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We expect these private market assets to positively impact BlackRock's overall effective fee rate by 0.5 Performancefees of $388 million increased significantly from a year ago, primarily reflecting strong alpha generation over the last 12 months from a hedge fund with an annual lock in the third quarter. to 1 full basis point.
billion was 7% higher year over year, driven by the impact of higher markets on average AUM and higher performancefees. Fourth quarter and full year performancefees of 311 million and 554 million, respectively, increased from a year ago, reflecting higher revenue from liquid alternatives and long-only mandates.
Finally, regarding our third pillar of efficient capital allocation, our priorities are unchanged, primarily investing in internal product development and reducing leverage. million driven by working capital needs as we initiated reconciliations for certain loss-making performancefee contracts that have since been restructured.
Second, our ability to drive earnings expansion given the operating leverage and margin maturation inherent in our business. I would note, we spent time at the Investor Day focused on performancefee margin ramp, and that margin maturation is continuing to perform as expected. Their leverage is coming down.
CPPIB's portfolio had 12 per cent in Canada as of the end of March, down from around 16 per cent in 2019, and 31 per cent in 2014. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. Our original investment was made in 2019.
In response to client demand and the opportunity, we're evolving to an organization that drives efficiency, operating leverage, and margin expansion to one that's also increasingly driving improved client service delivery and accelerating innovation at scale. I know you had highlighted difficult comp on performancefees in the quarter.
RITHOLTZ: Well, the Wall Street Journal column that I read about you from, it was pre-pandemic, 2019, something like that, you’re talking to Steve Cohen of Point72 and Ken Griffin of Citadel and all of these other giant hedge funds. I know you don’t disclose your clients, but the Wall Street Journal certainly mentioned those.
since its inception in 2019. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.
billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performancefees and technology services revenue also contributed to revenue growth. Our annualized effective fee rate was flat compared to the first quarter.
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