INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES

9 Months Ended

Sep. 30, 2023

Information about Receivables, Revenues, and Services [Abstract]

INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES

INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES.

Our revenues are derived primarily from investment advisory services provided to individual and institutional investors through the use of U.S. mutual funds, subadvised funds, separately managed accounts, collective investment trusts, and other sponsored products. The other sponsored products include: open-ended investment products offered to investors outside the U.S., products offered through variable annuity life insurance plans in the U.S., affiliated private investment funds, and collateralized loan obligations.

We also provide certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; trust services; and non-discretionary advisory services through model delivery.

Additionally, we derive revenue from our interests in general partners of certain affiliated private investment funds that are entitled to a disproportionate allocation of income through capital allocation-based arrangements also known as carried interest.

We manage a broad mix of equity, fixed income, multi-asset, and alternative classes and solutions that meet the varied needs and objectives of individual and institutional investors. Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management affect our revenues.

Net revenues earned for the three- and nine-month periods ended September 30, 2023 and 2022, are included in the table below along with details of investment advisory revenues earned from clients by their underlying asset class. We also included average assets under management by asset class, on which we earn the investment advisory revenues.


	Three months ended				Nine months ended
(in millions)	9/30/2023		9/30/2022		9/30/2023		9/30/2022
Investment advisory fees
Equity	$	885.0	$	897.0	$	2,581.2	$	2,924.0
Fixed income, including money market	100.9		107.6		303.3		324.1
Multi-asset	405.5		367.2		1,182.8		1,149.3
Alternatives	72.5		70.2		219.2		203.4
Total investment advisory fees	$	1,463.9	$	1,442.0	$	4,286.5	$	4,600.8
Capital allocation-based income	66.1		1.1		121.7		(80.8)
Total administrative, distribution, and servicing fees	140.7		145.1		410.3		444.2
Net revenues	$	1,670.7	$	1,588.2	$	4,818.5	$	4,964.2

Average AUM (in billions):
Equity	$	725.0	$	724.9	$	705.3	$	793.0
Fixed income, including money market	169.0		173.0		169.6		175.1
Multi-asset	453.8		406.7		438.5		426.6
Alternatives	45.8		42.9		44.8		42.4
Average AUM	$	1,393.6	$	1,347.5	$	1,358.2	$	1,437.1

Total net revenues earned from our sponsored products, primarily our sponsored U.S. mutual funds and collective investment trusts, aggregate $1,387.5 million and $1,311.2 million for the three months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023 and 2022, total net revenues earned from our sponsored products aggregate $3,979.9 million and $4,069.7 million, respectively. Accounts receivable from our sponsored products aggregate to $488.2 million at September 30, 2023 and $492.4 million at December 31, 2022.

Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 9.2%, 8.9%, and 9.1% of our assets under management at September 30, 2023, June 30, 2023, and December 31, 2022, respectively.