ATLANTA, Jan. 26, 2017
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the year and three months ended
December 31, 2016.
"In spite of numerous headwinds in the operating environment of
many markets we serve, we delivered strong, long-term investment
performance to clients throughout 2016," said Martin L. Flanagan, president and CEO. "Our
focus on investment performance and our clients contributed to
long-term net inflows of $12.7
billion for the year and helped us return nearly
$1 billion of capital to shareholders
during 2016. For the year ahead, we are very well positioned
to meet the evolving demands and challenges we see in the market,
combining the power of our active and factor-based investment
capabilities to provide outcome-oriented solutions to our
clients. We will continue to take a disciplined approach to
advancing our competitive position, balancing our goals of meeting
client needs, delivering strong value for shareholders and engaging
our employees while positioning our business for the challenges
ahead."
|
2016
|
|
2015
|
|
%
Change
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
Operating
revenues
|
$4,734.4
|
m
|
|
$5,122.9
|
m
|
|
(7.6)
|
%
|
|
|
Operating
income
|
$1,176.4
|
m
|
|
$1,358.4
|
m
|
|
(13.4)
|
%
|
|
|
Operating
margin
|
24.8
|
%
|
|
26.5
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$854.2
|
m
|
|
$968.1
|
m
|
|
(11.8)
|
%
|
|
|
Diluted
EPS
|
$2.06
|
|
|
$2.26
|
|
|
(8.8)
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
Net
revenues
|
$3,393.2
|
m
|
|
$3,643.2
|
m
|
|
(6.9)
|
%
|
|
|
Adjusted operating
income
|
$1,312.8
|
m
|
|
$1,493.7
|
m
|
|
(12.1)
|
%
|
|
|
Adjusted operating
margin
|
38.7
|
%
|
|
41.0
|
%
|
|
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$924.1
|
m
|
|
$1,048.7
|
m
|
|
(11.9)
|
%
|
|
|
Adjusted diluted
EPS
|
$2.23
|
|
|
$2.44
|
|
|
(8.6)
|
%
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
Ending AUM
|
$812.9
|
bn
|
|
$775.6
|
bn
|
|
4.8
|
%
|
|
|
Average
AUM
|
$788.8
|
bn
|
|
$794.7
|
bn
|
|
(0.7)
|
%
|
|
|
|
|
(1)
|
The adjusted financial measures are all non-GAAP
financial measures. See the information on pages 9 through 11 for a
reconciliation to their most directly comparable U.S. GAAP
measures.
|
|
|
Q4-16
|
|
Q3-16
|
|
Q4-16 vs.
Q3-16
|
|
Q4-15
|
|
Q4-16 vs.
Q4-15
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,194.7
|
m
|
|
$1,201.6
|
m
|
|
(0.6)
|
%
|
|
$1,239.7
|
m
|
|
(3.6)
|
%
|
|
|
Operating
income
|
$294.2
|
m
|
|
$306.3
|
m
|
|
(4.0)
|
%
|
|
$303.6
|
m
|
|
(3.1)
|
%
|
|
|
Operating
margin
|
24.6
|
%
|
|
25.5
|
%
|
|
|
|
24.5
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$226.5
|
m
|
|
$241.2
|
m
|
|
(6.1)
|
%
|
|
$201.9
|
m
|
|
12.2
|
%
|
|
|
Diluted
EPS
|
$0.55
|
|
|
$0.58
|
|
|
(5.2)
|
%
|
|
$0.48
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$863.8
|
m
|
|
$854.7
|
m
|
|
1.1
|
%
|
|
$886.1
|
m
|
|
(2.5)
|
%
|
|
|
Adjusted operating
income
|
$336.0
|
m
|
|
$339.3
|
m
|
|
(1.0)
|
%
|
|
$355.7
|
m
|
|
(5.5)
|
%
|
|
|
Adjusted operating
margin
|
38.9
|
%
|
|
39.7
|
%
|
|
|
|
40.1
|
%
|
|
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$240.1
|
m
|
|
$246.2
|
m
|
|
(2.5)
|
%
|
|
$243.8
|
m
|
|
(1.5)
|
%
|
|
|
Adjusted diluted
EPS
|
$0.59
|
|
|
$0.60
|
|
|
(1.7)
|
%
|
|
$0.58
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$812.9
|
bn
|
|
$820.2
|
bn
|
|
(0.9)
|
%
|
|
$775.6
|
bn
|
|
4.8
|
%
|
|
|
Average
AUM
|
$809.0
|
bn
|
|
$814.1
|
bn
|
|
(0.6)
|
%
|
|
$783.7
|
bn
|
|
3.2
|
%
|
|
|
|
|
(1)
|
The adjusted financial measures are all non-GAAP
financial measures. See the information on pages 9 through 11 for a reconciliation to
their most directly comparable U.S. GAAP
measures.
|
|
Assets Under Management
Total assets under management (AUM) at December 31, 2016,
were $812.9 billion
(September 30, 2016: $820.2
billion), a decrease of $7.3
billion during the fourth quarter. Total net inflows were
$1.1 billion for the fourth quarter,
as detailed below:
|
|
Quarter
|
|
Year
|
|
Summary of net
flows (in billions)
|
|
Q4-16
|
|
Q3-16
|
|
Q4-15
|
|
2016
|
|
2015
|
|
Active
|
|
($1.9)
|
|
|
$8.3
|
|
|
$3.5
|
|
|
$6.9
|
|
|
$14.1
|
|
|
Passive
|
|
(0.8)
|
|
|
3.9
|
|
|
0.4
|
|
|
5.8
|
|
|
2.1
|
|
|
Long-term net
flows
|
|
(2.7)
|
|
|
12.2
|
|
|
3.9
|
|
|
12.7
|
|
|
16.2
|
|
|
Invesco PowerShares
QQQ
|
|
2.7
|
|
|
1.1
|
|
|
2.0
|
|
|
(2.6)
|
|
|
(1.8)
|
|
|
Institutional money
market
|
|
1.1
|
|
|
5.9
|
|
|
(1.8)
|
|
|
12.8
|
|
|
(11.9)
|
|
|
Total net
flows
|
|
$1.1
|
|
|
$19.2
|
|
|
$4.1
|
|
|
$22.9
|
|
|
$2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate*
|
|
(1.5%)
|
|
|
7.1
|
%
|
|
2.4
|
%
|
|
1.9
|
%
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Annualized long-term organic growth rate is
calculated using long-term net flows (annualized) divided by
opening long- term AUM for the period. Long-term AUM excludes
institutional money market AUM and PowerShares QQQ
AUM.
|
|
|
Net market gains led to a $37.7
billion increase in AUM during 2016, compared to a
$2.6 billion decrease in 2015.
Foreign exchange rate movements led to a $22.1 billion decrease in AUM during 2016,
compared to a $16.0 billion decrease
in 2015. Average AUM during 2016 were $788.8
billion, compared to $794.7
billion for 2015, a decrease of 0.7%.
Net market gains led to a $6.4
billion increase in AUM during the fourth quarter, compared
to a $23.6 billion increase in the
third quarter 2016. Foreign exchange rate movements led to a
$14.8 billion decrease in AUM during
the fourth quarter, compared to a $2.2
billion decrease in the third quarter 2016. Average AUM
during the fourth quarter were $809.0
billion, compared to $814.1
billion for the third quarter 2016, a decrease of 0.6%.
Further analysis is included in the supplementary schedules to this
release.
Operating Results - year ended December 31, 2016
This section discusses the company's full year 2016 results, as
compared to 2015, and comments on significant items that have
impacted the company's results as presented in accordance with U.S.
GAAP.
Operating revenues decreased $388.5
million (7.6%) to $4,734.4
million in 2016, from $5,122.9
million in 2015, primarily due to decreased investment
management fees. Investment management fees decreased by
$288.0 million (7.1%) to $3,773.1 million in 2016, from $4,061.1 million in 2015 due to lower average AUM
along with the impact of changes in the AUM product and currency
mix. Foreign exchange rate changes decreased operating revenues by
$136.8 million compared to 2015. The
average Pound Sterling exchange rate for 2016 was 1.3556 compared
to 1.5282 for 2015, an 11.3% decline. Performance fees decreased
$41.6 million (48.4%) to $44.3 million in 2016 from $85.9 million in 2015.
Operating expenses decreased $206.5
million (5.5%) to $3,558.0
million in 2016, from $3,764.5
million in 2015. Third-party distribution, service and
advisory expenses comprise $172.7
million of the decrease consistent with the related revenue
decline. Foreign exchange rate changes decreased 2016 operating
expenses by $83.2 million when
compared to 2015. Business optimization charges increased to
$49.9 million in 2016, compared to
$16.2 million in 2015. As of the end
of 2016, this initiative has produced annualized run-rate expense
savings of $20.8 million. These
savings have helped offset acquisition-related increases in
operating expenses.
Non-operating income and expense includes a decrease in equity
in earnings of unconsolidated affiliates of $25.8 million from $35.1
million in 2015 to $9.3
million in 2016. The decrease in equity in earnings includes
the $17.8 million impairment charge
on our Indian asset management joint venture in the first quarter
of 2016 related to the weakening of the Indian Rupee against the
U.S. Dollar, prior to the company's acquisition of the remaining
51% interest in the joint venture. Interest expense increased in
2016 to $93.4 million from
$81.7 million in 2015, related to the
senior note issuance in late 2015. Other gains and losses, net was
a gain of $22.9 million in 2016
compared to a loss of $1.5 million in
2015. 2016 includes net gains of $22.0
million related to foreign currency hedges, as compared to
losses of $7.7 million in 2015. The
capital management discussion below includes details of our foreign
currency hedges. Also included in non-operating income is other
income of CIP, net of $79.2 million
in 2016 as compared to $27.1 million
in 2015.
Operating Results - fourth quarter ended December 31, 2016
This section discusses the company's fourth quarter 2016
results, as compared to the third quarter 2016, and comments on
significant items that have impacted the company's results as
presented in accordance with U.S. GAAP.
Operating revenues decreased 0.6% to $1,194.7 million in the fourth quarter, from
$1,201.6 million in the third quarter
2016. The change was primarily due to decreased investment
management fees, offset by higher performance fees. Foreign
exchange rate changes decreased operating revenues by $20.9 million compared to the third quarter
2016.
Investment management fees decreased by $19.0 million (2.0%) to $946.9 million in the fourth quarter, from
$965.9 million in the third quarter
2016. Foreign exchange rate changes decreased fourth quarter
investment management fees by $20.0
million when compared to third quarter 2016. The average
Pound Sterling exchange rate for the fourth quarter was 1.2419
compared to 1.3136 for the third quarter of 2016, a 5.5%
decline.
Service and distribution fees decreased $4.3 million (2.0%) to $209.1 million in the fourth quarter, from
$213.4 million in the third quarter
2016, reflecting the lower average AUM for products that receive
these fees. Foreign exchange rate changes decreased fourth quarter
service and distribution fees by $0.2
million when compared to third quarter 2016.
Performance fees were $17.5
million in the fourth quarter, compared to $3.4 million in the third quarter 2016.
Performance fees recorded in the fourth quarter arose primarily
from global asset allocation, bank loan, fixed income and real
estate products. Foreign exchange rate changes decreased
fourth quarter performance fees by $0.6 million when compared to the third quarter
2016.
Other revenues increased by $2.3
million (12.2%) to $21.2
million in the fourth quarter, compared to $18.9 million in the third quarter 2016 primarily
due to an increase of $5.3 million in
transaction fees from real estate products, offset by a
$3.8 million decrease in
transactional sales charges from unit investment trust products.
Foreign exchange rate changes decreased other revenues by
$0.1 million in the fourth quarter
compared to the third quarter 2016.
Operating expenses increased $5.2
million (0.6%) to $900.5
million in the fourth quarter, from $895.3 million in the third quarter 2016.
Business optimization charges were $21.0
million in the fourth quarter, compared to $11.7 million in the third quarter. Foreign
exchange rate changes decreased fourth quarter operating expenses
by $13.0 million when compared to the
third quarter 2016.
Third-party distribution, service and advisory expenses
decreased by $12.6 million (3.5%) to
$349.5 million in the fourth quarter,
from $362.1 million in the third
quarter 2016, consistent with the decline in revenues resulting
from the decrease in retail AUM. Foreign exchange rate changes
decreased third-party distribution, service and advisory expenses
by $3.6 million in the fourth quarter
when compared to the third quarter 2016.
Employee compensation expenses decreased by $6.1 million (1.8%) to $339.0 million in the fourth quarter, from
$345.1 million in the third quarter
2016. Fourth quarter compensation costs included an incremental
credit of $8.6 million related to an
employee benefit plan termination. Staff severance costs related to
business optimization were $12.2
million in the fourth quarter compared to $5.8 million in the third quarter. Foreign
exchange rate changes decreased fourth quarter employee
compensation expenses by $5.5 million
when compared to third quarter 2016.
Marketing expenses increased by $8.8
million (33.3%) to $35.2
million in the fourth quarter from $26.4 million in the third quarter 2016
reflecting seasonal increases in advertising, client events and
other marketing costs in support of the business. Foreign exchange
rate changes decreased fourth quarter marketing expenses by
$0.8 million when compared to third
quarter 2016.
Property, office and technology expenses increased $7.1 million (9.1%) to $85.3 million in the fourth quarter, from
$78.2 million in the third quarter
2016. The increase reflects a $3.4
million credit recorded in the third quarter associated with
a vacated leased property. Technology increases include increased
outsourced administration and software costs. Foreign exchange rate
changes decreased fourth quarter property, office and technology
expenses by $1.3 million when
compared to the third quarter 2016.
General and administrative expenses increased $8.0 million (9.6%) to $91.5 million in the fourth quarter, from
$83.5 million in the third quarter
2016. General and administrative expenses for the fourth quarter
included $7.7 million of professional
services fees related to the business optimization initiative
compared to $5.4 million in the third
quarter 2016. Other increases include fund related costs and
travel. Foreign exchange rate changes decreased fourth quarter
general and administrative expenses by $1.8
million when compared to the third quarter 2016.
Equity in earnings of unconsolidated affiliates increased
$5.9 million (107.3%) to $11.4 million in the fourth quarter from
$5.5 million in the third quarter
2016 primarily due to an increase in earnings from our investments
in private equity and other funds. Non-operating other income and
expenses in the fourth quarter also included a $9.8 million consolidated investment product
(CIP) net gain comprised of market-driven gains and losses on
investments held by the consolidated funds and net interest income
of CIP (third quarter 2016: $39.0
million gain).
Other gains and losses, net was a gain in the fourth quarter of
$15.6 million compared to a gain of
$16.2 million in the third quarter.
The components and variances are included in the table below:
|
Summary of Other
gains and losses, net (in millions)
|
|
Q4-16
|
|
Q3-16
|
|
Change
|
|
|
Investment
gains/(losses)
|
|
$1.2
|
|
|
$3.3
|
|
|
($2.1)
|
|
|
|
Market valuation
gains/(losses) in deferred compensation plan investments
|
|
2.0
|
|
|
7.3
|
|
|
(5.3)
|
|
|
|
Market valuation
gains/(losses) on acquisition-related contingent
consideration
|
|
(1.1)
|
|
|
5.3
|
|
|
(6.4)
|
|
|
|
Market valuation
gains/(losses) on foreign exchange hedge contracts
|
|
12.0
|
|
|
0.9
|
|
|
11.1
|
|
|
|
Foreign exchange
gains/(losses) on intercompany loans
|
|
1.5
|
|
|
(0.6)
|
|
|
2.1
|
|
|
|
|
$15.6
|
|
|
$16.2
|
|
|
($0.6)
|
|
|
|
|
|
|
|
|
|
|
The acquisition-related contingent consideration gains and
losses relate to the investment management contracts acquired from
Deutsche Bank in the first quarter of 2015. The foreign exchange
hedge contract gains and losses reflect the mark to market of all
the open put option contracts. Further details of these foreign
exchange hedge contracts are given below in the capital management
section.
The effective tax rate increased to 29.9% for the fourth quarter
from 26.0% for the third quarter 2016. The impact of the inclusion
of noncontrolling interests in CIP increased our effective tax rate
by 0.8% for the fourth quarter, compared to a decrease of 1.1% for
the third quarter 2016. The remainder of the rate increase reflects
changes in our profit mix resulting from foreign exchange rate
movements and gains from our foreign currency hedge contracts.
Capital Management
As of December 31, 2016, the company's cash and cash
equivalents were $1,328.0 million,
with long-term debt of $2,102.4
million. The credit facility balance was $28.7 million at December 31, 2016.
Dividends paid in the fourth quarter were $114.1 million bringing total 2016 full-year cash
dividends to $460.4 million. Today
the company is announcing a fourth-quarter cash dividend of
28.0 cents per share to holders of
common shares. The dividend is payable on March 3, 2017, to
shareholders of record at the close of business on
February 16, 2017, with an ex-dividend date of
February 14, 2017.
During the fourth quarter the company repurchased $150.0 million of its common shares, representing
4.8 million shares at a weighted average share price of
$31.43. Year-to-date repurchases
total $535.0 million representing
18.1 million shares. This brings total shareholder return of
capital, including dividends, for the year to $995.4 million.
In early January 2017 the company
received $7.8 million from the fourth
quarter's Pound Sterling - U.S. Dollar hedge contract ($4.9 million received in October from the third
quarter's Pound Sterling - U.S. Dollar hedge contract). As
previously disclosed, during the third quarter the company entered
into put option contracts to hedge 75% of the Pound Sterling-based
operating income and 75% of the Euro-based operating income through
the end of 2017. These put option contracts are set at a strike
level of $1.2496 (Pound Sterling) and
$1.0719 (Euro).
Headcount
As of December 31, 2016, the company had 6,790 employees,
compared to 6,812 employees as of September 30, 2016, and
6,490 at December 31, 2015.
Invesco is an independent investment management firm dedicated
to delivering an investment experience that helps people get more
out of life. NYSE: IVZ; www.invesco.com.
Members of the investment community and general public are
invited to listen to the conference call today, January 26,
2017, 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. An audio
replay of the conference call will be available until February 9, 2017 at 5:00
p.m. ET by calling 1-866-421-5864 for U.S. and Canadian
callers or 1-203-369-0809 for international callers. A presentation
highlighting the company's performance will be available during a
live Webcast and on Invesco's Website at www.invesco.com.
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
and capital expenditures, industry or market conditions, assets
under management, 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.
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.
|
Invesco
Ltd.
|
|
U.S. GAAP
Condensed Consolidated Income Statements
|
|
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q4-16
|
|
Q3-16
|
|
%
Change
|
|
Q4-15
|
|
%
Change
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$946.9
|
|
|
$965.9
|
|
|
(2.0)
|
%
|
|
$987.1
|
|
|
(4.1)
|
%
|
|
Service and
distribution fees
|
209.1
|
|
|
213.4
|
|
|
(2.0)
|
%
|
|
207.6
|
|
|
0.7
|
%
|
|
Performance
fees
|
17.5
|
|
|
3.4
|
|
|
414.7
|
%
|
|
16.8
|
|
|
4.2
|
%
|
|
Other
|
21.2
|
|
|
18.9
|
|
|
12.2
|
%
|
|
28.2
|
|
|
(24.8)
|
%
|
|
Total operating
revenues
|
1,194.7
|
|
|
1,201.6
|
|
|
(0.6)
|
%
|
|
1,239.7
|
|
|
(3.6)
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
349.5
|
|
|
362.1
|
|
|
(3.5)
|
%
|
|
375.2
|
|
|
(6.8)
|
%
|
|
Employee
compensation
|
339.0
|
|
|
345.1
|
|
|
(1.8)
|
%
|
|
349.8
|
|
|
(3.1)
|
%
|
|
Marketing
|
35.2
|
|
|
26.4
|
|
|
33.3
|
%
|
|
34.1
|
|
|
3.2
|
%
|
|
Property, office
and technology
|
85.3
|
|
|
78.2
|
|
|
9.1
|
%
|
|
81.3
|
|
|
4.9
|
%
|
|
General and
administrative
|
91.5
|
|
|
83.5
|
|
|
9.6
|
%
|
|
95.7
|
|
|
(4.4)
|
%
|
|
Total operating
expenses
|
900.5
|
|
|
895.3
|
|
|
0.6
|
%
|
|
936.1
|
|
|
(3.8)
|
%
|
|
Operating
income
|
294.2
|
|
|
306.3
|
|
|
(4.0)
|
%
|
|
303.6
|
|
|
(3.1)
|
%
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
11.4
|
|
|
5.5
|
|
|
107.3
|
%
|
|
3.1
|
|
|
267.7
|
%
|
|
Interest and
dividend income
|
3.5
|
|
|
2.6
|
|
|
34.6
|
%
|
|
5.5
|
|
|
(36.4)
|
%
|
|
Interest
expense
|
(23.5)
|
|
|
(23.9)
|
|
|
(1.7)
|
%
|
|
(23.0)
|
|
|
2.2
|
%
|
|
Other gains and
losses, net
|
15.6
|
|
|
16.2
|
|
|
(3.7)
|
%
|
|
3.7
|
|
|
321.6
|
%
|
|
Other
income/(expense) of CIP, net
|
9.8
|
|
|
39.0
|
|
|
(74.9)
|
%
|
|
(12.0)
|
|
|
(181.7)
|
%
|
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
—
|
|
|
N/A
|
|
|
0.8
|
|
|
(100.0)
|
%
|
|
Income before
income taxes
|
311.0
|
|
|
345.7
|
|
|
(10.0)
|
%
|
|
281.7
|
|
|
10.4
|
%
|
|
Income tax
provision
|
(92.9)
|
|
|
(89.8)
|
|
|
3.5
|
%
|
|
(86.9)
|
|
|
6.9
|
%
|
|
Net
income
|
218.1
|
|
|
255.9
|
|
|
(14.8)
|
%
|
|
194.8
|
|
|
12.0
|
%
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
8.4
|
|
|
(14.7)
|
|
|
(157.1)
|
%
|
|
7.1
|
|
|
18.3
|
%
|
|
Net income
attributable to Invesco Ltd.
|
$226.5
|
|
|
$241.2
|
|
|
(6.1)
|
%
|
|
$201.9
|
|
|
12.2
|
%
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.55
|
|
|
$0.58
|
|
|
(5.2)
|
%
|
|
$0.48
|
|
|
14.6
|
%
|
|
---diluted
|
$0.55
|
|
|
$0.58
|
|
|
(5.2)
|
%
|
|
$0.48
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
---basic
|
408.6
|
|
|
412.6
|
|
|
(1.0)
|
%
|
|
422.9
|
|
|
(3.4)
|
%
|
|
---diluted
|
409.0
|
|
|
412.9
|
|
|
(0.9)
|
%
|
|
423.2
|
|
|
(3.4)
|
%
|
|
Invesco
Ltd.
|
|
U.S. GAAP
Condensed Consolidated Income Statements
|
|
(Unaudited, in
millions, other than per share amounts)
|
|
|
Year ended
December 31,
|
|
|
|
2016
|
|
2015
|
|
%
Change
|
|
Operating
revenues:
|
|
|
|
|
|
|
Investment
management fees
|
$3,773.1
|
|
|
$4,061.1
|
|
|
(7.1)%
|
|
|
Service and
distribution fees
|
823.6
|
|
|
855.4
|
|
|
(3.7)%
|
|
|
Performance
fees
|
44.3
|
|
|
85.9
|
|
|
(48.4)%
|
|
|
Other
|
93.4
|
|
|
120.5
|
|
|
(22.5)%
|
|
|
Total operating
revenues
|
4,734.4
|
|
|
5,122.9
|
|
|
(7.6)%
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
1,407.2
|
|
|
1,579.9
|
|
|
(10.9)%
|
|
|
Employee
compensation
|
1,378.8
|
|
|
1,395.5
|
|
|
(1.2)%
|
|
|
Marketing
|
114.8
|
|
|
115.4
|
|
|
(0.5)%
|
|
|
Property, office
and technology
|
325.7
|
|
|
312.0
|
|
|
4.4%
|
|
|
General and
administrative
|
331.5
|
|
|
361.7
|
|
|
(8.3)%
|
|
|
Total operating
expenses
|
3,558.0
|
|
|
3,764.5
|
|
|
(5.5)%
|
|
|
Operating
income
|
1,176.4
|
|
|
1,358.4
|
|
|
(13.4)%
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
9.3
|
|
|
35.1
|
|
|
(73.5)%
|
|
|
Interest and
dividend income
|
12.2
|
|
|
13.0
|
|
|
(6.2)%
|
|
|
Interest
expense
|
(93.4)
|
|
|
(81.7)
|
|
|
14.3%
|
|
|
Other gains and
losses, net
|
22.9
|
|
|
(1.5)
|
|
|
N/A
|
|
|
Other
income/(expense) of CIP, net
|
79.2
|
|
|
27.1
|
|
|
192.3%
|
|
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
11.7
|
|
|
(100.0)%
|
|
|
Income before
income taxes
|
1,206.6
|
|
|
1,362.1
|
|
|
(11.4)%
|
|
|
Income tax
provision
|
(338.3)
|
|
|
(398.0)
|
|
|
(15.0)%
|
|
|
Net
income
|
868.3
|
|
|
964.1
|
|
|
(9.9)%
|
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(14.1)
|
|
|
4.0
|
|
|
N/A
|
|
|
Net income
attributable to Invesco Ltd.
|
$854.2
|
|
|
$968.1
|
|
|
(11.8)%
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
---basic
|
$2.06
|
|
|
$2.26
|
|
|
(8.8)%
|
|
|
---diluted
|
$2.06
|
|
|
$2.26
|
|
|
(8.8)%
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
---basic
|
414.7
|
|
|
428.9
|
|
|
(3.3)%
|
|
|
---diluted
|
415.0
|
|
|
429.3
|
|
|
(3.3)%
|
|
Invesco Ltd.
Non-GAAP Information
and Reconciliations
We are presenting 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 these non-GAAP measures provide greater transparency into
our business on an ongoing operations basis and allow more
appropriate comparisons with industry peers. Management uses these
performance measures to evaluate the business and for internal
management reporting. 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. Non-GAAP measures
should not be considered as substitutes for any measures derived in
accordance with U.S. GAAP and may not be comparable to other
similarly titled measures of other companies.
The following are reconciliations between the presented non-GAAP
measures and the most directly comparable U.S. GAAP measures. 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. 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.
Reconciliation of Operating revenue to Net revenues:
|
|
Quarter
|
|
Year
|
|
|
in
millions
|
|
Q4-16
|
|
Q3-16
|
|
Q4-15
|
|
2016
|
|
2015
|
|
|
Operating revenues,
U.S. GAAP basis
|
|
$
|
1,194.7
|
|
|
$
|
1,201.6
|
|
|
$
|
1,239.7
|
|
|
$
|
4,734.4
|
|
|
$
|
5,122.9
|
|
|
|
Proportional share of
revenues, net of third-party
distribution, service and advisory expenses, from
joint venture investments
|
|
12.6
|
|
|
9.5
|
|
|
11.6
|
|
|
43.7
|
|
|
61.0
|
|
|
|
Third party
distribution, service and advisory expenses
|
|
(349.5)
|
|
|
(362.1)
|
|
|
(375.2)
|
|
|
(1,407.2)
|
|
|
(1,579.9)
|
|
|
|
CIP
|
|
6.0
|
|
|
5.7
|
|
|
10.0
|
|
|
22.3
|
|
|
39.2
|
|
|
|
Net
revenues
|
|
$
|
863.8
|
|
|
$
|
854.7
|
|
|
$
|
886.1
|
|
|
$
|
3,393.2
|
|
|
$
|
3,643.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating income to Adjusted operating
income:
|
|
Quarter
|
|
Year
|
|
|
in
millions
|
|
Q4-16
|
|
Q3-16
|
|
Q4-15
|
|
2016
|
|
2015
|
|
|
Operating income,
U.S. GAAP basis
|
|
$
|
294.2
|
|
|
$
|
306.3
|
|
|
$
|
303.6
|
|
|
$
|
1,176.4
|
|
|
$
|
1,358.4
|
|
|
|
Proportional share of
net operating income from joint
venture investments
|
|
5.4
|
|
|
3.0
|
|
|
4.1
|
|
|
15.9
|
|
|
27.4
|
|
|
|
CIP
|
|
17.6
|
|
|
13.1
|
|
|
11.6
|
|
|
51.0
|
|
|
63.2
|
|
|
|
Business
combinations
|
|
3.8
|
|
|
4.5
|
|
|
3.6
|
|
|
22.3
|
|
|
12.8
|
|
|
|
Compensation expense
related to market valuation changes
in deferred compensation plans
|
|
2.4
|
|
|
4.1
|
|
|
3.5
|
|
|
8.1
|
|
|
4.3
|
|
|
|
Business optimization
expenses
|
|
21.0
|
|
|
11.7
|
|
|
16.2
|
|
|
49.9
|
|
|
16.2
|
|
|
|
Vacated property
lease credit
|
|
0.2
|
|
|
(3.4)
|
|
|
—
|
|
|
(3.2)
|
|
|
(6.4)
|
|
|
|
Employee benefit plan
termination
|
|
(8.6)
|
|
|
—
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
|
Regulatory-related
charges
|
|
—
|
|
|
—
|
|
|
13.1
|
|
|
1.0
|
|
|
13.1
|
|
|
|
Fund reimbursement
settlement costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|
|
Adjusted operating
income
|
|
$
|
336.0
|
|
|
$
|
339.3
|
|
|
$
|
355.7
|
|
|
$
|
1,312.8
|
|
|
$
|
1,493.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
(1)
|
|
24.6
|
%
|
|
25.5
|
%
|
|
24.5
|
%
|
|
24.8
|
%
|
|
26.5
|
%
|
|
|
Adjusted operating
margin (2)
|
|
38.9
|
%
|
|
39.7
|
%
|
|
40.1
|
%
|
|
38.7
|
%
|
|
41.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income attributable to Invesco Ltd. to
Adjusted net income attributable to Invesco Ltd.:
|
|
Quarter
|
|
Year
|
|
|
in
millions
|
|
Q4-16
|
|
Q3-16
|
|
Q4-15
|
|
2016
|
|
2015
|
|
|
Net income
attributable to Invesco Ltd., U.S. GAAP basis
|
|
$
|
226.5
|
|
|
$
|
241.2
|
|
|
$
|
201.9
|
|
|
$
|
854.2
|
|
|
$
|
968.1
|
|
|
|
CIP, eliminated upon
consolidation
|
|
(0.2)
|
|
|
(3.2)
|
|
|
19.4
|
|
|
(3.0)
|
|
|
40.4
|
|
|
|
Business
combinations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the fair
value of contingent consideration
|
|
1.1
|
|
|
(5.3)
|
|
|
(8.7)
|
|
|
7.4
|
|
|
(27.1)
|
|
|
|
Other-than-temporary
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.8
|
|
|
—
|
|
|
|
Other business
combination-related adjustments
|
|
3.8
|
|
|
4.5
|
|
|
3.6
|
|
|
22.3
|
|
|
12.8
|
|
|
|
Deferred compensation
plan market valuation changes and
dividend income less compensation expense
|
|
0.1
|
|
|
(3.5)
|
|
|
(1.6)
|
|
|
(4.0)
|
|
|
9.1
|
|
|
|
Business optimization
expenses
|
|
21.0
|
|
|
11.7
|
|
|
16.2
|
|
|
49.9
|
|
|
16.2
|
|
|
|
Vacated property
lease credit
|
|
0.2
|
|
|
(3.4)
|
|
|
—
|
|
|
(3.2)
|
|
|
(6.4)
|
|
|
|
Employee benefit plan
termination
|
|
(8.6)
|
|
|
—
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
|
Regulatory-related
charges
|
|
—
|
|
|
—
|
|
|
13.1
|
|
|
1.0
|
|
|
13.1
|
|
|
|
Fund reimbursement
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|
|
Foreign exchange
hedge
|
|
(6.6)
|
|
|
2.2
|
|
|
(0.5)
|
|
|
(14.2)
|
|
|
1.0
|
|
|
|
Taxation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation on business
combinations
|
|
4.0
|
|
|
6.2
|
|
|
7.7
|
|
|
12.0
|
|
|
28.3
|
|
|
|
Taxation on deferred
compensation plan market valuation
changes and dividend income less compensation
expense
|
|
—
|
|
|
1.1
|
|
|
0.5
|
|
|
1.5
|
|
|
(3.2)
|
|
|
|
Taxation on business
optimization charges
|
|
(7.0)
|
|
|
(3.7)
|
|
|
(5.1)
|
|
|
(16.2)
|
|
|
(5.1)
|
|
|
|
Taxation on vacated
property lease credit
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
1.3
|
|
|
|
Taxation on employee
benefit plan termination
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
|
Taxation on
regulatory-related charges
|
|
—
|
|
|
(1.4)
|
|
|
(2.7)
|
|
|
(1.8)
|
|
|
(2.7)
|
|
|
|
Taxation on foreign
exchange hedge
|
|
2.5
|
|
|
(0.9)
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
|
Taxation on fund
reimbursement expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.8)
|
|
|
|
Adjusted net income
attributable to Invesco Ltd. (3)
|
|
$
|
240.1
|
|
|
$
|
246.2
|
|
|
$
|
243.8
|
|
|
$
|
924.1
|
|
|
$
|
1,048.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
|
409.0
|
|
|
412.9
|
|
|
423.2
|
|
|
415.0
|
|
|
429.3
|
|
|
|
Diluted
EPS
|
|
$
|
0.55
|
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
2.06
|
|
|
$
|
2.26
|
|
|
|
Adjusted diluted EPS
(4)
|
|
$
|
0.59
|
|
|
$
|
0.60
|
|
|
$
|
0.58
|
|
|
$
|
2.23
|
|
|
$
|
2.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Operating margin is equal to operating income divided
by operating revenues.
|
|
(2)
|
Adjusted operating margin is equal to adjusted
operating income divided by net revenues.
|
|
(3)
|
The effective tax rate on adjusted net income
attributable to Invesco Ltd. is 27.7% (third quarter 2016: 26.5%;
fourth quarter 2015: 26.6%; 2016: 26.8%; 2015: 27.1%). The
rate increase reflects changes in our profit mix resulting from
foreign exchange rate movements and gains from our foreign currency
hedge contracts.
|
|
(4)
|
Adjusted diluted EPS is equal to adjusted net income
attributable to Invesco Ltd. divided by the weighted average number
of common and restricted shares outstanding. There is no
difference between the calculated earnings per share amounts
presented above and the calculated earnings per share amounts under
the two class method.
|
Reconciliation of Operating expenses to Adjusted operating
expenses:
|
|
Quarter
|
|
Year
|
|
|
in
millions
|
|
Q4-16
|
|
Q3-16
|
|
Q4-15
|
|
2016
|
|
2015
|
|
|
Operating expenses,
U.S. GAAP basis
|
|
$
|
900.5
|
|
|
$
|
895.3
|
|
|
$
|
936.1
|
|
|
$
|
3,558.0
|
|
|
$
|
3,764.5
|
|
|
|
Proportional
consolidation of joint ventures
|
|
7.2
|
|
|
6.5
|
|
|
7.5
|
|
|
27.8
|
|
|
33.6
|
|
|
|
Third party
distribution, service and advisory expenses
|
|
(349.5)
|
|
|
(362.1)
|
|
|
(375.2)
|
|
|
(1,407.2)
|
|
|
(1,579.9)
|
|
|
|
CIP
|
|
(11.6)
|
|
|
(7.4)
|
|
|
(1.6)
|
|
|
(28.7)
|
|
|
(24.0)
|
|
|
|
Business
combinations
|
|
(3.8)
|
|
|
(4.5)
|
|
|
(3.6)
|
|
|
(22.3)
|
|
|
(12.8)
|
|
|
|
Compensation expense
related to market valuation changes in
deferred compensation plans
|
|
(2.4)
|
|
|
(4.1)
|
|
|
(3.5)
|
|
|
(8.1)
|
|
|
(4.3)
|
|
|
|
Business
optimization
|
|
(21.0)
|
|
|
(11.7)
|
|
|
(16.2)
|
|
|
(49.9)
|
|
|
(16.2)
|
|
|
|
Vacated property
lease credit
|
|
(0.2)
|
|
|
3.4
|
|
|
—
|
|
|
3.2
|
|
|
6.4
|
|
|
|
Employee benefit plan
termination
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
|
Regulatory-related
charges
|
|
—
|
|
|
—
|
|
|
(13.1)
|
|
|
(1.0)
|
|
|
(13.1)
|
|
|
|
Fund reimbursement
settlement costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7)
|
|
|
|
Adjusted operating
expenses
|
|
$
|
527.8
|
|
|
$
|
515.4
|
|
|
$
|
530.4
|
|
|
$
|
2,080.4
|
|
|
$
|
2,149.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation, U.S. GAAP basis
|
|
$
|
339.0
|
|
|
$
|
345.1
|
|
|
$
|
349.8
|
|
|
$
|
1,378.8
|
|
|
$
|
1,395.5
|
|
|
|
Proportional
consolidation of joint ventures
|
|
5.4
|
|
|
4.7
|
|
|
4.7
|
|
|
19.3
|
|
|
20.8
|
|
|
|
Business
combinations
|
|
(0.5)
|
|
|
(0.8)
|
|
|
—
|
|
|
(7.0)
|
|
|
—
|
|
|
|
Market
appreciation/depreciation of deferred compensation
awards
|
|
(2.4)
|
|
|
(4.1)
|
|
|
(3.5)
|
|
|
(8.1)
|
|
|
(4.3)
|
|
|
|
Business
optimization
|
|
(12.2)
|
|
|
(5.8)
|
|
|
(12.2)
|
|
|
(26.4)
|
|
|
(12.2)
|
|
|
|
Employee benefit plan
termination
|
|
$
|
8.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.6
|
|
|
$
|
—
|
|
|
|
Adjusted employee
compensation
|
|
$
|
337.9
|
|
|
$
|
339.1
|
|
|
$
|
338.8
|
|
|
$
|
1,365.2
|
|
|
$
|
1,399.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis
|
|
$
|
35.2
|
|
|
$
|
26.4
|
|
|
$
|
34.1
|
|
|
$
|
114.8
|
|
|
$
|
115.4
|
|
|
|
Proportional
consolidation of joint ventures
|
|
0.2
|
|
|
0.4
|
|
|
0.5
|
|
|
1.8
|
|
|
3.1
|
|
|
|
Adjusted
marketing
|
|
$
|
35.4
|
|
|
$
|
26.8
|
|
|
$
|
34.6
|
|
|
$
|
116.6
|
|
|
$
|
118.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis
|
|
$
|
85.3
|
|
|
$
|
78.2
|
|
|
$
|
81.3
|
|
|
$
|
325.7
|
|
|
$
|
312.0
|
|
|
|
Proportional
consolidation of joint ventures
|
|
1.0
|
|
|
1.0
|
|
|
1.1
|
|
|
3.8
|
|
|
3.9
|
|
|
|
Business
optimization
|
|
(1.1)
|
|
|
(0.5)
|
|
|
(2.0)
|
|
|
(1.7)
|
|
|
(2.0)
|
|
|
|
Vacated property
lease credit
|
|
(0.2)
|
|
|
3.4
|
|
|
—
|
|
|
3.2
|
|
|
6.4
|
|
|
|
Adjusted property,
office and technology
|
|
$
|
85.0
|
|
|
$
|
82.1
|
|
|
$
|
80.4
|
|
|
$
|
331.0
|
|
|
$
|
320.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis
|
|
$
|
91.5
|
|
|
$
|
83.5
|
|
|
$
|
95.7
|
|
|
$
|
331.5
|
|
|
$
|
361.7
|
|
|
|
Proportional
consolidation of joint ventures
|
|
0.6
|
|
|
0.4
|
|
|
1.2
|
|
|
2.9
|
|
|
5.8
|
|
|
|
Business
combinations
|
|
(3.3)
|
|
|
(3.7)
|
|
|
(3.6)
|
|
|
(15.3)
|
|
|
(12.8)
|
|
|
|
CIP
|
|
(11.6)
|
|
|
(7.4)
|
|
|
(1.6)
|
|
|
(28.7)
|
|
|
(24.0)
|
|
|
|
Business
optimization
|
|
(7.7)
|
|
|
(5.4)
|
|
|
(2.0)
|
|
|
(21.8)
|
|
|
(2.0)
|
|
|
|
Regulatory-related
charges
|
|
—
|
|
|
—
|
|
|
(13.1)
|
|
|
(1.0)
|
|
|
(13.1)
|
|
|
|
Fund reimbursement
settlement costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7)
|
|
|
|
Adjusted general and
administrative
|
|
$
|
69.5
|
|
|
$
|
67.4
|
|
|
$
|
76.6
|
|
|
$
|
267.6
|
|
|
$
|
310.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
|
|
Quarterly Assets
Under Management
|
|
|
(in
billions)
|
Q4-16
|
|
Q3-16
|
|
%
Change
|
|
Q4-15
|
|
Beginning
Assets
|
$820.2
|
|
|
$779.6
|
|
|
5.2
|
%
|
|
$755.8
|
|
|
Long-term
inflows
|
46.2
|
|
|
51.7
|
|
|
(10.6)
|
%
|
|
43.0
|
|
|
Long-term
outflows
|
(48.9)
|
|
|
(39.5)
|
|
|
23.8
|
%
|
|
(39.1)
|
|
|
Long-term net
flows
|
(2.7)
|
|
|
12.2
|
|
|
N/A
|
|
|
3.9
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
|
1.1
|
|
|
145.5
|
%
|
|
2.0
|
|
|
Net flows in
institutional money market funds
|
1.1
|
|
|
5.9
|
|
|
(81.4)
|
%
|
|
(1.8)
|
|
|
Total net
flows
|
1.1
|
|
|
19.2
|
|
|
(94.3)
|
%
|
|
4.1
|
|
|
Market gains and
losses/reinvestment
|
6.4
|
|
|
23.6
|
|
|
(72.9)
|
%
|
|
21.0
|
|
|
Foreign currency
translation
|
(14.8)
|
|
|
(2.2)
|
|
|
572.7
|
%
|
|
(5.3)
|
|
|
Ending
Assets
|
$812.9
|
|
|
$820.2
|
|
|
(0.9)
|
%
|
|
$775.6
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$698.9
|
|
|
$705.9
|
|
|
(1.0)
|
%
|
|
$678.2
|
|
|
Average
AUM
|
$809.0
|
|
|
$814.1
|
|
|
(0.6)
|
%
|
|
$783.7
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
59.8
|
bps
|
|
59.8
|
bps
|
|
|
|
63.8
|
bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
58.9
|
bps
|
|
59.6
|
bps
|
|
|
|
62.9
|
bps
|
|
Net revenue yield
on AUM(b)
|
42.7
|
bps
|
|
42.0
|
bps
|
|
|
|
45.2
|
bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
41.8
|
bps
|
|
41.8
|
bps
|
|
|
|
44.3
|
bps
|
|
By active/passive:
(in billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
|
September 30,
2016
|
$820.2
|
|
|
$676.9
|
|
|
$143.3
|
|
|
Long-term
inflows
|
46.2
|
|
|
35.6
|
|
|
10.6
|
|
|
Long-term
outflows
|
(48.9)
|
|
|
(37.5)
|
|
|
(11.4)
|
|
|
Long-term net
flows
|
(2.7)
|
|
|
(1.9)
|
|
|
(0.8)
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
Net flows in
institutional money market funds
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
Total net
flows
|
1.1
|
|
|
(0.8)
|
|
|
1.9
|
|
|
Market gains and
losses/reinvestment
|
6.4
|
|
|
7.0
|
|
|
(0.6)
|
|
|
Foreign currency
translation
|
(14.8)
|
|
|
(14.6)
|
|
|
(0.2)
|
|
|
December 31,
2016
|
$812.9
|
|
|
$668.5
|
|
|
$144.4
|
|
|
|
|
|
|
|
|
Average
AUM
|
$809.0
|
|
|
$667.0
|
|
|
$142.0
|
|
|
Gross revenue
yield on AUM(a)
|
59.8bps
|
|
69.0bps
|
|
17.1bps
|
|
Net revenue yield
on AUM(b)
|
42.7bps
|
|
48.2bps
|
|
17.1bps
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
September 30,
2016
|
$820.2
|
|
|
$532.1
|
|
|
$288.1
|
|
|
Long-term
inflows
|
46.2
|
|
|
35.6
|
|
|
10.6
|
|
|
Long-term
outflows
|
(48.9)
|
|
|
(39.5)
|
|
|
(9.4)
|
|
|
Long-term net
flows
|
(2.7)
|
|
|
(3.9)
|
|
|
1.2
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
|
2.7
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
Total net
flows
|
1.1
|
|
|
(1.2)
|
|
|
2.3
|
|
|
Market gains and
losses/reinvestment
|
6.4
|
|
|
5.5
|
|
|
0.9
|
|
|
Foreign currency
translation
|
(14.8)
|
|
|
(9.9)
|
|
|
(4.9)
|
|
|
December 31,
2016
|
$812.9
|
|
|
$526.5
|
|
|
$286.4
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these
tables.
|
|
Invesco
Ltd.
|
|
Quarterly Assets
Under Management (continued)
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market (d)
|
|
Alternatives(c)
|
|
September 30,
2016
|
$820.2
|
|
|
$365.3
|
|
|
$207.0
|
|
|
$48.9
|
|
|
$77.2
|
|
|
$121.8
|
|
|
Long-term
inflows
|
46.2
|
|
|
20.1
|
|
|
11.6
|
|
|
2.0
|
|
|
0.8
|
|
|
11.7
|
|
|
Long-term
outflows
|
(48.9)
|
|
|
(27.1)
|
|
|
(10.9)
|
|
|
(2.5)
|
|
|
(0.9)
|
|
|
(7.5)
|
|
|
Long-term net
flows
|
(2.7)
|
|
|
(7.0)
|
|
|
0.7
|
|
|
(0.5)
|
|
|
(0.1)
|
|
|
4.2
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
Total net
flows
|
1.1
|
|
|
(4.3)
|
|
|
0.7
|
|
|
(0.5)
|
|
|
1.0
|
|
|
4.2
|
|
|
Market gains and
losses/reinvestment
|
6.4
|
|
|
8.6
|
|
|
(3.0)
|
|
|
—
|
|
|
0.2
|
|
|
0.6
|
|
|
Foreign currency
translation
|
(14.8)
|
|
|
(5.5)
|
|
|
(3.0)
|
|
|
(1.6)
|
|
|
(0.1)
|
|
|
(4.6)
|
|
|
December 31,
2016
|
$812.9
|
|
|
$364.1
|
|
|
$201.7
|
|
|
$46.8
|
|
|
$78.3
|
|
|
$122.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$809.0
|
|
|
$359.4
|
|
|
$203.6
|
|
|
$47.2
|
|
|
$79.0
|
|
|
$119.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
September 30,
2016
|
$820.2
|
|
|
$537.2
|
|
|
$23.9
|
|
|
$100.7
|
|
|
$75.5
|
|
|
$82.9
|
|
|
Long-term
inflows
|
46.2
|
|
|
25.8
|
|
|
0.9
|
|
|
4.2
|
|
|
7.2
|
|
|
8.1
|
|
|
Long-term
outflows
|
(48.9)
|
|
|
(31.5)
|
|
|
(1.4)
|
|
|
(3.8)
|
|
|
(7.7)
|
|
|
(4.5)
|
|
|
Long-term net
flows
|
(2.7)
|
|
|
(5.7)
|
|
|
(0.5)
|
|
|
0.4
|
|
|
(0.5)
|
|
|
3.6
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
1.1
|
|
|
2.3
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(1.0)
|
|
|
Total net
flows
|
1.1
|
|
|
(0.7)
|
|
|
(0.5)
|
|
|
0.3
|
|
|
(0.6)
|
|
|
2.6
|
|
|
Market gains and
losses/reinvestment
|
6.4
|
|
|
3.0
|
|
|
0.2
|
|
|
1.5
|
|
|
1.2
|
|
|
0.5
|
|
|
Foreign currency
translation
|
(14.8)
|
|
|
—
|
|
|
(0.5)
|
|
|
(4.3)
|
|
|
(4.0)
|
|
|
(6.0)
|
|
|
December 31,
2016
|
$812.9
|
|
|
$539.5
|
|
|
$23.1
|
|
|
$98.2
|
|
|
$72.1
|
|
|
$80.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these
tables.
|
|
Invesco
Ltd.
|
|
Year-to-Date
Assets Under Management
|
|
|
(in
billions)
|
December 31,
2016
|
|
December 31,
2015
|
|
%
Change
|
|
Beginning
Assets
|
$775.6
|
|
|
$792.4
|
|
|
(2.1)
|
%
|
|
Long-term
inflows
|
186.5
|
|
|
189.1
|
|
|
(1.4)
|
%
|
|
Long-term
outflows
|
(173.8)
|
|
|
(172.9)
|
|
|
0.5
|
%
|
|
Long-term net
flows
|
12.7
|
|
|
16.2
|
|
|
(21.6)
|
%
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(1.8)
|
|
|
44.4
|
%
|
|
Net flows in
institutional money market funds
|
12.8
|
|
|
(11.9)
|
|
|
N/A
|
|
|
Total net
flows
|
22.9
|
|
|
2.5
|
|
|
816.0
|
%
|
|
Market gains and
losses/reinvestment
|
37.7
|
|
|
(2.6)
|
|
|
N/A
|
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
(0.7)
|
|
|
71.4
|
%
|
|
Foreign currency
translation
|
(22.1)
|
|
|
(16.0)
|
|
|
38.1
|
%
|
|
Ending
Assets
|
$812.9
|
|
|
$775.6
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$683.9
|
|
|
$688.7
|
|
|
(0.7)
|
%
|
|
Average
AUM
|
$788.8
|
|
|
$794.7
|
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
60.7
|
bps
|
|
65.0
|
bps
|
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
60.2
|
bps
|
|
63.9
|
bps
|
|
|
|
Net revenue yield
on AUM(b)
|
43.0
|
bps
|
|
45.8
|
bps
|
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
42.4
|
bps
|
|
44.6
|
bps
|
|
|
|
By active/passive:
(in billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
|
December 31,
2015
|
$775.6
|
|
|
$636.5
|
|
|
$139.1
|
|
|
Long-term
inflows
|
186.5
|
|
|
141.9
|
|
|
44.6
|
|
|
Long-term
outflows
|
(173.8)
|
|
|
(135.0)
|
|
|
(38.8)
|
|
|
Long-term net
flows
|
12.7
|
|
|
6.9
|
|
|
5.8
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
Net flows in
institutional money market funds
|
12.8
|
|
|
13.1
|
|
|
(0.3)
|
|
|
Total net
flows
|
22.9
|
|
|
20.0
|
|
|
2.9
|
|
|
Market gains and
losses/reinvestment
|
37.7
|
|
|
32.1
|
|
|
5.6
|
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
2.0
|
|
|
(3.2)
|
|
|
Foreign currency
translation
|
(22.1)
|
|
|
(22.1)
|
|
|
—
|
|
|
December 31,
2016
|
$812.9
|
|
|
$668.5
|
|
|
$144.4
|
|
|
|
|
|
|
|
|
Average
AUM
|
$788.8
|
|
|
$653.4
|
|
|
$135.4
|
|
|
Gross revenue
yield on AUM(a)
|
60.7
|
bps
|
|
70.3
|
bps
|
|
15.3
|
bps
|
|
Net revenue yield
on AUM(b)
|
43.0
|
bps
|
|
48.8
|
bps
|
|
15.3
|
bps
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2015
|
$775.6
|
|
|
$514.8
|
|
|
$260.8
|
|
|
Long-term
inflows
|
186.5
|
|
|
143.8
|
|
|
42.7
|
|
|
Long-term
outflows
|
(173.8)
|
|
|
(142.1)
|
|
|
(31.7)
|
|
|
Long-term net
flows
|
12.7
|
|
|
1.7
|
|
|
11.0
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
12.8
|
|
|
—
|
|
|
12.8
|
|
|
Total net
flows
|
22.9
|
|
|
(0.9)
|
|
|
23.8
|
|
|
Market gains and
losses/reinvestment
|
37.7
|
|
|
30.4
|
|
|
7.3
|
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
0.4
|
|
|
(1.6)
|
|
|
Foreign currency
translation
|
(22.1)
|
|
|
(18.2)
|
|
|
(3.9)
|
|
|
December 31,
2016
|
$812.9
|
|
|
$526.5
|
|
|
$286.4
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these
tables.
|
|
Invesco
Ltd.
|
|
Year-to-Date
Assets Under Management (continued)
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market (d)
|
|
Alternatives(c)
|
|
December 31,
2015
|
$775.6
|
|
$370.9
|
|
$187.9
|
|
$48.1
|
|
$64.6
|
|
$104.1
|
|
Long-term
inflows
|
186.5
|
|
80.9
|
|
50.4
|
|
9.8
|
|
4.0
|
|
41.4
|
|
Long-term
outflows
|
(173.8)
|
|
(101.8)
|
|
(35.3)
|
|
(11.5)
|
|
(3.8)
|
|
(21.4)
|
|
Long-term net
flows
|
12.7
|
|
(20.9)
|
|
15.1
|
|
(1.7)
|
|
0.2
|
|
20.0
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
(2.6)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net flows in
institutional money market funds
|
12.8
|
|
—
|
|
—
|
|
—
|
|
12.8
|
|
—
|
|
Total net
flows
|
22.9
|
|
(23.5)
|
|
15.1
|
|
(1.7)
|
|
13.0
|
|
20.0
|
|
Market gains and
losses/reinvestment
|
37.7
|
|
26.6
|
|
4.3
|
|
2.5
|
|
0.5
|
|
3.8
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
0.4
|
|
(1.1)
|
|
—
|
|
0.4
|
|
(0.9)
|
|
Foreign currency
translation
|
(22.1)
|
|
(10.3)
|
|
(4.5)
|
|
(2.1)
|
|
(0.2)
|
|
(5.0)
|
|
December 31,
2016
|
$812.9
|
|
$364.1
|
|
$201.7
|
|
$46.8
|
|
$78.3
|
|
$122.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$788.8
|
|
$356.3
|
|
$196.6
|
|
$47.3
|
|
$74.3
|
|
$114.3
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
December 31,
2015
|
$775.6
|
|
$510.7
|
|
$21.7
|
|
$104.2
|
|
$75.4
|
|
$63.6
|
|
Long-term
inflows
|
186.5
|
|
110.4
|
|
3.5
|
|
15.7
|
|
25.9
|
|
31.0
|
|
Long-term
outflows
|
(173.8)
|
|
(108.3)
|
|
(4.6)
|
|
(16.2)
|
|
(29.2)
|
|
(15.5)
|
|
Long-term net
flows
|
12.7
|
|
2.1
|
|
(1.1)
|
|
(0.5)
|
|
(3.3)
|
|
15.5
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
(2.6)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Net flows in
institutional money market funds
|
12.8
|
|
7.9
|
|
0.4
|
|
3.2
|
|
(0.1)
|
|
1.4
|
|
Total net
flows
|
22.9
|
|
7.4
|
|
(0.7)
|
|
2.7
|
|
(3.4)
|
|
16.9
|
|
Market gains and
losses/reinvestment
|
37.7
|
|
25.1
|
|
1.4
|
|
7.1
|
|
2.7
|
|
1.4
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
(3.6)
|
|
—
|
|
—
|
|
—
|
|
2.4
|
|
Foreign currency
translation
|
(22.1)
|
|
(0.1)
|
|
0.7
|
|
(15.8)
|
|
(2.6)
|
|
(4.3)
|
|
December 31,
2016
|
$812.9
|
|
$539.5
|
|
$23.1
|
|
$98.2
|
|
$72.1
|
|
$80.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
Invesco
Ltd.
|
|
Quarterly Assets
Under Management - Passive(e)
|
|
|
(in
billions)
|
Q4-16
|
|
Q3-16
|
|
%
Change
|
|
Q4-15
|
|
Beginning
Assets
|
$143.3
|
|
$133.5
|
|
7.3%
|
|
$131.7
|
|
Long-term
inflows
|
10.6
|
|
11.8
|
|
(10.2)%
|
|
9.8
|
|
Long-term
outflows
|
(11.4)
|
|
(7.9)
|
|
44.3%
|
|
(9.4)
|
|
Long-term net
flows
|
(0.8)
|
|
3.9
|
|
N/A
|
|
0.4
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
1.1
|
|
145.5%
|
|
2.0
|
|
Net flows in
institutional money market funds
|
—
|
|
(0.1)
|
|
(100.0)%
|
|
0.3
|
|
Total net
flows
|
1.9
|
|
4.9
|
|
(61.2)%
|
|
2.7
|
|
Market gains and
losses/reinvestment
|
(0.6)
|
|
4.9
|
|
N/A
|
|
4.7
|
|
Foreign currency
translation
|
(0.2)
|
|
—
|
|
N/A
|
|
—
|
|
Ending
Assets
|
$144.4
|
|
$143.3
|
|
0.8%
|
|
$139.1
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$101.8
|
|
$102.2
|
|
(0.4)%
|
|
$97.2
|
|
Average
AUM
|
$142.0
|
|
$141.0
|
|
0.7%
|
|
$139.1
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
17.1bps
|
|
15.3bps
|
|
|
|
14.7bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
17.1bps
|
|
15.3bps
|
|
|
|
14.7bps
|
|
Net revenue yield
on AUM(b)
|
17.1bps
|
|
15.3bps
|
|
|
|
14.7bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
17.1bps
|
|
15.3bps
|
|
|
|
14.7bps
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
September 30,
2016
|
$143.3
|
|
$126.2
|
|
$17.1
|
|
Long-term
inflows
|
10.6
|
|
10.6
|
|
—
|
|
Long-term
outflows
|
(11.4)
|
|
(10.1)
|
|
(1.3)
|
|
Long-term net
flows
|
(0.8)
|
|
0.5
|
|
(1.3)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
2.7
|
|
—
|
|
Net flows in
institutional money market funds
|
—
|
|
—
|
|
—
|
|
Total net
flows
|
1.9
|
|
3.2
|
|
(1.3)
|
|
Market gains and
losses/reinvestment
|
(0.6)
|
|
(0.6)
|
|
—
|
|
Foreign currency
translation
|
(0.2)
|
|
—
|
|
(0.2)
|
|
December 31,
2016
|
$144.4
|
|
$128.8
|
|
$15.6
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
|
|
September 30,
2016
|
$143.3
|
|
$91.6
|
|
$42.4
|
|
$—
|
|
$0.1
|
|
$9.2
|
|
|
Long-term
inflows
|
10.6
|
|
6.6
|
|
3.0
|
|
—
|
|
—
|
|
1.0
|
|
|
Long-term
outflows
|
(11.4)
|
|
(8.0)
|
|
(2.4)
|
|
—
|
|
—
|
|
(1.0)
|
|
|
Long-term net
flows
|
(0.8)
|
|
(1.4)
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
2.7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Total net
flows
|
1.9
|
|
1.3
|
|
0.6
|
|
—
|
|
—
|
|
—
|
|
|
Market gains and
losses/reinvestment
|
(0.6)
|
|
0.6
|
|
(1.3)
|
|
—
|
|
(0.1)
|
|
0.2
|
|
|
Foreign currency
translation
|
(0.2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
|
December 31,
2016
|
$144.4
|
|
$93.5
|
|
$41.7
|
|
$—
|
|
$—
|
|
$9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$142.0
|
|
$91.0
|
|
$41.8
|
|
$—
|
|
$—
|
|
$9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
September 30,
2016
|
$143.3
|
|
$138.6
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
$2.3
|
|
|
Long-term
inflows
|
10.6
|
|
10.4
|
|
—
|
|
|
—
|
|
|
0.2
|
|
—
|
|
|
Long-term
outflows
|
(11.4)
|
|
(11.2)
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
—
|
|
|
Long-term net
flows
|
(0.8)
|
|
(0.8)
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
2.7
|
|
2.7
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
Total net
flows
|
1.9
|
|
1.9
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
Market gains and
losses/reinvestment
|
(0.6)
|
|
(0.6)
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
Foreign currency
translation
|
(0.2)
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
(0.2)
|
|
|
December 31,
2016
|
$144.4
|
|
$139.9
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
$2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
Invesco
Ltd.
|
|
Year-to-Date
Assets Under Management - Passive(e)
|
|
|
(in
billions)
|
December 31,
2016
|
|
December 31,
2015
|
|
%
Change
|
|
Beginning
Assets
|
$139.1
|
|
$141.4
|
|
(1.6)%
|
|
Long-term
inflows
|
44.6
|
|
35.5
|
|
25.6%
|
|
Long-term
outflows
|
(38.8)
|
|
(33.4)
|
|
16.2%
|
|
Long-term net
flows
|
5.8
|
|
2.1
|
|
176.2%
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
(1.8)
|
|
44.4%
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
0.4
|
|
N/A
|
|
Total net
flows
|
2.9
|
|
0.7
|
|
314.3%
|
|
Market gains and
losses/reinvestment
|
5.6
|
|
(2.3)
|
|
N/A
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
(0.7)
|
|
357.1%
|
|
Foreign currency
translation
|
—
|
|
—
|
|
N/A
|
|
Ending
Assets
|
$144.4
|
|
$139.1
|
|
3.8%
|
|
|
|
|
|
|
Average long-term
AUM
|
$97.1
|
|
$101.2
|
|
(4.1)%
|
|
Average
AUM
|
$135.4
|
|
$141.1
|
|
(4.0)%
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
15.3bps
|
|
14.5bps
|
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
15.3bps
|
|
14.5bps
|
|
|
|
Net revenue yield
on AUM(b)
|
15.3bps
|
|
14.5bps
|
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
15.3bps
|
|
14.5bps
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2015
|
$139.1
|
|
$118.7
|
|
$20.4
|
|
Long-term
inflows
|
44.6
|
|
42.7
|
|
1.9
|
|
Long-term
outflows
|
(38.8)
|
|
(35.7)
|
|
(3.1)
|
|
Long-term net
flows
|
5.8
|
|
7.0
|
|
(1.2)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
(2.6)
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
—
|
|
(0.3)
|
|
Total net
flows
|
2.9
|
|
4.4
|
|
(1.5)
|
|
Market gains and
losses/reinvestment
|
5.6
|
|
5.7
|
|
(0.1)
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
—
|
|
(3.2)
|
|
Foreign currency
translation
|
—
|
|
—
|
|
—
|
|
December 31,
2016
|
$144.4
|
|
$128.8
|
|
$15.6
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
|
|
December 31,
2015
|
$139.1
|
|
$91.0
|
|
$38.6
|
|
$—
|
|
$0.4
|
|
$9.1
|
|
|
Long-term
inflows
|
44.6
|
|
28.3
|
|
12.7
|
|
—
|
|
—
|
|
3.6
|
|
|
Long-term
outflows
|
(38.8)
|
|
(29.0)
|
|
(6.4)
|
|
—
|
|
—
|
|
(3.4)
|
|
|
Long-term net
flows
|
5.8
|
|
(0.7)
|
|
6.3
|
|
—
|
|
—
|
|
0.2
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
(2.6)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
|
Total net
flows
|
2.9
|
|
(3.3)
|
|
6.3
|
|
—
|
|
(0.3)
|
|
0.2
|
|
|
Market gains and
losses/reinvestment
|
5.6
|
|
5.8
|
|
(0.5)
|
|
—
|
|
(0.1)
|
|
0.4
|
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
—
|
|
(2.7)
|
|
—
|
|
—
|
|
(0.5)
|
|
|
Foreign currency
translation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
December 31,
2016
|
$144.4
|
|
$93.5
|
|
$41.7
|
|
$—
|
|
$—
|
|
$9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$135.4
|
|
$87.4
|
|
$38.9
|
|
$—
|
|
$0.1
|
|
$9.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
|
U.S.
|
|
|
Canada
|
|
|
U.K.
|
|
|
Continental
Europe
|
|
|
Asia
|
|
|
December 31,
2015
|
$139.1
|
|
|
$134.4
|
|
|
$0.4
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.4
|
|
|
Long-term
inflows
|
44.6
|
|
|
43.8
|
|
|
0.3
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
Long-term
outflows
|
(38.8)
|
|
|
(37.9)
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.7)
|
|
|
—
|
|
|
Long-term net
flows
|
5.8
|
|
|
5.9
|
|
|
0.1
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
Total net
flows
|
2.9
|
|
|
3.3
|
|
|
0.1
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.3)
|
|
|
Market gains and
losses/reinvestment
|
5.6
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
December 31,
2016
|
$144.4
|
|
|
$139.9
|
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
Invesco
Ltd.
|
|
Footnotes to the
Assets Under Management Tables
|
|
|
(a)
|
Gross revenue yield
on AUM is equal to annualized total operating revenues divided by
average AUM, excluding China joint venture (JV) AUM. For quarterly
AUM, our share of the average AUM in the fourth quarter for our JVs
in China was $10.1 billion (third quarter 2016: $10.4 billion;
fourth quarter 2015: $6.6 billion). For year-to-date AUM, our share
of the average AUM in the twelve months of 2016 for our JVs in
China was $9.2 billion (twelve months of 2015: $6.1 billion). It is
appropriate to exclude the average AUM of our China JVs for
purposes of computing gross revenue yield on AUM, because the
revenues resulting from these AUM are not presented in our
operating revenues. Under U.S. GAAP, our share of the net income of
the JVs is recorded as equity in earnings of unconsolidated
affiliates on our Condensed Consolidated Statements of Income.
Gross revenue yield, the most comparable U.S. GAAP-based measure to
net revenue yield, is not considered a meaningful effective fee
rate measure. The numerator of the gross revenue yield measure,
operating revenues, excludes the management fees earned from CIP;
however, the denominator of the measure includes the AUM of these
investment products. Therefore, the gross revenue yield measure is
not considered representative of the company's true effective fee
rate from AUM.
|
|
|
|
(b)
|
Net revenue yield on
AUM is equal to annualized net revenues divided by average AUM. See
the reconciliations of U.S. GAAP to Non-GAAP Information on pages 9
through 11 of this release for a reconciliation of operating
revenues to net revenues.
|
|
|
|
(c)
|
The alternatives
asset class includes absolute return, commodities, currencies,
financial structures, global macro, long/short equity, managed
futures, multi-alternatives, private capital - direct, private
capital - fund of funds, private direct real estate, public real
estate securities, senior secured loans and custom
solutions.
|
|
|
|
(d)
|
Long-term AUM
excludes institutional money market AUM and PowerShares QQQ AUM.
Ending AUM as of December 31, 2016 includes $70.9 billion in
institutional money market AUM and $42.0 billion in PowerShares QQQ
AUM (September 30, 2016: $69.2 billion and $39.5 billion,
respectively; December 31, 2015: $58.5 billion and $42.9 billion,
respectively). Ending retail money market AUM as of
December 31, 2016, included in long-term AUM, were $7.4
billion (September 30, 2016: $8.0 billion; December 31, 2015: $6.1
billion).
|
|
|
|
(e)
|
Passive AUM includes
ETFs, UITs, non-fee earning leverage and other passive mandates.
Active AUM are total AUM less Passive AUM.
|
|
Invesco
Ltd.
|
|
Investment
Capabilities Performance Overview
|
|
|
|
Benchmark
Comparison
|
Peer Group
Comparison
|
|
|
% of AUM Ahead of
Benchmark
|
% of AUM In Top Half
of
Peer Group
|
|
Equities
|
|
1yr
|
3yr
|
5yr
|
1yr
|
3yr
|
5yr
|
|
U.S. Core
|
12
|
%
|
0
|
%
|
0
|
%
|
45
|
%
|
5
|
%
|
4
|
%
|
|
U.S.
Growth
|
30
|
%
|
30
|
%
|
38
|
%
|
74
|
%
|
38
|
%
|
38
|
%
|
|
U.S. Value
|
49
|
%
|
55
|
%
|
89
|
%
|
62
|
%
|
56
|
%
|
85
|
%
|
|
Sector
|
12
|
%
|
5
|
%
|
54
|
%
|
18
|
%
|
14
|
%
|
15
|
%
|
|
U.K.
|
5
|
%
|
93
|
%
|
100
|
%
|
12
|
%
|
98
|
%
|
73
|
%
|
|
Canadian
|
65
|
%
|
32
|
%
|
61
|
%
|
16
|
%
|
9
|
%
|
50
|
%
|
|
Asian
|
78
|
%
|
78
|
%
|
95
|
%
|
76
|
%
|
64
|
%
|
80
|
%
|
|
Continental
European
|
60
|
%
|
99
|
%
|
100
|
%
|
50
|
%
|
75
|
%
|
95
|
%
|
|
Global
|
57
|
%
|
48
|
%
|
73
|
%
|
79
|
%
|
69
|
%
|
91
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
84
|
%
|
98
|
%
|
98
|
%
|
13
|
%
|
99
|
%
|
20
|
%
|
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
67
|
%
|
54
|
%
|
58
|
%
|
65
|
%
|
70
|
%
|
33
|
%
|
|
Balanced
|
59
|
%
|
59
|
%
|
45
|
%
|
96
|
%
|
90
|
%
|
94
|
%
|
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
99
|
%
|
68
|
%
|
68
|
%
|
97
|
%
|
97
|
%
|
98
|
%
|
|
U.S. Fixed
Income
|
73
|
%
|
90
|
%
|
95
|
%
|
74
|
%
|
80
|
%
|
86
|
%
|
|
Global Fixed
Income
|
45
|
%
|
48
|
%
|
98
|
%
|
10
|
%
|
20
|
%
|
86
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Note:
|
AUM measured in the
one-, three-, and five-year peer group rankings represents 58%,
57%, and 55% of total Invesco AUM, respectively, and AUM measured
versus benchmark on a one-, three-, and five-year basis represents
70%, 68%, and 64% of total Invesco AUM, respectively, as of
12/31/2016. Peer group rankings are sourced from a widely-used
third party ranking agency in each fund's market (Lipper,
Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value
Research) and are asset-weighted in USD. Rankings are as of prior
quarter-end for most institutional products and preceding month-end
for Australian retail funds due to their late release by third
parties. Rankings for the most representative fund in each GIPS
composite are applied to all products within each GIPS
composite. Excludes passive products, closed-end funds,
private equity limited partnerships, non-discretionary funds, unit
investment trusts, fund of funds with component funds managed by
Invesco, stable value building block funds, and CDOs. Certain funds
and products were excluded from the analysis because of limited
benchmark or peer group data. Had these been available, results may
have been different. These results are preliminary and subject to
revision. Performance assumes the reinvestment of dividends. Past
performance is not indicative of future results and may not reflect
an investor's experience.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/invesco-reports-results-for-the-year-and-three-months-ended-december-31-2016-300397176.html
SOURCE Invesco Ltd.