Asset-Management Economics

BlackRock’s AUM, Flows & Fee Engine

Use BlackRock’s FY2024 disclosures to separate end-period AUM, average AUM, market movements, net flows, fee rates and operating leverage. FY ended December 31, 2024; USD millions unless stated. Reported facts and company-defined adjusted measures are separated from independent calculations and hypothetical sensitivities.

What you will learn

• Reconcile changes in AUM without treating market appreciation as client deposits.
• Distinguish end-period from average AUM.
• Connect product mix to base-fee economics.
• Calculate GAAP and adjusted margins without mixing numerators.
• Interpret flows, performance fees and technology revenue.
• Write a capacity and product-mix decision memo.

Syllabus

1. 1AUM is a stock; flows are a movement12 min
2. 2Average AUM drives fees better than year-end AUM12 min
3. 3Product mix changes the fee yield12 min
4. 4Reconcile revenue and operating margin12 min
5. 5Separate recurring, performance and technology revenue12 min
6. 6Build a product-capacity memo12 min
7. CBusiness case: BlackRock: Scale the Flow Engine or Protect Fee Mix?22 min