
advisor.
BlackRock is a $2.6 trillion active manager, with the active
platform reflecting global reach, interconnectivity across
BlackRock is a $2.6 trillion active manager, with the active
teams and regions, growing data and insights, integrated
platform reflecting global reach, interconnectivity across
technology and risk management and scalable processes
teams and regions, growing data and insights, integrated
– all of which the Company believes enables it to deliver
technology and risk management and scalable processes
more consistent outcomes for clients over the long-term.
– all of which the Company believes enables it to deliver
more consistent outcomes for clients over the long-term.
The ETF industry has been growing rapidly, driven by
structural tailwinds including the use of ETFs as active
The ETF industry has been growing rapidly, driven by
tools, the migration from commission-based to fee-based
structural tailwinds including the use of ETFs as active
wealth management, growth in model portfolios,
tools, the migration from commission-based to fee-based
expansion of digital wealth platforms, and the
wealth management, growth in model portfolios,
modernization of the bond market. BlackRock’s ETF
expansion of digital wealth platforms, and the
growth strategy is centered on increasing scale and
modernization of the bond market. BlackRock’s ETF
pursuing global growth themes in client and product
growth strategy is centered on increasing scale and
segments, including Core, Strategic, which includes Fixed
pursuing global growth themes in client and product
Income, Factors, Sustainable and Thematic ETFs, and
segments, including Core, Strategic, which includes Fixed
Precision Exposures. BlackRock views ETFs as a
Income, Factors, Sustainable and Thematic ETFs, and
technology that facilitates investing, and ETFs have
Precision Exposures. BlackRock views ETFs as a
become core to asset management. The Company believes
technology that facilitates investing, and ETFs have
that the organizational architecture changes that include
become core to asset management. The Company believes
embedding the ETF and Index business across the entire
that the organizational architecture changes that include
firm will accelerate the growth of ETFs and other
embedding the ETF and Index business across the entire
investment strategies at BlackRock. The Company also
firm will accelerate the growth of ETFs and other
believes that ETFs will continue to be a structural growth
investment strategies at BlackRock. The Company also
area as clients turn to ETFs as the preferred vehicle for
believes that ETFs will continue to be a structural growth
investing strategies of all types.
area as clients turn to ETFs as the preferred vehicle for
investing strategies of all types.
Clients are also increasing their allocations to private
markets as they search for diversification and higher
Clients are also increasing their allocations to private
returns. BlackRock has built a broad illiquid alternatives
markets as they search for diversification and higher
platform with $137 billion of AUM across infrastructure,
returns. BlackRock has built a broad illiquid alternatives
private credit, real estate and private equity to meet this
platform with $137 billion of AUM across infrastructure,
demand. As of December 31, 2023, BlackRock has
private credit, real estate and private equity to meet this
approximately $32 billion of committed capital to deploy
demand. As of December 31, 2023, BlackRock has
for institutional clients in a variety of alternatives
approximately $32 billion of committed capital to deploy
strategies, and remains confident in its ability to
for institutional clients in a variety of alternatives
accelerate growth as a leader in private markets.
strategies, and remains confident in its ability to
BlackRock also manages $74 billion in liquid alternatives,
accelerate growth as a leader in private markets.
as well as $84 billion in liquid credit strategies, included
BlackRock also manages $74 billion in liquid alternatives,
within fixed income AUM. The planned acquisition of GIP
as well as $84 billion in liquid credit strategies, included
is expected to add meaningful scale and complementary
within fixed income AUM. The planned acquisition of GIP
capabilities to our infrastructure private markets platform.
is expected to add meaningful scale and complementary
capabilities to our infrastructure private markets platform.
BlackRock continues to invest in technology services
offerings, which enhance the ability to manage portfolios
BlackRock continues to invest in technology services
and risk, effectively serve clients and operate efficiently.
offerings, which enhance the ability to manage portfolios
Market volatility, growing cost pressures, and complexity
and risk, effectively serve clients and operate efficiently.
in optimizing whole portfolios underscore the need for
Market volatility, growing cost pressures, and complexity
enterprise operating and risk management technology,
in optimizing whole portfolios underscore the need for
and should continue to drive demand for holistic and
enterprise operating and risk management technology,
flexible technology solutions. BlackRock continues to
and should continue to drive demand for holistic and
evolve and enable clients to further simplify their
flexible technology solutions. BlackRock continues to
operating infrastructure with Aladdin. Clients increasingly
evolve and enable clients to further simplify their
want to tailor how they use Aladdin to meet their specific
operating infrastructure with Aladdin. Clients increasingly
needs, and BlackRock is providing them with choice and
want to tailor how they use Aladdin to meet their specific
flexibility. Through the integration of Aladdin and eFront,
needs, and BlackRock is providing them with choice and
clients are able to better manage and analyze risk across
flexibility. Through the integration of Aladdin and eFront,
their whole portfolio spanning public and private markets.
clients are able to better manage and analyze risk across
BlackRock is empowering clients with data and opening
their whole portfolio spanning public and private markets.
Aladdin by creating connectivity with ecosystem providers
BlackRock is empowering clients with data and opening
and third-party technology solutions, which include asset
Aladdin by creating connectivity with ecosystem providers
servicers, cloud providers, digital asset platforms, trading
and third-party technology solutions, which include asset
systems and others. This connectivity helps clients work in
servicers, cloud providers, digital asset platforms, trading
their Aladdin environments with a more customized and
systems and others. This connectivity helps clients work in
seamless end-to-end experience. Investments in Aladdin
their Aladdin environments with a more customized and
AI copilots, enhancements in openness supporting
seamless end-to-end experience. Investments in Aladdin
ecosystem partnerships, and advancing whole portfolio
AI copilots, enhancements in openness supporting
solutions including private markets and digital assets are
ecosystem partnerships, and advancing whole portfolio
expected to further augment the value of using Aladdin.
solutions including private markets and digital assets are
expected to further augment the value of using Aladdin.
As the asset management landscape shifts globally from
individual product selection to a whole-portfolio approach,
As the asset management landscape shifts globally from
BlackRock’s strategy is focused on creating outcome-
individual product selection to a whole-portfolio approach,
oriented client solutions for both retail investors and
BlackRock’s strategy is focused on creating outcome-
institutions. This includes having a diverse platform of
oriented client solutions for both retail investors and
alpha-seeking active, index and alternative products, as
institutions. This includes having a diverse platform of
well as enhanced distribution and portfolio construction
alpha-seeking active, index and alternative products, as
technology offerings. Digital wealth tools are an important
well as enhanced distribution and portfolio construction
component of BlackRock’s retail strategy, as BlackRock
technology offerings. Digital wealth tools are an important
scales and customizes model portfolios, extends Aladdin
component of BlackRock’s retail strategy, as BlackRock
Wealth and digital wealth partnerships globally, and helps
scales and customizes model portfolios, extends Aladdin
advisors build better portfolios through portfolio
Wealth and digital wealth partnerships globally, and helps
construction and risk management, powered by Aladdin.
advisors build better portfolios through portfolio
BlackRock has seen strong momentum in outsourcing
construction and risk management, powered by Aladdin.
solutions among institutional clients, including the
BlackRock has seen strong momentum in outsourcing
funding of several significant mandates in 2023, and
solutions among institutional clients, including the
anticipates continued outsourcing opportunities in the
funding of several significant mandates in 2023, and
future.
anticipates continued outsourcing opportunities in the
future.
Across BlackRock, many clients are focusing on the
impact of sustainability factors on their portfolios. This
Across BlackRock, many clients are focusing on the
shift has been driven by an increased understanding of
impact of sustainability factors on their portfolios. This
how sustainability-related factors can affect economic
shift has been driven by an increased understanding of
growth, asset values, and financial markets as a whole. As
how sustainability-related factors can affect economic
a fiduciary, BlackRock is committed to providing clients
growth, asset values, and financial markets as a whole. As
with choice and then executing in accordance with their
a fiduciary, BlackRock is committed to providing clients
chosen objectives – for some clients, this includes
with choice and then executing in accordance with their
investing in sustainable strategies. The Company aims to
chosen objectives – for some clients, this includes
deliver the best risk-adjusted returns within the mandates
investing in sustainable strategies. The Company aims to
clients choose, underpinned by research, data, and
deliver the best risk-adjusted returns within the mandates
analytics.
clients choose, underpinned by research, data, and
analytics.
BlackRock believes its strategy aligns with expected future
client demand and structural growth opportunities in
BlackRock believes its strategy aligns with expected future
areas including private markets, such as infrastructure
client demand and structural growth opportunities in
and private credit; integrated whole portfolio and
areas including private markets, such as infrastructure
outsourced solutions; ETFs; Aladdin technology; and fixed
and private credit; integrated whole portfolio and
income, as allocations to the asset class have become
outsourced solutions; ETFs; Aladdin technology; and fixed
more attractive in a higher rate environment.
income, as allocations to the asset class have become
more attractive in a higher rate environment.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
43
43
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
(in millions, except per share data)
(in millions, except per share data)
GAAP basis(1):
GAAP basis(1):
Total revenue
Total revenue
Total expense
Total expense
Operating income
Operating income
Operating margin
Operating margin
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests
Income tax expense
Income tax expense
Net income attributable to BlackRock
Net income attributable to BlackRock
Diluted earnings per common share
Diluted earnings per common share
Effective tax rate
Effective tax rate
As adjusted(2):
As adjusted(2):
Operating income
Operating income
Operating margin
Operating margin
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests
Net income attributable to BlackRock
Net income attributable to BlackRock
Diluted earnings per common share
Diluted earnings per common share
Effective tax rate
Effective tax rate
Other:
Other:
Assets under management (end of period)
Assets under management (end of period)
Diluted weighted-average common shares outstanding
Diluted weighted-average common shares outstanding
Shares outstanding (end of period)
Shares outstanding (end of period)
Book value per share(3)
Book value per share(3)
Cash dividends declared and paid per share
Cash dividends declared and paid per share
(1)
Accounting principles generally accepted in the United States (“GAAP”).
2023
2023
2022
2022
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
17,859
17,859
11,584
11,584
6,275
6,275
35.1%
35.1%
706
706
1,479
1,479
5,502
5,502
36.51
36.51
21.2%
21.2%
6,593
6,593
41.7%
41.7%
648
648
5,692
5,692
37.77
37.77
21.4%
21.4%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
17,873
17,873
11,488
11,488
6,385
6,385
35.7%
35.7%
89
89
1,296
1,296
5,178
5,178
33.97
33.97
20.0%
20.0%
6,711
6,711
42.8%
42.8%
89
89
5,391
5,391
35.36
35.36
20.7%
20.7%
$10,008,995
$10,008,995
150.7
150.7
148.5
148.5
264.96
264.96
20.00
20.00
$
$
$
$
$8,594,485
$8,594,485
152.4
152.4
149.8
149.8
252.04
252.04
19.52
19.52
$
$
$
$
(1)
(2)
(2)
(3)
(3)
Accounting principles generally accepted in the United States (“GAAP”).
As adjusted items are described in more detail in Non-GAAPFinancialMeasures. Beginning in the first quarter of 2023, BlackRock updated the definitions of its non-GAAP financial measures to
exclude the impact of market valuation changes on certain deferred cash compensation plans which the Company began economically hedging in 2023.
As adjusted items are described in more detail in Non-GAAPFinancialMeasures. Beginning in the first quarter of 2023, BlackRock updated the definitions of its non-GAAP financial measures to
exclude the impact of market valuation changes on certain deferred cash compensation plans which the Company began economically hedging in 2023.
Total BlackRock stockholders’ equity, divided by total shares outstanding at December 31 of the respective year-end.
Total BlackRock stockholders’ equity, divided by total shares outstanding at December 31 of the respective year-end.
20 23 COMPARED WITH 2022
20 23 COMPARED WITH 2022
GAAP. Operating income of $6.3 billion decreased
$110 million and operating margin of 35.1% decreased
GAAP. Operating income of $6.3 billion decreased
60 bps from 2022. Decreases in operating income and
$110 million and operating margin of 35.1% decreased
operating margin were primarily driven by the negative
60 bps from 2022. Decreases in operating income and
impact of markets on average AUM, and higher expense
operating margin were primarily driven by the negative
including direct fund expense, compensation and benefits
impact of markets on average AUM, and higher expense
expense and general and administrative expense, partially
including direct fund expense, compensation and benefits
offset by higher technology services revenue. Operating
expense and general and administrative expense, partially
income for 2023 also included a restructuring charge of
offset by higher technology services revenue. Operating
$61 million in connection with initiatives to reorganize
income for 2023 also included a restructuring charge of
specific platforms, primarily Aladdin and illiquid
$61 million in connection with initiatives to reorganize
alternative investments, to stay ahead of client needs.
specific platforms, primarily Aladdin and illiquid
Operating income for 2022 included a restructuring
alternative investments, to stay ahead of client needs.
charge of $91 million from an initiative to modify the size
Operating income for 2022 included a restructuring
and shape of the global workforce to align more closely
charge of $91 million from an initiative to modify the size
with strategic priorities.
and shape of the global workforce to align more closely
with strategic priorities.
Nonoperating income (expense) less net income (loss)
attributable to noncontrolling interests (“NCI”) increased
Nonoperating income (expense) less net income (loss)
$617 million from 2022, driven primarily by higher interest
attributable to noncontrolling interests (“NCI”) increased
and dividend income, higher mark-to-market revaluation
$617 million from 2022, driven primarily by higher interest
of the Company’s seed capital portfolio, net of impact of
and dividend income, higher mark-to-market revaluation
certain hedges, and higher gains on private equity
of the Company’s seed capital portfolio, net of impact of
co-investment portfolios, partially offset by the impact of
certain hedges, and higher gains on private equity
$267 million of noncash gains related to BlackRock’s
co-investment portfolios, partially offset by the impact of
strategic minority investment in iCapital Network, Inc.
$267 million of noncash gains related to BlackRock’s
(“iCapital”) in 2022.
strategic minority investment in iCapital Network, Inc.
(“iCapital”) in 2022.
Income tax expense for 2023 included $242 million
discrete tax net benefits related to the resolution of certain
Income tax expense for 2023 included $242 million
discrete tax net benefits related to the resolution of certain
outstanding tax matters and stock-based compensation
awards that vested in 2023. Income tax expense for 2022
outstanding tax matters and stock-based compensation
reflected $235 million of net discrete tax benefits primarily
awards that vested in 2023. Income tax expense for 2022
related to stock-based compensation awards that vested
reflected $235 million of net discrete tax benefits primarily
in 2022 and the resolution of certain outstanding tax
related to stock-based compensation awards that vested
matters, and $35 million of net noncash tax benefits
in 2022 and the resolution of certain outstanding tax
related to the revaluation of certain deferred income tax
matters, and $35 million of net noncash tax benefits
liabilities.
related to the revaluation of certain deferred income tax
liabilities.
Earnings per diluted common share increased $2.54, or
7%, from 2022, primarily reflecting significantly higher
Earnings per diluted common share increased $2.54, or
nonoperating income, partially offset by lower operating
7%, from 2022, primarily reflecting significantly higher
income and a higher effective tax rate in the current year.
nonoperating income, partially offset by lower operating
income and a higher effective tax rate in the current year.
As Adjusted. Operating income of $6.6 billion decreased
$118 million and operating margin of 41.7% decreased
As Adjusted. Operating income of $6.6 billion decreased
110 bps from 2022. The pre-tax restructuring charge of
$118 million and operating margin of 41.7% decreased
$61 million and $91 million described above has been
110 bps from 2022. The pre-tax restructuring charge of
excluded from as adjusted results for 2023 and 2022,
$61 million and $91 million described above has been
respectively.
excluded from as adjusted results for 2023 and 2022,
respectively.
Earnings per diluted common share increased $2.41, or
7%, from 2022, reflecting significantly higher
Earnings per diluted common share increased $2.41, or
nonoperating income, partially offset by lower operating
7%, from 2022, reflecting significantly higher
income and a higher effective tax rate. Income tax expense
nonoperating income, partially offset by lower operating
for 2022 excluded $35 million net noncash net benefit
income and a higher effective tax rate. Income tax expense
described above.
for 2022 excluded $35 million net noncash net benefit
described above.
Beginning in the first quarter of 2023, BlackRock updated
its definitions of operating income, as adjusted, operating
Beginning in the first quarter of 2023, BlackRock updated
margin, as adjusted, nonoperating income (expense), as
its definitions of operating income, as adjusted, operating
adjusted, and net income attributable to BlackRock, Inc.,
margin, as adjusted, nonoperating income (expense), as
as adjusted, to exclude the compensation expense related
adjusted, and net income attributable to BlackRock, Inc.,
as adjusted, to exclude the compensation expense related
44 BlackRock | 2023 Form 10-K
44 BlackRock | 2023 Form 10-K
to the market valuation changes on certain deferred cash
compensation plans, and the related nonoperating gain
to the market valuation changes on certain deferred cash
(loss) impact of an economic hedge of these deferred cash
compensation plans, and the related nonoperating gain
compensation plans. See Non-GAAP Financial Measures
(loss) impact of an economic hedge of these deferred cash
for further information on as adjusted items and the
compensation plans. See Non-GAAP Financial Measures
reconciliation to GAAP.
for further information on as adjusted items and the
reconciliation to GAAP.
For further discussion of BlackRock’s revenue, expense,
nonoperating results and income tax expense, see
For further discussion of BlackRock’s revenue, expense,
Discussion of Financial Results herein.
nonoperating results and income tax expense, see
Discussion of Financial Results herein.
NON-GAAP FINANCIAL MEASURES
NON-GAAP FINANCIAL MEASURES
BlackRock reports its financial results in accordance with
GAAP; however, management believes evaluating the
BlackRock reports its financial results in accordance with
Company’s ongoing operating results may be enhanced if
GAAP; however, management believes evaluating the
investors have additional non-GAAP financial measures.
Company’s ongoing operating results may be enhanced if
Adjustments to GAAP financial measures (“non-GAAP
investors have additional non-GAAP financial measures.
adjustments”) include certain items management deems
Adjustments to GAAP financial measures (“non-GAAP
adjustments”) include certain items management deems
nonrecurring or that occur infrequently, transactions that
ultimately will not impact BlackRock’s book value or
nonrecurring or that occur infrequently, transactions that
certain tax items that do not impact cash flow.
ultimately will not impact BlackRock’s book value or
Management reviews non-GAAP financial measures, in
certain tax items that do not impact cash flow.
addition to GAAP financial measures, to assess ongoing
Management reviews non-GAAP financial measures, in
operations and considers them to be helpful, for both
addition to GAAP financial measures, to assess ongoing
management and investors, in evaluating BlackRock’s
operations and considers them to be helpful, for both
financial performance over time. Management also uses
management and investors, in evaluating BlackRock’s
non-GAAP financial measures as a benchmark to compare
financial performance over time. Management also uses
its performance with other companies and to enhance
non-GAAP financial measures as a benchmark to compare
comparability for the reporting periods presented.
its performance with other companies and to enhance
Non-GAAP financial measures may pose limitations
comparability for the reporting periods presented.
because they do not include all of BlackRock’s revenue
Non-GAAP financial measures may pose limitations
and expense. BlackRock’s management does not advocate
because they do not include all of BlackRock’s revenue
that investors consider such non-GAAP financial
and expense. BlackRock’s management does not advocate
measures in isolation from, or as a substitute for, financial
that investors consider such non-GAAP financial
information prepared in accordance with GAAP.
measures in isolation from, or as a substitute for, financial
Non-GAAP financial measures may not be comparable to
information prepared in accordance with GAAP.
other similarly titled measures of other companies.
Non-GAAP financial measures may not be comparable to
other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the consolidated statements of income as follows:
Computations and reconciliations for all periods are derived from the consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted:
(1) Operating income, as adjusted, and operating margin, as adjusted:
(in millions)
(in millions)
Operating income, GAAP basis
Operating income, GAAP basis
Non-GAAP expense adjustments:
Non-GAAP expense adjustments:
compensation plans (a)
compensation plans (a)
Compensation expense related to appreciation (depreciation) on deferred cash
Compensation expense related to appreciation (depreciation) on deferred cash
Amortization of intangible assets (b)
Amortization of intangible assets (b)
Acquisition-related compensation costs (b)
Acquisition-related compensation costs (b)
Acquisition-related transaction costs (b)(1)
Acquisition-related transaction costs (b)(1)
Contingent consideration fair value adjustments (b)
Contingent consideration fair value adjustments (b)
Lease costs—New York (c)
Lease costs—New York (c)
Restructuring charge (d)
Restructuring charge (d)
Reduction of indemnification asset (e)(1)
Reduction of indemnification asset (e)(1)
Operating income, as adjusted
Operating income, as adjusted
Product launch costs and commissions
Product launch costs and commissions
Operating income used for operating margin measurement
Operating income used for operating margin measurement
Revenue, GAAP basis
Revenue, GAAP basis
Non-GAAP adjustments:
Non-GAAP adjustments:
Distribution fees
Distribution fees
Investment advisory fees
Investment advisory fees
Revenue used for operating margin measurement
Revenue used for operating margin measurement
Operating margin, GAAP basis
Operating margin, GAAP basis
Operating margin, as adjusted
Operating margin, as adjusted
(1)
Amount included within general and administration expense.
(1)
Amount included within general and administration expense.
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted:
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted:
(in millions)
(in millions)
Nonoperating income (expense), GAAP basis
Nonoperating income (expense), GAAP basis
Less: Net income (loss) attributable to NCI
Less: Net income (loss) attributable to NCI
Nonoperating income (expense), net of NCI
Nonoperating income (expense), net of NCI
Less: Hedge gain (loss) on deferred cash compensation plans (a)
Less: Hedge gain (loss) on deferred cash compensation plans (a)
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted
2023
2023
$ 6,275
$ 6,275
57
57
151
151
17
17
7
7
3
3
14
14
61
61
8
8
6,593
6,593
—
—
$ 6,593
$ 6,593
$ 17,859
$ 17,859
2022
2022
$ 6,385
$ 6,385
—
—
151
151
24
24
—
—
3
3
57
57
91
91
—
—
6,711
6,711
6
6
$ 6,717
$ 6,717
$ 17,873
$ 17,873
(1,262)
(1,262)
(789)
(789)
$ 15,808
$ 15,808
35.1%
35.1%
41.7%
41.7%
(1,381)
(1,381)
(798)
(798)
$ 15,694
$ 15,694
35.7%
35.7%
42.8%
42.8%
2023
2023
$ 880
$ 880
174
174
706
706
58
58
$ 648
$ 648
2022
2022
$ (95)
$ (95)
(184)
(184)
89
89
—
—
$ 89
$ 89
(3) Net income attributable to BlackRock, Inc., as adjusted:
(3) Net income attributable to BlackRock, Inc., as adjusted:
(in millions, except per share data)
(in millions, except per share data)
Net income attributable to BlackRock, Inc., GAAP basis
Net income attributable to BlackRock, Inc., GAAP basis
Non-GAAP adjustments(1):
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)
Net impact of hedged deferred cash compensation plans (a)
Amortization of intangible assets (b)
Amortization of intangible assets (b)
Acquisition-related compensation costs (b)
Acquisition-related compensation costs (b)
Acquisition-related transaction costs (b)
Acquisition-related transaction costs (b)
Contingent consideration fair value adjustments (b)
Contingent consideration fair value adjustments (b)
Lease costs—New York (c)
Lease costs—New York (c)
Restructuring charge (d)
Restructuring charge (d)
Income tax matters
Income tax matters
Net income attributable to BlackRock, Inc., as adjusted
Net income attributable to BlackRock, Inc., as adjusted
Diluted weighted-average common shares outstanding
Diluted weighted-average common shares outstanding
Diluted earnings per common share, GAAP basis
Diluted earnings per common share, GAAP basis
Diluted earnings per common share, as adjusted
Diluted earnings per common share, as adjusted
(1) Non-GAAP adjustments, excluding income tax matters, are net of tax.
(1) Non-GAAP adjustments, excluding income tax matters, are net of tax.
(1) Operating income, as adjusted, and operating
margin, as adjusted: Management believes operating
(1) Operating income, as adjusted, and operating
income, as adjusted, and operating margin, as adjusted,
margin, as adjusted: Management believes operating
are effective indicators of BlackRock’s financial
income, as adjusted, and operating margin, as adjusted,
performance over time, and, therefore, provide useful
are effective indicators of BlackRock’s financial
disclosure to investors. Management believes that
performance over time, and, therefore, provide useful
operating margin, as adjusted, reflects the Company’s
disclosure to investors. Management believes that
long-term ability to manage ongoing costs in relation to
operating margin, as adjusted, reflects the Company’s
its revenues. The Company uses operating margin, as
long-term ability to manage ongoing costs in relation to
adjusted, to assess the Company’s financial performance,
its revenues. The Company uses operating margin, as
to determine the long-term and annual compensation of
adjusted, to assess the Company’s financial performance,
the Company’s senior-level employees and to evaluate the
to determine the long-term and annual compensation of
Company’s relative performance against industry peers.
the Company’s senior-level employees and to evaluate the
Furthermore, this metric eliminates margin variability
Company’s relative performance against industry peers.
arising from the accounting of revenues and expenses
Furthermore, this metric eliminates margin variability
related to distributing different product structures in
arising from the accounting of revenues and expenses
multiple distribution channels utilized by asset managers.
related to distributing different product structures in
multiple distribution channels utilized by asset managers.
• Operating income, as adjusted, includes the following
• Operating income, as adjusted, includes the following
non-GAAP expense adjustments:
non-GAAP expense adjustments:
(a) Compensation expense related to appreciation
(depreciation) on deferred cash compensation
(a) Compensation expense related to appreciation
plans. Beginning in the first quarter of 2023, the
(depreciation) on deferred cash compensation
Company updated its definition of operating
plans. Beginning in the first quarter of 2023, the
income, as adjusted, to exclude compensation
Company updated its definition of operating
expense related to the market valuation changes
income, as adjusted, to exclude compensation
on certain deferred cash compensation plans,
expense related to the market valuation changes
which the Company began hedging economically
on certain deferred cash compensation plans,
in 2023. For these deferred cash compensation
which the Company began hedging economically
plans, the final value of the deferred amount to be
in 2023. For these deferred cash compensation
distributed to employees in cash upon vesting is
plans, the final value of the deferred amount to be
determined based on the returns on specified
distributed to employees in cash upon vesting is
investment funds. The Company recognizes
determined based on the returns on specified
compensation expense for the appreciation
investment funds. The Company recognizes
(depreciation) of the deferred cash compensation
compensation expense for the appreciation
liability in proportion to the vested amount of the
(depreciation) of the deferred cash compensation
award during a respective period, while the gain
liability in proportion to the vested amount of the
(loss) to economically hedge these plans is
award during a respective period, while the gain
immediately recognized in nonoperating income
(loss) to economically hedge these plans is
(expense), which creates a timing difference
immediately recognized in nonoperating income
impacting net income. This timing difference will
(expense), which creates a timing difference
reverse and offset to zero over the life of the
impacting net income. This timing difference will
award at the end of the multi-year vesting period.
reverse and offset to zero over the life of the
Management believes excluding market valuation
award at the end of the multi-year vesting period.
changes related to the deferred cash
Management believes excluding market valuation
compensation plans in the calculation of
changes related to the deferred cash
operating income, as adjusted, provides useful
compensation plans in the calculation of
operating income, as adjusted, provides useful
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
45
45
2023
2023
$5,502
$5,502
(1)
(1)
114
114
12
12
5
5
3
3
11
11
46
46
—
—
$5,692
$5,692
150.7
150.7
$36.51
$36.51
$37.77
$37.77
2022
2022
$5,178
$5,178
—
—
114
114
19
19
—
—
3
3
43
43
69
69
(35)
(35)
$5,391
$5,391
152.4
152.4
$33.97
$33.97
$35.36
$35.36
disclosure to both management and investors of
the Company’s financial performance over time
disclosure to both management and investors of
as these amounts are economically hedged, while
the Company’s financial performance over time
also increasing comparability with other
as these amounts are economically hedged, while
companies.
also increasing comparability with other
companies.
(b) Acquisition related costs. Acquisition related costs
include adjustments related to amortization of
(b) Acquisition related costs. Acquisition related costs
intangible assets, other acquisition-related costs,
include adjustments related to amortization of
including compensation costs for nonrecurring
intangible assets, other acquisition-related costs,
retention-related deferred compensation, and
including compensation costs for nonrecurring
contingent consideration fair value adjustments
retention-related deferred compensation, and
incurred in connection with certain acquisitions.
contingent consideration fair value adjustments
Management believes excluding the impact of
incurred in connection with certain acquisitions.
these expenses when calculating operating
Management believes excluding the impact of
income, as adjusted, provides a helpful indication
these expenses when calculating operating
of the Company’s financial performance over
income, as adjusted, provides a helpful indication
time, thereby providing helpful information for
of the Company’s financial performance over
both management and investors while also
time, thereby providing helpful information for
increasing comparability with other companies.
both management and investors while also
increasing comparability with other companies.
(c) Lease costs – New York. In 2022 and 2023, the
Company continued to recognize lease expense
(c) Lease costs – New York. In 2022 and 2023, the
within general and administration expense for
Company continued to recognize lease expense
both its current headquarters located at 50
within general and administration expense for
Hudson Yards in New York and prior
both its current headquarters located at 50
headquarters until the Company’s lease on its
Hudson Yards in New York and prior
prior headquarters expired in April 2023. The
headquarters until the Company’s lease on its
Company began lease payments related to its
prior headquarters expired in April 2023. The
current headquarters in May 2023, but began
Company began lease payments related to its
recording lease expense in August 2021 when it
current headquarters in May 2023, but began
obtained access to the building to begin its tenant
recording lease expense in August 2021 when it
improvements. Prior to the Company’s move to its
obtained access to the building to begin its tenant
current headquarters in February 2023, the
improvements. Prior to the Company’s move to its
impact of lease costs related to 50 Hudson Yards
current headquarters in February 2023, the
was excluded from operating income, as adjusted.
impact of lease costs related to 50 Hudson Yards
In February 2023, the Company completed the
was excluded from operating income, as adjusted.
majority of its move to 50 Hudson Yards and no
In February 2023, the Company completed the
longer excluded the impact of these lease costs.
majority of its move to 50 Hudson Yards and no
Subsequently, from February 2023 through April
longer excluded the impact of these lease costs.
2023, the Company excluded the impact of lease
Subsequently, from February 2023 through April
costs related to the Company’s prior
2023, the Company excluded the impact of lease
headquarters. Management believes excluding
costs related to the Company’s prior
the impact of these respective New York lease
headquarters. Management believes excluding
costs (“Lease costs – New York”) when calculating
the impact of these respective New York lease
operating income, as adjusted, is useful to assess
costs (“Lease costs – New York”) when calculating
the Company’s financial performance and
operating income, as adjusted, is useful to assess
ongoing operations, and enhances comparability
the Company’s financial performance and
among periods presented.
ongoing operations, and enhances comparability
among periods presented.
46 BlackRock | 2023 Form 10-K
46 BlackRock | 2023 Form 10-K
(d) Restructuring charge. In 2023, the Company
recorded a restructuring charge, comprised of
(d) Restructuring charge. In 2023, the Company
severance and compensation expense for
recorded a restructuring charge, comprised of
accelerated vesting of previously granted deferred
severance and compensation expense for
compensation awards, in connection with
accelerated vesting of previously granted deferred
initiatives to reorganize specific platforms,
compensation awards, in connection with
primarily Aladdin and alternative investments. In
initiatives to reorganize specific platforms,
2022, the Company recorded a restructuring
primarily Aladdin and alternative investments. In
charge primarily comprised of severance and
2022, the Company recorded a restructuring
accelerated amortization expense of previously
charge primarily comprised of severance and
granted deferred compensation awards in
accelerated amortization expense of previously
connection with an initiative to modify the size
granted deferred compensation awards in
and shape of the global workforce to align more
connection with an initiative to modify the size
closely with strategic priorities. Management
and shape of the global workforce to align more
believes excluding the impact of these
closely with strategic priorities. Management
restructuring charges when calculating operating
believes excluding the impact of these
income, as adjusted, is useful to assess the
restructuring charges when calculating operating
Company’s financial performance and ongoing
income, as adjusted, is useful to assess the
operations, and enhances comparability among
Company’s financial performance and ongoing
periods presented.
operations, and enhances comparability among
periods presented.
(e) Reduction of indemnification asset. In 2023,
(e) Reduction of indemnification asset. In 2023,
BlackRock recorded $8 million of general and
administration expense to reflect the reduction of
BlackRock recorded $8 million of general and
the indemnification asset and an offsetting
administration expense to reflect the reduction of
$8 million tax benefit due to the resolution of
the indemnification asset and an offsetting
certain tax matters. The $8 million general and
$8 million tax benefit due to the resolution of
administrative expense and $8 million tax benefit
certain tax matters. The $8 million general and
have been excluded from as adjusted results as
administrative expense and $8 million tax benefit
there is no impact on BlackRock’s book value.
have been excluded from as adjusted results as
there is no impact on BlackRock’s book value.
• Operating income used for measuring operating
margin, as adjusted, is equal to operating income, as
• Operating income used for measuring operating
adjusted, excluding the impact of product launch
margin, as adjusted, is equal to operating income, as
costs (e.g. closed-end fund launch costs) and related
adjusted, excluding the impact of product launch
commissions. Management believes the exclusion of
costs (e.g. closed-end fund launch costs) and related
such costs and related commissions is useful
commissions. Management believes the exclusion of
because these costs can fluctuate considerably, and
such costs and related commissions is useful
revenue associated with the expenditure of these
because these costs can fluctuate considerably, and
costs will not fully impact BlackRock’s results until
revenue associated with the expenditure of these
future periods.
costs will not fully impact BlackRock’s results until
future periods.
• Revenue used for calculating operating margin, as
adjusted, is reduced to exclude all of the Company’s
• Revenue used for calculating operating margin, as
distribution fees, which are recorded as a separate
adjusted, is reduced to exclude all of the Company’s
line item on the consolidated statements of income,
distribution fees, which are recorded as a separate
as well as a portion of investment advisory fees
line item on the consolidated statements of income,
received that is used to pay distribution and servicing
as well as a portion of investment advisory fees
costs. For certain products, based on distinct
received that is used to pay distribution and servicing
arrangements, distribution fees are collected by the
costs. For certain products, based on distinct
Company and then passed-through to third-party
arrangements, distribution fees are collected by the
client intermediaries. For other products, investment
Company and then passed-through to third-party
advisory fees are collected by the Company and a
client intermediaries. For other products, investment
portion is passed-through to third-party client
advisory fees are collected by the Company and a
intermediaries. However, in both structures, the third-
portion is passed-through to third-party client
party client intermediary similarly owns the
intermediaries. However, in both structures, the third-
relationship with the retail client and is responsible
party client intermediary similarly owns the
for distributing the product and servicing the client.
relationship with the retail client and is responsible
The amount of distribution and investment advisory
for distributing the product and servicing the client.
fees fluctuates each period primarily based on a
The amount of distribution and investment advisory
predetermined percentage of the value of AUM during
fees fluctuates each period primarily based on a
the period. These fees also vary based on the type of
predetermined percentage of the value of AUM during
investment product sold and the geographic location
the period. These fees also vary based on the type of
where it is sold. In addition, the Company may waive
investment product sold and the geographic location
fees on certain products that could result in the
where it is sold. In addition, the Company may waive
reduction of payments to the third-party
fees on certain products that could result in the
intermediaries.
reduction of payments to the third-party
intermediaries.
(2) Nonoperating income (expense), less net income
(loss) attributable to NCI, as adjusted: Management
(2) Nonoperating income (expense), less net income
(loss) attributable to NCI, as adjusted: Management
ASSETS UNDER MANAGEMENT
ASSETS UNDER MANAGEMENT
AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for
each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.
AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for
each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.
AUM and Net Inflows (Outflows) by Client Type and Product Type
AUM and Net Inflows (Outflows) by Client Type and Product Type
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
47
47
(in millions)
(in millions)
Retail
Retail
ETFs
ETFs
Institutional:
Institutional:
Active
Active
Index
Index
Institutional subtotal
Institutional subtotal
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
AUM
AUM
2023
2023
929,697
929,697
3,499,299
3,499,299
$
$
1,912,673
1,912,673
2,902,489
2,902,489
4,815,162
4,815,162
9,244,158
9,244,158
764,837
764,837
—
—
$10,008,995
$10,008,995
2022
2022
$ 843,475
$ 843,475
2,909,610
2,909,610
1,641,591
1,641,591
2,528,615
2,528,615
4,170,206
4,170,206
7,923,291
7,923,291
671,194
671,194
—
—
$8,594,485
$8,594,485
Net inflows (outflows)
Net inflows (outflows)
2022
2023
2022
2023
$ (19,523)
$ (8,473)
$ (19,523)
$ (8,473)
220,335
185,942
220,335
185,942
87,106
87,106
(55,125)
(55,125)
31,981
31,981
209,450
209,450
79,245
79,245
—
—
$288,695
$288,695
168,826
168,826
23,612
23,612
192,438
192,438
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
$306,570
$306,570
AUM and Net Inflows (Outflows) by Investment Style and Product Type
AUM and Net Inflows (Outflows) by Investment Style and Product Type
(in millions)
(in millions)
Active
Active
Index and ETFs
Index and ETFs
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
AUM and Net Inflows (Outflows) by Product Type
AUM and Net Inflows (Outflows) by Product Type
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and commodities(1)
Currency and commodities(1)
Alternatives subtotal
Alternatives subtotal
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
(1)
Amounts include commodity ETFs.
(1)
Amounts include commodity ETFs.
AUM
AUM
2023
2023
$ 2,621,178
$ 2,621,178
6,622,980
6,622,980
9,244,158
9,244,158
764,837
764,837
—
—
$10,008,995
$10,008,995
2022
2022
$2,317,560
$2,317,560
5,605,731
5,605,731
7,923,291
7,923,291
671,194
671,194
—
—
$8,594,485
$8,594,485
Net inflows (outflows)
Net inflows (outflows)
2022
2023
2022
2023
$135,128
$ 59,221
$135,128
$ 59,221
258,122
150,229
258,122
150,229
393,250
209,450
393,250
209,450
(77,374)
79,245
(77,374)
79,245
(9,306)
—
(9,306)
—
$306,570
$288,695
$306,570
$288,695
AUM
AUM
2023
2023
$ 5,293,344
$ 5,293,344
2,804,026
2,804,026
870,804
870,804
136,909
136,909
74,233
74,233
64,842
64,842
275,984
275,984
9,244,158
9,244,158
764,837
764,837
—
—
$10,008,995
$10,008,995
2022
2022
$4,435,354
$4,435,354
2,536,823
2,536,823
684,904
684,904
117,751
117,751
80,654
80,654
67,805
67,805
266,210
266,210
7,923,291
7,923,291
671,194
671,194
—
—
$8,594,485
$8,594,485
Net inflows (outflows)
Net inflows (outflows)
2022
2023
2022
2023
$105,103
$ (11,490)
$105,103
$ (11,490)
249,780
143,087
249,780
143,087
31,222
82,787
31,222
82,787
13,665
13,665
(11,370)
(11,370)
(7,229)
(7,229)
(4,934)
(4,934)
209,450
209,450
79,245
79,245
—
—
$288,695
$288,695
16,052
16,052
(1,690)
(1,690)
(7,217)
(7,217)
7,145
7,145
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
$306,570
$306,570
believes nonoperating income (expense), less net income
(loss) attributable to NCI, as adjusted, is an effective
believes nonoperating income (expense), less net income
measure for reviewing BlackRock’s nonoperating
(loss) attributable to NCI, as adjusted, is an effective
contribution to its results and provides comparability of
measure for reviewing BlackRock’s nonoperating
this information among reporting periods. Nonoperating
contribution to its results and provides comparability of
income (expense), less net income (loss) attributable to
this information among reporting periods. Nonoperating
NCI, as adjusted, excludes the gain (loss) on the economic
income (expense), less net income (loss) attributable to
hedge of certain deferred cash compensation plans. As
NCI, as adjusted, excludes the gain (loss) on the economic
the gain (loss) on investments and derivatives used to
hedge of certain deferred cash compensation plans. As
hedge these compensation plans over time substantially
the gain (loss) on investments and derivatives used to
offsets the compensation expense related to the market
hedge these compensation plans over time substantially
valuation changes on these deferred cash compensation
offsets the compensation expense related to the market
plans, which is included in operating income, GAAP basis,
valuation changes on these deferred cash compensation
management believes excluding the gain (loss) on the
plans, which is included in operating income, GAAP basis,
economic hedge of the deferred cash compensation plans
management believes excluding the gain (loss) on the
when calculating nonoperating income (expense), less net
economic hedge of the deferred cash compensation plans
income (loss) attributable to NCI, as adjusted, provides a
when calculating nonoperating income (expense), less net
useful measure for both management and investors of
income (loss) attributable to NCI, as adjusted, provides a
BlackRock’s nonoperating results that impact book value.
useful measure for both management and investors of
BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as
adjusted: Management believes net income attributable
(3) Net income attributable to BlackRock, Inc., as
to BlackRock, Inc., as adjusted, and diluted earnings per
adjusted: Management believes net income attributable
common share, as adjusted, are useful measures of
to BlackRock, Inc., as adjusted, and diluted earnings per
BlackRock’s profitability and financial performance. Net
common share, as adjusted, are useful measures of
income attributable to BlackRock, Inc., as adjusted, equals
BlackRock’s profitability and financial performance. Net
net income attributable to BlackRock, Inc., GAAP basis,
income attributable to BlackRock, Inc., as adjusted, equals
adjusted for certain items management deems
net income attributable to BlackRock, Inc., GAAP basis,
nonrecurring or that occur infrequently, transactions that
adjusted for certain items management deems
ultimately will not impact BlackRock’s book value or
nonrecurring or that occur infrequently, transactions that
certain tax items that do not impact cash flow.
ultimately will not impact BlackRock’s book value or
certain tax items that do not impact cash flow.
See notes (1) and (2) above for further information on the
updated presentation of non-GAAP adjustments. For each
See notes (1) and (2) above for further information on the
period presented, the non-GAAP adjustments were tax
updated presentation of non-GAAP adjustments. For each
effected at the respective blended rates applicable to the
period presented, the non-GAAP adjustments were tax
adjustments. Amounts for income tax matters represent
effected at the respective blended rates applicable to the
net noncash (benefits) expenses primarily associated with
adjustments. Amounts for income tax matters represent
the revaluation of certain deferred tax liabilities related to
net noncash (benefits) expenses primarily associated with
intangible assets and goodwill as a result of tax rate
the revaluation of certain deferred tax liabilities related to
changes. These amounts have been excluded from the as
intangible assets and goodwill as a result of tax rate
adjusted results as these items will not have a cash flow
changes. These amounts have been excluded from the as
impact and to enhance comparability among periods
adjusted results as these items will not have a cash flow
presented.
impact and to enhance comparability among periods
presented.
Per share amounts reflect net income attributable to
BlackRock, Inc., as adjusted, divided by diluted weighted-
Per share amounts reflect net income attributable to
average common shares outstanding.
BlackRock, Inc., as adjusted, divided by diluted weighted-
average common shares outstanding.
(4) Annual Contract Value (“ACV”): Management believes
ACV is an effective metric for reviewing BlackRock’s
(4) Annual Contract Value (“ACV”): Management believes
technology services’ ongoing contribution to its operating
ACV is an effective metric for reviewing BlackRock’s
results and provides comparability of this information
technology services’ ongoing contribution to its operating
among reporting periods while also providing a useful
results and provides comparability of this information
supplemental metric for both management and investors
among reporting periods while also providing a useful
of BlackRock’s growth in technology services revenue over
supplemental metric for both management and investors
time, as it is linked to the net new business in technology
of BlackRock’s growth in technology services revenue over
services. ACV represents forward-looking, annualized
time, as it is linked to the net new business in technology
estimated value of the recurring subscription fees under
services. ACV represents forward-looking, annualized
client contracts, assuming all client contracts that come
estimated value of the recurring subscription fees under
up for renewal are renewed, unless we received a notice of
client contracts, assuming all client contracts that come
termination, even though such notice may not be effective
up for renewal are renewed, unless we received a notice of
until a later date. ACV also includes the annualized
termination, even though such notice may not be effective
estimated value of new sales, for existing and new clients,
until a later date. ACV also includes the annualized
when we execute client contracts, even though the
estimated value of new sales, for existing and new clients,
recurring fees may not be effective until a later date and
when we execute client contracts, even though the
excludes nonrecurring fees such as implementation and
recurring fees may not be effective until a later date and
consulting fees.
excludes nonrecurring fees such as implementation and
consulting fees.
48 BlackRock | 2023 Form 10-K
48 BlackRock | 2023 Form 10-K
The following table presents the component changes in BlackRock’s AUM for 2023 and 2022.
The following table presents the component changes in BlackRock’s AUM for 2023 and 2022.
(in millions)
(in millions)
Beginning AUM
Beginning AUM
Net inflows (outflows):
Net inflows (outflows):
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total net inflows (outflows)
Total net inflows (outflows)
Acquisition(1)
Acquisition(1)
Market change
Market change
FX impact(2)
FX impact(2)
Total change
Total change
Ending AUM
Ending AUM
(1)
Amounts include AUM attributable to the Kreos Transaction.
2023
2023
$ 8,594,485
$ 8,594,485
209,450
209,450
79,245
79,245
—
—
288,695
288,695
2,177
2,177
1,073,550
1,073,550
50,088
50,088
1,414,510
1,414,510
$10,008,995
$10,008,995
2022
2022
$10,010,143
$10,010,143
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
306,570
306,570
—
—
(1,501,987)
(1,501,987)
(220,241)
(220,241)
(1,415,658)
(1,415,658)
$ 8,594,485
$ 8,594,485
(1)
(2)
Amounts include AUM attributable to the Kreos Transaction.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(2)
BlackRock has historically grown AUM through organic growth and acquisitions. Management believes that the Company
will be able to continue to grow AUM organically by focusing on strong investment performance, efficient delivery of beta
BlackRock has historically grown AUM through organic growth and acquisitions. Management believes that the Company
for index products, client service, developing new products and optimizing distribution capabilities.
will be able to continue to grow AUM organically by focusing on strong investment performance, efficient delivery of beta
for index products, client service, developing new products and optimizing distribution capabilities.
Component Changes in AUM for 2023
Component Changes in AUM for 2023
The following table presents the component changes in AUM by client type and product type for 2023.
The following table presents the component changes in AUM by client type and product type for 2023.
Net
inflows
Net
(outflows)
inflows
(outflows)
December 31,
2022
December 31,
2022
Market change
Market change
Acquisition(1)
Acquisition(1)
FX impact(2)
FX impact(2)
(in millions)
(in millions)
Retail:
Retail:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Retail subtotal
Retail subtotal
ETFs:
ETFs:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
ETFs subtotal
ETFs subtotal
Institutional:
Institutional:
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index:
Index:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Index subtotal
Index subtotal
Institutional subtotal
Institutional subtotal
Long-term
Long-term
Cash management
Cash management
Total
Total
(1)
$ 370,612
$ 370,612
299,114
299,114
125,168
125,168
48,581
48,581
843,475
843,475
2,081,742
2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
2,909,610
2,909,610
168,734
168,734
774,955
774,955
544,469
544,469
153,433
153,433
1,641,591
1,641,591
1,814,266
1,814,266
704,661
704,661
6,392
6,392
3,296
3,296
2,528,615
2,528,615
4,170,206
4,170,206
7,923,291
7,923,291
671,194
671,194
$8,594,485
$8,594,485
$
$
2,810
2,810
(2,471)
(2,471)
(236)
(236)
(8,576)
(8,576)
(8,473)
(8,473)
81,223
81,223
111,956
111,956
(746)
(746)
(6,491)
(6,491)
185,942
185,942
(13,301)
(13,301)
4,714
4,714
85,665
85,665
10,028
10,028
87,106
87,106
(82,222)
(82,222)
28,888
28,888
(1,896)
(1,896)
105
105
(55,125)
(55,125)
31,981
31,981
209,450
209,450
79,245
79,245
$288,695
$288,695
$
$
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
—
—
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
$2,177
$2,177
$
$
58,248
58,248
11,821
11,821
14,022
14,022
1,286
1,286
85,377
85,377
362,885
362,885
24,544
24,544
949
949
4,626
4,626
393,004
393,004
29,088
29,088
53,538
53,538
79,644
79,644
4,925
4,925
167,195
167,195
401,047
401,047
17,774
17,774
559
559
(138)
(138)
419,242
419,242
586,437
586,437
1,064,818
1,064,818
8,732
8,732
$1,073,550
$1,073,550
$ 4,064
$ 4,064
4,335
4,335
583
583
336
336
9,318
9,318
6,781
6,781
3,810
3,810
62
62
90
90
10,743
10,743
2,167
2,167
3,616
3,616
7,404
7,404
1,417
1,417
14,604
14,604
5,200
5,200
4,678
4,678
(110)
(110)
(11)
(11)
9,757
9,757
24,361
24,361
44,422
44,422
5,666
5,666
$50,088
$50,088
December 31,
2023
December 31,
2023
$
$
435,734
435,734
312,799
312,799
139,537
139,537
41,627
41,627
929,697
929,697
2,532,631
2,532,631
898,403
898,403
9,140
9,140
59,125
59,125
3,499,299
3,499,299
186,688
186,688
836,823
836,823
717,182
717,182
171,980
171,980
1,912,673
1,912,673
2,138,291
2,138,291
756,001
756,001
4,945
4,945
3,252
3,252
2,902,489
2,902,489
4,815,162
4,815,162
9,244,158
9,244,158
764,837
764,837
$10,008,995
$10,008,995
Full year
average
Full year
AUM(3)
average
AUM(3)
$ 403,530
$ 403,530
306,232
306,232
131,236
131,236
45,319
45,319
886,317
886,317
2,262,361
2,262,361
824,832
824,832
8,024
8,024
61,439
61,439
3,156,656
3,156,656
174,967
174,967
798,832
798,832
642,051
642,051
162,871
162,871
1,778,721
1,778,721
1,979,704
1,979,704
713,802
713,802
5,882
5,882
3,263
3,263
2,702,651
2,702,651
4,481,372
4,481,372
8,524,345
8,524,345
696,355
696,355
$9,220,700
$9,220,700
Amounts include AUM attributable to the Kreos Transaction.
(1)
(2)
(2)
(3)
(3)
Amounts include AUM attributable to the Kreos Transaction.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
The following table presents component changes in AUM by investment style and product type for 2023.
The following table presents component changes in AUM by investment style and product type for 2023.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
49
49
December 31,
2022
December 31,
2022
$ 392,836
$ 392,836
1,053,083
1,053,083
669,629
669,629
202,012
202,012
2,317,560
2,317,560
2,081,742
2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
2,909,610
2,909,610
Net
inflows
Net
(outflows)
inflows
(outflows)
$ (26,772)
$ (26,772)
(882)
(882)
85,424
85,424
1,451
1,451
59,221
59,221
81,223
81,223
111,956
111,956
(746)
(746)
(6,491)
(6,491)
185,942
185,942
$
$
Acquisition(1)
Acquisition(1)
$
$
—
—
—
—
—
—
2,177
2,177
2,177
2,177
—
—
—
—
—
—
—
—
—
—
Market
change
Market
change
57,431
57,431
64,203
64,203
93,665
93,665
6,210
6,210
221,509
221,509
362,885
362,885
24,544
24,544
949
949
4,626
4,626
393,004
393,004
FX impact(2)
FX impact(2)
$ 3,953
$ 3,953
7,018
7,018
7,987
7,987
1,753
1,753
20,711
20,711
6,781
6,781
3,810
3,810
62
62
90
90
10,743
10,743
Non-ETF Index subtotal
Non-ETF Index subtotal
(65,941)
(65,941)
32,013
32,013
(1,891)
(1,891)
106
106
(35,713)
(35,713)
150,229
150,229
209,450
209,450
79,245
79,245
$288,695
$288,695
—
—
—
—
—
—
—
—
—
—
—
—
2,177
2,177
—
—
$2,177
$2,177
430,952
430,952
18,930
18,930
560
560
(137)
(137)
450,305
450,305
843,309
843,309
1,064,818
1,064,818
8,732
8,732
$1,073,550
$1,073,550
7,478
7,478
5,611
5,611
(110)
(110)
(11)
(11)
12,968
12,968
23,711
23,711
44,422
44,422
5,666
5,666
$50,088
$50,088
Index & ETFs subtotal
Index & ETFs subtotal
Long-term
Long-term
Cash management
Cash management
Total
Total
The following table presents component changes in AUM by product type for 2023.
The following table presents component changes in AUM by product type for 2023.
(in millions)
(in millions)
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index and ETFs:
Index and ETFs:
ETFs:
ETFs:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
ETFs subtotal
ETFs subtotal
Non-ETF Index:
Non-ETF Index:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and
commodities(4)
Currency and
commodities(4)
Alternatives subtotal
Alternatives subtotal
Long-term
Long-term
Cash management
Cash management
Total
Total
(1)
1,960,776
1,960,776
725,647
725,647
6,400
6,400
3,298
3,298
2,696,121
2,696,121
5,605,731
5,605,731
7,923,291
7,923,291
671,194
671,194
$8,594,485
$8,594,485
December 31,
2022
December 31,
2022
$4,435,354
$4,435,354
2,536,823
2,536,823
684,904
684,904
117,751
117,751
80,654
80,654
67,805
67,805
266,210
266,210
7,923,291
7,923,291
671,194
671,194
$8,594,485
$8,594,485
Net
inflows
Net
(outflows)
inflows
(outflows)
$ (11,490)
$ (11,490)
143,087
143,087
82,787
82,787
13,665
13,665
(11,370)
(11,370)
(7,229)
(7,229)
(4,934)
(4,934)
209,450
209,450
79,245
79,245
$288,695
$288,695
Acquisition(1)
Acquisition(1)
$
$
—
—
—
—
—
—
2,177
2,177
—
—
—
—
2,177
2,177
2,177
2,177
—
—
$2,177
$2,177
Market
change
Market
change
$ 851,268
$ 851,268
107,677
107,677
95,174
95,174
1,885
1,885
4,548
4,548
4,266
4,266
10,699
10,699
1,064,818
1,064,818
8,732
8,732
$1,073,550
$1,073,550
FX impact(2)
FX impact(2)
$18,212
$18,212
16,439
16,439
7,939
7,939
1,431
1,431
401
401
—
—
1,832
1,832
44,422
44,422
5,666
5,666
$50,088
$50,088
December 31,
2023
December 31,
2023
$
$
427,448
427,448
1,123,422
1,123,422
856,705
856,705
213,603
213,603
2,621,178
2,621,178
2,532,631
2,532,631
898,403
898,403
9,140
9,140
59,125
59,125
3,499,299
3,499,299
2,333,265
2,333,265
782,201
782,201
4,959
4,959
3,256
3,256
3,123,681
3,123,681
6,622,980
6,622,980
9,244,158
9,244,158
764,837
764,837
$10,008,995
$10,008,995
December 31,
2023
December 31,
2023
$ 5,293,344
$ 5,293,344
2,804,026
2,804,026
870,804
870,804
136,909
136,909
74,233
74,233
64,842
64,842
275,984
275,984
9,244,158
9,244,158
764,837
764,837
$10,008,995
$10,008,995
Full year
average
Full year
AUM(3)
average
AUM(3)
$ 409,687
$ 409,687
1,080,917
1,080,917
773,278
773,278
208,189
208,189
2,472,071
2,472,071
2,262,361
2,262,361
824,832
824,832
8,024
8,024
61,439
61,439
3,156,656
3,156,656
2,148,514
2,148,514
737,949
737,949
5,891
5,891
3,264
3,264
2,895,618
2,895,618
6,052,274
6,052,274
8,524,345
8,524,345
696,355
696,355
$9,220,700
$9,220,700
Full year
average
Full year
AUM(3)
average
AUM(3)
$4,820,562
$4,820,562
2,643,698
2,643,698
787,193
787,193
127,655
127,655
77,595
77,595
67,642
67,642
272,892
272,892
8,524,345
8,524,345
696,355
696,355
$9,220,700
$9,220,700
Amounts include AUM attributable to the Kreos Transaction.
(1)
(2)
(2)
(3)
(3)
(4)
Amounts include AUM attributable to the Kreos Transaction.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Amounts include commodity ETFs.
Amounts include commodity ETFs.
(4)
AUM increased $1.4 trillion to $10.0 trillion at
December 31, 2023 from $8.6 trillion at December 31,
AUM increased $1.4 trillion to $10.0 trillion at
2022, driven primarily by net market appreciation, net
December 31, 2023 from $8.6 trillion at December 31,
inflows, led by flows into bond and equity ETFs, cash
2022, driven primarily by net market appreciation, net
management, significant outsourcing mandates and
inflows, led by flows into bond and equity ETFs, cash
growth in private markets.
management, significant outsourcing mandates and
growth in private markets.
Net market appreciation of $1.1 trillion was primarily
driven by global equity market appreciation.
Net market appreciation of $1.1 trillion was primarily
driven by global equity market appreciation.
AUM increased $50 billion due to the impact of foreign
exchange movements, primarily due to the weakening of
AUM increased $50 billion due to the impact of foreign
the US dollar largely against the British pound and the
exchange movements, primarily due to the weakening of
euro, partially offset by the strengthening of the US dollar
the US dollar largely against the British pound and the
against the Japanese yen.
euro, partially offset by the strengthening of the US dollar
against the Japanese yen.
For further discussion on AUM, see Part I, Item 1 –
Business – Assets Under Management.
For further discussion on AUM, see Part I, Item 1 –
Business – Assets Under Management.
50 BlackRock | 2023 Form 10-K
50 BlackRock | 2023 Form 10-K
Component Changes in AUM for 2022
Component Changes in AUM for 2022
The following table presents the component changes in AUM by client type and product type for 2022.
The following table presents the component changes in AUM by client type and product type for 2022.
December 31,
2021
December 31,
2021
Net
inflows
Net
(outflows)
inflows
(outflows)
Market change
Market change
FX impact(1)
FX impact(1)
(in millions)
(in millions)
Retail:
Retail:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Retail subtotal
Retail subtotal
ETFs:
ETFs:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
ETFs subtotal
ETFs subtotal
Institutional:
Institutional:
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index:
Index:
$
$
471,937
471,937
365,306
365,306
155,461
155,461
47,349
47,349
1,040,053
1,040,053
2,447,248
2,447,248
745,373
745,373
9,119
9,119
65,614
65,614
3,267,354
3,267,354
199,980
199,980
767,402
767,402
642,951
642,951
146,384
146,384
1,756,717
1,756,717
$
$
(103)
(103)
(20,299)
(20,299)
(3,143)
(3,143)
4,022
4,022
(19,523)
(19,523)
100,756
100,756
122,893
122,893
1,333
1,333
(4,647)
(4,647)
220,335
220,335
9,882
9,882
114,742
114,742
33,950
33,950
10,252
10,252
168,826
168,826
$
$
(90,767)
(90,767)
(41,706)
(41,706)
(26,064)
(26,064)
(2,271)
(2,271)
(160,808)
(160,808)
(449,140)
(449,140)
(103,957)
(103,957)
(1,441)
(1,441)
70
70
(554,468)
(554,468)
(34,912)
(34,912)
(95,291)
(95,291)
(112,028)
(112,028)
(243)
(243)
(242,474)
(242,474)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Index subtotal
Index subtotal
Institutional subtotal
Institutional subtotal
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
(1)
(341,087)
(341,087)
(203,501)
(203,501)
(1,285)
(1,285)
569
569
(545,304)
(545,304)
(787,778)
(787,778)
(1,503,054)
(1,503,054)
1,071
1,071
(4)
(4)
$(1,501,987)
$(1,501,987)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
2,223,195
2,223,195
943,960
943,960
8,963
8,963
5,534
5,534
3,181,652
3,181,652
4,938,369
4,938,369
9,245,776
9,245,776
755,057
755,057
9,310
9,310
$ 10,010,143
$ 10,010,143
(5,432)
(5,432)
32,444
32,444
(918)
(918)
(2,482)
(2,482)
23,612
23,612
192,438
192,438
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
$ 306,570
$ 306,570
(1)
(2)
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
December 31,
2022
December 31,
2022
$ 370,612
$ 370,612
299,114
299,114
125,168
125,168
48,581
48,581
843,475
843,475
2,081,742
2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
2,909,610
2,909,610
168,734
168,734
774,955
774,955
544,469
544,469
153,433
153,433
1,641,591
1,641,591
1,814,266
1,814,266
704,661
704,661
6,392
6,392
3,296
3,296
2,528,615
2,528,615
4,170,206
4,170,206
7,923,291
7,923,291
671,194
671,194
—
—
$ 8,594,485
$ 8,594,485
Full year
average
Full year
AUM(2)
average
AUM(2)
$ 401,582
$ 401,582
323,500
323,500
136,690
136,690
48,937
48,937
910,709
910,709
2,163,108
2,163,108
719,931
719,931
8,231
8,231
66,599
66,599
2,957,869
2,957,869
175,567
175,567
715,600
715,600
571,448
571,448
150,357
150,357
1,612,972
1,612,972
1,937,695
1,937,695
792,941
792,941
7,550
7,550
4,696
4,696
2,742,882
2,742,882
4,355,854
4,355,854
8,224,432
8,224,432
719,284
719,284
4,854
4,854
$ 8,948,570
$ 8,948,570
$ (10,455)
$ (10,455)
(4,187)
(4,187)
(1,086)
(1,086)
(519)
(519)
(16,247)
(16,247)
(17,122)
(17,122)
(6,216)
(6,216)
(136)
(136)
(137)
(137)
(23,611)
(23,611)
(6,216)
(6,216)
(11,898)
(11,898)
(20,404)
(20,404)
(2,960)
(2,960)
(41,478)
(41,478)
(62,410)
(62,410)
(68,242)
(68,242)
(368)
(368)
(325)
(325)
(131,345)
(131,345)
(172,823)
(172,823)
(212,681)
(212,681)
(7,560)
(7,560)
—
—
$(220,241)
$(220,241)
The following table presents component changes in AUM by investment style and product type for 2022.
The following table presents component changes in AUM by investment style and product type for 2022.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
51
51
(in millions)
(in millions)
Active:
Active:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
Active subtotal
Active subtotal
Index and ETFs:
Index and ETFs:
ETFs:
ETFs:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
ETFs subtotal
ETFs subtotal
Non-ETF Index:
Non-ETF Index:
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives
Alternatives
(in millions)
(in millions)
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives:
Alternatives:
December 31,
2021
December 31,
2021
$
$
507,103
507,103
1,107,085
1,107,085
798,404
798,404
193,733
193,733
2,606,325
2,606,325
2,447,248
2,447,248
745,373
745,373
9,119
9,119
65,614
65,614
3,267,354
3,267,354
Net
inflows
Net
(outflows)
inflows
(outflows)
$
$
(2,672)
(2,672)
92,721
92,721
30,806
30,806
14,273
14,273
135,128
135,128
100,756
100,756
122,893
122,893
1,333
1,333
(4,647)
(4,647)
220,335
220,335
Market change
Market change
FX impact(1)
FX impact(1)
$ (100,240)
$ (100,240)
(132,590)
(132,590)
(138,092)
(138,092)
(2,516)
(2,516)
(373,438)
(373,438)
$ (11,355)
$ (11,355)
(14,133)
(14,133)
(21,489)
(21,489)
(3,478)
(3,478)
(50,455)
(50,455)
(449,140)
(449,140)
(103,957)
(103,957)
(1,441)
(1,441)
70
70
(554,468)
(554,468)
(17,122)
(17,122)
(6,216)
(6,216)
(136)
(136)
(137)
(137)
(23,611)
(23,611)
Non-ETF Index subtotal
Non-ETF Index subtotal
2,388,009
2,388,009
969,583
969,583
8,971
8,971
5,534
5,534
3,372,097
3,372,097
6,639,451
6,639,451
9,245,776
9,245,776
755,057
755,057
9,310
9,310
$ 10,010,143
$ 10,010,143
7,019
7,019
34,166
34,166
(917)
(917)
(2,481)
(2,481)
37,787
37,787
258,122
258,122
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
$ 306,570
$ 306,570
(366,526)
(366,526)
(207,908)
(207,908)
(1,285)
(1,285)
571
571
(575,148)
(575,148)
(1,129,616)
(1,129,616)
(1,503,054)
(1,503,054)
1,071
1,071
(4)
(4)
$(1,501,987)
$(1,501,987)
(67,726)
(67,726)
(70,194)
(70,194)
(369)
(369)
(326)
(326)
(138,615)
(138,615)
(162,226)
(162,226)
(212,681)
(212,681)
(7,560)
(7,560)
—
—
$(220,241)
$(220,241)
Index & ETFs subtotal
Index & ETFs subtotal
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
The following table presents component changes in AUM by product type for 2022.
The following table presents component changes in AUM by product type for 2022.
December 31,
2021
December 31,
2021
$ 5,342,360
$ 5,342,360
2,822,041
2,822,041
816,494
816,494
Net
inflows
Net
(outflows)
inflows
(outflows)
$ 105,103
$ 105,103
249,780
249,780
31,222
31,222
Market change
Market change
$ (915,906)
$ (915,906)
(444,455)
(444,455)
(140,818)
(140,818)
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and commodities(3)
Currency and commodities(3)
1,112
1,112
(3,710)
(3,710)
723
723
(1,875)
(1,875)
(1,503,054)
(1,503,054)
1,071
1,071
(4)
(4)
$(1,501,987)
$(1,501,987)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
102,579
102,579
87,348
87,348
74,954
74,954
264,881
264,881
9,245,776
9,245,776
755,057
755,057
9,310
9,310
$ 10,010,143
$ 10,010,143
16,052
16,052
(1,690)
(1,690)
(7,217)
(7,217)
7,145
7,145
393,250
393,250
(77,374)
(77,374)
(9,306)
(9,306)
$ 306,570
$ 306,570
Alternatives subtotal
Alternatives subtotal
Long-term
Long-term
Cash management
Cash management
Advisory
Advisory
Total
Total
(1)
FX impact(1)
FX impact(1)
$ (96,203)
$ (96,203)
(90,543)
(90,543)
(21,994)
(21,994)
(1,992)
(1,992)
(1,294)
(1,294)
(655)
(655)
(3,941)
(3,941)
(212,681)
(212,681)
(7,560)
(7,560)
—
—
$(220,241)
$(220,241)
December 31,
2022
December 31,
2022
$ 392,836
$ 392,836
1,053,083
1,053,083
669,629
669,629
202,012
202,012
2,317,560
2,317,560
2,081,742
2,081,742
758,093
758,093
8,875
8,875
60,900
60,900
2,909,610
2,909,610
1,960,776
1,960,776
725,647
725,647
6,400
6,400
3,298
3,298
2,696,121
2,696,121
5,605,731
5,605,731
7,923,291
7,923,291
671,194
671,194
—
—
$ 8,594,485
$ 8,594,485
December 31,
2022
December 31,
2022
$ 4,435,354
$ 4,435,354
2,536,823
2,536,823
684,904
684,904
117,751
117,751
80,654
80,654
67,805
67,805
266,210
266,210
7,923,291
7,923,291
671,194
671,194
—
—
$ 8,594,485
$ 8,594,485
Full year
average
Full year
AUM(2)
average
AUM(2)
$ 426,141
$ 426,141
1,016,918
1,016,918
708,130
708,130
199,294
199,294
2,350,483
2,350,483
2,163,108
2,163,108
719,931
719,931
8,231
8,231
66,599
66,599
2,957,869
2,957,869
2,088,703
2,088,703
815,123
815,123
7,558
7,558
4,696
4,696
2,916,080
2,916,080
5,873,949
5,873,949
8,224,432
8,224,432
719,284
719,284
4,854
4,854
$ 8,948,570
$ 8,948,570
Full year
average
Full year
AUM(2)
average
AUM(2)
$ 4,677,952
$ 4,677,952
2,551,972
2,551,972
723,919
723,919
111,075
111,075
84,024
84,024
75,490
75,490
270,589
270,589
8,224,432
8,224,432
719,284
719,284
4,854
4,854
$ 8,948,570
$ 8,948,570
(1)
(2)
(2)
(3)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Amounts include commodity ETFs.
Amounts include commodity ETFs.
(3)
AUM decreased $1.4 trillion to $8.6 trillion at
December 31, 2022 from $10.0 trillion at December 31,
AUM decreased $1.4 trillion to $8.6 trillion at
2021 driven by net market depreciation and the negative
December 31, 2022 from $10.0 trillion at December 31,
impact of foreign exchange movements, partially offset by
2021 driven by net market depreciation and the negative
positive net inflows, led by flows into bond ETFs,
impact of foreign exchange movements, partially offset by
significant outsourcing mandates and growth in private
positive net inflows, led by flows into bond ETFs,
markets.
significant outsourcing mandates and growth in private
markets.
Net market depreciation of $1.5 trillion was primarily
driven by global equity and fixed income market
Net market depreciation of $1.5 trillion was primarily
depreciation.
driven by global equity and fixed income market
depreciation.
AUM decreased $220 billion due to the negative impact of
foreign exchange movements, due to the strengthening of
AUM decreased $220 billion due to the negative impact of
the US dollar, largely against the British pound, the
foreign exchange movements, due to the strengthening of
Japanese yen and the euro.
the US dollar, largely against the British pound, the
Japanese yen and the euro.
52 BlackRock | 2023 Form 10-K
52 BlackRock | 2023 Form 10-K
DISCUSSION OF FINANCIAL RESULTS
DISCUSSION OF FINANCIAL RESULTS
Introduction
Introduction
The Company derives a substantial portion of its revenue
from investment advisory and administration fees, which
The Company derives a substantial portion of its revenue
are recognized as the services are performed over time
from investment advisory and administration fees, which
because the customer is receiving and consuming the
are recognized as the services are performed over time
benefits as they are provided by the Company. Fees are
because the customer is receiving and consuming the
primarily based on agreed-upon percentages of AUM and
benefits as they are provided by the Company. Fees are
recognized for services provided during the period, which
primarily based on agreed-upon percentages of AUM and
are distinct from services provided in other periods. Such
recognized for services provided during the period, which
fees are affected by changes in AUM, including market
are distinct from services provided in other periods. Such
appreciation or depreciation, foreign exchange translation
fees are affected by changes in AUM, including market
and net inflows or outflows. Net inflows or outflows
appreciation or depreciation, foreign exchange translation
represent the sum of new client assets, additional fundings
and net inflows or outflows. Net inflows or outflows
from existing clients (including dividend reinvestment),
represent the sum of new client assets, additional fundings
withdrawals of assets from, and termination of, client
from existing clients (including dividend reinvestment),
accounts and distributions to investors representing return
withdrawals of assets from, and termination of, client
of capital and return on investments. Market appreciation
accounts and distributions to investors representing return
or depreciation includes current income earned on, and
of capital and return on investments. Market appreciation
changes in the fair value of, securities held in client
or depreciation includes current income earned on, and
accounts. Foreign exchange translation reflects the impact
changes in the fair value of, securities held in client
of translating non-US dollar denominated AUM into US
accounts. Foreign exchange translation reflects the impact
dollars for reporting purposes.
of translating non-US dollar denominated AUM into US
dollars for reporting purposes.
The Company also earns revenue by lending securities on
behalf of clients, primarily to highly rated banks and
The Company also earns revenue by lending securities on
broker-dealers. The securities loaned are secured by
behalf of clients, primarily to highly rated banks and
collateral in the form of cash or securities, with minimum
broker-dealers. The securities loaned are secured by
collateral generally ranging from approximately 102% to
collateral in the form of cash or securities, with minimum
112% of the value of the loaned securities. Generally, the
collateral generally ranging from approximately 102% to
revenue earned is shared between the Company and the
112% of the value of the loaned securities. Generally, the
funds or accounts managed by the Company from which
revenue earned is shared between the Company and the
the securities are borrowed.
funds or accounts managed by the Company from which
the securities are borrowed.
Investment advisory agreements for certain separate
accounts and investment funds provide for performance
Investment advisory agreements for certain separate
fees based upon relative and/or absolute investment
accounts and investment funds provide for performance
performance, in addition to base fees based on AUM.
fees based upon relative and/or absolute investment
Investment advisory performance fees generally are earned
performance, in addition to base fees based on AUM.
after a given period of time when investment performance
Investment advisory performance fees generally are earned
exceeds a contractual threshold, and when it is determined
after a given period of time when investment performance
that the fees are no longer probable of significant reversal.
exceeds a contractual threshold, and when it is determined
As such, the timing of recognition of performance fees may
that the fees are no longer probable of significant reversal.
increase the volatility of the Company’s revenue and
As such, the timing of recognition of performance fees may
earnings. The magnitude of performance fees can fluctuate
increase the volatility of the Company’s revenue and
quarterly due to the timing of carried interest recognition on
earnings. The magnitude of performance fees can fluctuate
illiquid alternative products and a greater number and size
quarterly due to the timing of carried interest recognition on
of liquid products with performance measurement periods
illiquid alternative products and a greater number and size
that end in the third and fourth quarters.
of liquid products with performance measurement periods
that end in the third and fourth quarters.
The Company offers investment management technology
systems, risk management services, wealth management
The Company offers investment management technology
and digital distribution tools, all on a fee basis. Clients
systems, risk management services, wealth management
include banks, insurance companies, official institutions,
and digital distribution tools, all on a fee basis. Clients
pension funds, asset managers, retail distributors and
include banks, insurance companies, official institutions,
other investors. Fees earned for technology services are
pension funds, asset managers, retail distributors and
primarily recorded as services are performed over time
other investors. Fees earned for technology services are
and are generally determined using the value of positions
primarily recorded as services are performed over time
on the Aladdin platform, or on a fixed-rate basis. Revenue
and are generally determined using the value of positions
derived from the sale of software licenses is recognized
on the Aladdin platform, or on a fixed-rate basis. Revenue
upon the granting of access rights.
derived from the sale of software licenses is recognized
upon the granting of access rights.
The Company earns distribution and service fees for
distributing investment products and providing support
The Company earns distribution and service fees for
services to investment portfolios. The fees are primarily
distributing investment products and providing support
based on AUM and are recognized when the amount of
services to investment portfolios. The fees are primarily
fees is known.
based on AUM and are recognized when the amount of
fees is known.
The Company advises global financial institutions,
regulators, and government entities across a range of risk,
The Company advises global financial institutions,
regulatory, capital markets and strategic services. Fees
regulators, and government entities across a range of risk,
earned for advisory services, which are included in
regulatory, capital markets and strategic services. Fees
advisory and other revenue, are determined using fixed-
earned for advisory services, which are included in
rate fees and are recognized over time as the related
advisory and other revenue, are determined using fixed-
services are completed.
rate fees and are recognized over time as the related
services are completed.
The Company earns fees for transition management
services primarily comprised of commissions recognized
The Company earns fees for transition management
in connection with buying and selling securities on behalf
services primarily comprised of commissions recognized
of its customers. Commissions related to transition
in connection with buying and selling securities on behalf
management services, which are included in advisory and
of its customers. Commissions related to transition
other revenue, are recorded on a trade-date basis as
management services, which are included in advisory and
transactions occur.
other revenue, are recorded on a trade-date basis as
transactions occur.
The Company also records revenue related to certain
minority investments accounted for as equity method
The Company also records revenue related to certain
investments.
minority investments accounted for as equity method
investments.
Operating expense reflects employee compensation and
benefits, distribution and servicing costs, direct fund
Operating expense reflects employee compensation and
expense, general and administration expense and
benefits, distribution and servicing costs, direct fund
amortization of finite-lived intangible assets.
expense, general and administration expense and
amortization of finite-lived intangible assets.
• Employee compensation and benefits expense
• Employee compensation and benefits expense
includes salaries, commissions, temporary help,
incentive compensation, employer payroll taxes,
includes salaries, commissions, temporary help,
severance and related benefit costs.
incentive compensation, employer payroll taxes,
severance and related benefit costs.
• Distribution and servicing costs, which are primarily
• Distribution and servicing costs, which are primarily
AUM driven, include payments to third parties,
primarily associated with distribution and servicing of
AUM driven, include payments to third parties,
client investments in certain Company products.
primarily associated with distribution and servicing of
client investments in certain Company products.
• Direct fund expense primarily consists of third-party
• Direct fund expense primarily consists of third-party
nonadvisory expenses incurred by the Company
related to certain funds for the use of index
nonadvisory expenses incurred by the Company
trademarks, reference data for indices, custodial
related to certain funds for the use of index
services, fund administration, fund accounting,
trademarks, reference data for indices, custodial
transfer agent services, shareholder reporting
services, fund administration, fund accounting,
services, legal expense, audit and tax services as well
transfer agent services, shareholder reporting
as other fund-related expenses directly attributable to
services, legal expense, audit and tax services as well
the nonadvisory operations of the fund. These
as other fund-related expenses directly attributable to
expenses may vary over time with fluctuations in
the nonadvisory operations of the fund. These
AUM, number of shareholder accounts, or other
expenses may vary over time with fluctuations in
attributes directly related to volume of business.
AUM, number of shareholder accounts, or other
attributes directly related to volume of business.
• General and administration expense includes
• General and administration expense includes
marketing and promotional (including travel and
entertainment expense), occupancy and office-
marketing and promotional (including travel and
related, portfolio services (including clearing expense
entertainment expense), occupancy and office-
related to transition management services and
related, portfolio services (including clearing expense
market data costs), sub-advisory, technology,
related to transition management services and
professional services, communications, contingent
market data costs), sub-advisory, technology,
consideration fair value adjustments, product launch
professional services, communications, contingent
costs, the net impact of foreign currency
consideration fair value adjustments, product launch
remeasurement, and other general and
costs, the net impact of foreign currency
administration expense.
remeasurement, and other general and
administration expense.
Approximately 80% of the Company’s revenue is
generated in US dollars. The Company’s revenue and
Approximately 80% of the Company’s revenue is
expense generated in foreign currencies (primarily the
generated in US dollars. The Company’s revenue and
euro and British pound) are impacted by foreign exchange
expense generated in foreign currencies (primarily the
rates. Any effect of foreign exchange rate change on
euro and British pound) are impacted by foreign exchange
revenue is partially offset by a change in expense driven by
rates. Any effect of foreign exchange rate change on
the Company’s considerable non-dollar expense base
revenue is partially offset by a change in expense driven by
related to its operations outside the US.
the Company’s considerable non-dollar expense base
related to its operations outside the US.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
53
53
Nonoperating income (expense) includes the effect of
changes in the valuations on investments and earnings on
Nonoperating income (expense) includes the effect of
equity method investments as well as interest and
changes in the valuations on investments and earnings on
dividend income and interest expense. The Company
equity method investments as well as interest and
primarily holds seed and co-investments in sponsored
dividend income and interest expense. The Company
investment products that invest in a variety of asset
primarily holds seed and co-investments in sponsored
classes, including private equity, private credit, hedge
investment products that invest in a variety of asset
funds and real assets. Investments generally are made for
classes, including private equity, private credit, hedge
co-investment purposes, to establish a performance track
funds and real assets. Investments generally are made for
record or for regulatory purposes, including Federal
co-investment purposes, to establish a performance track
record or for regulatory purposes, including Federal
Reserve Bank stock. The Company does not engage in
proprietary trading activities that could conflict with the
Reserve Bank stock. The Company does not engage in
interests of its clients.
proprietary trading activities that could conflict with the
interests of its clients.
In addition, nonoperating income (expense) includes the
impact of changes in the valuations of consolidated
In addition, nonoperating income (expense) includes the
sponsored investment products (“CIPs”). The portion of
impact of changes in the valuations of consolidated
nonoperating income (expense) not attributable to the
sponsored investment products (“CIPs”). The portion of
Company is allocated to NCI on the consolidated
nonoperating income (expense) not attributable to the
statements of income.
Company is allocated to NCI on the consolidated
statements of income.
Revenue
Revenue
The table below presents detail of revenue for 2023 and 2022 and includes the product type mix of base fees and
securities lending revenue and performance fees.
The table below presents detail of revenue for 2023 and 2022 and includes the product type mix of base fees and
securities lending revenue and performance fees.
Revenue:
Investment advisory, administration fees and securities lending revenue:
Investment advisory, administration fees and securities lending revenue:
(in millions)
(in millions)
Revenue:
Equity:
Equity:
Active
Active
ETFs
ETFs
Non-ETF index
Non-ETF index
Equity subtotal
Equity subtotal
Fixed income:
Fixed income:
Active
Active
ETFs
ETFs
Non-ETF index
Non-ETF index
Fixed income subtotal
Fixed income subtotal
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and commodities(1)
Currency and commodities(1)
Alternatives subtotal
Alternatives subtotal
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Alternatives subtotal
Alternatives subtotal
Total investment advisory performance fees
Total investment advisory performance fees
Technology services revenue
Technology services revenue
Distribution fees
Distribution fees
Advisory and other revenue:
Advisory and other revenue:
Advisory
Advisory
Other
Other
Total advisory and other revenue
Total advisory and other revenue
Total revenue
Total revenue
(1)
Amounts include commodity ETFs.
(1)
Amounts include commodity ETFs.
Long-term
Long-term
Cash management
Cash management
Total investment advisory, administration fees and securities lending revenue
Total investment advisory, administration fees and securities lending revenue
Investment advisory performance fees:
Investment advisory performance fees:
2023
2023
2022
2022
$ 2,000
$ 2,000
4,418
4,418
743
743
7,161
7,161
$ 2,147
$ 2,147
4,345
4,345
711
711
7,203
7,203
1,897
1,897
1,230
1,230
353
353
3,480
3,480
1,203
1,203
889
889
572
572
185
185
1,646
1,646
13,490
13,490
909
909
14,399
14,399
99
99
4
4
28
28
273
273
150
150
423
423
554
554
1,485
1,485
1,262
1,262
1,977
1,977
1,122
1,122
396
396
3,495
3,495
1,299
1,299
741
741
633
633
216
216
1,590
1,590
13,587
13,587
864
864
14,451
14,451
49
49
25
25
25
25
296
296
119
119
415
415
514
514
1,364
1,364
1,381
1,381
81
81
78
78
159
159
$ 17,859
$ 17,859
56
56
107
107
163
163
$ 17,873
$ 17,873
54 BlackRock | 2023 Form 10-K
54 BlackRock | 2023 Form 10-K
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product
type:
The table below lists a percentage breakdown of base fees and securities lending revenue and average AUM by product
type:
Equity:
Equity:
Active
Active
ETFs
ETFs
Non-ETF index
Non-ETF index
Equity subtotal
Equity subtotal
Fixed income:
Fixed income:
Active
Active
ETFs
ETFs
Non-ETF index
Non-ETF index
Fixed income subtotal
Fixed income subtotal
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and commodities(2)
Currency and commodities(2)
Alternatives subtotal
Alternatives subtotal
Long-term
Long-term
Cash management
Cash management
Total AUM
Total AUM
(1)
Percentage of Base Fees
and Securities Lending Revenue
Percentage of Base Fees
and Securities Lending Revenue
2023
2023
2022
2022
Percentage of Average
AUM by Product Type(1)
Percentage of Average
AUM by Product Type(1)
2022
2023
2022
2023
14%
14%
31%
31%
5%
5%
50%
50%
13%
13%
9%
9%
2%
2%
24%
24%
8%
8%
7%
7%
4%
4%
1%
1%
12%
12%
94%
94%
6%
6%
100%
100%
14%
14%
30%
30%
5%
5%
49%
49%
14%
14%
8%
8%
3%
3%
25%
25%
9%
9%
5%
5%
4%
4%
2%
2%
11%
11%
94%
94%
6%
6%
100%
100%
4%
4%
24%
24%
23%
23%
51%
51%
12%
12%
9%
9%
8%
8%
29%
29%
9%
9%
1%
1%
1%
1%
1%
1%
3%
3%
92%
92%
8%
8%
100%
100%
5%
5%
24%
24%
24%
24%
53%
53%
11%
11%
8%
8%
9%
9%
28%
28%
8%
8%
1%
1%
1%
1%
1%
1%
3%
3%
92%
92%
8%
8%
100%
100%
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(1)
(2)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
Amounts include commodity ETFs.
Amounts include commodity ETFs.
(2)
Revenue of $17.9 billion in 2023 was relatively flat
compared with 2022, primarily driven by the negative
Revenue of $17.9 billion in 2023 was relatively flat
impact of markets on average AUM, partially offset by
compared with 2022, primarily driven by the negative
higher technology services revenue.
impact of markets on average AUM, partially offset by
higher technology services revenue.
Investment advisory, administration fees and securities
lending revenue of $14.4 billion in 2023 decreased
Investment advisory, administration fees and securities
$52 million from $14.5 billion in 2022, primarily driven by
lending revenue of $14.4 billion in 2023 decreased
the negative impact of market beta on average AUM,
$52 million from $14.5 billion in 2022, primarily driven by
partially offset by organic base fee growth and higher
the negative impact of market beta on average AUM,
securities lending revenue. Securities lending revenue of
partially offset by organic base fee growth and higher
$675 million increased $76 million from $599 million in
securities lending revenue. Securities lending revenue of
2022, primarily reflecting higher spreads.
$675 million increased $76 million from $599 million in
2022, primarily reflecting higher spreads.
Investment advisory performance fees of $554 million in
2023 increased $40 million from $514 million in 2022,
Investment advisory performance fees of $554 million in
2023 increased $40 million from $514 million in 2022,
primarily reflecting higher revenue from long-only equity
and liquid alternative products, partially offset by lower
primarily reflecting higher revenue from long-only equity
revenue from illiquid alternative and long-only fixed
and liquid alternative products, partially offset by lower
income products.
revenue from illiquid alternative and long-only fixed
income products.
Technology services revenue of $1.5 billion in 2023
increased $121 million from $1.4 billion in 2022,
Technology services revenue of $1.5 billion in 2023
reflecting the onboarding of several large clients and the
increased $121 million from $1.4 billion in 2022,
impact of 2023 eFront on-premise license renewals, for
reflecting the onboarding of several large clients and the
which a majority of the revenue is recognized at the time
impact of 2023 eFront on-premise license renewals, for
of renewal.
which a majority of the revenue is recognized at the time
of renewal.
Distribution fees of $1.3 billion in 2023 decreased
$119 million from $1.4 billion in 2022, primarily reflecting
Distribution fees of $1.3 billion in 2023 decreased
impact of lower average AUM.
$119 million from $1.4 billion in 2022, primarily reflecting
impact of lower average AUM.
Expense
Expense
The following table presents expense for 2023 and 2022.
The following table presents expense for 2023 and 2022.
(in millions)
(in millions)
Expense:
Expense:
Employee compensation and benefits
Employee compensation and benefits
Distribution and servicing costs
Distribution and servicing costs
Direct fund expense
Direct fund expense
General and administration expense:
General and administration expense:
Marketing and promotional
Marketing and promotional
Occupancy and office related
Occupancy and office related
Portfolio services
Portfolio services
Sub-advisory
Sub-advisory
Technology
Technology
Professional services
Professional services
Communications
Communications
Foreign exchange remeasurement
Foreign exchange remeasurement
Contingent consideration fair value adjustments
Contingent consideration fair value adjustments
Product launch costs
Product launch costs
Other general and administration
Other general and administration
Total general and administration expense
Total general and administration expense
Restructuring charge
Restructuring charge
Amortization of intangible assets
Amortization of intangible assets
Total expense
Total expense
Expense increased $96 million, or 1%, from 2022,
reflecting higher direct fund expense, employee
Expense increased $96 million, or 1%, from 2022,
compensation and benefits expense and general and
reflecting higher direct fund expense, employee
administration expense, partially offset by lower
compensation and benefits expense and general and
distribution and servicing costs.
administration expense, partially offset by lower
distribution and servicing costs.
Employee compensation and benefits expense increased
$98 million from 2022, reflecting higher base
Employee compensation and benefits expense increased
compensation, primarily as a result of base salary
$98 million from 2022, reflecting higher base
increases, and higher severance, partially offset by lower
compensation, primarily as a result of base salary
incentive compensation, largely driven by lower operating
increases, and higher severance, partially offset by lower
income.
incentive compensation, largely driven by lower operating
income.
Distribution and servicing costs decreased $128 million
from 2022, primarily reflecting the impact of lower
Distribution and servicing costs decreased $128 million
average AUM.
from 2022, primarily reflecting the impact of lower
average AUM.
Direct fund expense increased $105 million from 2022,
primarily reflecting the impact of higher average AUM.
Direct fund expense increased $105 million from 2022,
primarily reflecting the impact of higher average AUM.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
55
55
2023
2023
$ 5,779
$ 5,779
2,051
2,051
1,331
1,331
344
344
418
418
270
270
81
81
607
607
195
195
47
47
(6)
(6)
3
3
—
—
252
252
2,211
2,211
61
61
151
151
$ 11,584
$ 11,584
2022
2022
$ 5,681
$ 5,681
2,179
2,179
1,226
1,226
331
331
403
403
280
280
80
80
600
600
180
180
44
44
10
10
3
3
6
6
223
223
2,160
2,160
91
91
151
151
$ 11,488
$ 11,488
General and administration expense increased $51 million
from 2022, primarily reflecting higher occupancy and
General and administration expense increased $51 million
office related expense, higher professional services
from 2022, primarily reflecting higher occupancy and
expense, and higher marketing and promotional expense,
office related expense, higher professional services
including the impact from higher travel and entertainment
expense, and higher marketing and promotional expense,
expense, and higher other general and administration
including the impact from higher travel and entertainment
expense, including costs related to certain legal matters,
expense, and higher other general and administration
partially offset by the impact of foreign exchange
expense, including costs related to certain legal matters,
remeasurement.
partially offset by the impact of foreign exchange
remeasurement.
Restructuring charges of $61 million and $91 million,
comprised of severance and compensation expense for
Restructuring charges of $61 million and $91 million,
accelerated vesting of previously granted deferred
comprised of severance and compensation expense for
compensation awards, were recorded in 2023 and 2022,
accelerated vesting of previously granted deferred
respectively, as previously described. The impact of these
compensation awards, were recorded in 2023 and 2022,
restructuring charges has been excluded from our “as
respectively, as previously described. The impact of these
adjusted” financial results. See Non-GAAP Financial
restructuring charges has been excluded from our “as
Measures for further information on as adjusted items.
adjusted” financial results. See Non-GAAP Financial
Measures for further information on as adjusted items.
2022 Income tax expense (GAAP) reflected:
2022 Income tax expense (GAAP) reflected:
• a discrete tax benefit of $148 million, primarily related
to the resolution of certain outstanding tax matters;
• a discrete tax benefit of $148 million, primarily related
to the resolution of certain outstanding tax matters;
• a discrete tax benefit of $87 million, related to stock-
based compensation awards that vested in 2022; and
• a discrete tax benefit of $87 million, related to stock-
based compensation awards that vested in 2022; and
• a discrete tax benefit of $35 million associated with
• a discrete tax benefit of $35 million associated with
the net noncash tax benefit related to the revaluation
of certain deferred income tax liabilities.
the net noncash tax benefit related to the revaluation
of certain deferred income tax liabilities.
The as adjusted effective tax rate of 20.7% for 2022
excluded the $35 million net noncash benefit mentioned
The as adjusted effective tax rate of 20.7% for 2022
above as it will not have a cash flow impact and to ensure
excluded the $35 million net noncash benefit mentioned
comparability among periods presented.
above as it will not have a cash flow impact and to ensure
comparability among periods presented.
In January 2024, the Company reorganized certain of its
intellectual property framework to better align the
In January 2024, the Company reorganized certain of its
corporate structure for future commercial business
intellectual property framework to better align the
growth objectives. At this time, the Company is still
corporate structure for future commercial business
evaluating the impact to the consolidated financial
growth objectives. At this time, the Company is still
statements.
evaluating the impact to the consolidated financial
statements.
STATEMENT OF FINANCIAL CONDITION
OVERVIEW
STATEMENT OF FINANCIAL CONDITION
OVERVIEW
As Adjusted Statement of Financial Condition
As Adjusted Statement of Financial Condition
The following table presents a reconciliation of the
consolidated statement of financial condition presented
The following table presents a reconciliation of the
on a GAAP basis to the consolidated statement of financial
consolidated statement of financial condition presented
condition, excluding the impact of separate account
on a GAAP basis to the consolidated statement of financial
assets and separate account collateral held under
condition, excluding the impact of separate account
securities lending agreements (directly related to lending
assets and separate account collateral held under
separate account securities) and separate account
securities lending agreements (directly related to lending
liabilities and separate account collateral liabilities under
separate account securities) and separate account
securities lending agreements and CIPs.
liabilities and separate account collateral liabilities under
securities lending agreements and CIPs.
The Company presents the as adjusted statement of
financial condition as additional information to enable
The Company presents the as adjusted statement of
investors to exclude certain assets that have equal and
financial condition as additional information to enable
offsetting liabilities or NCI that ultimately do not have an
investors to exclude certain assets that have equal and
impact on stockholders’ equity or cash flows.
offsetting liabilities or NCI that ultimately do not have an
Management views the as adjusted statement of financial
impact on stockholders’ equity or cash flows.
condition, which contains non-GAAP financial measures,
Management views the as adjusted statement of financial
as an economic presentation of the Company’s total
condition, which contains non-GAAP financial measures,
assets and liabilities; however, it does not advocate that
as an economic presentation of the Company’s total
investors consider such non-GAAP financial measures in
assets and liabilities; however, it does not advocate that
isolation from, or as a substitute for, financial information
investors consider such non-GAAP financial measures in
prepared in accordance with GAAP.
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.
57
57
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
Separate Account Assets and Liabilities and Separate
Account Collateral Held under Securities Lending
Separate Account Assets and Liabilities and Separate
Agreements
Account Collateral Held under Securities Lending
Agreements
Separate account assets are maintained by BlackRock Life
Limited, a wholly owned subsidiary of the Company that is
Separate account assets are maintained by BlackRock Life
a registered life insurance company in the UK, and
Limited, a wholly owned subsidiary of the Company that is
represent segregated assets held for purposes of funding
a registered life insurance company in the UK, and
individual and group pension contracts. The Company
represent segregated assets held for purposes of funding
records equal and offsetting separate account liabilities.
individual and group pension contracts. The Company
The separate account assets are not available to creditors
records equal and offsetting separate account liabilities.
of the Company and the holders of the pension contracts
The separate account assets are not available to creditors
have no recourse to the Company’s assets. The net
of the Company and the holders of the pension contracts
investment income attributable to separate account
have no recourse to the Company’s assets. The net
assets accrues directly to the contract owners and is not
investment income attributable to separate account
reported on the consolidated statements of income. While
assets accrues directly to the contract owners and is not
BlackRock has no economic interest in these assets or
reported on the consolidated statements of income. While
liabilities, BlackRock earns an investment advisory fee for
BlackRock has no economic interest in these assets or
the service of managing these assets on behalf of its
liabilities, BlackRock earns an investment advisory fee for
clients.
the service of managing these assets on behalf of its
clients.
In addition, the Company records on its consolidated
statements of financial condition the separate account
In addition, the Company records on its consolidated
collateral obtained under BlackRock Life Limited
statements of financial condition the separate account
securities lending arrangements for which it has legal title
collateral obtained under BlackRock Life Limited
as its own asset in addition to an equal and offsetting
securities lending arrangements for which it has legal title
separate account collateral liability for the obligation to
as its own asset in addition to an equal and offsetting
return the collateral. The collateral is not available to
separate account collateral liability for the obligation to
creditors of the Company, and the borrowers under the
return the collateral. The collateral is not available to
securities lending arrangements have no recourse to the
creditors of the Company, and the borrowers under the
Company’s assets.
securities lending arrangements have no recourse to the
Company’s assets.
Consolidated Sponsored Investment Products
Consolidated Sponsored Investment Products
The Company consolidates certain sponsored investment
products accounted for as variable interest entities
The Company consolidates certain sponsored investment
(“VIEs”) and voting rights entities (“VREs”). See Note 2,
products accounted for as variable interest entities
Significant Accounting Policies, in the notes to the
(“VIEs”) and voting rights entities (“VREs”). See Note 2,
consolidated financial statements contained in Part II,
Significant Accounting Policies, in the notes to the
Item 8 of this filing for more information on the
consolidated financial statements contained in Part II,
Company’s consolidation policy.
Item 8 of this filing for more information on the
Company’s consolidation policy.
The Company cannot readily access cash and cash
equivalents or other assets held by CIPs to use in its
The Company cannot readily access cash and cash
operating activities. In addition, the Company cannot
equivalents or other assets held by CIPs to use in its
readily sell investments held by CIPs in order to obtain
operating activities. In addition, the Company cannot
cash for use in the Company’s operations.
readily sell investments held by CIPs in order to obtain
cash for use in the Company’s operations.
56 BlackRock | 2023 Form 10-K
56 BlackRock | 2023 Form 10-K
Nonoperating Results
Nonoperating Results
The summary of nonoperating income (expense), less net income (loss) attributable to NCI for 2023 and 2022 was as
follows:
The summary of nonoperating income (expense), less net income (loss) attributable to NCI for 2023 and 2022 was as
follows:
(in millions)
(in millions)
Nonoperating income (expense), GAAP basis
Nonoperating income (expense), GAAP basis
Less: Net income (loss) attributable to NCI
Less: Net income (loss) attributable to NCI
Nonoperating income (expense), net of NCI
Nonoperating income (expense), net of NCI
Less: Hedge gain (loss) on deferred cash compensation plans(1)
Less: Hedge gain (loss) on deferred cash compensation plans(1)
Nonoperating income (expense), net of NCI, as adjusted(2)
Nonoperating income (expense), net of NCI, as adjusted(2)
(in millions)
(in millions)
Net gain (loss) on investments, net of NCI
Net gain (loss) on investments, net of NCI
Private equity
Private equity
Real assets
Real assets
Other alternatives(3)
Other alternatives(3)
Other investments(4)
Other investments(4)
Hedge gain (loss) on deferred cash compensation plans(1)
Hedge gain (loss) on deferred cash compensation plans(1)
Subtotal
Subtotal
Other gains (losses)(5)
Other gains (losses)(5)
Total net gain (loss) on investments, net of NCI
Total net gain (loss) on investments, net of NCI
Interest and dividend income
Interest and dividend income
Interest expense
Interest expense
Net interest income (expense)
Net interest income (expense)
Nonoperating income (expense), net of NCI
Nonoperating income (expense), net of NCI
Less: Hedge gain (loss) on deferred cash compensation plans(1)
Less: Hedge gain (loss) on deferred cash compensation plans(1)
Nonoperating income (expense), net of NCI, as adjusted(2)
Nonoperating income (expense), net of NCI, as adjusted(2)
(1)
Amount relates to the gain (loss) from economically hedging BlackRock’s deferred cash compensation plans.
2023
2023
$ 880
$ 880
174
174
706
706
58
58
$ 648
$ 648
2023
2023
$ 349
$ 349
13
13
49
49
66
66
58
58
535
535
(10)
(10)
525
525
473
473
(292)
(292)
181
181
706
706
58
58
$ 648
$ 648
2022
2022
$ (95)
$ (95)
(184)
(184)
89
89
—
—
$ 89
$ 89
2022
2022
$ 88
$ 88
28
28
5
5
(201)
(201)
—
—
(80)
(80)
229
229
149
149
152
152
(212)
(212)
(60)
(60)
89
89
—
—
$ 89
$ 89
(1)
(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
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
value. See Non-GAAPFinancialMeasuresfor further information on other non-GAAP financial measures.
(3)
(3)
(4)
(4)
(5)
(5)
value. See Non-GAAPFinancialMeasuresfor further information on other non-GAAP financial measures.
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
Amounts primarily include net gains (losses) related to BlackRock’s seed investment portfolio, net of the impact of certain hedges.
Amounts primarily include net gains (losses) related to BlackRock’s seed investment portfolio, net of the impact of certain hedges.
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
include noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
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
include noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
Income Tax Expense
Income Tax Expense
(in millions)
(in millions)
Operating income(1)
Operating income(1)
Total nonoperating income (expense)(1)(2)
Total nonoperating income (expense)(1)(2)
Income before income taxes(2)
Income before income taxes(2)
Income tax expense
Income tax expense
Effective tax rate
Effective tax rate
(1)
As adjusted items are described in more detail in Non-GAAPFinancialMeasures.
(1)
(2) Net of net income (loss) attributable to NCI.
As adjusted items are described in more detail in Non-GAAPFinancialMeasures.
(2) Net of net income (loss) attributable to NCI.
The Company’s tax rate is affected by tax rates in foreign
jurisdictions and the relative amount of income earned in
The Company’s tax rate is affected by tax rates in foreign
those jurisdictions, which the Company expects to be fairly
jurisdictions and the relative amount of income earned in
consistent in the near term. The significant foreign
those jurisdictions, which the Company expects to be fairly
jurisdictions that have different statutory tax rates than
consistent in the near term. The significant foreign
the US federal statutory rate of 21% include the UK,
jurisdictions that have different statutory tax rates than
Canada, Germany and Ireland.
the US federal statutory rate of 21% include the UK,
Canada, Germany and Ireland.
2023 Income tax expense (GAAP) reflected:
2023 Income tax expense (GAAP) reflected:
• a discrete tax benefit of $201 million, related to the
resolution of certain outstanding tax matters; and
• a discrete tax benefit of $201 million, related to the
resolution of certain outstanding tax matters; and
GAAP
GAAP
2023
2023
$6,275
$6,275
$ 706
$ 706
$6,981
$6,981
$1,479
$1,479
21.2%
21.2%
2022
2022
$6,385
$6,385
89
$
89
$
$6,474
$6,474
$1,296
$1,296
20.0%
20.0%
As Adjusted
As Adjusted
2023
2023
$6,593
$6,593
$ 648
$ 648
$7,241
$7,241
$1,549
$1,549
2022
2022
$6,711
$6,711
89
$
89
$
$6,800
$6,800
$1,409
$1,409
21.4%
21.4%
20.7%
20.7%
• a discrete tax benefit of $41 million, related to stock-
based compensation awards that vested in 2023.
• a discrete tax benefit of $41 million, related to stock-
based compensation awards that vested in 2023.
On August 16, 2022, the Inflation Reduction Act of 2022
(“IRA”) was enacted into law, which became effective
On August 16, 2022, the Inflation Reduction Act of 2022
January 1, 2023 and introduced new provisions including
(“IRA”) was enacted into law, which became effective
a corporate book minimum tax and an excise tax on net
January 1, 2023 and introduced new provisions including
stock repurchases. The provisions within the IRA did not
a corporate book minimum tax and an excise tax on net
have a material impact on BlackRock’s consolidated
stock repurchases. The provisions within the IRA did not
financial statements.
have a material impact on BlackRock’s consolidated
financial statements.
58 BlackRock | 2023 Form 10-K
58 BlackRock | 2023 Form 10-K
Cash and cash equivalents
Cash and cash equivalents
Accounts receivable
Accounts receivable
Investments
Investments
Separate account assets and collateral held under securities
Separate account assets and collateral held under securities
Operating lease right-of-use assets
Operating lease right-of-use assets
Other assets(3)
Other assets(3)
Subtotal
Subtotal
lending agreements
lending agreements
Goodwill and intangible assets, net
Goodwill and intangible assets, net
Accrued compensation and benefits
Accrued compensation and benefits
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities
Borrowings
Borrowings
Separate account liabilities and collateral liabilities under securities
Separate account liabilities and collateral liabilities under securities
Deferred income tax liabilities(4)
Deferred income tax liabilities(4)
Operating lease liabilities
Operating lease liabilities
Other liabilities
Other liabilities
lending agreements
lending agreements
(in millions)
(in millions)
Assets
Assets
Total assets
Total assets
Liabilities
Liabilities
Total liabilities
Total liabilities
Equity
Equity
(1)
(2)
(2)
(3)
(3)
(4)
(4)
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
59
59
and hedged exposures, to reflect another helpful measure
for investors. The economic impact of investments held
and hedged exposures, to reflect another helpful measure
pursuant to deferred cash compensation plans is
for investors. The economic impact of investments held
substantially offset by a change in associated
pursuant to deferred cash compensation plans is
compensation expense, and the impact of the portfolio of
substantially offset by a change in associated
seed investments is mitigated by futures entered into as
compensation expense, and the impact of the portfolio of
part of the Company’s macro hedging strategy. Carried
seed investments is mitigated by futures entered into as
interest capital allocations are excluded as there is no
part of the Company’s macro hedging strategy. Carried
impact to BlackRock’s stockholders’ equity until such
interest capital allocations are excluded as there is no
amounts are realized as performance fees. Finally, the
impact to BlackRock’s stockholders’ equity until such
Company’s regulatory investment in Federal Reserve Bank
amounts are realized as performance fees. Finally, the
stock, which is not subject to market or interest rate risk, is
Company’s regulatory investment in Federal Reserve Bank
excluded from the Company’s net economic investment
stock, which is not subject to market or interest rate risk, is
exposure.
excluded from the Company’s net economic investment
exposure.
December 31, 2023
December 31, 2023
GAAP
Basis
GAAP
Basis
$
$
8,736
8,736
3,916
3,916
9,740
9,740
60,656
60,656
1,421
1,421
4,960
4,960
89,429
89,429
33,782
33,782
$ 123,211
$ 123,211
$
$
2,393
2,393
1,240
1,240
7,918
7,918
60,656
60,656
3,506
3,506
1,784
1,784
4,474
4,474
81,971
81,971
Separate
Account
Separate
Assets/
Account
Collateral(1)
Assets/
Collateral(1)
$
$
—
—
—
—
—
—
60,656
60,656
—
—
—
—
60,656
60,656
—
—
$ 60,656
$ 60,656
$
$
—
—
—
—
—
—
60,656
60,656
—
—
—
—
—
—
60,656
60,656
CIPs(2)
CIPs(2)
$
$
288
288
—
—
1,866
1,866
—
—
—
—
122
122
2,276
2,276
—
—
$ 2,276
$ 2,276
$
$
—
—
—
—
—
—
—
—
—
—
—
—
425
425
425
425
As
Adjusted
As
Adjusted
$ 8,448
$ 8,448
3,916
3,916
7,874
7,874
—
—
1,421
1,421
4,838
4,838
26,497
26,497
33,782
33,782
$ 60,279
$ 60,279
$ 2,393
$ 2,393
1,240
1,240
7,918
7,918
—
—
3,506
3,506
1,784
1,784
4,049
4,049
20,890
20,890
“economic” basis, which eliminates the portion of
investments that does not impact BlackRock’s book value
“economic” basis, which eliminates the portion of
or net income attributable to BlackRock. BlackRock’s
investments that does not impact BlackRock’s book value
management does not advocate that investors consider
or net income attributable to BlackRock. BlackRock’s
such non-GAAP financial measures in isolation from, or as
management does not advocate that investors consider
a substitute for, financial information prepared in
such non-GAAP financial measures in isolation from, or as
accordance with GAAP.
a substitute for, financial information prepared in
accordance with GAAP.
The Company presents investments, as adjusted, to
enable investors to understand the portion of investments
The Company presents investments, as adjusted, to
that is owned by the Company, net of NCI, as a gauge to
enable investors to understand the portion of investments
measure the impact of changes in net nonoperating
that is owned by the Company, net of NCI, as a gauge to
income (expense) on investments to net income (loss)
measure the impact of changes in net nonoperating
attributable to BlackRock.
income (expense) on investments to net income (loss)
attributable to BlackRock.
The Company further presents net “economic” investment
exposure, net of deferred cash compensation investments
The Company further presents net “economic” investment
exposure, net of deferred cash compensation investments
(in millions)
(in millions)
Investments, GAAP
Investments, GAAP
Investments held by CIPs
Investments held by CIPs
Net interest in CIPs(1)
Net interest in CIPs(1)
Investments, as adjusted
Investments, as adjusted
Investments related to deferred cash compensation plans
Investments related to deferred cash compensation plans
Hedged exposures
Hedged exposures
Federal Reserve Bank stock
Federal Reserve Bank stock
Carried interest
Carried interest
Total “economic” investment exposure(2)
Total “economic” investment exposure(2)
(1)
Total equity
Total equity
Total liabilities and equity
Total liabilities and equity
(1)
Total BlackRock, Inc. stockholders’ equity
Total BlackRock, Inc. stockholders’ equity
Noncontrolling interests
Noncontrolling interests
39,347
39,347
42
42
39,389
39,389
$ 60,279
$ 60,279
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
assets on behalf of its clients.
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
assets on behalf of its clients.
Amounts represent the impact of consolidating CIPs.
39,347
39,347
1,893
1,893
41,240
41,240
$ 123,211
$ 123,211
—
—
—
—
—
—
$ 60,656
$ 60,656
—
—
1,851
1,851
1,851
1,851
$ 2,276
$ 2,276
Amounts represent the impact of consolidating CIPs.
Amount includes property and equipment and other assets.
(in millions)
Amount includes property and equipment and other assets.
Amount includes approximately $4.3 billion of deferred income tax liabilities related to goodwill and intangibles. See Note 24, IncomeTaxes, in the notes to the consolidated financial statements
contained in Part II, Item 8 of this filing for more information.
Amount includes approximately $4.3 billion of deferred income tax liabilities related to goodwill and intangibles. See Note 24, IncomeTaxes, in the notes to the consolidated financial statements
contained in Part II, Item 8 of this filing for more information.
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.
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.
Amounts do not include investments in strategic minority investments included in other assets on the consolidated statements of financial condition.
(1)
(2)
Amounts do not include investments in strategic minority investments included in other assets on the consolidated statements of financial condition.
(2)
The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at
December 31, 2023 and 2022:
The following table represents the carrying value of the Company’s economic investment exposure, by asset type, at
December 31, 2023 and 2022:
The following discussion summarizes the significant
changes in assets and liabilities on a GAAP basis. Please
The following discussion summarizes the significant
see the consolidated statements of financial condition as
changes in assets and liabilities on a GAAP basis. Please
of December 31, 2023 and 2022 contained in Part II, Item
see the consolidated statements of financial condition as
8 of this filing. The discussion does not include changes
of December 31, 2023 and 2022 contained in Part II, Item
related to assets and liabilities that are equal and
8 of this filing. The discussion does not include changes
offsetting and have no impact on BlackRock’s
related to assets and liabilities that are equal and
stockholders’ equity.
offsetting and have no impact on BlackRock’s
stockholders’ equity.
Assets. Cash and cash equivalents at December 31, 2023
included $288 million of cash held by CIPs (see Liquidity
Assets. Cash and cash equivalents at December 31, 2023
and Capital Resources for details on the change in cash
included $288 million of cash held by CIPs (see Liquidity
and cash equivalents during 2023). Accounts receivable at
and Capital Resources for details on the change in cash
December 31, 2023 increased $652 million from
and cash equivalents during 2023). Accounts receivable at
December 31, 2022, primarily due to higher base fee and
December 31, 2023 increased $652 million from
technology services receivables. Investments increased
December 31, 2022, primarily due to higher base fee and
$2.3 billion from December 31, 2022 (for more
technology services receivables. Investments increased
information see Investments herein). Goodwill and
$2.3 billion from December 31, 2022 (for more
intangible assets increased $139 million from
information see Investments herein). Goodwill and
December 31, 2022, primarily due to the Kreos
intangible assets increased $139 million from
Transaction, partially offset by the amortization of
December 31, 2022, primarily due to the Kreos
intangible assets. Other assets increased $468 million
Transaction, partially offset by the amortization of
from December 31, 2022, primarily related to an increase
intangible assets. Other assets increased $468 million
in unit trust receivables (substantially offset by an
from December 31, 2022, primarily related to an increase
increase in unit trust payables recorded within other
in unit trust receivables (substantially offset by an
increase in unit trust payables recorded within other
liabilities), partially offset by a decrease in due from
related parties.
liabilities), partially offset by a decrease in due from
related parties.
Liabilities. Accrued compensation and benefits at
December 31, 2023 increased $121 million from
Liabilities. Accrued compensation and benefits at
December 31, 2022, primarily due to higher 2023
December 31, 2023 increased $121 million from
incentive compensation accruals. Other liabilities at
December 31, 2022, primarily due to higher 2023
December 31, 2023 increased $898 million from
incentive compensation accruals. Other liabilities at
December 31, 2022, primarily due to higher unit trust
December 31, 2023 increased $898 million from
payables (substantially offset by an increase in unit trust
December 31, 2022, primarily due to higher unit trust
receivables recorded within other assets) and an increase
payables (substantially offset by an increase in unit trust
in the deferred carried interest liability. Net deferred
receivables recorded within other assets) and an increase
income tax liabilities at December 31, 2023 increased
in the deferred carried interest liability. Net deferred
$125 million from December 31, 2022, primarily due to
income tax liabilities at December 31, 2023 increased
the effects of temporary differences associated with
$125 million from December 31, 2022, primarily due to
compensation and benefits and the Kreos Transaction,
the effects of temporary differences associated with
partially offset by capitalized costs and realized
compensation and benefits and the Kreos Transaction,
investment gains.
partially offset by capitalized costs and realized
investment gains.
Investments
Investments
The Company’s investments were $9.7 billion and
$7.5 billion at December 31, 2023 and 2022, respectively.
The Company’s investments were $9.7 billion and
Investments include CIPs accounted for as VIEs and VREs.
$7.5 billion at December 31, 2023 and 2022, respectively.
Management reviews BlackRock’s investments on an
Investments include CIPs accounted for as VIEs and VREs.
Management reviews BlackRock’s investments on an
(in millions)
Equity/Fixed income/Multi-asset(1)
Equity/Fixed income/Multi-asset(1)
Alternatives:
Alternatives:
Private equity
Private equity
Real assets
Real assets
Other alternatives(2)
Other alternatives(2)
Alternatives subtotal
Alternatives subtotal
Hedged exposures
Hedged exposures
Total “economic” investment exposure
Total “economic” investment exposure
(1)
Amounts include seed investments in equity, fixed income, and multi-asset mutual funds/strategies.
(1)
(2) Other alternatives primarily include co-investments in credit funds, direct hedge fund strategies, and hedge fund solutions.
Amounts include seed investments in equity, fixed income, and multi-asset mutual funds/strategies.
(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:
As adjusted investment activity for 2023 and 2022 was as follows:
(in millions)
(in millions)
Investments, as adjusted, beginning balance
Investments, as adjusted, beginning balance
Purchases/capital contributions
Purchases/capital contributions
Sales/maturities
Sales/maturities
Distributions(1)
Distributions(1)
Market appreciation(depreciation)/earnings from equity method investments
Market appreciation(depreciation)/earnings from equity method investments
Carried interest capital allocations/(distributions)
Carried interest capital allocations/(distributions)
Other(2)
Other(2)
Investments, as adjusted, ending balance
Investments, as adjusted, ending balance
(1)
Amount includes distributions representing return of capital and return on investments.
(1)
(2)
(2)
Amount includes distributions representing return of capital and return on investments.
Amount includes the impact of foreign exchange movements.
Amount includes the impact of foreign exchange movements.
December 31,
2023
December 31,
2023
$ 9,740
$ 9,740
(5,977)
(5,977)
4,111
4,111
7,874
7,874
(264)
(264)
(1,771)
(1,771)
(92)
(92)
(1,975)
(1,975)
$ 3,772
$ 3,772
December 31,
2022
December 31,
2022
$ 7,466
$ 7,466
(4,669)
(4,669)
3,622
3,622
6,419
6,419
—
—
(1,461)
(1,461)
(91)
(91)
(1,550)
(1,550)
$ 3,317
$ 3,317
December 31,
2023
December 31,
2023
$ 2,786
$ 2,786
December 31,
2022
December 31,
2022
$ 2,423
$ 2,423
1,491
1,491
509
509
757
757
2,757
2,757
(1,771)
(1,771)
$ 3,772
$ 3,772
2023
2023
$ 6,419
$ 6,419
1,403
1,403
(914)
(914)
(111)
(111)
607
607
425
425
45
45
$ 7,874
$ 7,874
1,207
1,207
368
368
780
780
2,355
2,355
(1,461)
(1,461)
$ 3,317
$ 3,317
2022
2022
$ 6,030
$ 6,030
1,532
1,532
(695)
(695)
(142)
(142)
(224)
(224)
(5)
(5)
(77)
(77)
$ 6,419
$ 6,419
60 BlackRock | 2023 Form 10-K
60 BlackRock | 2023 Form 10-K
LIQUIDITY A ND CAPITAL RESOURCES
LIQUIDITY A ND CAPITAL RESOURCES
BlackRock Cash Flows Excluding the Impact of CIPs
BlackRock Cash Flows Excluding the Impact of CIPs
The consolidated statements of cash flows include the
cash flows of the CIPs. The Company uses an adjusted
The consolidated statements of cash flows include the
cash flow statement, which excludes the impact of CIPs, as
cash flows of the CIPs. The Company uses an adjusted
a supplemental non-GAAP measure to assess liquidity and
cash flow statement, which excludes the impact of CIPs, as
capital requirements. The Company believes that its cash
a supplemental non-GAAP measure to assess liquidity and
capital requirements. The Company believes that its cash
The following table presents a reconciliation of the consolidated statements of cash flows presented on a GAAP basis to
the consolidated statements of cash flows, excluding the impact of the cash flows of CIPs:
The following table presents a reconciliation of the consolidated statements of cash flows presented on a GAAP basis to
the consolidated statements of cash flows, excluding the impact of the cash flows of CIPs:
flows, excluding the impact of the CIPs, provide investors
with useful information on the cash flows of BlackRock
flows, excluding the impact of the CIPs, provide investors
relating to its ability to fund additional operating,
with useful information on the cash flows of BlackRock
investing and financing activities. BlackRock’s
relating to its ability to fund additional operating,
management does not advocate that investors consider
investing and financing activities. BlackRock’s
such non-GAAP measures in isolation from, or as a
management does not advocate that investors consider
substitute for, its cash flows presented in accordance with
such non-GAAP measures in isolation from, or as a
GAAP.
substitute for, its cash flows presented in accordance with
GAAP.
(in millions)
(in millions)
Cash, cash equivalents and restricted cash, December 31, 2021
Cash, cash equivalents and restricted cash, December 31, 2021
Net cash provided by/(used in) operating activities
Net cash provided by/(used in) operating activities
Net cash provided by/(used in) investing activities
Net cash provided by/(used in) investing activities
Net cash provided by/(used in) financing activities
Net cash provided by/(used in) financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, December 31, 2022
Cash, cash equivalents and restricted cash, December 31, 2022
Net cash provided by/(used in) operating activities
Net cash provided by/(used in) operating activities
Net cash provided by/(used in) investing activities
Net cash provided by/(used in) investing activities
Net cash provided by/(used in) financing activities
Net cash provided by/(used in) financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, December 31, 2023
Cash, cash equivalents and restricted cash, December 31, 2023
GAAP
Basis
GAAP
Basis
$ 9,340
$ 9,340
4,956
4,956
(1,130)
(1,130)
(5,442)
(5,442)
(291)
(291)
(1,907)
(1,907)
$ 7,433
$ 7,433
4,165
4,165
(959)
(959)
(1,992)
(1,992)
106
106
1,320
1,320
$ 8,753
$ 8,753
Impact on
Cash Flows
Impact on
of CIPs
Cash Flows
of CIPs
$
$
$
$
308
308
(712)
(712)
77
77
592
592
—
—
(43)
(43)
265
265
(1,519)
(1,519)
(26)
(26)
1,568
1,568
—
—
23
23
$ 288
$ 288
Cash Flows
Excluding
Cash Flows
Impact of
Excluding
CIPs
Impact of
CIPs
$ 9,032
$ 9,032
5,668
5,668
(1,207)
(1,207)
(6,034)
(6,034)
(291)
(291)
(1,864)
(1,864)
$ 7,168
$ 7,168
5,684
5,684
(933)
(933)
(3,560)
(3,560)
106
106
1,297
1,297
$ 8,465
$ 8,465
Sources of BlackRock’s operating cash primarily include
base fees and securities lending revenue, performance
Sources of BlackRock’s operating cash primarily include
fees, technology services revenue, advisory and other
base fees and securities lending revenue, performance
revenue and distribution fees. BlackRock uses its cash to
fees, technology services revenue, advisory and other
pay all operating expenses, interest and principal on
revenue and distribution fees. BlackRock uses its cash to
borrowings, income taxes, dividends and repurchases of
pay all operating expenses, interest and principal on
the Company’s stock, acquisitions, capital expenditures
borrowings, income taxes, dividends and repurchases of
and purchases of co-investments and seed investments.
the Company’s stock, acquisitions, capital expenditures
and purchases of co-investments and seed investments.
For details of the Company’s GAAP cash flows from
operating, investing and financing activities, see the
For details of the Company’s GAAP cash flows from
consolidated statements of cash flows contained in Part II,
operating, investing and financing activities, see the
Item 8 of this filing.
consolidated statements of cash flows contained in Part II,
Item 8 of this filing.
Cash flows provided by/(used in) operating activities,
excluding the impact of CIPs, primarily include the receipt
Cash flows provided by/(used in) operating activities,
of base fees, securities lending revenue, performance fees
excluding the impact of CIPs, primarily include the receipt
and technology services revenue, offset by the payment of
of base fees, securities lending revenue, performance fees
operating expenses incurred in the normal course of
and technology services revenue, offset by the payment of
business, including year-end incentive and deferred cash
operating expenses incurred in the normal course of
compensation accrued during prior years, and income tax
business, including year-end incentive and deferred cash
payments.
compensation accrued during prior years, and income tax
payments.
Cash flows used in investing activities, excluding the
impact of CIPs, for 2023 were $933 million and primarily
Cash flows used in investing activities, excluding the
reflected $446 million of net investment purchases,
impact of CIPs, for 2023 were $933 million and primarily
$344 million of purchases of property and equipment and
reflected $446 million of net investment purchases,
$189 million related to the Kreos Transaction.
$344 million of purchases of property and equipment and
$189 million related to the Kreos Transaction.
Cash flows used in financing activities, excluding the
impact of CIPs, for 2023 were $3.6 billion, primarily
Cash flows used in financing activities, excluding the
resulting from $3.0 billion of cash dividend payments, and
impact of CIPs, for 2023 were $3.6 billion, primarily
$1.9 billion of share repurchases, including $1.5 billion in
resulting from $3.0 billion of cash dividend payments, and
open market transactions and $0.4 billion of employee tax
$1.9 billion of share repurchases, including $1.5 billion in
open market transactions and $0.4 billion of employee tax
withholdings related to employee stock transactions,
partially offset by $1.2 billion of proceeds from long-term
withholdings related to employee stock transactions,
borrowings.
partially offset by $1.2 billion of proceeds from long-term
borrowings.
The Company manages its financial condition and funding to
maintain appropriate liquidity for the business. Management
The Company manages its financial condition and funding to
believes that the Company’s liquid assets, continuing cash
maintain appropriate liquidity for the business. Management
flows from operations, borrowing capacity under the
believes that the Company’s liquid assets, continuing cash
Company’s existing revolving credit facility and uncommitted
flows from operations, borrowing capacity under the
commercial paper private placement program, provide
Company’s existing revolving credit facility and uncommitted
sufficient resources to meet the Company’s short-term and
commercial paper private placement program, provide
long-term cash needs, including operating, debt and other
sufficient resources to meet the Company’s short-term and
obligations as they come due and anticipated future capital
long-term cash needs, including operating, debt and other
requirements. Liquidity resources at December 31, 2023 and
obligations as they come due and anticipated future capital
2022 were as follows:
requirements. Liquidity resources at December 31, 2023 and
2022 were as follows:
(in millions)
(in millions)
Cash and cash equivalents(1)
Cash and cash equivalents held
Cash and cash equivalents(1)
by CIPs(2)
Cash and cash equivalents held
by CIPs(2)
Subtotal(3)
Subtotal(3)
Credit facility — undrawn
Credit facility — undrawn
Total liquidity resources
Total liquidity resources
Amounts exclude restricted cash.
December 31,
2023
December 31,
2023
$ 8,736
$ 8,736
(288)
(288)
8,448
8,448
5,000
5,000
$ 13,448
$ 13,448
December 31,
2022
December 31,
2022
$ 7,416
$ 7,416
(265)
(265)
7,151
7,151
4,700
4,700
$ 11,851
$ 11,851
(1)
(1)
(2)
(2)
(3)
(3)
Amounts exclude restricted cash.
The Company cannot readily access such cash and cash equivalents to use in its operating
activities.
The Company cannot readily access such cash and cash equivalents to use in its operating
activities.
The percentage of cash and cash equivalents held by the Company’s US subsidiaries was
approximately 50% at both December 31, 2023 and 2022. See NetCapital
The percentage of cash and cash equivalents held by the Company’s US subsidiaries was
Requirementsherein for more information on net capital requirements in certain
approximately 50% at both December 31, 2023 and 2022. See NetCapital
regulated subsidiaries.
Requirementsherein for more information on net capital requirements in certain
regulated subsidiaries.
Total liquidity resources increased $1.6 billion during
2023, primarily reflecting cash flows from other operating
Total liquidity resources increased $1.6 billion during
activities, $1.2 billion of proceeds from long-term
2023, primarily reflecting cash flows from other operating
activities, $1.2 billion of proceeds from long-term
borrowings and a $300 million increase in the aggregate
commitment amount under the credit facility, partially
borrowings and a $300 million increase in the aggregate
offset by cash dividend payments of $3.0 billion, share
commitment amount under the credit facility, partially
repurchases of $1.9 billion and $189 million related to the
offset by cash dividend payments of $3.0 billion, share
Kreos Transaction.
repurchases of $1.9 billion and $189 million related to the
Kreos Transaction.
A significant portion of the Company’s $7.9 billion of
investments, as adjusted, is illiquid in nature and, as such,
A significant portion of the Company’s $7.9 billion of
cannot be readily convertible to cash.
investments, as adjusted, is illiquid in nature and, as such,
cannot be readily convertible to cash.
Share Repurchases. In January 2023, the Company
announced that the Board of Directors authorized the
Share Repurchases. In January 2023, the Company
repurchase of an additional seven million shares under
announced that the Board of Directors authorized the
the Company’s existing share repurchase program for a
repurchase of an additional seven million shares under
total of up to approximately 7.9 million shares of
the Company’s existing share repurchase program for a
BlackRock common stock. The timing and actual number
total of up to approximately 7.9 million shares of
of shares repurchased will depend on a variety of factors,
BlackRock common stock. The timing and actual number
including legal limitations, price and market conditions.
of shares repurchased will depend on a variety of factors,
including legal limitations, price and market conditions.
During 2023, the Company repurchased 2.2 million
common shares under the Company’s existing share
During 2023, the Company repurchased 2.2 million
repurchase program for approximately $1.5 billion. At
common shares under the Company’s existing share
December 31, 2023, there were approximately 5.7 million
repurchase program for approximately $1.5 billion. At
shares still authorized to be repurchased under the
December 31, 2023, there were approximately 5.7 million
program.
shares still authorized to be repurchased under the
program.
Net Capital Requirements. The Company is required to
maintain net capital in certain regulated subsidiaries
Net Capital Requirements. The Company is required to
within a number of jurisdictions, which is partially
maintain net capital in certain regulated subsidiaries
maintained by retaining cash and cash equivalent
within a number of jurisdictions, which is partially
investments in those subsidiaries or jurisdictions. As a
maintained by retaining cash and cash equivalent
result, such subsidiaries of the Company may be restricted
investments in those subsidiaries or jurisdictions. As a
in their ability to transfer cash between different
result, such subsidiaries of the Company may be restricted
jurisdictions and to their parents. Additionally, transfers of
in their ability to transfer cash between different
cash between international jurisdictions may have adverse
jurisdictions and to their parents. Additionally, transfers of
tax consequences that could discourage such transfers.
cash between international jurisdictions may have adverse
tax consequences that could discourage such transfers.
BlackRock Institutional Trust Company, N.A. (“BTC”) is
chartered as a national bank that does not accept deposits
BlackRock Institutional Trust Company, N.A. (“BTC”) is
or make commercial loans and whose powers are limited
chartered as a national bank that does not accept deposits
to trust and other fiduciary activities. BTC provides
or make commercial loans and whose powers are limited
investment management and other fiduciary services,
to trust and other fiduciary activities. BTC provides
including investment advisory and securities lending
investment management and other fiduciary services,
agency services, to institutional clients. BTC is subject to
including investment advisory and securities lending
regulatory capital and liquid asset requirements
agency services, to institutional clients. BTC is subject to
administered by the US Office of the Comptroller of the
regulatory capital and liquid asset requirements
Currency.
administered by the US Office of the Comptroller of the
Currency.
At December 31, 2023 and 2022, the Company was
required to maintain approximately $1.8 billion and
At December 31, 2023 and 2022, the Company was
required to maintain approximately $1.8 billion and
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$2.2 billion, respectively, in net capital in certain regulated
subsidiaries, including BTC, entities regulated by the
$2.2 billion, respectively, in net capital in certain regulated
Financial Conduct Authority and Prudential Regulation
subsidiaries, including BTC, entities regulated by the
Authority in the UK, and the Company’s broker-dealers.
Financial Conduct Authority and Prudential Regulation
The Company was in compliance with all applicable
Authority in the UK, and the Company’s broker-dealers.
regulatory net capital requirements.
The Company was in compliance with all applicable
regulatory net capital requirements.
Undistributed Earnings of Foreign Subsidiaries. As a
result of the 2017 Tax Cuts and Jobs Act and the one-time
Undistributed Earnings of Foreign Subsidiaries. As a
mandatory deemed repatriation tax on untaxed
result of the 2017 Tax Cuts and Jobs Act and the one-time
accumulated foreign earnings, US income taxes were
mandatory deemed repatriation tax on untaxed
provided on the Company’s undistributed foreign
accumulated foreign earnings, US income taxes were
earnings. The financial statement basis in excess of tax
provided on the Company’s undistributed foreign
basis of its foreign subsidiaries remains indefinitely
earnings. The financial statement basis in excess of tax
reinvested in foreign operations. The Company will
basis of its foreign subsidiaries remains indefinitely
continue to evaluate its capital management plans.
reinvested in foreign operations. The Company will
continue to evaluate its capital management plans.
Short-Term Borrowings
Short-Term Borrowings
2023 Revolving Credit Facility. The Company maintains an
unsecured revolving credit facility which is available for
2023 Revolving Credit Facility. The Company maintains an
working capital and general corporate purposes (the
unsecured revolving credit facility which is available for
“2023 credit facility”). In March 2023, the 2023 credit
working capital and general corporate purposes (the
facility was amended to, among other things, (1) increase
“2023 credit facility”). In March 2023, the 2023 credit
the aggregate commitment amount by $300 million to
facility was amended to, among other things, (1) increase
$5 billion, (2) extend the maturity date to March 2028 and
the aggregate commitment amount by $300 million to
(3) change the secured overnight financing rate (“SOFR”)
$5 billion, (2) extend the maturity date to March 2028 and
adjustment to 10 bps per annum for all SOFR-based
(3) change the secured overnight financing rate (“SOFR”)
borrowings. The 2023 credit facility permits the Company
adjustment to 10 bps per annum for all SOFR-based
to request up to an additional $1.0 billion of borrowing
borrowings. The 2023 credit facility permits the Company
capacity, subject to lender credit approval, which could
to request up to an additional $1.0 billion of borrowing
increase the overall size of the 2023 credit facility to an
capacity, subject to lender credit approval, which could
aggregate principal amount of up to $6 billion. The 2023
increase the overall size of the 2023 credit facility to an
credit facility requires the Company not to exceed a
aggregate principal amount of up to $6 billion. The 2023
maximum leverage ratio (ratio of net debt to earnings
credit facility requires the Company not to exceed a
before interest, taxes, depreciation and amortization,
maximum leverage ratio (ratio of net debt to earnings
where net debt equals total debt less unrestricted cash) of
before interest, taxes, depreciation and amortization,
3 to 1, which was satisfied with a ratio of less than 1 to 1 at
where net debt equals total debt less unrestricted cash) of
December 31, 2023. At December 31, 2023, the Company
3 to 1, which was satisfied with a ratio of less than 1 to 1 at
had no amount outstanding under the 2023 credit facility.
December 31, 2023. At December 31, 2023, the Company
had no amount outstanding under the 2023 credit facility.
Commercial Paper Program. The Company can issue
unsecured commercial paper notes (the “CP Notes”) on a
Commercial Paper Program. The Company can issue
private-placement basis up to a maximum aggregate
unsecured commercial paper notes (the “CP Notes”) on a
amount outstanding at any time of $4 billion. The
private-placement basis up to a maximum aggregate
commercial paper program is currently supported by the
amount outstanding at any time of $4 billion. The
2023 credit facility. At December 31, 2023, BlackRock had
commercial paper program is currently supported by the
no CP Notes outstanding.
2023 credit facility. At December 31, 2023, BlackRock had
no CP Notes outstanding.
Long-Term Borrowings
Long-Term Borrowings
The carrying value of long-term borrowings at December 31, 2023 included the following:
The carrying value of long-term borrowings at December 31, 2023 included the following:
Maturity Amount
(in millions)
Maturity Amount
$ 1,000
$ 1,000
772
772
700
700
1,000
1,000
1,000
1,000
1,250
1,250
1,000
1,000
1,250
1,250
$ 7,972
$ 7,972
(in millions)
3.50% Notes
3.50% Notes
1.25% Notes(1)
1.25% Notes(1)
3.20% Notes
3.20% Notes
3.25% Notes
3.25% Notes
2.40% Notes
2.40% Notes
1.90% Notes
1.90% Notes
2.10% Notes
2.10% Notes
4.75% Notes
4.75% Notes
Total Long-term Borrowings
Total Long-term Borrowings
(1)
The carrying value of the 1.25% Notes is calculated using the EUR/USD foreign exchange rate as of December 31, 2023.
(1)
The carrying value of the 1.25% Notes is calculated using the EUR/USD foreign exchange rate as of December 31, 2023.
Carrying Value
Carrying Value
$ 1,000
$ 1,000
771
771
698
698
993
993
996
996
1,242
1,242
988
988
1,230
1,230
$ 7,918
$ 7,918
Maturity
Maturity
March 2024
March 2024
May 2025
May 2025
March 2027
March 2027
April 2029
April 2029
April 2030
April 2030
January 2031
January 2031
February 2032
February 2032
May 2033
May 2033
62 BlackRock | 2023 Form 10-K
62 BlackRock | 2023 Form 10-K
In May 2023, the Company issued $1.25 billion in
aggregate principal amount of 4.75% senior unsecured
In May 2023, the Company issued $1.25 billion in
notes maturing on May 25, 2033 (the “2033 Notes”). The
aggregate principal amount of 4.75% senior unsecured
net proceeds of the 2033 Notes are being used for general
notes maturing on May 25, 2033 (the “2033 Notes”). The
corporate purposes, which may include the future
net proceeds of the 2033 Notes are being used for general
repayment of all or a portion of the $1.0 billion 3.50%
corporate purposes, which may include the future
Notes due March 2024. Interest of approximately
repayment of all or a portion of the $1.0 billion 3.50%
$59 million per year is payable semi-annually on May 25
Notes due March 2024. Interest of approximately
and November 25 of each year, commencing on
$59 million per year is payable semi-annually on May 25
November 25, 2023. The 2033 Notes may be redeemed at
and November 25 of each year, commencing on
the option of the Company, in whole or in part, at any time
November 25, 2023. The 2033 Notes may be redeemed at
prior to February 25, 2033 at a “make-whole” redemption
the option of the Company, in whole or in part, at any time
price, or thereafter at 100% of the principal amount of the
prior to February 25, 2033 at a “make-whole” redemption
2033 Notes, in each case plus accrued but unpaid
price, or thereafter at 100% of the principal amount of the
interest. The unamortized discount and debt issuance
2033 Notes, in each case plus accrued but unpaid
costs are being amortized over the remaining term of the
interest. The unamortized discount and debt issuance
2033 Notes.
costs are being amortized over the remaining term of the
2033 Notes.
For more information on Company’s borrowings, see
Note 14, Borrowings, in the notes to the consolidated
For more information on Company’s borrowings, see
financial statements contained in Part II, Item 8 of this
Note 14, Borrowings, in the notes to the consolidated
filing.
financial statements contained in Part II, Item 8 of this
filing.
Contractual Obligations , Commitments and
Cont ingencies
Contractual Obligations , Commitments and
Cont ingencies
The Company’s material contractual obligations,
commitments and contingencies at December 31, 2023
The Company’s material contractual obligations,
include borrowings, operating leases, investment
commitments and contingencies at December 31, 2023
commitments, compensation and benefits obligations,
include borrowings, operating leases, investment
and purchase obligations.
commitments, compensation and benefits obligations,
and purchase obligations.
Borrowings. At December 31, 2023, the Company had
outstanding borrowings with varying maturities for an
Borrowings. At December 31, 2023, the Company had
aggregate principal amount of $8.0 billion, of which
outstanding borrowings with varying maturities for an
$1.0 billion is payable within 12 months. Future interest
aggregate principal amount of $8.0 billion, of which
payments associated with these borrowings total
$1.0 billion is payable within 12 months. Future interest
$1.4 billion, of which $210 million is payable within 12
payments associated with these borrowings total
months. See Note 14, Borrowings, in the notes to the
$1.4 billion, of which $210 million is payable within 12
consolidated financial statements contained in Part II,
months. See Note 14, Borrowings, in the notes to the
Item 8 of this filing.
consolidated financial statements contained in Part II,
Item 8 of this filing.
Operating Leases. The Company leases its primary office
locations under agreements that expire on varying dates
Operating Leases. The Company leases its primary office
through 2043. At December 31, 2023, the Company had
locations under agreements that expire on varying dates
operating lease payment obligations of approximately
through 2043. At December 31, 2023, the Company had
$2.2 billion, of which $180 million is payable within 12
operating lease payment obligations of approximately
months. See Note 12, Leases, in the notes to the
$2.2 billion, of which $180 million is payable within 12
consolidated financial statements contained in Part II,
months. See Note 12, Leases, in the notes to the
Item 8 of this filing.
consolidated financial statements contained in Part II,
Item 8 of this filing.
Investment Commitments. At December 31, 2023, the
Company had $738 million of various capital
Investment Commitments. At December 31, 2023, the
commitments to fund sponsored investment products,
Company had $738 million of various capital
including CIPs. These products include various illiquid
commitments to fund sponsored investment products,
alternative products, including private equity funds and
including CIPs. These products include various illiquid
real assets funds, and opportunistic funds. This amount
alternative products, including private equity funds and
excludes additional commitments made by consolidated
real assets funds, and opportunistic funds. This amount
funds of funds to underlying third-party funds as third-
excludes additional commitments made by consolidated
party noncontrolling interest holders have the legal
funds of funds to underlying third-party funds as third-
obligation to fund the respective commitments of such
party noncontrolling interest holders have the legal
funds of funds. Generally, the timing of the funding of
obligation to fund the respective commitments of such
these commitments is unknown and the commitments are
funds of funds. Generally, the timing of the funding of
callable on demand at any time prior to the expiration of
these commitments is unknown and the commitments are
the commitment. These unfunded commitments are not
callable on demand at any time prior to the expiration of
recorded on the consolidated statements of financial
the commitment. These unfunded commitments are not
condition. These commitments do not include potential
recorded on the consolidated statements of financial
condition. These commitments do not include potential
future commitments approved by the Company that are
not yet legally binding. The Company intends to make
future commitments approved by the Company that are
additional capital commitments from time to time to fund
not yet legally binding. The Company intends to make
additional investment products for, and with, its clients.
additional capital commitments from time to time to fund
additional investment products for, and with, its clients.
Compensation and Benefit Obligations. The Company has
various compensation and benefit obligations, including
Compensation and Benefit Obligations. The Company has
bonuses, commissions and incentive payments payable,
various compensation and benefit obligations, including
defined contribution plan matching contribution
bonuses, commissions and incentive payments payable,
obligations, and deferred compensation arrangements.
defined contribution plan matching contribution
Accrued compensation and benefits at December 31,
obligations, and deferred compensation arrangements.
2023 totaled $2.4 billion and included annual incentive
Accrued compensation and benefits at December 31,
compensation of $1.5 billion, deferred compensation of
2023 totaled $2.4 billion and included annual incentive
$0.5 billion and other compensation and benefits related
compensation of $1.5 billion, deferred compensation of
obligations of $0.4 billion. Substantially all of the incentive
$0.5 billion and other compensation and benefits related
compensation liability was paid in the first quarter of
obligations of $0.4 billion. Substantially all of the incentive
2024, while the deferred compensation obligations are
compensation liability was paid in the first quarter of
payable over various periods, with the majority payable
2024, while the deferred compensation obligations are
over periods of up to three years.
payable over various periods, with the majority payable
over periods of up to three years.
Purchase Obligations. In the ordinary course of business,
BlackRock enters into contracts or purchase obligations
Purchase Obligations. In the ordinary course of business,
with third parties whereby the third parties provide
BlackRock enters into contracts or purchase obligations
services to or on behalf of BlackRock. Purchase
with third parties whereby the third parties provide
obligations represent executory contracts, which are either
services to or on behalf of BlackRock. Purchase
noncancelable or cancelable with a penalty. At
obligations represent executory contracts, which are either
December 31, 2023, the Company’s obligations primarily
noncancelable or cancelable with a penalty. At
reflected standard service contracts for market data,
December 31, 2023, the Company’s obligations primarily
technology, office-related services, marketing and
reflected standard service contracts for market data,
promotional services, and obligations for equipment.
technology, office-related services, marketing and
Purchase obligations are recorded on the consolidated
promotional services, and obligations for equipment.
financial statements when services are provided and, as
Purchase obligations are recorded on the consolidated
such, obligations for services and equipment not received
financial statements when services are provided and, as
are not included in the consolidated statement of financial
such, obligations for services and equipment not received
condition at December 31, 2023. At December 31, 2023,
are not included in the consolidated statement of financial
the Company had purchase obligations of approximately
condition at December 31, 2023. At December 31, 2023,
$735 million, of which $280 million is payable within
the Company had purchase obligations of approximately
12 months.
$735 million, of which $280 million is payable within
12 months.
CRITICAL ACCOUNTING POLICIES AND
ESTIMATES
CRITICAL ACCOUNTING POLICIES AND
ESTIMATES
The preparation of consolidated financial statements in
conformity with GAAP requires management to make
The preparation of consolidated financial statements in
estimates and assumptions that affect the reported
conformity with GAAP requires management to make
amounts of assets and liabilities and disclosure of
estimates and assumptions that affect the reported
contingent assets and liabilities at the date of the
amounts of assets and liabilities and disclosure of
consolidated financial statements and the reported
contingent assets and liabilities at the date of the
amounts of revenue and expense during the reporting
consolidated financial statements and the reported
periods. Actual results could differ significantly from those
amounts of revenue and expense during the reporting
estimates. These estimates, judgments and assumptions
periods. Actual results could differ significantly from those
are affected by the Company’s application of accounting
estimates. These estimates, judgments and assumptions
policies. Management considers the following accounting
are affected by the Company’s application of accounting
policies and estimates critical to understanding the
policies. Management considers the following accounting
consolidated financial statements. These policies and
policies and estimates critical to understanding the
estimates are considered critical because they had a
consolidated financial statements. These policies and
material impact, or are reasonably likely to have a material
estimates are considered critical because they had a
impact on the Company’s consolidated financial
material impact, or are reasonably likely to have a material
statements and because they require management to
impact on the Company’s consolidated financial
make significant judgments, assumptions or estimates.
statements and because they require management to
For a summary of these and additional accounting
make significant judgments, assumptions or estimates.
policies see Note 2, Significant Accounting Policies, in the
For a summary of these and additional accounting
notes to the consolidated financial statements included in
policies see Note 2, Significant Accounting Policies, in the
Part II, Item 8 of this filing.
notes to the consolidated financial statements included in
Part II, Item 8 of this filing.
Consolidation
Consolidation
The Company consolidates entities in which the Company
has a controlling financial interest. The company has a
The Company consolidates entities in which the Company
controlling financial interest when it owns a majority of the
has a controlling financial interest. The company has a
VRE or is a primary beneficiary (“PB”) of a VIE. Assessing
controlling financial interest when it owns a majority of the
whether an entity is a VIE or a VRE involves judgment and
VRE or is a primary beneficiary (“PB”) of a VIE. Assessing
analysis on a structure-by-structure basis. Factors
whether an entity is a VIE or a VRE involves judgment and
considered in this assessment include the entity’s legal
analysis on a structure-by-structure basis. Factors
organization, the entity’s capital structure, the rights of
considered in this assessment include the entity’s legal
equity investment holders, the Company’s contractual
organization, the entity’s capital structure, the rights of
involvement with and economic interest in the entity and
equity investment holders, the Company’s contractual
any related party or de facto agent implications of the
involvement with and economic interest in the entity and
Company’s involvement with the entity. Entities that are
any related party or de facto agent implications of the
determined to be VREs are consolidated if the Company
Company’s involvement with the entity. Entities that are
can exert absolute control over the financial and operating
determined to be VREs are consolidated if the Company
policies of the investee, which generally exists if there is
can exert absolute control over the financial and operating
greater than 50% voting interest. Entities that are
policies of the investee, which generally exists if there is
determined to be VIEs are consolidated if the Company is
greater than 50% voting interest. Entities that are
the PB of the entity. BlackRock is deemed to be the PB of a
determined to be VIEs are consolidated if the Company is
VIE if it (1) has the power to direct the activities that most
the PB of the entity. BlackRock is deemed to be the PB of a
significantly impact the entities’ economic performance
VIE if it (1) has the power to direct the activities that most
and (2) has the obligation to absorb losses or the right to
significantly impact the entities’ economic performance
receive benefits that potentially could be significant to the
and (2) has the obligation to absorb losses or the right to
VIE. There is judgment involved in assessing whether the
receive benefits that potentially could be significant to the
Company is the PB of a VIE. In addition, the Company’s
VIE. There is judgment involved in assessing whether the
ownership interest in VIEs is subject to variability and is
Company is the PB of a VIE. In addition, the Company’s
impacted by actions of other investors such as on-going
ownership interest in VIEs is subject to variability and is
redemptions and contributions. The Company generally
impacted by actions of other investors such as on-going
consolidates VIEs in which it holds an economic interest of
redemptions and contributions. The Company generally
10% or greater and deconsolidates such VIEs once its
consolidates VIEs in which it holds an economic interest of
economic interest falls below 10%. As of December 31,
10% or greater and deconsolidates such VIEs once its
2023, the Company was deemed to be the PB of
economic interest falls below 10%. As of December 31,
approximately 100 VIEs. See Note 5, Consolidated
2023, the Company was deemed to be the PB of
Sponsored Investment Products, in the notes to the
approximately 100 VIEs. See Note 5, Consolidated
consolidated financial statements contained in Part II,
Sponsored Investment Products, in the notes to the
Item 8 of this filing for more information.
consolidated financial statements contained in Part II,
Item 8 of this filing for more information.
Fair Value Measurements
Fair Value Measurements
The Company’s assessment of the significance of a
particular input to the fair value measurement according
The Company’s assessment of the significance of a
to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as
particular input to the fair value measurement according
defined) in its entirety requires judgment and considers
to the fair value hierarchy (i.e., Level 1, 2 and 3 inputs, as
factors specific to the financial instrument. See Note 2,
defined) in its entirety requires judgment and considers
Significant Accounting Policies, and Note 7, Fair Value
factors specific to the financial instrument. See Note 2,
Disclosures, in the consolidated financial statements
Significant Accounting Policies, and Note 7, Fair Value
contained in Part II, Item 8 of this filing for more
Disclosures, in the consolidated financial statements
information on fair value measurements.
contained in Part II, Item 8 of this filing for more
information on fair value measurements.
Changes in Valuation. Changes in value on $7.1 billion of
investments will impact the Company’s nonoperating
Changes in Valuation. Changes in value on $7.1 billion of
income (expense), $709 million are held at cost or
investments will impact the Company’s nonoperating
amortized cost and the remaining $2.0 billion relates to
income (expense), $709 million are held at cost or
carried interest, which will not impact nonoperating
amortized cost and the remaining $2.0 billion relates to
income (expense). At December 31, 2023, changes in fair
carried interest, which will not impact nonoperating
value of $4.1 billion of CIPs will impact BlackRock’s net
income (expense). At December 31, 2023, changes in fair
income (loss) attributable to NCI on the consolidated
value of $4.1 billion of CIPs will impact BlackRock’s net
statements of income. BlackRock’s net exposure to
income (loss) attributable to NCI on the consolidated
changes in fair value of CIPs was $2.2 billion.
statements of income. BlackRock’s net exposure to
changes in fair value of CIPs was $2.2 billion.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill. Goodwill represents the cost of a business
acquisition in excess of the fair value of the net assets
Goodwill. Goodwill represents the cost of a business
acquired. The Company assesses its goodwill for
acquisition in excess of the fair value of the net assets
impairment at least annually, considering such factors as
acquired. The Company assesses its goodwill for
the book value and the market capitalization of the
impairment at least annually, considering such factors as
the book value and the market capitalization of the
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Company. The impairment assessment performed as of
July 31, 2023 indicated no impairment charge was
Company. The impairment assessment performed as of
required. The Company continues to monitor its book
July 31, 2023 indicated no impairment charge was
value per share compared with closing prices of its
required. The Company continues to monitor its book
common stock for potential indicators of impairment. At
value per share compared with closing prices of its
December 31, 2023, the Company’s common stock closed
common stock for potential indicators of impairment. At
at $811.80, which exceeded its book value of $264.96 per
December 31, 2023, the Company’s common stock closed
share.
at $811.80, which exceeded its book value of $264.96 per
share.
Indefinite-lived and finite-lived intangibles. Indefinite-lived
intangible assets represent the value of advisory contracts
Indefinite-lived and finite-lived intangibles. Indefinite-lived
acquired in business acquisitions to manage AUM in
intangible assets represent the value of advisory contracts
proprietary open-end investment funds, collective trust
acquired in business acquisitions to manage AUM in
funds and certain other commingled products without a
proprietary open-end investment funds, collective trust
specified termination date. The assignment of indefinite
funds and certain other commingled products without a
lives to such contracts primarily is based upon the
specified termination date. The assignment of indefinite
following: (1) the assumption that there is no foreseeable
lives to such contracts primarily is based upon the
limit on the contract period to manage these products;
following: (1) the assumption that there is no foreseeable
(2) the Company expects to, and has the ability to,
limit on the contract period to manage these products;
continue to operate these products indefinitely; (3) the
(2) the Company expects to, and has the ability to,
products have multiple investors and are not reliant on a
continue to operate these products indefinitely; (3) the
single investor or small group of investors for their
products have multiple investors and are not reliant on a
continued operation; (4) current competitive factors and
single investor or small group of investors for their
economic conditions do not indicate a finite life; and
continued operation; (4) current competitive factors and
(5) there is a high likelihood of continued renewal based
economic conditions do not indicate a finite life; and
on historical experience. In addition, trade names/
(5) there is a high likelihood of continued renewal based
trademarks are considered indefinite-lived intangibles if
on historical experience. In addition, trade names/
they are expected to generate cash flows indefinitely.
trademarks are considered indefinite-lived intangibles if
Indefinite-lived intangible assets are not amortized.
they are expected to generate cash flows indefinitely.
Indefinite-lived intangible assets are not amortized.
Finite-lived intangible assets represent finite-lived
investor/customer relationships, technology related
Finite-lived intangible assets represent finite-lived
assets, and management contracts, which relate to
investor/customer relationships, technology related
acquired separate accounts and funds, that are expected
assets, and management contracts, which relate to
to contribute to the future cash flows of the Company for a
acquired separate accounts and funds, that are expected
specified period of time. Finite-lived intangible assets are
to contribute to the future cash flows of the Company for a
amortized over their remaining expected useful lives,
specified period of time. Finite-lived intangible assets are
which, at December 31, 2023 ranged from approximately
amortized over their remaining expected useful lives,
1 to 10 years with a weighted-average remaining
which, at December 31, 2023 ranged from approximately
estimated useful life of approximately 5 years.
1 to 10 years with a weighted-average remaining
estimated useful life of approximately 5 years.
The Company performs assessments to determine if any
intangible assets are impaired at least annually, as of
The Company performs assessments to determine if any
July 31, or more frequently if events or changes in
intangible assets are impaired at least annually, as of
circumstances indicate that it is more likely than not that
July 31, or more frequently if events or changes in
the intangible asset might be impaired.
circumstances indicate that it is more likely than not that
the intangible asset might be impaired.
In evaluating whether it is more likely than not that the fair
value of indefinite-lived intangibles is less than its
In evaluating whether it is more likely than not that the fair
carrying value, BlackRock performed certain quantitative
value of indefinite-lived intangibles is less than its
assessments and assessed various significant
carrying value, BlackRock performed certain quantitative
quantitative factors including AUM, revenue basis points,
assessments and assessed various significant
projected AUM growth rates, operating margins, tax rates
quantitative factors including AUM, revenue basis points,
and discount rates. In addition, the Company considered
projected AUM growth rates, operating margins, tax rates
other qualitative factors including: (1) macroeconomic
and discount rates. In addition, the Company considered
conditions such as a deterioration in general economic
other qualitative factors including: (1) macroeconomic
conditions, limitations on accessing capital, fluctuations
conditions such as a deterioration in general economic
in foreign exchange rates, or other developments in equity
conditions, limitations on accessing capital, fluctuations
and credit markets; (2) industry and market
in foreign exchange rates, or other developments in equity
considerations such as a deterioration in the environment
and credit markets; (2) industry and market
in which the Company operates, an increased competitive
considerations such as a deterioration in the environment
environment, a decline in market-dependent multiples or
in which the Company operates, an increased competitive
metrics, a change in the market for an entity’s services, or
environment, a decline in market-dependent multiples or
regulatory, legal or political developments; and
metrics, a change in the market for an entity’s services, or
(3) Company-specific events, such as a change in
regulatory, legal or political developments; and
management or key personnel, overall financial
(3) Company-specific events, such as a change in
performance and litigation that could affect significant
management or key personnel, overall financial
inputs used to determine the fair value of the indefinite-
performance and litigation that could affect significant
inputs used to determine the fair value of the indefinite-
64 BlackRock | 2023 Form 10-K
64 BlackRock | 2023 Form 10-K
lived intangible asset. If an indefinite-lived intangible is
determined to be more likely than not impaired, then the
lived intangible asset. If an indefinite-lived intangible is
fair value of the asset, which is generally determined using
determined to be more likely than not impaired, then the
an income approach, is compared with its carrying value
fair value of the asset, which is generally determined using
and any excess of the carrying value over the fair value
an income approach, is compared with its carrying value
would be recognized as an expense in the period in which
and any excess of the carrying value over the fair value
the impairment occurs.
would be recognized as an expense in the period in which
the impairment occurs.
For finite-lived intangible assets, if potential impairment
circumstances are considered to exist, the Company will
For finite-lived intangible assets, if potential impairment
perform a recoverability test, using an undiscounted cash
circumstances are considered to exist, the Company will
flow analysis. Factors included in evaluating finite-lived
perform a recoverability test, using an undiscounted cash
customer relationships, technology related assets and
flow analysis. Factors included in evaluating finite-lived
trade names include technology services revenue trends,
customer relationships, technology related assets and
customer attrition rates, obsolescence rates, and royalty
trade names include technology services revenue trends,
rates. For finite-lived management contracts, evaluation is
customer attrition rates, obsolescence rates, and royalty
based on changes in assumptions including AUM,
rates. For finite-lived management contracts, evaluation is
revenue basis points, projected AUM growth rates,
based on changes in assumptions including AUM,
operating margins, tax rates and discount rates. Actual
revenue basis points, projected AUM growth rates,
results could differ from these cash flow estimates, which
operating margins, tax rates and discount rates. Actual
could materially impact the impairment conclusion. If the
results could differ from these cash flow estimates, which
carrying value of the asset is determined not to be
could materially impact the impairment conclusion. If the
recoverable based on the undiscounted cash flow test, the
carrying value of the asset is determined not to be
difference between the book value of the asset and its
recoverable based on the undiscounted cash flow test, the
current estimated fair value would be recognized as an
difference between the book value of the asset and its
expense in the period in which the impairment occurs.
current estimated fair value would be recognized as an
expense in the period in which the impairment occurs.
In addition, management judgment is required to estimate
the period over which finite-lived intangible assets will
In addition, management judgment is required to estimate
contribute to the Company’s cash flows and the pattern in
the period over which finite-lived intangible assets will
which these assets will be consumed and whether the
contribute to the Company’s cash flows and the pattern in
indefinite-life and finite-life classifications are still
which these assets will be consumed and whether the
appropriate. A change in the remaining useful life of any of
indefinite-life and finite-life classifications are still
these assets, or the reclassification of an indefinite-lived
appropriate. A change in the remaining useful life of any of
intangible asset to a finite-lived intangible asset, could
these assets, or the reclassification of an indefinite-lived
have a significant impact on the Company’s amortization
intangible asset to a finite-lived intangible asset, could
expense, which was $151 million, $151 million and
have a significant impact on the Company’s amortization
$147 million for 2023, 2022 and 2021, respectively.
expense, which was $151 million, $151 million and
$147 million for 2023, 2022 and 2021, respectively.
In 2023, 2022 and 2021, the Company performed
impairment tests, including evaluating various qualitative
In 2023, 2022 and 2021, the Company performed
factors and performing certain quantitative assessments.
impairment tests, including evaluating various qualitative
The Company determined that no impairment charges
factors and performing certain quantitative assessments.
were required and that the classification of indefinite-lived
The Company determined that no impairment charges
versus finite-lived intangibles was still appropriate and no
were required and that the classification of indefinite-lived
changes were required to the expected lives of the finite-
versus finite-lived intangibles was still appropriate and no
lived intangibles. The Company continuously monitors
changes were required to the expected lives of the finite-
various factors, including AUM, for potential indicators of
lived intangibles. The Company continuously monitors
impairment.
various factors, including AUM, for potential indicators of
impairment.
Revenue Recognition
Revenue Recognition
The Company recognizes revenues when its obligations
related to the services are satisfied and it is probable that
The Company recognizes revenues when its obligations
a significant reversal of the revenue amount would not
related to the services are satisfied and it is probable that
occur in future periods. The Company enters into
a significant reversal of the revenue amount would not
contracts that can include multiple services, which are
occur in future periods. The Company enters into
accounted for separately if they are determined to be
contracts that can include multiple services, which are
distinct. Management judgment is required in assessing
accounted for separately if they are determined to be
the probability of significant revenue reversal and in
distinct. Management judgment is required in assessing
identification of distinct services.
the probability of significant revenue reversal and in
identification of distinct services.
The Company derives a substantial portion of its revenue
from investment advisory and administration fees which
The Company derives a substantial portion of its revenue
are recognized as the services are performed over time
from investment advisory and administration fees which
because the customer is receiving and consuming the
are recognized as the services are performed over time
benefits as they are provided by the Company. Fees are
because the customer is receiving and consuming the
primarily based on agreed-upon percentages of AUM and
benefits as they are provided by the Company. Fees are
primarily based on agreed-upon percentages of AUM and
recognized for services provided during the period, which
are distinct from services provided in other periods. Such
recognized for services provided during the period, which
fees are affected by changes in AUM, including market
are distinct from services provided in other periods. Such
appreciation or depreciation, foreign exchange translation
fees are affected by changes in AUM, including market
and net inflows or outflows. AUM represents the broad
appreciation or depreciation, foreign exchange translation
range of financial assets the Company manages for
and net inflows or outflows. AUM represents the broad
clients on a discretionary basis pursuant to investment
range of financial assets the Company manages for
management and trust agreements that are expected to
clients on a discretionary basis pursuant to investment
continue for at least 12 months. In general, reported AUM
management and trust agreements that are expected to
reflects the valuation methodology that corresponds to
continue for at least 12 months. In general, reported AUM
the basis used for determining revenue (for example, net
reflects the valuation methodology that corresponds to
asset values).
the basis used for determining revenue (for example, net
asset values).
The Company receives investment advisory performance
fees, including incentive allocations (carried interest) from
The Company receives investment advisory performance
certain actively managed investment funds and certain
fees, including incentive allocations (carried interest) from
separately managed accounts (“SMAs”). These
certain actively managed investment funds and certain
performance fees are dependent upon exceeding
separately managed accounts (“SMAs”). These
specified relative or absolute investment return
performance fees are dependent upon exceeding
thresholds, which vary by product or account, and include
specified relative or absolute investment return
monthly, quarterly, annual or longer measurement
thresholds, which vary by product or account, and include
periods.
monthly, quarterly, annual or longer measurement
periods.
Performance fees, including carried interest, are
generated on certain management contracts when
Performance fees, including carried interest, are
performance hurdles are achieved. Such performance fees
generated on certain management contracts when
are recognized when the contractual performance criteria
performance hurdles are achieved. Such performance fees
have been met and when it is determined that they are no
are recognized when the contractual performance criteria
longer probable of significant reversal. Given the unique
have been met and when it is determined that they are no
nature of each fee arrangement, contracts with customers
longer probable of significant reversal. Given the unique
are evaluated on an individual basis to determine the
nature of each fee arrangement, contracts with customers
timing of revenue recognition. Significant judgment is
are evaluated on an individual basis to determine the
involved in making such determination. Performance fees
timing of revenue recognition. Significant judgment is
typically arise from investment management services that
involved in making such determination. Performance fees
began in prior reporting periods. Consequently, a portion
typically arise from investment management services that
of the fees the Company recognizes may be partially
began in prior reporting periods. Consequently, a portion
related to the services performed in prior periods that
of the fees the Company recognizes may be partially
meet the recognition criteria in the current period. At each
related to the services performed in prior periods that
reporting date, the Company considers various factors in
meet the recognition criteria in the current period. At each
estimating performance fees to be recognized, including
reporting date, the Company considers various factors in
carried interest. These factors include but are not limited
estimating performance fees to be recognized, including
to whether: (1) the amounts are dependent on the
carried interest. These factors include but are not limited
financial markets and, thus, are highly susceptible to
to whether: (1) the amounts are dependent on the
factors outside the Company’s influence; (2) the ultimate
financial markets and, thus, are highly susceptible to
payments have a large number and a broad range of
factors outside the Company’s influence; (2) the ultimate
possible amounts; and (3) the funds or SMAs have the
payments have a large number and a broad range of
ability to (a) invest or reinvest their sales proceeds or
possible amounts; and (3) the funds or SMAs have the
(b) distribute their sales proceeds, and determine the
ability to (a) invest or reinvest their sales proceeds or
timing of such distributions.
(b) distribute their sales proceeds, and determine the
timing of such distributions.
The Company is allocated/distributed carried interest
from certain alternative investment products upon
The Company is allocated/distributed carried interest
exceeding performance thresholds. The Company may be
from certain alternative investment products upon
required to reverse/return all, or part, of such carried
exceeding performance thresholds. The Company may be
interest allocations/distributions depending upon future
required to reverse/return all, or part, of such carried
performance of these products. Carried interest subject to
interest allocations/distributions depending upon future
such clawback provisions is recorded in investments or
performance of these products. Carried interest subject to
cash and cash equivalents to the extent that it is
such clawback provisions is recorded in investments or
distributed, on the Company’s consolidated statements of
cash and cash equivalents to the extent that it is
financial condition.
distributed, on the Company’s consolidated statements of
financial condition.
The Company records a liability for deferred carried
interest to the extent it receives cash or capital allocations
The Company records a liability for deferred carried
related to carried interest prior to meeting the revenue
interest to the extent it receives cash or capital allocations
recognition criteria. At December 31, 2023 and 2022, the
related to carried interest prior to meeting the revenue
Company had $1.8 billion and $1.4 billion, respectively, of
recognition criteria. At December 31, 2023 and 2022, the
deferred carried interest recorded in other liabilities on the
Company had $1.8 billion and $1.4 billion, respectively, of
consolidated statements of financial condition. A portion
deferred carried interest recorded in other liabilities on the
consolidated statements of financial condition. A portion
of the deferred carried interest may also be paid to certain
employees and other third parties. The ultimate timing of
of the deferred carried interest may also be paid to certain
the recognition of performance fee revenue and related
employees and other third parties. The ultimate timing of
compensation expense, if any, is unknown. See Note 16,
the recognition of performance fee revenue and related
Revenue, in the notes to the consolidated financial
compensation expense, if any, is unknown. See Note 16,
statements for detailed changes in the deferred carried
Revenue, in the notes to the consolidated financial
interest liability balance for 2023 and 2022.
statements for detailed changes in the deferred carried
interest liability balance for 2023 and 2022.
The Company earns revenue for providing technology
services. Determining the amount of revenue to recognize
The Company earns revenue for providing technology
requires judgment and estimates. Complex arrangements
services. Determining the amount of revenue to recognize
with nonstandard terms and conditions may require
requires judgment and estimates. Complex arrangements
contract interpretation to determine the appropriate
with nonstandard terms and conditions may require
accounting, including whether promised goods and
contract interpretation to determine the appropriate
services specified in an arrangement, are distinct
accounting, including whether promised goods and
performance obligations, and should be accounted for
services specified in an arrangement, are distinct
separately. Other judgments include determining whether
performance obligations, and should be accounted for
performance obligations are satisfied over time or at a
separately. Other judgments include determining whether
point in time. Fees earned for technology services are
performance obligations are satisfied over time or at a
primarily recorded as services are performed over time
point in time. Fees earned for technology services are
and are generally determined using the value of positions
primarily recorded as services are performed over time
on the Aladdin platform or on a fixed-rate basis. Revenue
and are generally determined using the value of positions
derived from the sale of software licenses is recognized
on the Aladdin platform or on a fixed-rate basis. Revenue
upon the granting of access rights.
derived from the sale of software licenses is recognized
upon the granting of access rights.
Adjustments to revenue arising from initial estimates
recorded historically have been immaterial since the
Adjustments to revenue arising from initial estimates
majority of BlackRock’s investment advisory and
recorded historically have been immaterial since the
administration revenue is calculated based on AUM,
majority of BlackRock’s investment advisory and
recognized when known, and given the Company does not
administration revenue is calculated based on AUM,
record performance fee revenue until: (1) performance
recognized when known, and given the Company does not
thresholds have been exceeded and (2) management
record performance fee revenue until: (1) performance
determines the fees are no longer probable of significant
thresholds have been exceeded and (2) management
reversal. See Note 2, Significant Accounting Policies, in the
determines the fees are no longer probable of significant
consolidated financial statements contained in Part II,
reversal. See Note 2, Significant Accounting Policies, in the
Item 8 of this filing for more information on revenue
consolidated financial statements contained in Part II,
recognition, including other revenue streams.
Item 8 of this filing for more information on revenue
recognition, including other revenue streams.
Income Taxes
Income Taxes
The Company records income taxes based upon its
estimated income tax liability or benefit. The Company’s
The Company records income taxes based upon its
actual tax liability or benefit may differ from the estimated
estimated income tax liability or benefit. The Company’s
income tax liability or benefit.
actual tax liability or benefit may differ from the estimated
income tax liability or benefit.
Deferred income tax assets and liabilities are recognized
for future tax consequences attributable to temporary
Deferred income tax assets and liabilities are recognized
differences between the financial statement carrying
for future tax consequences attributable to temporary
amounts of existing assets and liabilities and their
differences between the financial statement carrying
respective tax bases using currently enacted tax rates in
amounts of existing assets and liabilities and their
effect for the year in which the differences are expected to
respective tax bases using currently enacted tax rates in
reverse. The effect of a change in tax rates on deferred tax
effect for the year in which the differences are expected to
assets and liabilities is recognized in income in the period
reverse. The effect of a change in tax rates on deferred tax
that includes the enactment date.
assets and liabilities is recognized in income in the period
that includes the enactment date.
Significant management judgment is required in
estimating the ranges of possible outcomes and
Significant management judgment is required in
determining the probability of favorable or unfavorable tax
estimating the ranges of possible outcomes and
outcomes and potential interest and penalties related to
determining the probability of favorable or unfavorable tax
such unfavorable outcomes. Actual future tax
outcomes and potential interest and penalties related to
consequences relating to uncertain tax positions may be
such unfavorable outcomes. Actual future tax
materially different than the Company’s current estimates.
consequences relating to uncertain tax positions may be
At December 31, 2023, BlackRock had $749 million of
materially different than the Company’s current estimates.
gross unrecognized tax benefits, of which $505 million, if
At December 31, 2023, BlackRock had $749 million of
recognized, would affect the effective tax rate.
gross unrecognized tax benefits, of which $505 million, if
recognized, would affect the effective tax rate.
Management is required to estimate the timing of the
recognition of deferred tax assets and liabilities, make
Management is required to estimate the timing of the
recognition of deferred tax assets and liabilities, make
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65
65
assumptions about the future deductibility of deferred
income tax assets and assess deferred income tax
assumptions about the future deductibility of deferred
liabilities based on enacted tax rates for the appropriate
income tax assets and assess deferred income tax
tax jurisdictions to determine the amount of such deferred
liabilities based on enacted tax rates for the appropriate
income tax assets and liabilities. At December 31, 2023,
tax jurisdictions to determine the amount of such deferred
the Company had deferred income tax assets of
income tax assets and liabilities. At December 31, 2023,
$208 million and deferred income tax liabilities of
the Company had deferred income tax assets of
$3.5 billion on the consolidated statement of financial
$208 million and deferred income tax liabilities of
condition. Changes in deferred tax assets and liabilities
$3.5 billion on the consolidated statement of financial
may occur in certain circumstances, including statutory
condition. Changes in deferred tax assets and liabilities
income tax rate changes, statutory tax law changes,
may occur in certain circumstances, including statutory
changes in the anticipated timing of recognition of
income tax rate changes, statutory tax law changes,
deferred tax assets and liabilities or changes in the
changes in the anticipated timing of recognition of
structure or tax status of the Company.
deferred tax assets and liabilities or changes in the
structure or tax status of the Company.
The Company assesses whether a valuation allowance
should be established against its deferred income tax
The Company assesses whether a valuation allowance
assets based on consideration of all available evidence,
should be established against its deferred income tax
both positive and negative, using a more likely than not
assets based on consideration of all available evidence,
standard. The assessment considers, among other
both positive and negative, using a more likely than not
matters, the nature, frequency and severity of recent
standard. The assessment considers, among other
losses, forecast of future profitability, the duration of
matters, the nature, frequency and severity of recent
statutory carry back and carry forward periods, the
losses, forecast of future profitability, the duration of
Company’s experience with tax attributes expiring unused,
statutory carry back and carry forward periods, the
and tax planning alternatives.
Company’s experience with tax attributes expiring unused,
and tax planning alternatives.
Accounting Developments
Accounting Developments
For accounting pronouncements not yet adopted by the
Company, see Note 2, Significant Accounting Policies, in
For accounting pronouncements not yet adopted by the
the consolidated financial statements contained in Part II,
Company, see Note 2, Significant Accounting Policies, in
Item 8 of this filing.
the consolidated financial statements contained in Part II,
Item 8 of this filing.
Item 7A. Quantitative and
Item 7A. Quantitative and
Qualitative Disclosures about
Qualitative Disclosures about
Market Risk
Market Risk
AUM Market Price Risk. BlackRock’s investment advisory
and administration fees are primarily comprised of fees
AUM Market Price Risk. BlackRock’s investment advisory
based on a percentage of the value of AUM and, in some
and administration fees are primarily comprised of fees
cases, performance fees expressed as a percentage of the
based on a percentage of the value of AUM and, in some
returns realized on AUM. At December 31, 2023, the
cases, performance fees expressed as a percentage of the
majority of the Company’s investment advisory and
returns realized on AUM. At December 31, 2023, the
administration fees were based on average or period end
majority of the Company’s investment advisory and
AUM of the applicable investment funds or separate
administration fees were based on average or period end
accounts. Movements in equity market prices, interest
AUM of the applicable investment funds or separate
rates/credit spreads, foreign exchange rates or all three
accounts. Movements in equity market prices, interest
could cause the value of AUM to decline, which would
rates/credit spreads, foreign exchange rates or all three
result in lower investment advisory and administration
could cause the value of AUM to decline, which would
fees.
result in lower investment advisory and administration
fees.
Corporate Investments Portfolio Risks. As a leading
investment management firm, BlackRock devotes
Corporate Investments Portfolio Risks. As a leading
significant resources across all of its operations to
investment management firm, BlackRock devotes
identifying, measuring, monitoring, managing and
significant resources across all of its operations to
analyzing market and operating risks, including the
identifying, measuring, monitoring, managing and
management and oversight of its own investment
analyzing market and operating risks, including the
portfolio. The Board of Directors of the Company has
management and oversight of its own investment
adopted guidelines for the review of investments (or
portfolio. The Board of Directors of the Company has
commitments to invest) to be made by the Company,
adopted guidelines for the review of investments (or
requiring, among other things, that certain investments be
commitments to invest) to be made by the Company,
referred to the Board of Directors, depending on the
requiring, among other things, that certain investments be
circumstances, for notification or approval.
referred to the Board of Directors, depending on the
circumstances, for notification or approval.
In the normal course of its business, BlackRock is exposed
to equity market price risk, interest rate/credit spread risk
In the normal course of its business, BlackRock is exposed
to equity market price risk, interest rate/credit spread risk
66 BlackRock | 2023 Form 10-K
66 BlackRock | 2023 Form 10-K
and foreign exchange rate risk associated with its
corporate investments.
and foreign exchange rate risk associated with its
corporate investments.
BlackRock has investments primarily in sponsored
investment products that invest in a variety of asset
BlackRock has investments primarily in sponsored
classes, including real assets, private equity and hedge
investment products that invest in a variety of asset
funds. Investments generally are made for co-investment
classes, including real assets, private equity and hedge
purposes, to establish a performance track record, to
funds. Investments generally are made for co-investment
hedge exposure to certain deferred cash compensation
purposes, to establish a performance track record, to
plans or for regulatory purposes. The Company has a seed
hedge exposure to certain deferred cash compensation
capital hedging program in which it enters into futures to
plans or for regulatory purposes. The Company has a seed
hedge market and interest rate exposure with respect to
capital hedging program in which it enters into futures to
its total portfolio of seed investments in sponsored
hedge market and interest rate exposure with respect to
investment products. The Company had outstanding
its total portfolio of seed investments in sponsored
futures related to its seed capital hedging program with an
investment products. The Company had outstanding
aggregate notional value of approximately $1.8 billion and
futures related to its seed capital hedging program with an
$1.5 billion at December 31, 2023 and 2022, respectively.
aggregate notional value of approximately $1.8 billion and
$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
investments, hedge funds and funds of funds as well as mutual funds. The following table provides our net exposure to
Equity Market Price Risk. Investments subject to market price risk include public and private equity and real assets
equity market price risk and our hypothetical exposure to a 10% adverse change in market prices:
investments, hedge funds and funds of funds as well as mutual funds. The following table provides our net exposure to
equity market price risk and our hypothetical exposure to a 10% adverse change in market prices:
At December 31, 2023 and 2022, approximately
$6.0 billion and $4.7 billion, respectively, of BlackRock’s
At December 31, 2023 and 2022, approximately
investments were held in consolidated sponsored
$6.0 billion and $4.7 billion, respectively, of BlackRock’s
investment products accounted for as variable interest
investments were held in consolidated sponsored
entities or voting rights entities. Excluding the impact of
investment products accounted for as variable interest
the Federal Reserve Bank stock, carried interest,
entities or voting rights entities. Excluding the impact of
investments made to hedge exposure to certain deferred
the Federal Reserve Bank stock, carried interest,
cash compensation plans and certain investments that
investments made to hedge exposure to certain deferred
are hedged via the seed capital hedging program, the
cash compensation plans and certain investments that
Company’s economic exposure to its investment portfolio
are hedged via the seed capital hedging program, the
at December 31, 2023 and 2022 were $3.8 billion and
Company’s economic exposure to its investment portfolio
$3.3 billion, respectively. See Item 7, Management’s
at December 31, 2023 and 2022 were $3.8 billion and
Discussion and Analysis of Financial Condition and Results
$3.3 billion, respectively. See Item 7, Management’s
of Operations-Statement of Financial Condition Overview-
Discussion and Analysis of Financial Condition and Results
Investments for further information on the Company’s
of Operations-Statement of Financial Condition Overview-
investments.
Investments for further information on the Company’s
investments.
Item 8. Financial Statements and
Item 8. Financial Statements and
Supplemental Data
Supplemental Data
The report of the independent registered public
accounting firm and financial statements listed in the
The report of the independent registered public
accompanying index are included in Item 15 of this report.
accounting firm and financial statements listed in the
See Index to the consolidated financial statements on
accompanying index are included in Item 15 of this report.
page F-1 of this Form 10-K.
See Index to the consolidated financial statements on
page F-1 of this Form 10-K.
Item 9. Changes in and
Item 9. Changes in and
Disagreements with Accountants
Disagreements with Accountants
on Accounting and Financial
on Accounting and Financial
Disclosure
Disclosure
There have been no disagreements on accounting and
financial disclosure matters. BlackRock has not changed
There have been no disagreements on accounting and
accountants in the two most recent fiscal years.
financial disclosure matters. BlackRock has not changed
accountants in the two most recent fiscal years.
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67
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Item 9A. Controls and Procedures
Item 9A. Controls and Procedures
Disclosure Controls and Procedures. Under the direction
of BlackRock’s Chief Executive Officer and Chief Financial
Disclosure Controls and Procedures. Under the direction
Officer, BlackRock evaluated the effectiveness of its
of BlackRock’s Chief Executive Officer and Chief Financial
disclosure controls and procedures (as such term is
Officer, BlackRock evaluated the effectiveness of its
defined in Rules 13a-15(e) and 15d-15(e) under the
disclosure controls and procedures (as such term is
Exchange Act) as of the end of the period covered by this
defined in Rules 13a-15(e) and 15d-15(e) under the
annual report on Form 10-K. Based on this evaluation,
Exchange Act) as of the end of the period covered by this
BlackRock’s Chief Executive Officer and Chief Financial
annual report on Form 10-K. Based on this evaluation,
Officer have concluded that BlackRock’s disclosure
BlackRock’s Chief Executive Officer and Chief Financial
controls and procedures were effective.
Officer have concluded that BlackRock’s disclosure
controls and procedures were effective.
Internal Control over Financial Reporting. There were no
changes in our internal control over financial reporting
Internal Control over Financial Reporting. There were no
that occurred during the fourth quarter of the fiscal year
changes in our internal control over financial reporting
ending December 31, 2023 that have materially affected
that occurred during the fourth quarter of the fiscal year
or are reasonably likely to materially affect our internal
ending December 31, 2023 that have materially affected
control over financial reporting.
or are reasonably likely to materially affect our internal
control over financial reporting.
(in millions)
(in millions)
Equity Market Price Risk
Equity Market Price Risk
Investments
Investments
Net
Exposure
Net
Exposure
$ 1,684
$ 1,684
As of December 31,
As of December 31,
2023
2023
Effect of
-10% Change
Effect of
-10% Change
$ 168
$ 168
2022
2022
Effect of
-10% Change
Effect of
-10% Change
$ 142
$ 142
Net
Exposure
Net
Exposure
$ 1,417
$ 1,417
Interest-Rate/Credit Spread Risk. Investments subject to interest-rate and credit spread risk include debt securities and
sponsored investment products that invest primarily in debt securities. The following table provides our exposure to
Interest-Rate/Credit Spread Risk. Investments subject to interest-rate and credit spread risk include debt securities and
interest rate risk and credit spread risk and our hypothetical exposure to an adverse 100 basis point fluctuation in interest
sponsored investment products that invest primarily in debt securities. The following table provides our exposure to
rates or credit spreads:
interest rate risk and credit spread risk and our hypothetical exposure to an adverse 100 basis point fluctuation in interest
rates or credit spreads:
(in millions)
(in millions)
Interest-Rate/Credit Spread Risk
Interest-Rate/Credit Spread Risk
Investments
Investments
Exposure
Exposure
$ 2,088
$ 2,088
As of December 31,
As of December 31,
2023
2023
Effect of
-100 Basis
Effect of
Point Change
-100 Basis
Point Change
$ 53
$ 53
2022
2022
Effect of
-100 Basis
Effect of
Point Change
-100 Basis
Point Change
$ 43
$ 43
Exposure
Exposure
$ 1,900
$ 1,900
Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a
variety of asset classes. The carrying value of the total economic investment exposure denominated in foreign currencies
Foreign Exchange Rate Risk. As discussed above, the Company invests in sponsored investment products that invest in a
are primarily based in the British pound and euro. The following table provides our exposure to foreign currencies and our
variety of asset classes. The carrying value of the total economic investment exposure denominated in foreign currencies
hypothetical exposure to a 10% adverse change in the applicable foreign exchange rates:
are primarily based in the British pound and euro. The following table provides our exposure to foreign currencies and our
hypothetical exposure to a 10% adverse change in the applicable foreign exchange rates:
(in millions)
(in millions)
Foreign Exchange Rate Risk
Foreign Exchange Rate Risk
Investments
Investments
Exposure
Exposure
$ 1,125
$ 1,125
As of December 31,
As of December 31,
2023
2023
Effect of
-10% Change
Effect of
-10% Change
$ 112
$ 112
2022
2022
Effect of
-10% Change
Effect of
-10% Change
$ 100
$ 100
Exposure
Exposure
$ 998
$ 998
Other Market Risks. The Company executes forward
foreign currency exchange contracts to mitigate the risk of
Other Market Risks. The Company executes forward
certain foreign exchange risk movements. At
foreign currency exchange contracts to mitigate the risk of
December 31, 2023 and 2022, the Company had
certain foreign exchange risk movements. At
outstanding forward foreign currency exchange contracts
December 31, 2023 and 2022, the Company had
with an aggregate notional value of approximately
outstanding forward foreign currency exchange contracts
$3.1 billion and $2.2 billion with expiration dates in
with an aggregate notional value of approximately
January 2024 and 2023, respectively. In addition, the
$3.1 billion and $2.2 billion with expiration dates in
January 2024 and 2023, respectively. In addition, the
Company entered into futures to hedge economically the
exposure to market movements on certain deferred cash
Company entered into futures to hedge economically the
compensation plans. At December 31, 2023, the Company
exposure to market movements on certain deferred cash
had outstanding exchange traded futures with aggregate
compensation plans. At December 31, 2023, the Company
notional values related to its deferred cash compensation
had outstanding exchange traded futures with aggregate
hedging program of approximately $204 million, with
notional values related to its deferred cash compensation
expiration dates during the first quarter of 2024.
hedging program of approximately $204 million, with
expiration dates during the first quarter of 2024.
68 BlackRock | 2023 Form 10-K
68 BlackRock | 2023 Form 10-K
Management’s Report on Internal Control Over Financial Reporting
Management’s Report on Internal Control Over Financial Reporting
Management of BlackRock, Inc. (the “Company”) is responsible for establishing and maintaining effective internal control
over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the
Management of BlackRock, Inc. (the “Company”) is responsible for establishing and maintaining effective internal control
Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the Company’s
over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the
principal executive and principal financial officers, or persons performing similar functions, and effected by the
Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the Company’s
Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the
principal executive and principal financial officers, or persons performing similar functions, and effected by the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the
accounting principles generally accepted in the United States of America and includes those policies and procedures that:
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in the United States of America and includes those policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company;
dispositions of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with accounting principles generally accepted in the United States of America, and that
receipts and expenditures of the Company are being made only in accordance with the authorizations of
statements in accordance with accounting principles generally accepted in the United States of America, and that
management and directors of the Company; and
receipts and expenditures of the Company are being made only in accordance with the authorizations of
management and directors of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the Company’s assets that could have a material effect on the financial statements.
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
improper management override of controls, material misstatements due to error or fraud may not be prevented or
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or
detected on a timely basis. Also, projections of any evaluation of effectiveness of the internal control over financial
improper management override of controls, material misstatements due to error or fraud may not be prevented or
reporting to future periods are subject to the risks that controls may become inadequate because of changes in
detected on a timely basis. Also, projections of any evaluation of effectiveness of the internal control over financial
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
reporting to future periods are subject to the risks that controls may become inadequate because of changes in
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,
2023 based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,
Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concluded that, as of
2023 based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of
December 31, 2023, the Company’s internal control over financial reporting is effective.
Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concluded that, as of
December 31, 2023, the Company’s internal control over financial reporting is effective.
The Company’s independent registered public accounting firm has issued an attestation report on the effectiveness of the
Company’s internal control over financial reporting.
The Company’s independent registered public accounting firm has issued an attestation report on the effectiveness of the
Company’s internal control over financial reporting.
February 23, 2024
February 23, 2024
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
69
69
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of BlackRock, Inc.:
To the Board of Directors and Stockholders of BlackRock, Inc.:
Opinion on Internal Control over Financial Reporting
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of BlackRock, Inc. and subsidiaries (the “Company”) as of
December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the
We have audited the internal control over financial reporting of BlackRock, Inc. and subsidiaries (the “Company”) as of
Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained,
December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the
in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria
Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained,
established in Internal Control — Integrated Framework (2013) issued by COSO.
in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria
established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the financial statements as of and for the year ended December 31, 2023, of the Company and our
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
report dated February 23, 2024, expressed an unqualified opinion on those financial statements.
States) (PCAOB), the financial statements as of and for the year ended December 31, 2023, of the Company and our
report dated February 23, 2024, expressed an unqualified opinion on those financial statements.
Basis for Opinion
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
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
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the
management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
financial statements.
detection 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 of any evaluation of effectiveness to future periods are subject to the risk that controls may become
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls 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 23, 2024
New York, New York
February 23, 2024
70 BlackRock | 2023 Form 10-K
70 BlackRock | 2023 Form 10-K
Item 9B. Other Information
Item 9B. Other Information
The Company is furnishing no other information in this
Form 10-K.
The Company is furnishing no other information in this
Form 10-K.
Item 9C. Disclosure Regarding
Item 9C. Disclosure Regarding
Foreign Jurisdictions That Prevent
Foreign Jurisdictions That Prevent
Inspections
Inspections
Not applicable.
Not applicable.
PART III
PART III
Item 10. Directors, Executive
Item 10. Directors, Executive
Officers and Corporate Governance
Officers and Corporate Governance
The information regarding directors and executive officers
set forth under the captions “Item 1: Election of Directors –
The information regarding directors and executive officers
Director Nominee Biographies” and “Corporate
set forth under the captions “Item 1: Election of Directors –
Governance – Other Executive Officers” of the Proxy
Director Nominee Biographies” and “Corporate
Statement is incorporated herein by reference.
Governance – Other Executive Officers” of the Proxy
Statement is incorporated herein by reference.
Information regarding compliance with Section 16(a) of
the Exchange Act required by Item 10, if any, is set forth
Information regarding compliance with Section 16(a) of
under the caption “Delinquent Section 16(a) Reports” of
the Exchange Act required by Item 10, if any, is set forth
the Proxy Statement and incorporated herein by reference.
under the caption “Delinquent Section 16(a) Reports” of
the Proxy Statement and incorporated herein by reference.
The information regarding BlackRock’s Code of Ethics for
Chief Executive and Senior Financial Officers under the
The information regarding BlackRock’s Code of Ethics for
caption “Corporate Governance – Our Corporate
Chief Executive and Senior Financial Officers under the
Governance Framework” of the Proxy Statement is
caption “Corporate Governance – Our Corporate
incorporated herein by reference.
Governance Framework” of the Proxy Statement is
incorporated herein by reference.
The information regarding BlackRock’s Audit Committee
under the caption “Corporate Governance – Board
The information regarding BlackRock’s Audit Committee
Committees” of the Proxy Statement is incorporated
under the caption “Corporate Governance – Board
herein by reference.
Committees” of the Proxy Statement is incorporated
herein by reference.
Item 11. Executive Compensation
Item 11. Executive Compensation
The information contained in the sections captioned
“Management Development & Compensation Committee
The information contained in the sections captioned
Interlocks and Insider Participation,” “Executive
“Management Development & Compensation Committee
Compensation – Compensation Discussion and Analysis”
Interlocks and Insider Participation,” “Executive
and “Corporate Governance – 2023 Director
Compensation – Compensation Discussion and Analysis”
Compensation” of the Proxy Statement is incorporated
and “Corporate Governance – 2023 Director
herein by reference.
Compensation” of the Proxy Statement is incorporated
herein by reference.
Item 12. Security Ownership of
Item 12. Security Ownership of
Certain Beneficial Owners and
Certain Beneficial Owners and
Management and Related
Management and Related
Stockholder Matters
Stockholder Matters
The information contained in the sections captioned
“Ownership of BlackRock Common Stock” and “Executive
The information contained in the sections captioned
Compensation – Compensation Discussion and Analysis –
“Ownership of BlackRock Common Stock” and “Executive
6. Executive Compensation Tables – Equity Compensation
Compensation – Compensation Discussion and Analysis –
Plan Information” of the Proxy Statement is incorporated
6. Executive Compensation Tables – Equity Compensation
herein by reference.
Plan Information” of the Proxy Statement is incorporated
herein by reference.
Item 13. Certain Relationships and
Item 13. Certain Relationships and
Related Transactions, and Director
Related Transactions, and Director
Independence
Independence
The information contained in the sections captioned
“Certain Relationships and Related Transactions” and
The information contained in the sections captioned
“Item 1: Election of Directors – Criteria for Board
“Certain Relationships and Related Transactions” and
Membership – Director Independence” of the Proxy
“Item 1: Election of Directors – Criteria for Board
Statement is incorporated herein by reference.
Membership – Director Independence” of the Proxy
Statement is incorporated herein by reference.
Item 14. Principal Accountant Fees
Item 14. Principal Accountant Fees
and Services
and Services
The information regarding BlackRock’s independent
auditor fees and services in the section captioned “Item 4:
The information regarding BlackRock’s independent
Ratification of the Appointment of the Independent
auditor fees and services in the section captioned “Item 4:
Registered Public Accounting Firm” of the Proxy
Ratification of the Appointment of the Independent
Statement is incorporated herein by reference.
Registered Public Accounting Firm” of the Proxy
Statement is incorporated herein by reference.
PART IV
PART IV
Item 15. Exhibits and Financial
Item 15. Exhibits and Financial
Statement Schedules
Statement Schedules
1. Financial Statements
1. Financial Statements
The Company’s consolidated financial statements are
included beginning on page F-1.
The Company’s consolidated financial statements are
included beginning on page F-1.
2. Financial Statement Schedules
2. Financial Statement Schedules
Financial statement schedules have been omitted
because they are not applicable, not required or the
Financial statement schedules have been omitted
information required is included in the Company’s
because they are not applicable, not required or the
consolidated financial statements or notes thereto.
information required is included in the Company’s
consolidated financial statements or notes thereto.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
71
71
Officers’ Certificate, dated May 6, 2015, for the 1.250% Notes due 2025 issued pursuant to the Indenture.
Officers’ Certificate, dated May 6, 2015, for the 1.250% Notes due 2025 issued pursuant to the Indenture.
3. Exhibit Index
3. Exhibit Index
As used in this exhibit list, “BlackRock” refers to BlackRock, Inc. (formerly named New BlackRock, Inc. and previously,
New Boise, Inc.) (Commission File No. 001-33099) and “Old BlackRock” refers to BlackRock Holdco 2, Inc. (formerly
As used in this exhibit list, “BlackRock” refers to BlackRock, Inc. (formerly named New BlackRock, Inc. and previously,
named BlackRock, Inc.) (Commission File No. 001-15305), which is the predecessor of BlackRock. The following exhibits
New Boise, Inc.) (Commission File No. 001-33099) and “Old BlackRock” refers to BlackRock Holdco 2, Inc. (formerly
are filed as part of this Annual Report on Form 10-K:
named BlackRock, Inc.) (Commission File No. 001-15305), which is the predecessor of BlackRock. The following exhibits
are filed as part of this Annual Report on Form 10-K:
Please note that the agreements included as exhibits to this Form 10-K are included to provide information regarding
their terms and are not intended to provide any other factual or disclosure information about BlackRock or the other
Please note that the agreements included as exhibits to this Form 10-K are included to provide information regarding
parties to the agreements. The agreements contain representations and warranties by each of the parties to the
their terms and are not intended to provide any other factual or disclosure information about BlackRock or the other
applicable agreement that have been made solely for the benefit of the other parties to the applicable agreement and may
parties to the agreements. The agreements contain representations and warranties by each of the parties to the
not describe the actual state of affairs as of the date they were made or at any other time.
applicable agreement that have been made solely for the benefit of the other parties to the applicable agreement and may
not describe the actual state of affairs as of the date they were made or at any other time.
Exhibit
No.
Exhibit
No.
3.1
3.1
3.1.1
3.1.1
3.2
3.2
4.1
4.1
4.2
4.2
4.3
4.3
4.4
4.4
4.5
4.5
4.6
4.6
4.7
4.7
4.8
4.8
4.9
4.9
4.10
4.10
4.11
4.11
4.12
4.12
10.1
10.1
10.2
10.2
10.3
10.3
10.4
10.4
10.5
10.5
10.6
10.6
10.7
10.7
10.8
10.8
10.9
10.9
10.10 (21) Form of Directors’ Restricted Stock Unit Agreement expected to be used in connection with future grants of Restricted
10.10 (21) Form of Directors’ Restricted Stock Unit Agreement expected to be used in connection with future grants of Restricted
10.11 (15) BlackRock, Inc. Amended and Restated Voluntary Deferred Compensation Plan, as amended and restated as of
10.11 (15) BlackRock, Inc. Amended and Restated Voluntary Deferred Compensation Plan, as amended and restated as of
10.12 (22) Five-Year Revolving Credit Agreement, dated as of March 10, 2011, by and among BlackRock, Inc., certain of its
10.12 (22) Five-Year Revolving Credit Agreement, dated as of March 10, 2011, by and among BlackRock, Inc., certain of its
Description
Description
Amended and Restated Certificate of Incorporation of BlackRock.
(1)
Amended and Restated Certificate of Incorporation of BlackRock.
(1)
Certificate of Change of Registered Agent and/or Registered Office.
(2)
Certificate of Change of Registered Agent and/or Registered Office.
(2)
Amended and Restated Bylaws of BlackRock.
(3)
Amended and Restated Bylaws of BlackRock.
(3)
Specimen of Common Stock Certificate.
(4)
Specimen of Common Stock Certificate.
(4)
Indenture, dated September 17, 2007, between BlackRock and The Bank of New York, as trustee, relating to senior debt
(5)
securities.
Indenture, dated September 17, 2007, between BlackRock and The Bank of New York, as trustee, relating to senior debt
(5)
securities.
Form of 3.500% Notes due 2024.
(6)
Form of 3.500% Notes due 2024.
(6)
Form of 1.250% Notes due 2025.
(7)
Form of 1.250% Notes due 2025.
(7)
Form of 3.200% Notes due 2027.
(8)
Form of 3.200% Notes due 2027.
(8)
Form of 3.250% Notes due 2029.
(9)
(9)
Form of 3.250% Notes due 2029.
(10) Form of 2.400% Notes due 2030.
(10) Form of 2.400% Notes due 2030.
(11) Form of 1.900% Notes due 2031.
(11) Form of 1.900% Notes due 2031.
(12) Form of 2.10% Notes due 2032.
(12) Form of 2.10% Notes due 2032.
(13) Form of 4.750% Notes due 2033.
(13) Form of 4.750% Notes due 2033.
(7)
(7)
(14) Description of Securities.
(14) Description of Securities.
(15) BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
(15) BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
(16) Amendment to the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
(16) Amendment to the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
(17) Amended and Restated BlackRock, Inc. 1999 Annual Incentive Performance Plan.+
(17) Amended and Restated BlackRock, Inc. 1999 Annual Incentive Performance Plan.+
(18) Amendment No. 1 to the BlackRock, Inc. Amended and Restated 1999 Annual Incentive Performance Plan.+
(18) Amendment No. 1 to the BlackRock, Inc. Amended and Restated 1999 Annual Incentive Performance Plan.+
(19) Form of Restricted Stock Unit Agreement under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award
(19) Form of Restricted Stock Unit Agreement under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award
(19) Form of Performance-Based Restricted Stock Unit Agreement (BPIP) under the BlackRock, Inc. Second Amended and
(19) Form of Performance-Based Restricted Stock Unit Agreement (BPIP) under the BlackRock, Inc. Second Amended and
(20) Form of Performance-Based Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999
(20) Form of Performance-Based Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999
(21) Form of Stock Option Agreement expected to be used in connection with future grants of Stock Options under the
(21) Form of Stock Option Agreement expected to be used in connection with future grants of Stock Options under the
(21) Form of Restricted Stock Agreement expected to be used in connection with future grants of Restricted Stock under the
(21) Form of Restricted Stock Agreement expected to be used in connection with future grants of Restricted Stock under the
and Incentive Plan.+
and Incentive Plan.+
Restated 1999 Stock Award and Incentive Plan.+
Restated 1999 Stock Award and Incentive Plan.+
Stock Award and Incentive Plan.+
Stock Award and Incentive Plan.+
BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
Stock Units under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
Stock Units under the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan.+
November 16, 2015.+
November 16, 2015.+
subsidiaries, Wells Fargo Bank, National Association, as administrative agent, swingline lender, issuing lender and L/C
agent, Sumitomo Mitsui Banking Corporation, as Japanese Yen lender, a group of lenders, Wells Fargo Securities, LLC,
subsidiaries, Wells Fargo Bank, National Association, as administrative agent, swingline lender, issuing lender and L/C
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital, J.P. Morgan
agent, Sumitomo Mitsui Banking Corporation, as Japanese Yen lender, a group of lenders, Wells Fargo Securities, LLC,
Securities LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint bookrunners, Citibank, N.A., as
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital, J.P. Morgan
syndication agent and Bank of America, N.A., Barclays Bank PLC, JPMorgan Chase Bank, N.A. and Morgan Stanley Senior
Securities LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint bookrunners, Citibank, N.A., as
Funding, Inc., as documentation agents.
syndication agent and Bank of America, N.A., Barclays Bank PLC, JPMorgan Chase Bank, N.A. and Morgan Stanley Senior
Funding, Inc., as documentation agents.
10.13 (23) Amendment No. 1, dated as of March 30, 2012, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
10.13 (23) Amendment No. 1, dated as of March 30, 2012, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
banks and other financial institutions referred to therein.
10.14 (24) Amendment No. 2, dated as of March 28, 2013, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
10.14 (24) Amendment No. 2, dated as of March 28, 2013, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
banks and other financial institutions referred to therein.
10.15 (25) Amendment No. 3, dated as of March 28, 2014, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
10.15 (25) Amendment No. 3, dated as of March 28, 2014, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
banks and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
10.16 (26) Amendment No. 4, dated as of April 2, 2015, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.16 (26) Amendment No. 4, dated as of April 2, 2015, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
Description
Description
72 BlackRock | 2023 Form 10-K
72 BlackRock | 2023 Form 10-K
Exhibit
No.
Exhibit
No.
10.17 (27) Amendment No. 5, dated as of April 8, 2016, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.17 (27) Amendment No. 5, dated as of April 8, 2016, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.18 (28) Amendment No. 6, dated as of April 6, 2017, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.18 (28) Amendment No. 6, dated as of April 6, 2017, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.19 (29) Amendment No. 7, dated as of April 3, 2018, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
10.19 (29) Amendment No. 7, dated as of April 3, 2018, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo Bank,
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the banks
and other financial institutions referred to therein.
10.20 (30) Amendment No. 8, dated as of March 29, 2019, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
10.20 (30) Amendment No. 8, dated as of March 29, 2019, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
banks and other financial institutions referred to therein.
10.21 (31) Amendment No. 9, dated as of March 31, 2020, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
10.21 (31) Amendment No. 9, dated as of March 31, 2020, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, swingline lender, issuing lender, L/C agent and a lender, and the
banks and other financial institutions referred to therein.
10.22 (32) Amendment No. 10, dated as of March 31, 2021, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
10.22 (32) Amendment No. 10, dated as of March 31, 2021, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
the banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
the banks and other financial institutions referred to therein.
Fargo Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender,
and the banks and other financial institutions referred to therein.
Fargo Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender,
and the banks and other financial institutions referred to therein.
10.24 (34) Amendment No. 12, dated as of March 31, 2022, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
10.24 (34) Amendment No. 12, dated as of March 31, 2022, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
the banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
the banks and other financial institutions referred to therein.
10.25 (35) Amendment No. 13, dated as of March 31, 2023, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
10.25 (35) Amendment No. 13, dated as of March 31, 2023, by and among BlackRock, Inc., certain of its subsidiaries, Wells Fargo
the banks and other financial institutions referred to therein.
Bank, National Association, as administrative agent, a swingline lender, an issuing lender, L/C agent and a lender, and
the banks and other financial institutions referred to therein.
Mourant & Co Trustees Limited and Mourant Property Trustees Limited as Trustees of the Drapers Gardens Unit Trust for
the lease of Drapers Gardens, 12 Throgmorton Avenue, London, EC2, United Kingdom.
Mourant & Co Trustees Limited and Mourant Property Trustees Limited as Trustees of the Drapers Gardens Unit Trust for
the lease of Drapers Gardens, 12 Throgmorton Avenue, London, EC2, United Kingdom.
10.23 (33) Amendment No. 11, dated as of December 13, 2021, by and among BlackRock, Inc., certain of its subsidiaries, Wells
10.23 (33) Amendment No. 11, dated as of December 13, 2021, by and among BlackRock, Inc., certain of its subsidiaries, Wells
10.26 (36) Lease Agreement, dated as of February 17, 2010, among BlackRock Investment Management (UK) Limited and
10.26 (36) Lease Agreement, dated as of February 17, 2010, among BlackRock Investment Management (UK) Limited and
December 23, 2014.
December 23, 2014.
dated as of December 23, 2014.
dated as of December 23, 2014.
Smith Incorporated, dated as of January 6, 2015.
Smith Incorporated, dated as of January 6, 2015.
dated as of January 6, 2015.
dated as of January 6, 2015.
10.27 (37) Lease, by and between BlackRock, Inc. and 50 HYMC Holdings LLC.*
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 (38) Letter Agreement, dated February 12, 2013, between Gary S. Shedlin and BlackRock.+
10.29 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Barclays Capital Inc., dated as of
10.29 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Barclays Capital Inc., dated as of
10.30 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Citigroup Global Markets Inc.,
10.30 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Citigroup Global Markets Inc.,
10.31 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Merrill Lynch, Pierce, Fenner &
10.31 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Merrill Lynch, Pierce, Fenner &
10.32 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Credit Suisse Securities (USA) LLC
10.32 (39) Amended and Restated Commercial Paper Dealer Agreement between BlackRock and Credit Suisse Securities (USA) LLC
10.33 (40) BlackRock, Inc. Leadership Retention Carry Plan.+
10.33 (40) BlackRock, Inc. Leadership Retention Carry Plan.+
10.34 (41) Form of Percentage Points Award Agreement pursuant to the BlackRock, Inc. Leadership Retention Carry Plan.+
10.34 (41) Form of Percentage Points Award Agreement pursuant to the BlackRock, Inc. Leadership Retention Carry Plan.+
10.35 (42) Form of Performance-Based Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999
10.35 (42) Form of Performance-Based Stock Option Agreement under the BlackRock, Inc. Second Amended and Restated 1999
21.1
21.1
23.1
23.1
31.1
31.1
31.2
31.2
32.1
32.1
97.1
97.1
101.INS
101.INS
101.SCH
101.SCH
104
104
(1)
Stock Award and Incentive Plan.+
Stock Award and Incentive Plan.+
Subsidiaries of Registrant.
Subsidiaries of Registrant.
Deloitte & Touche LLP Consent.
Deloitte & Touche LLP Consent.
Section 302 Certification of Chief Executive Officer.
Section 302 Certification of Chief Executive Officer.
Section 302 Certification of Chief Financial Officer.
Section 302 Certification of Chief Financial Officer.
Section 906 Certification of Chief Executive Officer and Chief Financial Officer.
Section 906 Certification of Chief Executive Officer and Chief Financial Officer.
Policy Relating to Recovery of Erroneously Awarded Compensation.
Policy Relating to Recovery of Erroneously Awarded Compensation.
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL
tags are embedded within the Inline XBRL document
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL
tags are embedded within the Inline XBRL document
Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document.
Inline XBRL Taxonomy Extension Schema with Embedded Linkbases Document.
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 28, 2021.
(1)
(2)
(2)
(3)
(3)
(4)
(4)
(5)
(5)
(6)
(6)
(7)
(7)
(8)
(8)
(9)
(9)
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 28, 2021.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on July 23, 2021.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on July 23, 2021.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on September 15, 2023.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on September 15, 2023.
Incorporated by reference to BlackRock’s Registration Statement on Form S-8 (Registration No. 333-137708) filed on September 29, 2006.
Incorporated by reference to BlackRock’s Registration Statement on Form S-8 (Registration No. 333-137708) filed on September 29, 2006.
Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2007.
Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2007.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 18, 2014.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 18, 2014.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 6, 2015.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 6, 2015.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 28, 2017.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 28, 2017.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 29, 2019.
Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 29, 2019.
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
73
73
(10) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on January 27, 2020.
(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.
(11) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 6, 2020.
(12) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 10, 2021.
(12) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 10, 2021.
(13) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 25, 2023.
(13) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on May 25, 2023.
(14) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.
(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.
(15) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2015.
(16) Incorporated by reference to BlackRock’s Definitive Proxy Statement on Form DEF 14A filed on April 13, 2018.
(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.
(17) Incorporated by reference to Old BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2002.
(18) Incorporated by reference to Old BlackRock’s Current Report on Form 8-K filed on May 24, 2006.
(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.
(19) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015.
(20) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.
(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.
(21) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on October 5, 2006.
(22) Incorporated by reference to BlackRock’s Current Report on Form 8-K/A filed on August 24, 2012.
(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.
(23) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 4, 2012.
(24) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2013.
(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.
(25) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 28, 2014.
(26) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2015.
(26) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2015.
(27) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 14, 2016.
(27) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 14, 2016.
(28) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 11, 2017.
(28) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 11, 2017.
(29) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 6, 2018.
(29) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 6, 2018.
(30) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 29, 2019.
(30) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on March 29, 2019.
(31) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 1, 2020.
(31) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 1, 2020.
(32) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 6, 2021.
(32) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 6, 2021.
(33) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 13, 2021.
(33) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on December 13, 2021.
(34) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 1, 2022.
(34) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 1, 2022.
(35) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2023.
(35) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on April 3, 2023.
(36) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2009.
(36) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2009.
(37) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
(37) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
(38) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on February 19, 2013.
(38) Incorporated by reference to BlackRock’s Current Report on Form 8-K filed on February 19, 2013.
(39) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2014.
(39) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2014.
(40) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2019.
(40) Incorporated by reference to BlackRock’s Annual Report on Form 10-K for the year ended December 31, 2019.
(41) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
(41) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
(42) Incorporated by reference to BlackRock’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.
(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.
+
*
*
Denotes compensatory plans or arrangements.
Portions of this exhibit have been omitted pursuant to a confidential treatment order from the SEC.
Portions of this exhibit have been omitted pursuant to a confidential treatment order from the SEC.
Item 16. Form 10-K Summary
Item 16. Form 10-K Summary
Not applicable.
Not applicable.
Title
Title
Signature
Signature
/s/ Charles H. Robbins
/s/ Charles H. Robbins
Charles H. Robbins
Charles H. Robbins
/s/ Marco Antonio Slim Domit
/s/ Marco Antonio Slim Domit
Marco Antonio Slim Domit
Marco Antonio Slim Domit
/s/ Hans E. Vestberg
/s/ Hans E. Vestberg
Hans E. Vestberg
Hans E. Vestberg
/s/ Susan L. Wagner
/s/ Susan L. Wagner
Susan L. Wagner
Susan L. Wagner
/s/ Mark Wilson
/s/ Mark Wilson
Mark Wilson
Mark Wilson
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
75
75
Date
Date
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
74 BlackRock | 2023 Form 10-K
74 BlackRock | 2023 Form 10-K
SIGNATURES
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BLACKROCK, INC.
BLACKROCK, INC.
By:
By:
/s/ Laurence D. Fink
/s/ Laurence D. Fink
Laurence D. Fink
Laurence D. Fink
Chairman, Chief Executive Officer and Director
Chairman, Chief Executive Officer and Director
February 23, 2024
February 23, 2024
Each of the officers and directors of BlackRock, Inc. whose signature appears below, in so signing, also makes, constitutes
and appoints Laurence D. Fink, Martin S. Small, Christopher J. Meade, Laura Hildner and R. Andrew Dickson III, his or her
Each of the officers and directors of BlackRock, Inc. whose signature appears below, in so signing, also makes, constitutes
true and lawful attorneys-in-fact, with full power and substitution, for him or her in any and all capacities, to execute
and appoints Laurence D. Fink, Martin S. Small, Christopher J. Meade, Laura Hildner and R. Andrew Dickson III, his or her
and cause to be filed with the Securities and Exchange Commission any and all amendments to the Annual Report on
true and lawful attorneys-in-fact, with full power and substitution, for him or her in any and all capacities, to execute
Form 10-K, with exhibits thereto and other documents connected therewith and to perform any acts necessary to be done
and cause to be filed with the Securities and Exchange Commission any and all amendments to the Annual Report on
in order to file such documents, and hereby ratifies and confirms all that said attorney-in-fact or his or her substitute or
Form 10-K, with exhibits thereto and other documents connected therewith and to perform any acts necessary to be done
substitutes may do or cause to be done by virtue hereof.
in order to file such documents, and hereby 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 on behalf of the registrant and in the capacities and on the dates indicated.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Signature
/s/ Laurence D. Fink
/s/ Laurence D. Fink
Laurence D. Fink
Laurence D. Fink
/s/ Martin S. Small
/s/ Martin S. Small
Martin S. Small
Martin S. Small
/s/ Marc D. Comerchero
/s/ Marc D. Comerchero
Marc D. Comerchero
Marc D. Comerchero
/s/ Bader M. Alsaad
/s/ Bader M. Alsaad
Bader M. Alsaad
Bader M. Alsaad
/s/ Pamela Daley
/s/ Pamela Daley
Pamela Daley
Pamela Daley
/s/ William E. Ford
/s/ William E. Ford
William E. Ford
William E. Ford
/s/ Fabrizio Freda
/s/ Fabrizio Freda
Fabrizio Freda
Fabrizio Freda
/s/ Murry S. Gerber
/s/ Murry S. Gerber
Murry S. Gerber
Murry S. Gerber
/s/ Margaret L. Johnson
/s/ Margaret L. Johnson
Margaret L. Johnson
Margaret L. Johnson
/s/ Robert S. Kapito
/s/ Robert S. Kapito
Robert S. Kapito
Robert S. Kapito
/s/ Cheryl D. Mills
/s/ Cheryl D. Mills
Cheryl D. Mills
Cheryl D. Mills
/s/ Amin H. Nasser
/s/ Amin H. Nasser
Amin H. Nasser
Amin H. Nasser
/s/ Gordon M. Nixon
/s/ Gordon M. Nixon
Gordon M. Nixon
Gordon M. Nixon
/s/ Kristin Peck
/s/ Kristin Peck
Kristin Peck
Kristin Peck
Title
Title
Chairman, Chief Executive Officer and
Director (Principal Executive Officer)
Chairman, Chief Executive Officer and
Director (Principal Executive Officer)
Senior Managing Director and Chief
Financial Officer (Principal Financial Officer)
Senior Managing Director and Chief
Financial Officer (Principal Financial Officer)
Managing Director and Chief Accounting
Officer (Principal Accounting Officer)
Managing Director and Chief Accounting
Officer (Principal Accounting Officer)
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Date
Date
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
February 23, 2024
F-1 BlackRock | 2023 Form 10-K
INDEX TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm (PCAOB ID 34)
Report of Independent Registered Public Accounting Firm (PCAOB ID 34)
Consolidated Statements of Financial Condition
Consolidated Statements of Financial Condition
Consolidated Statements of Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Equity
Consolidated Statements of Changes in Equity
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
BlackRock | 2023 Form 10-K
F-1
F-2
F-2
F-4
F-4
F-5
F-5
F-6
F-6
F-7
F-7
F-8
F-8
F-9
F-9
BlackRock | 2023 Form 10-K
F-2
F-2 BlackRock | 2023 Form 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of BlackRock, Inc.:
To the Board of Directors and Stockholders of BlackRock, Inc.:
Opinion on the Financial Statements
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial condition of BlackRock, Inc. and subsidiaries
(the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive
We have audited the accompanying consolidated statements of financial condition of BlackRock, Inc. and subsidiaries
income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the
(the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive
related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly,
income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the
in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its
related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly,
operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with
in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its
accounting principles generally accepted in the United States of America.
operations and its cash flows for each of the three years in the 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) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria
the Treadway Commission and our report dated February 23, 2024, expressed an unqualified opinion on the Company’s
established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
internal control over financial reporting.
the Treadway Commission and 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 financial statements based on our audits. We are a public accounting firm registered with the
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
PCAOB and are required to be independent with respect to the Company in accordance with the 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 to obtain reasonable assurance about whether the financial statements are free of material
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
provide a reasonable basis for our opinion.
by management, as well as 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 communicated or required to be communicated to the audit committee and that (1) relates to
The critical audit matter communicated below is a matter arising from the current-period audit of the financial
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
statements that was communicated or required to be communicated to the audit committee and that (1) relates to
subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a
subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on
separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
the financial statements, taken as a whole, and we are not, by communicating the critical audit 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 statements
Impairment 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 in business acquisitions. The Company performs its impairment assessment of its indefinite-lived
The Company’s indefinite-lived intangible assets are comprised of management contracts, trade names/trademarks and
intangible assets at least annually, as of July 31st. In evaluating whether it is more likely than not that the fair value of
licenses acquired in business acquisitions. The Company performs its impairment assessment of its indefinite-lived
indefinite-lived intangibles is less than carrying value, the Company performs certain quantitative assessments and
intangible assets at least annually, as of July 31st. In evaluating whether it is more likely than not that the fair value of
assesses various significant qualitative factors. If an indefinite-lived intangible asset is determined to be more likely than
indefinite-lived intangibles is less than carrying value, the Company performs certain quantitative assessments and
not impaired, the fair value of the asset is then compared with its carrying value and any excess of the carrying value over
assesses various significant qualitative factors. If an indefinite-lived intangible asset is determined to be more likely than
the fair value would be recognized as an expense in the period in which the impairment occurs. The determination of fair
not impaired, the fair value of the asset is then compared with its carrying value and any excess of the carrying value over
value requires management to make estimates and assumptions related to revenue basis points, projected assets under
the fair value would be recognized as an expense in the period in which the impairment occurs. The determination of fair
management (“AUM”) growth rates, operating margins, tax rates and discount rates.
value requires management to make estimates and assumptions related to revenue basis points, projected assets under
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 to certain management contracts, performing audit procedures to evaluate the reasonableness of management’s
Given the significant judgments made by management to estimate the fair value of indefinite-lived intangible assets
estimates and assumptions related to projected AUM growth rates, revenue basis points, operating margins, tax rates,
related to certain management contracts, performing audit procedures to evaluate the reasonableness of management’s
and discount rates, required a high degree of auditor judgment and an increased extent of effort, including the need to
estimates and assumptions related to projected AUM growth rates, revenue basis points, operating margins, tax rates,
involve our fair value specialists.
and discount rates, required a high degree of auditor judgment and an increased extent of effort, including the need to
involve our fair value specialists.
F-3 BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
F-3
How the Critical Audit Matter Was Addressed in the Audit
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
management contracts included the following, among others:
Our audit procedures related to the determination of fair value of indefinite-lived intangible assets related to certain
management contracts included the following, among others:
• We tested the design and operating effectiveness of controls over the Company’s indefinite-lived intangible asset
impairment analysis, including those related to management’s assessment of the factors that impact the fair value
• We tested the design and operating effectiveness of controls over the Company’s indefinite-lived intangible asset
of the Company’s indefinite-lived intangible assets. This includes controls related to management’s revenue basis
impairment analysis, including those related to management’s assessment of the factors that impact the fair value
points, projected AUM growth rates, operating margins, tax rates, and the selection of the discount rates.
of the Company’s indefinite-lived intangible assets. This includes controls related to management’s revenue basis
points, projected AUM growth rates, operating margins, tax rates, and the selection of the discount rates.
• We evaluated the reasonableness of management’s AUM, revenue basis points, projected AUM growth rates,
• We evaluated the reasonableness of management’s AUM, revenue basis points, projected AUM growth rates,
operating margins, tax rates and discount rates by comparing management’s projections to:
operating margins, tax rates and discount rates by comparing management’s projections to:
• historical amounts.
• historical amounts.
•
•
• Forecasted information included in analyst and industry reports for the Company and certain of its peer
• Forecasted information included in analyst and industry reports for the Company and certain of its peer
Internal communications to management and the Board of Directors.
Internal communications to management and the Board of Directors.
companies.
companies.
• We evaluated management’s ability to accurately project revenue basis points, AUM growth rates, operating
• We evaluated management’s ability to accurately project revenue basis points, AUM growth rates, operating
margins and tax rates, by comparing actual results to management’s historical forecasts.
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
• With the assistance of our fair value specialists, we evaluated the reasonableness of the Company’s valuation
methodology and assumptions, including the selection of the discount rates by: (1) testing the source information
underlying the determination of the discount rate and the mathematical accuracy of the evaluation and
methodology and assumptions, including the selection of the discount rates by: (1) testing the source information
(2) developing a range of independent estimates and comparing those to the discount rate selected by
underlying the determination of the discount rate and the mathematical accuracy of the evaluation and
management.
(2) developing a range of independent estimates and comparing those to the discount rate selected by
management.
• We evaluated the impact of changes in management’s forecasts from July 31, 2023, the annual impairment
• We evaluated the impact of changes in management’s forecasts from July 31, 2023, the annual impairment
assessment date, to December 31, 2023.
assessment date, to December 31, 2023.
/s/ Deloitte & Touche LLP
/s/ Deloitte & Touche LLP
New York, New York
February 23, 2024
New York, New York
February 23, 2024
We have served as the Company’s auditor since 2002.
We have served as the Company’s auditor since 2002.
BlackRock | 2023 Form 10-K
F-4
F-4 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Financial Condition
Consolidated Statements of Financial Condition
(in millions, except shares and per share data)
(in millions, except shares and per share data)
Assets
Assets
Cash and cash equivalents(1)
Cash and cash equivalents(1)
Accounts receivable
Accounts receivable
Investments(1)
Investments(1)
Separate account assets
Separate account assets
Separate account collateral held under securities lending agreements
Separate account collateral held under securities lending agreements
Property and equipment (net of accumulated depreciation and amortization of $1,439 and $1,390 at
Property and equipment (net of accumulated depreciation and amortization of $1,439 and $1,390 at
Intangible assets (net of accumulated amortization of $618 and $483 at December 31, 2023 and 2022,
Intangible assets (net of accumulated amortization of $618 and $483 at December 31, 2023 and 2022,
Goodwill
Goodwill
Operating lease right-of-use assets
Operating lease right-of-use assets
Other assets(1)
Other assets(1)
December 31, 2023 and 2022, respectively)
December 31, 2023 and 2022, respectively)
respectively)
respectively)
Total assets
Total assets
Liabilities
Liabilities
Accrued compensation and benefits
Accrued compensation and benefits
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities
Borrowings
Borrowings
Separate account liabilities
Separate account liabilities
Separate account collateral liabilities under securities lending agreements
Separate account collateral liabilities under securities lending agreements
Deferred income tax liabilities
Deferred income tax liabilities
Operating lease liabilities
Operating lease liabilities
Other liabilities(1)
Other liabilities(1)
Total liabilities
Total liabilities
Commitments and contingencies (Note 15)
Commitments and contingencies (Note 15)
Temporary equity
Temporary equity
Redeemable noncontrolling interests
Redeemable noncontrolling interests
Permanent equity
Permanent equity
BlackRock, Inc. stockholders’ equity
BlackRock, Inc. stockholders’ equity
Common stock, $0.01 par value;
Common stock, $0.01 par value;
Shares authorized: 500,000,000 at December 31, 2023 and 2022; Shares issued: 172,075,373 at
Shares authorized: 500,000,000 at December 31, 2023 and 2022; Shares issued: 172,075,373 at
December 31, 2023 and 2022; Shares outstanding: 148,500,074 and 149,756,492 at
December 31, 2023 and 2022, respectively
December 31, 2023 and 2022; Shares outstanding: 148,500,074 and 149,756,492 at
December 31, 2023 and 2022, respectively
Additional paid-in capital
Additional paid-in capital
Retained earnings
Retained earnings
Accumulated other comprehensive loss
Accumulated other comprehensive loss
Treasury stock, common, at cost (23,575,299 and 22,318,881 shares held at December 31, 2023 and
Treasury stock, common, at cost (23,575,299 and 22,318,881 shares held at December 31, 2023 and
2022, respectively)
2022, respectively)
Total BlackRock, Inc. stockholders’ equity
Total BlackRock, Inc. stockholders’ equity
Nonredeemable noncontrolling interests
Nonredeemable noncontrolling interests
Total permanent equity
Total permanent equity
Total liabilities, temporary equity and permanent equity
Total liabilities, temporary equity and permanent equity
(1)
(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 variable interest entities (“VIEs”). At December 31, 2022, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $3.9 billion, $68 million
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
and $1.9 billion, respectively, related to consolidated VIEs.
consolidated variable interest entities (“VIEs”). At December 31, 2022, cash and cash equivalents, investments, other assets and other liabilities include $234 million, $3.9 billion, $68 million
and $1.9 billion, respectively, related to consolidated VIEs.
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
December 31,
2023
December 31,
2023
December 31,
2022
December 31,
2022
$
$
8,736
8,736
3,916
3,916
9,740
9,740
56,098
56,098
4,558
4,558
1,112
1,112
18,258
18,258
15,524
15,524
1,421
1,421
3,848
3,848
$ 123,211
$ 123,211
$
$
2,393
2,393
1,240
1,240
7,918
7,918
56,098
56,098
4,558
4,558
3,506
3,506
1,784
1,784
4,474
4,474
81,971
81,971
1,740
1,740
2
2
$
$
7,416
7,416
3,264
3,264
7,466
7,466
54,066
54,066
5,765
5,765
1,031
1,031
18,302
18,302
15,341
15,341
1,516
1,516
3,461
3,461
$ 117,628
$ 117,628
$
$
2,272
2,272
1,294
1,294
6,654
6,654
54,066
54,066
5,765
5,765
3,381
3,381
1,835
1,835
3,576
3,576
78,843
78,843
909
909
2
2
19,833
19,833
32,343
32,343
(840)
(840)
(11,991)
(11,991)
39,347
39,347
153
153
39,500
39,500
$ 123,211
$ 123,211
19,772
19,772
29,876
29,876
(1,101)
(1,101)
(10,805)
(10,805)
37,744
37,744
132
132
37,876
37,876
$ 117,628
$ 117,628
F-5 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Income
Consolidated Statements of Income
(in millions, except per share data)
(in millions, except per share data)
Revenue
Revenue
Related parties
Related parties
Other third parties
Other third parties
Investment advisory, administration fees and securities lending revenue:
Investment advisory, administration fees and securities lending revenue:
Total investment advisory, administration fees and securities lending revenue
Total investment advisory, administration fees and securities lending revenue
Investment advisory performance fees
Investment advisory performance fees
Technology services revenue
Technology services revenue
Distribution fees
Distribution fees
Advisory and other revenue
Advisory and other revenue
Total revenue
Total revenue
Expense
Expense
Employee compensation and benefits
Employee compensation and benefits
Distribution and servicing costs
Distribution and servicing costs
Direct fund expense
Direct fund expense
General and administration expense
General and administration expense
Restructuring charge
Restructuring charge
Amortization of intangible assets
Amortization of intangible assets
Total expense
Total expense
Operating income
Operating income
Nonoperating income (expense)
Nonoperating income (expense)
Net gain (loss) on investments
Net gain (loss) on investments
Interest and dividend income
Interest and dividend income
Interest expense
Interest expense
Total nonoperating income (expense)
Total nonoperating income (expense)
Income before income taxes
Income before income taxes
Income tax expense
Income tax expense
Net income
Net income
Less:
Less:
Basic
Basic
Diluted
Diluted
Basic
Basic
Diluted
Diluted
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Net income attributable to BlackRock, Inc.
Net income attributable to BlackRock, Inc.
Earnings per share attributable to BlackRock, Inc. common stockholders:
Earnings per share attributable to BlackRock, Inc. common stockholders:
Weighted-average common shares outstanding:
Weighted-average common shares outstanding:
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
F-6 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income
(in millions)
BlackRock | 2023 Form 10-K
F-6
(in millions)
Net income
Net income
Other comprehensive income (loss):
Other comprehensive income (loss):
Foreign currency translation adjustments(1)
Foreign currency translation adjustments(1)
Comprehensive income
Comprehensive income
Less: Comprehensive income (loss) attributable to noncontrolling interests
Less: Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income attributable to BlackRock, Inc.
Comprehensive income attributable to BlackRock, Inc.
(1)
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
(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
of tax expense of $12 million). Amount for 2021 includes a gain from a net investment hedge of $46 million (net of tax expense of $14 million).
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
of tax expense of $12 million). Amount for 2021 includes a gain from a net investment hedge of $46 million (net of tax expense of $14 million).
2023
2023
$ 5,676
$ 5,676
261
261
5,937
5,937
174
174
$ 5,763
$ 5,763
2022
2022
$ 4,994
$ 4,994
(551)
(551)
4,443
4,443
(184)
(184)
$ 4,627
$ 4,627
2021
2021
$ 6,205
$ 6,205
(213)
(213)
5,992
5,992
304
304
$ 5,688
$ 5,688
BlackRock | 2023 Form 10-K
F-5
2023
2023
2022
2022
2021
2021
$ 10,757
$ 10,757
3,642
3,642
14,399
14,399
554
554
1,485
1,485
1,262
1,262
159
159
17,859
17,859
$ 10,848
$ 10,848
3,603
3,603
14,451
14,451
514
514
1,364
1,364
1,381
1,381
163
163
17,873
17,873
$ 11,474
$ 11,474
3,786
3,786
15,260
15,260
1,143
1,143
1,281
1,281
1,521
1,521
169
169
19,374
19,374
5,779
5,779
2,051
2,051
1,331
1,331
2,211
2,211
61
61
151
151
11,584
11,584
6,275
6,275
699
699
473
473
(292)
(292)
880
880
7,155
7,155
1,479
1,479
5,676
5,676
5,681
5,681
2,179
2,179
1,226
1,226
2,160
2,160
91
91
151
151
11,488
11,488
6,385
6,385
(35)
(35)
152
152
(212)
(212)
(95)
(95)
6,290
6,290
1,296
1,296
4,994
4,994
6,043
6,043
2,200
2,200
1,313
1,313
2,221
2,221
—
—
147
147
11,924
11,924
7,450
7,450
841
841
87
87
(205)
(205)
723
723
8,173
8,173
1,968
1,968
6,205
6,205
174
174
$ 5,502
$ 5,502
$ 36.85
$ 36.85
$ 36.51
$ 36.51
149.3
149.3
150.7
150.7
(184)
(184)
$ 5,178
$ 5,178
$ 34.31
$ 34.31
$ 33.97
$ 33.97
150.9
150.9
152.4
152.4
304
304
$ 5,901
$ 5,901
$ 38.76
$ 38.76
$ 38.22
$ 38.22
152.2
152.2
154.4
154.4
F-7 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Changes in Equity
Consolidated Statements of Changes in Equity
BlackRock | 2023 Form 10-K
F-7
(in millions)
(in millions)
December 31, 2020
December 31, 2020
Net income
Net income
Dividends declared ($16.52 per share)
Dividends declared ($16.52 per share)
Stock-based compensation
Stock-based compensation
Issuance of common shares related to
Issuance of common shares related to
Employee tax withholdings related to
Employee tax withholdings related to
Shares repurchased
Shares repurchased
Subscriptions (redemptions/
Subscriptions (redemptions/
employee stock transactions
employee stock transactions
employee stock transactions
employee stock transactions
distributions) — noncontrolling
interest holders
distributions) — noncontrolling
interest holders
Net consolidations (deconsolidations)
of sponsored investment funds
Net consolidations (deconsolidations)
of sponsored investment funds
Other comprehensive income (loss)
Other comprehensive income (loss)
December 31, 2021
December 31, 2021
Net income
Net income
Dividends declared ($19.52 per share)
Dividends declared ($19.52 per share)
Stock-based compensation
Stock-based compensation
Issuance of common shares related to
Issuance of common shares related to
Employee tax withholdings related to
Employee tax withholdings related to
Shares repurchased
Shares repurchased
Subscriptions (redemptions/
Subscriptions (redemptions/
employee stock transactions
employee stock transactions
employee stock transactions
employee stock transactions
distributions) — noncontrolling
interest holders
distributions) — noncontrolling
interest holders
Net consolidations (deconsolidations)
of sponsored investment funds
Net consolidations (deconsolidations)
of sponsored investment funds
Other comprehensive income (loss)
Other comprehensive income (loss)
December 31, 2022
December 31, 2022
Net income
Net income
Dividends declared ($20.00 per share)
Dividends declared ($20.00 per share)
Stock-based compensation
Stock-based compensation
Issuance of common shares related to
Issuance of common shares related to
Employee tax withholdings related to
Employee tax withholdings related to
Shares repurchased
Shares repurchased
Subscriptions (redemptions/
Subscriptions (redemptions/
employee stock transactions
employee stock transactions
employee stock transactions
employee stock transactions
distributions) — noncontrolling
interest holders
distributions) — noncontrolling
interest holders
Net consolidations (deconsolidations)
of sponsored investment funds
Net consolidations (deconsolidations)
of sponsored investment funds
Other comprehensive income (loss)
Other comprehensive income (loss)
December 31, 2023
December 31, 2023
(1)
Additional
Retained
Paid-in
Additional
Capital(1)
Earnings
Retained
Paid-in
Capital(1)
Earnings
$ 19,295 $ 24,334
$ 19,295 $ 24,334
5,901
5,901
(2,547)
(2,547)
—
—
—
—
—
—
—
—
—
—
—
—
734
734
(387)
(387)
—
—
—
—
Accumulated
Other
Accumulated
Comprehensive
Other
Income (Loss)
Comprehensive
Income (Loss)
$ (337)
$ (337)
—
—
—
—
—
—
—
—
—
—
—
—
Treasury
Stock
Treasury
Common
Stock
Common
Total
BlackRock
Total
Stockholders’
BlackRock
Equity
Stockholders’
Equity
$ (8,009) $ 35,283
$ (8,009) $ 35,283
5,901
5,901
(2,547)
(2,547)
734
734
20
20
(285)
(285)
(1,200)
(1,200)
—
—
—
—
—
—
407
407
(285)
(285)
(1,200)
(1,200)
—
—
—
—
—
—
—
—
—
—
—
—
$ 19,642 $ 27,688
$ 19,642 $ 27,688
5,178
5,178
(2,990)
(2,990)
—
—
—
—
—
—
—
—
—
—
—
—
708
708
(576)
(576)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 19,774 $ 29,876
$ 19,774 $ 29,876
5,502
5,502
(3,035)
(3,035)
—
—
—
—
—
—
—
—
—
—
—
—
630
630
(569)
(569)
—
—
—
—
—
—
—
—
(213)
(213)
$ (550)
$ (550)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(551)
(551)
$ (1,101)
$ (1,101)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 19,835 $ 32,343
$ 19,835 $ 32,343
—
—
—
—
261
261
$ (840)
$ (840)
—
—
—
—
—
—
—
—
—
—
(213)
(213)
$ (9,087) $ 37,693
$ (9,087) $ 37,693
5,178
5,178
(2,990)
(2,990)
708
708
38
38
(457)
(457)
(1,875)
(1,875)
—
—
—
—
—
—
614
614
(457)
(457)
(1,875)
(1,875)
—
—
—
—
—
—
—
—
—
—
(551)
(551)
$ (10,805) $ 37,744
$ (10,805) $ 37,744
5,502
5,502
(3,035)
(3,035)
630
630
129
129
(375)
(375)
(1,509)
(1,509)
—
—
—
—
—
—
698
698
(375)
(375)
(1,509)
(1,509)
—
—
—
—
—
—
—
—
—
—
261
261
$ (11,991) $ 39,347
$ (11,991) $ 39,347
Redeemable
Noncontrolling
Redeemable
Interests /
Noncontrolling
Temporary
Interests /
Equity
Temporary
Equity
$ 2,322
$ 2,322
306
306
—
—
—
—
—
—
—
—
—
—
1,408
1,408
(2,949)
(2,949)
—
—
$ 1,087
$ 1,087
(190)
(190)
—
—
—
—
—
—
—
—
—
—
614
614
(602)
(602)
—
—
$ 909
$ 909
158
158
—
—
—
—
—
—
—
—
—
—
1,643
1,643
(970)
(970)
—
—
$ 1,740
$ 1,740
Total
Permanent
Total
Equity
Permanent
Equity
$ 35,334
$ 35,334
5,899
5,899
(2,547)
(2,547)
734
734
20
20
(285)
(285)
(1,200)
(1,200)
67
67
(3)
(3)
(213)
(213)
$ 37,806
$ 37,806
5,184
5,184
(2,990)
(2,990)
708
708
38
38
(457)
(457)
(1,875)
(1,875)
4
4
9
9
(551)
(551)
$ 37,876
$ 37,876
5,518
5,518
(3,035)
(3,035)
630
630
129
129
(375)
(375)
(1,509)
(1,509)
(16)
(16)
21
21
261
261
$ 39,500
$ 39,500
Nonredeemable
Noncontrolling
Nonredeemable
Interests
Noncontrolling
Interests
$ 51
$ 51
(2)
(2)
—
—
—
—
—
—
—
—
—
—
67
67
(3)
(3)
—
—
$ 113
$ 113
6
6
—
—
—
—
—
—
—
—
—
—
4
4
9
9
—
—
$ 132
$ 132
16
16
—
—
—
—
—
—
—
—
—
—
(16)
(16)
21
21
—
—
$ 153
$ 153
Amounts include $2 million of common stock at December 31, 2023, 2022, 2021 and 2020.
(1)
Amounts include $2 million of common stock at December 31, 2023, 2022, 2021 and 2020.
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
BlackRock | 2023 Form 10-K
F-8
F-8 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
(in millions)
(in millions)
Operating activities
Operating activities
Net income
Net income
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization
Depreciation and amortization
Noncash lease expense
Noncash lease expense
Stock-based compensation
Stock-based compensation
Deferred income tax expense (benefit)
Deferred income tax expense (benefit)
Contingent consideration fair value adjustments
Contingent consideration fair value adjustments
Other investment gains
Other investment gains
Net (gains) losses within CIPs
Net (gains) losses within CIPs
Net (purchases) proceeds within CIPs
Net (purchases) proceeds within CIPs
(Earnings) losses from equity method investees
(Earnings) losses from equity method investees
Distributions of earnings from equity method investees
Distributions of earnings from equity method investees
Changes in operating assets and liabilities:
Changes in operating assets and liabilities:
Accounts receivable
Accounts receivable
Investments, trading
Investments, trading
Other assets
Other assets
Accrued compensation and benefits
Accrued compensation and benefits
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities
Other liabilities
Other liabilities
Net cash provided by/(used in) operating activities
Net cash provided by/(used in) operating activities
Investing activities
Investing activities
Purchases of investments
Purchases of investments
Proceeds from sales and maturities of investments
Proceeds from sales and maturities of investments
Distributions of capital from equity method investees
Distributions of capital from equity method investees
Net consolidations (deconsolidations) of sponsored investment funds
Net consolidations (deconsolidations) of sponsored investment funds
Acquisitions, net of cash acquired
Acquisitions, net of cash acquired
Purchases of property and equipment
Purchases of property and equipment
Net cash provided by/(used in) investing activities
Net cash provided by/(used in) investing activities
Financing activities
Financing activities
Repayments of long-term borrowings
Repayments of long-term borrowings
Proceeds from long-term borrowings
Proceeds from long-term borrowings
Cash dividends paid
Cash dividends paid
Proceeds from stock options exercised
Proceeds from stock options exercised
Repurchases of common stock
Repurchases of common stock
Net proceeds from (repayments of) borrowings by CIPs
Net proceeds from (repayments of) borrowings by CIPs
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest
Net (redemptions/distributions paid)/subscriptions received from noncontrolling interest
Other financing activities
Other financing activities
holders
holders
Net cash provided by/(used in) financing activities
Net cash provided by/(used in) financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Net increase/(decrease) in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, beginning of year
Cash, cash equivalents and restricted cash, beginning of year
Cash, cash equivalents and restricted cash, end of year
Cash, cash equivalents and restricted cash, end of year
Supplemental disclosure of cash flow information:
Supplemental disclosure of cash flow information:
Cash paid for:
Cash paid for:
Interest
Interest
Income taxes (net of refunds)
Income taxes (net of refunds)
Supplemental schedule of noncash investing and financing transactions:
Supplemental schedule of noncash investing and financing transactions:
Issuance of common stock
Issuance of common stock
Increase/(decrease) in noncontrolling interests due to net consolidation (deconsolidation) of
Increase/(decrease) in noncontrolling interests due to net consolidation (deconsolidation) of
sponsored investment funds
sponsored investment funds
See accompanying notes to consolidated financial statements.
See accompanying notes to consolidated financial statements.
2023
2023
2022
2022
2021
2021
$ 5,676
$ 5,676
$ 4,994
$ 4,994
$ 6,205
$ 6,205
427
427
140
140
630
630
124
124
3
3
—
—
(380)
(380)
(1,780)
(1,780)
(378)
(378)
49
49
(586)
(586)
72
72
(326)
(326)
145
145
(26)
(26)
375
375
4,165
4,165
(846)
(846)
400
400
46
46
(26)
(26)
(189)
(189)
(344)
(344)
(959)
(959)
—
—
1,238
1,238
(3,035)
(3,035)
95
95
(1,884)
(1,884)
(59)
(59)
1,627
1,627
26
26
(1,992)
(1,992)
106
106
1,320
1,320
7,433
7,433
$ 8,753
$ 8,753
$ 200
$ 200
$ 1,392
$ 1,392
$ 569
$ 569
$ (949)
$ (949)
418
418
165
165
708
708
602
602
3
3
(268)
(268)
400
400
(1,190)
(1,190)
(29)
(29)
50
50
416
416
196
196
(166)
(166)
(711)
(711)
(151)
(151)
(481)
(481)
4,956
4,956
(824)
(824)
242
242
70
70
(85)
(85)
—
—
(533)
(533)
(1,130)
(1,130)
(750)
(750)
—
—
(2,990)
(2,990)
11
11
(2,332)
(2,332)
(26)
(26)
618
618
27
27
(5,442)
(5,442)
(291)
(291)
(1,907)
(1,907)
9,340
9,340
$ 7,433
$ 7,433
$ 177
$ 177
$ 1,067
$ 1,067
$ 576
$ 576
$ (593)
$ (593)
415
415
144
144
734
734
(865)
(865)
34
34
(165)
(165)
(302)
(302)
(1,683)
(1,683)
(315)
(315)
84
84
(322)
(322)
323
323
(172)
(172)
412
412
342
342
75
75
4,944
4,944
(910)
(910)
429
429
95
95
(104)
(104)
(1,106)
(1,106)
(341)
(341)
(1,937)
(1,937)
(750)
(750)
991
991
(2,547)
(2,547)
—
—
(1,485)
(1,485)
32
32
1,475
1,475
(3)
(3)
(2,287)
(2,287)
(61)
(61)
659
659
8,681
8,681
$ 9,340
$ 9,340
189
$
$
189
$ 2,720
$ 2,720
387
$
$
387
$ (2,952)
$ (2,952)
F-9 BlackRock | 2023 Form 10-K
BlackRock, Inc.
BlackRock, Inc.
Notes to the Consolidated
Notes to the Consolidated
Financial Statements
Financial Statements
1. Business Overview
1. Business Overview
BlackRock, Inc. (together, with its subsidiaries, unless the
context otherwise indicates, “BlackRock” or the
BlackRock, Inc. (together, with its subsidiaries, unless the
“Company”) is a leading publicly traded investment
context otherwise indicates, “BlackRock” or the
management firm providing a broad range of investment
“Company”) is a leading publicly traded investment
management and technology services to institutional and
management firm providing a broad range of investment
retail clients worldwide.
management and technology services to institutional and
retail clients worldwide.
BlackRock’s diverse platform of alpha-seeking active,
index and cash management investment strategies across
BlackRock’s diverse platform of alpha-seeking active,
asset classes enables the Company to offer choice and
index and cash management investment strategies across
tailor investment and asset allocation solutions for clients.
asset classes enables the Company to offer choice and
Product offerings include single- and multi-asset
tailor investment and asset allocation solutions for clients.
portfolios investing in equities, fixed income, alternatives
Product offerings include single- and multi-asset
and money market instruments. Products are offered
portfolios investing in equities, fixed income, alternatives
directly and through intermediaries in a variety of vehicles,
and money market instruments. Products are offered
including open-end and closed-end mutual funds,
directly and through intermediaries in a variety of vehicles,
iShares® and BlackRock exchange-traded funds (“ETFs”),
including open-end and closed-end mutual funds,
iShares® and BlackRock exchange-traded funds (“ETFs”),
separate accounts, collective trust funds and other pooled
investment vehicles. BlackRock also offers technology
separate accounts, collective trust funds and other pooled
services, including the investment and risk management
investment vehicles. BlackRock also offers technology
technology platform, Aladdin®, Aladdin Wealth, eFront and
services, including the investment and risk management
technology platform, Aladdin®, Aladdin Wealth, eFront and
Cachematrix, as well as advisory services and solutions to
a broad base of institutional and wealth management
Cachematrix, as well as advisory services and solutions to
clients.
a broad base of institutional and wealth management
clients.
2. Significant Accounting Policies
2. Significant Accounting Policies
Basis of Presentation
Basis of Presentation
These consolidated financial statements have been
prepared in accordance with accounting principles
These consolidated financial statements have been
generally accepted in the United States (“GAAP”) and
prepared in accordance with accounting principles
include the accounts of the Company and its controlled
generally accepted in the United States (“GAAP”) and
subsidiaries. Noncontrolling interests (“NCI”) on the
include the accounts of the Company and its controlled
consolidated statements of financial condition represent
subsidiaries. Noncontrolling interests (“NCI”) on the
the portion of consolidated sponsored investment
consolidated statements of financial condition represent
products (“CIPs”) and a consolidated affiliate (collectively,
the portion of consolidated sponsored investment
“consolidated entities”) in which the Company does not
products (“CIPs”) and a consolidated affiliate (collectively,
have direct equity ownership. Intercompany balances and
“consolidated entities”) in which the Company does not
transactions have been eliminated upon consolidation.
have direct equity ownership. Intercompany balances and
transactions have been eliminated upon consolidation.
The preparation of financial statements in conformity with
GAAP requires management to make estimates and
The preparation of financial statements in conformity with
assumptions that affect the reported amounts of assets
GAAP requires management to make estimates and
and liabilities and disclosure of contingent assets and
assumptions that affect the reported amounts of assets
liabilities at the date of the financial statements and the
and liabilities and disclosure of contingent assets and
reported amounts of revenue and expense during the
liabilities at the date of the financial statements and the
reporting periods. Actual results could differ from those
reported amounts of revenue and expense during the
estimates.
reporting periods. Actual results could differ from those
estimates.
Certain prior period presentations and disclosures, while
not required to be recast, may be reclassified to ensure
Certain prior period presentations and disclosures, while
comparability with current period classifications.
not required to be recast, may be reclassified to ensure
comparability with current period classifications.
Accounting Developments
Accounting Developments
Segment Reporting. In November 2023, the Financial
Accounting Standards Board (“FASB”) issued Accounting
Segment Reporting. In November 2023, the Financial
Standards Update (“ASU”) 2023-07, Improvements to
Accounting Standards Board (“FASB”) issued Accounting
Reportable Segment Disclosures (“ASU 2023-07”), which
Standards Update (“ASU”) 2023-07, Improvements to
requires incremental disclosures about reportable
Reportable Segment Disclosures (“ASU 2023-07”), which
segments but does not change the definition of a segment
requires incremental disclosures about reportable
or the guidance for determining reportable segments. The
segments but does not change the definition of a segment
or the guidance for determining reportable segments. The
BlackRock | 2023 Form 10-K
F-9
new guidance requires disclosure of significant segment
expenses that are (1) regularly provided to (or easily
new guidance requires disclosure of significant segment
computed from information regularly provided to) the
expenses that are (1) regularly provided to (or easily
chief operating decision maker (“CODM”) and (2) included
computed from information regularly provided to) the
in the reported measure of segment profit or loss. The new
chief operating decision maker (“CODM”) and (2) included
standard also requires companies to disclose the title and
in the reported measure of segment profit or loss. The new
position of the individual (or the name of the committee)
standard also requires companies to disclose the title and
identified as the CODM, allows companies to disclose
position of the individual (or the name of the committee)
multiple measures of segment profit or loss if those
identified as the CODM, allows companies to disclose
measures are used to assess performance and allocate
multiple measures of segment profit or loss if those
resources, and is applicable to companies with a single
measures are used to assess performance and allocate
reportable segment. The requirements are effective for
resources, and is applicable to companies with a single
annual reporting periods beginning on January 1, 2024,
reportable segment. The requirements are effective for
and are required to be applied retrospectively. Early
annual reporting periods beginning on January 1, 2024,
adoption is permitted. The Company does not expect the
and are required to be applied retrospectively. Early
additional disclosure requirements under ASU 2023-07 to
adoption is permitted. The Company does not expect the
have a material impact on the consolidated financial
additional disclosure requirements under ASU 2023-07 to
statements.
have a material impact on the consolidated financial
statements.
Income Tax Disclosure Requirements. In December 2023,
the FASB issued ASU 2023-09, Improvements to Income
Income Tax Disclosure Requirements. In December 2023,
Tax Disclosures (“ASU 2023-09”), which enhances interim
the FASB issued ASU 2023-09, Improvements to Income
and annual income tax disclosures. The two primary
Tax Disclosures (“ASU 2023-09”), which enhances interim
enhancements disaggregate existing income tax
and annual income tax disclosures. The two primary
disclosures related to the effective tax rate reconciliation
enhancements disaggregate existing income tax
and income taxes paid. The additional disclosure
disclosures related to the effective tax rate reconciliation
requirements under ASU 2023-09 are required to be
and income taxes paid. The additional disclosure
applied prospectively and are effective for the Company on
requirements under ASU 2023-09 are required to be
January 1, 2025. The Company does not expect the
applied prospectively and are effective for the Company on
additional disclosure requirements under ASU 2023-09 to
January 1, 2025. The Company does not expect the
have a material impact on the consolidated financial
additional disclosure requirements under ASU 2023-09 to
statements.
have a material impact on the consolidated financial
statements.
Cash and Cash Equivalents. Cash and cash equivalents
primarily consists of cash, money market funds and short-
Cash and Cash Equivalents. Cash and cash equivalents
term, highly liquid investments with original maturities of
primarily consists of cash, money market funds and short-
three months or less. Cash and cash equivalent balances
term, highly liquid investments with original maturities of
that are legally restricted from use by the Company are
three months or less. Cash and cash equivalent balances
recorded in other assets on the consolidated statements
that are legally restricted from use by the Company are
of financial condition. Cash balances maintained by
recorded in other assets on the consolidated statements
consolidated VIEs and voting rights entities (“VREs”) are
of financial condition. Cash balances maintained by
not considered legally restricted and are included in cash
consolidated VIEs and voting rights entities (“VREs”) are
and cash equivalents on the consolidated statements of
not considered legally restricted and are included in cash
financial condition.
and cash equivalents on the consolidated statements of
financial condition.
Investments
Investments
Investments in Debt Securities. The Company classifies
debt investments as held-to-maturity or trading based on
Investments in Debt Securities. The Company classifies
the Company’s intent and ability to hold the debt security
debt investments as held-to-maturity or trading based on
to maturity or its intent to sell the security.
the Company’s intent and ability to hold the debt security
to maturity or its intent to sell the security.
Held-to-maturity securities are purchased with the
positive intent and ability to be held to maturity and are
Held-to-maturity securities are purchased with the
recorded at amortized cost on the consolidated
positive intent and ability to be held to maturity and are
statements of financial condition.
recorded at amortized cost on the consolidated
statements of financial condition.
Trading securities are those investments that are
purchased principally for the purpose of selling them in
Trading securities are those investments that are
the near term. Trading securities are carried at fair value
purchased principally for the purpose of selling them in
on the consolidated statements of financial condition with
the near term. Trading securities are carried at fair value
changes in the fair value recorded through net income
on the consolidated statements of financial condition with
(“FVTNI”) within nonoperating income (expense). Trading
changes in the fair value recorded through net income
securities include certain investments in collateralized
(“FVTNI”) within nonoperating income (expense). Trading
loan obligations (“CLOs”) for which the fair value option is
securities include certain investments in collateralized
elected in order to reduce operational complexity of
loan obligations (“CLOs”) for which the fair value option is
bifurcating embedded derivatives.
elected in order to reduce operational complexity of
bifurcating embedded derivatives.
F-10 BlackRock | 2023 Form 10-K
Investments in Equity Securities. Equity securities are
generally carried at fair value on the consolidated
Investments in Equity Securities. Equity securities are
statements of financial condition with changes in the
generally carried at fair value on the consolidated
FVTNI within nonoperating income (expense). For
statements of financial condition with changes in the
nonmarketable equity securities, the Company generally
FVTNI within nonoperating income (expense). For
elects to apply the practicality exception to fair value
nonmarketable equity securities, the Company generally
measurement, under which such securities will be
elects to apply the practicality exception to fair value
measured at cost, less impairment, plus or minus
measurement, under which such securities will be
observable price changes for identical or similar securities
measured at cost, less impairment, plus or minus
of the same issuer with such changes recorded through
observable price changes for identical or similar securities
net income within nonoperating income (expense).
of the same issuer with such changes recorded through
Dividends received are recorded as dividend income
net income within nonoperating income (expense).
within nonoperating income (expense).
Dividends received are recorded as dividend income
within nonoperating income (expense).
Equity Method. The Company applies the equity method of
accounting for equity investments where the Company
Equity Method. The Company applies the equity method of
does not consolidate the investee, but can exert
accounting for equity investments where the Company
significant influence over the financial and operating
does not consolidate the investee, but can exert
policies of the investee. The evaluation of whether the
significant influence over the financial and operating
Company exerts control or significant influence over the
policies of the investee. The evaluation of whether the
financial and operational policies of its investees is based
Company exerts control or significant influence over the
on the facts and circumstances surrounding each
financial and operational policies of its investees is based
individual investment. Factors considered in these
on the facts and circumstances surrounding each
evaluations may include the type of investment, the legal
individual investment. Factors considered in these
structure of the investee, the terms of BlackRock’s
evaluations may include the type of investment, the legal
contractual agreements, including investor voting or other
structure of the investee, the terms of BlackRock’s
rights, any influence BlackRock may have on the
contractual agreements, including investor voting or other
governing board of the investee, the legal rights of other
rights, any influence BlackRock may have on the
investors in the entity pursuant to the entity’s operating
governing board of the investee, the legal rights of other
documents and the relationship between BlackRock and
investors in the entity pursuant to the entity’s operating
other investors in the entity. The Company’s share of the
documents and the relationship between BlackRock and
investee’s underlying net income or loss is recorded as net
other investors in the entity. The Company’s share of the
gain (loss) on investments within nonoperating income
investee’s underlying net income or loss is recorded as net
(expense) and as other revenue for certain strategic
gain (loss) on investments within nonoperating income
minority investments since such investees are considered
(expense) and as other revenue for certain strategic
to be an extension of the Company’s core business. The
minority investments since such investees are considered
Company’s share of net income of the investee is recorded
to be an extension of the Company’s core business. The
based upon the most current information available at the
Company’s share of net income of the investee is recorded
time, which may precede the date of the consolidated
based upon the most current information available at the
statement of financial condition. Distributions received
time, which may precede the date of the consolidated
reduce the Company’s carrying value of the investment
statement of financial condition. Distributions received
and the cost basis if deemed to be a return of capital. The
reduce the Company’s carrying value of the investment
Company classifies distributions in the consolidated
and the cost basis if deemed to be a return of capital. The
statements of cash flows as either distributions of
Company classifies distributions in the consolidated
earnings (operating) or distributions of capital (investing)
statements of cash flows as either distributions of
based on the nature of the distribution.
earnings (operating) or distributions of capital (investing)
based on the nature of the distribution.
Impairments of Investments. Management periodically
assesses equity method, nonmarketable investments, and
Impairments of Investments. Management periodically
held-to-maturity investments for impairment. If
assesses equity method, nonmarketable investments, and
impairment exists, an impairment charge would be
held-to-maturity investments for impairment. If
recorded for the excess of the carrying amount of the
impairment exists, an impairment charge would be
investment over its estimated fair value in the
recorded for the excess of the carrying amount of the
consolidated statements of income.
investment over its estimated fair value in the
consolidated statements of income.
For equity method investments and nonmarketable
investments, impairment evaluation considers qualitative
For equity method investments and nonmarketable
factors, including the financial conditions and specific
investments, impairment evaluation considers qualitative
events related to an investee, that may indicate the fair
factors, including the financial conditions and specific
value of the investment is less than its carrying value. For
events related to an investee, that may indicate the fair
held-to-maturity investments, impairment is evaluated
value of the investment is less than its carrying value. For
using market values, where available, or the expected
held-to-maturity investments, impairment is evaluated
future cash flows of the investment.
using market values, where available, or the expected
future cash flows of the investment.
For the Company’s investments in CLOs, the Company
reviews cash flow estimates over the life of each CLO
For the Company’s investments in CLOs, the Company
investment. On a quarterly basis, if the present value of
reviews cash flow estimates over the life of each CLO
the estimated future cash flows is lower than the carrying
investment. On a quarterly basis, if the present value of
the estimated future cash flows is lower than the carrying
BlackRock | 2023 Form 10-K
F-10
value of the investment and there is an adverse change in
estimated cash flows, an impairment is considered to be
value of the investment and there is an adverse change in
other-than-temporary.
estimated cash flows, an impairment is considered to be
other-than-temporary.
Consolidation. The Company performs an analysis for
investment products to determine if the product is a VIE or
Consolidation. The Company performs an analysis for
a VRE. Factors considered in this analysis include the
investment products to determine if the product is a VIE or
entity’s legal organization, the entity’s capital structure,
a VRE. Factors considered in this analysis include the
the rights of equity investment holders and the Company’s
entity’s legal organization, the entity’s capital structure,
contractual involvement with, and economic interest in,
the rights of equity investment holders and the Company’s
the entity and any related party or de facto agent
contractual involvement with, and economic interest in,
implications of the Company’s involvement with the entity.
the entity and any related party or de facto agent
Entities that are determined to be VIEs are consolidated if
implications of the Company’s involvement with the entity.
the Company is the primary beneficiary (“PB”) of the
Entities that are determined to be VIEs are consolidated if
entity. VREs are typically consolidated if the Company
the Company is the primary beneficiary (“PB”) of the
holds the majority voting interest. Upon the occurrence of
entity. VREs are typically consolidated if the Company
certain events (such as contributions and redemptions,
holds the majority voting interest. Upon the occurrence of
either by the Company, or third parties, or amendments to
certain events (such as contributions and redemptions,
an entity’s governing documents), management reviews
either by the Company, or third parties, or amendments to
and reconsiders its previous conclusion regarding the
an entity’s governing documents), management reviews
status of an entity as a VIE or a VRE.
and reconsiders its previous conclusion regarding the
status of an entity as a VIE or a VRE.
Consolidation of Variable Interest Entities. Certain
investment products for which a controlling financial
Consolidation of Variable Interest Entities. Certain
interest is achieved through arrangements that do not
investment products for which a controlling financial
involve or are not directly linked to voting interests are
interest is achieved through arrangements that do not
deemed consolidated VIEs. BlackRock reviews factors,
involve or are not directly linked to voting interests are
including whether or not (1) the entity has equity at risk
deemed consolidated VIEs. BlackRock reviews factors,
that is sufficient to permit the entity to finance its
including whether or not (1) the entity has equity at risk
activities without additional subordinated support from
that is sufficient to permit the entity to finance its
other parties and (2) the equity holders at risk have the
activities without additional subordinated support from
obligation to absorb losses, the right to receive residual
other parties and (2) the equity holders at risk have the
returns, and the right to direct the activities of the entity
obligation to absorb losses, the right to receive residual
that most significantly impact the entity’s economic
returns, and the right to direct the activities of the entity
performance, to determine if the investment product is a
that most significantly impact the entity’s economic
VIE.
performance, to determine if the investment product is a
VIE.
The PB of a VIE is defined as the variable interest holder
that has a controlling financial interest in the VIE. A
The PB of a VIE is defined as the variable interest holder
controlling financial interest is defined as (1) the power to
that has a controlling financial interest in the VIE. A
direct the activities of the VIE that most significantly
controlling financial interest is defined as (1) the power to
impact its economic performance and (2) the obligation to
direct the activities of the VIE that most significantly
absorb losses of the entity or the right to receive benefits
impact its economic performance and (2) the obligation to
from the entity that potentially could be significant to the
absorb losses of the entity or the right to receive benefits
VIE. The Company generally consolidates VIEs in which it
from the entity that potentially could be significant to the
holds an economic interest of 10% or greater and
VIE. The Company generally consolidates VIEs in which it
deconsolidates such VIEs once economic interest falls
holds an economic interest of 10% or greater and
below 10%.
deconsolidates such VIEs once economic interest falls
below 10%.
Management continually reconsiders whether the
Company is deemed to be a VIE’s PB.
Management continually reconsiders whether the
Company is deemed to be a VIE’s PB.
Consolidation of Voting Rights Entities. BlackRock is
required to consolidate an investee to the extent that
Consolidation of Voting Rights Entities. BlackRock is
BlackRock can exert absolute control over the financial
required to consolidate an investee to the extent that
and operating policies of the investee, which generally
BlackRock can exert absolute control over the financial
exists if there is a greater than 50% voting equity interest.
and operating policies of the investee, which generally
exists if there is a greater than 50% voting equity interest.
Retention of Specialized Investment Company Accounting
Principles. Upon consolidation of sponsored investment
Retention of Specialized Investment Company Accounting
products, the Company retains the specialized investment
Principles. Upon consolidation of sponsored investment
company accounting principles of the underlying funds.
products, the Company retains the specialized investment
All of the underlying investments held by such CIPs are
company accounting principles of the underlying funds.
carried at fair value with corresponding changes in the
All of the underlying investments held by such CIPs are
investments’ fair values reflected in net income within
carried at fair value with corresponding changes in the
nonoperating income (expense). When the Company no
investments’ fair values reflected in net income within
longer controls these funds due to reduced ownership
nonoperating income (expense). When the Company no
percentage or other reasons, the funds are deconsolidated
longer controls these funds due to reduced ownership
percentage or other reasons, the funds are deconsolidated
F-11 BlackRock | 2023 Form 10-K
and accounted for as an equity method investment or
equity securities FVTNI.
and accounted for as an equity method investment or
equity securities FVTNI.
Separate Account Assets and Liabilities. Separate
account assets are maintained by BlackRock Life Limited,
Separate Account Assets and Liabilities. Separate
a wholly owned subsidiary of the Company, which is a
account assets are maintained by BlackRock Life Limited,
registered life insurance company in the United Kingdom
a wholly owned subsidiary of the Company, which is a
(“UK”), and represent segregated assets held for purposes
registered life insurance company in the United Kingdom
of funding individual and group pension contracts. The life
(“UK”), and represent segregated assets held for purposes
insurance company does not underwrite any insurance
of funding individual and group pension contracts. The life
contracts that involve any insurance risk transfer from the
insurance company does not underwrite any insurance
insured to the life insurance company. The separate
contracts that involve any insurance risk transfer from the
account assets primarily include equity securities, debt
insured to the life insurance company. The separate
securities, money market funds and derivatives. The
account assets primarily include equity securities, debt
separate account assets are not subject to general claims
securities, money market funds and derivatives. The
of the creditors of BlackRock. These separate account
separate account assets are not subject to general claims
assets and the related equal and offsetting liabilities are
of the creditors of BlackRock. These separate account
recorded as separate account assets and separate
assets and the related equal and offsetting liabilities are
account liabilities on the consolidated statements of
recorded as separate account assets and separate
financial condition.
account liabilities on the consolidated statements of
financial condition.
The net investment income attributable to separate
account assets supporting individual and group pension
The net investment income attributable to separate
contracts accrues directly to the contract owner and is not
account assets supporting individual and group pension
reported on the consolidated statements of income. While
contracts accrues directly to the contract owner and is not
BlackRock has no economic interest in these separate
reported on the consolidated statements of income. While
account assets and liabilities, BlackRock earns policy
BlackRock has no economic interest in these separate
administration and management fees associated with
account assets and liabilities, BlackRock earns policy
these products, which are included in investment advisory,
administration and management fees associated with
administration fees and securities lending revenue on the
these products, which are included in investment advisory,
consolidated statements of income.
administration fees and securities lending revenue on the
consolidated statements of income.
Separate Account Collateral Assets Held and Liabilities
Under Securities Lending Agreements. The Company
Separate Account Collateral Assets Held and Liabilities
facilitates securities lending arrangements whereby
Under Securities Lending Agreements. The Company
securities held by separate accounts maintained by
facilitates securities lending arrangements whereby
BlackRock Life Limited are lent to third parties under
securities held by separate accounts maintained by
global master securities lending agreements. In exchange,
BlackRock Life Limited are lent to third parties under
the Company receives collateral by obtaining either
global master securities lending agreements. In exchange,
(1) legal title or (2) first ranking priority security interest.
the Company receives collateral by obtaining either
The minimum collateral values generally range from
(1) legal title or (2) first ranking priority security interest.
approximately 102% to 112% of the value of the
The minimum collateral values generally range from
securities lent in order to reduce counterparty risk. The
approximately 102% to 112% of the value of the
required collateral value is calculated on a daily basis. The
securities lent in order to reduce counterparty risk. The
global master securities lending agreements provide the
required collateral value is calculated on a daily basis. The
Company the right to request additional collateral or, in
global master securities lending agreements provide the
the event of borrower default, the right to liquidate
Company the right to request additional collateral or, in
collateral. The securities lending transactions entered into
the event of borrower default, the right to liquidate
by the Company are accompanied by an agreement that
collateral. The securities lending transactions entered into
entitles the Company to request the borrower to return the
by the Company are accompanied by an agreement that
securities at any time; therefore, these transactions are
entitles the Company to request the borrower to return the
not reported as sales.
securities at any time; therefore, these transactions are
not reported as sales.
In situations where the Company receives the legal title to
collateral under these securities lending arrangements,
In situations where the Company receives the legal title to
the Company records an asset on the consolidated
collateral under these securities lending arrangements,
statements of financial condition and an equal collateral
the Company records an asset on the consolidated
liability for the obligation to return the collateral.
statements of financial condition and an equal collateral
Additionally, in situations where the Company obtains a
liability for the obligation to return the collateral.
first ranking priority security interest in the collateral, the
Additionally, in situations where the Company obtains a
Company does not have the ability to pledge or resell the
first ranking priority security interest in the collateral, the
collateral and therefore does not record the collateral on
Company does not have the ability to pledge or resell the
the consolidated statements of financial condition. At
collateral and therefore does not record the collateral on
December 31, 2023 and 2022, the fair value of loaned
the consolidated statements of financial condition. At
securities held by separate accounts was approximately
December 31, 2023 and 2022, the fair value of loaned
$9.3 billion and $10.2 billion, respectively, and the fair
securities held by separate accounts was approximately
value of the collateral under these securities lending
$9.3 billion and $10.2 billion, respectively, and the fair
agreements was approximately $10.1 billion and
value of the collateral under these securities lending
agreements was approximately $10.1 billion and
F-11
BlackRock | 2023 Form 10-K
$11.0 billion, respectively, of which approximately
$4.6 billion as of 2023 and $5.8 billion as of 2022 was
$11.0 billion, respectively, of which approximately
recognized on the consolidated statements of financial
$4.6 billion as of 2023 and $5.8 billion as of 2022 was
condition. During 2023 and 2022, the Company had not
recognized on the consolidated statements of financial
resold or repledged any of the collateral received under
condition. During 2023 and 2022, the Company had not
these arrangements. The securities lending revenue
resold or repledged any of the collateral received under
earned from lending securities held by the separate
these arrangements. The securities lending revenue
accounts is included in investment advisory,
earned from lending securities held by the separate
administration fees and securities lending revenue on the
accounts is included in investment advisory,
consolidated statements of income.
administration fees and securities lending revenue on the
consolidated statements of income.
Property and Equipment. Property and equipment are
recorded at cost less accumulated depreciation.
Property and Equipment. Property and equipment are
Depreciation is generally determined by cost less any
recorded at cost less accumulated depreciation.
estimated residual value using the straight-line method
Depreciation is generally determined by cost less any
over the estimated useful lives of the various classes of
estimated residual value using the straight-line method
property and equipment. Leasehold improvements are
over the estimated useful lives of the various classes of
amortized using the straight-line method over the shorter
property and equipment. Leasehold improvements are
of the estimated useful life or the remaining lease term.
amortized using the straight-line method over the shorter
of the estimated useful life or the remaining lease term.
The Company capitalizes certain costs incurred in
connection with developing or obtaining software within
The Company capitalizes certain costs incurred in
property and equipment. Capitalized software costs are
connection with developing or obtaining software within
amortized, beginning when the software product is ready
property and equipment. Capitalized software costs are
for its intended use, over the estimated useful life of the
amortized, beginning when the software product is ready
software of approximately three years.
for its intended use, over the estimated useful life of the
software of approximately three years.
Goodwill and Intangible Assets. Goodwill represents the
cost of a business acquisition in excess of the fair value of
Goodwill and Intangible Assets. Goodwill represents the
the net assets acquired. The Company has determined
cost of a business acquisition in excess of the fair value of
that it has one reporting unit for goodwill impairment
the net assets acquired. The Company has determined
testing purposes, the consolidated BlackRock single
that it has one reporting unit for goodwill impairment
operating segment, which is consistent with internal
testing purposes, the consolidated BlackRock single
management reporting and management’s oversight of
operating segment, which is consistent with internal
operations. The Company performs an impairment
management reporting and management’s oversight of
assessment of its goodwill at least annually, as of July
operations. The Company performs an impairment
31st. In its assessment of goodwill for impairment, the
assessment of its goodwill at least annually, as of July
Company considers such factors as the book value and
31st. In its assessment of goodwill for impairment, the
market capitalization of the Company.
Company considers such factors as the book value and
market capitalization of the Company.
Intangible assets are comprised of indefinite-lived
intangible assets and finite-lived intangible assets
Intangible assets are comprised of indefinite-lived
acquired in a business acquisition. The value of contracts
intangible assets and finite-lived intangible assets
to manage assets in proprietary open-end funds and
acquired in a business acquisition. The value of contracts
collective trust funds and certain other commingled
to manage assets in proprietary open-end funds and
products without a specified termination date is generally
collective trust funds and certain other commingled
classified as indefinite-lived intangible assets. In addition,
products without a specified termination date is generally
trade names/trademarks are considered indefinite-lived
classified as indefinite-lived intangible assets. In addition,
intangible assets when they are expected to generate cash
trade names/trademarks are considered indefinite-lived
flows indefinitely.
intangible assets when they are expected to generate cash
flows indefinitely.
Indefinite-lived intangible assets and goodwill are not
amortized. Finite-lived investor/customer relationships,
Indefinite-lived intangible assets and goodwill are not
technology-related assets, and management contracts,
amortized. Finite-lived investor/customer relationships,
which relate to acquired separate accounts and funds,
technology-related assets, and management contracts,
that are expected to contribute to the future cash flows of
which relate to acquired separate accounts and funds,
the Company for a specified period of time, are amortized
that are expected to contribute to the future cash flows of
over their estimated useful lives. On a quarterly basis, the
the Company for a specified period of time, are amortized
Company considers whether the indefinite-lived and
over their estimated useful lives. On a quarterly basis, the
finite-lived classifications are still appropriate.
Company considers whether the indefinite-lived and
finite-lived classifications are still appropriate.
The Company performs assessments to determine if any
intangible assets are potentially impaired at least
The Company performs assessments to determine if any
annually, as of July 31st. The carrying value of finite-lived
intangible assets are potentially impaired at least
assets and their remaining useful lives are reviewed to
annually, as of July 31st. The carrying value of finite-lived
determine if circumstances exist which may indicate a
assets and their remaining useful lives are reviewed to
potential impairment or revisions to the amortization
determine if circumstances exist which may indicate a
period.
potential impairment or revisions to the amortization
period.
F-12 BlackRock | 2023 Form 10-K
In evaluating whether it is more likely than not that the fair
value of indefinite-lived intangibles is less than its
In evaluating whether it is more likely than not that the fair
carrying value, BlackRock assesses various significant
value of indefinite-lived intangibles is less than its
quantitative factors, including assets under management
carrying value, BlackRock assesses various significant
(“AUM”), revenue basis points, projected AUM growth
quantitative factors, including assets under management
rates, operating margins, tax rates and discount rates. If
(“AUM”), revenue basis points, projected AUM growth
an indefinite-lived intangible is determined to be more
rates, operating margins, tax rates and discount rates. If
likely than not impaired, then the fair value of the asset is
an indefinite-lived intangible is determined to be more
compared with its carrying value and any excess of the
likely than not impaired, then the fair value of the asset is
carrying value over the fair value would be recognized as
compared with its carrying value and any excess of the
an expense in the period in which the impairment occurs.
carrying value over the fair value would be recognized as
an expense in the period in which the impairment occurs.
For finite-lived intangible assets, if potential impairment
circumstances are considered to exist, the Company will
For finite-lived intangible assets, if potential impairment
perform a recoverability test using an undiscounted cash
circumstances are considered to exist, the Company will
flow analysis. If the carrying value of the asset is
perform a recoverability test using an undiscounted cash
determined not to be recoverable based on the
flow analysis. If the carrying value of the asset is
undiscounted cash flow test, the difference between the
determined not to be recoverable based on the
carrying value of the asset and its current fair value would
undiscounted cash flow test, the difference between the
be recognized as an expense in the period in which the
carrying value of the asset and its current fair value would
impairment occurs.
be recognized as an expense in the period in which the
impairment occurs.
Consolidated Affiliate. The Company owns 50.1% of an
asset management company in China—BlackRock CCB
Consolidated Affiliate. The Company owns 50.1% of an
Wealth Management Company Ltd. (“WMC”). The
asset management company in China—BlackRock CCB
Company consolidates WMC, which it deems to be a VRE,
Wealth Management Company Ltd. (“WMC”). The
because it exerts control over the financial and operating
Company consolidates WMC, which it deems to be a VRE,
policies of the entity, based on the Company’s 50.1%
because it exerts control over the financial and operating
ownership and voting rights.
policies of the entity, based on the Company’s 50.1%
ownership and voting rights.
Noncontrolling Interests. NCI consist of third-party
investments in the Company’s CIPs (“NCI – CIPs”) and the
Noncontrolling Interests. NCI consist of third-party
WMC. The Company reports NCI in stockholders’ equity,
investments in the Company’s CIPs (“NCI – CIPs”) and the
separate from the parent’s equity, on the consolidated
WMC. The Company reports NCI in stockholders’ equity,
statements of financial condition. NCI that are redeemable
separate from the parent’s equity, on the consolidated
at the option of the holders are classified as temporary
statements of financial condition. NCI that are redeemable
equity at estimated redemption value and nonredeemable
at the option of the holders are classified as temporary
NCI are classified as a component of permanent equity in
equity at estimated redemption value and nonredeemable
the consolidated statements of financial condition. In
NCI are classified as a component of permanent equity in
addition, the Company reports net income (loss)
the consolidated statements of financial condition. In
attributable to redeemable and nonredeemable NCI
addition, the Company reports net income (loss)
holders in net income (loss) attributable to NCI in the
attributable to redeemable and nonredeemable NCI
consolidated statements of income.
holders in net income (loss) attributable to NCI in the
consolidated statements of income.
Treasury Stock. The Company records common stock
purchased for treasury at cost. At the date of subsequent
Treasury Stock. The Company records common stock
reissuance, the treasury stock account is reduced by the
purchased for treasury at cost. At the date of subsequent
cost of such stock using the average cost method.
reissuance, the treasury stock account is reduced by the
cost of such stock using the average cost method.
Revenue Recognition. Revenue is recognized upon
transfer of control of promised services to customers in an
Revenue Recognition. Revenue is recognized upon
amount to which the Company expects to be entitled in
transfer of control of promised services to customers in an
exchange for those services. The Company enters into
amount to which the Company expects to be entitled in
contracts that can include multiple services, which are
exchange for those services. The Company enters into
accounted for separately if they are determined to be
contracts that can include multiple services, which are
distinct. Consideration for the Company’s services is
accounted for separately if they are determined to be
generally in the form of variable consideration because the
distinct. Consideration for the Company’s services is
amount of fees is subject to market conditions that are
generally in the form of variable consideration because the
outside of the Company’s influence. The Company includes
amount of fees is subject to market conditions that are
variable consideration in revenue when it is no longer
outside of the Company’s influence. The Company includes
probable of significant reversal, i.e. when the associated
variable consideration in revenue when it is no longer
uncertainty is resolved. For some contracts with customers,
probable of significant reversal, i.e. when the associated
the Company has discretion to involve a third party in
uncertainty is resolved. For some contracts with customers,
providing services to the customer. Generally, the Company
the Company has discretion to involve a third party in
is deemed to be the principal in these arrangements
providing services to the customer. Generally, the Company
because the Company controls the promised services
is deemed to be the principal in these arrangements
before they are transferred to customers, and accordingly
because the Company controls the promised services
presents the revenue gross of related costs.
before they are transferred to customers, and accordingly
presents the revenue gross of related costs.
BlackRock | 2023 Form 10-K
F-12
Investment Advisory, Administration Fees and Securities
Lending Revenue. Investment advisory and administration
Investment Advisory, Administration Fees and Securities
fees are recognized as the services are performed over
Lending Revenue. Investment advisory and administration
time because the customer is receiving and consuming
fees are recognized as the services are performed over
the benefits as they are provided by the Company. Fees
time because the customer is receiving and consuming
are primarily based on agreed-upon percentages of AUM
the benefits as they are provided by the Company. Fees
and recognized for services provided during the period,
are primarily based on agreed-upon percentages of AUM
which are distinct from services provided in other periods.
and recognized for services provided during the period,
Such fees are affected by changes in AUM, including
which are distinct from services provided in other periods.
market appreciation or depreciation, foreign exchange
Such fees are affected by changes in AUM, including
translation and net inflows or outflows. Investment
market appreciation or depreciation, foreign exchange
advisory and administration fees for investment funds are
translation and net inflows or outflows. Investment
shown net of fee waivers. In addition, the Company may
advisory and administration fees for investment funds are
contract with third parties to provide sub-advisory services
shown net of fee waivers. In addition, the Company may
on its behalf. The Company presents the investment
contract with third parties to provide sub-advisory services
advisory fees and associated costs to such third-party
on its behalf. The Company presents the investment
advisors on a gross basis where it is deemed to be the
advisory fees and associated costs to such third-party
principal and on a net basis where it is deemed to be the
advisors on a gross basis where it is deemed to be the
agent. Management judgment involved in making these
principal and on a net basis where it is deemed to be the
assessments is focused on ascertaining whether the
agent. Management judgment involved in making these
Company is primarily responsible for fulfilling the
assessments is focused on ascertaining whether the
promised service.
Company is primarily responsible for fulfilling the
promised service.
The Company also earns revenue by lending securities on
behalf of clients, primarily to highly rated banks and
The Company also earns revenue by lending securities on
broker-dealers. The securities loaned are collateralized by
behalf of clients, primarily to highly rated banks and
either cash or securities, generally ranging from 102%
broker-dealers. The securities loaned are collateralized by
to 112% of the value of the loaned securities. Securities
either cash or securities, generally ranging from 102%
lending fees are based on (1) a percentage of the notional
to 112% of the value of the loaned securities. Securities
value of the loaned securities and (2) a spread between
lending fees are based on (1) a percentage of the notional
the interest earned on the reinvested cash collateral and
value of the loaned securities and (2) a spread between
the amount rebated to the borrower. Revenue is
the interest earned on the reinvested cash collateral and
recognized over time as services are performed. Generally,
the amount rebated to the borrower. Revenue is
the securities lending fees are shared between the
recognized over time as services are performed. Generally,
Company and the funds or other third-party accounts
the securities lending fees are shared between the
managed by the Company from which the securities are
Company and the funds or other third-party accounts
borrowed. For 2023, 2022 and 2021, securities lending
managed by the Company from which the securities are
revenue earned by the Company totaled $675 million,
borrowed. For 2023, 2022 and 2021, securities lending
$599 million and $555 million, respectively, and is
revenue earned by the Company totaled $675 million,
recorded in investment advisory, administration and
$599 million and $555 million, respectively, and is
securities lending revenue on the consolidated statements
recorded in investment advisory, administration and
of income. Investment advisory, administration fees and
securities lending revenue on the consolidated statements
securities lending revenue are reported together as the
of income. Investment advisory, administration fees and
fees for these services often are agreed upon with clients
securities lending revenue are reported together as the
as a bundled fee.
fees for these services often are agreed upon with clients
as a bundled fee.
Money Market Fee Waivers. The Company may voluntarily
waive a portion of its management fees on certain money
Money Market Fee Waivers. The Company may voluntarily
market funds to ensure that they maintain a targeted level
waive a portion of its management fees on certain money
of daily net investment income (the “Yield Support
market funds to ensure that they maintain a targeted level
waivers”). There were no Yield Support waivers during
of daily net investment income (the “Yield Support
2023. During 2022 and 2021, these waivers resulted in a
waivers”). There were no Yield Support waivers during
reduction of management fees of approximately
2023. During 2022 and 2021, these waivers resulted in a
$72 million, and $500 million respectively, which was
reduction of management fees of approximately
partially offset by a reduction of BlackRock’s distribution
$72 million, and $500 million respectively, which was
and servicing costs paid to financial intermediaries. The
partially offset by a reduction of BlackRock’s distribution
Company may increase or decrease the level of Yield
and servicing costs paid to financial intermediaries. The
Support waivers in future periods.
Company may increase or decrease the level of Yield
Support waivers in future periods.
Investment Advisory Performance Fees / Carried Interest.
The Company receives investment advisory performance
Investment Advisory Performance Fees / Carried Interest.
fees, including incentive allocations (carried interest) from
The Company receives investment advisory performance
certain actively managed investment funds and certain
fees, including incentive allocations (carried interest) from
separately managed accounts. These performance fees
certain actively managed investment funds and certain
are dependent upon exceeding specified relative or
separately managed accounts. These performance fees
absolute investment return thresholds, which vary by
are dependent upon exceeding specified relative or
product or account, and include monthly, quarterly,
absolute investment return thresholds, which vary by
annual or longer measurement periods.
product or account, and include monthly, quarterly,
annual or longer measurement periods.
F-13 BlackRock | 2023 Form 10-K
Performance fees, including carried interest, are
generated on certain management contracts when
Performance fees, including carried interest, are
performance hurdles are achieved. Such performance fees
generated on certain management contracts when
are recognized when the contractual performance criteria
performance hurdles are achieved. Such performance fees
have been met and when it is determined that they are no
are recognized when the contractual performance criteria
longer probable of significant reversal. Given the unique
have been met and when it is determined that they are no
nature of each fee arrangement, contracts with customers
longer probable of significant reversal. Given the unique
are evaluated on an individual basis to determine the
nature of each fee arrangement, contracts with customers
timing of revenue recognition. Significant judgment is
are evaluated on an individual basis to determine the
involved in making such determination. Performance fees
timing of revenue recognition. Significant judgment is
typically arise from investment management services that
involved in making such determination. Performance fees
began in prior reporting periods. Consequently, a portion
typically arise from investment management services that
of the fees the Company recognizes may be partially
began in prior reporting periods. Consequently, a portion
related to the services performed in prior periods that
of the fees the Company recognizes may be partially
meet the recognition criteria in the current period. At each
related to the services performed in prior periods that
reporting date, the Company considers various factors in
meet the recognition criteria in the current period. At each
estimating performance fees to be recognized, including
reporting date, the Company considers various factors in
carried interest.
estimating performance fees to be recognized, including
carried interest.
The Company is allocated carried interest from certain
alternative investment products upon exceeding
The Company is allocated carried interest from certain
performance thresholds. The Company may be required to
alternative investment products upon exceeding
reverse/return all, or part, of such carried interest
performance thresholds. The Company may be required to
allocations/distributions depending upon future
reverse/return all, or part, of such carried interest
performance of these funds. Carried interest subject to
allocations/distributions depending upon future
such clawback provisions is recorded in investments or
performance of these funds. Carried interest subject to
cash and cash equivalents to the extent that it is
such clawback provisions is recorded in investments or
distributed, on its consolidated statements of financial
cash and cash equivalents to the extent that it is
condition.
distributed, on its consolidated statements of financial
condition.
The Company records a liability for deferred carried
interest to the extent it receives cash or capital allocations
The Company records a liability for deferred carried
related to carried interest prior to meeting the revenue
interest to the extent it receives cash or capital allocations
recognition criteria. A portion of the deferred carried
related to carried interest prior to meeting the revenue
interest may also be paid to certain employees. The
recognition criteria. A portion of the deferred carried
ultimate timing of the recognition of performance fee
interest may also be paid to certain employees. The
revenue and related compensation expense, if any, is
ultimate timing of the recognition of performance fee
unknown.
revenue and related compensation expense, if any, is
unknown.
Technology services revenue. The Company offers
investment management technology systems, risk
Technology services revenue. The Company offers
management services, wealth management and digital
investment management technology systems, risk
distribution tools, all on a fee basis. Clients include banks,
management services, wealth management and digital
insurance companies, official institutions, pension funds,
distribution tools, all on a fee basis. Clients include banks,
asset managers, retail distributors and other investors.
insurance companies, official institutions, pension funds,
Fees earned for technology services are primarily recorded
asset managers, retail distributors and other investors.
as services are performed over time and are generally
Fees earned for technology services are primarily recorded
determined using the value of positions on the Aladdin
as services are performed over time and are generally
platform, or on a fixed-rate basis. Revenue derived from
determined using the value of positions on the Aladdin
the sale of software licenses is recognized upon the
platform, or on a fixed-rate basis. Revenue derived from
granting of access rights.
the sale of software licenses is recognized upon the
granting of access rights.
Distribution Fees. The Company earns distribution and
service fees related to distributing investment products
Distribution Fees. The Company earns distribution and
and shareholder support services for investment
service fees related to distributing investment products
portfolios. Distribution fees are passed-through to third-
and shareholder support services for investment
party distributors, which perform various fund distribution
portfolios. Distribution fees are passed-through to third-
services and shareholder servicing of certain funds on the
party distributors, which perform various fund distribution
Company’s behalf, and are recognized as distribution and
services and shareholder servicing of certain funds on the
servicing costs. The Company presents distribution fees
Company’s behalf, and are recognized as distribution and
and related distribution and servicing costs incurred on a
servicing costs. The Company presents distribution fees
gross basis.
and related distribution and servicing costs incurred on a
gross basis.
Distribution fees primarily consist of ongoing distribution
fees, shareholder servicing fees and upfront sales
Distribution fees primarily consist of ongoing distribution
commissions for serving as the principal underwriter and/
fees, shareholder servicing fees and upfront sales
or distributor for certain managed mutual funds. The
commissions for serving as the principal underwriter and/
service of distribution is satisfied at the point in time when
or distributor for certain managed mutual funds. The
service of distribution is satisfied at the point in time when
BlackRock | 2023 Form 10-K
F-13
an investor makes an investment in a share class of the
managed mutual funds. Fees are generally considered
an investor makes an investment in a share class of the
variable consideration because they are based on the
managed mutual funds. Fees are generally considered
value of AUM and are uncertain on trade date. Accordingly,
variable consideration because they are based on the
the Company recognizes distribution fees when the
value of AUM and are uncertain on trade date. Accordingly,
amounts become known and the portion recognized in the
the Company recognizes distribution fees when the
current period may relate to distribution services
amounts become known and the portion recognized in the
performed in prior periods. Upfront sales commissions are
current period may relate to distribution services
recognized on a trade date basis. Shareholder servicing
performed in prior periods. Upfront sales commissions are
fees are based on AUM and recognized in revenue as the
recognized on a trade date basis. Shareholder servicing
services are performed.
fees are based on AUM and recognized in revenue as the
services are performed.
Advisory and other revenue. Advisory and other revenue
primarily includes fees earned for advisory services, fees
Advisory and other revenue. Advisory and other revenue
earned for transition management services primarily
primarily includes fees earned for advisory services, fees
comprised of commissions recognized in connection with
earned for transition management services primarily
buying and selling securities on behalf of customers, and
comprised of commissions recognized in connection with
equity method investment earnings related to certain
buying and selling securities on behalf of customers, and
strategic minority investments.
equity method investment earnings related to certain
strategic minority investments.
Advisory services fees are determined using fixed-rate fees
and are recognized over time as the related services are
Advisory services fees are determined using fixed-rate fees
completed.
and are recognized over time as the related services are
completed.
Commissions related to transition management services
are recorded on a trade-date basis as transactions occur.
Commissions related to transition management services
are recorded on a trade-date basis as transactions occur.
Stock-based Compensation. The Company recognizes
compensation cost for equity classified awards based on
Stock-based Compensation. The Company recognizes
the grant-date fair value of the award. The compensation
compensation cost for equity classified awards based on
cost is recognized over the period during which an
the grant-date fair value of the award. The compensation
employee is required to provide service (usually the
cost is recognized over the period during which an
vesting period) in exchange for the stock-based award.
employee is required to provide service (usually the
vesting period) in exchange for the stock-based award.
The Company measures the grant-date fair value of
restricted stock units (“RSUs”) using the Company’s stock
The Company measures the grant-date fair value of
price on the date of grant. Stock-based awards may have
restricted stock units (“RSUs”) using the Company’s stock
performance, market and/or service conditions. For
price on the date of grant. Stock-based awards may have
employee stock options and awards with market
performance, market and/or service conditions. For
conditions, the Company uses pricing models.
employee stock options and awards with market
Compensation cost for awards containing performance
conditions, the Company uses pricing models.
conditions is recognized if it is probable that the conditions
Compensation cost for awards containing performance
will be achieved. The probability of achievement is
conditions is recognized if it is probable that the conditions
assessed on a quarterly basis. If a stock-based award is
will be achieved. The probability of achievement is
modified after the grant-date, incremental compensation
assessed on a quarterly basis. If a stock-based award is
cost is recognized for an amount equal to the excess of the
modified after the grant-date, incremental compensation
fair value of the modified award over the fair value of the
cost is recognized for an amount equal to the excess of the
original award immediately before the modification.
fair value of the modified award over the fair value of the
Awards under the Company’s stock-based compensation
original award immediately before the modification.
plans vest over various periods. Compensation cost is
Awards under the Company’s stock-based compensation
recorded by the Company on a straight-line basis over the
plans vest over various periods. Compensation cost is
requisite service period for each separate vesting portion of
recorded by the Company on a straight-line basis over the
the award as if the award is, in-substance, multiple awards
requisite service period for each separate vesting portion of
and is adjusted for actual forfeitures as they occur.
the award as if the award is, in-substance, multiple awards
and is adjusted for actual forfeitures as they occur.
The Company amortizes the grant-date fair value of stock-
based compensation awards made to retirement-eligible
The Company amortizes the grant-date fair value of stock-
employees over the requisite service period. Upon
based compensation awards made to retirement-eligible
notification of retirement, the Company accelerates the
employees over the requisite service period. Upon
unamortized portion of the award over the contractually
notification of retirement, the Company accelerates the
required retirement notification period.
unamortized portion of the award over the contractually
required retirement notification period.
The Company recognizes all excess tax benefits and
deficiencies in income tax expense on the consolidated
The Company recognizes all excess tax benefits and
statements of income, which results in volatility of income
deficiencies in income tax expense on the consolidated
tax expense as a result of fluctuations in the Company’s
statements of income, which results in volatility of income
stock price. Accordingly, the Company recorded a discrete
tax expense as a result of fluctuations in the Company’s
income tax benefit of $41 million, $87 million and
stock price. Accordingly, the Company recorded a discrete
income tax benefit of $41 million, $87 million and
F-14 BlackRock | 2023 Form 10-K
$43 million during 2023, 2022 and 2021, respectively, for
vested RSUs where the grant date stock price was lower
$43 million during 2023, 2022 and 2021, respectively, for
than the vesting date stock price.
vested RSUs where the grant date stock price was lower
than the vesting date stock price.
Distribution and Servicing Costs. Distribution and
servicing costs include payments to third parties, primarily
Distribution and Servicing Costs. Distribution and
associated with distribution and servicing of client
servicing costs include payments to third parties, primarily
investments in certain BlackRock products. Distribution
associated with distribution and servicing of client
and servicing costs are expensed as incurred.
investments in certain BlackRock products. Distribution
and servicing costs are expensed as incurred.
Direct Fund Expense. Direct fund expense, which is
expensed as incurred, primarily consists of third-party
Direct Fund Expense. Direct fund expense, which is
nonadvisory expense incurred by BlackRock related to
expensed as incurred, primarily consists of third-party
certain investment products for the use of certain index
nonadvisory expense incurred by BlackRock related to
trademarks, reference data for certain indices, custodial
certain investment products for the use of certain index
services, fund administration, fund accounting, transfer
trademarks, reference data for certain indices, custodial
agent services, shareholder reporting services, audit and
services, fund administration, fund accounting, transfer
tax services as well as other fund-related expense directly
agent services, shareholder reporting services, audit and
attributable to the nonadvisory operations of the fund.
tax services as well as other fund-related expense directly
attributable to the nonadvisory operations of the fund.
Leases. The Company determines if a contract is a lease or
contains a lease at inception. The Company accounts for
Leases. The Company determines if a contract is a lease or
its office facility leases as operating leases, which may
contains a lease at inception. The Company accounts for
include escalation clauses that are based on an index or
its office facility leases as operating leases, which may
market rate. The Company accounts for lease and
include escalation clauses that are based on an index or
non-lease components, including common areas
market rate. The Company accounts for lease and
maintenance charges, as a single component for its
non-lease components, including common areas
leases. The Company elected the short-term lease
maintenance charges, as a single component for its
exception for leases with an initial term of 12 months or
leases. The Company elected the short-term lease
less. Consequently, such leases are not recorded on the
exception for leases with an initial term of 12 months or
consolidated statements of financial condition. The
less. Consequently, such leases are not recorded on the
Company’s lease terms include options to extend or
consolidated statements of financial condition. The
terminate the lease when it is reasonably certain they will
Company’s lease terms include options to extend or
be exercised or not.
terminate the lease when it is reasonably certain they will
be exercised or not.
The Company recognizes operating right-of-use (“ROU”)
assets and operating lease liabilities on the consolidated
The Company recognizes operating right-of-use (“ROU”)
statements of financial condition based on the present
assets and operating lease liabilities on the consolidated
value of future lease payments over the lease term at the
statements of financial condition based on the present
commencement date discounted using an incremental
value of future lease payments over the lease term at the
borrowing rate (“IBR”). The IBR for individual leases is
commencement date discounted using an incremental
estimated considering the Company’s or a subsidiary’s
borrowing rate (“IBR”). The IBR for individual leases is
credit rating using various financial metrics, such as
estimated considering the Company’s or a subsidiary’s
revenue, operating margin and revenue growth, and, as
credit rating using various financial metrics, such as
appropriate, performing market analysis of yields on
revenue, operating margin and revenue growth, and, as
publicly traded bonds (secured or unsecured) with similar
appropriate, performing market analysis of yields on
terms of comparable companies in a similar economic
publicly traded bonds (secured or unsecured) with similar
environment. ROU assets are tested for impairment when
terms of comparable companies in a similar economic
there is an indication that the carrying value of an asset
environment. ROU assets are tested for impairment when
may not be recoverable. Fixed lease payments made over
there is an indication that the carrying value of an asset
the lease term are recorded as lease expense on a
may not be recoverable. Fixed lease payments made over
straight-line basis. Variable lease payments based on
the lease term are recorded as lease expense on a
usage, changes in an index or market rate are expensed as
straight-line basis. Variable lease payments based on
incurred.
usage, changes in an index or market rate are expensed as
incurred.
Foreign Exchange. Foreign currency transactions are
recorded at the exchange rates prevailing on the dates of
Foreign Exchange. Foreign currency transactions are
the transactions. Monetary assets and liabilities that are
recorded at the exchange rates prevailing on the dates of
denominated in foreign currencies are subsequently
the transactions. Monetary assets and liabilities that are
remeasured into the functional currencies of the
denominated in foreign currencies are subsequently
Company’s subsidiaries at the rates prevailing at each
remeasured into the functional currencies of the
statement of financial condition date. Gains and losses
Company’s subsidiaries at the rates prevailing at each
arising on remeasurement are included in general and
statement of financial condition date. Gains and losses
administration expense on the consolidated statements of
arising on remeasurement are included in general and
income. Revenue and expenses are translated at average
administration expense on the consolidated statements of
exchange rates during the period. Gains or losses
income. Revenue and expenses are translated at average
resulting from translating foreign currency financial
exchange rates during the period. Gains or losses
statements into United States (“US”) dollars are included
resulting from translating foreign currency financial
statements into United States (“US”) dollars are included
BlackRock | 2023 Form 10-K
F-14
in accumulated other comprehensive income (loss)
(“AOCI”), a separate component of stockholders’ equity, on
in accumulated other comprehensive income (loss)
the consolidated statements of financial condition.
(“AOCI”), a separate component of stockholders’ equity, on
the consolidated statements of financial condition.
Income Taxes. Deferred income tax assets and liabilities
are recognized for the future tax consequences
Income Taxes. Deferred income tax assets and liabilities
attributable to temporary differences between the
are recognized for the future tax consequences
financial statement carrying amounts of existing assets
attributable to temporary differences between the
and liabilities and their respective tax bases using
financial statement carrying amounts of existing assets
currently enacted tax rates in effect for the year in which
and liabilities and their respective tax bases using
the differences are expected to reverse. The effect of a
currently enacted tax rates in effect for the year in which
change in tax rates on deferred income tax assets and
the differences are expected to reverse. The effect of a
liabilities is recognized on the consolidated statements of
change in tax rates on deferred income tax assets and
income in the period that includes the enactment date.
liabilities is recognized on the consolidated statements of
income in the period that includes the enactment date.
Management periodically assesses the recoverability of its
deferred income tax assets based upon expected future
Management periodically assesses the recoverability of its
earnings, taxable income in prior carryback years, future
deferred income tax assets based upon expected future
deductibility of the asset, changes in applicable tax laws
earnings, taxable income in prior carryback years, future
and other factors. If management determines that it is not
deductibility of the asset, changes in applicable tax laws
more likely than not that the deferred tax asset will be fully
and other factors. If management determines that it is not
recoverable in the future, a valuation allowance will be
more likely than not that the deferred tax asset will be fully
established for the difference between the asset balance
recoverable in the future, a valuation allowance will be
and the amount expected to be recoverable in the future.
established for the difference between the asset balance
This allowance will result in additional income tax
and the amount expected to be recoverable in the future.
expense. Further, the Company records its income taxes
This allowance will result in additional income tax
receivable and payable based upon its estimated income
expense. Further, the Company records its income taxes
tax position.
receivable and payable based upon its estimated income
tax position.
Earnings per Share (“EPS”). Basic EPS is calculated by
dividing net income applicable to common shareholders
Earnings per Share (“EPS”). Basic EPS is calculated by
by the weighted-average number of shares outstanding
dividing net income applicable to common shareholders
during the period. Diluted EPS includes the determinants
by the weighted-average number of shares outstanding
of basic EPS and common stock equivalents outstanding
during the period. Diluted EPS includes the determinants
during the period. Diluted EPS is computed using the
of basic EPS and common stock equivalents outstanding
treasury stock method.
during the period. Diluted EPS is computed using the
treasury stock method.
Business Segments. The Company’s management directs
BlackRock’s operations as one business, the asset
Business Segments. The Company’s management directs
management business. The Company utilizes a
BlackRock’s operations as one business, the asset
consolidated approach to assess performance and
management business. The Company utilizes a
allocate resources. As such, the Company operates in one
consolidated approach to assess performance and
business segment.
allocate resources. As such, the Company operates in one
business segment.
Fair Value Measurements
Fair Value Measurements
Hierarchy of Fair Value Inputs. The Company uses a fair
value hierarchy that prioritizes inputs to valuation
Hierarchy of Fair Value Inputs. The Company uses a fair
approaches used to measure fair value. The fair value
value hierarchy that prioritizes inputs to valuation
hierarchy gives the highest priority to quoted prices
approaches used to measure fair value. The fair value
(unadjusted) in active markets for identical assets or
hierarchy gives the highest priority to quoted prices
liabilities and the lowest priority to unobservable inputs.
(unadjusted) in active markets for identical assets or
Assets and liabilities measured and reported at fair value
liabilities and the lowest priority to unobservable inputs.
are classified and disclosed in one of the following
Assets and liabilities measured and reported at fair value
categories:
are classified and disclosed in one of the following
categories:
Level 1 Inputs:
Level 1 Inputs:
Quoted prices (unadjusted) in active markets for
identical assets or liabilities at the reporting date.
Quoted prices (unadjusted) in active markets for
identical assets or liabilities at the reporting date.
• Level 1 assets may include listed mutual funds, ETFs,
listed equities, commodities and certain exchange-
• Level 1 assets may include listed mutual funds, ETFs,
traded derivatives.
listed equities, commodities and certain exchange-
traded derivatives.
Level 2 Inputs:
Level 2 Inputs:
Quoted prices for similar assets or liabilities in active
markets; quoted prices for identical or similar assets or
Quoted prices for similar assets or liabilities in active
markets; quoted prices for identical or similar assets or
F-15 BlackRock | 2023 Form 10-K
liabilities that are not active; quotes from pricing
services or brokers for which the Company can
liabilities that are not active; quotes from pricing
determine that orderly transactions took place at the
services or brokers for which the Company can
quoted price or that the inputs used to arrive at the
determine that orderly transactions took place at the
price are observable; and inputs other than quoted
quoted price or that the inputs used to arrive at the
prices that are observable, such as models or other
price are observable; and inputs other than quoted
valuation methodologies.
prices that are observable, such as models or other
valuation methodologies.
• Level 2 assets may include debt securities, loans held
within consolidated CLOs, short-term floating-rate
• Level 2 assets may include debt securities, loans held
notes, asset-backed securities, as well as
within consolidated CLOs, short-term floating-rate
over-the-counter derivatives, including interest rate
notes, asset-backed securities, as well as
swaps and foreign currency exchange contracts that
over-the-counter derivatives, including interest rate
have inputs to the valuations that generally can be
swaps and foreign currency exchange contracts that
corroborated by observable market data.
have inputs to the valuations that generally can be
corroborated by observable market data.
Level 3 Inputs:
Level 3 Inputs:
Unobservable inputs for the valuation of the asset or
liability, which may include nonbinding broker quotes.
Unobservable inputs for the valuation of the asset or
Level 3 assets include investments for which there is
liability, which may include nonbinding broker quotes.
little, if any, market activity. These inputs require
Level 3 assets include investments for which there is
significant management judgment or estimation.
little, if any, market activity. These inputs require
significant management judgment or estimation.
• Level 3 assets may include direct private equity
investments, including those held within CIPs,
• Level 3 assets may include direct private equity
investments in CLOs and loans held within
investments, including those held within CIPs,
consolidated CLOs and CIPs.
investments in CLOs and loans held within
consolidated CLOs and CIPs.
• Level 3 liabilities may include borrowings of
• Level 3 liabilities may include borrowings of
consolidated CLOs and contingent liabilities related
to acquisitions valued based upon discounted cash
consolidated CLOs and contingent liabilities related
flow analyses using unobservable market data, or
to acquisitions valued based upon discounted cash
other valuation techniques.
flow analyses using unobservable market data, or
other valuation techniques.
Significance of Inputs. The Company’s assessment of the
significance of a particular input to the fair value
Significance of Inputs. The Company’s assessment of the
measurement in its entirety requires judgment and
significance of a particular input to the fair value
considers factors specific to the financial instrument.
measurement in its entirety requires judgment and
considers factors specific to the financial instrument.
Valuation Approaches. The fair values of certain Level 3
assets and liabilities were determined using various
Valuation Approaches. The fair values of certain Level 3
valuation approaches as appropriate, including third-party
assets and liabilities were determined using various
pricing vendors, broker quotes and market and income
valuation approaches as appropriate, including third-party
approaches.
pricing vendors, broker quotes and market and income
approaches.
A significant number of inputs used to value equity, debt
securities, and loans held within CLOs and CIPs are
A significant number of inputs used to value equity, debt
sourced from third-party pricing vendors. Generally, prices
securities, and loans held within CLOs and CIPs are
obtained from pricing vendors are categorized as Level 1
sourced from third-party pricing vendors. Generally, prices
inputs for identical securities traded in active markets and
obtained from pricing vendors are categorized as Level 1
as Level 2 for other similar securities if the vendor uses
inputs for identical securities traded in active markets and
observable inputs in determining the price.
as Level 2 for other similar securities if the vendor uses
observable inputs in determining the price.
In addition, quotes obtained from brokers generally are
nonbinding and categorized as Level 3 inputs. However, if
In addition, quotes obtained from brokers generally are
the Company is able to determine that market participants
nonbinding and categorized as Level 3 inputs. However, if
have transacted for the asset in an orderly manner near
the Company is able to determine that market participants
the quoted price or if the Company can determine that the
have transacted for the asset in an orderly manner near
inputs used by the broker are observable, the quote is
the quoted price or if the Company can determine that the
classified as a Level 2 input.
inputs used by the broker are observable, the quote is
classified as a Level 2 input.
Investments Measured at Net Asset Values. As a practical
expedient, the Company uses net asset value (“NAV”) as
Investments Measured at Net Asset Values. As a practical
the fair value for certain investments. The inputs to value
expedient, the Company uses net asset value (“NAV”) as
these investments may include the Company’s capital
the fair value for certain investments. The inputs to value
accounts for its partnership interests in various alternative
these investments may include the Company’s capital
investments, including hedge funds, real assets and
accounts for its partnership interests in various alternative
private equity funds, which may be adjusted by using the
investments, including hedge funds, real assets and
returns of certain market indices. The various partnerships
private equity funds, which may be adjusted by using the
returns of certain market indices. The various partnerships
BlackRock | 2023 Form 10-K
F-15
are investment companies, which record their underlying
investments at fair value based on fair value policies
are investment companies, which record their underlying
established by management of the underlying fund. Fair
investments at fair value based on fair value policies
value policies at the underlying fund generally require the
established by management of the underlying fund. Fair
fund to utilize pricing/valuation information from third-
value policies at the underlying fund generally require the
party sources, including independent appraisals. However,
fund to utilize pricing/valuation information from third-
in some instances, current valuation information for
party sources, including independent appraisals. However,
illiquid securities or securities in markets that are not
in some instances, current valuation information for
active may not be available from any third-party source or
illiquid securities or securities in markets that are not
fund management may conclude that the valuations that
active may not be available from any third-party source or
are available from third-party sources are not reliable. In
fund management may conclude that the valuations that
these instances, fund management may perform model-
are available from third-party sources are not reliable. In
based analytical valuations that could be used as an input
these instances, fund management may perform model-
to value these investments.
based analytical valuations that could be used as an input
to value these investments.
Fair Value Assets and Liabilities of Consolidated CLO. The
Company applies the fair value option provisions for
Fair Value Assets and Liabilities of Consolidated CLO. The
eligible assets, including loans, held by a consolidated
Company applies the fair value option provisions for
CLO. As the fair value of the financial assets of the
eligible assets, including loans, held by a consolidated
consolidated CLO is more observable than the fair value of
CLO. As the fair value of the financial assets of the
the borrowings of the consolidated CLO, the Company
consolidated CLO is more observable than the fair value of
measures the fair value of the borrowings of the
the borrowings of the consolidated CLO, the Company
consolidated CLO equal to the fair value of the assets of
measures the fair value of the borrowings of the
the consolidated CLO less the fair value of the Company’s
consolidated CLO equal to the fair value of the assets of
economic interest in the CLO.
the consolidated CLO less the fair value of the Company’s
economic interest in the CLO.
Derivatives and Hedging Activities. The Company does
not use derivative financial instruments for trading or
Derivatives and Hedging Activities. The Company does
speculative purposes. The Company uses derivative
not use derivative financial instruments for trading or
financial instruments primarily for purposes of hedging
speculative purposes. The Company uses derivative
exposures to fluctuations in foreign currency exchange
financial instruments primarily for purposes of hedging
rates of certain assets and liabilities, and market price and
exposures to fluctuations in foreign currency exchange
interest rate exposures with respect to its total portfolio of
rates of certain assets and liabilities, and market price and
seed investments in sponsored investment products.
interest rate exposures with respect to its total portfolio of
Certain CIPs also utilize derivatives as a part of their
seed investments in sponsored investment products.
investment strategy.
Certain CIPs also utilize derivatives as a part of their
investment strategy.
In addition, during 2023, the Company acquired both
investments and derivatives to economically hedge market
In addition, during 2023, the Company acquired both
valuation changes on certain deferred cash compensation
investments and derivatives to economically hedge market
plans, for which the final value of the deferred amount
valuation changes on certain deferred cash compensation
distributed to employees in cash upon vesting is
plans, for which the final value of the deferred amount
determined based on the returns of specified investment
distributed to employees in cash upon vesting is
funds. The Company recognizes compensation expense for
determined based on the returns of specified investment
the appreciation (depreciation) of the deferred cash
funds. The Company recognizes compensation expense for
compensation liability in proportion to the vested amount
the appreciation (depreciation) of the deferred cash
of the award during a respective period, while the gain
compensation liability in proportion to the vested amount
(loss) to economically hedge these plans is immediately
of the award during a respective period, while the gain
recognized in nonoperating income (expense). See Note 4,
(loss) to economically hedge these plans is immediately
Investments, and Note 8, Derivatives and Hedging, for
recognized in nonoperating income (expense). See Note 4,
further information on the Company’s investments and
Investments, and Note 8, Derivatives and Hedging, for
derivatives, respectively, used to economically hedge these
further information on the Company’s investments and
deferred cash compensation plans.
derivatives, respectively, used to economically hedge these
deferred cash compensation plans.
The Company records all derivative financial instruments
as either assets or liabilities at fair value on a gross basis
The Company records all derivative financial instruments
in the consolidated statements of financial condition.
as either assets or liabilities at fair value on a gross basis
Credit risks are managed through master netting and
in the consolidated statements of financial condition.
collateral support agreements. The amounts related to the
Credit risks are managed through master netting and
right to reclaim or the obligation to return cash collateral
collateral support agreements. The amounts related to the
may not be used to offset amounts due under the
right to reclaim or the obligation to return cash collateral
derivative instruments in the normal course of settlement.
may not be used to offset amounts due under the
Therefore, such amounts are not offset against fair value
derivative instruments in the normal course of settlement.
amounts recognized for derivative instruments with the
Therefore, such amounts are not offset against fair value
same counterparty and are included in other assets and
amounts recognized for derivative instruments with the
other liabilities. Changes in the fair value of the
same counterparty and are included in other assets and
Company’s derivative financial instruments are
other liabilities. Changes in the fair value of the
recognized in earnings and, where applicable, are offset by
Company’s derivative financial instruments are
recognized in earnings and, where applicable, are offset by
F-16 BlackRock | 2023 Form 10-K
the corresponding gain or loss on the related foreign-
denominated or hedged assets or liabilities, on the
the corresponding gain or loss on the related foreign-
consolidated statements of income.
denominated or hedged assets or liabilities, on the
consolidated statements of income.
The Company may also use financial instruments
designated as net investment hedges for accounting
The Company may also use financial instruments
purposes to hedge net investments in international
designated as net investment hedges for accounting
purposes to hedge net investments in international
BlackRock | 2023 Form 10-K
F-16
subsidiaries whose functional currency is not US dollars.
The gain or loss from revaluing net investment hedges at
subsidiaries whose functional currency is not US dollars.
the spot rate is deferred and reported within AOCI on the
The gain or loss from revaluing net investment hedges at
consolidated statements of financial condition. The
the spot rate is deferred and reported within AOCI on the
Company reassesses the effectiveness of its net
consolidated statements of financial condition. The
investment hedge at least quarterly.
Company reassesses the effectiveness of its net
investment hedge at least quarterly.
3. Cash, Cash Equivalents, and Restricted Cash
3. Cash, Cash Equivalents, and Restricted Cash
The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of
financial condition to the cash, cash equivalents, and restricted cash reported within the consolidated statements of cash
The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statements of
flows.
financial condition to the cash, cash equivalents, and restricted cash reported within the consolidated statements of cash
flows.
(in millions)
(in millions)
Cash and cash equivalents
Cash and cash equivalents
Restricted cash included in other assets
Restricted cash included in other assets
Total cash, cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash
4. Investments
4. Investments
A summary of the carrying value of total investments is as follows:
A summary of the carrying value of total investments is as follows:
(in millions)
(in millions)
Debt securities:
Debt securities:
December 31, 2022, respectively)
December 31, 2022, respectively)
Trading securities (including $1,829 and $1,279 held by CIPs at December 31, 2023 and
Trading securities (including $1,829 and $1,279 held by CIPs at December 31, 2023 and
Held-to-maturity investments
Held-to-maturity investments
Total debt securities
Total debt securities
Equity securities at FVTNI (including $1,429 and $1,089 held by CIPs at December 31, 2023 and
Equity securities at FVTNI (including $1,429 and $1,089 held by CIPs at December 31, 2023 and
Equity method investments:
Equity method investments:
December 31, 2022, respectively)(1)
December 31, 2022, respectively)(1)
December 31,
2023
December 31,
2023
$ 8,736
$ 8,736
17
17
$ 8,753
$ 8,753
December 31,
2022
December 31,
2022
$ 7,416
$ 7,416
17
17
$ 7,433
$ 7,433
December 31,
2023
December 31,
2023
December 31,
2022
December 31,
2022
$ 1,871
$ 1,871
617
617
2,488
2,488
1,585
1,585
$ 1,331
$ 1,331
544
544
1,875
1,875
1,211
1,211
Equity method investments(2)
Equity method investments(2)
Investments related to deferred cash compensation plans(1)
Investments related to deferred cash compensation plans(1)
1,895
1,895
—
—
1,895
1,895
354
354
91
91
1,550
1,550
490
490
$ 7,466
$ 7,466
Amounts include investments held to economically hedge the impact of market valuation changes on certain deferred cash compensation plans of $241 million, $14 million, and $9 million
included within equity method investments, equity securities at FVTNI and other investments, respectively, as of December 31, 2023.
Amounts include investments held to economically hedge the impact of market valuation changes on certain deferred cash compensation plans of $241 million, $14 million, and $9 million
included within equity method investments, equity securities at FVTNI and other investments, respectively, as of December 31, 2023.
Total equity method investments
Total equity method investments
Loans held by CIPs
Loans held by CIPs
Federal Reserve Bank stock(3)
Federal Reserve Bank stock(3)
Carried interest(4)
Carried interest(4)
Other investments(1)(5)
Other investments(1)(5)
Total investments
Total investments
(1)
2,515
2,515
241
241
2,756
2,756
205
205
92
92
1,975
1,975
639
639
$ 9,740
$ 9,740
(2) Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds.
(1)
(2) Equity method investments primarily include BlackRock’s direct investments in certain BlackRock sponsored investment funds.
(3)
Federal Reserve Bank stock is held for regulatory purposes and is restricted from sale.
(3)
(4) Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions,
Federal Reserve Bank stock is held for regulatory purposes and is restricted from sale.
(4) Carried interest represents allocations to BlackRock’s general partner capital accounts from certain sponsored investment funds. These balances are subject to change upon cash distributions,
additional allocations or reallocations back to limited partners within the respective funds.
additional allocations or reallocations back to limited partners within the respective funds.
(5) Other investments include BlackRock’s investments in nonmarketable equity securities, which are measured at cost, adjusted for observable price changes, and private equity, real asset, and
(5) Other investments include BlackRock’s investments in nonmarketable equity securities, which are measured at cost, adjusted for observable price changes, and private equity, real asset, and
commodity investments held by CIPs, which are measured at fair value.
commodity investments held by CIPs, which are measured at fair value.
Held-to-Maturity Investments
Held-to-Maturity Investments
Held-to-maturity investments included certain investments in BlackRock sponsored CLOs. The amortized cost (carrying
value) of these investments approximated fair value (primarily a Level 2 input). At December 31, 2023, $10 million of
Held-to-maturity investments included certain investments in BlackRock sponsored CLOs. The amortized cost (carrying
these investments mature between one year to five years, $304 million of these investments mature between five to ten
value) of these investments approximated fair value (primarily a Level 2 input). At December 31, 2023, $10 million of
years and $303 million of these investments mature after ten years.
these investments mature between one year to five years, $304 million of these investments mature between five to ten
years and $303 million of these investments mature after ten years.
F-17 BlackRock | 2023 Form 10-K
Trading Debt Securities and Equity Securities at FVTNI
Trading Debt Securities and Equity Securities at FVTNI
A summary of the cost and carrying value of trading debt securities and equity securities at FVTNI is as follows:
A summary of the cost and carrying value of trading debt securities and equity securities at FVTNI is as follows:
BlackRock | 2023 Form 10-K
F-17
(in millions)
(in millions)
Trading debt securities:
Trading debt securities:
Corporate debt
Corporate debt
Government debt
Government debt
Asset/mortgage-backed debt
Asset/mortgage-backed debt
Total trading debt securities
Total trading debt securities
Equity securities at FVTNI:
Equity securities at FVTNI:
Equity securities/mutual funds
Equity securities/mutual funds
Cost
Cost
$ 1,225
$ 1,225
501
501
185
185
$ 1,911
$ 1,911
$ 1,520
$ 1,520
December 31, 2023
December 31, 2023
December 31, 2022
December 31, 2022
Carrying
Value
Carrying
Value
$ 1,218
$ 1,218
489
489
164
164
$ 1,871
$ 1,871
$ 1,585
$ 1,585
Cost
Cost
$ 823
$ 823
420
420
154
154
$ 1,397
$ 1,397
$ 1,216
$ 1,216
Carrying
Value
Carrying
Value
$ 795
$ 795
400
400
136
136
$ 1,331
$ 1,331
$ 1,211
$ 1,211
5. Consolidated Sponsored Investment Products
5. Consolidated Sponsored Investment Products
In the normal course of business, the Company is the
manager of various types of sponsored investment
In the normal course of business, the Company is the
products, which may be considered VIE or VREs. The
manager of various types of sponsored investment
Company consolidates certain sponsored investment
products, which may be considered VIE or VREs. The
funds accounted for as VREs because it is deemed to
Company consolidates certain sponsored investment
control such funds. In addition, the Company may from
funds accounted for as VREs because it is deemed to
time to time own equity or debt securities or enter into
control such funds. In addition, the Company may from
derivatives or loan arrangements with the vehicles, each of
time to time own equity or debt securities or enter into
which are considered variable interests. The Company’s
derivatives or loan arrangements with the vehicles, each of
involvement in financing the operations of the VIEs is
which are considered variable interests. The Company’s
involvement in financing the operations of the VIEs is
The following table presents the balances related to these CIPs accounted for as VIEs and VREs that were recorded on the
consolidated statements of financial condition, including BlackRock’s net interest in these products:
The following table presents the balances related to these CIPs accounted for as VIEs and VREs that were recorded on the
consolidated statements of financial condition, including BlackRock’s net interest in these products:
generally limited to its economic interest in the entity. The
Company’s consolidated VIEs include certain sponsored
generally limited to its economic interest in the entity. The
investment products in which BlackRock has an economic
Company’s consolidated VIEs include certain sponsored
interest and as the investment manager, is deemed to
investment products in which BlackRock has an economic
have both the power to direct the most significant
interest and as the investment manager, is deemed to
activities of the products and the right to receive benefits
have both the power to direct the most significant
(or the obligation to absorb losses) that could potentially
activities of the products and the right to receive benefits
be significant to these sponsored investment products.
(or the obligation to absorb losses) that could potentially
The assets of these VIEs are not available to creditors of
be significant to these sponsored investment products.
the Company. In addition, the investors in these VIEs have
The assets of these VIEs are not available to creditors of
no recourse to the credit of the Company.
the Company. In addition, the investors in these VIEs have
no recourse to the credit of the Company.
(in millions)
(in millions)
Cash and cash equivalents(1)
Cash and cash equivalents(1)
Investments:
Investments:
Trading debt securities
Trading debt securities
Equity securities at FVTNI
Equity securities at FVTNI
Loans
Loans
Other investments
Other investments
Carried interest
Carried interest
Total investments
Total investments
Other assets
Other assets
Other liabilities(2)
Other liabilities(2)
Noncontrolling interest—CIPs
Noncontrolling interest—CIPs
BlackRock’s net interest in CIPs
BlackRock’s net interest in CIPs
(1)
December 31, 2023
December 31, 2023
VREs
VREs
$ 54
$ 54
Total
Total
$ 288
$ 288
December 31, 2022
December 31, 2022
VREs
VREs
$ 31
$ 31
VIEs
VIEs
$ 234
$ 234
Total
Total
$ 265
$ 265
406
406
370
370
10
10
171
171
—
—
957
957
39
39
(108)
(108)
(226)
(226)
$ 716
$ 716
1,829
1,829
1,429
1,429
205
205
598
598
1,916
1,916
5,977
5,977
122
122
(2,341)
(2,341)
(1,851)
(1,851)
$ 2,195
$ 2,195
949
949
821
821
234
234
373
373
1,497
1,497
3,874
3,874
68
68
(1,876)
(1,876)
(857)
(857)
$ 1,443
$ 1,443
330
330
268
268
120
120
77
77
—
—
795
795
29
29
(48)
(48)
(125)
(125)
$ 682
$ 682
1,279
1,279
1,089
1,089
354
354
450
450
1,497
1,497
4,669
4,669
97
97
(1,924)
(1,924)
(982)
(982)
$ 2,125
$ 2,125
VIEs
VIEs
$ 234
$ 234
1,423
1,423
1,059
1,059
195
195
427
427
1,916
1,916
5,020
5,020
83
83
(2,233)
(2,233)
(1,625)
(1,625)
$ 1,479
$ 1,479
Net gain (loss) related to consolidated VIEs is presented in
the following table:
Net gain (loss) related to consolidated VIEs is presented in
the following table:
(in millions)
(in millions)
Nonoperating net gain (loss) on
Nonoperating net gain (loss) on
Net income (loss) attributable to
Net income (loss) attributable to
consolidated VIEs
consolidated VIEs
NCI on consolidated VIEs
NCI on consolidated VIEs
2023
2023
$ 310
$ 310
$ 174
$ 174
2022
2022
$ (311)
$ (311)
$ (161)
$ (161)
2021
2021
$ 296
$ 296
$ 289
$ 289
The Company generally cannot readily access cash and cash equivalents held by CIPs to use in its operating activities.
(1)
(2)
The Company generally cannot readily access cash and cash equivalents held by CIPs to use in its operating activities.
At December 31, 2023 and 2022, other liabilities of VIEs primarily include deferred carried interest liabilities and borrowings of a consolidated CLO.
At December 31, 2023 and 2022, other liabilities of VIEs primarily include deferred carried interest liabilities and borrowings of a consolidated CLO.
(2)
BlackRock’s total exposure to CIPs represents the value of
its economic interest in these CIPs. Valuation changes
BlackRock’s total exposure to CIPs represents the value of
associated with financial instruments held at fair value by
its economic interest in these CIPs. Valuation changes
these CIPs are reflected in nonoperating income (expense)
associated with financial instruments held at fair value by
and partially offset in net income (loss) attributable to NCI
these CIPs are reflected in nonoperating income (expense)
for the portion not attributable to BlackRock.
and partially offset in net income (loss) attributable to NCI
for the portion not attributable to BlackRock.
BlackRock | 2023 Form 10-K
F-18
F-18 BlackRock | 2023 Form 10-K
6. Variable Interest Entities
6. Variable Interest Entities
Nonconsolidated VIEs. At December 31, 2023 and 2022, the Company’s carrying value of assets and liabilities included
on the consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss
Nonconsolidated VIEs. At December 31, 2023 and 2022, the Company’s carrying value of assets and liabilities included
related to VIEs for which it held a variable interest, but for which it was not the PB, was as follows:
on the consolidated statements of financial condition pertaining to nonconsolidated VIEs and its maximum risk of loss
related to VIEs for which it held a variable interest, but for which it was not the PB, was as follows:
Advisory
Fee
Advisory
Receivables
Fee
Receivables
Other Net
Assets
Other Net
(Liabilities)
Assets
(Liabilities)
Maximum
Risk of
Maximum
Loss(1)
Risk of
Loss(1)
Investments
Investments
(in millions)
(in millions)
December 31, 2023
Sponsored investment products
December 31, 2023
Sponsored investment products
December 31, 2022
Sponsored investment products
December 31, 2022
Sponsored investment products
(1)
$ 2,377
$ 2,377
$ 116
$ 116
$ (11)
$ (11)
$ 2,510
$ 2,510
$ 1,060
$ 1,060
$ 95
$ 95
$ (12)
$ (12)
$ 1,172
$ 1,172
At both December 31, 2023 and 2022, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of advisory fee receivables.
(1)
At both December 31, 2023 and 2022, BlackRock’s maximum risk of loss associated with these VIEs primarily related to BlackRock’s investments and the collection of advisory fee receivables.
The net assets of sponsored investment products that are nonconsolidated VIEs approximated $39 billion and $19 billion
at December 31, 2023 and 2022, respectively.
The net assets of sponsored investment products that are nonconsolidated VIEs approximated $39 billion and $19 billion
at December 31, 2023 and 2022, respectively.
7. Fair Value Disclosures
7. Fair Value Disclosures
Fair Value Hierarchy
Assets and liabilities measured at fair value on a recurring basis
Fair Value Hierarchy
Assets and liabilities measured at fair value on a recurring basis
December 31, 2023
(in millions)
December 31, 2023
(in millions)
Assets:
Investments
Assets:
Investments
Debt securities:
Debt securities:
Trading securities
Held-to-maturity investments
Trading securities
Held-to-maturity investments
Total debt securities
Equity securities at FVTNI:
Total debt securities
Equity securities at FVTNI:
Equity securities/mutual funds
Equity securities/mutual funds
Equity method:
Equity method:
mutual funds
mutual funds
Equity, fixed income, and multi-asset
Equity, fixed income, and multi-asset
Hedge funds/funds of hedge funds/other
Private equity funds
Hedge funds/funds of hedge funds/other
Real assets funds
Private equity funds
Investments related to deferred cash
Real assets funds
Investments related to deferred cash
compensation plans
compensation plans
Total equity method
Loans
Total equity method
Federal Reserve Bank Stock
Loans
Carried interest
Federal Reserve Bank Stock
Other investments
Carried interest
Other investments
Total investments
Total investments
Other assets(3)
Separate account assets
Other assets(3)
Separate account collateral held under securities
Separate account assets
lending agreements:
Separate account collateral held under securities
Equity securities
lending agreements:
Debt securities
Equity securities
Debt securities
securities lending agreements
securities lending agreements
Total separate account collateral held under
Total separate account collateral held under
Total
Total
Liabilities:
Liabilities:
securities lending agreements
securities lending agreements
Separate account collateral liabilities under
Separate account collateral liabilities under
Other liabilities(4)
Other liabilities(4)
Total
Total
(1)
Quoted
Prices in
Quoted
Active
Prices in
Markets for
Active
Identical
Markets for
Assets
Identical
(Level 1)
Assets
(Level 1)
Significant
Other
Significant
Observable
Other
Inputs
Observable
(Level 2)
Inputs
(Level 2)
Significant
Unobservable
Significant
Inputs
Unobservable
(Level 3)
Inputs
(Level 3)
Investments
Measured
Investments
at NAV(1)
Measured
at NAV(1)
Other(2)
Other(2)
December 31,
2023
December 31,
2023
$
$
—
—
—
—
—
—
1,585
1,585
$ 1,829
—
$ 1,829
—
1,829
1,829
—
—
246
—
246
—
—
—
—
—
—
—
246
—
246
—
—
—
—
15
—
15
1,846
1,846
117
34,621
117
34,621
—
—
—
—
—
—
—
—
—
—
—
30
—
—
30
—
—
—
—
—
1,859
1,859
19
20,810
19
20,810
1,686
—
1,686
—
1,686
1,686
$ 38,270
$ 38,270
—
2,872
—
2,872
2,872
2,872
$ 25,560
$ 25,560
$ 42
—
$ 42
—
42
42
—
—
—
—
—
—
—
—
—
—
—
—
—
175
—
—
175
—
—
—
—
—
217
217
120
—
120
—
—
—
—
—
—
—
$ 337
$ 337
$ 1,686
—
$ 1,686
—
$ 1,686
$ 1,686
$ 2,872
17
$ 2,872
17
$ 2,889
$ 2,889
$ —
279
$ —
279
$ 279
$ 279
$
$
—
—
—
—
—
—
—
—
$
$
—
617
—
617
617
617
—
—
$ 1,871
617
$ 1,871
617
2,488
2,488
1,585
1,585
—
588
—
1,264
588
417
1,264
417
241
241
2,510
—
2,510
—
—
—
—
467
—
467
2,977
2,977
—
—
—
—
—
—
—
—
—
—
$ 2,977
$ 2,977
$
$
$
$
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
92
—
1,975
92
157
1,975
157
2,841
2,841
—
667
—
667
—
—
—
—
—
—
$ 3,508
$ 3,508
$
$
$
$
—
—
—
—
—
—
246
588
246
1,264
588
417
1,264
417
241
241
2,756
205
2,756
92
205
1,975
92
639
1,975
639
9,740
9,740
256
56,098
256
56,098
1,686
2,872
1,686
2,872
4,558
4,558
$ 70,652
$ 70,652
$ 4,558
296
$ 4,558
296
$ 4,854
$ 4,854
Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.
(1)
Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.
F-19 BlackRock | 2023 Form 10-K
(2)
(2)
F-19
Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, carried interest and certain equity method investments, which include sponsored
investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial
Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, carried interest and certain equity method investments, which include sponsored
assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.
investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial
assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.
BlackRock | 2023 Form 10-K
(3) Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes a strategic private debt investment with changes in fair value recorded in AOCI, net of tax.
(3) Level 1 amount includes a minority investment in a publicly traded company. Level 3 amount includes a strategic private debt investment with changes in fair value recorded in AOCI, net of tax.
(4) Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO
classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions.
(4) Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO
classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and contingent liabilities related to certain acquisitions.
F-20 BlackRock | 2023 Form 10-K
Level 3 Liabilities. Level 3 liabilities primarily include
borrowings of a consolidated CLO, which were valued
Level 3 Liabilities. Level 3 liabilities primarily include
based on the fair value of the assets of the consolidated
borrowings of a consolidated CLO, which were valued
CLO less the fair value of the Company’s economic
based on the fair value of the assets of the consolidated
CLO less the fair value of the Company’s economic
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2023
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2023
interest in the CLO, as well as contingent liabilities related
to certain acquisitions, which were valued based upon
interest in the CLO, as well as contingent liabilities related
discounted cash flow analyses, using unobservable
to certain acquisitions, which were valued based upon
market data inputs, or other valuation techniques.
discounted cash flow analyses, using unobservable
market data inputs, or other valuation techniques.
BlackRock | 2023 Form 10-K
F-20
December 31, 2022
(in millions)
December 31, 2022
(in millions)
Assets:
Assets:
Investments
Investments
Debt securities:
Debt securities:
Trading securities
Trading securities
Held-to-maturity investments
Held-to-maturity investments
Total debt securities
Total debt securities
Equity securities at FVTNI:
Equity securities at FVTNI:
Equity securities/mutual funds
Equity securities/mutual funds
Equity method:
Equity method:
mutual funds
mutual funds
Equity, fixed income, and multi-asset
Equity, fixed income, and multi-asset
Hedge funds/funds of hedge funds/other
Hedge funds/funds of hedge funds/other
Private equity funds
Private equity funds
Real assets funds
Real assets funds
Total equity method
Total equity method
Loans
Loans
Federal Reserve Bank Stock
Federal Reserve Bank Stock
Carried interest
Carried interest
Other investments
Other investments
Total investments
Total investments
Other assets(3)
Other assets(3)
Separate account assets
Separate account assets
Separate account collateral held under securities
lending agreements:
Separate account collateral held under securities
lending agreements:
Equity securities
Equity securities
Debt securities
Debt securities
securities lending agreements
securities lending agreements
Total separate account collateral held under
Total separate account collateral held under
Total
Total
Liabilities:
Liabilities:
securities lending agreements
securities lending agreements
Separate account collateral liabilities under
Separate account collateral liabilities under
Other liabilities(4)
Other liabilities(4)
Total
Total
(1)
Quoted
Prices in
Quoted
Active
Prices in
Markets for
Active
Identical
Markets for
Assets
Identical
(Level 1)
Assets
(Level 1)
$
$
—
—
—
—
—
—
1,211
1,211
181
181
—
—
—
—
—
—
181
181
—
—
—
—
—
—
28
28
1,420
1,420
145
145
34,823
34,823
Significant
Other
Significant
Observable
Other
Inputs
Observable
(Level 2)
Inputs
(Level 2)
$ 1,279
$ 1,279
—
—
1,279
1,279
—
—
—
—
—
—
—
—
—
—
—
—
106
106
—
—
—
—
—
—
1,385
1,385
1
1
18,544
18,544
2,163
2,163
—
—
2,163
2,163
$ 38,551
$ 38,551
—
—
3,602
3,602
3,602
3,602
$ 23,532
$ 23,532
$ 2,163
$ 2,163
—
—
$ 2,163
$ 2,163
$ 3,602
$ 3,602
31
31
$ 3,633
$ 3,633
Significant
Unobservable
Significant
Inputs
Unobservable
(Level 3)
Inputs
(Level 3)
Investments
Measured
Investments
at NAV(1)
Measured
at NAV(1)
Other(2)
Other(2)
December 31,
2022
December 31,
2022
$ 52
$ 52
—
—
52
52
—
—
—
—
—
—
—
—
—
—
—
—
248
248
—
—
—
—
—
—
300
300
—
—
—
—
—
—
—
—
—
—
$ 300
$ 300
$ —
$ —
280
280
$ 280
$ 280
$
$
—
—
—
—
—
—
—
—
$
$
—
—
544
544
544
544
—
—
$ 1,331
$ 1,331
544
544
1,875
1,875
1,211
1,211
—
—
525
525
885
885
304
304
1,714
1,714
—
—
—
—
—
—
316
316
2,030
2,030
—
—
—
—
—
—
—
—
—
—
$ 2,030
$ 2,030
$
$
$
$
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
91
91
1,550
1,550
146
146
2,331
2,331
—
—
699
699
—
—
—
—
—
—
$ 3,030
$ 3,030
$
$
$
$
—
—
—
—
—
—
181
181
525
525
885
885
304
304
1,895
1,895
354
354
91
91
1,550
1,550
490
490
7,466
7,466
146
146
54,066
54,066
2,163
2,163
3,602
3,602
5,765
5,765
$ 67,443
$ 67,443
$ 5,765
$ 5,765
311
311
$ 6,076
$ 6,076
Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.
(1)
(2)
(2)
Amounts are comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient.
Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, carried interest and certain equity method investments, which include sponsored
investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial
Amounts are comprised of investments held at amortized cost and cost, adjusted for observable price changes, carried interest and certain equity method investments, which include sponsored
assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.
investment funds and other assets, which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial
assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value.
(3) Level 1 amount includes a minority investment in a publicly traded company. Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more
(3) Level 1 amount includes a minority investment in a publicly traded company. Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more
information).
information).
(4) Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO
(4) Level 2 amount primarily includes fair value of derivatives (See Note 8, DerivativesandHedging, for more information). Level 3 amount primarily includes borrowings of a consolidated CLO
classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and a contingent liability related to an acquisition.
classified based on the significance of unobservable inputs used for calculating the fair value of consolidated CLO assets, and a contingent liability related to an acquisition.
Level 3 Assets. Level 3 assets predominantly include
investments in CLOs, loans of consolidated CIPs, and a
Level 3 Assets. Level 3 assets predominantly include
strategic private debt investment. Investments in CLOs
investments in CLOs, loans of consolidated CIPs, and a
and loans were valued based on single-broker nonbinding
strategic private debt investment. Investments in CLOs
quotes or quotes from pricing services which use
and loans were valued based on single-broker nonbinding
significant unobservable inputs. BlackRock’s strategic
quotes or quotes from pricing services which use
private debt investment was valued using the income
significant unobservable inputs. BlackRock’s strategic
private debt investment was valued using the income
approach by discounting the expected cash flows to a
single present value. For investments utilizing a
approach by discounting the expected cash flows to a
discounted cashflow valuation technique, an increase
single present value. For investments utilizing a
(decrease) in the discount rate or risk premium in isolation
discounted cashflow valuation technique, an increase
could have resulted in a significantly lower (higher) fair
(decrease) in the discount rate or risk premium in isolation
value measurement as of December 31, 2023.
could have resulted in a significantly lower (higher) fair
value measurement as of December 31, 2023.
(in millions)
(in millions)
Assets:
Assets:
Investments:
Investments:
Debt securities:
Debt securities:
Trading
Trading
Total debt securities
Total debt securities
Loans
Loans
Total investments
Total investments
Other assets
Other assets
Total assets
Total assets
Liabilities:
Liabilities:
(in millions)
(in millions)
Assets:
Assets:
Investments:
Investments:
Debt securities:
Debt securities:
Trading
Trading
Total debt securities
Total debt securities
Private equity
Private equity
Loans
Loans
Total investments
Total investments
Liabilities:
Liabilities:
Realized
and
Realized
Unrealized
and
Gains
Unrealized
(Losses)
Gains
(Losses)
December 31,
2022
December 31,
2022
Purchases
Purchases
Sales and
Maturities
Sales and
Maturities
Issuances
and
Issuances
Other
and
Settlements(1)
Other
Settlements(1)
Transfers
into
Transfers
Level 3
into
Level 3
Transfers
out of
Transfers
Level 3
out of
Level 3
December 31,
2023
December 31,
2023
Total Net
Unrealized
Total Net
Gains (Losses)
Unrealized
Included in
Gains (Losses)
Earnings(2)
Included in
Earnings(2)
$ 52
$ 52
52
52
248
248
300
300
—
—
$ 300
$ 300
$ —
$ —
—
—
13
13
13
13
7
7
$ 20
$ 20
$
$
8
8
8
8
76
76
84
84
113
113
$ 197
$ 197
$ (18)
$ (18)
(18)
(18)
(58)
(58)
(76)
(76)
—
—
$ (76)
$ (76)
$
$
—
—
—
—
(122)
(122)
(122)
(122)
—
—
$ (122)
$ (122)
$ —
$ —
—
—
38
38
38
38
—
—
$ 38
$ 38
$ —
$ —
—
—
(20)
(20)
(20)
(20)
—
—
$ (20)
$ (20)
$ 42
$ 42
42
42
175
175
217
217
120
120
$ 337
$ 337
$ —
$ —
—
—
(1)
(1)
(1)
(1)
7
7
$ 6
$ 6
$ 1
Other liabilities
Other liabilities
$ 1
Issuances and other settlements amount includes a deconsolidation related to a previously consolidated VRE. In addition, issuances and other settlements include a contingent liability in
connection with the acquisition of Kreos Capital in August 2023 (the “Kreos Transaction”), offset by repayments of borrowings of a consolidated CLO.
Issuances and other settlements amount includes a deconsolidation related to a previously consolidated VRE. In addition, issuances and other settlements include a contingent liability in
connection with the acquisition of Kreos Capital in August 2023 (the “Kreos Transaction”), offset by repayments of borrowings of a consolidated CLO.
$ 279
$ 279
$ 280
$ 280
$ —
$ —
$ —
$ —
$ —
$ —
$ 1
$ 1
$ —
$ —
—
—
$
$
(2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.
(1)
(1)
(2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2022
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2022
Realized
and
Realized
Unrealized
and
Gains
Unrealized
(Losses)
Gains
(Losses)
December 31,
2021
December 31,
2021
Purchases
Purchases
Sales and
Maturities
Sales and
Maturities
Issuances
and
Issuances
Other
and
Settlements(1)
Other
Settlements(1)
Transfers
into
Transfers
Level 3
into
Level 3
Transfers
out of
Transfers
Level 3
out of
Level 3
December 31,
2022
December 31,
2022
Total Net
Unrealized
Total Net
Gains (Losses)
Unrealized
Included in
Gains (Losses)
Earnings(2)
Included in
Earnings(2)
$ 17
$ 17
17
17
5
5
270
270
$ 292
$ 292
$ (5)
$ (5)
(5)
(5)
(2)
(2)
(6)
(6)
$ (13)
$ (13)
$ 36
$ 36
36
36
—
—
59
59
$ 95
$ 95
$ (18)
$ (18)
(18)
(18)
—
—
(61)
(61)
$ (79)
$ (79)
$ —
$ —
—
—
—
—
—
—
$ —
$ —
$ 26
$ 26
26
26
—
—
9
9
$ 35
$ 35
$ (4)
$ (4)
(4)
(4)
(3)
(3)
(23)
(23)
$ (30)
$ (30)
$ —
$ —
$ 52
$ 52
52
52
—
—
248
248
$ 300
$ 300
$ 280
$ 280
$ (5)
$ (5)
(5)
(5)
—
—
(6)
(6)
$ (11)
$ (11)
$ 3
$ 3
$ 3
Other liabilities
Other liabilities
$ 3
Amounts include proceeds from borrowings of a consolidated CLO and a contingent liability payment related to a prior acquisition.
$ (59)
$ (59)
$ 342
$ 342
$ —
$ —
$ —
$ —
$ —
$ —
(1)
(1)
(2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.
Amounts include proceeds from borrowings of a consolidated CLO and a contingent liability payment related to a prior acquisition.
(2) Earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at the reporting date.
Realized and Unrealized Gains (Losses) for Level 3 Assets
and Liabilities. Realized and unrealized gains (losses)
Realized and Unrealized Gains (Losses) for Level 3 Assets
recorded for Level 3 assets and liabilities are primarily
and Liabilities. Realized and unrealized gains (losses)
reported in nonoperating income (expense) on the
recorded for Level 3 assets and liabilities are primarily
consolidated statements of income. A portion of net
reported in nonoperating income (expense) on the
income (loss) related to securities held by CIPs is allocated
consolidated statements of income. A portion of net
to NCI to reflect net income (loss) not attributable to the
income (loss) related to securities held by CIPs is allocated
Company.
to NCI to reflect net income (loss) not attributable to the
Company.
Transfers in and/or out of Levels. Transfers in and/or out
of levels are reflected when significant inputs, including
Transfers in and/or out of Levels. Transfers in and/or out
market inputs or performance attributes, used for the fair
of levels are reflected when significant inputs, including
value measurement become observable/unobservable.
market inputs or performance attributes, used for the fair
value measurement become observable/unobservable.
F-21 BlackRock | 2023 Form 10-K
F-21
Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At December 31, 2023 and 2022, the fair value of
the Company’s financial instruments not held at fair value are categorized in the table below.
Disclosures of Fair Value for Financial Instruments Not Held at Fair Value. At December 31, 2023 and 2022, the fair value of
the Company’s financial instruments not held at fair value are categorized in the table below.
BlackRock | 2023 Form 10-K
(in millions)
(in millions)
Financial Assets(1):
Cash and cash equivalents
Financial Assets(1):
Other assets
Cash and cash equivalents
Financial Liabilities:
Other assets
Long-term borrowings
Financial Liabilities:
Long-term borrowings
(1)
See Note 4,Investments, for further information on investments not held at fair value.
December 31, 2023
December 31, 2023
December 31, 2022
December 31, 2022
Carrying
Amount
Carrying
Amount
Estimated
Fair Value
Estimated
Fair Value
Carrying
Amount
Carrying
Amount
Estimated
Fair Value
Estimated
Fair Value
$ 8,736
80
$ 8,736
80
$ 7,918
$ 7,918
$ 8,736
80
$ 8,736
80
$ 7,413
$ 7,413
$ 7,416
86
$ 7,416
86
$ 6,654
$ 6,654
$ 7,416
86
$ 7,416
86
$ 5,949
$ 5,949
Fair Value
Hierarchy
Fair Value
Hierarchy
Level 1(2)(3)
Level 1(2)(4)
Level 1(2)(3)
Level 1(2)(4)
Level 2(5)
Level 2(5)
(1)
(2) Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.
See Note 4,Investments, for further information on investments not held at fair value.
(2) Cash and cash equivalents are carried at either cost or amortized cost, which approximates fair value due to their short-term maturities.
(3)
At December 31, 2023 and 2022, approximately $3.4 billion and $2.2 billion, respectively, of money market funds were recorded within cash and cash equivalents on the consolidated
statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.
At December 31, 2023 and 2022, approximately $3.4 billion and $2.2 billion, respectively, of money market funds were recorded within cash and cash equivalents on the consolidated
statements of financial condition. Money market funds are valued based on quoted market prices, or $1.00 per share, which generally is the NAV of the fund.
At December 31, 2023 and 2022, other assets included cash collateral of approximately $63 million and $69 million, respectively. See Note 8, DerivativesandHedgingfor further information
on derivatives held by the Company. In addition, other assets included $17 million of restricted cash at both December 31, 2023 and 2022.
At December 31, 2023 and 2022, other assets included cash collateral of approximately $63 million and $69 million, respectively. See Note 8, DerivativesandHedgingfor further information
on derivatives held by the Company. In addition, other assets included $17 million of restricted cash at both December 31, 2023 and 2022.
(5) Long-term borrowings are recorded at amortized cost, net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is determined
(3)
(4)
(4)
(5) Long-term borrowings are recorded at amortized cost, net of debt issuance costs. The fair value of the long-term borrowings, including the current portion of long-term borrowings, is determined
using market prices and the EUR/USD foreign exchange rate at the end of December 2023 and 2022, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-
term borrowings.
using market prices and the EUR/USD foreign exchange rate at the end of December 2023 and 2022, respectively. See Note 14, Borrowings, for the fair value of each of the Company’s long-
term borrowings.
Investments in Certain Entities that Calculate NAV Per Share
Investments in Certain Entities that Calculate NAV Per Share
As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes
of an investment company, the Company uses NAV as the fair value. The following tables list information regarding all
As a practical expedient to value certain investments that do not have a readily determinable fair value and have attributes
investments that use a fair value measurement to account for both their financial assets and financial liabilities in their
of an investment company, the Company uses NAV as the fair value. The following tables list information regarding all
calculation of a NAV per share (or equivalent).
investments that use a fair value measurement to account for both their financial assets and financial liabilities in their
calculation of a NAV per share (or equivalent).
Total Unfunded
Commitments
Total Unfunded
Commitments
Redemption
Frequency
Redemption
Frequency
Redemption
Notice Period
Redemption
Notice Period
1 – 90 days
1 – 90 days
N/R
60 days
N/R
60 days
1 – 90 days
1 – 90 days
N/R
N/R
N/R
90 days
N/R
90 days
Daily/Monthly (4%)
Quarterly (8%)
Daily/Monthly (4%)
N/R (88%)
Quarterly (8%)
N/R
N/R (88%)
Quarterly (10%)
N/R
N/R (90%)
Quarterly (10%)
Monthly
N/R (90%)
Monthly
N/R
N/R
N/R
Quarterly (83%)
N/R
N/R (17%)
Quarterly (83%)
N/R (17%)
December 31, 2023
December 31, 2023
(in millions)
(in millions)
Equity method(1):
Hedge funds/funds of hedge funds/other
Equity method(1):
Hedge funds/funds of hedge funds/other
Private equity funds
Real assets funds
Private equity funds
Real assets funds
Investments related to deferred cash compensation plan
Investments related to deferred cash compensation plan
Consolidated sponsored investment products:
Real assets funds
Consolidated sponsored investment products:
Private equity funds
Real assets funds
Hedge funds/other
Private equity funds
Hedge funds/other
Total
Total
December 31, 2022
December 31, 2022
(in millions)
(in millions)
Equity method(1):
Hedge funds/funds of hedge funds/other
Equity method(1):
Hedge funds/funds of hedge funds/other
Private equity funds
Real assets funds
Private equity funds
Real assets funds
Consolidated sponsored investment products:
Real assets funds
Consolidated sponsored investment products:
Private equity funds
Real assets funds
Other funds
Private equity funds
Other funds
Total
Total
N/R – Not Redeemable
N/R – Not Redeemable
Ref
Ref
(a)
(a)
(b)
(c)
(b)
(c)
(e)
(e)
(c)
(d)
(c)
(a)
(d)
(a)
Ref
Ref
(a)
(a)
(b)
(c)
(b)
(c)
(c)
(d)
(c)
(d)
Fair Value
Fair Value
$ 588
$ 588
1,264
417
1,264
417
241
241
154
145
154
168
145
168
$ 2,977
$ 2,977
Fair
Value
Fair
Value
$ 525
$ 525
885
304
885
304
116
183
116
17
183
17
$ 2,030
$ 2,030
$ 134
$ 134
218
210
218
210
—
—
62
37
62
64
37
64
$ 725
$ 725
Total
Unfunded
Total
Commitments
Unfunded
Commitments
$ 149
$ 149
174
304
174
304
94
37
94
31
37
31
$ 789
$ 789
BlackRock | 2023 Form 10-K
F-22
F-22 BlackRock | 2023 Form 10-K
(1) Comprised of equity method investments, which include investment companies that account for their financial assets and most financial liabilities under fair value measures; therefore, the
(1) Comprised of equity method investments, which include investment companies that account for their financial assets and most financial liabilities under fair value measures; therefore, the
Company’s investment in such equity method investees approximates fair value.
(a)
(a)
(b)
(b)
(c)
(c)
(d)
(d)
(e)
(e)
Company’s investment in such equity method investees approximates fair value.
This category includes hedge funds, funds of hedge funds, and other funds that invest primarily in equities, fixed income securities, private credit, opportunistic and mortgage instruments and
other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The liquidation period for the
This category includes hedge funds, funds of hedge funds, and other funds that invest primarily in equities, fixed income securities, private credit, opportunistic and mortgage instruments and
investments in the funds that are not subject to redemption is unknown at both December 31, 2023 and 2022.
other third-party hedge funds. The fair values of the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The liquidation period for the
investments in the funds that are not subject to redemption is unknown at both December 31, 2023 and 2022.
This category includes private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these
investments have been estimated using capital accounts representing the Company’s ownership interest in the funds and may also include other performance inputs. The Company’s investment
This category includes private equity funds that initially invest in nonmarketable securities of private companies, which ultimately may become public in the future. The fair values of these
in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. The liquidation period for
investments have been estimated using capital accounts representing the Company’s ownership interest in the funds and may also include other performance inputs. The Company’s investment
the investments in these funds is unknown at both December 31, 2023 and 2022.
in each fund is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying assets of the private equity funds. The liquidation period for
the investments in these funds is unknown at both December 31, 2023 and 2022.
This category includes several real assets funds that invest directly and indirectly in real estate or infrastructure. The fair values of the investments have been estimated using capital accounts
representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through
This category includes several real assets funds that invest directly and indirectly in real estate or infrastructure. The fair values of the investments have been estimated using capital accounts
distributions and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both December 31,
representing the Company’s ownership interest in the funds. The Company’s investments that are not subject to redemption or are not currently redeemable are normally returned through
2023 and 2022. The total remaining unfunded commitments were $272 million and $398 million at December 31, 2023 and 2022, respectively. The Company’s portion of the total
distributions and realizations of the underlying assets of the funds. The liquidation period for the investments in the funds that are not subject to redemptions is unknown at both December 31,
remaining unfunded commitments was $248 million and $364 million at December 31, 2023 and 2022, respectively.
2023 and 2022. The total remaining unfunded commitments were $272 million and $398 million at December 31, 2023 and 2022, respectively. The Company’s portion of the total
remaining unfunded commitments was $248 million and $364 million at December 31, 2023 and 2022, respectively.
This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. These investments are not subject to redemption or
are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature
This category includes the underlying third-party private equity funds within consolidated BlackRock sponsored private equity funds of funds. These investments are not subject to redemption or
of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for
are not currently redeemable; however, for certain funds, the Company may sell or transfer its interest, which may need approval by the general partner of the underlying funds. Due to the nature
the underlying assets of these funds is unknown.
of the investments in this category, the Company reduces its investment by distributions that are received through the realization of the underlying assets of the funds. The liquidation period for
the underlying assets of these funds is unknown.
This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, mortgage instruments and other third-party hedge funds. The fair values of
the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The investments in hedge funds will be redeemed upon settlement of certain
This category includes hedge funds and funds of hedge funds that invest primarily in equities, fixed income securities, mortgage instruments and other third-party hedge funds. The fair values of
deferred cash compensation liabilities.
the investments have been estimated using the NAV of the Company’s ownership interest in partners’ capital. The investments in hedge funds will be redeemed upon settlement of certain
deferred cash compensation liabilities.
Fair Value Option
Fair Value Option
At December 31, 2023 and 2022, the Company elected the
fair value option for certain investments in CLOs of
At December 31, 2023 and 2022, the Company elected the
approximately $42 million and $52 million, respectively,
fair value option for certain investments in CLOs of
reported within investments.
approximately $42 million and $52 million, respectively,
reported within investments.
In addition, the Company elected the fair value option for
bank loans and borrowings of a consolidated CLO, recorded
In addition, the Company elected the fair value option for
within investments and other liabilities, respectively. The
bank loans and borrowings of a consolidated CLO, recorded
following table summarizes the information related to these
within investments and other liabilities, respectively. The
bank loans and borrowings at December 31, 2023 and 2022:
following table summarizes the information related to these
bank loans and borrowings at December 31, 2023 and 2022:
(in millions)
(in millions)
CLO Bank loans:
CLO Bank loans:
outstanding
outstanding
Aggregate principal amounts
Aggregate principal amounts
Fair value
Fair value
Aggregate unpaid principal
balance in excess of (less
Aggregate unpaid principal
than) fair value
balance in excess of (less
than) fair value
CLO Borrowings:
CLO Borrowings:
outstanding
outstanding
Aggregate principal amounts
Aggregate principal amounts
Fair value
Fair value
December 31,
2023
December 31,
2023
December 31,
2022
December 31,
2022
$ 203
$ 203
194
194
$
$
9
9
$ 190
$ 190
$ 180
$ 180
$ 238
$ 238
234
234
$
$
4
4
$ 245
$ 245
$ 245
$ 245
market price and interest rate exposures with respect to its
total portfolio of seed investments in sponsored
market price and interest rate exposures with respect to its
investment products. At December 31, 2023 and 2022, the
total portfolio of seed investments in sponsored
Company had outstanding exchange traded futures
investment products. At December 31, 2023 and 2022, the
related to this macro hedging strategy with aggregate
Company had outstanding exchange traded futures
notional values of approximately $1.8 billion and
related to this macro hedging strategy with aggregate
$1.5 billion, with expiration dates during the first quarter
notional values of approximately $1.8 billion and
of 2024 and 2023, respectively.
$1.5 billion, with expiration dates during the first quarter
of 2024 and 2023, respectively.
In addition, beginning in the first quarter of 2023, the
Company entered into futures to economically hedge the
In addition, beginning in the first quarter of 2023, the
exposure to market movements on certain deferred cash
Company entered into futures to economically hedge the
compensation plans. At December 31, 2023 , the
exposure to market movements on certain deferred cash
Company had outstanding exchange traded futures with
compensation plans. At December 31, 2023 , the
aggregate notional values related to its deferred cash
Company had outstanding exchange traded futures with
compensation hedging program of approximately
aggregate notional values related to its deferred cash
$204 million, with expiration dates during the first quarter
compensation hedging program of approximately
of 2024.
$204 million, with expiration dates during the first quarter
of 2024.
Changes in the value of the futures contracts are
recognized as gains or losses within nonoperating income
Changes in the value of the futures contracts are
(expense). Variation margin payments, which represent
recognized as gains or losses within nonoperating income
settlements of profit/loss, are generally received or made
(expense). Variation margin payments, which represent
daily, and are reflected in other assets and other liabilities
settlements of profit/loss, are generally received or made
on the consolidated statements of financial condition.
daily, and are reflected in other assets and other liabilities
These amounts were not material as of December 31,
on the consolidated statements of financial condition.
2023 and 2022.
These amounts were not material as of December 31,
2023 and 2022.
The Company executes forward foreign currency
exchange contracts to mitigate the risk of certain foreign
The Company executes forward foreign currency
exchange movements. At December 31, 2023 and 2022,
exchange contracts to mitigate the risk of certain foreign
the Company had outstanding forward foreign currency
exchange movements. At December 31, 2023 and 2022,
exchange contracts with aggregate notional values of
the Company had outstanding forward foreign currency
approximately $3.1 billion and $2.2 billion, with expiration
exchange contracts with aggregate notional values of
dates in January 2024 and January 2023, respectively.
approximately $3.1 billion and $2.2 billion, with expiration
dates in January 2024 and January 2023, respectively.
At both December 31, 2023 and 2022, the Company had a
derivative providing credit protection with a notional
At both December 31, 2023 and 2022, the Company had a
amount of approximately $17 million to a counterparty,
derivative providing credit protection with a notional
representing the Company’s maximum risk of loss with
amount of approximately $17 million to a counterparty,
respect to the derivative. The Company carries the
representing the Company’s maximum risk of loss with
derivative at fair value based on the expected discounted
respect to the derivative. The Company carries the
future cash outflows under the arrangement.
derivative at fair value based on the expected discounted
future cash outflows under the arrangement.
Redemption
Frequency
Redemption
Frequency
Daily/Monthly (23%)
Quarterly (13%)
Daily/Monthly (23%)
N/R (64%)
Quarterly (13%)
N/R
N/R (64%)
Quarterly (17%)
N/R
N/R (83%)
Quarterly (17%)
N/R (83%)
N/R
N/R
N/R
Quarterly
N/R
Quarterly
Redemption
Notice Period
Redemption
Notice Period
1 – 90 days
1 – 90 days
N/R
60 days
N/R
60 days
N/R
N/R
N/R
90 days
N/R
90 days
At December 31, 2023, the principal amounts outstanding
of the borrowings issued by the CLOs mature in 2030 and
At December 31, 2023, the principal amounts outstanding
may be repaid prior to maturity at any time.
of the borrowings issued by the CLOs mature in 2030 and
may be repaid prior to maturity at any time.
During the year ended December 31, 2023 and 2022, the
net gains (losses) from the change in fair value of the bank
During the year ended December 31, 2023 and 2022, the
loans and borrowings held by the consolidated CLO were
net gains (losses) from the change in fair value of the bank
not material and were recorded in net gain (loss) on the
loans and borrowings held by the consolidated CLO were
consolidated statements of income. The change in fair
not material and were recorded in net gain (loss) on the
value of the assets and liabilities included interest income
consolidated statements of income. The change in fair
and expense, respectively.
value of the assets and liabilities included interest income
and expense, respectively.
8. Derivatives and Hedging
8. Derivatives and Hedging
The Company maintains a program to enter into exchange
traded futures as a macro hedging strategy to hedge
The Company maintains a program to enter into exchange
traded futures as a macro hedging strategy to hedge
F-23 BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
F-24
BlackRock | 2023 Form 10-K
The following table presents the fair values of derivative instruments recognized in the consolidated statements of
financial condition at December 31, 2023:
The following table presents the fair values of derivative instruments recognized in the consolidated statements of
financial condition at December 31, 2023:
(in millions)
F-23
F-24 BlackRock | 2023 Form 10-K
11. Intangible Assets
11. Intangible Assets
Intangible assets at December 31, 2023 and 2022 consisted of the following:
Intangible assets at December 31, 2023 and 2022 consisted of the following:
Assets
Assets
Liabilities
Liabilities
Statement of
Financial Condition
Statement of
Classification
Financial Condition
Classification
December 31,
2023
December 31,
2023
December 31,
2022
December 31,
2022
Statement of
Financial Condition
Statement of
Classification
Financial Condition
Classification
December 31,
2023
December 31,
2023
December 31,
2022
December 31,
2022
(in millions)
(in millions)
Derivative instruments
Derivative instruments
Forward foreign currency
exchange contracts
Forward foreign currency
exchange contracts
Other assets
Other assets
$ 19
$ 19
$ 1
$ 1
Other liabilities
Other liabilities
$ 6
$ 6
$ 19
$ 19
The following table presents realized and unrealized gains (losses) recognized in the consolidated statements of income
on derivative instruments:
The following table presents realized and unrealized gains (losses) recognized in the consolidated statements of income
on derivative instruments:
(in millions)
(in millions)
Derivative Instruments
Exchange traded futures(1)
Derivative Instruments
Exchange traded futures(1)
Forward foreign currency exchange contracts
Forward foreign currency exchange contracts
Total return swaps
Total return swaps
Total gain (loss) from derivative instruments
Total gain (loss) from derivative instruments
(1)
Statement of Income Classification
Statement of Income Classification
Nonoperating income (expense)
Nonoperating income (expense)
General and administration expense
General and administration expense
Nonoperating income (expense)
Nonoperating income (expense)
Gains (Losses)
Gains (Losses)
2022
2022
2021
2021
2023
2023
$ (88)
$ (88)
98
98
—
—
$ 10
$ 10
$ 36
$ 36
(222)
(222)
83
83
$ (103)
$ (103)
$
$
—
—
(29)
(29)
(99)
(99)
$ (128)
$ (128)
(1)
Amounts include $112 million of losses and $36 million of gains on futures used as a macro hedging strategy of seed investments for 2023 and 2022, respectively. In addition, amounts
include $24 million of gains on futures used to economically hedge certain deferred cash compensation plans for 2023.
Amounts include $112 million of losses and $36 million of gains on futures used as a macro hedging strategy of seed investments for 2023 and 2022, respectively. In addition, amounts
include $24 million of gains on futures used to economically hedge certain deferred cash compensation plans for 2023.
The Company’s CIPs may utilize derivative instruments as a part of the funds’ investment strategies. The change in fair
value of such derivatives, which is recorded in nonoperating income (expense), was not material for 2023, 2022 and 2021.
The Company’s CIPs may utilize derivative instruments as a part of the funds’ investment strategies. The change in fair
value of such derivatives, which is recorded in nonoperating income (expense), was not material for 2023, 2022 and 2021.
See Note 14, Borrowings, for more information on the Company’s net investment hedge.
See Note 14, Borrowings, for more information on the Company’s net investment hedge.
9. Property and Equipment
9. Property and Equipment
Property and equipment consists of the following:
Property and equipment consists of the following:
(in millions)
(in millions)
Property and equipment:
Property and equipment:
Land
Land
Building
Building
Building improvements
Building improvements
Leasehold
Leasehold
Equipment and computer
Equipment and computer
Other transportation
Other transportation
Furniture and fixtures
Furniture and fixtures
Construction in progress(1)
Construction in progress(1)
improvements(1)
improvements(1)
software
software
equipment
equipment
Total
Total
Less: accumulated
depreciation and
Less: accumulated
amortization
depreciation and
amortization
Property and equipment, net
Property and equipment, net
N/A – Not Applicable
Estimated Useful
Life-In Years
Estimated Useful
Life-In Years
N/A
N/A
39
39
15
15
1-15
1-15
3
3
10
10
7
7
N/A
N/A
December 31,
December 31,
2023
2023
2022
2022
$
$
6 $
6 $
33
33
31
31
1,036
1,036
1,088
1,088
192
192
99
99
66
66
2,551
2,551
6
6
33
33
31
31
613
613
1,033
1,033
192
192
96
96
417
417
2,421
2,421
1,439
1,439
1,390
1,390
$ 1,112 $ 1,031
$ 1,112 $ 1,031
N/A – Not Applicable
(1) During 2023, approximately $400 million was reclassed from construction in progress to
leasehold improvements primarily related to the Company’s new headquarters located at
(1) During 2023, approximately $400 million was reclassed from construction in progress to
50 Hudson Yards in New York.
leasehold improvements primarily related to the Company’s new headquarters located at
50 Hudson Yards in New York.
Qualifying software costs of approximately $103 million,
$91 million and $87 million have been capitalized within
Qualifying software costs of approximately $103 million,
equipment and computer software during 2023, 2022 and
$91 million and $87 million have been capitalized within
2021, respectively, and are being amortized over an
equipment and computer software during 2023, 2022 and
estimated useful life of three years.
2021, respectively, and are being amortized over an
estimated useful life of three years.
Depreciation and amortization expense was $263 million,
$251 million and $249 million for 2023, 2022 and 2021,
Depreciation and amortization expense was $263 million,
respectively.
$251 million and $249 million for 2023, 2022 and 2021,
respectively.
10. Goodwill
10. Goodwill
Goodwill activity during 2023 and 2022 was as follows:
Goodwill activity during 2023 and 2022 was as follows:
(in millions)
(in millions)
Beginning of year balance
Beginning of year balance
Acquisitions(1)
Acquisitions(1)
Other
Other
End of year balance
End of year balance
(1)
2023
2023
$ 15,341
$ 15,341
184
184
(1)
(1)
$ 15,524
$ 15,524
2022
2022
$ 15,351
$ 15,351
—
—
(10)
(10)
$ 15,341
$ 15,341
(1)
Amount represents goodwill in connection with the Kreos Transaction. The Company
believes this acquisition will add to the Company’s position as a leading global credit asset
Amount represents goodwill in connection with the Kreos Transaction. The Company
manager and advance its ambitions to provide clients with a diverse range of private
believes this acquisition will add to the Company’s position as a leading global credit asset
market investment products and solutions. Total consideration for the transaction was
manager and advance its ambitions to provide clients with a diverse range of private
approximately $250 million, which included contingent consideration.
market investment products and solutions. Total consideration for the transaction was
approximately $250 million, which included contingent consideration.
BlackRock assessed its goodwill for impairment as of
July 31, 2023, 2022 and 2021 and considered such
BlackRock assessed its goodwill for impairment as of
factors as the book value and the market capitalization of
July 31, 2023, 2022 and 2021 and considered such
the Company. The impairment assessment indicated no
factors as the book value and the market capitalization of
impairment charges were required. The Company
the Company. The impairment assessment indicated no
continues to monitor its book value per share compared
impairment charges were required. The Company
with closing prices of its common stock for potential
continues to monitor its book value per share compared
indicators of impairment. At December 31, 2023, the
with closing prices of its common stock for potential
Company’s common stock closed at a market price of
indicators of impairment. At December 31, 2023, the
$811.80, which exceeded its book value of $264.96 per
Company’s common stock closed at a market price of
share.
$811.80, which exceeded its book value of $264.96 per
share.
(in millions)
At December 31, 2023
At December 31, 2023
Indefinite-lived intangible assets:
Indefinite-lived intangible assets:
Management contracts
Management contracts
Trade names/trademarks
Trade names/trademarks
License
License
Total indefinite-lived intangible assets
Total indefinite-lived intangible assets
Finite-lived intangible assets(1):
Finite-lived intangible assets(1):
Management contracts
Management contracts
Investor/customer relationships
Investor/customer relationships
Technology-related
Technology-related
Trade names/trademarks
Trade names/trademarks
Total finite-lived intangible assets
Total finite-lived intangible assets
Total intangible assets
Total intangible assets
At December 31, 2022
At December 31, 2022
Indefinite-lived intangible assets:
Indefinite-lived intangible assets:
Management contracts
Management contracts
Trade names/trademarks
Trade names/trademarks
License
License
Total indefinite-lived intangible assets
Total indefinite-lived intangible assets
Finite-lived intangible assets:
Finite-lived intangible assets:
Management contracts
Management contracts
Investor/customer relationships
Investor/customer relationships
Technology-related
Technology-related
Trade names/trademarks
Trade names/trademarks
Total finite-lived intangible assets
Total finite-lived intangible assets
Total intangible assets
Total intangible assets
N/A – Not Applicable
Remaining
Weighted-
Remaining
Average
Weighted-
Estimated
Average
Useful Life
Estimated
Useful Life
N/A
N/A
N/A
N/A
N/A
N/A
3.7
3.7
6.0
6.0
4.6
4.6
1.8
1.8
5.4
5.4
N/A
N/A
N/A
N/A
N/A
N/A
2.9
2.9
7.0
7.0
4.6
4.6
2.6
2.6
6.1
6.1
Gross
Carrying
Gross
Amount
Carrying
Amount
$ 16,169
$ 16,169
1,403
1,403
6
6
17,578
17,578
244
244
785
785
260
260
9
9
1,298
1,298
$ 18,876
$ 18,876
$ 16,169
$ 16,169
1,403
1,403
6
6
17,578
17,578
177
177
746
746
261
261
23
23
1,207
1,207
$ 18,785
$ 18,785
Accumulated
Amortization
Accumulated
Amortization
$ —
$ —
—
—
—
—
—
—
156
156
338
338
118
118
6
6
618
618
$ 618
$ 618
$ —
$ —
—
—
—
—
—
—
130
130
254
254
81
81
18
18
483
483
$ 483
$ 483
Net
Carrying
Net
Amount
Carrying
Amount
$ 16,169
$ 16,169
1,403
1,403
6
6
17,578
17,578
88
88
447
447
142
142
3
3
680
680
$ 18,258
$ 18,258
$ 16,169
$ 16,169
1,403
1,403
6
6
17,578
17,578
47
47
492
492
180
180
5
5
724
724
$ 18,302
$ 18,302
N/A – Not Applicable
(1)
(1)
In connection with the Kreos Transaction, the Company acquired approximately $67 million of finite-lived management contracts and $39 million of finite-lived investor relationships with
weighted-average estimated lives of approximately five and ten years, respectively.
In connection with the Kreos Transaction, the Company acquired approximately $67 million of finite-lived management contracts and $39 million of finite-lived investor relationships with
weighted-average estimated lives of approximately five and ten years, respectively.
The impairment tests performed for intangible assets as of
July 31, 2023, 2022 and 2021 indicated no impairment
The impairment tests performed for intangible assets as of
charges were required.
July 31, 2023, 2022 and 2021 indicated no impairment
charges were required.
Estimated amortization expense for finite-lived intangible
assets for each of the five succeeding years is as follows:
Estimated amortization expense for finite-lived intangible
assets for each of the five succeeding years is as follows:
12. Leases
12. Leases
The following table presents components of lease cost
included in general and administration expense on the
The following table presents components of lease cost
consolidated statements of income:
included in general and administration expense on the
consolidated statements of income:
(in millions)
(in millions)
Year
(in millions)
Year
2024
2024
2025
2025
2026
2026
2027
2027
2028
2028
Amount
Amount
$ 151
$ 151
143
143
129
129
103
103
83
83
(in millions)
Lease cost:
Lease cost:
Operating lease cost(1)
Operating lease cost(1)
Variable lease cost(2)
Variable lease cost(2)
Total lease cost
Total lease cost
(1)
2023
2023
$ 189
$ 189
49
49
$ 238
$ 238
2022
2022
$ 216
$ 216
39
39
$ 255
$ 255
2021
2021
$ 184
$ 184
44
44
$ 228
$ 228
Amounts include short-term leases, which are immaterial for 2023, 2022 and 2021.
(1)
(2)
(2)
Amounts include short-term leases, which are immaterial for 2023, 2022 and 2021.
Amounts include operating lease payments, which may be adjusted based on usage,
changes in an index or market rate, as well as common area maintenance charges and
Amounts include operating lease payments, which may be adjusted based on usage,
other variable costs not included in the measurement of ROU assets and operating lease
changes in an index or market rate, as well as common area maintenance charges and
liabilities.
other variable costs not included in the measurement of ROU assets and operating lease
liabilities.
F-25 BlackRock | 2023 Form 10-K
Supplemental information related to operating leases is summarized below:
Supplemental information related to operating leases is summarized below:
(in millions)
Operating cash flows from operating leases included in the measurement of operating lease
Operating cash flows from operating leases included in the measurement of operating lease
(in millions)
Supplemental cash flow information:
Supplemental cash flow information:
liabilities
liabilities
Supplemental noncash information:
Supplemental noncash information:
ROU assets in exchange for operating lease liabilities
ROU assets in exchange for operating lease liabilities
BlackRock | 2023 Form 10-K
F-25
2023
2023
2022
2022
2021
2021
$ 142
$ 142
$ 32
$ 32
$ 162
$ 162
$ 115
$ 115
$
$
75
75
$ 1,165
$ 1,165
December 31, 2023
December 31, 2023
December 31, 2022
December 31, 2022
15 years
15 years
3%
3%
16 years
16 years
3%
3%
are considered to be an extension of BlackRock’s core
business. These investments included equity securities,
are considered to be an extension of BlackRock’s core
generally measured at fair value or under the
business. These investments included equity securities,
measurement alternative to fair value for nonmarketable
generally measured at fair value or under the
securities, and a strategic private debt investment
measurement alternative to fair value for nonmarketable
measured at fair value. Changes in value of the equity
securities, and a strategic private debt investment
securities are recorded in nonoperating income (expense)
measured at fair value. Changes in value of the equity
and changes in value of the debt security is recorded in
securities are recorded in nonoperating income (expense)
AOCI, net of tax. See Note 2, Significant Accounting
and changes in value of the debt security is recorded in
Policies, for further information.
AOCI, net of tax. See Note 2, Significant Accounting
Policies, for further information.
14. Borrowings
14. Borrowings
Short-Term Borrowings
Short-Term Borrowings
2023 Revolving Credit Facility. The Company maintains an
unsecured revolving credit facility which is available for
2023 Revolving Credit Facility. The Company maintains an
working capital and general corporate purposes (the
unsecured revolving credit facility which is available for
“2023 credit facility”). In March 2023, the 2023 credit
working capital and general corporate purposes (the
facility was amended to, among other things, (1) increase
“2023 credit facility”). In March 2023, the 2023 credit
the aggregate commitment amount by $300 million to
facility was amended to, among other things, (1) increase
$5 billion, (2) extend the maturity date to March 2028 and
the aggregate commitment amount by $300 million to
(3) change the secured overnight financing rate (“SOFR”)
$5 billion, (2) extend the maturity date to March 2028 and
adjustment to 10 bps per annum for all SOFR-based
(3) change the secured overnight financing rate (“SOFR”)
borrowings. The 2023 credit facility permits the Company
adjustment to 10 bps per annum for all SOFR-based
to request up to an additional $1.0 billion of borrowing
borrowings. The 2023 credit facility permits the Company
capacity, subject to lender credit approval, which could
to request up to an additional $1.0 billion of borrowing
increase the overall size of the 2023 credit facility to an
capacity, subject to lender credit approval, which could
aggregate principal amount of up to $6 billion. The 2023
increase the overall size of the 2023 credit facility to an
credit facility requires the Company not to exceed a
aggregate principal amount of up to $6 billion. The 2023
maximum leverage ratio (ratio of net debt to earnings
credit facility requires the Company not to exceed a
before interest, taxes, depreciation and amortization,
maximum leverage ratio (ratio of net debt to earnings
where net debt equals total debt less unrestricted cash) of
before interest, taxes, depreciation and amortization,
3 to 1, which was satisfied with a ratio of less than 1 to 1 at
where net debt equals total debt less unrestricted cash) of
December 31, 2023. At December 31, 2023, the Company
3 to 1, which was satisfied with a ratio of less than 1 to 1 at
had no amount outstanding under the 2023 credit facility.
December 31, 2023. At December 31, 2023, the Company
had no amount outstanding under the 2023 credit facility.
Commercial Paper Program. The Company can issue
unsecured commercial paper notes (the “CP Notes”) on a
Commercial Paper Program. The Company can issue
private-placement basis up to a maximum aggregate
unsecured commercial paper notes (the “CP Notes”) on a
amount outstanding at any time of $4 billion. The
private-placement basis up to a maximum aggregate
commercial paper program is currently supported by the
amount outstanding at any time of $4 billion. The
2023 credit facility. At December 31, 2023, BlackRock had
commercial paper program is currently supported by the
no CP Notes outstanding.
2023 credit facility. At December 31, 2023, BlackRock had
no CP Notes outstanding.
Lease term and discount rate:
Lease term and discount rate:
Weighted-average remaining lease term
Weighted-average remaining lease term
Weighted-average discount rate
Weighted-average discount rate
(in millions)
Maturity of operating lease liabilities at December 31, 2023
(in millions)
Maturity of operating lease liabilities at December 31, 2023
2024
2024
2025
2025
2026
2026
2027
2027
2028
2028
Thereafter
Thereafter
Total lease payments
Total lease payments
Less: imputed interest
Less: imputed interest
Present value of lease liabilities
Present value of lease liabilities
Amount
Amount
$ 180
$ 180
164
164
153
153
147
147
141
141
1,379
1,379
2,164
2,164
(380)
(380)
$ 1,784
$ 1,784
13. Other Assets
13. Other Assets
At December 31, 2023 and 2022, the Company had
$773 million and $809 million, respectively, of equity
At December 31, 2023 and 2022, the Company had
method investments recorded within other assets on the
$773 million and $809 million, respectively, of equity
consolidated statements of financial condition, since such
method investments recorded within other assets on the
investees are considered to be an extension of BlackRock’s
consolidated statements of financial condition, since such
core business. BlackRock’s share of these investees’
investees are considered to be an extension of BlackRock’s
underlying net income or loss is based upon the most
core business. BlackRock’s share of these investees’
currently available information and is recorded within
underlying net income or loss is based upon the most
advisory and other revenue. In 2022, the Company
currently available information and is recorded within
recorded a nonoperating, noncash, pre-tax gain of
advisory and other revenue. In 2022, the Company
approximately $267 million in connection with the dilution
recorded a nonoperating, noncash, pre-tax gain of
of its ownership interest to approximately 25% in its
approximately $267 million in connection with the dilution
strategic minority investment in iCapital Network, Inc.
of its ownership interest to approximately 25% in its
(“iCapital”). At December 31, 2023 and 2022, the
strategic minority investment in iCapital Network, Inc.
Company’s ownership interest in iCapital was
(“iCapital”). At December 31, 2023 and 2022, the
approximately 25%, and the carrying value of the
Company’s ownership interest in iCapital was
Company’s interest was $641 million and $669 million,
approximately 25%, and the carrying value of the
respectively. In accordance with GAAP, certain equity
Company’s interest was $641 million and $669 million,
method investees, including iCapital, do not account for
respectively. In accordance with GAAP, certain equity
both their financial assets and liabilities under fair value
method investees, including iCapital, do not account for
measures; therefore, the Company’s investment in such
both their financial assets and liabilities under fair value
equity method investees may not represent fair value.
measures; therefore, the Company’s investment in such
equity method investees may not represent fair value.
At December 31, 2023 and 2022, the Company had
$484 million and $375 million, respectively, of other
At December 31, 2023 and 2022, the Company had
nonequity method corporate minority investments
$484 million and $375 million, respectively, of other
recorded within other assets on the consolidated
nonequity method corporate minority investments
statements of financial condition, since such investees
recorded within other assets on the consolidated
statements of financial condition, since such investees
F-26 BlackRock | 2023 Form 10-K
Long-Term Borrowings
Long-Term Borrowings
The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign
exchange rate at December 31, 2023 included the following:
The carrying value and fair value of long-term borrowings determined using market prices and EUR/USD foreign
exchange rate at December 31, 2023 included the following:
BlackRock | 2023 Form 10-K
F-26
(in millions)
(in millions)
3.50% Notes due 2024
3.50% Notes due 2024
1.25% Notes due 2025
1.25% Notes due 2025
3.20% Notes due 2027
3.20% Notes due 2027
3.25% Notes due 2029
3.25% Notes due 2029
2.40% Notes due 2030
2.40% Notes due 2030
1.90% Notes due 2031
1.90% Notes due 2031
2.10% Notes due 2032
2.10% Notes due 2032
4.75% Notes due 2033
4.75% Notes due 2033
Total long-term borrowings
Total long-term borrowings
(1)
The unamortized discount and debt issuance costs are being amortized over the term of the notes.
Unamortized
Discount
Unamortized
and Debt
Discount
Issuance
and Debt
Costs(1)
Issuance
Costs(1)
$ —
$ —
(1)
(1)
(2)
(2)
(7)
(7)
(4)
(4)
(8)
(8)
(12)
(12)
(20)
(20)
$ (54)
$ (54)
Maturity Amount
Maturity Amount
$ 1,000
$ 1,000
772
772
700
700
1,000
1,000
1,000
1,000
1,250
1,250
1,000
1,000
1,250
1,250
$ 7,972
$ 7,972
Carrying Value
Carrying Value
$ 1,000
$ 1,000
771
771
698
698
993
993
996
996
1,242
1,242
988
988
1,230
1,230
$ 7,918
$ 7,918
Fair Value
Fair Value
$ 995
$ 995
752
752
677
677
948
948
893
893
1,053
1,053
834
834
1,261
1,261
$ 7,413
$ 7,413
The unamortized discount and debt issuance costs are being amortized over the term of the notes.
(1)
Long-term borrowings at December 31, 2022 had a
carrying value of $6.7 billion and a fair value of $5.9 billion
Long-term borrowings at December 31, 2022 had a
determined using market prices at the end of December
carrying value of $6.7 billion and a fair value of $5.9 billion
2022.
determined using market prices at the end of December
2022.
2033 Notes. In May 2023, the Company issued
$1.25 billion in aggregate principal amount of 4.75%
2033 Notes. In May 2023, the Company issued
senior unsecured notes maturing on May 25, 2033 (the
$1.25 billion in aggregate principal amount of 4.75%
“2033 Notes”). The net proceeds of the 2033 Notes are
senior unsecured notes maturing on May 25, 2033 (the
being used for general corporate purposes, which may
“2033 Notes”). The net proceeds of the 2033 Notes are
include the future repayment of all or a portion of the
being used for general corporate purposes, which may
$1.0 billion 3.50% Notes due March 2024. Interest of
include the future repayment of all or a portion of the
approximately $59 million per year is payable semi-
$1.0 billion 3.50% Notes due March 2024. Interest of
annually on May 25 and November 25 of each year,
approximately $59 million per year is payable semi-
commencing on November 25, 2023. The 2033 Notes may
annually on May 25 and November 25 of each year,
be redeemed at the option of the Company, in whole or in
commencing on November 25, 2023. The 2033 Notes may
part, at any time prior to February 25, 2033 at a “make-
be redeemed at the option of the Company, in whole or in
whole” redemption price, or thereafter at 100% of the
part, at any time prior to February 25, 2033 at a “make-
principal amount of the 2033 Notes, in each case plus
whole” redemption price, or thereafter at 100% of the
accrued but unpaid interest.
principal amount of the 2033 Notes, in each case plus
accrued but unpaid interest.
2032 Notes. In December 2021, the Company issued
$1 billion in aggregate principal amount of 2.10% senior
2032 Notes. In December 2021, the Company issued
unsecured and unsubordinated notes maturing on
$1 billion in aggregate principal amount of 2.10% senior
February 25, 2032 (the “2032 Notes”). The net proceeds of
unsecured and unsubordinated notes maturing on
the 2032 Notes were used for general corporate purposes,
February 25, 2032 (the “2032 Notes”). The net proceeds of
which included the repayment of the $750 million 3.375%
the 2032 Notes were used for general corporate purposes,
Notes in June 2022. Interest of approximately $21 million
which included the repayment of the $750 million 3.375%
per year is payable semi-annually on February 25 and
Notes in June 2022. Interest of approximately $21 million
August 25 of each year, which commenced on
per year is payable semi-annually on February 25 and
February 25, 2022. The 2032 Notes may be redeemed
August 25 of each year, which commenced on
prior to November 25, 2031 in whole or in part at any time,
February 25, 2022. The 2032 Notes may be redeemed
at the option of the Company, at a “make-whole”
prior to November 25, 2031 in whole or in part at any time,
redemption price or at 100% of the principal amount of
at the option of the Company, at a “make-whole”
the 2032 Notes thereafter.
redemption price or at 100% of the principal amount of
the 2032 Notes thereafter.
2031 Notes. In April 2020, the Company issued
$1.25 billion in aggregate principal amount of 1.90%
2031 Notes. In April 2020, the Company issued
senior unsecured and unsubordinated notes maturing on
$1.25 billion in aggregate principal amount of 1.90%
January 28, 2031 (the “2031 Notes”). The net proceeds of
senior unsecured and unsubordinated notes maturing on
the 2031 Notes were used for general corporate purposes.
January 28, 2031 (the “2031 Notes”). The net proceeds of
Interest of approximately $24 million per year is payable
the 2031 Notes were used for general corporate purposes.
semi-annually on January 28 and July 28 of each year,
Interest of approximately $24 million per year is payable
which commenced on July 28, 2020. The 2031 Notes
semi-annually on January 28 and July 28 of each year,
may be redeemed prior to October 28, 2030 in whole or
which commenced on July 28, 2020. The 2031 Notes
in part at any time, at the option of the Company, at a
may be redeemed prior to October 28, 2030 in whole or
in part at any time, at the option of the Company, at a
“make-whole” redemption price or at 100% of the
principal amount of the 2031 Notes thereafter.
“make-whole” redemption price or at 100% of the
principal amount of the 2031 Notes thereafter.
2030 Notes. In January 2020, the Company issued
$1 billion in aggregate principal amount of 2.40% senior
2030 Notes. In January 2020, the Company issued
unsecured and unsubordinated notes maturing on
$1 billion in aggregate principal amount of 2.40% senior
April 30, 2030 (the “2030 Notes”). The net proceeds of the
unsecured and unsubordinated notes maturing on
2030 Notes were used for general corporate purposes.
April 30, 2030 (the “2030 Notes”). The net proceeds of the
Interest of approximately $24 million per year is payable
2030 Notes were used for general corporate purposes.
semi-annually on April 30 and October 30 of each year,
Interest of approximately $24 million per year is payable
which commenced on April 30, 2020. The 2030 Notes may
semi-annually on April 30 and October 30 of each year,
be redeemed prior to January 30, 2030 in whole or in part
which commenced on April 30, 2020. The 2030 Notes may
at any time, at the option of the Company, at a “make-
be redeemed prior to January 30, 2030 in whole or in part
whole” redemption price or at 100% of the principal
at any time, at the option of the Company, at a “make-
amount of the 2030 Notes thereafter.
whole” redemption price or at 100% of the principal
amount of the 2030 Notes thereafter.
2029 Notes. In April 2019, the Company issued $1 billion
in aggregate principal amount of 3.25% senior unsecured
2029 Notes. In April 2019, the Company issued $1 billion
and unsubordinated notes maturing on April 30, 2029 (the
in aggregate principal amount of 3.25% senior unsecured
“2029 Notes”). The net proceeds of the 2029 Notes were
and unsubordinated notes maturing on April 30, 2029 (the
used for general corporate purposes, which included a
“2029 Notes”). The net proceeds of the 2029 Notes were
portion of the purchase price of the eFront Transaction,
used for general corporate purposes, which included a
repayment of a portion of the $1 billion 5.00% notes in
portion of the purchase price of the eFront Transaction,
December 2019 and repayment of borrowings under its
repayment of a portion of the $1 billion 5.00% notes in
commercial paper program. Interest is payable semi-
December 2019 and repayment of borrowings under its
annually on April 30 and October 30 of each year, which
commercial paper program. Interest is payable semi-
commenced on October 30, 2019, and is approximately
annually on April 30 and October 30 of each year, which
$33 million per year. The 2029 Notes may be redeemed
commenced on October 30, 2019, and is approximately
prior to January 30, 2029 in whole or in part at any time, at
$33 million per year. The 2029 Notes may be redeemed
the option of the Company, at a “make-whole” redemption
prior to January 30, 2029 in whole or in part at any time, at
price or at par thereafter.
the option of the Company, at a “make-whole” redemption
price or at par thereafter.
2027 Notes. In March 2017, the Company issued
$700 million in aggregate principal amount of 3.20%
2027 Notes. In March 2017, the Company issued
senior unsecured and unsubordinated notes maturing on
$700 million in aggregate principal amount of 3.20%
March 15, 2027 (the “2027 Notes”). The net proceeds of
senior unsecured and unsubordinated notes maturing on
the 2027 Notes were used to fully repay $700 million in
March 15, 2027 (the “2027 Notes”). The net proceeds of
aggregate principal amount outstanding of 6.25% notes
the 2027 Notes were used to fully repay $700 million in
in April 2017 prior to their maturity in September 2017.
aggregate principal amount outstanding of 6.25% notes
Interest is payable semi-annually on March 15 and
in April 2017 prior to their maturity in September 2017.
September 15 of each year, and is approximately
Interest is payable semi-annually on March 15 and
$22 million per year. The 2027 Notes may be redeemed
September 15 of each year, and is approximately
prior to maturity at any time in whole or in part at the
$22 million per year. The 2027 Notes may be redeemed
option of the Company at a “make-whole” redemption
prior to maturity at any time in whole or in part at the
price.
option of the Company at a “make-whole” redemption
price.
F-27 BlackRock | 2023 Form 10-K
2025 Notes. In May 2015, the Company issued
€700 million of 1.25% senior unsecured notes maturing
2025 Notes. In May 2015, the Company issued
€700 million of 1.25% senior unsecured notes maturing
on May 6, 2025 (the “2025 Notes”). The notes are listed on
the New York Stock Exchange. The net proceeds of the
on May 6, 2025 (the “2025 Notes”). The notes are listed on
2025 Notes were used for general corporate purposes,
the New York Stock Exchange. The net proceeds of the
including refinancing of outstanding indebtedness.
2025 Notes were used for general corporate purposes,
Interest of approximately $11 million per year based on
including refinancing of outstanding indebtedness.
current exchange rates is payable annually on May 6 of
Interest of approximately $11 million per year based on
each year. The 2025 Notes may be redeemed in whole or
current exchange rates is payable annually on May 6 of
in part prior to maturity at any time at the option of the
each year. The 2025 Notes may be redeemed in whole or
Company at a “make-whole” redemption price.
in part prior to maturity at any time at the option of the
Company at a “make-whole” redemption price.
Upon conversion to US dollars the Company designated
the €700 million debt offering as a net investment hedge
Upon conversion to US dollars the Company designated
the €700 million debt offering as a net investment hedge
to offset its currency exposure relating to its net
investment in certain euro functional currency operations.
to offset its currency exposure relating to its net
A loss of $20 million (net of tax benefit of $6 million), gain
investment in certain euro functional currency operations.
of $37 million (net of tax expense of $12 million), and a
A loss of $20 million (net of tax benefit of $6 million), gain
gain of $46 million (net of tax expense of $14 million) were
of $37 million (net of tax expense of $12 million), and a
recognized in other comprehensive income for 2023, 2022
gain of $46 million (net of tax expense of $14 million) were
and 2021, respectively. No hedge ineffectiveness was
recognized in other comprehensive income for 2023, 2022
recognized during 2023, 2022 and 2021.
and 2021, respectively. No hedge ineffectiveness was
recognized during 2023, 2022 and 2021.
2024 Notes. In March 2014, the Company issued
$1 billion in aggregate principal amount of 3.50% senior
2024 Notes. In March 2014, the Company issued
unsecured and unsubordinated notes maturing on
$1 billion in aggregate principal amount of 3.50% senior
March 18, 2024 (the “2024 Notes”). The net proceeds of
unsecured and unsubordinated notes maturing on
the 2024 Notes were used to refinance certain
March 18, 2024 (the “2024 Notes”). The net proceeds of
indebtedness which matured in the fourth quarter of
the 2024 Notes were used to refinance certain
2014. Interest is payable semi-annually in arrears on
indebtedness which matured in the fourth quarter of
March 18 and September 18 of each year, or
2014. Interest is payable semi-annually in arrears on
approximately $35 million per year. The 2024 Notes may
March 18 and September 18 of each year, or
be redeemed prior to maturity at any time in whole or in
approximately $35 million per year. The 2024 Notes may
part at the option of the Company at a “make-whole”
be redeemed prior to maturity at any time in whole or in
redemption price.
part at the option of the Company at a “make-whole”
redemption price.
15. Commitments and Contingencies
15. Commitments and Contingencies
Investment Commitments. At December 31, 2023, the
Company had $738 million of various capital
Investment Commitments. At December 31, 2023, the
commitments to fund sponsored investment products,
Company had $738 million of various capital
including CIPs. These products include private equity
commitments to fund sponsored investment products,
funds, real assets funds and opportunistic funds. This
including CIPs. These products include private equity
amount excludes additional commitments made by
funds, real assets funds and opportunistic funds. This
consolidated funds of funds to underlying third-party
amount excludes additional commitments made by
funds as third-party noncontrolling interest holders have
consolidated funds of funds to underlying third-party
the legal obligation to fund the respective commitments of
funds as third-party noncontrolling interest holders have
such funds of funds. Generally, the timing of the funding
the legal obligation to fund the respective commitments of
of these commitments is unknown and the commitments
such funds of funds. Generally, the timing of the funding
are callable on demand at any time prior to the expiration
of these commitments is unknown and the commitments
of the commitment. These unfunded commitments are not
are callable on demand at any time prior to the expiration
recorded on the consolidated statements of financial
of the commitment. These unfunded commitments are not
condition. These commitments do not include potential
recorded on the consolidated statements of financial
future commitments approved by the Company that are
condition. These commitments do not include potential
not yet legally binding. The Company intends to make
future commitments approved by the Company that are
additional capital commitments from time to time to fund
not yet legally binding. The Company intends to make
additional investment products for, and with, its clients.
additional capital commitments from time to time to fund
additional investment products for, and with, its clients.
Contingencies
Contingencies
Legal Proceedings. From time to time, BlackRock receives
subpoenas or other requests for information from various
Legal Proceedings. From time to time, BlackRock receives
subpoenas or other requests for information from various
F-27
BlackRock | 2023 Form 10-K
US federal and state governmental and regulatory
authorities and international governmental and regulatory
US federal and state governmental and regulatory
authorities in connection with industry-wide or other
authorities and international governmental and regulatory
investigations or proceedings. It is BlackRock’s policy to
authorities in connection with industry-wide or other
cooperate fully with such matters. BlackRock has been
investigations or proceedings. It is BlackRock’s policy to
responding to requests from the SEC in connection with a
cooperate fully with such matters. BlackRock has been
publicly reported, industry-wide investigation of
responding to requests from the SEC in connection with a
investment advisers’ compliance with record retention
publicly reported, industry-wide investigation of
requirements relating to certain types of electronic
investment advisers’ compliance with record retention
communications. BlackRock is cooperating with the SEC’s
requirements relating to certain types of electronic
investigation.
communications. BlackRock is cooperating with the SEC’s
investigation.
The Company, certain of its subsidiaries and employees
have been named as defendants in various legal actions,
The Company, certain of its subsidiaries and employees
including arbitrations and other litigation arising in
have been named as defendants in various legal actions,
connection with BlackRock’s activities. Additionally,
including arbitrations and other litigation arising in
BlackRock-advised investment portfolios may be subject
connection with BlackRock’s activities. Additionally,
to lawsuits, any of which potentially could harm the
BlackRock-advised investment portfolios may be subject
investment returns of the applicable portfolio or result in
to lawsuits, any of which potentially could harm the
the Company being liable to the portfolios for any
investment returns of the applicable portfolio or result in
resulting damages.
the Company being liable to the portfolios for any
resulting damages.
Management, after consultation with legal counsel,
currently does not anticipate that the aggregate liability
Management, after consultation with legal counsel,
arising out of regulatory matters or lawsuits will have a
currently does not anticipate that the aggregate liability
material effect on BlackRock’s results of operations,
arising out of regulatory matters or lawsuits will have a
financial position, or cash flows. However, there is no
material effect on BlackRock’s results of operations,
assurance as to whether any such pending or threatened
financial position, or cash flows. However, there is no
matters will have a material effect on BlackRock’s results
assurance as to whether any such pending or threatened
of operations, financial position or cash flows in any future
matters will have a material effect on BlackRock’s results
reporting period. Due to uncertainties surrounding the
of operations, financial position or cash flows in any future
outcome of these matters, management cannot
reporting period. Due to uncertainties surrounding the
reasonably estimate the possible loss or range of loss that
outcome of these matters, management cannot
may arise from these matters.
reasonably estimate the possible loss or range of loss that
may arise from these matters.
Indemnifications. In the ordinary course of business or in
connection with certain acquisition agreements,
Indemnifications. In the ordinary course of business or in
BlackRock enters into contracts pursuant to which it may
connection with certain acquisition agreements,
agree to indemnify third parties in certain circumstances.
BlackRock enters into contracts pursuant to which it may
The terms of these indemnities vary from contract to
agree to indemnify third parties in certain circumstances.
contract and the amount of indemnification liability, if any,
The terms of these indemnities vary from contract to
cannot be determined or the likelihood of any liability is
contract and the amount of indemnification liability, if any,
considered remote. Consequently, no liability has been
cannot be determined or the likelihood of any liability is
recorded on the consolidated statements of financial
considered remote. Consequently, no liability has been
condition.
recorded on the consolidated statements of financial
condition.
In connection with securities lending transactions,
BlackRock has agreed to indemnify certain securities
In connection with securities lending transactions,
lending clients against potential loss resulting from a
BlackRock has agreed to indemnify certain securities
borrower’s failure to fulfill its obligations under the
lending clients against potential loss resulting from a
securities lending agreement should the value of the
borrower’s failure to fulfill its obligations under the
collateral pledged by the borrower at the time of default be
securities lending agreement should the value of the
insufficient to cover the borrower’s obligation under the
collateral pledged by the borrower at the time of default be
securities lending agreement. The amount of securities on
insufficient to cover the borrower’s obligation under the
loan as of December 31, 2023 and subject to this type of
securities lending agreement. The amount of securities on
indemnification was approximately $259 billion. In the
loan as of December 31, 2023 and subject to this type of
Company’s capacity as lending agent, cash and securities
indemnification was approximately $259 billion. In the
totaling approximately $276 billion were held as collateral
Company’s capacity as lending agent, cash and securities
for indemnified securities on loan at December 31, 2023.
totaling approximately $276 billion were held as collateral
The fair value of these indemnifications was not material
for indemnified securities on loan at December 31, 2023.
at December 31, 2023.
The fair value of these indemnifications was not material
at December 31, 2023.
F-28 BlackRock | 2023 Form 10-K
16. Revenue
16. Revenue
The table below presents detail of revenue for 2023, 2022 and 2021 and includes the product mix of investment advisory,
administration fees and securities lending revenue and performance fees.
The table below presents detail of revenue for 2023, 2022 and 2021 and includes the product mix of investment advisory,
administration fees and securities lending revenue and performance fees.
BlackRock | 2023 Form 10-K
F-28
(in millions)
(in millions)
Revenue:
Revenue:
Investment advisory, administration fees and securities lending revenue:
Investment advisory, administration fees and securities lending revenue:
Long-term
Long-term
Cash management
Cash management
Total investment advisory, administration fees and securities lending revenue
Total investment advisory, administration fees and securities lending revenue
Investment advisory performance fees:
Investment advisory performance fees:
Equity:
Equity:
Active
Active
ETFs
ETFs
Non-ETF Index
Non-ETF Index
Equity subtotal
Equity subtotal
Fixed income:
Fixed income:
Active
Active
ETFs
ETFs
Non-ETF Index
Non-ETF Index
Fixed income subtotal
Fixed income subtotal
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Currency and commodities(1)
Currency and commodities(1)
Alternatives subtotal
Alternatives subtotal
Equity
Equity
Fixed income
Fixed income
Multi-asset
Multi-asset
Alternatives:
Alternatives:
Illiquid alternatives
Illiquid alternatives
Liquid alternatives
Liquid alternatives
Alternatives subtotal
Alternatives subtotal
Total investment advisory performance fees
Total investment advisory performance fees
Technology services revenue
Technology services revenue
Distribution fees
Distribution fees
Advisory and other revenue:
Advisory and other revenue:
Advisory
Advisory
Other
Other
Total advisory and other revenue
Total advisory and other revenue
Total revenue
Total revenue
(1)
Amounts include commodity ETFs.
(1)
Amounts include commodity ETFs.
2023
2023
2022
2022
2021
2021
$ 2,000
$ 2,000
4,418
4,418
743
743
7,161
7,161
$ 2,147
$ 2,147
4,345
4,345
711
711
7,203
7,203
$ 2,571
$ 2,571
4,658
4,658
771
771
8,000
8,000
1,897
1,897
1,230
1,230
353
353
3,480
3,480
1,203
1,203
889
889
572
572
185
185
1,646
1,646
13,490
13,490
909
909
14,399
14,399
99
99
4
4
28
28
273
273
150
150
423
423
554
554
1,485
1,485
1,262
1,262
1,977
1,977
1,122
1,122
396
396
3,495
3,495
1,299
1,299
741
741
633
633
216
216
1,590
1,590
13,587
13,587
864
864
14,451
14,451
49
49
25
25
25
25
296
296
119
119
415
415
514
514
1,364
1,364
1,381
1,381
2,191
2,191
1,201
1,201
471
471
3,863
3,863
1,414
1,414
668
668
629
629
216
216
1,513
1,513
14,790
14,790
470
470
15,260
15,260
153
153
48
48
32
32
208
208
702
702
910
910
1,143
1,143
1,281
1,281
1,521
1,521
81
81
78
78
159
159
$ 17,859
$ 17,859
56
56
107
107
163
163
$ 17,873
$ 17,873
68
68
101
101
169
169
$ 19,374
$ 19,374
2023
2023
2022
2022
2021
2021
$ 4,115
$ 4,115
5,834
5,834
$ 4,442
$ 4,442
5,671
5,671
$ 4,957
$ 4,957
6,074
6,074
2,623
2,623
918
918
3,541
3,541
13,490
13,490
909
909
$ 14,399
$ 14,399
2,535
2,535
939
939
3,474
3,474
13,587
13,587
864
864
$ 14,451
$ 14,451
2,675
2,675
1,084
1,084
3,759
3,759
14,790
14,790
470
470
$ 15,260
$ 15,260
(in millions)
Technology services revenue(1)(2)
Technology services revenue(1)(2)
December 31, 2022
December 31, 2022
(in millions)
(in millions)
Technology services revenue(1)(2)
Technology services revenue(1)(2)
(1)
F-29 BlackRock | 2023 Form 10-K
F-29
The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment
style:
The tables below present the investment advisory, administration fees and securities lending revenue by client type and investment
style:
BlackRock | 2023 Form 10-K
(in millions)
(in millions)
By client type:
By client type:
Retail
Retail
ETFs
ETFs
Institutional:
Institutional:
Active
Active
Index
Index
Total institutional
Total institutional
Long-term
Long-term
Cash management
Cash management
Total
Total
By investment style:
By investment style:
Active
Active
Index and ETFs
Index and ETFs
Long-term
Long-term
Cash management
Cash management
Total
Total
Investment Advisory and Administration Fees – Remaining Performance Obligation
Investment Advisory and Administration Fees – Remaining Performance Obligation
The tables below present estimated investment advisory and administration fees expected to be recognized in the future
related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:
The tables below present estimated investment advisory and administration fees expected to be recognized in the future
related to the unsatisfied portion of the performance obligations at December 31, 2023 and 2022:
December 31, 2023
December 31, 2023
$ 6,534
$ 6,534
6,956
6,956
13,490
13,490
909
909
$ 14,399
$ 14,399
$ 6,789
$ 6,789
6,798
6,798
13,587
13,587
864
864
$ 14,451
$ 14,451
$ 7,455
$ 7,455
7,335
7,335
14,790
14,790
470
470
$ 15,260
$ 15,260
(in millions)
(in millions)
Investment advisory and administration fees:
Investment advisory and administration fees:
Alternatives(1)(2)
Alternatives(1)(2)
December 31, 2022
December 31, 2022
(in millions)
(in millions)
Investment advisory and administration fees:
Investment advisory and administration fees:
2024
2024
$ 204
$ 204
2025
2025
$ 174
$ 174
2026
2026
$ 152
$ 152
Thereafter
Thereafter
$ 164
$ 164
Total
Total
$ 694
$ 694
2023
2023
2024
2024
2025
2025
Thereafter
Thereafter
Total
Total
Alternatives(1)(2)
$ 448
Alternatives(1)(2)
$ 448
Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at December 31,
2023 and 2022. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.
Investment advisory and administration fees include management fees related to certain alternative products, which are based on contractual committed capital outstanding at December 31,
2023 and 2022. Actual management fees could be higher to the extent additional committed capital is raised. These fees are generally billed on a quarterly basis in arrears.
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and
(b) variable consideration related to future service periods.
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and
(b) variable consideration related to future service periods.
$ 102
$ 102
$ 157
$ 157
$ 111
$ 111
$ 78
$ 78
(1)
(1)
(2)
(2)
Change in Deferred Carried Interest Liability
Change in Deferred Carried Interest Liability
The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the
consolidated statements of financial condition, for the year ended December 31, 2023 and 2022:
The table below presents changes in the deferred carried interest liability, which is included in other liabilities on the
consolidated statements of financial condition, for the year ended December 31, 2023 and 2022:
(in millions)
(in millions)
Beginning balance
Beginning balance
Ending balance
Ending balance
Net increase (decrease) in unrealized allocations
Net increase (decrease) in unrealized allocations
Performance fee revenue recognized
Performance fee revenue recognized
2023
2023
$ 1,420
$ 1,420
577
577
(214)
(214)
$ 1,783
$ 1,783
2022
2022
$ 1,508
$ 1,508
175
175
(263)
(263)
$ 1,420
$ 1,420
F-30 BlackRock | 2023 Form 10-K
Technology Services Revenue – Remaining Performance Obligation
Technology Services Revenue – Remaining Performance Obligation
The tables below present estimated technology services revenue expected to be recognized in the future related to the
unsatisfied portion of the performance obligations at December 31, 2023 and 2022:
The tables below present estimated technology services revenue expected to be recognized in the future related to the
unsatisfied portion of the performance obligations at December 31, 2023 and 2022:
December 31, 2023
December 31, 2023
(in millions)
BlackRock | 2023 Form 10-K
F-30
2024
2024
$ 131
$ 131
2023
2023
$ 112
$ 112
2025
2025
$ 73
$ 73
2024
2024
$ 51
$ 51
2026
2026
$ 56
$ 56
Thereafter
Thereafter
$ 59
$ 59
Total
Total
$ 319
$ 319
2025
2025
$ 35
$ 35
Thereafter
Thereafter
$ 40
$ 40
Total
Total
$ 238
$ 238
Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.
(1)
(2)
(2)
Technology services revenue primarily includes upfront payments from customers, which the Company generally recognizes as services are performed.
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and
(b) variable consideration related to future service periods.
The Company elected the following practical expedients and therefore does not include amounts related to (a) performance obligations with an original duration of one year or less, and
(b) variable consideration related to future service periods.
In addition to amounts disclosed in the tables above,
certain technology services contracts require fixed
In addition to amounts disclosed in the tables above,
minimum fees, which are billed on a monthly or quarterly
certain technology services contracts require fixed
basis in arrears. The Company recognizes such revenue as
minimum fees, which are billed on a monthly or quarterly
services are performed. As of December 31, 2023, the
basis in arrears. The Company recognizes such revenue as
estimated annual fixed minimum fees for 2024 for
services are performed. As of December 31, 2023, the
outstanding contracts approximated $1.1 billion. The term
estimated annual fixed minimum fees for 2024 for
for these contracts, which are either in their initial or
outstanding contracts approximated $1.1 billion. The term
renewal period, ranges from one to five years.
for these contracts, which are either in their initial or
renewal period, ranges from one to five years.
The table below presents changes in the technology
services deferred revenue liability for the year ended
The table below presents changes in the technology
December 31, 2023 and 2022, which is included in other
services deferred revenue liability for the year ended
liabilities on the consolidated statements of financial
December 31, 2023 and 2022, which is included in other
condition:
liabilities on the consolidated statements of financial
condition:
(in millions)
(in millions)
Beginning balance
Beginning balance
Additions(1)
Additions(1)
Revenue recognized that was included in
Revenue recognized that was included in
the beginning balance
the beginning balance
Ending balance
Ending balance
(1)
Amounts are net of revenue recognized.
2023
2023
$ 125
$ 125
92
92
(84)
(84)
$ 133
$ 133
2022
2022
$ 122
$ 122
99
99
(96)
(96)
$ 125
$ 125
(1)
Amounts are net of revenue recognized.
17. Stock-Based Compensation
17. Stock-Based Compensation
The components of stock-based compensation expense
are as follows:
The components of stock-based compensation expense
are as follows:
(in millions)
(in millions)
Stock-based compensation:
Stock-based compensation:
RSUs
RSUs
Stock options
Stock options
Total stock-based compensation(1)
Total stock-based compensation(1)
(1)
2023
2023
2022
2022
2021
2021
$ 596
$ 596
34
34
$ 630
$ 630
$ 686
$ 686
22
22
$ 708
$ 708
$ 709
$ 709
25
25
$ 734
$ 734
(1)
Amount for 2023 and 2022 includes $14 million and $33 million of compensation
expense for accelerated vesting of previously granted stock-based compensation awards,
Amount for 2023 and 2022 includes $14 million and $33 million of compensation
respectively, recognized as part of the restructuring charge disclosed in Note 23,
expense for accelerated vesting of previously granted stock-based compensation awards,
Restructuring Charge.
respectively, recognized as part of the restructuring charge disclosed in Note 23,
Restructuring Charge.
Stock Award and Incentive Plan. Pursuant to the
BlackRock, Inc. Second Amended and Restated 1999
Stock Award and Incentive Plan. Pursuant to the
Stock Award and Incentive Plan (the “Award Plan”), options
BlackRock, Inc. Second Amended and Restated 1999
Stock Award and Incentive Plan (the “Award Plan”), options
to purchase shares of the Company’s common stock at an
exercise price not less than the market value of
to purchase shares of the Company’s common stock at an
BlackRock’s common stock on the date of grant in the
exercise price not less than the market value of
form of stock options, restricted stock or RSUs may be
BlackRock’s common stock on the date of grant in the
granted to employees and nonemployee directors. A
form of stock options, restricted stock or RSUs may be
maximum of 41,500,000 shares of common stock were
granted to employees and nonemployee directors. A
authorized for issuance under the Award Plan. Of this
maximum of 41,500,000 shares of common stock were
amount, 2,248,287 shares remain available for future
authorized for issuance under the Award Plan. Of this
awards at December 31, 2023. Upon exercise of employee
amount, 2,248,287 shares remain available for future
stock options, the issuance of restricted stock or the
awards at December 31, 2023. Upon exercise of employee
vesting of RSUs, the Company issues shares out of
stock options, the issuance of restricted stock or the
treasury to the extent available.
vesting of RSUs, the Company issues shares out of
treasury to the extent available.
RSUs. Pursuant to the Award Plan, RSUs may be granted
to certain employees. Substantially all RSUs vest over
RSUs. Pursuant to the Award Plan, RSUs may be granted
periods ranging from one to three years and are expensed
to certain employees. Substantially all RSUs vest over
using the straight-line method over the requisite service
periods ranging from one to three years and are expensed
period for each separately vesting portion of the award as
using the straight-line method over the requisite service
if the award was, in-substance, multiple awards. RSUs are
period for each separately vesting portion of the award as
not considered participating securities for purposes of
if the award was, in-substance, multiple awards. RSUs are
calculating EPS as the dividend equivalents are subject to
not considered participating securities for purposes of
forfeiture prior to vesting of the award.
calculating EPS as the dividend equivalents are subject to
forfeiture prior to vesting of the award.
RSU activity for 2023 is summarized below.
RSU activity for 2023 is summarized below.
Weighted-
Average
Weighted-
Grant Date
Average
Fair Value
Grant Date
Fair Value
$ 710.67
$ 710.67
$ 731.40
$ 731.40
$ 634.10
$ 634.10
$ 771.59
$ 771.59
$ 757.49
$ 757.49
RSUs
RSUs
2,009,207
2,009,207
771,935
771,935
(934,099)
(934,099)
(74,404)
(74,404)
1,772,639
1,772,639
Outstanding at
Outstanding at
December 31, 2022
December 31, 2022
Granted
Granted
Converted
Converted
Forfeited
Forfeited
December 31, 2023
December 31, 2023
The Company values RSUs at their grant-date fair value as
measured by BlackRock’s common stock price. The total
The Company values RSUs at their grant-date fair value as
fair market value of RSUs granted to employees during
measured by BlackRock’s common stock price. The total
2023, 2022 and 2021 was $565 million, $662 million and
fair market value of RSUs granted to employees during
$664 million, respectively. The total grant-date fair market
2023, 2022 and 2021 was $565 million, $662 million and
value of RSUs converted to common stock during 2023,
$664 million, respectively. The total grant-date fair market
2022 and 2021 was $592 million, $461 million and
value of RSUs converted to common stock during 2023,
$391 million, respectively.
2022 and 2021 was $592 million, $461 million and
$391 million, respectively.
F-31 BlackRock | 2023 Form 10-K
RSUs granted in connection with annual incentive
compensation under the Award Plan primarily related to
RSUs granted in connection with annual incentive
the following:
compensation under the Award Plan primarily related to
the following:
2023
2023
2022
2022
2021
2021
342,706
342,706
498,633
498,633
470,253
470,253
169,764
169,764
117,169
117,169
168,504
168,504
Awards granted that vest
ratably over three years
Awards granted that vest
from the date of grant
ratably over three years
from the date of grant
Awards granted that vest
with varying vesting
Awards granted that vest
periods
with varying vesting
periods
Awards granted that cliff
vest 100% on:
Awards granted that cliff
vest 100% on:
January 31, 2024
January 31, 2024
January 31, 2025
January 31, 2025
January 31, 2026
January 31, 2026
—
—
197,817
197,817
—
—
813,619
813,619
—
—
—
—
259,465
259,465
771,935
771,935
247,621
247,621
—
—
—
—
886,378
886,378
At December 31, 2023, the intrinsic value of outstanding
RSUs was $1.4 billion, reflecting a closing stock price of
At December 31, 2023, the intrinsic value of outstanding
$811.80.
RSUs was $1.4 billion, reflecting a closing stock price of
$811.80.
At December 31, 2023, total unrecognized stock-based
compensation expense related to unvested RSUs was
At December 31, 2023, total unrecognized stock-based
$421 million. The unrecognized compensation cost is
compensation expense related to unvested RSUs was
expected to be recognized over the remaining weighted-
$421 million. The unrecognized compensation cost is
average period of 1.1 years.
expected to be recognized over the remaining weighted-
average period of 1.1 years.
In January 2024, pursuant to the Award Plan, the
Company granted approximately:
In January 2024, pursuant to the Award Plan, the
Company granted approximately:
• 347,000 RSUs to employees as part of annual
• 347,000 RSUs to employees as part of annual
incentive compensation that vest ratably over three
years from the date of grant;
incentive compensation that vest ratably over three
years from the date of grant;
• 344,000 RSUs to employees that cliff vest 100% on
• 344,000 RSUs to employees that cliff vest 100% on
January 31, 2027; and
January 31, 2027; and
• 6,000 RSUs to employees with various vesting
• 6,000 RSUs to employees with various vesting
schedules.
schedules.
Performance-Based RSUs. Pursuant to the Award Plan,
performance-based RSUs may be granted to certain
Performance-Based RSUs. Pursuant to the Award Plan,
employees. Each performance-based award consists of a
performance-based RSUs may be granted to certain
“base” number of RSUs granted to the employee. The number
employees. Each performance-based award consists of a
of shares that an employee ultimately receives at vesting will
“base” number of RSUs granted to the employee. The number
be equal to the base number of performance-based RSUs
of shares that an employee ultimately receives at vesting will
granted, multiplied by a predetermined percentage
be equal to the base number of performance-based RSUs
determined in accordance with the level of attainment of
granted, multiplied by a predetermined percentage
Company performance measures during the performance
determined in accordance with the level of attainment of
period and could be higher or lower than the original RSU
Company performance measures during the performance
grant. Performance-based RSUs are not considered
period and could be higher or lower than the original RSU
participating securities as the dividend equivalents are
grant. Performance-based RSUs are not considered
subject to forfeiture prior to vesting of the award.
participating securities as the dividend equivalents are
subject to forfeiture prior to vesting of the award.
In the first quarter of 2023, 2022 and 2021, the Company
granted 169,938, 143,846 and 162,029, respectively,
In the first quarter of 2023, 2022 and 2021, the Company
performance-based RSUs to certain employees that cliff
granted 169,938, 143,846 and 162,029, respectively,
vest 100% on January 31, 2026, 2025 and 2024,
performance-based RSUs to certain employees that cliff
respectively. These awards are amortized over a service
vest 100% on January 31, 2026, 2025 and 2024,
period of three years. In January 2023, the Company
respectively. These awards are amortized over a service
distributed 29,194 additional RSUs based on the
period of three years. In January 2023, the Company
attainment of Company performance measures during the
distributed 29,194 additional RSUs based on the
performance period.
attainment of Company performance measures during the
performance period.
Performance-based RSU activity for 2023 is summarized
below.
Performance-based RSU activity for 2023 is summarized
below.
Outstanding at
Outstanding at
December 31, 2022
December 31, 2022
Granted
Granted
Additional shares due to
Additional shares due to
attainment of performance
measures
attainment of performance
measures
Converted
Converted
Forfeited
Forfeited
Performance-
Based RSUs
Performance-
Based RSUs
531,054
531,054
169,938
169,938
Weighted-
Average
Weighted-
Grant Date
Average
Fair Value
Grant Date
Fair Value
$ 672.47
$ 672.47
$ 743.60
$ 743.60
29,194
29,194
(262,797)
(262,797)
(11,005)
(11,005)
456,384
456,384
$ 532.15
$ 532.15
$ 534.00
$ 534.00
$ 756.51
$ 756.51
$ 767.69
$ 767.69
December 31, 2023
December 31, 2023
The Company values performance-based RSUs at their
grant-date fair value as measured by BlackRock’s
The Company values performance-based RSUs at their
common stock price. The total grant-date fair market value
grant-date fair value as measured by BlackRock’s
of performance-based RSUs granted to employees during
common stock price. The total grant-date fair market value
2023, 2022 and 2021 was $142 million, $164 million and
of performance-based RSUs granted to employees during
$122 million, respectively.
2023, 2022 and 2021 was $142 million, $164 million and
$122 million, respectively.
At December 31, 2023, the intrinsic value of outstanding
performance-based RSUs was $370 million reflecting a
At December 31, 2023, the intrinsic value of outstanding
closing stock price of $811.80.
performance-based RSUs was $370 million reflecting a
closing stock price of $811.80.
At December 31, 2023, total unrecognized stock-based
compensation expense related to unvested performance-
At December 31, 2023, total unrecognized stock-based
based awards was $82 million. The unrecognized
compensation expense related to unvested performance-
compensation cost is expected to be recognized over the
based awards was $82 million. The unrecognized
remaining weighted-average period of 1.1 years.
compensation cost is expected to be recognized over the
remaining weighted-average period of 1.1 years.
In January 2024, the Company granted approximately
166,000 performance-based RSUs to certain employees
In January 2024, the Company granted approximately
that cliff vest 100% on January 31, 2027. These awards are
166,000 performance-based RSUs to certain employees
amortized over a service period of three years. The number
that cliff vest 100% on January 31, 2027. These awards are
of shares distributed at vesting could be higher or lower
amortized over a service period of three years. The number
than the original grant based on the level of attainment of
of shares distributed at vesting could be higher or lower
predetermined Company performance measures.
than the original grant based on the level of attainment of
predetermined Company performance measures.
Stock Options
Stock Options
Stock option activity and ending balance for year-end December 31, 2023 is summarized below.
Stock option activity and ending balance for year-end December 31, 2023 is summarized below.
2017 Performance-based
Options
2017 Performance-based
Options
2023 Performance-based
Options
2023 Performance-based
Options
2023 Time-based
Options
2023 Time-based
Options
Outstanding at
Outstanding at
December 31, 2022
December 31, 2022
Granted
Exercised
Granted
Forfeited
Exercised
Forfeited
December 31, 2023
December 31, 2023
Shares
Under
Shares
Option
Under
Option
1,735,898
—
1,735,898
(183,704)
—
(3,114)
(183,704)
(3,114)
1,549,080
1,549,080
Weighted
Average
Weighted
Exercise
Average
Price
Exercise
Price
$ 513.50
—
$
$ 513.50
$ 513.50
$
—
$ 513.50
$ 513.50
$ 513.50
$ 513.50
$ 513.50
Shares
Under
Shares
Option
Under
Option
—
814,482
—
—
814,482
(6,787)
—
(6,787)
807,695
807,695
Weighted
Average
Weighted
Exercise
Average
Price
Exercise
Price
—
$
$ 673.58
—
$
—
$
$ 673.58
$ 673.58
$
—
$ 673.58
$ 673.58
$ 673.58
Shares
Under
Shares
Option
Under
Option
—
326,391
—
—
326,391
—
—
—
326,391
326,391
Weighted
Average
Weighted
Exercise
Average
Price
Exercise
Price
—
$
$ 673.58
—
$
—
$
$ 673.58
—
$
—
$
$
—
$ 673.58
$ 673.58
BlackRock | 2023 Form 10-K
F-31
F-32 BlackRock | 2023 Form 10-K
BlackRock | 2023 Form 10-K
F-32
Options Outstanding
Options Outstanding
Options Exercisable
Options Exercisable
Weighted
Average
Weighted
Remaining
Average
Life (years)
Remaining
Life (years)
2.9
2.9
8.4
8.4
8.4
8.4
5.2
5.2
Aggregate
Intrinsic
Aggregate
Value
Intrinsic
(in millions)
Value
(in millions)
$ 462
$ 462
112
112
45
45
$ 619
$ 619
Exercise
Prices
Exercise
Prices
$ 513.50
$ 513.50
$ 673.58
$ 673.58
$ 673.58
$ 673.58
Options
Exercisable
Options
Exercisable
991,156
991,156
—
—
—
—
991,156
991,156
Weighted
Average
Weighted
Remaining
Average
Life (years)
Remaining
Life (years)
2.9
2.9
—
—
—
—
2.9
2.9
Aggregate
Intrinsic
Aggregate
Value
Intrinsic
(in millions)
Value
(in millions)
$ 296
$ 296
—
—
—
—
$ 296
$ 296
At December 31, 2023, 0.6 million 2017 performance-based options, 0.8 million 2023 performance-based options and 0.3 million 2023 time-based options were expected to vest.
At December 31, 2023, 0.6 million 2017 performance-based options, 0.8 million 2023 performance-based options and 0.3 million 2023 time-based options were expected to vest.
Option Type
Option Type
2017 Performance-based
2017 Performance-based
2023 Performance-based
2023 Performance-based
2023 Time-based
2023 Time-based
Total
Total
(1)
Exercise
Prices
Exercise
Prices
$ 513.50
$ 513.50
$ 673.58
$ 673.58
$ 673.58
$ 673.58
Options
Outstanding(1)
Options
Outstanding(1)
1,549,080
1,549,080
807,695
807,695
326,391
326,391
2,683,166
2,683,166
(1)
At December 31, 2023, total unrecognized stock-based
compensation expense related to unvested performance-
At December 31, 2023, total unrecognized stock-based
based stock options was $160 million. The unrecognized
compensation expense related to unvested performance-
compensation cost is expected to be recognized over the
based stock options was $160 million. The unrecognized
remaining weighted-average period of 3.4 years.
compensation cost is expected to be recognized over the
remaining weighted-average period of 3.4 years.
Performance-Based Stock Options
Performance-Based Stock Options
In 2017, pursuant to the Award Plan, the Company
awarded performance-based stock option grants to
In 2017, pursuant to the Award Plan, the Company
certain employees (“2017 Performance-based Options”).
awarded performance-based stock option grants to
Vesting of 2017 Performance-based Options was
certain employees (“2017 Performance-based Options”).
contingent upon the achievement of obtaining 125% of
Vesting of 2017 Performance-based Options was
BlackRock’s grant-date stock price within five years from
contingent upon the achievement of obtaining 125% of
the grant date and the attainment of Company
BlackRock’s grant-date stock price within five years from
performance measures during the four-year performance
the grant date and the attainment of Company
period. Both hurdles have been achieved, and the first two
performance measures during the four-year performance
tranches of the awards vested at the end of 2022 and
period. Both hurdles have been achieved, and the first two
2023, respectively, with the final equal installment vesting
tranches of the awards vested at the end of 2022 and
at the end of 2024. Vested options are exercisable for up
2023, respectively, with the final equal installment vesting
to nine years following the grant date. The awards are
at the end of 2024. Vested options are exercisable for up
generally forfeited if the employee leaves the Company
to nine years following the grant date. The awards are
before the respective vesting date. The expense for each
generally forfeited if the employee leaves the Company
tranche is amortized over the respective requisite service
before the respective vesting date. The expense for each
period. The total fair value of options vested during 2023
tranche is amortized over the respective requisite service
was $56 million. The aggregate intrinsic value of options
period. The total fair value of options vested during 2023
exercised during 2023 was $44 million.
was $56 million. The aggregate intrinsic value of options
exercised during 2023 was $44 million.
The options have a strike price of $513.50, which was the
closing price of the shares on the grant date. The grant-
The options have a strike price of $513.50, which was the
date fair value of the awards issued in 2017 was
closing price of the shares on the grant date. The grant-
$208 million and was estimated using a Monte Carlo
date fair value of the awards issued in 2017 was
simulation with an embedded lattice model using the
$208 million and was estimated using a Monte Carlo
assumptions included in the following table:
simulation with an embedded lattice model using the
assumptions included in the following table:
Grant
Year
Grant
Year
2017
2017
(1)
Risk-Free
Interest Rate(4)
Risk-Free
Interest Rate(4)
2.33%
2.33%
The expected term was derived using a Monte Carlo simulation with the embedded lattice
model and represents the period of time that options granted are expected to be
The expected term was derived using a Monte Carlo simulation with the embedded lattice
outstanding.
model and represents the period of time that options granted are expected to be
The expected stock volatility was based upon an average of historical stock price
outstanding.
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
The expected stock volatility was based upon an average of historical stock price
The expected dividend yield was calculated as the most recent quarterly dividend divided
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
by the average three-month stock price as of the grant date.
The expected dividend yield was calculated as the most recent quarterly dividend divided
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
by the average three-month stock price as of the grant date.
grant date.
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
grant date.
Expected
Dividend Yield(3)
Expected
Dividend Yield(3)
2.16%
2.16%
Expected Stock
Volatility(2)
Expected Stock
Volatility(2)
22.23%
22.23%
Expected
Term (Years)(1)
Expected
Term (Years)(1)
6.56
6.56
(1)
(2)
(2)
(3)
(3)
(4)
(4)
On May 30, 2023, pursuant to the Award Plan, the
Company awarded performance-based options to
On May 30, 2023, pursuant to the Award Plan, the
purchase 814,482 shares of BlackRock common stock to
Company awarded performance-based options to
certain employees as long-term incentive compensation
purchase 814,482 shares of BlackRock common stock to
(“2023 Performance-based Options”). Vesting of 2023
certain employees as long-term incentive compensation
Performance-based Options is contingent upon the
(“2023 Performance-based Options”). Vesting of 2023
achievement of obtaining 130% of grant-date stock price
Performance-based Options is contingent upon the
over 60 calendar days within four years from the grant
achievement of obtaining 130% of grant-date stock price
date and attainment of Company performance measures
over 60 calendar days within four years from the grant
during the three-year performance period. If both hurdles
date and attainment of Company performance measures
are achieved, the award will vest in three tranches of 25%,
during the three-year performance period. If both hurdles
25% and 50% in May of 2027, 2028 and 2029,
are achieved, the award will vest in three tranches of 25%,
respectively. Vested options are exercisable for up to nine
25% and 50% in May of 2027, 2028 and 2029,
years following the grant date, and the awards are
respectively. Vested options are exercisable for up to nine
forfeited if the employee resigns before the respective
years following the grant date, and the awards are
vesting date. The expense for each tranche is amortized
forfeited if the employee resigns before the respective
over the respective requisite service period.
vesting date. The expense for each tranche is amortized
over the respective requisite service period.
The 2023 Performance-based Options have a strike price
of $673.58 which was the closing price of the shares on
The 2023 Performance-based Options have a strike price
the grant date. The grant-date fair value of the 2023
of $673.58 which was the closing price of the shares on
Performance-based Options was $120 million and was
the grant date. The grant-date fair value of the 2023
estimated using a Monte Carlo simulation with an
Performance-based Options was $120 million and was
embedded lattice model using the assumptions included
estimated using a Monte Carlo simulation with an
in the following table:
embedded lattice model using the assumptions included
in the following table:
Grant
Year
Grant
Year
2023
2023
(1)
Risk-Free
Interest Rate(4)
Risk-Free
Interest Rate(4)
3.61%
3.61%
The expected term was derived using a Monte Carlo simulation with the embedded lattice
model and represents the period of time that options granted are expected to be
The expected term was derived using a Monte Carlo simulation with the embedded lattice
outstanding.
model and represents the period of time that options granted are expected to be
The expected stock volatility was based upon an average of historical stock price
outstanding.
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
The expected stock volatility was based upon an average of historical stock price
The expected dividend yield was calculated as the most recent quarterly dividend divided
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
by the average three-month stock price as of the grant date.
The expected dividend yield was calculated as the most recent quarterly dividend divided
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
by the average three-month stock price as of the grant date.
grant date.
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
grant date.
Expected
Dividend Yield(3)
Expected
Dividend Yield(3)
3.02%
3.02%
Expected Stock
Volatility(2)
Expected Stock
Volatility(2)
27.73%
27.73%
Expected
Term (Years)(1)
Expected
Term (Years)(1)
6.02
6.02
(1)
(2)
(2)
(3)
(3)
(4)
(4)
Time-Based Stock Options
Time-Based Stock Options
On May 30, 2023, pursuant to the Award Plan, the
Company awarded time-based stock options to purchase
On May 30, 2023, pursuant to the Award Plan, the
326,391 shares of BlackRock common stock to certain
Company awarded time-based stock options to purchase
employees as long-term incentive compensation (“2023
326,391 shares of BlackRock common stock to certain
Time-based Options”). These awards will vest in three
employees as long-term incentive compensation (“2023
tranches of 25%, 25% and 50% in May 2027, 2028 and
Time-based Options”). These awards will vest in three
2029, respectively. Vested options can be exercised up to
tranches of 25%, 25% and 50% in May 2027, 2028 and
nine years following the grant date, and the awards are
2029, respectively. Vested options can be exercised up to
forfeited if the employee resigns before the respective
nine years following the grant date, and the awards are
vesting date.
forfeited if the employee resigns before the respective
vesting date.
F-33 BlackRock | 2023 Form 10-K
Expected
Term (Years)(1)
Expected
Term (Years)(1)
7.13
7.13
The 2023 Time-based Options have a strike price of
$673.58 which was the closing price of the shares on the
The 2023 Time-based Options have a strike price of
grant date. The grant-date fair value of the 2023 Time-
$673.58 which was the closing price of the shares on the
based Options was $55 million and was estimated using a
grant date. The grant-date fair value of the 2023 Time-
Black-Scholes-Merton model using the assumptions
based Options was $55 million and was estimated using a
included in the following table:
Black-Scholes-Merton model using the assumptions
included in the following table:
Grant
Year
Grant
Year
2023
2023
(1)
Risk-Free
Interest Rate(4)
Risk-Free
Interest Rate(4)
3.65%
3.65%
The expected term represents the period of time that options granted are expected to be
outstanding, and was calculated as the midpoint between the weighted average time to
The expected term represents the period of time that options granted are expected to be
vest and expiration.
outstanding, and was calculated as the midpoint between the weighted average time to
The expected stock volatility was based upon an average of historical stock price
vest and expiration.
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
The expected stock volatility was based upon an average of historical stock price
The expected dividend yield was calculated as the most recent quarterly dividend divided
fluctuations of BlackRock’s common stock and an implied volatility at the grant date.
by the average three-month stock price as of the grant date.
The expected dividend yield was calculated as the most recent quarterly dividend divided
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
by the average three-month stock price as of the grant date.
grant date.
The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at
grant date.
Expected
Stock Volatility(2)
Expected
Stock Volatility(2)
28.29%
28.29%
Expected
Dividend Yield(3)
Expected
Dividend Yield(3)
3.02%
3.02%
(1)
(2)
(2)
(3)
(3)
(4)
(4)
Employee Stock Purchase Plan (“ESPP”). The ESPP
allows eligible employees to purchase the Company’s
Employee Stock Purchase Plan (“ESPP”). The ESPP
common stock at 95% of the fair market value on the last
allows eligible employees to purchase the Company’s
day of each three-month offering period; therefore, the
common stock at 95% of the fair market value on the last
Company does not record compensation expense related
day of each three-month offering period; therefore, the
to employees purchasing shares under the ESPP.
Company does not record compensation expense related
to employees purchasing shares under the ESPP.
18. Deferred Cash Compensation and Employee Benefit
Plans
18. Deferred Cash Compensation and Employee Benefit
Plans
Deferred Cash Compensation Plans
Deferred Cash Compensation Plans
The components of deferred cash compensation expense
are as follows:
The components of deferred cash compensation expense
are as follows:
(in millions)
(in millions)
Deferred cash compensation
Deferred cash compensation
expense:
expense:
IPDCP
IPDCP
VDCP
VDCP
Other(1)
Other(1)
expense
expense
Total deferred cash compensation
Total deferred cash compensation
2023
2023
2022
2022
2021
2021
$ 195
$ 195
17
17
14
14
$ 226
$ 226
$ 228
$ 228
(18)
(18)
14
14
$ 224
$ 224
$ 304
$ 304
12
12
74
74
$ 390
$ 390
(1)
(1)
Amounts primarily relate to deferred cash compensation in connection with certain
acquisitions.
Amounts primarily relate to deferred cash compensation in connection with certain
acquisitions.
Investment Professional Deferred Compensation Program
(“IPDCP”). The Company adopted IPDCP for the purpose of
Investment Professional Deferred Compensation Program
providing deferred compensation and retention incentives
(“IPDCP”). The Company adopted IPDCP for the purpose of
to certain employees. For this plan, the final value of the
providing deferred compensation and retention incentives
deferred amount to be distributed in cash upon vesting is
to certain employees. For this plan, the final value of the
associated with investment returns of certain investment
deferred amount to be distributed in cash upon vesting is
funds. In January 2023, 2022 and 2021, the Company
associated with investment returns of certain investment
granted approximately $90 million, $257 million, and
funds. In January 2023, 2022 and 2021, the Company
$321 million of deferred compensation that will fluctuate
granted approximately $90 million, $257 million, and
with investment returns and will vest ratably over three
$321 million of deferred compensation that will fluctuate
years from the date of grant. The liabilities for this plan
with investment returns and will vest ratably over three
were $313 million and $358 million at December 31, 2023
years from the date of grant. The liabilities for this plan
and 2022, respectively, and are reflected in the
were $313 million and $358 million at December 31, 2023
consolidated statements of financial condition as accrued
and 2022, respectively, and are reflected in the
compensation and benefits. In January 2024, the
consolidated statements of financial condition as accrued
Company granted approximately $114 million of
compensation and benefits. In January 2024, the
additional deferred compensation that will fluctuate with
Company granted approximately $114 million of
investment returns and will vest ratably over three years
additional deferred compensation that will fluctuate with
from the date of grant.
investment returns and will vest ratably over three years
from the date of grant.
BlackRock | 2023 Form 10-K
F-33
Voluntary Deferred Compensation Plan. The Company
adopted a Voluntary Deferred Compensation Plan
Voluntary Deferred Compensation Plan. The Company
(“VDCP”) that allows eligible employees in the US to elect
adopted a Voluntary Deferred Compensation Plan
to defer between 1% and 100% of their annual cash
(“VDCP”) that allows eligible employees in the US to elect
incentive compensation. The participants must specify a
to defer between 1% and 100% of their annual cash
deferral period of up to 10 years from the year of deferral
incentive compensation. The participants must specify a
and additionally elect to receive distributions in the form
deferral period of up to 10 years from the year of deferral
of a lump sum or in up to 10 annual installments. VDCP
and additionally elect to receive distributions in the form
deferred cash compensation expense includes the
of a lump sum or in up to 10 annual installments. VDCP
mark-to-market impact of investment returns. The liability
deferred cash compensation expense includes the
balance of $144 million and $108 million at December 31,
mark-to-market impact of investment returns. The liability
2023 and 2022, respectively, is reflected on the
balance of $144 million and $108 million at December 31,
consolidated statements of financial condition as accrued
2023 and 2022, respectively, is reflected on the
compensation and benefits.
consolidated statements of financial condition as accrued
compensation and benefits.
Other Deferred Cash Plans. The liabilities related to other
deferred cash plans granted in connection with certain
Other Deferred Cash Plans. The liabilities related to other
acquisitions were approximately $82 million and
deferred cash plans granted in connection with certain
$71 million at December 31, 2023 and 2022, respectively.
acquisitions were approximately $82 million and
$71 million at December 31, 2023 and 2022, respectively.
In 2019, the Company adopted a carried interest retention
incentive program referred to as the BlackRock
In 2019, the Company adopted a carried interest retention
Leadership Retention Carry Plan, pursuant to which
incentive program referred to as the BlackRock
senior-level employees (but not including the Chief
Leadership Retention Carry Plan, pursuant to which
Executive Officer), as may be determined by the Company
senior-level employees (but not including the Chief
from time to time, will be eligible to receive a portion of the
Executive Officer), as may be determined by the Company
cash payments, based on their percentage points, in the
from time to time, will be eligible to receive a portion of the
total carried interest distributions paid to the Company
cash payments, based on their percentage points, in the
from participating carry funds. Cash payments, if any, with
total carried interest distributions paid to the Company
respect to these percentage points will be made over time
from participating carry funds. Cash payments, if any, with
following the recipient’s termination of employment due to
respect to these percentage points will be made over time
qualified retirement, death or disability, subject to his or
following the recipient’s termination of employment due to
her execution of a release of claims and continued
qualified retirement, death or disability, subject to his or
compliance with his or her restrictive covenant obligations
her execution of a release of claims and continued
following termination. There was no material impact to the
compliance with his or her restrictive covenant obligations
consolidated financial statements.
following termination. There was no material impact to the
consolidated financial statements.
Defined Contribution Plans
Defined Contribution Plans
The Company has several defined contribution plans
primarily in the US and UK.
The Company has several defined contribution plans
primarily in the US and UK.
Certain of the Company’s US employees participate in a
defined contribution plan. Employee contributions of up to
Certain of the Company’s US employees participate in a
8% of eligible compensation, as defined by the plan and
defined contribution plan. Employee contributions of up to
subject to Internal Revenue Code limitations, are matched
8% of eligible compensation, as defined by the plan and
by the Company at 50% up to a maximum of $5,000
subject to Internal Revenue Code limitations, are matched
annually. In addition, the Company makes an annual
by the Company at 50% up to a maximum of $5,000
retirement contribution to eligible participants equal to
annually. In addition, the Company makes an annual
3-5% of eligible compensation. The Company’s
retirement contribution to eligible participants equal to
contribution expense related to this plan was $86 million
3-5% of eligible compensation. The Company’s
in 2023, $83 million in 2022, and $101 million in 2021.
contribution expense related to this plan was $86 million
in 2023, $83 million in 2022, and $101 million in 2021.
Certain UK wholly owned subsidiaries of the Company
contribute to defined contribution plans for their
Certain UK wholly owned subsidiaries of the Company
employees. The contributions range between 6% and 15%
contribute to defined contribution plans for their
of each employee’s eligible compensation. The Company’s
employees. The contributions range between 6% and 15%
contribution expense related to these plans was
of each employee’s eligible compensation. The Company’s
$64 million in 2023, $60 million in 2022, and $57 million
contribution expense related to these plans was
in 2021.
$64 million in 2023, $60 million in 2022, and $57 million
in 2021.
In addition, the contribution expense related to defined
contribution plans in other regions was $42 million in
In addition, the contribution expense related to defined
2023, $41 million in 2022 and $36 million in 2021.
contribution plans in other regions was $42 million in
2023, $41 million in 2022 and $36 million in 2021.
F-34 BlackRock | 2023 Form 10-K
Defined Benefit Plans. The Company has several defined
benefit pension plans with plan assets of approximately
Defined Benefit Plans. The Company has several defined
$28 million and $29 million at December 31, 2023 and
benefit pension plans with plan assets of approximately
2022, respectively. The underfunded obligations at
$28 million and $29 million at December 31, 2023 and
December 31, 2023 and 2022 were not material. Benefit
2022, respectively. The underfunded obligations at
payments for the next five years and in aggregate for the
December 31, 2023 and 2022 were not material. Benefit
five years thereafter are not expected to be material.
payments for the next five years and in aggregate for the
five years thereafter are not expected to be material.
19. Related Party Transactions
19. Related Party Transactions
Determination of Related Parties
Determination of Related Parties
Registered Investment Companies and Equity Method
Investments. The Company considers the registered
Registered Investment Companies and Equity Method
investment companies that it manages, which include
Investments. The Company considers the registered
mutual funds and exchange-traded funds, to be related
investment companies that it manages, which include
parties as a result of the Company’s advisory relationship.
mutual funds and exchange-traded funds, to be related
In addition, equity method investments are considered
parties as a result of the Company’s advisory relationship.
related parties, due to the Company’s influence over the
In addition, equity method investments are considered
financial and operating policies of the investee.
related parties, due to the Company’s influence over the
financial and operating policies of the investee.
Revenue from Related Parties
Revenue from Related Parties
Revenue for services provided by the Company to these
and other related parties are as follows:
Revenue for services provided by the Company to these
and other related parties are as follows:
(in millions)
2023
2023
2022
2022
2021
2021
(in millions)
Investment advisory,
administration fees and
Investment advisory,
securities lending
administration fees and
revenue(1)
securities lending
revenue(1)
Investment advisory
performance fees(1)
Investment advisory
performance fees(1)
Advisory and other
revenue(2)
Advisory and other
revenue(2)
Total revenue from related
parties
Total revenue from related
parties
$ 10,848
$ 10,848
244
244
(31)
(31)
$ 11,061
$ 11,061
$ 10,757
$ 10,757
286
286
(31)
(31)
$ 11,012
$ 11,012
Amounts primarily include revenue from registered investment companies and equity
method investees.
Amounts primarily include revenue from registered investment companies and equity
method investees.
Amounts primarily include the Company’s share of the investee’s underlying net income or
(loss) from equity method investees.
Amounts primarily include the Company’s share of the investee’s underlying net income or
(loss) from equity method investees.
$ 11,474
$ 11,474
555
555
(16)
(16)
$ 12,013
$ 12,013
(1)
(2)
(2)
(1)
BlackRock | 2023 Form 10-K
F-34
Receivables and Payables with Related Parties. Due from
related parties, which is included within other assets on
Receivables and Payables with Related Parties. Due from
the consolidated statements of financial condition, was
related parties, which is included within other assets on
$203 million and $396 million at December 31, 2023 and
the consolidated statements of financial condition, was
2022, respectively, and primarily represented receivables
$203 million and $396 million at December 31, 2023 and
from certain investment products managed by BlackRock.
2022, respectively, and primarily represented receivables
Accounts receivable at December 31, 2023 and 2022
from certain investment products managed by BlackRock.
included $1.1 billion and $1.0 billion, respectively, related
Accounts receivable at December 31, 2023 and 2022
to receivables from BlackRock mutual funds and ETFs, for
included $1.1 billion and $1.0 billion, respectively, related
investment advisory and administration services.
to receivables from BlackRock mutual funds and ETFs, for
investment advisory and administration services.
Due to related parties, which is included within other
liabilities on the consolidated statements of financial
Due to related parties, which is included within other
condition, was $21 million and $15 million at
liabilities on the consolidated statements of financial
December 31, 2023 and 2022, respectively, and primarily
condition, was $21 million and $15 million at
represented payables to certain investment products
December 31, 2023 and 2022, respectively, and primarily
managed by BlackRock.
represented payables to certain investment products
managed by BlackRock.
20. Net Capital Requirements
20. Net Capital Requirements
The Company is required to maintain net capital in certain
regulated subsidiaries within a number of jurisdictions,
The Company is required to maintain net capital in certain
which is partially maintained by retaining cash and cash
regulated subsidiaries within a number of jurisdictions,
equivalent investments in those subsidiaries or
which is partially maintained by retaining cash and cash
jurisdictions. As a result, such subsidiaries of the
equivalent investments in those subsidiaries or
Company may be restricted in their ability to transfer cash
jurisdictions. As a result, such subsidiaries of the
between different jurisdictions and to their parents.
Company may be restricted in their ability to transfer cash
Additionally, transfers of cash between international
between different jurisdictions and to their parents.
jurisdictions may have adverse tax consequences that
Additionally, transfers of cash between international
could discourage such transfers.
jurisdictions may have adverse tax consequences that
could discourage such transfers.
Banking Regulatory Requirements. BlackRock
Institutional Trust Company, N.A. (“BTC”), a wholly owned
Banking Regulatory Requirements. BlackRock
subsidiary of the Company, is chartered as a national bank
Institutional Trust Company, N.A. (“BTC”), a wholly owned
whose powers are limited to trust and other fiduciary
subsidiary of the Company, is chartered as a national bank
activities and which is subject to regulatory capital
whose powers are limited to trust and other fiduciary
requirements administered by the US Office of the
activities and which is subject to regulatory capital
Comptroller of the Currency. Federal banking regulators
requirements administered by the US Office of the
would be required to take certain actions and permitted to
Comptroller of the Currency. Federal banking regulators
take other actions in the event of BTC’s failure to meet
would be required to take certain actions and permitted to
minimum capital requirements that, if undertaken, could
take other actions in the event of BTC’s failure to meet
have a direct material effect on the Company’s
minimum capital requirements that, if undertaken, could
consolidated financial statements.
have a direct material effect on the Company’s
consolidated financial statements.
The Company provides investment advisory and
administration services to its open- and closed-end funds
The Company provides investment advisory and
and other commingled or pooled funds and separate
administration services to its open- and closed-end funds
accounts in which related parties invest.
and other commingled or pooled funds and separate
accounts in which related parties invest.
Quantitative measures established by regulators to ensure capital adequacy require BTC to maintain a minimum
Common Equity Tier 1 capital and Tier 1 leverage ratio, as well as Tier 1 and total risk-based capital ratios. Based on BTC’s
Quantitative measures established by regulators to ensure capital adequacy require BTC to maintain a minimum
calculations as of December 31, 2023 and 2022, it exceeded the applicable capital adequacy requirements.
Common Equity Tier 1 capital and Tier 1 leverage ratio, as well as Tier 1 and total risk-based capital ratios. Based on BTC’s
calculations as of December 31, 2023 and 2022, it exceeded the applicable capital adequacy requirements.
(in millions)
(in millions)
December 31, 2023
December 31, 2023
Total capital (to risk weighted assets)
Total capital (to risk weighted assets)
Common Equity Tier 1 capital (to risk weighted assets)
Common Equity Tier 1 capital (to risk weighted assets)
Tier 1 capital (to risk weighted assets)
Tier 1 capital (to risk weighted assets)
Tier 1 capital (to average assets)
Tier 1 capital (to average assets)
December 31, 2022
December 31, 2022
Total capital (to risk weighted assets)
Total capital (to risk weighted assets)
Common Equity Tier 1 capital (to risk weighted assets)
Common Equity Tier 1 capital (to risk weighted assets)
Tier 1 capital (to risk weighted assets)
Tier 1 capital (to risk weighted assets)
Tier 1 capital (to average assets)
Tier 1 capital (to average assets)
Actual
Actual
Amount
Amount
Ratio
Ratio
$775
$775
$771
$771
$771
$771
$771
$771
$691
$691
$684
$684
$684
$684
$684
$684
145.8%
145.8%
145.1%
145.1%
145.1%
145.1%
65.9%
65.9%
126.1%
126.1%
124.8%
124.8%
124.8%
124.8%
62.8%
62.8%
For Capital
Adequacy
For Capital
Purposes
Adequacy
Purposes
To Be Well
Capitalized
To Be Well
Under Prompt
Capitalized
Corrective Action
Under Prompt
Provisions
Corrective Action
Provisions
Amount
Amount
Ratio
Ratio
Amount
Amount
Ratio
Ratio
$43
$43
$24
$24
$32
$32
$47
$47
$44
$44
$25
$25
$33
$33
$44
$44
8.0%
8.0%
4.5%
4.5%
6.0%
6.0%
4.0%
4.0%
8.0%
8.0%
4.5%
4.5%
6.0%
6.0%
4.0%
4.0%
$53
$53
$35
$35
$43
$43
$59
$59
$55
$55
$36
$36
$44
$44
$54
$54
10.0%
10.0%
6.5%
6.5%
8.0%
8.0%
5.0%
5.0%
10.0%
10.0%
6.5%
6.5%
8.0%
8.0%
5.0%
5.0%
F-35 BlackRock | 2023 Form 10-K
Broker-dealers. BlackRock Investments, LLC and
BlackRock Execution Services are registered broker-
Broker-dealers. BlackRock Investments, LLC and
dealers and wholly owned subsidiaries of BlackRock that
BlackRock Execution Services are registered broker-
are subject to the Uniform Net Capital requirements under
dealers and wholly owned subsidiaries of BlackRock that
the Securities Exchange Act of 1934, which requires
are subject to the Uniform Net Capital requirements under
maintenance of certain minimum net capital levels.
the Securities Exchange Act of 1934, which requires
maintenance of certain minimum net capital levels.
Capital Requirements. At December 31, 2023 and 2022, the
Company was required to maintain approximately
Capital Requirements. At December 31, 2023 and 2022, the
$1.8 billion and $2.2 billion, respectively, in net capital in
Company was required to maintain approximately
certain regulated subsidiaries, including BTC, entities
$1.8 billion and $2.2 billion, respectively, in net capital in
regulated by the Financial Conduct Authority and Prudential
certain regulated subsidiaries, including BTC, entities
Regulation Authority in the UK, and the Company’s broker-
regulated by the Financial Conduct Authority and Prudential
dealers. The Company was in compliance with all applicable
Regulation Authority in the UK, and the Company’s broker-
regulatory net capital requirements.
dealers. The Company was in compliance with all applicable
regulatory net capital requirements.
21. Accumulated Other Comprehensive Income (Loss)
21. Accumulated Other Comprehensive Income (Loss)
The following table presents changes in AOCI for 2023,
2022 and 2021:
The following table presents changes in AOCI for 2023,
2022 and 2021:
(in millions)
2023
2023
$ (1,101)
$ (1,101)
2022
2022
$ (550)
$ (550)
2021
2021
$ (337)
$ (337)
(in millions)
Beginning balance
Beginning balance
Foreign currency
translation
Foreign currency
adjustments(1)
translation
adjustments(1)
Ending balance
Ending balance
(1)
(1)
261
261
$ (840)
$ (840)
(213)
(213)
$ (550)
$ (550)
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
Amount for 2023 includes a loss from a net investment hedge of $20 million (net of tax
$37 million (net of tax expense of $12 million). Amount for 2021 includes a gain from a
benefit of $6 million). Amount for 2022 includes a gain from a net investment hedge of
net investment hedge of $46 million (net of tax expense of $14 million).
$37 million (net of tax expense of $12 million). Amount for 2021 includes a gain from a
net investment hedge of $46 million (net of tax expense of $14 million).
(551)
(551)
$ (1,101)
$ (1,101)
BlackRock | 2023 Form 10-K
F-35
22. Capital Stock
22. Capital Stock
Cash Dividends for Common Shares / RSUs. During 2023,
2022 and 2021, the Company paid cash dividends of
Cash Dividends for Common Shares / RSUs. During 2023,
$20.00 per share (or $3.0 billion), $19.52 per share (or
2022 and 2021, the Company paid cash dividends of
$3.0 billion) and $16.52 per share (or $2.5 billion),
$20.00 per share (or $3.0 billion), $19.52 per share (or
respectively.
$3.0 billion) and $16.52 per share (or $2.5 billion),
respectively.
Share Repurchases. In January 2023, the Company
announced that the Board of Directors authorized the
Share Repurchases. In January 2023, the Company
repurchase of an additional seven million shares under
announced that the Board of Directors authorized the
the Company’s existing share repurchase program for a
repurchase of an additional seven million shares under
total of up to approximately 7.9 million shares of
the Company’s existing share repurchase program for a
BlackRock common stock. The timing and actual number
total of up to approximately 7.9 million shares of
of shares repurchased will depend on a variety of factors,
BlackRock common stock. The timing and actual number
including legal limitations, price and market conditions.
of shares repurchased will depend on a variety of factors,
including legal limitations, price and market conditions.
During 2023, the Company repurchased 2.2 million
common shares under the Company’s existing share
During 2023, the Company repurchased 2.2 million
repurchase program for approximately $1.5 billion. At
common shares under the Company’s existing share
December 31, 2023, there were approximately 5.7 million
repurchase program for approximately $1.5 billion. At
shares still authorized to be repurchased under the
December 31, 2023, there were approximately 5.7 million
program.
shares still authorized to be repurchased under the
program.
The Company’s common shares issued and outstanding and related activity consist of the following:
The Company’s common shares issued and outstanding and related activity consist of the following:
December 31, 2020
December 31, 2020
Shares repurchased
Net issuance of common shares related to employee stock transactions
Shares repurchased
Net issuance of common shares related to employee stock transactions
December 31, 2021
December 31, 2021
Shares repurchased
Net issuance of common shares related to employee stock transactions
Shares repurchased
Net issuance of common shares related to employee stock transactions
December 31, 2022
December 31, 2022
Shares repurchased
Net issuance of common shares related to employee stock transactions
Shares repurchased
Net issuance of common shares related to employee stock transactions
December 31, 2023
December 31, 2023
23. Restructuring Charge
23. Restructuring Charge
In the fourth quarter of 2023, a restructuring charge of
$61 million ($46 million after-tax), comprised of
In the fourth quarter of 2023, a restructuring charge of
$47 million of severance and $14 million of compensation
$61 million ($46 million after-tax), comprised of
expense for accelerated vesting of previously granted
$47 million of severance and $14 million of compensation
deferred compensation awards, was recorded in
expense for accelerated vesting of previously granted
connection with initiatives to reorganize specific platforms,
deferred compensation awards, was recorded in
primarily Aladdin and illiquid alternative investments.
connection with initiatives to reorganize specific platforms,
primarily Aladdin and illiquid alternative investments.
In the fourth quarter of 2022, a restructuring charge of
$91 million ($69 million after-tax), comprised of
In the fourth quarter of 2022, a restructuring charge of
$58 million of severance and $33 million of expense
$91 million ($69 million after-tax), comprised of
related to the accelerated amortization of previously
$58 million of severance and $33 million of expense
granted stock-based compensation awards, was recorded
related to the accelerated amortization of previously
in connection with an initiative to modify the size and
granted stock-based compensation awards, was recorded
shape of the workforce to align more closely with strategic
in connection with an initiative to modify the size and
priorities.
shape of the workforce to align more closely with strategic
priorities.
Shares Issued
Shares Issued
Common
Shares
Common
Shares
172,075,373
172,075,373
—
—
—
—
172,075,373
172,075,373
—
—
—
—
172,075,373
172,075,373
—
—
—
—
172,075,373
172,075,373
Treasury
Common
Treasury
Shares
Common
Shares
(19,542,488)
(19,542,488)
(1,421,994)
573,600
(1,421,994)
573,600
(20,390,882)
(20,390,882)
(2,710,821)
782,822
(2,710,821)
782,822
(22,318,881)
(22,318,881)
(2,176,538)
920,120
(2,176,538)
920,120
(23,575,299)
(23,575,299)
Shares Outstanding
Shares Outstanding
Common
Shares
Common
Shares
152,532,885
152,532,885
(1,421,994)
573,600
(1,421,994)
573,600
151,684,491
151,684,491
(2,710,821)
782,822
(2,710,821)
782,822
149,756,492
149,756,492
(2,176,538)
920,120
(2,176,538)
920,120
148,500,074
148,500,074
The table below presents a rollforward of the Company’s
restructuring liability for 2023 and 2022, which is
The table below presents a rollforward of the Company’s
included in other liabilities on the consolidated
restructuring liability for 2023 and 2022, which is
statements of financial condition:
included in other liabilities on the consolidated
statements of financial condition:
(in millions)
Liability as of December 31, 2021
(in millions)
Liability as of December 31, 2021
Additions
Accelerated vesting expense of deferred
Additions
Accelerated vesting expense of deferred
compensation awards
compensation awards
Liability as of December 31, 2022
Liability as of December 31, 2022
Cash payments
Additions
Cash payments
Accelerated vesting expense of deferred
Additions
Accelerated vesting expense of deferred
compensation awards
compensation awards
Liability as of December 31, 2023
Liability as of December 31, 2023
$ —
91
$ —
91
(33)
(33)
58
58
(58)
61
(58)
61
(14)
(14)
$ 47
$ 47
F-36 BlackRock | 2023 Form 10-K
24. Income Taxes
24. Income Taxes
The components of income tax expense for 2023, 2022
and 2021, are as follows:
The components of income tax expense for 2023, 2022
and 2021, are as follows:
(in millions)
(in millions)
Current income tax expense:
Current income tax expense:
Federal
Federal
State and local
State and local
Foreign
Foreign
Total net current income tax
Total net current income tax
expense
expense
Deferred income tax expense
Deferred income tax expense
(benefit):
(benefit):
Federal
Federal
State and local
State and local
Foreign
Foreign
2023
2023
$ 641
$ 641
176
176
538
538
1,355
1,355
2022
2022
$ 255
$ 255
(9)
(9)
448
448
694
694
2021
2021
$ 2,031
$ 2,031
226
226
576
576
2,833
2,833
101
101
11
11
12
12
124
124
$ 1,479
$ 1,479
562
562
64
64
(24)
(24)
602
602
$ 1,296
$ 1,296
(935)
(935)
(150)
(150)
220
220
(865)
(865)
$ 1,968
$ 1,968
BlackRock | 2023 Form 10-K
F-36
Income tax expense has been based on the following
components of income before taxes, less net income (loss)
Income tax expense has been based on the following
attributable to NCI:
components of income before taxes, less net income (loss)
attributable to NCI:
(in millions)
(in millions)
Domestic
Domestic
Foreign
Foreign
Total
Total
2023
2023
$ 4,565
$ 4,565
2,416
2,416
$ 6,981
$ 6,981
2022
2022
$ 4,604
$ 4,604
1,870
1,870
$ 6,474
$ 6,474
2021
2021
$ 5,030
$ 5,030
2,839
2,839
$ 7,869
$ 7,869
The foreign income before taxes includes countries that
have statutory tax rates that are different than the US
The foreign income before taxes includes countries that
federal statutory tax rate of 21%, such as the UK, Canada,
have statutory tax rates that are different than the US
Germany and Ireland.
federal statutory tax rate of 21%, such as the UK, Canada,
Germany and Ireland.
expense (benefit)
expense (benefit)
Total net deferred income tax
Total net deferred income tax
Total income tax expense
Total income tax expense
A reconciliation of income tax expense with expected federal income tax expense computed at the applicable federal
income tax rate of 21% for 2023, 2022 and 2021 is as follows:
A reconciliation of income tax expense with expected federal income tax expense computed at the applicable federal
income tax rate of 21% for 2023, 2022 and 2021 is as follows:
(in millions)
(in millions)
Statutory income tax expense
Statutory income tax expense
Increase (decrease) in income taxes resulting from:
Increase (decrease) in income taxes resulting from:
State and local taxes (net of federal benefit)
State and local taxes (net of federal benefit)
Impact of federal, foreign, state, and local tax rate changes on deferred taxes
Impact of federal, foreign, state, and local tax rate changes on deferred taxes
Stock-based compensation awards
Stock-based compensation awards
Resolution of outstanding tax matters
Resolution of outstanding tax matters
Effect of foreign tax rates
Effect of foreign tax rates
Other
Other
Income tax expense
Income tax expense
2023
2023
$ 1,466
$ 1,466
110
110
—
—
(41)
(41)
(204)
(204)
112
112
36
36
$ 1,479
$ 1,479
2022
2022
21% $ 1,360
21% $ 1,360
115
2
115
(25)
2
—
(25)
(87)
—
(1)
(87)
(143)
(1)
(3)
(143)
23
(3)
2
23
53
2
—
53
—
21% $ 1,296
21% $ 1,296
2021
2021
21% $ 1,653
21% $ 1,653
121
2
121
2
125
—
125
—
(43)
(1)
(43)
(1)
—
(2)
—
(2)
32
—
32
—
80
—
—
80
20% $ 1,968
20% $ 1,968
21%
21%
2
2
2
2
(1)
(1)
—
—
—
—
1
1
25%
25%
Deferred income taxes are provided for the effects of
temporary differences between the tax basis of an asset or
Deferred income taxes are provided for the effects of
liability and its reported amount in the consolidated
temporary differences between the tax basis of an asset or
financial statements. These temporary differences result
liability and its reported amount in the consolidated
in taxable or deductible amounts in future years.
financial statements. These temporary differences result
in taxable or deductible amounts in future years.
The components of deferred income tax assets and
liabilities are shown below:
The components of deferred income tax assets and
liabilities are shown below:
(in millions)
(in millions)
Deferred income tax assets:
Deferred income tax assets:
Compensation and benefits
Compensation and benefits
Loss carryforwards
Loss carryforwards
Capitalized costs
Capitalized costs
Other
Other
Gross deferred tax assets
Gross deferred tax assets
Less: deferred tax valuation allowances
Less: deferred tax valuation allowances
Deferred tax assets net of valuation
Deferred tax assets net of valuation
allowances
allowances
Deferred income tax liabilities:
Deferred income tax liabilities:
lived intangibles
lived intangibles
Goodwill and acquired indefinite-
Goodwill and acquired indefinite-
Acquired finite-lived intangibles
Acquired finite-lived intangibles
Unrealized investment gains
Unrealized investment gains
Other
Other
Gross deferred tax liabilities
Gross deferred tax liabilities
Net deferred tax (liabilities)
Net deferred tax (liabilities)
December 31,
December 31,
2023
2023
2022
2022
$
$
375
375
95
95
216
216
825
825
1,511
(59)
1,511
(59)
1,452
1,452
4,299
4,299
86
86
25
25
340
340
4,750
4,750
$ (3,298)
$ (3,298)
$
$
568
568
100
100
103
103
903
903
1,674
(39)
1,674
(39)
1,635
1,635
4,244
4,244
114
114
72
72
349
349
4,779
4,779
$ (3,144)
$ (3,144)
Deferred income tax assets and liabilities are recorded net
when related to the same tax jurisdiction. At December 31,
Deferred income tax assets and liabilities are recorded net
2023, the Company recorded on the consolidated
when related to the same tax jurisdiction. At December 31,
statement of financial condition deferred income tax
2023, the Company recorded on the consolidated
assets, within other assets, and deferred income tax
statement of financial condition deferred income tax
liabilities of $208 million and $3.5 billion, respectively. At
assets, within other assets, and deferred income tax
December 31, 2022, the Company recorded on the
liabilities of $208 million and $3.5 billion, respectively. At
consolidated statement of financial condition deferred
December 31, 2022, the Company recorded on the
income tax assets, within other assets, and deferred
consolidated statement of financial condition deferred
income tax liabilities of $237 million and $3.4 billion,
income tax assets, within other assets, and deferred
respectively.
income tax liabilities of $237 million and $3.4 billion,
respectively.
Income tax expense for 2023 included $242 million
discrete tax net benefits related to the resolution of certain
Income tax expense for 2023 included $242 million
outstanding tax matters and stock-based compensation
discrete tax net benefits related to the resolution of certain
awards that vested in 2023. Income tax expense for 2022
outstanding tax matters and stock-based compensation
included $235 million of net discrete tax benefits primarily
awards that vested in 2023. Income tax expense for 2022
related to stock-based compensation awards that vested
included $235 million of net discrete tax benefits primarily
in 2022 and the resolution of certain outstanding tax
related to stock-based compensation awards that vested
matters, and $35 million of net noncash tax benefits
in 2022 and the resolution of certain outstanding tax
related to the revaluation of certain deferred income tax
matters, and $35 million of net noncash tax benefits
liabilities.
related to the revaluation of certain deferred income tax
liabilities.
At December 31, 2023 and 2022, the Company had
available state net operating loss carryforwards of
At December 31, 2023 and 2022, the Company had
$2.7 billion and $2.5 billion, respectively, which will begin
available state net operating loss carryforwards of
to expire in 2024. At December 31, 2023 and 2022, the
$2.7 billion and $2.5 billion, respectively, which will begin
Company had foreign net operating loss carryforwards of
to expire in 2024. At December 31, 2023 and 2022, the
$164 million and $179 million, respectively, of which
Company had foreign net operating loss carryforwards of
$5 million will begin to expire in 2024.
$164 million and $179 million, respectively, of which
$5 million will begin to expire in 2024.
F-37 BlackRock | 2023 Form 10-K
At December 31, 2023 and 2022, the Company had
$59 million and $39 million of valuation allowances for
At December 31, 2023 and 2022, the Company had
deferred income tax assets, respectively, recorded on the
$59 million and $39 million of valuation allowances for
consolidated statements of financial condition.
deferred income tax assets, respectively, recorded on the
consolidated statements of financial condition.
Current income taxes are recorded net on the
consolidated statements of financial condition when
Current income taxes are recorded net on the
related to the same tax jurisdiction. At December 31, 2023,
consolidated statements of financial condition when
the Company had current income taxes receivable and
related to the same tax jurisdiction. At December 31, 2023,
payable of $252 million and $85 million, respectively,
the Company had current income taxes receivable and
recorded in other assets and accounts payable and
payable of $252 million and $85 million, respectively,
accrued liabilities, respectively. At December 31, 2022, the
recorded in other assets and accounts payable and
Company had current income taxes receivable and
accrued liabilities, respectively. At December 31, 2022, the
payable of $354 million and $92 million, respectively,
Company had current income taxes receivable and
recorded in other assets and accounts payable and
payable of $354 million and $92 million, respectively,
accrued liabilities, respectively.
recorded in other assets and accounts payable and
accrued liabilities, respectively.
The following tabular reconciliation presents the total
amounts of gross unrecognized tax benefits:
The following tabular reconciliation presents the total
amounts of gross unrecognized tax benefits:
(in millions)
2023
2023
$ 912
$ 912
25
25
(22)
(22)
2021
2021
$ 940
$ 940
18
18
(4)
(4)
2022
2022
$1,022
$1,022
13
13
(75)
(75)
49
49
16
16
(231)
(231)
$ 749
$ 749
69
69
—
—
(1)
(1)
$1,022
$1,022
55
55
—
—
(103)
(103)
$ 912
$ 912
(in millions)
Balance at January 1
Balance at January 1
Additions for tax positions of
Additions for tax positions of
Reductions for tax positions of
Reductions for tax positions of
Additions based on tax
Additions based on tax
prior years
prior years
prior years
prior years
positions related to current
year
positions related to current
year
Additions related to business
combinations
Additions related to business
combinations
Settlements
Settlements
Balance at December 31
Balance at December 31
Included in the balance of unrecognized tax benefits at
December 31, 2023, 2022 and 2021, respectively, are
Included in the balance of unrecognized tax benefits at
$505 million, $497 million and $616 million of tax benefits
December 31, 2023, 2022 and 2021, respectively, are
that, if recognized, would affect the effective tax rate.
$505 million, $497 million and $616 million of tax benefits
that, if recognized, would affect the effective tax rate.
The Company recognizes interest and penalties related to
income tax matters as a component of income tax
The Company recognizes interest and penalties related to
expense. Related to the unrecognized tax benefits noted
income tax matters as a component of income tax
above, the Company accrued interest and penalties of
expense. Related to the unrecognized tax benefits noted
$(20) million during 2023 and in total, as of December 31,
above, the Company accrued interest and penalties of
2023, had recognized a liability for interest and penalties
$(20) million during 2023 and in total, as of December 31,
of $140 million. The Company accrued interest and
2023, had recognized a liability for interest and penalties
penalties of $(40) million during 2022 and in total, as of
of $140 million. The Company accrued interest and
December 31, 2022, had recognized a liability for interest
penalties of $(40) million during 2022 and in total, as of
and penalties of $160 million. The Company accrued
December 31, 2022, had recognized a liability for interest
interest and penalties of $36 million during 2021 and in
and penalties of $160 million. The Company accrued
total, as of December 31, 2021, had recognized a liability
interest and penalties of $36 million during 2021 and in
for interest and penalties of $200 million.
total, as of December 31, 2021, had recognized a liability
for interest and penalties of $200 million.
BlackRock is subject to US federal income tax, state and
local income tax, and foreign income tax in multiple
BlackRock is subject to US federal income tax, state and
jurisdictions. Tax years after 2015 remain open to US
local income tax, and foreign income tax in multiple
federal income tax examination.
jurisdictions. Tax years after 2015 remain open to US
federal income tax examination.
During 2014 and 2019, the Internal Revenue Service
commenced its examination of BlackRock’s 2012 through
During 2014 and 2019, the Internal Revenue Service
2015 tax years, for which the examination was concluded
commenced its examination of BlackRock’s 2012 through
in 2023. During 2020 and 2021, the Internal Revenue
2015 tax years, for which the examination was concluded
Service commenced its examination of BlackRock’s 2017
in 2023. During 2020 and 2021, the Internal Revenue
through 2018 tax years and 2019 tax year, respectively.
Service commenced its examination of BlackRock’s 2017
During 2023, the Internal Revenue Service commenced its
through 2018 tax years and 2019 tax year, respectively.
examination of BlackRock’s 2016 tax year.
During 2023, the Internal Revenue Service commenced its
examination of BlackRock’s 2016 tax year.
BlackRock | 2023 Form 10-K
F-38
Americas is primarily comprised of the US, Latin America
and Canada. Europe is primarily comprised of the UK, the
Americas is primarily comprised of the US, Latin America
Netherlands, Switzerland, France, Ireland and
and Canada. Europe is primarily comprised of the UK, the
Luxembourg. Asia-Pacific is primarily comprised of Hong
Netherlands, Switzerland, France, Ireland and
Kong, Australia, Japan and Singapore.
Luxembourg. Asia-Pacific is primarily comprised of Hong
Kong, Australia, Japan and Singapore.
27. Subsequent Events
27. Subsequent Events
In January 2024, BlackRock announced that it had
entered into a definitive agreement to acquire 100% of the
In January 2024, BlackRock announced that it had
business and assets of Global Infrastructure Management
entered into a definitive agreement to acquire 100% of the
LLC (referred to herein as Global Infrastructure Partners
business and assets of Global Infrastructure Management
(“GIP”)), a leading independent infrastructure fund
LLC (referred to herein as Global Infrastructure Partners
manager, for $3 billion in cash and approximately
(“GIP”)), a leading independent infrastructure fund
12 million shares of BlackRock common stock.
manager, for $3 billion in cash and approximately
Approximately 30% of the total consideration, all in stock,
12 million shares of BlackRock common stock.
will be deferred and will be issued subject to the
Approximately 30% of the total consideration, all in stock,
satisfaction of certain post-closing events. The Company
will be deferred and will be issued subject to the
intends to fund the cash consideration through $3 billion
satisfaction of certain post-closing events. The Company
of additional debt. The Company believes the combination
intends to fund the cash consideration through $3 billion
of GIP with BlackRock’s complementary infrastructure
of additional debt. The Company believes the combination
offerings will create a broad global infrastructure
of GIP with BlackRock’s complementary infrastructure
franchise with differentiated origination and asset
offerings will create a broad global infrastructure
management capabilities. The GIP Transaction is expected
franchise with differentiated origination and asset
to close in the third quarter of 2024 subject to customary
management capabilities. The GIP Transaction is expected
regulatory approvals and other closing conditions.
to close in the third quarter of 2024 subject to customary
regulatory approvals and other closing conditions.
On January 12, 2024, the Company announced that the
Board of Directors approved BlackRock’s quarterly
On January 12, 2024, the Company announced that the
dividend of $5.10 per share to be paid on March 22, 2024
Board of Directors approved BlackRock’s quarterly
to stockholders of record at the close of business on
dividend of $5.10 per share to be paid on March 22, 2024
March 7, 2024.
to stockholders of record at the close of business on
March 7, 2024.
The Company conducted a review for additional
subsequent events and determined that no subsequent
The Company conducted a review for additional
events had occurred that would require accrual or
subsequent events and determined that no subsequent
additional disclosures.
events had occurred that would require accrual or
additional disclosures.
F-38 BlackRock | 2023 Form 10-K
For 2023, 194,240 shares primarily related to stock
options were excluded from the calculation of EPS
For 2023, 194,240 shares primarily related to stock
because to include them would have an anti-dilutive
options were excluded from the calculation of EPS
effect. The amount of anti-dilutive RSUs and stock options
because to include them would have an anti-dilutive
were immaterial for 2022 and 2021. Certain performance-
effect. The amount of anti-dilutive RSUs and stock options
based RSUs and options were excluded from diluted EPS
were immaterial for 2022 and 2021. Certain performance-
calculation because the designated contingencies were
based RSUs and options were excluded from diluted EPS
not met for 2023, 2022 and 2021, respectively.
calculation because the designated contingencies were
not met for 2023, 2022 and 2021, respectively.
26. Segment Information
26. Segment Information
The Company’s management directs BlackRock’s
operations as one business, the asset management
The Company’s management directs BlackRock’s
business. The Company utilizes a consolidated approach
operations as one business, the asset management
to assess performance and allocate resources. As such,
business. The Company utilizes a consolidated approach
the Company operates in one business segment.
to assess performance and allocate resources. As such,
the Company operates in one business segment.
The following table illustrates total revenue for 2023, 2022
and 2021 by geographic region. These amounts are
The following table illustrates total revenue for 2023, 2022
aggregated on a legal entity basis and do not necessarily
and 2021 by geographic region. These amounts are
reflect where the customer resides or affiliated services
aggregated on a legal entity basis and do not necessarily
are provided.
reflect where the customer resides or affiliated services
are provided.
(in millions)
2022
2022
$ 11,931
$ 11,931
5,164
5,164
778
778
$ 17,873
$ 17,873
2021
2021
$ 12,399
$ 12,399
6,105
6,105
870
870
$ 19,374
$ 19,374
2023
2023
$ 11,899
$ 11,899
5,209
5,209
751
751
$ 17,859
$ 17,859
(in millions)
Revenue
Revenue
Americas
Americas
Europe
Europe
Asia-Pacific
Asia-Pacific
Total revenue
Total revenue
See Note 16, Revenue, for further information on the
Company’s sources of revenue.
See Note 16, Revenue, for further information on the
Company’s sources of revenue.
The following table illustrates long-lived assets that
consist of goodwill and property and equipment at
The following table illustrates long-lived assets that
December 31, 2023 and 2022 by geographic region.
consist of goodwill and property and equipment at
These amounts are aggregated on a legal entity basis and
December 31, 2023 and 2022 by geographic region.
do not necessarily reflect where the asset is physically
These amounts are aggregated on a legal entity basis and
located.
do not necessarily reflect where the asset is physically
located.
(in millions)
(in millions)
Long-lived Assets
Long-lived Assets
Americas
Americas
Europe
Europe
Asia-Pacific
Asia-Pacific
Total long-lived assets
Total long-lived assets
2023
2023
$ 15,017
$ 15,017
1,521
1,521
98
98
$ 16,636
$ 16,636
2022
2022
$ 14,945
$ 14,945
1,329
1,329
98
98
$ 16,372
$ 16,372
BlackRock | 2023 Form 10-K
F-37
The Company is currently under audit in several state and
local jurisdictions. The significant state and local income
The Company is currently under audit in several state and
tax examinations are in New York State for tax years 2012
local jurisdictions. The significant state and local income
through 2020, for which 2012 through 2014 examination
tax examinations are in New York State for tax years 2012
was concluded during 2023, and New York City for tax
through 2020, for which 2012 through 2014 examination
years 2012 through 2014. No open state and local tax
was concluded during 2023, and New York City for tax
examinations cover years earlier than 2012.
years 2012 through 2014. No open state and local tax
examinations cover years earlier than 2012.
Upon conclusion of its examination, Her Majesty’s
Revenue and Customs (“HMRC”) issued a closure notice
Upon conclusion of its examination, Her Majesty’s
during 2017 for various UK BlackRock subsidiaries for tax
Revenue and Customs (“HMRC”) issued a closure notice
years 2009 and years after. At that time, the Company
during 2017 for various UK BlackRock subsidiaries for tax
decided to pursue litigation for the tax matters included
years 2009 and years after. At that time, the Company
on such notice. During 2020, the Company received a
decided to pursue litigation for the tax matters included
favorable decision from the First Tier Tribunal (“FTT”),
on such notice. During 2020, the Company received a
however, HMRC appealed to the Upper Tribunal (“UT”) and
favorable decision from the First Tier Tribunal (“FTT”),
the UT ruled in HMRC’s favor, overturning the FTT’s
however, HMRC appealed to the Upper Tribunal (“UT”) and
decision in July 2022. BlackRock appealed UT’s decision
the UT ruled in HMRC’s favor, overturning the FTT’s
to the UK Court of Appeal (“CoA”) and the appeal hearing
decision in July 2022. BlackRock appealed UT’s decision
is scheduled for March 2024. BlackRock does not expect
to the UK Court of Appeal (“CoA”) and the appeal hearing
the ultimate resolution to result in a material impact to the
is scheduled for March 2024. BlackRock does not expect
consolidated financial statements.
the ultimate resolution to result in a material impact to the
consolidated financial statements.
From time to time, BlackRock may receive or be subject to
tax authorities’ assessments and challenges related to
From time to time, BlackRock may receive or be subject to
income taxes. BlackRock does not currently expect the
tax authorities’ assessments and challenges related to
ultimate resolution of any other existing matters to be
income taxes. BlackRock does not currently expect the
material to the consolidated financial statements.
ultimate resolution of any other existing matters to be
material to the consolidated financial statements.
At December 31, 2023, it is reasonably possible the total
amounts of unrecognized tax benefits will change within
At December 31, 2023, it is reasonably possible the total
the next twelve months due to completion of tax
amounts of unrecognized tax benefits will change within
authorities’ exams or the expiration of statues of
the next twelve months due to completion of tax
limitations. Management estimates that the existing
authorities’ exams or the expiration of statues of
liability for uncertain tax positions could decrease by
limitations. Management estimates that the existing
approximately $65 million to $280 million within the next
liability for uncertain tax positions could decrease by
twelve months.
approximately $65 million to $280 million within the next
twelve months.
25. Earnings Per Share
25. Earnings Per Share
The following table sets forth the computation of basic
and diluted EPS for 2023, 2022 and 2021:
The following table sets forth the computation of basic
and diluted EPS for 2023, 2022 and 2021:
(in millions, except
shares and per share
(in millions, except
data)
shares and per share
data)
2023
2023
2022
2022
2021
2021
Net income
Net income
attributable to
BlackRock, Inc.
attributable to
BlackRock, Inc.
Basic weighted-
average shares
Basic weighted-
outstanding
average shares
outstanding
Dilutive effect of:
Dilutive effect of:
RSUs
RSUs
Nonparticipating
Nonparticipating
Stock options
Stock options
Total diluted
weighted-
Total diluted
average shares
weighted-
outstanding
average shares
outstanding
Basic earnings
per share
Basic earnings
per share
Diluted earnings
per share
Diluted earnings
per share
$
$
5,502 $
5,502 $
5,178 $
5,178 $
5,901
5,901
149,327,558 150,921,161 152,236,047
149,327,558 150,921,161 152,236,047
969,089
969,089
409,804
409,804
1,119,829
1,119,829
399,481
399,481
1,507,859
1,507,859
660,451
660,451
150,706,451 152,440,471 154,404,357
150,706,451 152,440,471 154,404,357
38.76
38.76
38.22
38.22
34.31 $
34.31 $
33.97 $
33.97 $
36.85 $
36.85 $
36.51 $
36.51 $
$
$
$
$
COMMON STOCK INFORMATION
COMMON STOCK INFORMATION
Common Stock Performance Graph
Common Stock Performance Graph
The following graph compares the cumulative total stockholder return on BlackRock’s common stock from December 31,
The following graph compares the cumulative total stockholder return on BlackRock’s common stock from December 31,
2018 through December 31, 2023, as compared with the cumulative total return of the S&P 500 Index and the S&P 500
2018 through December 31, 2023, as compared with the cumulative total return of the S&P 500 Index and the S&P 500
Financials Index. The graph assumes the investment of $100 in BlackRock’s common stock and in each of the two indices
Financials Index. The graph assumes the investment of $100 in BlackRock’s common stock and in each of the two indices
on December 31, 2018 and the reinvestment of all dividends, if any. The following information has been obtained from
on December 31, 2018 and the reinvestment of all dividends, if any. The following information has been obtained from
sources believed to be reliable, but neither its accuracy nor its completeness is guaranteed. The performance graph is not
sources believed to be reliable, but neither its accuracy nor its completeness is guaranteed. The performance graph is not
necessarily indicative of future investment performance.
necessarily indicative of future investment performance.
Total Return Performance
Total Return Performance
$300
$300
$250
$250
$200
$200
$150
$150
$100
$100
$50
$50
BlackRock, Inc.
BlackRock, Inc.
S&P 500 Index
S&P 500 Index
S&P 500 Financials Index
S&P 500 Financials Index
$0
$0
12/31/18
12/31/18
12/31/19
12/31/19
12/31/20
12/31/20
12/31/21
12/31/21
12/31/22
12/31/22
12/31/23
12/31/23
BlackRock, Inc.
BlackRock, Inc.
S&P 500 Index
S&P 500 Index
Period Ending
Period Ending
12/31/18
12/31/18
12/31/19
12/31/19
12/31/20
12/31/20
12/31/21
12/31/21
12/31/22
12/31/22
12/31/23
12/31/23
$100.00
$100.00
$131.83
$131.83
$194.06
$194.06
$251.14
$251.14
$199.98
$199.98
$235.72
$235.72
$100.00
$100.00
$131.49
$131.49
$155.68
$155.68
$200.37
$200.37
$164.08
$164.08
$207.21
$207.21
S&P 500 Financials Index
S&P 500 Financials Index
$100.00
$100.00
$132.13
$132.13
$129.89
$129.89
$175.40
$175.40
$156.92
$156.92
$175.99
$175.99
Corporate
Information
Corporate headquarters
AMERICAS
BlackRock, Inc.
50 Hudson Yards
New York, NY 10001
(212) 810-5800
BlackRock offices
worldwide
BlackRock has offices in
more than 30 countries and a
major presence in key global
markets, including North and
South America, Europe, Asia,
Australia and the Middle East
and Africa.
Atlanta
Bogotá
Boston
Chicago
Dallas
Denver
Greenwich
Houston
Mexico City
Miami
Montreal
New York
Newport Beach
Palo Alto
Philadelphia
Pittsburgh
Princeton
Puerto Plata
San Francisco
Santa Monica
Santiago de los Caballeros
São Paulo
Sausalito
Seattle
Toronto
Washington D.C.
West Palm Beach
Wilmington
EMEA
Amsterdam
Belgrade
Brussels
Budapest
Cape Town
Copenhagen
Dubai
Dublin
Edinburgh
Frankfurt
Geneva
London
Luxembourg
Madrid
Milan
Munich
Paris
Riyadh
Stockholm
Tel Aviv
Vienna
Zürich
ASIA-PACIFIC
Bengaluru
Beijing
Brisbane
Gurgaon
Hong Kong
Melbourne
Mumbai
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Stock listing
BlackRock, Inc.’s common
stock is traded on the New
York Stock Exchange under
the symbol BLK. At the close
of business on January 31,
2024, there were 197 common
stockholders of record.
Internet information
Information on BlackRock’s
financial results and its
products and services is
available on the Internet at
www.blackrock.com.
Financial information
BlackRock makes available,
free of charge, through its
website at www.blackrock.
com, under the heading
“Investor Relations,”
its Annual Report to
Stockholders, Annual Report
on Form 10-K, Quarterly
Reports on Form 10-Q,
Current Reports on Form
8-K, its Proxy Statement
and all amendments to
those reports as soon as
reasonably practicable after
such material is electronically
filed with or furnished to the
Securities and Exchange
Commission. The Company
has included as Exhibits
31.1 and 31.2 to its Annual
Report on Form 10-K for
fiscal year ended December
31, 2023 with the Securities
and Exchange Commission,
certificates of the Chief
Executive Officer and Chief
Financial Officer of the
Company certifying as to
the Company’s disclosure
in such Form 10-K, and the
Company has submitted to
the New York Stock Exchange
a certificate of the Chief
Executive Officer of the
Company certifying that he
is not aware of any violation
by the Company of New York
Stock Exchange corporate
governance listing standards.
Deloitte & Touche LLP has
provided its consent to the
inclusion of its reports dated
February 23, 2024, relating
to the consolidated financial
statements of BlackRock,
Inc., and the effectiveness
of BlackRock, Inc.’s internal
controls over financial
reporting, in the Company’s
Annual Report on Form 10-K
for the fiscal year ended
December 31, 2023, which
has been filed as Exhibit 23.1
to such report.
Inquiries
BlackRock will provide, free
of charge to each stockholder
upon written request, a
copy of BlackRock’s Annual
Report to Stockholders,
Annual Report on Form 10-K,
Quarterly Reports on Form
10-Q, Current Reports on
Form 8-K, Proxy Statement
and all amendments to
those reports. Requests
for copies should be
addressed to Investor
Relations, BlackRock, Inc.,
50 Hudson Yards, New York,
NY 10001. Requests may
also be directed to (212)
810-5800 or via email to
invrel@blackrock.com.
Copies may also be accessed
electronically by means
of the SEC’s home page
on the Internet at
www.sec.gov. Stockholders
and analysts should contact
Investor Relations at
(212) 810-5800 or via e-mail
at invrel@blackrock.com.
Registrar and transfer
agent
Computershare
Investor Services
480 Washington Boulevard
Jersey City, NJ 07310-1900
Telephone:
(800) 903-8567
©2024 BlackRock, Inc. All Rights Reserved. BlackRock, iShares, BlackRock Solutions, Aladdin and LifePath are registered trademarks of
BlackRock, Inc. or its subsidiaries in the United States and elsewhere.
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2023 Annual Report