Long-term product offerings include alpha-seeking active and index strategies.
Our alpha-seeking active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile, and leverage fundamental research and quantitative models to drive portfolio construction.
In contrast, index strategies seek to closely track the returns of a corresponding index, generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index.
Index strategies include both our non-ETF index products and iShares ETFs.
Although many clients use both alpha-seeking active and index strategies, the application of these strategies may differ.
For example, clients may use index products to gain exposure to a market or asset class, or may use a combination of index strategies to target active returns.
In addition, institutional non-ETF index assignments tend to be very large (multi-billion dollars) and typically reflect low fee rates.
Net flows in institutional index products generally have a small impact on BlackRock’s revenues and earnings.
Equity Year-end 2017 equity AUM totaled $3.372 trillion, reflecting net inflows of $130.1 billion.
Net inflows included $174.4 billion into iShares ETFs, driven by net inflows into Core funds and broad developed and emerging market equities, partially offset by non-ETF index and active net outflows of $25.7 billion and $18.5 billion, respectively.
BlackRock’s effective fee rates fluctuate due to changes in AUM mix.
Approximately half of BlackRock’s equity AUM is tied to international markets, including emerging markets, which tend to have higher fee rates than U. S.  equity strategies.
Accordingly, fluctuations in international equity markets, which may not consistently move in tandem with U. S.  markets, have a greater impact on BlackRock’s equity revenues and effective fee rate.
Fixed Income Fixed income AUM ended 2017 at $1.855 trillion, reflecting net inflows of $178.8 billion.
In 2017, active net inflows of $21.5 billion were diversified across fixed income offerings, and included strong inflows into municipal, unconstrained and total return bond funds.
iShares ETFs net inflows of $67.5 billion were led by flows into Core, corporate and treasury bond funds.
Non-ETF index net inflows of $89.8 billion were driven by demand for liability-driven investment solutions.
Multi-Asset BlackRock’s multi-asset team manages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities, bonds, currencies and commodities, and our extensive risk management capabilities.
Investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays.
Component changes in multi-asset AUM for 2017 are presented below.
## Table 0 ##
(1) FutureAdvisor amounts do not include AUM held in iShares ETFs.
Multi-asset net inflows reflected ongoing institutional demand for our solutions-based advice with $18.9 billion of net inflows coming from institutional clients.
Defined contribution plans of institutional clients remained a significant driver of flows, and contributed $20.8 billion to institutional multi-asset net inflows in 2017, primarily into target date and target risk product offerings.
Retail net inflows of $1.1 billion reflected demand for our Multi-Asset Income fund family, which raised $5.8 billion in 2017.
The Company’s multi-asset strategies include the following: ?
Asset allocation and balanced products represented 41% of multi-asset AUM at year-end.
These strategies combine equity, fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget.
In certain cases, these strategies seek to minimize downside risk through diversification, derivatives strategies and tactical asset allocation decisions.
Flagship products in this category include our Global Allocation and Multi-Asset Income fund families.  ?
Target date and target risk products grew 16% organically in 2017, with net inflows of $23.9 billion.
Institutional investors represented 93% of target date and target risk AUM, with defined contribution plans accounting for 87% of AUM.
Flows were driven by defined contribution investments in our LifePath offerings.
LifePath products utilize a proprietary active asset allocation overlay model that seeks to balance risk and return over an investment horizon based on the investor’s expected retirement timing.
Underlying investments are primarily index products.  ?
Fiduciary management services are complex mandates in which pension plan sponsors or endowments and foundations retain BlackRock to assume responsibility for some or all aspects of investment management.
These customized services require strong partnership with the clients’ investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives.
not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2017.
The 2017 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.
At December 31, 2017, the Company had no amount outstanding under the 2017 credit facility Commercial Paper Program.
The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion.
The commercial paper program is currently supported by the 2017 credit facility.
At December 31, 2017, BlackRock had no CP Notes outstanding Long-Term Borrowings The carrying value of long-term borrowings at December 31, 2017 included the following:
## Table 1 ##
(1) The carrying value of the 1.25% Notes estimated using foreign exchange rate as of December 31, 2017.
For more information on Company’s borrowings, see Note 12, Borrowings, in the notes to the consolidated financial statements contained in Part II, Item 8 of this filing.
Contractual Obligations, Commitments and Contingencies The following table sets forth contractual obligations, commitments and contingencies by year of payment at December 31, 2017:
## Table 2 ##
(1) Amounts do not include $350 million of cash payment consideration and contingent consideration related to the Company’s agreement to acquire the asset management business of Citibanamex.
(2) The amount of principal and interest payments for the 2025 Notes (issued in Euros) represents the expected payment amounts using foreign exchange rates as of December 31, 2017.
(3) The amount of contingent payments reflected for any year represents the expected payments using foreign currency exchange rates as of December 31, 2017.
The fair value of the remaining aggregate contingent payments at December 31, 2017 totaled $236 million and is included in other liabilities on the consolidated statements of financial condition.
(4) At December 31, 2017, the Company had approximately $365 million of net unrecognized tax benefits.
Due to the uncertainty of timing and amounts that will ultimately be paid, this amount has been excluded from the table above.
Operating Leases.
The Company leases its primary office locations under agreements that expire on varying dates through 2043.
In connection with certain lease agreements, the Company is responsible for escalation payments.
The contractual obligations table above includes only guaranteed minimum lease payments for such leases and does not project potential escalation or other lease-related payments.
These leases are classified as operating leases and, as such, are not recorded as liabilities on the consolidated statements of financial condition.
In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York.
The term of the lease is twenty years from the date that rental payments begin, expected to occur in
McKESSON CORPORATION FINANCIAL REVIEW (Continued) 46 In July 2008, the Board authorized the retirement of shares of the Company’s common stock that may be repurchased from time-to-time pursuant to its stock repurchase program.
During the second quarter of 2009, all of the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company.
The retired shares constitute authorized but unissued shares.
We elected to allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings.
As such, $165 million was recorded as a decrease to retained earnings.
The Company anticipates that it will continue to pay quarterly cash dividends in the future.
However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future earnings, financial condition, capital requirements and other factors.
Although we believe that our operating cash flow, financial assets, current access to capital and credit markets, including our existing credit and sales facilities, will give us the ability to meet our financing needs for the foreseeable future, there can be no assurance that continued or increased volatility and disruption in the global capital and credit markets will not impair our liquidity or increase our costs of borrowing.
Selected Measures of Liquidity and Capital Resources:

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(in millions)	December 31,2016	Net inflows (outflows)	Marketchange	FXimpact	December 31,2017
Asset allocation and balanced	$176,675	$-2,502	$17,387	$4,985	$196,545
Target date/risk	149,432	23,925	24,532	1,577	199,466
Fiduciary	68,395	-1,047	7,522	8,819	83,689
FutureAdvisor-1	505	-46	119	—	578
Total	$395,007	$20,330	$49,560	$15,381	$480,278

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(in millions)	Maturity Amount	Carrying Value	Maturity
5.00% Notes	$1,000	$999	December 2019
4.25% Notes	750	747	May 2021
3.375% Notes	750	746	June 2022
3.50% Notes	1,000	994	March 2024
1.25% Notes-1	841	835	May 2025
3.20% Notes	700	693	March 2027
Total Long-term Borrowings	$5,041	$5,014

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(in millions)	2018	2019	2020	2021	2022	Thereafter-1	Total
Contractual obligations and commitments-1:
Long-term borrowings-2:
Principal	$—	$1,000	$—	$750	$750	$2,541	$5,041
Interest	175	175	125	109	81	185	850
Operating leases	141	132	126	118	109	1,580	2,206
Purchase obligations	128	101	29	22	19	28	327
Investment commitments	298	—	—	—	—	—	298
Total contractual obligations and commitments	742	1,408	280	999	959	4,334	8,722
Contingent obligations:
Contingent payments related to business acquisitions-3	33	179	39	34	—	—	285
Total contractual obligations, commitments andcontingent obligations-4	$775	$1,587	$319	$1,033	$959	$4,334	$9,007

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Question: what is the percentage change in the balance of asset allocation from 2016 to 2017?
Answer: 0.11247000000000001