ATLANTA, April 27, 2017
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the three months ended March 31,
2017.
"Our continued focus on delivering strong investment performance
to clients helped us achieve positive long-term net inflows of
$1.8 billion during the quarter and
an adjusted net income growth of 4.3% quarter over quarter," said
Martin L. Flanagan, president and
CEO of Invesco. "Based on the strong fundamentals in our
business, we're increasing our quarterly dividend to $0.29 per share, which represents a 3.6% increase
over the prior year."
The company also announced that it has entered into a definitive
agreement to acquire Source, a leading, independent specialist
provider of exchange-traded funds (ETFs) based in Europe. The
transaction includes approximately $18
billion in Source-managed AUM, plus approximately
$7 billion of externally managed AUM
(as of March 31, 2017). The
acquisition brings additional talent and a broad array of funds
that further expand the depth and breadth of Invesco's active,
passive and alternative capabilities and expertise, enhancing the
firm's ability to help clients achieve their investment
objectives.
"We're excited about this opportunity to build on Invesco's 40
years of factor investing experience and our existing PowerShares
ETF business, which will significantly enhance our ability to
deliver meaningful solutions to institutional and retail clients in
Europe and around the world," said
Martin L. Flanagan, president and
CEO. "The addition of Source will help us meet increasing
demands from clients who want to work with investment organizations
that can deliver across the full range of investment capabilities
and support the outcomes they seek."
The transaction, deemed not material to the company's financial
position, will be funded with available cash. It is expected
to close in the third quarter of 2017, subject to regulatory
approval.
|
Q1-17
|
|
Q4-16
|
|
Q1-17 vs.
Q4-16
|
|
Q1-16
|
|
Q1-17 vs.
Q1-16
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,192.6
|
m
|
|
$1,194.7
|
m
|
|
(0.2)
|
%
|
|
$1,148.7
|
m
|
|
3.8
|
%
|
|
Operating
income
|
$258.6
|
m
|
|
$294.2
|
m
|
|
(12.1)
|
%
|
|
$274.4
|
m
|
|
(5.8)
|
%
|
|
Operating
margin
|
21.7
|
%
|
|
24.6
|
%
|
|
|
|
23.9
|
%
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$212.0
|
m
|
|
$226.5
|
m
|
|
(6.4)
|
%
|
|
$161.0
|
m
|
|
31.7
|
%
|
|
Diluted
EPS
|
$0.52
|
|
|
$0.55
|
|
|
(5.5)
|
%
|
|
$0.38
|
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$867.1
|
m
|
|
$863.8
|
m
|
|
0.4
|
%
|
|
$818.1
|
m
|
|
6.0
|
%
|
|
Adjusted operating
income
|
$327.1
|
m
|
|
$336.0
|
m
|
|
(2.6)
|
%
|
|
$307.1
|
m
|
|
6.5
|
%
|
|
Adjusted operating
margin
|
37.7
|
%
|
|
38.9
|
%
|
|
|
|
37.5
|
%
|
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$250.5
|
m
|
|
$240.1
|
m
|
|
4.3
|
%
|
|
$204.8
|
m
|
|
22.3
|
%
|
|
Adjusted diluted
EPS
|
$0.61
|
|
|
$0.59
|
|
|
3.4
|
%
|
|
$0.49
|
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$834.8
|
bn
|
|
$812.9
|
bn
|
|
2.7
|
%
|
|
$771.5
|
bn
|
|
8.2
|
%
|
|
Average
AUM
|
$829.8
|
bn
|
|
$809.0
|
bn
|
|
2.6
|
%
|
|
$747.5
|
bn
|
|
11.0
|
%
|
|
|
|
(1)
|
The adjusted
financial measures are all non-GAAP financial measures. See
the information on pages 7 through 9 for a reconciliation to their
most directly comparable U.S. GAAP measures.
|
Assets Under Management
Total assets under management (AUM) at March 31, 2017, were
$834.8 billion (December 31,
2016: $812.9 billion), an increase of
$21.9 billion during the first
quarter. Long-term net inflows were $1.8
billion and total net outflows were $5.3 billion for the first quarter, as detailed
below:
Summary of net
flows (in billions)
|
|
Q1-17
|
|
Q4-16
|
|
Q1-16
|
Active
|
|
($0.5)
|
|
|
($1.9)
|
|
|
$0.5
|
|
Passive
|
|
2.3
|
|
|
(0.8)
|
|
|
(1.8)
|
|
Long-term net
flows
|
|
1.8
|
|
|
(2.7)
|
|
|
(1.3)
|
|
Invesco PowerShares
QQQ
|
|
1.0
|
|
|
2.7
|
|
|
(2.6)
|
|
Institutional money
market
|
|
(8.1)
|
|
|
1.1
|
|
|
3.8
|
|
Total net
flows
|
|
($5.3)
|
|
|
$1.1
|
|
|
($0.1)
|
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate*
|
|
1.0
|
%
|
|
(1.5%)
|
|
|
(0.8%)
|
|
|
|
|
|
|
|
|
|
*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 increases of $23.1 billion in AUM during the first quarter,
compared to net market gains of $6.4
billion in the fourth quarter 2016. Foreign exchange rate
movements led to a $4.1 billion
increase in AUM during the first quarter, compared to a
$14.8 billion decrease in the fourth
quarter 2016. Average AUM during the first quarter were
$829.8 billion, compared to
$809.0 billion for the fourth quarter
2016, an increase of 2.6%. Further analysis is included in the
supplementary schedules to this release.
Operating Results
This section discusses the company's first quarter 2017 results,
as compared to the fourth 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 $2.1
million (0.2%) to $1,192.6
million in the first quarter, from $1,194.7 million in the fourth quarter 2016.
Foreign exchange rate changes decreased first quarter operating
revenues by $0.2 million compared to
the fourth quarter 2016.
Investment management fees increased $8.3
million (0.9%) to $955.2
million in the first quarter, from $946.9 million in the fourth quarter 2016. The
increase reflects the higher average AUM during the first quarter
compared to the fourth quarter 2016, partially offset by fewer days
in the first quarter as compared to fourth quarter 2016.
Service and distribution fees decreased $2.7 million (1.3%) to $206.4 million in the first quarter, from
$209.1 million in the fourth quarter
2016.
Performance fees were $11.3
million in the first quarter, compared to $17.5 million in the fourth quarter 2016.
Performance fees recorded in the first quarter were primarily from
bank loan products, real estate funds and U.K. investment
trusts.
Other revenues decreased by $1.5
million (7.1%) to $19.7
million in the first quarter, compared to $21.2 million in the fourth quarter 2016. Real
estate transaction fees were down $2.6
million, offset by increased UIT revenues of $1.6 million.
Operating expenses increased $33.5
million (3.7%) to $934.0
million in the first quarter, from $900.5 million in the fourth quarter 2016,
primarily related to increased employee compensation costs, offset
by lower marketing and general and administrative expenses.
Business optimization charges were $24.7
million in the first quarter, compared to $21.0 million in the fourth quarter. Total costs
of these initiatives at completion are estimated to be
approximately $128 million, of which
$38 million remains to be incurred
through mid-2018. As of the end of the first quarter 2017,
this initiative has produced annualized run-rate expense savings of
$28 million, and by completion in
mid-2018, the expected annualized run-rate savings will be up to
$50 million. Foreign exchange rate
changes decreased first quarter operating expenses by $0.6 million when compared to the fourth quarter
2016.
Third-party distribution, service and advisory expenses
decreased by $0.2 million (0.1%) to
$349.3 million in the first quarter
from $349.5 million in the fourth
quarter 2016.
Employee compensation expenses increased by $57.8 million (17.1%) to $396.8 million in the first quarter, from
$339.0 million in the fourth quarter
2016. The first quarter included a $22.0
million seasonal increase in payroll tax and employee
benefit costs. The first quarter also reflects a significant
expense for multiple senior executive retirements. The number of
senior executive retirements and magnitude of their retirement
costs incurred in one quarter was unprecedented for
Invesco. These retirements, including, among others, the
former Senior Managing Director of EMEA and the Chairman of our
Private Equity business resulted in additional compensation
expenses of $18.3 million related to
accelerated vesting of deferred compensation and other separation
costs. Staff severance costs related to business optimization were
$15.7 million in the first quarter
compared to $12.2 million in the
fourth quarter. The fourth quarter of 2016 included an incremental
credit of $8.6 million related to an
employee benefit plan termination.
Marketing expenses decreased by $10.8
million (30.7%) to $24.4
million in the first quarter, from $35.2 million in the fourth quarter 2016,
reflecting a seasonal reduction in client events and other
marketing activities.
Property, office and technology expenses increased $0.2 million (0.2%) to $85.5 million in the first quarter, from
$85.3 million in the fourth quarter
2016.
General and administrative expenses decreased $13.5 million (14.8%) to $78.0 million in the first quarter, from
$91.5 million in the fourth quarter
2016 reflecting a $10.8 million
reduction in fund costs incurred by consolidated investment
products.
Equity in earnings of unconsolidated affiliates increased
$6.3 million to $17.7 million in the first quarter from
$11.4 million in the fourth quarter
2016 primarily from an increase in earnings from our real estate
partnerships, offset by lower earnings due to expenses associated
with our China joint venture.
Non-operating other income and expenses in the first quarter also
included a $28.5 million net gain
comprised of market-driven gains and losses of investments held by
consolidated investment products (CIP) and net interest income of
CIP (fourth quarter 2016: $9.8
million gain).
Other gains and losses, net was a gain in the first quarter of
$6.2 million compared to a gain of
$15.6 million in the fourth quarter.
The components and variances are included in the table below:
Summary of Other
gains and losses, net (in millions)
|
|
Q1-17
|
|
Q4-16
|
|
Change
|
Investment
gains/(losses)
|
|
$4.6
|
|
|
$1.2
|
|
|
$3.4
|
|
Market valuation
gains/(losses) in deferred compensation plan investments
|
|
10.0
|
|
|
2.0
|
|
|
8.0
|
|
Market valuation
gains/(losses) on acquisition-related contingent
consideration
|
|
0.5
|
|
|
(1.1)
|
|
|
1.6
|
|
Market valuation
gains/(losses) on foreign exchange hedge contracts
|
|
(8.2)
|
|
|
12.0
|
|
|
(20.2)
|
|
Foreign exchange
gains/(losses) on intercompany loans
|
|
(0.7)
|
|
|
1.5
|
|
|
(2.2)
|
|
|
|
$6.2
|
|
|
$15.6
|
|
|
($9.4)
|
|
|
|
|
|
|
|
|
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 decreased to 26.1% for the first quarter,
from 29.9% for the fourth quarter 2016. The impact of the inclusion
of non-controlling interests in CIP decreased our effective tax
rate by 0.2% for the first quarter, compared to an increase of 0.8%
for the fourth quarter 2016. First quarter 2017 included a 0.4%
rate decrease related to excess tax benefits on share based
compensation for vestings of our annual share awards.
Included in the rate decrease for first quarter were expenses
related to the retirement costs and business optimization costs
discussed above, changes in our profit mix and movement from our
foreign currency hedge contracts.
Capital Management
As of March 31, 2017, the company's cash and cash
equivalents were $1,397.0 million,
with long-term debt of $2,093.6
million. The credit facility balance was $19.4 million at March 31, 2017 and
$28.7 million at December 31,
2016.
Dividends paid in the first quarter were $114.8 million. Today the company is announcing a
first-quarter cash dividend of 29.0
cents, an increase of 3.6%. The dividend is payable on
June 2, 2017, to shareholders of record at the close of
business on May 12, 2017, with an ex-dividend date of
May 10, 2017.
In April 2017 the company received
$7.8 million from the first quarter's
Pound Sterling - U.S. Dollar hedge contract. On March 30, Invesco extended its hedge of
approximately 75% of the GBP-based operating income for each
quarter by a half year, through June 29,
2018. Additionally, on April
18, Invesco extended the hedge through December 31, 2018. This hedge is in the
form of purchased put option contracts set at a strike level of
$1.250 based on the average daily
foreign exchange rate for the applicable time period.
Headcount
As of March 31, 2017, the company had 6,847 employees,
compared to 6,790 employees as of December 31, 2016.
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, April 27,
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 Thursday, May 11, 2017 at 5:00 p.m. ET by calling 1-800-685-0912 for U.S.
and Canadian callers or 1-402-998-0879 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, geopolitical events and their 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.
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)
|
|
|
|
Q1-17
|
|
Q4-16
|
|
%
Change
|
|
Q1-16
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$955.2
|
|
|
$946.9
|
|
|
0.9
|
%
|
|
$913.6
|
|
|
4.6
|
%
|
Service and
distribution fees
|
206.4
|
|
|
209.1
|
|
|
(1.3)
|
%
|
|
197.7
|
|
|
4.4
|
%
|
Performance
fees
|
11.3
|
|
|
17.5
|
|
|
(35.4)
|
%
|
|
14.5
|
|
|
(22.1)
|
%
|
Other
|
19.7
|
|
|
21.2
|
|
|
(7.1)
|
%
|
|
22.9
|
|
|
(14.0)
|
%
|
Total operating
revenues
|
1,192.6
|
|
|
1,194.7
|
|
|
(0.2)
|
%
|
|
1,148.7
|
|
|
3.8
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
349.3
|
|
|
349.5
|
|
|
(0.1)
|
%
|
|
347.2
|
|
|
0.6
|
%
|
Employee
compensation
|
396.8
|
|
|
339.0
|
|
|
17.1
|
%
|
|
344.4
|
|
|
15.2
|
%
|
Marketing
|
24.4
|
|
|
35.2
|
|
|
(30.7)
|
%
|
|
24.9
|
|
|
(2.0)
|
%
|
Property, office
and technology
|
85.5
|
|
|
85.3
|
|
|
0.2
|
%
|
|
79.9
|
|
|
7.0
|
%
|
General and
administrative
|
78.0
|
|
|
91.5
|
|
|
(14.8)
|
%
|
|
77.9
|
|
|
0.1
|
%
|
Total operating
expenses
|
934.0
|
|
|
900.5
|
|
|
3.7
|
%
|
|
874.3
|
|
|
6.8
|
%
|
Operating
income
|
258.6
|
|
|
294.2
|
|
|
(12.1)
|
%
|
|
274.4
|
|
|
(5.8)
|
%
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
17.7
|
|
|
11.4
|
|
|
55.3
|
%
|
|
(12.2)
|
|
|
N/A
|
|
Interest and
dividend income
|
2.9
|
|
|
3.5
|
|
|
(17.1)
|
%
|
|
3.6
|
|
|
(19.4)
|
%
|
Interest
expense
|
(24.0)
|
|
|
(23.5)
|
|
|
2.1
|
%
|
|
(23.9)
|
|
|
0.4
|
%
|
Other gains and
losses, net
|
6.2
|
|
|
15.6
|
|
|
(60.3)
|
%
|
|
(4.7)
|
|
|
N/A
|
|
Other
income/(expense) of CIP, net
|
28.5
|
|
|
9.8
|
|
|
190.8
|
%
|
|
(7.5)
|
|
|
N/A
|
|
Income before
income taxes
|
289.9
|
|
|
311.0
|
|
|
(6.8)
|
%
|
|
229.7
|
|
|
26.2
|
%
|
Income tax
provision
|
(75.7)
|
|
|
(92.9)
|
|
|
(18.5)
|
%
|
|
(71.9)
|
|
|
5.3
|
%
|
Net
income
|
214.2
|
|
|
218.1
|
|
|
(1.8)
|
%
|
|
157.8
|
|
|
35.7
|
%
|
Net (income)/loss
attributable to noncontrolling interests in
consolidated entities
|
(2.2)
|
|
|
8.4
|
|
|
N/A
|
|
|
3.2
|
|
|
N/A
|
|
Net income
attributable to Invesco Ltd.
|
$212.0
|
|
|
$226.5
|
|
|
(6.4)
|
%
|
|
$161.0
|
|
|
31.7
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.52
|
|
|
$0.55
|
|
|
(5.5)
|
%
|
|
$0.38
|
|
|
36.8
|
%
|
---diluted
|
$0.52
|
|
|
$0.55
|
|
|
(5.5)
|
%
|
|
$0.38
|
|
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
407.7
|
|
|
408.6
|
|
|
(0.2)
|
%
|
|
418.7
|
|
|
(2.6)
|
%
|
---diluted
|
408.0
|
|
|
409.0
|
|
|
(0.2)
|
%
|
|
418.9
|
|
|
(2.6)
|
%
|
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' 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 revenues to Net revenues:
in
millions
|
Q1-17
|
|
Q4-16
|
|
Q1-16
|
|
Operating revenues,
U.S. GAAP basis
|
1,192.6
|
|
|
1,194.7
|
|
|
1,148.7
|
|
|
Proportional share of
revenues, net of third-party distribution, service and advisory
expenses, from joint venture investments
|
10.6
|
|
|
12.6
|
|
|
11.1
|
|
|
Third party
distribution, service and advisory expenses
|
(349.3)
|
|
|
(349.5)
|
|
|
(347.2)
|
|
|
CIP
|
13.2
|
|
|
6.0
|
|
|
5.5
|
|
|
Net
revenues
|
867.1
|
|
|
863.8
|
|
|
818.1
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating income to Adjusted operating
income:
in
millions
|
Q1-17
|
|
Q4-16
|
|
Q1-16
|
|
Operating income,
U.S. GAAP basis
|
258.6
|
|
|
294.2
|
|
|
274.4
|
|
|
Proportional share of
net operating income from joint venture investments
|
1.3
|
|
|
5.4
|
|
|
3.3
|
|
|
CIP
|
12.0
|
|
|
17.6
|
|
|
7.3
|
|
|
Business
combinations
|
5.1
|
|
|
3.8
|
|
|
9.5
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
5.7
|
|
|
2.4
|
|
|
(0.2)
|
|
|
Business optimization
expenses
|
24.7
|
|
|
21.0
|
|
|
6.8
|
|
|
Senior executive
retirement and related costs
|
19.7
|
|
|
—
|
|
|
—
|
|
|
Vacated property
lease
|
—
|
|
|
0.2
|
|
|
—
|
|
|
Employee benefit plan
termination
|
—
|
|
|
(8.6)
|
|
|
|
|
Regulatory-related
charges
|
—
|
|
|
—
|
|
|
6.0
|
|
|
Adjusted operating
income
|
327.1
|
|
|
336.0
|
|
|
307.1
|
|
|
|
|
|
|
|
|
|
Operating margin
(1)
|
21.7
|
%
|
|
24.6
|
%
|
|
23.9
|
%
|
|
Adjusted operating
margin (2)
|
37.7
|
%
|
|
38.9
|
%
|
|
37.5
|
%
|
|
Reconciliation of Net income attributable to Invesco Ltd. to
Adjusted net income attributable to Invesco Ltd.
in
millions
|
Q1-17
|
|
Q4-16
|
|
Q1-16
|
|
Net income
attributable to Invesco Ltd., U.S. GAAP basis
|
212.0
|
|
|
226.5
|
|
|
161.0
|
|
|
CIP, eliminated upon
consolidation
|
(5.7)
|
|
|
(0.2)
|
|
|
8.4
|
|
|
Business
combinations:
|
|
|
|
|
|
|
Changes in the fair
value of contingent consideration
|
(0.5)
|
|
|
1.1
|
|
|
(3.5)
|
|
|
Other business
combination-related adjustments
|
5.1
|
|
|
3.8
|
|
|
9.5
|
|
|
Deferred compensation
plan market valuation changes and dividend income less compensation
expense
|
(4.5)
|
|
|
0.1
|
|
|
1.4
|
|
|
Business optimization
expenses
|
24.7
|
|
|
21.0
|
|
|
6.8
|
|
|
Senior executive
retirement and related costs
|
19.7
|
|
|
—
|
|
|
—
|
|
|
Vacated property
lease
|
—
|
|
|
0.2
|
|
|
—
|
|
|
Employee benefit plan
termination
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
Regulatory-related
charges
|
—
|
|
|
—
|
|
|
6.0
|
|
|
Foreign exchange
hedge
|
13.9
|
|
|
(6.6)
|
|
|
(1.4)
|
|
|
Taxation:
|
|
|
|
|
|
|
Taxation on business
combinations
|
4.1
|
|
|
4.0
|
|
|
3.5
|
|
|
Taxation on deferred
compensation plan market valuation changes and dividend income less
compensation expense
|
1.6
|
|
|
—
|
|
|
(0.3)
|
|
|
Taxation on business
optimization charges
|
(8.7)
|
|
|
(7.0)
|
|
|
(2.3)
|
|
|
Taxation on senior
executive retirement and related costs
|
(5.9)
|
|
|
—
|
|
|
—
|
|
|
Taxation on employee
benefit plan termination
|
—
|
|
|
3.3
|
|
|
—
|
|
|
Taxation on
regulatory-related charges
|
—
|
|
|
—
|
|
|
(2.3)
|
|
|
Taxation on foreign
exchange hedge
|
(5.3)
|
|
|
2.5
|
|
|
0.2
|
|
|
Adjusted net income
attributable to Invesco Ltd. (3)
|
250.5
|
|
|
240.1
|
|
|
204.8
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
408.0
|
|
|
409.0
|
|
|
418.9
|
|
|
Diluted
EPS
|
$0.52
|
|
|
$0.55
|
|
|
$0.38
|
|
|
Adjusted diluted EPS
(4)
|
$0.61
|
|
|
$0.59
|
|
|
$0.49
|
|
|
|
|
(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 26.6%
(fourth quarter 2016: 27.7%; first quarter 2016: 26.5%). 2017
includes a 0.4% rate decrease related to excess tax benefits on
share based compensation for vestings of our annual share
awards.
|
(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:
in
millions
|
Q1-17
|
|
Q4-16
|
|
Q1-16
|
|
Operating expenses,
U.S. GAAP basis
|
934.0
|
|
|
900.5
|
|
|
874.3
|
|
|
Proportional share of
revenues, net of third-party distribution expenses, from joint
venture investments
|
9.3
|
|
|
7.2
|
|
|
7.8
|
|
|
Third party
distribution, service and advisory expenses
|
(349.3)
|
|
|
(349.5)
|
|
|
(347.2)
|
|
|
CIP
|
1.2
|
|
|
(11.6)
|
|
|
(1.8)
|
|
|
Business
combinations
|
(5.1)
|
|
|
(3.8)
|
|
|
(9.5)
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(5.7)
|
|
|
(2.4)
|
|
|
0.2
|
|
|
Business
optimization
|
(24.7)
|
|
|
(21.0)
|
|
|
(6.8)
|
|
|
Senior executive
retirement and related costs
|
(19.7)
|
|
|
—
|
|
|
—
|
|
|
Vacated property
lease
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
Employee benefit plan
termination
|
—
|
|
|
8.6
|
|
|
—
|
|
|
Regulatory-related
charges
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
Adjusted operating
expenses
|
540.0
|
|
|
527.8
|
|
|
511.0
|
|
|
|
|
|
|
|
|
|
Employee
compensation, U.S. GAAP basis
|
396.8
|
|
|
339.0
|
|
|
344.4
|
|
|
Proportional
consolidation of joint ventures
|
5.1
|
|
|
5.4
|
|
|
5.1
|
|
|
Business
combinations
|
(1.1)
|
|
|
(0.5)
|
|
|
(5.4)
|
|
|
Market
appreciation/depreciation of deferred compensation
awards
|
(5.7)
|
|
|
(2.4)
|
|
|
0.2
|
|
|
Business
optimization
|
(15.7)
|
|
|
(12.2)
|
|
|
(4.0)
|
|
|
Senior executive
retirement and related costs
|
(18.3)
|
|
|
—
|
|
|
—
|
|
|
Employee benefit plan
termination
|
—
|
|
|
8.6
|
|
|
—
|
|
|
Adjusted employee
compensation
|
361.1
|
|
|
337.9
|
|
|
340.3
|
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis
|
24.4
|
|
|
35.2
|
|
|
24.9
|
|
|
Proportional
consolidation of joint ventures
|
0.6
|
|
|
0.2
|
|
|
0.5
|
|
|
Adjusted
marketing
|
25.0
|
|
|
35.4
|
|
|
25.4
|
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis
|
85.5
|
|
|
85.3
|
|
|
79.9
|
|
|
Proportional
consolidation of joint ventures
|
0.9
|
|
|
1.0
|
|
|
0.9
|
|
|
Business
optimization
|
(0.8)
|
|
|
(1.1)
|
|
|
0.3
|
|
|
Vacated property
lease
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
Adjusted property,
office and technology
|
85.6
|
|
|
85.0
|
|
|
81.1
|
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis
|
78.0
|
|
|
91.5
|
|
|
77.9
|
|
|
Proportional
consolidation of joint ventures
|
2.7
|
|
|
0.6
|
|
|
1.3
|
|
|
Business
combinations
|
(4.0)
|
|
|
(3.3)
|
|
|
(4.1)
|
|
|
CIP
|
1.2
|
|
|
(11.6)
|
|
|
(1.8)
|
|
|
Business
optimization
|
(8.2)
|
|
|
(7.7)
|
|
|
(3.1)
|
|
|
Senior executive
retirement and related costs
|
(1.4)
|
|
|
—
|
|
|
—
|
|
|
Regulatory-related
charges
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
Adjusted general and
administrative
|
68.3
|
|
|
69.5
|
|
|
64.2
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Quarterly Assets
Under Management
|
|
|
(in
billions)
|
Q1-17
|
|
Q4-16
|
|
%
Change
|
|
Q1-16
|
Beginning
Assets
|
$812.9
|
|
|
$820.2
|
|
|
(0.9)
|
%
|
|
$775.6
|
|
Long-term
inflows
|
49.1
|
|
|
46.2
|
|
|
6.3
|
%
|
|
42.8
|
|
Long-term
outflows
|
(47.3)
|
|
|
(48.9)
|
|
|
(3.3)
|
%
|
|
(44.1)
|
|
Long-term net
flows
|
1.8
|
|
|
(2.7)
|
|
|
N/A
|
|
|
(1.3)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
2.7
|
|
|
(63.0)
|
%
|
|
(2.6)
|
|
Net flows in
institutional money market funds
|
(8.1)
|
|
|
1.1
|
|
|
N/A
|
|
|
3.8
|
|
Total net
flows
|
(5.3)
|
|
|
1.1
|
|
|
N/A
|
|
|
(0.1)
|
|
Market gains and
losses/reinvestment
|
23.1
|
|
|
6.4
|
|
|
260.9
|
%
|
|
(3.0)
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
N/A
|
|
|
(3.6)
|
|
Foreign currency
translation
|
4.1
|
|
|
(14.8)
|
|
|
N/A
|
|
|
2.6
|
|
Ending
Assets
|
$834.8
|
|
|
$812.9
|
|
|
2.7
|
%
|
|
$771.5
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$716.3
|
|
|
$698.9
|
|
|
2.5
|
%
|
|
$649.2
|
|
Average
AUM
|
$829.8
|
|
|
$809.0
|
|
|
2.6
|
%
|
|
$747.5
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
58.1
|
bps
|
|
59.8
|
bps
|
|
|
|
62.1
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
57.5
|
bps
|
|
58.9
|
bps
|
|
|
|
61.3
|
bps
|
Net revenue yield
on AUM(b)
|
41.8
|
bps
|
|
42.7
|
bps
|
|
|
|
43.8
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
40.9
|
bps
|
|
41.8
|
bps
|
|
|
|
42.9
|
bps
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
December 31,
2016
|
$812.9
|
|
|
$668.5
|
|
|
$144.4
|
|
Long-term
inflows
|
49.1
|
|
|
37.3
|
|
|
11.8
|
|
Long-term
outflows
|
(47.3)
|
|
|
(37.8)
|
|
|
(9.5)
|
|
Long-term net
flows
|
1.8
|
|
|
(0.5)
|
|
|
2.3
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
—
|
|
|
1.0
|
|
Net flows in
institutional money market funds
|
(8.1)
|
|
|
(8.1)
|
|
|
—
|
|
Total net
flows
|
(5.3)
|
|
|
(8.6)
|
|
|
3.3
|
|
Market gains and
losses/reinvestment
|
23.1
|
|
|
16.6
|
|
|
6.5
|
|
Foreign currency
translation
|
4.1
|
|
|
4.0
|
|
|
0.1
|
|
March 31,
2017
|
$834.8
|
|
|
$680.5
|
|
|
$154.3
|
|
|
|
|
|
|
|
Average
AUM
|
$829.8
|
|
|
$678.4
|
|
|
$151.4
|
|
Gross revenue
yield on AUM(a)
|
58.1
|
bps
|
|
67.5bps
|
|
|
16.6
|
bps
|
Net revenue yield
on AUM(b)
|
41.8
|
bps
|
|
47.4bps
|
|
|
16.6
|
bps
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2016
|
$812.9
|
|
|
$526.5
|
|
|
$286.4
|
|
Long-term
inflows
|
49.1
|
|
|
39.6
|
|
|
9.5
|
|
Long-term
outflows
|
(47.3)
|
|
|
(37.8)
|
|
|
(9.5)
|
|
Long-term net
flows
|
1.8
|
|
|
1.8
|
|
|
—
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(8.1)
|
|
|
—
|
|
|
(8.1)
|
|
Total net
flows
|
(5.3)
|
|
|
2.8
|
|
|
(8.1)
|
|
Market gains and
losses/reinvestment
|
23.1
|
|
|
20.4
|
|
|
2.7
|
|
Foreign currency
translation
|
4.1
|
|
|
2.4
|
|
|
1.7
|
|
March 31,
2017
|
$834.8
|
|
|
$552.1
|
|
|
$282.7
|
|
|
|
|
|
|
|
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)
|
December 31,
2016
|
$812.9
|
|
|
$364.1
|
|
|
$201.7
|
|
|
$46.8
|
|
|
$78.3
|
|
|
$122.0
|
|
Long-term
inflows
|
49.1
|
|
|
21.5
|
|
|
12.7
|
|
|
2.7
|
|
|
0.8
|
|
|
11.4
|
|
Long-term
outflows
|
(47.3)
|
|
|
(26.5)
|
|
|
(10.2)
|
|
|
(2.2)
|
|
|
(0.9)
|
|
|
(7.5)
|
|
Long-term net
flows
|
1.8
|
|
|
(5.0)
|
|
|
2.5
|
|
|
0.5
|
|
|
(0.1)
|
|
|
3.9
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(8.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1)
|
|
|
—
|
|
Total net
flows
|
(5.3)
|
|
|
(4.0)
|
|
|
2.5
|
|
|
0.5
|
|
|
(8.2)
|
|
|
3.9
|
|
Market gains and
losses/reinvestment
|
23.1
|
|
|
20.2
|
|
|
1.7
|
|
|
1.3
|
|
|
—
|
|
|
(0.1)
|
|
Transfers /
reclassifications(f)
|
—
|
|
|
—
|
|
|
(3.0)
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
Foreign currency
translation
|
4.1
|
|
|
1.5
|
|
|
0.9
|
|
|
0.3
|
|
|
—
|
|
|
1.4
|
|
March 31,
2017
|
$834.8
|
|
|
$381.8
|
|
|
$203.8
|
|
|
$48.9
|
|
|
$73.1
|
|
|
$127.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$829.8
|
|
|
$376.8
|
|
|
$202.1
|
|
|
$48.2
|
|
|
$77.4
|
|
|
$125.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
December 31,
2016
|
$812.9
|
|
|
$539.5
|
|
|
$23.1
|
|
|
$98.2
|
|
|
$72.1
|
|
|
$80.0
|
|
Long-term
inflows
|
49.1
|
|
|
27.8
|
|
|
1.1
|
|
|
4.1
|
|
|
8.3
|
|
|
7.8
|
|
Long-term
outflows
|
(47.3)
|
|
|
(26.9)
|
|
|
(1.3)
|
|
|
(5.9)
|
|
|
(6.6)
|
|
|
(6.6)
|
|
Long-term net
flows
|
1.8
|
|
|
0.9
|
|
|
(0.2)
|
|
|
(1.8)
|
|
|
1.7
|
|
|
1.2
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(8.1)
|
|
|
(7.2)
|
|
|
—
|
|
|
0.3
|
|
|
0.6
|
|
|
(1.8)
|
|
Total net
flows
|
(5.3)
|
|
|
(5.3)
|
|
|
(0.2)
|
|
|
(1.5)
|
|
|
2.3
|
|
|
(0.6)
|
|
Market gains and
losses/reinvestment
|
23.1
|
|
|
15.8
|
|
|
0.9
|
|
|
3.3
|
|
|
2.3
|
|
|
0.8
|
|
Foreign currency
translation
|
4.1
|
|
|
—
|
|
|
0.1
|
|
|
1.0
|
|
|
0.9
|
|
|
2.1
|
|
March 31,
2017
|
$834.8
|
|
|
$550.0
|
|
|
$23.9
|
|
|
$101.0
|
|
|
$77.6
|
|
|
$82.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(e)
|
|
|
(in
billions)
|
Q1-17
|
|
Q4-16
|
|
%
Change
|
|
Q1-16
|
Beginning
Assets
|
$144.4
|
|
|
$143.3
|
|
|
0.8
|
%
|
|
$139.1
|
|
Long-term
inflows
|
11.8
|
|
|
10.6
|
|
|
11.3
|
%
|
|
9.9
|
|
Long-term
outflows
|
(9.5)
|
|
|
(11.4)
|
|
|
(16.7)
|
%
|
|
(11.7)
|
|
Long-term net
flows
|
2.3
|
|
|
(0.8)
|
|
|
N/A
|
|
|
(1.8)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
2.7
|
|
|
(63.0)
|
%
|
|
(2.6)
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
N/A
|
|
|
(0.3)
|
|
Total net
flows
|
3.3
|
|
|
1.9
|
|
|
73.7
|
%
|
|
(4.7)
|
|
Market gains and
losses/reinvestment
|
6.5
|
|
|
(0.6)
|
|
|
N/A
|
|
|
(0.2)
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
N/A
|
|
|
(3.2)
|
|
Foreign currency
translation
|
0.1
|
|
|
(0.2)
|
|
|
N/A
|
|
|
0.1
|
|
Ending
Assets
|
$154.3
|
|
|
$144.4
|
|
|
6.9
|
%
|
|
$131.1
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$106.7
|
|
|
$101.8
|
|
|
4.8
|
%
|
|
$89.4
|
|
Average
AUM
|
$151.4
|
|
|
$142.0
|
|
|
6.6
|
%
|
|
$126.9
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
16.6
|
bps
|
|
17.1
|
bps
|
|
|
|
13.8
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
16.6
|
bps
|
|
17.1
|
bps
|
|
|
|
13.8
|
bps
|
Net revenue yield
on AUM(b)
|
16.6
|
bps
|
|
17.1
|
bps
|
|
|
|
13.8
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
16.6
|
bps
|
|
17.1
|
bps
|
|
|
|
13.8
|
bps
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2016
|
$144.4
|
|
|
$128.8
|
|
|
$15.6
|
|
Long-term
inflows
|
11.8
|
|
|
10.4
|
|
|
1.4
|
|
Long-term
outflows
|
(9.5)
|
|
|
(8.4)
|
|
|
(1.1)
|
|
Long-term net
flows
|
2.3
|
|
|
2.0
|
|
|
0.3
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
3.3
|
|
|
3.0
|
|
|
0.3
|
|
Market gains and
losses/reinvestment
|
6.5
|
|
|
6.7
|
|
|
(0.2)
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
0.1
|
|
March 31,
2017
|
$154.3
|
|
|
$138.5
|
|
|
$15.8
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
December 31,
2016
|
$144.4
|
|
|
$93.5
|
|
|
$41.7
|
|
|
$—
|
|
|
$—
|
|
|
$9.2
|
|
Long-term
inflows
|
11.8
|
|
|
6.8
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Long-term
outflows
|
(9.5)
|
|
|
(6.7)
|
|
|
(1.2)
|
|
|
—
|
|
|
—
|
|
|
(1.6)
|
|
Long-term net
flows
|
2.3
|
|
|
0.1
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
3.3
|
|
|
1.1
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
Market gains and
losses/reinvestment
|
6.5
|
|
|
6.6
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
(0.4)
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31,
2017
|
$154.3
|
|
|
$101.2
|
|
|
$45.1
|
|
|
$—
|
|
|
$—
|
|
|
$8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$151.4
|
|
|
$97.8
|
|
|
$44.5
|
|
|
$—
|
|
|
$—
|
|
|
$9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(e) (continued)
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
December 31,
2016
|
$144.4
|
|
|
$139.9
|
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.1
|
|
Long-term
inflows
|
11.8
|
|
|
11.7
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Long-term
outflows
|
(9.5)
|
|
|
(8.7)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.7)
|
|
Long-term net
flows
|
2.3
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
3.3
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
Market gains and
losses/reinvestment
|
6.5
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31,
2017
|
$154.3
|
|
|
$150.2
|
|
|
$0.5
|
|
|
$—
|
|
|
$2.0
|
|
|
$1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 first quarter for our JVs
in China was $8.4 billion (fourth quarter 2016: $10.1 billion;
first quarter 2016: $7.6 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 7 through 9 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 March 31, 2017 includes $65.2 billion in
institutional money market AUM and $47.8 billion in PowerShares QQQ
AUM. (December 31, 2016: $70.9 billion and $42.0 billion,
respectively; March 31, 2016: $62.8 billion and $37.5 billion,
respectively).
|
(e)
|
Passive AUM includes
ETFs, UITs, non-fee earning leverage and other passive mandates.
Active AUM are total AUM less Passive AUM.
|
(f)
|
In January 2017 the
company reclassified $3.0 billion of certain AUM previously
classified in fixed income to money market.
|
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
|
18
|
%
|
—
|
%
|
—
|
%
|
21
|
%
|
—
|
%
|
5
|
%
|
|
U.S.
Growth
|
67
|
%
|
29
|
%
|
37
|
%
|
54
|
%
|
38
|
%
|
83
|
%
|
|
U.S. Value
|
55
|
%
|
57
|
%
|
58
|
%
|
59
|
%
|
57
|
%
|
91
|
%
|
|
Sector
|
58
|
%
|
3
|
%
|
55
|
%
|
61
|
%
|
16
|
%
|
17
|
%
|
|
U.K.
|
11
|
%
|
87
|
%
|
100
|
%
|
12
|
%
|
85
|
%
|
98
|
%
|
|
Canadian
|
47
|
%
|
10
|
%
|
54
|
%
|
47
|
%
|
10
|
%
|
33
|
%
|
|
Asian
|
77
|
%
|
77
|
%
|
90
|
%
|
67
|
%
|
69
|
%
|
85
|
%
|
|
Continental
European
|
61
|
%
|
76
|
%
|
100
|
%
|
50
|
%
|
75
|
%
|
96
|
%
|
|
Global
|
36
|
%
|
55
|
%
|
68
|
%
|
74
|
%
|
60
|
%
|
87
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
18
|
%
|
91
|
%
|
98
|
%
|
14
|
%
|
3
|
%
|
98
|
%
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
70
|
%
|
70
|
%
|
70
|
%
|
97
|
%
|
98
|
%
|
98
|
%
|
|
U.S. Fixed
Income
|
66
|
%
|
90
|
%
|
90
|
%
|
71
|
%
|
80
|
%
|
85
|
%
|
|
Global Fixed
Income
|
54
|
%
|
51
|
%
|
62
|
%
|
50
|
%
|
25
|
%
|
62
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
73
|
%
|
72
|
%
|
62
|
%
|
62
|
%
|
85
|
%
|
37
|
%
|
|
Balanced
|
95
|
%
|
58
|
%
|
42
|
%
|
89
|
%
|
89
|
%
|
92
|
%
|
|
|
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
3/31/2017. 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. Performance assumes the
reinvestment of dividends. 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-three-months-ended-march-31-2017-300446972.html
SOURCE Invesco Ltd.