Invesco Announces Second Quarter Diluted EPS
of $0.29; Adjusted Diluted
EPS(1) of $0.43
ATLANTA, July 23,
2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today
reported financial results for the three months ended June 30, 2024.
- $16.7 billion of net long-term
inflows for the quarter, primarily driven by ETFs and Index, APAC
Managed, Private Markets, and Fundamental Fixed Income
- Ending AUM grew 12% year-over-year to a record high of
$1.7 trillion; an increase of 3.2%
from the prior quarter
- 13.9% operating margin; 30.9% adjusted operating
margin(1)
- Net debt(2) of $11.6
million, a zero balance on our credit facility, and cash and
cash equivalents of $878.5
million
Update from Andrew
Schlossberg, President and CEO
"Outsized annualized organic growth of nearly 6% was led by
our global ETF platform, strong net long-term inflows in
Asia Pacific and further inflows
to our Private Markets and Fundamental Fixed Income capabilities
this quarter, driving total assets under management to a record
$1.7 trillion. We are seeing more
success as we execute on our strategic priorities and focus on
significant market opportunities that leverage our distinctive
global position as a diversified, scaled, client-centric asset
manager. We will continue to innovate and leverage the full suite
of Invesco products and investment capabilities to expand our
current relationships and win new ones, which we expect will enable
us to generate profitable growth and gain market share."
"We continue to simplify Invesco to improve both efficiency and
agility in our operations and maintain financial discipline. We
have strengthened the balance sheet through deleveraging, are close
to operating with zero net debt, and plan to execute share buybacks
beginning in the third quarter."
|
|
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
(2)
|
Net debt: Debt less
Cash and cash equivalents
|
Net Flows:
Net long-term inflows were $16.7
billion for the second quarter of 2024 as compared to
$6.3 billion of net long-term
inflows in the first quarter.
Retail and Institutional net long-term inflows were $12.1 billion and $4.6
billion, respectively. Net long-term flows by investment
capability include net long-term inflows from ETFs and Index of
$12.8 billion, APAC Managed of
$6.7 billion, Private Markets of
$2.6 billion and Fundamental Fixed
Income of $1.6 billion, partially
offset by net long-term outflows from Fundamental Equities of
$6.3 billion and Multi-Asset/Other of
$0.7 billion. On a geographic basis,
the Asia Pacific, EMEA and
Americas regions achieved net long-term inflows of $10.2 billion, $3.9
billion, and $2.6 billion,
respectively.
Net market gains increased AUM in the second quarter by
$27.4 billion while foreign exchange
rate movements decreased AUM by $3.9
billion. We had inflows of $6.6
billion from non-management fee earning products and
$4.9 billion from money market funds.
Ending AUM increased 3.2% and average AUM increased 3.5% during the
second quarter.
Summary of net flows
(in billions)
|
|
Q2-24
|
|
Q1-24
|
|
Q2-23
|
Active
|
|
$2.3
|
|
$(7.1)
|
|
$(8.4)
|
Passive
|
|
14.4
|
|
13.4
|
|
6.4
|
Net long-term
flows
|
|
16.7
|
|
6.3
|
|
(2.0)
|
Non-management fee
earning AUM
|
|
6.6
|
|
9.5
|
|
1.1
|
Money market
|
|
4.9
|
|
0.7
|
|
15.4
|
Total net
flows
|
|
$28.2
|
|
16.5
|
|
14.5
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate (1)
|
|
5.6 %
|
|
2.2 %
|
|
(0.7) %
|
|
|
|
|
|
|
|
(1)
|
Annualized long-term
organic growth rate is calculated using net long-term flows
(annualized) divided by average long-term AUM for the period.
Long-term AUM excludes money market and non-management fee earning
AUM.
|
Second Quarter Highlights:
Financial
Results
|
Q2-24
|
|
Q1-24
|
|
Q2-24 vs.
Q1-24
|
|
Q2-23
|
|
Q2-24 vs.
Q2-23
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,483.3m
|
|
$1,475.3m
|
|
0.5 %
|
|
$1,442.8m
|
|
2.8 %
|
Operating
income
|
$206.8m
|
|
$213.1m
|
|
(3.0) %
|
|
$203.8m
|
|
1.5 %
|
Operating
margin
|
13.9 %
|
|
14.4 %
|
|
|
|
14.1 %
|
|
|
Net income attributable
to Invesco Ltd.
|
$132.2m
|
|
$141.5m
|
|
(6.6) %
|
|
$132.2m
|
|
— %
|
Diluted EPS
|
$0.29
|
|
$0.31
|
|
(6.5) %
|
|
$0.29
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures (1)
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$1,085.8m
|
|
$1,053.2m
|
|
3.1 %
|
|
$1,090.7m
|
|
(0.4) %
|
Adjusted operating
income
|
$335.3m
|
|
$296.5m
|
|
13.1 %
|
|
$302.0m
|
|
11.0 %
|
Adjusted operating
margin
|
30.9 %
|
|
28.2 %
|
|
|
|
27.7 %
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$196.2m
|
|
$148.4m
|
|
32.2 %
|
|
$144.4m
|
|
35.9 %
|
Adjusted diluted
EPS
|
$0.43
|
|
$0.33
|
|
30.3 %
|
|
$0.31
|
|
38.7 %
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$1,715.8bn
|
|
$1,662.7bn
|
|
3.2 %
|
|
$1,538.2bn
|
|
11.5 %
|
Average AUM
|
$1,669.3bn
|
|
$1,613.0bn
|
|
3.5 %
|
|
$1,494.9bn
|
|
11.7 %
|
|
|
|
|
|
|
|
|
|
|
Headcount
|
8,536
|
|
8,527
|
|
0.1 %
|
|
8,621
|
|
(1.0) %
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
U.S. GAAP Operating Results:
Second Quarter 2024 compared to First Quarter 2024
Operating revenues and expenses: Operating
revenues increased $8.0 million
in the second quarter of 2024 compared to the first quarter.
Investment management fees increased $17.1 million as a result of higher
average AUM partially offset by the shift in AUM toward lower yield
products. Service and distribution fees decreased $15.4 million due to lower fund-related
service fees compared to the first quarter partially offset by an
increase in fees due to higher average AUM. Performance fees were
$8.7 million for the quarter and were
earned primarily from private markets real estate products. Other
revenues decreased $1.6 million.
Operating expenses increased $14.3 million in the second quarter of 2024
compared to the first quarter. Third-party distribution, service
and advisory costs decreased $8.6 million due to a decrease in
pass-through fund-related Service and distribution costs partially
offset by an increase in costs due to higher AUM. Employee
compensation expense decreased $20.4 million primarily due to a decrease in
expense related to the mark-to-market on deferred compensation
liabilities and lower seasonal payroll taxes partially offset by
higher variable compensation costs. General and administrative
expenses increased $41.9 million
primarily due to the accrual of a $50.0
million liability in the second quarter in connection with a
previously disclosed investigation by the U.S. Securities and
Exchange Commission (SEC) into compliance with electronic business
communications recordkeeping requirements and a separate regulatory
matter, neither of which is expected to have a material impact on
the company. This expense was partially offset by lower
professional fees.
Non-operating income and expenses: Equity in
earnings of unconsolidated affiliates was $13.9 million, earned primarily from our
China joint venture. Other gains
and losses were a net gain of $3.6 million, driven by market value changes
on deferred compensation investments. Other income/(expense) of
consolidated investment products (CIP) was a gain of $40.9 million, primarily driven by market
gains on the underlying investments held by the funds.
The effective tax rate was 24.6% in the second quarter of 2024
as compared to 24.3% in the first quarter.
Diluted earnings per common
share: Diluted earnings per common share was
$0.29 for the second quarter of
2024.
Second Quarter 2024 compared to Second Quarter 2023
Operating revenues and expenses: Operating
revenues increased $40.5 million
compared to the second quarter of 2023. Investment management fees
increased $32.3 million as a
result of higher average AUM partially offset by the shift in
AUM toward lower yield products. Service and distribution fees
increased $19.3 million due to
higher average AUM. Performance fees decreased $10.9 million.
Operating expenses increased $37.5 million in the second quarter of 2024
compared to the second quarter of 2023. Third-party distribution,
service and advisory costs increased $32.9 million due to higher AUM. Employee
compensation expense decreased $23.4 million primarily due to lower costs
related to executive retirements and organizational changes.
General and administrative expenses increased $28.5 million primarily due to the accrual
of a $50.0 million liability in the
second quarter in connection with a previously disclosed
investigation by the SEC into compliance with electronic business
communications recordkeeping requirements and a separate regulatory
matter, neither of which is expected to have a material impact on
the company. This expense was partially offset by lower
professional fees.
The effective tax rate was 24.6% in the second quarter of 2024
as compared to 28.5% in the second quarter of 2023. The decrease in
the effective tax rate in the second quarter of 2024 was primarily
due to the favorable impact of the increase in net income
attributable to non-controlling interests in consolidated
entities.
Adjusted(1) Operating Results:
Second Quarter 2024 compared to First Quarter 2024
Net revenues and adjusted operating expenses: Net
revenues increased $32.6 million
compared to the first quarter primarily due to higher average
AUM and higher performance fees which were partially offset by the
shift in AUM toward lower yield products.
Adjusted operating expenses decreased $6.2 million compared to the first quarter
primarily due to lower General and administrative expenses related
to professional fees.
Adjusted operating income increased $38.8 million compared to the first quarter.
Adjusted operating margin increased to 30.9% from 28.2%.
Non-operating income and expenses: Equity in
earnings of unconsolidated affiliates was a gain of
$24.1 million earned primarily from
our legacy private equity investments. Interest and dividend income
was $13.4 million. Other gains and
losses were a net loss of $4.3
million.
The effective tax rate on adjusted net income was 22.1% in the
second quarter as compared to 24.6% in the first quarter. The
decrease in the effective tax rate was primarily due to unfavorable
discrete tax items in the first quarter related to share-based
compensation and an increase in the valuation allowance for certain
deferred tax assets.
Adjusted diluted earnings per common share was
$0.43 for the second quarter.
Second Quarter 2024 compared to Second Quarter 2023
Net revenues and adjusted operating expenses: After
allowing for foreign exchange rate changes, Net revenues in the
second quarter of 2024 increased $1.5
million compared to the second quarter of
2023, primarily driven by higher average AUM offset by the
shift in AUM toward lower yield products.
Adjusted operating expenses decreased $38.2 million compared to the second quarter of
2023. Employee compensation expense decreased $24.1 million primarily due to lower costs
related to executive retirements and organizational changes.
General and administrative expenses decreased $15.6 million primarily due to lower professional
fees.
Adjusted operating income increased $33.3 million compared to the second quarter of
2023. Adjusted operating margin increased to 30.9% from 27.7% for
the second quarter of 2023.
The effective tax rate on adjusted net income was 22.1% in the
second quarter of 2024 as compared to 24.7% in the second quarter
of 2023. The decrease in the effective tax rate was primarily due
to a decrease in the reserve for uncertain tax positions in the
second quarter of 2024 and the favorable impact of the change in
the mix of income across tax jurisdictions.
|
|
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
Capital Management:
Cash and cash equivalents: $878.5 million at
June 30, 2024 ($895.7 million as
of March 31, 2024).
Debt: $890.1
million at June 30, 2024 ($1,257.5
million at March 31,
2024). The credit facility balance was zero as of
June 30, 2024.
Net Debt(2): $11.6 million
at June 30, 2024 ($361.8 million at March
31, 2024).
|
|
|
(2)
|
Net debt: Debt less
Cash and cash equivalents
|
Common shares outstanding (end of period): 450.0
million
Diluted common shares outstanding (end of
period): 456.5 million
Dividends paid: $93.2 million (common); $59.2 million (preferred)
Common dividends declared: The company is declaring a
second quarter cash dividend of $0.205 per share to holders of common shares. The
dividend is payable on September 4, 2024, to common
shareholders of record at the close of business on August 16,
2024, with an ex-dividend date of August 16, 2024.
Preferred dividends declared: The company is
declaring a preferred cash dividend of $14.75 per share representing the period from
June 1, 2024 through August 31, 2024. The preferred dividend is
payable on September 3, 2024.
About Invesco Ltd.
Invesco is a global independent investment management firm
dedicated to delivering an investment experience that helps
people get more out of life. Our distinctive investment teams
deliver a comprehensive range of active, passive and alternative
investment capabilities. With offices in more than 20
countries, Invesco managed $1.7
trillion in assets on behalf of clients worldwide as of
June 30, 2024. For more information, visit
invesco.com/corporate.
Members of the investment community and general public are
invited to listen to the conference call today, July 23, 2024,
at 9:00 a.m. ET by dialing one of the
following numbers: 1-866-803-2143 for U.S. and Canadian callers or
1-210-795-1098 for international callers, using the Passcode:
Invesco. An audio replay of the conference call will be available
until Thursday, August 8, 2024 by
calling 1-800-839-1248 for U.S. and Canadian callers or
1-203-369-3356 for international callers. A presentation
highlighting the company's performance will be available during a
live Webcast and on Invesco's Website at invesco.com/corporate.
This release, and comments made in the associated conference
call today, may include "forward-looking statements."
Forward-looking statements include information concerning future
results of our operations, expenses, earnings, liquidity, cash
flow, capital expenditures, and assets under management and could
differ materially from events that actually occur in the future due
to known and unknown risks and other important factors, including,
but not limited to, industry or market conditions, geopolitical
events and pandemics or health crises and their respective
potential impact on the company, acquisitions and divestitures,
debt and our ability to obtain additional financing or make
payments, regulatory developments, demand for and pricing of our
products and other aspects of our business or general economic
conditions. In addition, words such as "believes," "expects,"
"anticipates," "intends," "plans," "estimates," "projects,"
"forecasts," and future or conditional verbs such as "will," "may,"
"could," "should," and "would" as well as any other statement that
necessarily depends on future events, are intended to identify
forward-looking statements. None of this information should be
considered in isolation from, or as a substitute for, historical
financial statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. Although we make such
statements based on assumptions that we believe to be reasonable,
there can be no assurance that actual results will not differ
materially from our expectations. We caution investors not to rely
unduly on any forward-looking statements and urge you to carefully
consider the risks described in our most recent Form 10-K and
subsequent Forms 10-Q, filed with the Securities and Exchange
Commission. You may obtain these reports from the SEC's website at
www.sec.gov. We expressly disclaim any obligation to update the
information in any public disclosure if any forward-looking
statement later turns out to be inaccurate.
Investor Relations
Contacts:
|
Greg Ketron
|
404-724-4299
|
|
|
Jennifer
Church
|
404-439-3428
|
|
Media Relations
Contact:
|
Andrea
Raphael
|
212-323-4202
|
|
Invesco
Ltd.
|
U.S. GAAP Condensed
Consolidated Income Statements
|
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q2-24
|
|
Q1-24
|
|
%
Change
|
|
Q2-23
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
$
1,065.8
|
|
$
1,048.7
|
|
1.6 %
|
|
$
1,033.5
|
|
3.1 %
|
Service and
distribution fees
|
361.6
|
|
377.0
|
|
(4.1) %
|
|
342.3
|
|
5.6 %
|
Performance
fees
|
8.7
|
|
0.8
|
|
987.5 %
|
|
19.6
|
|
(55.6) %
|
Other
|
47.2
|
|
48.8
|
|
(3.3) %
|
|
47.4
|
|
(0.4) %
|
Total operating
revenues
|
1,483.3
|
|
1,475.3
|
|
0.5 %
|
|
1,442.8
|
|
2.8 %
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
495.4
|
|
504.0
|
|
(1.7) %
|
|
462.5
|
|
7.1 %
|
Employee
compensation
|
452.3
|
|
472.7
|
|
(4.3) %
|
|
475.7
|
|
(4.9) %
|
Marketing
(1)
|
20.6
|
|
18.1
|
|
13.8 %
|
|
23.1
|
|
(10.8) %
|
Property, office and
technology (1)
|
116.4
|
|
117.6
|
|
(1.0) %
|
|
112.7
|
|
3.3 %
|
General and
administrative (1)
|
180.4
|
|
138.5
|
|
30.3 %
|
|
151.9
|
|
18.8 %
|
Amortization of
intangible assets
|
11.4
|
|
11.3
|
|
0.9 %
|
|
13.1
|
|
(13.0) %
|
Total operating
expenses
|
1,276.5
|
|
1,262.2
|
|
1.1 %
|
|
1,239.0
|
|
3.0 %
|
Operating
income
|
206.8
|
|
213.1
|
|
(3.0) %
|
|
203.8
|
|
1.5 %
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
13.9
|
|
6.9
|
|
101.4 %
|
|
19.2
|
|
(27.6) %
|
Interest and dividend
income
|
11.0
|
|
12.4
|
|
(11.3) %
|
|
7.1
|
|
54.9 %
|
Interest
expense
|
(16.3)
|
|
(15.9)
|
|
2.5 %
|
|
(18.4)
|
|
(11.4) %
|
Other gains/(losses),
net
|
3.6
|
|
35.9
|
|
(90.0) %
|
|
20.9
|
|
(82.8) %
|
Other income/(expense)
of CIP, net
|
40.9
|
|
30.5
|
|
34.1 %
|
|
(2.7)
|
|
N/A
|
Income before income
taxes
|
259.9
|
|
282.9
|
|
(8.1) %
|
|
229.9
|
|
13.0 %
|
Income tax
provision
|
(64.0)
|
|
(68.7)
|
|
(6.8) %
|
|
(65.5)
|
|
(2.3) %
|
Net income
|
195.9
|
|
214.2
|
|
(8.5) %
|
|
164.4
|
|
19.2 %
|
Net (income)/loss
attributable to noncontrolling
interests in consolidated entities
|
(4.5)
|
|
(13.5)
|
|
(66.7) %
|
|
27.0
|
|
N/A
|
Less: Dividends
declared on preferred shares
|
(59.2)
|
|
(59.2)
|
|
— %
|
|
(59.2)
|
|
— %
|
Net income attributable
to Invesco Ltd.
|
$
132.2
|
|
$
141.5
|
|
(6.6) %
|
|
$
132.2
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.29
|
|
$0.31
|
|
(6.5) %
|
|
$0.29
|
|
— %
|
---diluted
|
$0.29
|
|
$0.31
|
|
(6.5) %
|
|
$0.29
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
455.5
|
|
453.2
|
|
0.5 %
|
|
457.9
|
|
(0.5) %
|
---diluted
|
456.1
|
|
453.5
|
|
0.6 %
|
|
458.8
|
|
(0.6) %
|
|
|
(1)
|
Comparative periods
presented reflect reclassification of certain operating expenses to
align with current period presentation. The reclassification had no
impact on our reported Operating revenues, Operating income, Net
income, or any internal performance measure on which management is
compensated.
|
Invesco Ltd.
Non-GAAP Information
and Reconciliations
We utilize the following non-GAAP performance measures: Net
revenues (and by calculation, Net revenue yield on AUM), Adjusted
operating income, Adjusted operating margin, Adjusted net income
attributable to Invesco Ltd., and Adjusted diluted EPS. We believe
the adjusted measures provide valuable insight into our ongoing
operational performance and assist in comparisons to our
competitors. These measures also assist management with the
establishment of operational budgets and forecasts. The most
directly comparable U.S. GAAP measures are Operating revenues (and
by calculation, gross revenue yield on AUM), Operating income,
Operating margin, Net income attributable to Invesco Ltd., and
Diluted EPS.
The following are reconciliations of Operating revenues,
Operating income (and by calculation, operating margin), and Net
income attributable to Invesco Ltd. (and by calculation, diluted
EPS) on a U.S. GAAP basis to a non-GAAP basis of Net revenues,
Adjusted operating income (and by calculation, Adjusted operating
margin), and Adjusted net income attributable to Invesco Ltd. (and
by calculation, Adjusted diluted EPS). In addition, a
reconciliation of Adjusted operating expenses is provided below,
together with reconciliations of the U.S. GAAP Operating expense
lines to provide further analysis of the non-GAAP adjustments.
These non-GAAP measures should not be considered as substitutes for
any U.S. GAAP measures and may not be comparable to other similarly
titled measures of other companies. The tax effect of the
reconciling items is based on the tax jurisdiction attributable to
the transactions. These measures are described more fully in the
company's Forms 10-K and 10-Q. Refer to these public filings for
additional information about the company's non-GAAP performance
measures.
Reconciliation of
Operating revenues to Net revenues:
|
|
(in
millions)
|
Q2-24
|
|
Q1-24
|
|
Q2-23
|
|
Operating revenues,
U.S. GAAP basis
|
$ 1,483.3
|
|
$ 1,475.3
|
|
$ 1,442.8
|
|
Revenue Adjustments
(1)
|
|
|
|
|
|
|
Investment management
fees
|
(203.8)
|
|
(192.3)
|
|
(195.4)
|
|
Service and
distribution fees
|
(253.5)
|
|
(271.8)
|
|
(230.9)
|
|
Other
|
(38.1)
|
|
(39.9)
|
|
(36.2)
|
|
Total Revenue
Adjustments
|
$
(495.4)
|
|
$
(504.0)
|
|
$
(462.5)
|
|
Invesco Great Wall
(2)
|
86.1
|
|
74.7
|
|
97.6
|
|
CIP
(3)
|
11.8
|
|
7.2
|
|
12.8
|
|
Net revenues
|
$ 1,085.8
|
|
$ 1,053.2
|
|
$ 1,090.7
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating income to Adjusted operating income:
|
|
(in
millions)
|
Q2-24
|
|
Q1-24
|
|
Q2-23
|
|
Operating income, U.S.
GAAP basis
|
$ 206.8
|
|
$ 213.1
|
|
$ 203.8
|
|
Invesco Great Wall
(2)
|
44.3
|
|
38.3
|
|
53.6
|
|
CIP
(3)
|
15.7
|
|
12.2
|
|
21.7
|
|
Amortization of
intangible assets (4)
|
11.4
|
|
11.3
|
|
13.1
|
|
Compensation expense
related to market valuation changes in deferred
compensation plans (5)
|
7.1
|
|
21.6
|
|
9.8
|
|
General and
administrative (6)
|
50.0
|
|
—
|
|
—
|
|
Adjusted operating
income
|
$ 335.3
|
|
$ 296.5
|
|
$ 302.0
|
|
|
|
|
|
|
|
|
Operating margin
(7)
|
13.9 %
|
|
14.4 %
|
|
14.1 %
|
|
Adjusted operating
margin (8)
|
30.9 %
|
|
28.2 %
|
|
27.7 %
|
|
Reconciliation of
Net income attributable to Invesco Ltd. to Adjusted net income
attributable to Invesco Ltd.
|
|
(in
millions)
|
Q2-24
|
|
Q1-24
|
|
Q2-23
|
|
Net income attributable
to Invesco Ltd., U.S. GAAP basis
|
$
132.2
|
|
141.5
|
|
$
132.2
|
|
Adjustments (excluding
tax):
|
|
|
|
|
|
|
Amortization of
intangible assets (4)
|
11.4
|
|
11.3
|
|
13.1
|
|
Deferred compensation
plan market valuation changes and dividend
income less compensation expense (5)
|
5.3
|
|
(11.5)
|
|
(6.1)
|
|
General and
administrative (6)
|
50.0
|
|
—
|
|
—
|
|
Total adjustments
excluding tax
|
$
66.7
|
|
$
(0.2)
|
|
$
7.0
|
|
Tax adjustment for
amortization of intangible assets and goodwill
(9)
|
4.4
|
|
4.4
|
|
3.6
|
|
Other tax effects of
adjustments above
|
(7.1)
|
|
2.7
|
|
1.6
|
|
Adjusted net income
attributable to Invesco Ltd. (10)
|
$
196.2
|
|
$
148.4
|
|
$
144.4
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - diluted
|
456.1
|
|
453.5
|
|
458.8
|
|
Diluted EPS
|
$0.29
|
|
$0.31
|
|
$0.29
|
|
Adjusted diluted EPS
(11)
|
$0.43
|
|
$0.33
|
|
$0.31
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses:
|
|
(in
millions)
|
Q2-24
|
|
Q1-24
|
|
Q2-23
|
|
Operating expenses,
U.S. GAAP basis
|
$ 1,276.5
|
|
$ 1,262.2
|
|
$ 1,239.0
|
|
Invesco Great Wall
(2)
|
41.8
|
|
36.4
|
|
44.0
|
|
Third-party
distribution, service and advisory expenses
|
(495.4)
|
|
(504.0)
|
|
(462.5)
|
|
CIP
(3)
|
(3.9)
|
|
(5.0)
|
|
(8.9)
|
|
Amortization of
intangible assets (4)
|
(11.4)
|
|
(11.3)
|
|
(13.1)
|
|
Compensation expense
related to market valuation changes in deferred
compensation plans (5)
|
(7.1)
|
|
(21.6)
|
|
(9.8)
|
|
General and
administrative (6)
|
(50.0)
|
|
—
|
|
—
|
|
Adjusted operating
expenses
|
$
750.5
|
|
$
756.7
|
|
$
788.7
|
|
|
|
|
|
|
|
|
Employee compensation,
U.S. GAAP basis
|
$
452.3
|
|
$
472.7
|
|
$
475.7
|
|
Invesco Great Wall
(2)
|
30.8
|
|
25.7
|
|
34.2
|
|
Compensation expense
related to market valuation changes in deferred
compensation plans (5)
|
(7.1)
|
|
(21.6)
|
|
(9.8)
|
|
Adjusted employee
compensation
|
$
476.0
|
|
$
476.8
|
|
$
500.1
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis (12)
|
$
20.6
|
|
$
18.1
|
|
$
23.1
|
|
Invesco Great Wall
(2)(12)
|
2.2
|
|
2.1
|
|
2.3
|
|
Adjusted marketing
(12)
|
$
22.8
|
|
$
20.2
|
|
$
25.4
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis (12)
|
$
116.4
|
|
$
117.6
|
|
$
112.7
|
|
Invesco Great Wall
(2)(12)
|
4.5
|
|
4.5
|
|
4.1
|
|
Adjusted property,
office and technology (12)
|
$
120.9
|
|
$
122.1
|
|
$
116.8
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis (12)
|
$
180.4
|
|
$
138.5
|
|
$
151.9
|
|
Invesco Great Wall
(2)(12)
|
4.3
|
|
4.1
|
|
3.4
|
|
CIP
(3)
|
(3.9)
|
|
(5.0)
|
|
(8.9)
|
|
Regulatory matters
(6)
|
(50.0)
|
|
—
|
|
—
|
|
Adjusted general and
administrative (12)
|
$
130.8
|
|
$
137.6
|
|
$
146.4
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets, U.S. GAAP basis
|
$
11.4
|
|
$
11.3
|
|
$
13.1
|
|
Amortization of
intangible assets (4)
|
(11.4)
|
|
(11.3)
|
|
(13.1)
|
|
Adjusted amortization
of intangible assets
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Revenue adjustments:
The company calculates Net revenues by reducing Operating revenues
to exclude fees that are passed through to external parties who
perform functions on behalf of, and distribute, the company's
managed funds. The Net revenue presentation assists in identifying
the revenue contribution generated by the company, removing
distortions caused by the differing distribution channel fees and
allowing for a fair comparison with U.S. peer investment managers
and within Invesco's own investment units. Additionally, management
evaluates Net revenue yield on AUM, which is equal to Net revenues
divided by Average AUM during the reporting period, as an indicator
of the basis point Net revenues we receive for each dollar of AUM
we manage.
|
|
|
|
Investment management
fees are adjusted by renewal commissions and certain administrative
fees. Service and distribution fees are primarily adjusted by
distribution fees passed through to broker dealers for certain
share classes and pass through fund-related costs. Other revenues
are primarily adjusted by transaction fees passed through to third
parties.
|
|
|
(2)
|
Invesco Great Wall: The
company reflects 100% of Invesco Great Wall in its Net revenues and
Adjusted operating income (and by calculation, Adjusted operating
margin). The company's non-GAAP operating results reflect the
economics of these holdings on a basis consistent with the
underlying AUM and flows. Adjusted net income is reduced by the
amount of earnings attributable to the 51% noncontrolling
interests.
|
|
|
(3)
|
CIP: The company
believes that the CIP may impact a reader's analysis of our
underlying results of operations and could result in investor
confusion or the production of information about the company by
analysts or external credit rating agencies that is not reflective
of the underlying results of operations and financial condition of
the company. Accordingly, the company believes that it is
appropriate to adjust Operating revenues and Operating income for
the impact of CIP in calculating the respective Net revenues and
Adjusted operating income (and by calculation, Adjusted operating
margin).
|
|
|
(4)
|
Amortization of
intangible assets: The company removes amortization related to
acquired assets in arriving at Adjusted operating income, Adjusted
operating margin and Adjusted diluted EPS, as this will aid
comparability of our results period to period, and aid
comparability with peer companies that may not have similar
acquisition-related charges.
|
|
|
(5)
|
Market movement on
deferred compensation plan liabilities: Certain deferred
compensation plan awards involve a return to the employee linked to
the appreciation (depreciation) of specified investments. The
company economically hedges the exposure to market movements for
these investments. Since these plans are economically hedged, the
company believes it is useful to reflect the offset ultimately
achieved from hedging the market exposure in the calculation of
Adjusted operating income (and by calculation, Adjusted operating
margin) and Adjusted net income (and by calculation, Adjusted
diluted EPS) to produce results that will be more comparable period
to period.
|
|
|
(6)
|
General and
administrative: The company recorded a $50.0 million contingent
liability in the second quarter of 2024 related to two regulatory
matters. Due to the non-recurring nature of this item, the company
removed this expense in arriving at Adjusted operating income,
Adjusted operating margin and Adjusted diluted EPS as this will aid
comparability of our results period to period.
|
|
|
(7)
|
Operating margin is
equal to Operating income divided by Operating revenues.
|
|
|
(8)
|
Adjusted operating
margin is equal to Adjusted operating income divided by Net
revenues.
|
|
|
(9)
|
Tax adjustment for
amortization of intangible assets and goodwill: The company
reflects the tax benefit realized on the tax amortization of
goodwill and intangibles in Adjusted net income. The company
believes it is useful to include this tax benefit in arriving at
the Adjusted diluted EPS measure.
|
|
|
(10)
|
The effective tax rate
on Adjusted net income attributable to Invesco Ltd. is 22.1% (first
quarter 2024: 24.6%; second quarter 2023: 24.7%).
|
|
|
(11)
|
Adjusted diluted EPS is
equal to Adjusted net income attributable to Invesco Ltd. divided
by the weighted average number of common and restricted common
shares outstanding.
|
|
|
(12)
|
Comparative periods
presented reflect reclassification of certain operating expenses to
align with current period presentation. The reclassification had no
impact on our reported Net revenues, Adjusted Operating income,
Adjusted Net income, or any internal performance measure on which
management is compensated.
|
Invesco
Ltd.
|
Assets Under
Management
|
|
|
Three Months
Ended
|
Six Months
Ended
|
(in
billions)
|
June 30,
2024
|
|
March 31,
2024
|
|
%
Change
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
|
%
Change
|
Beginning
Assets
|
$1,662.7
|
|
$1,585.3
|
|
4.9 %
|
|
$1,483.0
|
|
$1,585.3
|
|
$1,409.2
|
|
12.5 %
|
Long-term
inflows
|
97.8
|
|
80.3
|
|
21.8 %
|
|
71.3
|
|
178.1
|
|
150.7
|
|
18.2 %
|
Long-term
outflows
|
(81.1)
|
|
(74.0)
|
|
9.6 %
|
|
(73.3)
|
|
(155.1)
|
|
(149.8)
|
|
3.5 %
|
Net long-term
flows
|
16.7
|
|
6.3
|
|
165.1 %
|
|
(2.0)
|
|
23.0
|
|
0.9
|
|
2,455.6 %
|
Net flows in
non-management fee earning AUM (a)
|
6.6
|
|
9.5
|
|
(30.5) %
|
|
1.1
|
|
16.1
|
|
(0.5)
|
|
N/A
|
Net flows in money
market funds
|
4.9
|
|
0.7
|
|
600.0 %
|
|
15.4
|
|
5.6
|
|
23.1
|
|
(75.8) %
|
Total net
flows
|
28.2
|
|
16.5
|
|
70.9 %
|
|
14.5
|
|
44.7
|
|
23.5
|
|
90.2 %
|
Reinvested
distributions
|
1.4
|
|
1.1
|
|
27.3 %
|
|
1.0
|
|
2.5
|
|
2.0
|
|
25.0 %
|
Market gains and
losses
|
27.4
|
|
68.0
|
|
(59.7) %
|
|
46.5
|
|
95.4
|
|
108.4
|
|
(12.0) %
|
Foreign currency
translation
|
(3.9)
|
|
(8.2)
|
|
(52.4) %
|
|
(6.8)
|
|
(12.1)
|
|
(4.9)
|
|
146.9 %
|
Ending
Assets
|
$1,715.8
|
|
$1,662.7
|
|
3.2 %
|
|
$1,538.2
|
|
$1,715.8
|
|
$1,538.2
|
|
11.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending long-term
AUM
|
$1,221.7
|
|
$1,200.8
|
|
1.7 %
|
|
$1,102.4
|
|
$1,221.7
|
|
$1,102.4
|
|
10.8 %
|
Average long-term
AUM
|
$1,200.5
|
|
$1,164.1
|
|
3.1 %
|
|
$1,085.9
|
|
$1,182.3
|
|
$1,084.5
|
|
9.0 %
|
Average AUM
|
$1,669.3
|
|
$1,613.0
|
|
3.5 %
|
|
$1,494.9
|
|
$1,641.2
|
|
$1,478.9
|
|
11.0 %
|
Average QQQ
AUM
|
$263.8
|
|
$246.2
|
|
7.1 %
|
|
$180.9
|
|
$255.0
|
|
$168.5
|
|
51.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By investment
approach: (in billions)
|
|
Active(c)
|
|
Passive(c)
|
|
Active(c)
|
|
Passive(c)
|
Beginning
Assets
|
|
$995.7
|
|
$667.0
|
|
$985.3
|
|
$600.0
|
Long-term
inflows
|
|
49.7
|
|
48.1
|
|
92.1
|
|
86.0
|
Long-term
outflows
|
|
(47.4)
|
|
(33.7)
|
|
(96.9)
|
|
(58.2)
|
Net long-term
flows
|
|
2.3
|
|
14.4
|
|
(4.8)
|
|
27.8
|
Net flows in
non-management fee earning AUM (a)
|
|
—
|
|
6.6
|
|
—
|
|
16.1
|
Net flows in money
market funds
|
|
4.9
|
|
—
|
|
5.6
|
|
—
|
Total net
flows
|
|
7.2
|
|
21.0
|
|
0.8
|
|
43.9
|
Reinvested
distributions
|
|
1.4
|
|
—
|
|
2.5
|
|
—
|
Market gains and
losses
|
|
2.9
|
|
24.5
|
|
$
25.4
|
|
$
70.0
|
Foreign currency
translation
|
|
(3.9)
|
|
—
|
|
$
(10.7)
|
|
$
(1.4)
|
Ending
Assets
|
|
$1,003.3
|
|
$712.5
|
|
$1,003.3
|
|
$712.5
|
|
|
|
|
|
|
|
|
|
Average AUM
|
|
$994.6
|
|
$674.7
|
|
$987.8
|
|
$653.4
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By channel: (in
billions)
|
|
Retail
|
|
Institutional
|
|
Retail
|
|
Institutional
|
Beginning
Assets
|
|
$1,116.9
|
|
$545.8
|
|
$1,042.0
|
|
$543.3
|
Long-term
inflows
|
|
73.7
|
|
24.1
|
|
133.7
|
|
44.4
|
Long-term
outflows
|
|
(61.6)
|
|
(19.5)
|
|
(115.0)
|
|
(40.1)
|
Net long-term
flows
|
|
12.1
|
|
4.6
|
|
18.7
|
|
4.3
|
Net flows in
non-management fee earning AUM (a)
|
|
6.7
|
|
(0.1)
|
|
15.7
|
|
0.4
|
Net flows in money
market funds
|
|
(0.6)
|
|
5.5
|
|
0.6
|
|
5.0
|
Total net
flows
|
|
18.2
|
|
10.0
|
|
35.0
|
|
9.7
|
Reinvested
distributions
|
|
1.4
|
|
—
|
|
2.5
|
|
—
|
Market gains and
losses
|
|
26.3
|
|
1.1
|
|
86.0
|
|
9.4
|
Foreign currency
translation
|
|
(1.3)
|
|
(2.6)
|
|
(4.0)
|
|
(8.1)
|
Ending
Assets
|
|
$1,161.5
|
|
$554.3
|
|
$1,161.5
|
|
$554.3
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Assets Under
Management (continued)
|
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By client domicile:
(in billions)
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
Beginning
Assets
|
|
$1,199.8
|
|
$237.6
|
|
$225.3
|
|
$1,133.9
|
|
$235.5
|
|
$215.9
|
Long-term
inflows
|
|
50.4
|
|
28.1
|
|
19.3
|
|
89.8
|
|
51.1
|
|
37.2
|
Long-term
outflows
|
|
(47.8)
|
|
(17.9)
|
|
(15.4)
|
|
(85.2)
|
|
(37.6)
|
|
(32.3)
|
Net long-term
flows
|
|
2.6
|
|
10.2
|
|
3.9
|
|
4.6
|
|
13.5
|
|
4.9
|
Net flows in
non-management fee earning AUM (a)
|
|
5.9
|
|
0.2
|
|
0.5
|
|
16.0
|
|
(0.8)
|
|
0.9
|
Net flows in money
market funds
|
|
6.6
|
|
(1.6)
|
|
(0.1)
|
|
6.3
|
|
(0.5)
|
|
(0.2)
|
Total net
flows
|
|
15.1
|
|
8.8
|
|
4.3
|
|
26.9
|
|
12.2
|
|
5.6
|
Reinvested
distributions
|
|
1.3
|
|
—
|
|
0.1
|
|
2.4
|
|
—
|
|
0.1
|
Market gains and
losses
|
|
19.8
|
|
2.4
|
|
5.2
|
|
73.4
|
|
7.6
|
|
14.4
|
Foreign currency
translation
|
|
(0.2)
|
|
(3.4)
|
|
(0.3)
|
|
(0.8)
|
|
(9.9)
|
|
(1.4)
|
Ending
Assets
|
|
$1,235.8
|
|
$245.4
|
|
$234.6
|
|
$1,235.8
|
|
$245.4
|
|
$234.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
By investment
capability (b): (in
billions)
|
|
ETFs and
Index (d)
|
|
Fundamental
Fixed Income (e)
|
|
Fundamental
Equities (f)
|
|
Private
Markets (g)
|
|
APAC
Managed (h)
|
|
Multi-
Asset/Other
(i)
|
|
Global
Liquidity (j)
|
|
QQQ (k)
|
Beginning
Assets
|
|
$398.3
|
|
$272.3
|
|
$273.6
|
|
$127.1
|
|
$107.1
|
|
$60.2
|
|
$164.8
|
|
$259.3
|
Long-term
inflows
|
|
43.4
|
|
16.4
|
|
8.3
|
|
6.6
|
|
21.0
|
|
2.1
|
|
—
|
|
—
|
Long-term
outflows
|
|
(30.6)
|
|
(14.8)
|
|
(14.6)
|
|
(4.0)
|
|
(14.3)
|
|
(2.8)
|
|
—
|
|
—
|
Net long-term
flows
|
|
12.8
|
|
1.6
|
|
(6.3)
|
|
2.6
|
|
6.7
|
|
(0.7)
|
|
—
|
|
—
|
Net flows in
non-management fee
earning AUM (a)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
—
|
|
6.8
|
Net flows in money
market funds
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
6.6
|
|
—
|
Total net
flows
|
|
12.8
|
|
1.6
|
|
(6.3)
|
|
2.6
|
|
5.0
|
|
(0.9)
|
|
6.6
|
|
6.8
|
Reinvested
distributions
|
|
—
|
|
0.5
|
|
0.5
|
|
0.2
|
|
—
|
|
0.1
|
|
0.1
|
|
—
|
Market gains and
losses
|
|
3.8
|
|
0.4
|
|
1.7
|
|
(0.5)
|
|
0.9
|
|
0.5
|
|
0.1
|
|
20.5
|
Foreign currency
translation
|
|
0.2
|
|
(2.2)
|
|
(0.7)
|
|
(0.3)
|
|
(0.6)
|
|
(0.3)
|
|
—
|
|
—
|
Ending
Assets
|
|
$415.1
|
|
$272.6
|
|
$268.8
|
|
$129.1
|
|
$112.4
|
|
$59.6
|
|
$171.6
|
|
$286.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average AUM
|
|
$401.9
|
|
$270.8
|
|
$268.0
|
|
$127.0
|
|
$109.9
|
|
$59.3
|
|
$168.6
|
|
$263.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2024
|
By investment
capability (b): (in
billions)
|
|
ETFs and
Index (d)
|
|
Fundamental
Fixed Income
(e)
|
|
Fundamental
Equities (f)
|
|
Private
Markets
(g)
|
|
APAC
Managed (h)
|
|
Multi-
Asset/Other
(i)
|
|
Global
Liquidity (j)
|
|
QQQ (k)
|
Beginning
Assets
|
|
$362.1
|
|
$272.6
|
|
$260.5
|
|
$129.7
|
|
$108.0
|
|
$57.4
|
|
$165.0
|
|
$230.0
|
Long-term
inflows
|
|
76.4
|
|
32.2
|
|
17.4
|
|
10.4
|
|
37.0
|
|
4.7
|
|
—
|
|
—
|
Long-term
outflows
|
|
(52.4)
|
|
(29.5)
|
|
(29.3)
|
|
(6.8)
|
|
(31.1)
|
|
(6.0)
|
|
—
|
|
—
|
Net long-term
flows
|
|
24.0
|
|
2.7
|
|
(11.9)
|
|
3.6
|
|
5.9
|
|
(1.3)
|
|
—
|
|
—
|
Net flows in
non-management fee earning AUM (a)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
15.9
|
Net flows in money
market funds
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.6)
|
|
—
|
|
6.2
|
|
—
|
Total net
flows
|
|
24.0
|
|
2.7
|
|
(11.9)
|
|
3.6
|
|
5.3
|
|
(1.1)
|
|
6.2
|
|
15.9
|
Reinvested
distributions
|
|
—
|
|
1.0
|
|
0.8
|
|
0.4
|
|
—
|
|
0.1
|
|
0.2
|
|
—
|
Market gains and
losses
|
|
30.0
|
|
1.3
|
|
21.2
|
|
(3.7)
|
|
1.6
|
|
4.0
|
|
0.3
|
|
40.7
|
Foreign currency
translation
|
|
(1.0)
|
|
(5.0)
|
|
(1.8)
|
|
(0.9)
|
|
(2.5)
|
|
(0.8)
|
|
(0.1)
|
|
—
|
Ending
Assets
|
|
$415.1
|
|
$272.6
|
|
$268.8
|
|
$129.1
|
|
$112.4
|
|
$59.6
|
|
$171.6
|
|
$286.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average AUM
|
|
$389.5
|
|
$270.3
|
|
$265.7
|
|
$127.3
|
|
$108.5
|
|
$58.7
|
|
$166.2
|
|
$255.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Assets Under
Management - Active (c)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
(in
billions)
|
June 30,
2024
|
|
March 31,
2024
|
|
%
Change
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
|
%
Change
|
Beginning
Assets
|
$
995.7
|
|
$
985.3
|
|
1.1 %
|
|
$ 1,005.2
|
|
$
985.3
|
|
$ 976.2
|
|
0.9 %
|
Long-term
inflows
|
49.7
|
|
42.4
|
|
17.2 %
|
|
40.1
|
|
92.1
|
|
87.0
|
|
5.9 %
|
Long-term
outflows
|
(47.4)
|
|
(49.5)
|
|
(4.2) %
|
|
(48.5)
|
|
(96.9)
|
|
(97.9)
|
|
(1.0) %
|
Net long-term
flows
|
2.3
|
|
(7.1)
|
|
N/A
|
|
(8.4)
|
|
(4.8)
|
|
(10.9)
|
|
(56.0) %
|
Net flows in money
market funds
|
4.9
|
|
0.7
|
|
600.0 %
|
|
15.4
|
|
5.6
|
|
23.1
|
|
(75.8) %
|
Total net
flows
|
7.2
|
|
(6.4)
|
|
N/A
|
|
7.0
|
|
0.8
|
|
12.2
|
|
(93.4) %
|
Reinvested
distributions
|
1.4
|
|
1.1
|
|
27.3 %
|
|
1.0
|
|
2.5
|
|
2.0
|
|
25.0 %
|
Market gains and
losses
|
2.9
|
|
22.5
|
|
(87.1) %
|
|
9.9
|
|
25.4
|
|
30.8
|
|
(17.5) %
|
Foreign currency
translation
|
(3.9)
|
|
(6.8)
|
|
(42.6) %
|
|
(6.5)
|
|
(10.7)
|
|
(4.6)
|
|
132.6 %
|
Ending
Assets
|
$ 1,003.3
|
|
$
995.7
|
|
0.8 %
|
|
$ 1,016.6
|
|
$ 1,003.3
|
|
$
1,016.6
|
|
(1.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$
798.9
|
|
$
787.8
|
|
1.4 %
|
|
$
788.2
|
|
$
793.3
|
|
$ 788.3
|
|
0.6 %
|
Average AUM
|
$
994.6
|
|
$
980.9
|
|
1.4 %
|
|
$ 1,006.1
|
|
$
987.8
|
|
$
1,004.0
|
|
(1.6) %
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By channel: (in
billions)
|
|
Retail
|
|
Institutional
|
|
Retail
|
|
Institutional
|
Beginning
Assets
|
|
$514.7
|
|
$481.0
|
|
$501.5
|
|
$483.8
|
Long-term
inflows
|
|
27.8
|
|
21.9
|
|
52.7
|
|
39.4
|
Long-term
outflows
|
|
(30.9)
|
|
(16.5)
|
|
(62.8)
|
|
(34.1)
|
Net long-term
flows
|
|
(3.1)
|
|
5.4
|
|
(10.1)
|
|
5.3
|
Net flows in
non-management fee earning AUM (a)
|
|
—
|
|
—
|
|
—
|
|
—
|
Net flows in money
market funds
|
|
(0.6)
|
|
5.5
|
|
0.6
|
|
5.0
|
Total net
flows
|
|
(3.7)
|
|
10.9
|
|
(9.5)
|
|
10.3
|
Reinvested
distributions
|
|
1.4
|
|
—
|
|
2.5
|
|
—
|
Market gains and
losses
|
|
1.8
|
|
1.1
|
|
21.9
|
|
3.5
|
Foreign currency
translation
|
|
(1.0)
|
|
(2.9)
|
|
(3.2)
|
|
(7.5)
|
Ending
Assets
|
|
$513.2
|
|
$490.1
|
|
$513.2
|
|
$490.1
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By client domicile:
(in billions)
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
Beginning
Assets
|
|
$682.8
|
|
$191.3
|
|
$121.6
|
|
$671.4
|
|
$192.0
|
|
$121.9
|
Long-term
inflows
|
|
19.7
|
|
24.0
|
|
6.0
|
|
39.0
|
|
40.7
|
|
12.4
|
Long-term
outflows
|
|
(26.2)
|
|
(14.1)
|
|
(7.1)
|
|
(53.9)
|
|
(28.7)
|
|
(14.3)
|
Net long-term
flows
|
|
(6.5)
|
|
9.9
|
|
(1.1)
|
|
(14.9)
|
|
12.0
|
|
(1.9)
|
Net flows in money
market funds
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Net flows in money
market funds
|
|
6.6
|
|
(1.6)
|
|
(0.1)
|
|
6.3
|
|
(0.5)
|
|
(0.2)
|
Total net
flows
|
|
0.1
|
|
8.3
|
|
(1.2)
|
|
(8.6)
|
|
11.5
|
|
(2.1)
|
Reinvested
distributions
|
|
1.3
|
|
—
|
|
0.1
|
|
2.4
|
|
—
|
|
0.1
|
Market gains and
losses
|
|
0.7
|
|
1.1
|
|
1.1
|
|
20.2
|
|
2.6
|
|
2.6
|
Foreign currency
translation
|
|
(0.1)
|
|
(3.6)
|
|
(0.2)
|
|
(0.6)
|
|
(9.0)
|
|
(1.1)
|
Ending
Assets
|
|
$684.8
|
|
$197.1
|
|
$121.4
|
|
$684.8
|
|
$197.1
|
|
$121.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Assets Under
Management - Passive (c)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
(in
billions)
|
June 30,
2024
|
|
March 31,
2024
|
|
%
Change
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
|
%
Change
|
Beginning
Assets
|
$667.0
|
|
$600.0
|
|
11.2 %
|
|
$477.8
|
|
$600.0
|
|
$433.0
|
|
38.6 %
|
Long-term
inflows
|
48.1
|
|
37.9
|
|
26.9 %
|
|
31.2
|
|
86.0
|
|
63.7
|
|
35.0 %
|
Long-term
outflows
|
(33.7)
|
|
(24.5)
|
|
37.6 %
|
|
(24.8)
|
|
(58.2)
|
|
(51.9)
|
|
12.1 %
|
Net long-term
flows
|
14.4
|
|
13.4
|
|
7.5 %
|
|
6.4
|
|
27.8
|
|
11.8
|
|
135.6 %
|
Net flows in
non-management fee earning AUM (a)
|
6.6
|
|
9.5
|
|
(30.5) %
|
|
1.1
|
|
16.1
|
|
(0.5)
|
|
N/A
|
Total net
flows
|
21.0
|
|
22.9
|
|
(8.3) %
|
|
7.5
|
|
43.9
|
|
11.3
|
|
288.5 %
|
Market gains and
losses
|
24.5
|
|
45.5
|
|
(46.2) %
|
|
36.6
|
|
70.0
|
|
77.6
|
|
(9.8) %
|
Foreign currency
translation
|
—
|
|
(1.4)
|
|
N/A
|
|
(0.3)
|
|
(1.4)
|
|
(0.3)
|
|
366.7 %
|
Ending
Assets
|
$712.5
|
|
$667.0
|
|
6.8 %
|
|
$521.6
|
|
$712.5
|
|
$521.6
|
|
36.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$401.6
|
|
$376.3
|
|
6.7 %
|
|
$297.7
|
|
$389.0
|
|
$296.2
|
|
31.3 %
|
Average AUM
|
$674.7
|
|
$632.1
|
|
6.7 %
|
|
$488.8
|
|
$653.4
|
|
$474.9
|
|
37.6 %
|
Average QQQ
AUM
|
$263.8
|
|
$246.2
|
|
7.1 %
|
|
$180.9
|
|
$255.0
|
|
$168.5
|
|
51.3 %
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By channel: (in
billions)
|
|
Retail
|
|
Institutional
|
|
Retail
|
|
Institutional
|
Beginning
Assets
|
|
$602.2
|
|
$64.8
|
|
$540.5
|
|
$59.5
|
Long-term
inflows
|
|
45.9
|
|
2.2
|
|
81.0
|
|
5.0
|
Long-term
outflows
|
|
(30.7)
|
|
(3.0)
|
|
(52.2)
|
|
(6.0)
|
Net long-term
flows
|
|
15.2
|
|
(0.8)
|
|
28.8
|
|
(1.0)
|
Net flows in
non-management fee earning AUM (a)
|
|
6.7
|
|
(0.1)
|
|
15.7
|
|
0.4
|
Total net
flows
|
|
21.9
|
|
(0.9)
|
|
44.5
|
|
(0.6)
|
Market gains and
losses
|
|
24.5
|
|
—
|
|
64.1
|
|
5.9
|
Foreign currency
translation
|
|
(0.3)
|
|
0.3
|
|
(0.8)
|
|
(0.6)
|
Ending
Assets
|
|
$648.3
|
|
$64.2
|
|
$648.3
|
|
$64.2
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2024
|
|
Six Months Ended
June 30, 2024
|
By client domicile:
(in billions)
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA
|
Beginning
Assets
|
|
$517.0
|
|
$46.3
|
|
$103.7
|
|
$462.5
|
|
$43.5
|
|
$94.0
|
Long-term
inflows
|
|
30.7
|
|
4.1
|
|
13.3
|
|
50.8
|
|
10.4
|
|
24.8
|
Long-term
outflows
|
|
(21.6)
|
|
(3.8)
|
|
(8.3)
|
|
(31.3)
|
|
(8.9)
|
|
(18.0)
|
Net long-term
flows
|
|
9.1
|
|
0.3
|
|
5.0
|
|
19.5
|
|
1.5
|
|
6.8
|
Net flows in
non-management fee earning
AUM (a)
|
|
5.9
|
|
0.2
|
|
0.5
|
|
16.0
|
|
(0.8)
|
|
0.9
|
Total net
flows
|
|
15.0
|
|
0.5
|
|
5.5
|
|
35.5
|
|
0.7
|
|
7.7
|
Market gains and
losses
|
|
19.1
|
|
1.3
|
|
4.1
|
|
53.2
|
|
5.0
|
|
11.8
|
Foreign currency
translation
|
|
(0.1)
|
|
0.2
|
|
(0.1)
|
|
(0.2)
|
|
(0.9)
|
|
(0.3)
|
Ending
Assets
|
|
$551.0
|
|
$48.3
|
|
$113.2
|
|
$551.0
|
|
$48.3
|
|
$113.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco Ltd.
Footnotes to the Assets
Under Management Tables
(a)
|
Non-management fee
earning AUM includes non-management fee earning ETFs, UIT and
product leverage.
|
|
|
(b)
|
Investment capabilities
are descriptive groupings of AUM by investment strategy.
|
|
|
(c)
|
Passive AUM includes
index-based ETFs, unit investment trusts (UITs), non-fee earning
leverage and other passive mandates. Active AUM is total AUM less
Passive AUM.
|
|
|
(d)
|
ETFs and Index includes
ETFs and Indexed Strategies; excludes Invesco QQQ Trust.
|
|
|
(e)
|
Fundamental Fixed
Income includes Fixed Income products, including certain ETFs
managed within this capability.
|
|
|
(f)
|
Fundamental Equities
includes Equity products.
|
|
|
(g)
|
Private Markets
includes Private Credit and Real Estate investments comprised
primarily of Real Estate, CLOs, Private Credit and listed real
assets, including certain ETFs managed within this
capability.
|
|
|
(h)
|
APAC Managed includes
all products managed in the APAC region, including Invesco Great
Wall, APAC managed short term, money market, passive, and
ETFs.
|
|
|
(i)
|
Multi-Asset/Other
includes Global Asset Allocation, Invesco Quantitative Strategies,
Global Targeted Returns, Solutions, Intelliflo, and UITs, including
certain ETFs managed within this capability.
|
|
|
(j)
|
Global Liquidity is
comprised mainly of Money Market funds excluding APAC Money Market
funds.
|
|
|
(k)
|
QQQ includes Invesco
QQQ Trust.
|
Invesco
Ltd.
|
Supplemental
Information (1)
|
|
|
For the three months
ended
June 30,
2024
|
|
For the three months
ended
June 30,
2023
|
Cash flow
information
(in
millions)
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP cash
and cash equivalents,
beginning of period
|
$ 1,425.5
|
|
$ (529.8)
|
|
$
895.7
|
|
$ 1,214.9
|
|
$ (325.9)
|
|
$
889.0
|
Cash flows from
operating activities
|
489.1
|
|
(60.0)
|
|
429.1
|
|
331.3
|
|
145.3
|
|
476.6
|
Cash flows from
investing activities
|
344.7
|
|
(263.1)
|
|
81.6
|
|
(94.7)
|
|
35.1
|
|
(59.6)
|
Cash flows from
financing activities
|
(711.7)
|
|
189.0
|
|
(522.7)
|
|
(171.1)
|
|
(131.5)
|
|
(302.6)
|
Increase/(decrease) in
cash and cash equivalents
|
122.1
|
|
(134.1)
|
|
(12.0)
|
|
65.5
|
|
48.9
|
|
114.4
|
Foreign exchange
movement on cash and cash
equivalents
|
(6.3)
|
|
1.1
|
|
(5.2)
|
|
6.7
|
|
(0.2)
|
|
6.5
|
Cash and cash
equivalents, end of the period
|
$ 1,541.3
|
|
$ (662.8)
|
|
$
878.5
|
|
$ 1,287.1
|
|
$ (277.2)
|
|
$ 1,009.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
June 30,
2024
|
|
For the six months
ended
June 30,
2023
|
Cash flow
information
(in
millions)
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP cash
and cash equivalents,
beginning of period
|
$ 1,931.6
|
|
$ (462.4)
|
|
$
1,469.2
|
|
$ 1,434.1
|
|
$ (199.4)
|
|
$ 1,234.7
|
Cash flows from
operating activities
|
434.7
|
|
(112.3)
|
|
322.4
|
|
232.4
|
|
124.7
|
|
357.1
|
Cash flows from
investing activities
|
57.4
|
|
(26.3)
|
|
31.1
|
|
(49.2)
|
|
(75.7)
|
|
(124.9)
|
Cash flows from
financing activities
|
(860.0)
|
|
(64.9)
|
|
(924.9)
|
|
(349.6)
|
|
(125.6)
|
|
(475.2)
|
Increase/(decrease) in
cash and cash equivalents
|
(367.9)
|
|
(203.5)
|
|
(571.4)
|
|
(166.4)
|
|
(76.6)
|
|
(243.0)
|
Foreign exchange
movement on cash and cash
equivalents
|
(22.4)
|
|
3.1
|
|
(19.3)
|
|
19.4
|
|
(1.2)
|
|
18.2
|
Cash and cash
equivalents, end of the period
|
$ 1,541.3
|
|
$ (662.8)
|
|
$
878.5
|
|
$ 1,287.1
|
|
$ (277.2)
|
|
$ 1,009.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These tables include
non-GAAP presentations. Cash held by CIP is not available for use
by Invesco. Additionally, there is no recourse to Invesco for CIP
debt. The cash flows of CIP do not form part of the company's cash
flow management processes, nor do they form part of the company's
significant liquidity evaluations and decisions. The impact of cash
inflows/outflows from policyholder assets and liabilities are
reflected within cash flows from operating activities as changes in
receivable and/or payables, as applicable.
|
Invesco
Ltd.
|
Supplemental
Information(1)
|
|
|
As of June 30,
2024
|
|
As of December 31,
2023
|
Balance Sheet
information
(in
millions)
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
As
Adjusted
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Impact of
Policyholders
|
|
As
Adjusted
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 878.5
|
|
$
—
|
|
$ 878.5
|
|
$
1,469.2
|
|
$
—
|
|
$
—
|
|
$
1,469.2
|
Investments
|
980.0
|
|
403.5
|
|
1,383.5
|
|
919.1
|
|
527.4
|
|
—
|
|
1,446.5
|
Investments and other
assets of CIP
|
8,135.7
|
|
(8,135.7)
|
|
—
|
|
9,016.0
|
|
(9,016.0)
|
|
—
|
|
—
|
Cash and cash
equivalents of CIP
|
662.8
|
|
(662.8)
|
|
—
|
|
462.4
|
|
(462.4)
|
|
—
|
|
—
|
Assets held for
policyholders (2)
|
—
|
|
—
|
|
—
|
|
393.9
|
|
—
|
|
(393.9)
|
|
—
|
Goodwill and intangible
assets, net
|
14,424.7
|
|
—
|
|
14,424.7
|
|
14,539.6
|
|
—
|
|
—
|
|
14,539.6
|
Other assets
(3)
|
2,085.9
|
|
11.8
|
|
2,097.7
|
|
2,133.6
|
|
18.8
|
|
—
|
|
2,152.4
|
Total assets
|
$ 27,167.6
|
|
$ (8,383.2)
|
|
$ 18,784.4
|
|
$ 28,933.8
|
|
$
(8,932.2)
|
|
$
(393.9)
|
|
$
19,607.7
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt of CIP
|
$
6,671.1
|
|
$ (6,671.1)
|
|
$
—
|
|
$
7,121.8
|
|
$
(7,121.8)
|
|
$
—
|
|
$
—
|
Other liabilities of
CIP
|
531.8
|
|
(531.8)
|
|
—
|
|
492.1
|
|
(492.1)
|
|
—
|
|
—
|
Policyholder payables
(2)
|
—
|
|
—
|
|
—
|
|
393.9
|
|
—
|
|
(393.9)
|
|
—
|
Debt
|
890.1
|
|
—
|
|
890.1
|
|
1,489.5
|
|
—
|
|
—
|
|
1,489.5
|
Other liabilities
(4)
|
3,309.2
|
|
—
|
|
3,309.2
|
|
3,520.5
|
|
—
|
|
—
|
|
3,520.5
|
Total
liabilities
|
$ 11,402.2
|
|
$ (7,202.9)
|
|
$
4,199.3
|
|
$ 13,017.8
|
|
$
(7,613.9)
|
|
$
(393.9)
|
|
$
5,010.0
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
attributable to Invesco Ltd.
|
$ 14,585.0
|
|
$
0.1
|
|
$ 14,585.1
|
|
$ 14,597.6
|
|
$
0.1
|
|
$
—
|
|
$
14,597.7
|
Noncontrolling
interests (5)
|
1,180.4
|
|
(1,180.4)
|
|
—
|
|
1,318.4
|
|
(1,318.4)
|
|
—
|
|
—
|
Total equity
|
15,765.4
|
|
(1,180.3)
|
|
14,585.1
|
|
15,916.0
|
|
(1,318.3)
|
|
—
|
|
14,597.7
|
Total liabilities and
equity
|
$ 27,167.6
|
|
$ (8,383.2)
|
|
$ 18,784.4
|
|
$ 28,933.8
|
|
$
(8,932.2)
|
|
$
(393.9)
|
|
$
19,607.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This table includes
non-GAAP presentations. Assets of CIP are not available for use by
Invesco. Additionally, there is no recourse to Invesco for CIP
debt. Policyholder assets and liabilities are equal and offsetting
and have no impact on Invesco's shareholders' equity.
|
|
|
(2)
|
All policyholder assets
were distributed to customers in January 2024.
|
|
|
(3)
|
Amounts include
Accounts receivable, Property, equipment and software, and Other
assets.
|
|
|
(4)
|
Amounts include Accrued
compensation and benefits, Accounts payable and accrued expenses,
and Deferred tax liabilities.
|
|
|
(5)
|
Amounts include
Redeemable noncontrolling interests in consolidated entities and
Equity attributable to nonredeemable noncontrolling interests in
consolidated entities.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/invesco-reports-results-for-the-three-months-ended-june-30-2024-302203365.html
SOURCE Invesco Ltd.