ATLANTA, Oct. 27, 2020 /PRNewswire/ -- Invesco Ltd.
(NYSE: IVZ) today reported financial results for the three months
ended September 30, 2020.
Flows
|
|
long-term net
inflows of $7.8 billion compared to outflows of $14.2 billion in
Q2-20
|
|
|
|
AUM
|
|
ending AUM
increased 6.4% to $1,218.2 billion compared to $1,145.2 billion in
Q2-20
average AUM
increased 7.8% to $1,206.2 billion compared to $1,118.7 billion in
Q2-20
|
|
|
|
Operating
margin
|
|
operating margin
increased to 17.9% compared to 8.3% in Q2-20
adjusted operating
margin(1) improved to 37.2% compared to 34.8% in
Q2-20
|
|
|
|
EPS
|
|
diluted EPS
increased to $0.41 compared to $0.09 in Q2-20
adjusted diluted
EPS(1) increased to $0.53 compared to $0.35 in
Q2-20
|
|
(1)
Represents non-GAAP financial measure. See the information on pages
7 through 10 for a reconciliation to their most directly comparable
U.S. GAAP measures.
|
Update from Marty
Flanagan, President and CEO
"Given the continued uncertainty in the economic environment
driven by the global pandemic, we remained focused on providing
solutions to help clients achieve their investment objectives while
running a disciplined business," said Marty
Flanagan, President and Chief Executive Officer of Invesco
Ltd. "These efforts, combined with strong investment performance in
high-demand capabilities, contributed to continued improvement in
flow fundamentals in the quarter.
"We achieved net long-term inflows in the quarter of
$7.8 billion across a broad variety
of channels, geographies and asset classes. Retail outflows
significantly improved in the quarter, and our Solutions-enabled
institutional pipeline remains robust. Long-term flows into Fixed
Income capabilities continued to be strong. We saw net inflows in
our Asia Pacific and EMEA regions
during the quarter, and net outflows in the Americas improved
significantly. Net inflows in Asia
Pacific during Q3 of $8.0
billion were up significantly from $2.0 billion in the prior quarter.
"Improved flow fundamentals, combined with the markets,
increased ending and average AUM to $1.2
trillion. Our net revenues and EPS increased in the period.
We continued to optimize our balance sheet by reducing outstanding
borrowings under our revolver while improving our cash
balances.
"Invesco has built a global, diversified business with the
depth, breadth and resiliency to deliver positive outcomes to
clients through various market cycles. We have invested in several
macro trends that are shaping the future of our industry. As a
result, we are now highly competitive in areas of strong demand,
with the majority of our investment capabilities aligned with key
future growth areas. These include a significant and growing
Solutions effort and global leadership positions in fixed income,
ETFs, factors, Global Equities (including emerging markets),
Alternatives, and the fast-growing China market. We remain focused on meeting the
needs of our clients in a challenging environment while running a
disciplined business and working toward sustained organic
growth."
Net flows:
Net flows: Long-term net
inflows were $7.8 billion for the
third quarter, compared to outflows of $14.2
billion in the second quarter.
Overall areas of strength by asset class include long-term net
inflows of $8.8 billion into fixed
income products and $2.5 billion into
balanced products, which were offset by long-term net outflows of
$4.1 billion in equity products. On a
geographic basis, the Asia and
EMEA regions achieved long-term net inflows of $8.0 billion and $4.2
billion, respectively, while the Americas reflected
long-term net outflows of $4.4
billion.
We saw inflows of $7.0 billion in
non-management fee earning AUM, offset by outflows of $3.5 billion from money market funds during the
quarter. Net market gains and foreign exchange rate movements led
to increases of $53.0 billion and
$7.7 billion in AUM, respectively,
during the third quarter. Ending AUM was up 6.4% from the second
quarter, while average AUM increased 7.8% during the third
quarter.
Summary of net
flows (in billions)
|
|
Q3-20
|
|
Q2-20
|
|
Q3-19
|
Active
|
|
$
|
1.8
|
|
|
$
|
(13.4)
|
|
|
$
|
(15.7)
|
|
Passive
|
|
6.0
|
|
|
(0.8)
|
|
|
4.6
|
|
Long-term net
flows
|
|
7.8
|
|
|
(14.2)
|
|
|
(11.1)
|
|
Non-management fee
earning AUM
|
|
7.0
|
|
|
(8.7)
|
|
|
2.7
|
|
Money
market
|
|
(3.5)
|
|
|
(6.6)
|
|
|
2.6
|
|
Total net
flows
|
|
$
|
11.3
|
|
|
$
|
(29.5)
|
|
|
$
|
(5.8)
|
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate (1)
|
|
3.3
|
%
|
|
(6.5)
|
%
|
|
(4.5)
|
%
|
|
|
|
|
|
|
|
|
|
(1)
|
Annualized long-term
organic growth rate is calculated using long-term net flows
(annualized) divided by average long-term AUM for the period.
Long-term AUM excludes institutional money market and
non-management fee earning AUM.
|
Third Quarter
Highlights:
|
|
Financial
Results
|
Q3-20
|
|
Q2-20
|
|
Q3-20 vs.
Q2-20
|
|
Q3-19
|
|
Q3-20 vs.
Q3-19
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,497.6
|
m
|
|
$1,419.0
|
m
|
|
5.5
|
%
|
|
$1,720.6
|
m
|
|
(13.0)
|
%
|
Operating
income
|
$268.5
|
m
|
|
$117.1
|
m
|
|
129.3
|
%
|
|
$275.1
|
m
|
|
(2.4)
|
%
|
Operating
margin
|
17.9
|
%
|
|
8.3
|
%
|
|
|
|
16.0
|
%
|
|
|
Net income
attributable to Invesco Ltd.
|
$191.7
|
m
|
|
$40.5
|
m
|
|
373.3
|
%
|
|
$167.1
|
m
|
|
14.7
|
%
|
Diluted
EPS
|
$0.41
|
|
|
$0.09
|
|
|
355.6
|
%
|
|
$0.36
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures (1)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$1,092.5
|
m
|
|
$1,034.3
|
m
|
|
5.6
|
%
|
|
$1,228.7
|
m
|
|
(11.1)
|
%
|
Adjusted operating
income
|
$406.7
|
m
|
|
$359.7
|
m
|
|
13.1
|
%
|
|
$502.6
|
m
|
|
(19.1)
|
%
|
Adjusted operating
margin
|
37.2
|
%
|
|
34.8
|
%
|
|
|
|
40.9
|
%
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$244.0
|
m
|
|
$159.7
|
m
|
|
52.8
|
%
|
|
$325.2
|
m
|
|
(25.0)
|
%
|
Adjusted diluted
EPS
|
$0.53
|
|
|
$0.35
|
|
|
51.4
|
%
|
|
$0.70
|
|
|
(24.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$1,218.2
|
bn
|
|
$1,145.2
|
bn
|
|
6.4
|
%
|
|
$1,184.4
|
bn
|
|
2.9
|
%
|
Average
AUM
|
$1,206.2
|
bn
|
|
$1,118.7
|
bn
|
|
7.8
|
%
|
|
$1,188.2
|
bn
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Headcount
|
8,750
|
|
8,717
|
|
0.4
|
%
|
|
8,835
|
|
(1.0)
|
%
|
|
|
(1)
|
The adjusted
financial measures are all non-GAAP financial measures. See the
information on pages 7 through 10 for a reconciliation to their
most directly comparable U.S. GAAP measures.
|
Operating revenues and expenses: During the third
quarter, operating revenue increases were driven by higher average
AUM resulting from net inflows during the quarter and market
recovery in July and August. Revenues were higher by $78.6 million, which includes higher investment
management fees of $59.7 million and
higher service and distribution fees of $20.0 million. Foreign exchange rate
changes increased operating revenues in the third quarter by
$14.6 million.
Operating expenses decreased $72.8
million in the third quarter. The second quarter included a
charge of $105.3 million from the
S&P 500 equal weight funds rebalance correction. Foreign
exchange rate changes increased operating expenses in the third
quarter by $11.7 million.
Third party distribution, service and advisory costs were up
$36.8 million during the quarter
driven by higher average AUM. Employee compensation expense
decreased $10.1 million primarily due
to lower deferred compensation expense in comparison to the second
quarter. General and administrative expenses decreased $99.2 million. Such expenses in the second
quarter included the S&P 500 equal weight funds rebalance
correction.
Non-operating income and expenses: Equity in earnings of
unconsolidated affiliates was $18.6
million, earned primarily from our joint venture in
China. Other gains and losses was
a net gain of $31.5 million, driven
by market value changes on deferred compensation and seed
investments.
Other income/(expense) of consolidated investment products
(CIP), net was a gain of $99.2
million primarily driven by unrealized market gains on
investments held by consolidated funds.
Diluted earnings per common
share: Diluted earnings per common
share increased 355.6% to $0.41.
Adjusted diluted earnings per common share:(1)
Adjusted diluted earnings per common share increased 51.4% to
$0.53.
(1)
|
Adjusted diluted
earnings per common share is a non-GAAP financial measure. See the
information on pages 7 through 10 for a reconciliation to the most
directly comparable U.S. GAAP measure.
|
Capital Management:
Cash and cash equivalents: $1,066.6 million at September 30, 2020 ($987.1
million at June 30, 2020).
Long-term debt: $2,172.0 million, which includes the credit
facility balance of $90.0 million as
of September 30, 2020 (credit
facility: $325.6 million at
June 30, 2020).
Common share repurchases: During the third
quarter of 2020, the company did not purchase any of its shares in
the open market.
Diluted common shares outstanding (end of
period): 463.5 million
Dividends paid: $71.4 million (common);
$59.2 million (preferred)
Common dividends declared: The company
is announcing a third quarter cash dividend of $0.155 per share to holders of common shares. The
dividend is payable on December 2, 2020, to common
shareholders of record at the close of business on
November 12, 2020, with an ex-dividend date of
November 10, 2020.
Preferred dividends declared: The company is
announcing a preferred cash dividend of $14.75 per share representing the period from
September 1, 2020 through
November 30, 2020. The preferred
dividend is payable on December 1, 2020 to preferred
shareholders of record at the close of business on
November 16, 2020.
About Invesco Ltd.
Invesco is a global independent investment management firm
dedicated to delivering an investment experience that helps people
get more out of life. With offices in 25 countries, our distinctive
investment teams deliver a comprehensive range of active, passive
and alternative investment capabilities. For more information,
visit www.invesco.com/corporate.
Members of the investment community and general public are
invited to listen to the conference call today, October 27,
2020, at 9:00 a.m. ET by dialing one
of the following numbers: 1-866-803-2143 for U.S. and Canadian
callers or 1-210-795-1098 for international callers, using the
Passcode: Invesco. An audio replay of the conference call will be
available until Tuesday, November 10,
2020 at 5:00 p.m. ET by
calling 1-866-373-4994 for U.S. and Canadian callers or
1-203-369-0274 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/corporate.
This release, and comments made in the associated conference
call today, may include "forward-looking statements."
Forward-looking statements include information concerning future
results of our operations, expenses, earnings, liquidity, cash flow
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)
|
|
|
Q3-20
|
|
Q2-20
|
|
%
Change
|
|
Q3-19
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$
|
1,096.8
|
|
|
$
|
1,037.1
|
|
|
5.8
|
%
|
|
$
|
1,257.1
|
|
|
(12.8)
|
%
|
Service and
distribution fees
|
352.7
|
|
|
332.7
|
|
|
6.0
|
%
|
|
385.1
|
|
|
(8.4)
|
%
|
Performance
fees
|
—
|
|
|
3.5
|
|
|
N/A
|
|
|
14.9
|
|
|
N/A
|
|
Other
|
48.1
|
|
|
45.7
|
|
|
5.3
|
%
|
|
63.5
|
|
|
(24.3)
|
%
|
Total operating
revenues
|
1,497.6
|
|
|
1,419.0
|
|
|
5.5
|
%
|
|
1,720.6
|
|
|
(13.0)
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
480.8
|
|
|
444.0
|
|
|
8.3
|
%
|
|
545.1
|
|
|
(11.8)
|
%
|
Employee
compensation
|
444.5
|
|
|
454.6
|
|
|
(2.2)
|
%
|
|
446.0
|
|
|
(0.3)
|
%
|
Marketing
|
15.6
|
|
|
14.4
|
|
|
8.3
|
%
|
|
33.2
|
|
|
(53.0)
|
%
|
Property, office
and technology
|
127.5
|
|
|
128.3
|
|
|
(0.6)
|
%
|
|
131.2
|
|
|
(2.8)
|
%
|
General and
administrative
|
89.7
|
|
|
188.9
|
|
|
(52.5)
|
%
|
|
104.5
|
|
|
(14.2)
|
%
|
Transaction,
integration, and restructuring
|
71.0
|
|
|
71.7
|
|
|
(1.0)
|
%
|
|
185.5
|
|
|
(61.7)
|
%
|
Total operating
expenses
|
1,229.1
|
|
|
1,301.9
|
|
|
(5.6)
|
%
|
|
1,445.5
|
|
|
(15.0)
|
%
|
Operating
income
|
268.5
|
|
|
117.1
|
|
|
129.3
|
%
|
|
275.1
|
|
|
(2.4)
|
%
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
18.6
|
|
|
11.2
|
|
|
66.1
|
%
|
|
19.8
|
|
|
(6.1)
|
%
|
Interest and
dividend income
|
2.6
|
|
|
2.4
|
|
|
8.3
|
%
|
|
5.9
|
|
|
(55.9)
|
%
|
Interest
expense
|
(33.8)
|
|
|
(34.8)
|
|
|
(2.9)
|
%
|
|
(35.0)
|
|
|
(3.4)
|
%
|
Other gains and
losses, net
|
31.5
|
|
|
60.0
|
|
|
(47.5)
|
%
|
|
13.8
|
|
|
128.3
|
%
|
Other
income/(expense) of CIP, net
|
99.2
|
|
|
(50.5)
|
|
|
N/A
|
|
|
37.0
|
|
|
168.1
|
%
|
Income before
income taxes
|
386.6
|
|
|
105.4
|
|
|
266.8
|
%
|
|
316.6
|
|
|
22.1
|
%
|
Income tax
provision
|
(91.9)
|
|
|
(43.4)
|
|
|
111.8
|
%
|
|
(74.0)
|
|
|
24.2
|
%
|
Net
income
|
294.7
|
|
|
62.0
|
|
|
375.3
|
%
|
|
242.6
|
|
|
21.5
|
%
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(43.8)
|
|
|
37.7
|
|
|
N/A
|
|
|
(11.1)
|
|
|
294.6
|
%
|
Less: Dividends
declared on preferred shares
|
(59.2)
|
|
|
(59.2)
|
|
|
—
|
%
|
|
(64.4)
|
|
|
(8.1)
|
%
|
Net income
attributable to Invesco Ltd.
|
$
|
191.7
|
|
|
$
|
40.5
|
|
|
373.3
|
%
|
|
$
|
167.1
|
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.42
|
|
|
$0.09
|
|
|
366.7
|
%
|
|
$0.36
|
|
|
16.7
|
%
|
---diluted
|
$0.41
|
|
|
$0.09
|
|
|
355.6
|
%
|
|
$0.36
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
461.1
|
|
|
460.1
|
|
|
0.2
|
%
|
|
462.8
|
|
|
(0.4)
|
%
|
---diluted
|
463.5
|
|
|
463.1
|
|
|
0.1
|
%
|
|
466.9
|
|
|
(0.7)
|
%
|
Invesco Ltd.
Non-GAAP Information and
Reconciliations
We utilize the following non-GAAP performance measures: net
revenues (and by calculation, net revenue yield on AUM), adjusted
operating income, adjusted operating margin, adjusted net income
attributable to Invesco Ltd., and adjusted diluted EPS. We believe
the adjusted measures provide valuable insight into our ongoing
operational performance and assist in comparisons to our
competitors. These measures also assist management with the
establishment of operational budgets and forecasts and assist the
Board of Directors and management in determining incentive
compensation decisions. The most directly comparable U.S. GAAP
measures are operating revenues (and by calculation, gross revenue
yield on AUM), operating income, operating margin, net income
attributable to Invesco Ltd., and diluted EPS.
The following are reconciliations of operating revenues,
operating income (and by calculation, operating margin), and net
income attributable to Invesco Ltd. (and by calculation, diluted
EPS) on a U.S. GAAP basis to a non-GAAP basis of net revenues,
adjusted operating income (and by calculation, adjusted operating
margin), and adjusted net income attributable to Invesco Ltd. (and
by calculation, adjusted diluted EPS). In addition, a
reconciliation of adjusted operating expenses is provided below,
together with reconciliations of the U.S. GAAP operating expense
lines to provide further analysis of the non-GAAP adjustments.
These non-GAAP measures should not be considered as substitutes for
any U.S. GAAP measures and may not be comparable to other similarly
titled measures of other companies. The tax effect of the
reconciling items is based on the tax jurisdiction attributable to
the transactions. These measures are described more fully in the
company's Forms 10-K and 10-Q. Refer to these public filings for
additional information about the company's non-GAAP performance
measures.
Reconciliation of Operating revenues to Net revenues:
in
millions
|
Q3-20
|
|
Q2-20
|
|
Q3-19
|
|
Operating revenues,
U.S. GAAP basis
|
$
|
1,497.6
|
|
|
$
|
1,419.0
|
|
|
$
|
1,720.6
|
|
|
Invesco Great
Wall
|
65.3
|
|
|
48.8
|
|
|
44.7
|
|
|
Revenue Adjustments
(1)
|
|
|
|
|
|
|
Investment
management fees
|
(192.6)
|
|
|
(175.9)
|
|
|
(211.2)
|
|
|
Service and
distribution fees
|
(245.0)
|
|
|
(228.5)
|
|
|
(279.8)
|
|
|
Other
|
(43.2)
|
|
|
(39.6)
|
|
|
(54.1)
|
|
|
Total Revenue
Adjustments
|
(480.8)
|
|
|
(444.0)
|
|
|
(545.1)
|
|
|
CIP
|
10.4
|
|
|
10.5
|
|
|
8.5
|
|
|
Net
revenues
|
$
|
1,092.5
|
|
|
$
|
1,034.3
|
|
|
$
|
1,228.7
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating income to Adjusted operating
income:
in
millions
|
Q3-20
|
|
Q2-20
|
|
Q3-19
|
|
Operating income,
U.S. GAAP basis
|
$
|
268.5
|
|
|
$
|
117.1
|
|
|
$
|
275.1
|
|
|
Invesco Great
Wall
|
37.7
|
|
|
25.6
|
|
|
24.2
|
|
|
CIP
|
14.8
|
|
|
12.0
|
|
|
17.9
|
|
|
Transaction,
integration, and restructuring
|
71.0
|
|
|
71.7
|
|
|
185.5
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
14.7
|
|
|
28.0
|
|
|
(0.1)
|
|
|
Fund rebalancing
correction (2)
|
—
|
|
|
105.3
|
|
|
—
|
|
|
Adjusted operating
income
|
$
|
406.7
|
|
|
$
|
359.7
|
|
|
$
|
502.6
|
|
|
|
|
|
|
|
|
|
Operating margin
(3)
|
17.9
|
%
|
|
8.3
|
%
|
|
16.0
|
%
|
|
Adjusted operating
margin (4)
|
37.2
|
%
|
|
34.8
|
%
|
|
40.9
|
%
|
|
Reconciliation of Net income attributable to Invesco Ltd. to
Adjusted net income attributable to Invesco Ltd.
in
millions
|
Q3-20
|
|
Q2-20
|
|
Q3-19
|
|
Net income
attributable to Invesco Ltd., U.S. GAAP basis
|
$
|
191.7
|
|
|
$
|
40.5
|
|
|
$
|
167.1
|
|
|
CIP
|
(9.6)
|
|
|
0.1
|
|
|
1.9
|
|
|
Transaction,
integration, and restructuring, net of tax
|
65.2
|
|
|
64.7
|
|
|
154.1
|
|
|
Deferred compensation
plan market valuation changes and dividend income less compensation
expense, net of tax
|
(7.1)
|
|
|
(22.6)
|
|
|
2.3
|
|
|
Fund rebalancing
correction, net of tax (2)
|
—
|
|
|
80.0
|
|
—
|
|
—
|
|
|
Foreign exchange
hedge, net of tax
|
—
|
|
|
(0.1)
|
|
|
(2.6)
|
|
|
Acquisition-related
contingent consideration, net of tax
|
0.2
|
|
|
(2.9)
|
|
|
2.4
|
|
|
Tax impact of
regulation changes (5)
|
3.6
|
|
|
—
|
|
|
—
|
|
|
Adjusted net income
attributable to Invesco Ltd. (6)
|
$
|
244.0
|
|
|
$
|
159.7
|
|
|
$
|
325.2
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - diluted
|
463.5
|
|
|
463.1
|
|
|
466.9
|
|
|
Diluted
EPS
|
$0.41
|
|
|
$0.09
|
|
|
$0.36
|
|
|
Adjusted diluted EPS
(7)
|
$0.53
|
|
|
$0.35
|
|
|
$0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating expenses to Adjusted operating
expenses:
in
millions
|
Q3-20
|
|
Q2-20
|
|
Q3-19
|
|
Operating expenses,
U.S. GAAP basis
|
$
|
1,229.1
|
|
|
$
|
1,301.9
|
|
|
$
|
1,445.5
|
|
|
Invesco Great
Wall
|
27.6
|
|
|
23.2
|
|
|
20.5
|
|
|
Third party
distribution, service and advisory expenses
|
(480.8)
|
|
|
(444.0)
|
|
|
(545.1)
|
|
|
CIP
|
(4.4)
|
|
|
(1.5)
|
|
|
(9.4)
|
|
|
Transaction,
integration, and restructuring
|
(71.0)
|
|
|
(71.7)
|
|
|
(185.5)
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(14.7)
|
|
|
(28.0)
|
|
|
0.1
|
|
|
Fund rebalancing
correction (2)
|
—
|
|
|
(105.3)
|
|
|
—
|
|
|
Adjusted operating
expenses
|
$
|
685.8
|
|
|
$
|
674.6
|
|
|
$
|
726.1
|
|
|
|
|
|
|
|
|
|
Employee
compensation, U.S. GAAP basis
|
$
|
444.5
|
|
|
$
|
454.6
|
|
|
$
|
446.0
|
|
|
Invesco Great
Wall
|
21.0
|
|
|
17.5
|
|
|
14.2
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(14.7)
|
|
|
(28.0)
|
|
|
0.1
|
|
|
Adjusted employee
compensation
|
$
|
450.8
|
|
|
$
|
444.1
|
|
|
$
|
460.3
|
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis
|
$
|
15.6
|
|
|
$
|
14.4
|
|
|
$
|
33.2
|
|
|
Invesco Great
Wall
|
2.4
|
|
|
2.2
|
|
|
2.3
|
|
|
Adjusted
marketing
|
$
|
18.0
|
|
|
$
|
16.6
|
|
|
$
|
35.5
|
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis
|
$
|
127.5
|
|
|
$
|
128.3
|
|
|
$
|
131.2
|
|
|
Invesco Great
Wall
|
2.7
|
|
|
2.3
|
|
|
2.4
|
|
|
Adjusted property,
office and technology
|
$
|
130.2
|
|
|
$
|
130.6
|
|
|
$
|
133.6
|
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis
|
$
|
89.7
|
|
|
$
|
188.9
|
|
|
$
|
104.5
|
|
|
Invesco Great
Wall
|
1.5
|
|
|
1.2
|
|
|
1.6
|
|
|
CIP
|
(4.4)
|
|
|
(1.5)
|
|
|
(9.4)
|
|
|
Fund rebalancing
correction (2)
|
—
|
|
|
(105.3)
|
|
|
—
|
|
|
Adjusted general and
administrative
|
$
|
86.8
|
|
|
$
|
83.3
|
|
|
$
|
96.7
|
|
|
|
|
|
|
|
|
|
Transaction,
integration, and restructuring, U.S. GAAP basis
|
$
|
71.0
|
|
|
$
|
71.7
|
|
|
$
|
185.5
|
|
|
Transaction,
integration, and restructuring
|
(71.0)
|
|
|
(71.7)
|
|
|
(185.5)
|
|
|
Adjusted transaction,
integration, and restructuring
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
In the fourth quarter
of 2019, the company changed its presentation of the reconciliation
between operating revenues and net revenues. All periods have been
conformed to the new presentation. Neither operating revenues nor
net revenues totals have changed for any historic
periods.
|
|
|
|
Management believes
that adjustments to investment management fees, service and
distribution fees and other revenues from operating revenues
appropriately reflect these revenues as being passed through to
external parties who perform functions on behalf of, and
distribute, the company's managed funds. Further, these adjustments
vary by geography due to the differences in distribution channels.
The net revenue presentation assists in identifying the revenue
contribution generated by the business, removing distortions caused
by the differing distribution channel fees and allowing for a fair
comparison with U.S. peer investment managers and within Invesco's
own investment units. Additionally, management evaluates net
revenue yield on AUM, which is equal to net revenues divided by
average AUM during the reporting period. This financial measure is
an indicator of the basis point net revenues we receive for each
dollar of AUM we manage and is useful when evaluating the company's
performance relative to industry competitors and within the company
for capital allocation purposes.
|
|
|
|
Investment management
fees are adjusted by renewal commissions and certain administrative
fees. Service and distribution fees are primarily adjusted by
distribution fees passed through to broker dealers for certain
share classes and pass through fund-related costs. Other is
primarily adjusted by transaction fees passed through to third
parties. While the terms used for these types of adjustments vary
by geography, they are all costs that are driven by AUM and the
revenue earned by Invesco from AUM. Since the company has been
deemed to be the principal in the third-party arrangements, the
company must reflect these adjustments as expenses gross of
operating revenues under U.S. GAAP in third-party expenses on the
consolidated statements of income.
|
(2)
|
The company recorded
a charge of $105.3 million in the second quarter of 2020 due to a
previously disclosed S&P 500 equal weight funds rebalancing
correction. Due to the unique character and magnitude of this item,
it has been adjusted from U.S. GAAP to arrive at the company's
non-GAAP financial measures.
|
(3)
|
Operating margin is
equal to operating income divided by operating revenues.
|
(4)
|
Adjusted operating
margin is equal to adjusted operating income divided by net
revenues.
|
(5)
|
Represents a non–cash
income tax expense arising from the revaluation of certain deferred
tax liabilities due to the increase in the UK corporate tax
rate.
|
(6)
|
The effective tax
rate on adjusted net income attributable to Invesco Ltd. is 24.2%
(second quarter: 24.4%; third quarter 2019: 22.0%).
|
(7)
|
Adjusted diluted EPS
is equal to adjusted net income attributable to Invesco Ltd.
divided by the weighted average number of common and restricted
common shares outstanding. There is no difference between the
calculated earnings per common share amounts presented above and
the calculated earnings per common share amounts under the two
class method.
|
Invesco
Ltd.
Quarterly Assets
Under Management
|
|
in
billions
|
Q3-20
|
|
Q2-20
|
|
%
Change
|
|
Q3-19
|
Beginning
Assets
|
$1,145.2
|
|
|
$1,053.4
|
|
|
8.7
|
%
|
|
$1,197.8
|
|
Long-term
inflows
|
71.9
|
|
|
62.7
|
|
|
14.7
|
%
|
|
58.6
|
|
Long-term
outflows
|
(64.1)
|
|
|
(76.9)
|
|
|
(16.6)
|
%
|
|
(69.7)
|
|
Long-term net
flows
|
7.8
|
|
|
(14.2)
|
|
|
N/A
|
|
|
(11.1)
|
|
Net flows in
non-management fee earning AUM(a)
|
7.0
|
|
|
(8.7)
|
|
|
N/A
|
|
|
2.7
|
|
Net flows in money
market funds
|
(3.5)
|
|
|
(6.6)
|
|
|
(47.0)
|
%
|
|
2.6
|
|
Total net
flows
|
11.3
|
|
|
(29.5)
|
|
|
N/A
|
|
|
(5.8)
|
|
Reinvested
distributions
|
1.0
|
|
|
1.8
|
|
|
(44.4)
|
%
|
|
2.2
|
|
Market gains and
losses
|
53.0
|
|
|
117.7
|
|
|
(55.0)
|
%
|
|
(1.6)
|
|
Foreign currency
translation
|
7.7
|
|
|
1.8
|
|
|
327.8
|
%
|
|
(8.2)
|
|
Ending
Assets
|
$1,218.2
|
|
|
$1,145.2
|
|
|
6.4
|
%
|
|
$1,184.4
|
|
|
|
|
|
|
|
|
|
Ending long-term
AUM
|
$963.7
|
|
|
$909.3
|
|
|
6.0
|
%
|
|
$970.8
|
|
Average long-term
AUM
|
$956.3
|
|
|
$879.3
|
|
|
8.8
|
%
|
|
$976.1
|
|
Average
AUM
|
$1,206.2
|
|
|
$1,118.7
|
|
|
7.8
|
%
|
|
$1,188.2
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(b)
|
51.9
|
bps
|
|
52.9
|
bps
|
|
|
|
59.8
|
bps
|
Gross revenue
yield on AUM before performance fees(b)
|
51.9
|
bps
|
|
52.7
|
bps
|
|
|
|
59.3
|
bps
|
Net revenue yield
on AUM(c)
|
36.2
|
bps
|
|
37.0
|
bps
|
|
|
|
41.4
|
bps
|
Net revenue yield
on AUM before performance fees(c)
|
36.0
|
bps
|
|
36.8
|
bps
|
|
|
|
40.7
|
bps
|
|
in
billions
|
|
|
|
Total
AUM
|
|
Active(f)
|
|
Passive(f)
|
June 30, 2020
|
|
|
|
$1,145.2
|
|
|
$863.5
|
|
|
$281.7
|
|
Long-term
inflows
|
|
|
|
71.9
|
|
|
50.0
|
|
|
21.9
|
|
Long-term
outflows
|
|
|
|
(64.1)
|
|
|
(48.2)
|
|
|
(15.9)
|
|
Long-term net
flows
|
|
|
|
7.8
|
|
|
1.8
|
|
|
6.0
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
7.0
|
|
|
—
|
|
|
7.0
|
|
Net flows in money
market funds
|
|
|
|
(3.5)
|
|
|
(3.5)
|
|
|
—
|
|
Total net
flows
|
|
|
|
11.3
|
|
|
(1.7)
|
|
|
13.0
|
|
Reinvested
distributions
|
|
|
|
1.0
|
|
|
1.0
|
|
|
—
|
|
Market gains and
losses
|
|
|
|
53.0
|
|
|
30.0
|
|
|
23.0
|
|
Foreign currency
translation
|
|
|
|
7.7
|
|
|
7.4
|
|
|
0.3
|
|
September 30,
2020
|
|
|
|
$1,218.2
|
|
|
$900.2
|
|
|
$318.0
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
|
|
|
$1,206.2
|
|
|
$898.5
|
|
|
$307.7
|
|
Gross revenue
yield on AUM(b)
|
|
|
|
51.9bps
|
|
|
63.3bps
|
|
|
20.5bps
|
|
Net revenue yield
on AUM(c)
|
|
|
|
36.2bps
|
|
|
44.8bps
|
|
|
11.4bps
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
|
|
|
Total
|
|
Retail
|
|
Institutional
|
June 30, 2020
|
|
|
|
$1,145.2
|
|
|
$788.4
|
|
|
$356.8
|
|
Long-term
inflows
|
|
|
|
71.9
|
|
|
52.2
|
|
|
19.7
|
|
Long-term
outflows
|
|
|
|
(64.1)
|
|
|
(52.5)
|
|
|
(11.6)
|
|
Long-term net
flows
|
|
|
|
7.8
|
|
|
(0.3)
|
|
|
8.1
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
7.0
|
|
|
5.3
|
|
|
1.7
|
|
Net flows in money
market funds
|
|
|
|
(3.5)
|
|
|
0.8
|
|
|
(4.3)
|
|
Total net
flows
|
|
|
|
11.3
|
|
|
5.8
|
|
|
5.5
|
|
Reinvested
distributions
|
|
|
|
1.0
|
|
|
0.9
|
|
|
0.1
|
|
Market gains and
losses
|
|
|
|
53.0
|
|
|
47.2
|
|
|
5.8
|
|
Foreign currency
translation
|
|
|
|
7.7
|
|
|
3.8
|
|
|
3.9
|
|
September 30,
2020
|
|
|
|
$1,218.2
|
|
|
$846.1
|
|
|
$372.1
|
|
|
|
|
|
|
|
|
|
|
|
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
(e)
|
|
Alternatives(d)
|
June 30, 2020
|
$1,145.2
|
|
|
$544.9
|
|
|
$260.7
|
|
|
$60.9
|
|
|
$111.5
|
|
|
$167.2
|
|
Long-term
inflows
|
71.9
|
|
|
27.9
|
|
|
24.4
|
|
|
9.6
|
|
|
—
|
|
|
10.0
|
|
Long-term
outflows
|
(64.1)
|
|
|
(32.0)
|
|
|
(15.6)
|
|
|
(7.1)
|
|
|
—
|
|
|
(9.4)
|
|
Long-term net
flows
|
7.8
|
|
|
(4.1)
|
|
|
8.8
|
|
|
2.5
|
|
|
—
|
|
|
0.6
|
|
Net flows in
non-management fee earning AUM(a)
|
7.0
|
|
|
5.4
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
(3.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.5)
|
|
|
—
|
|
Total net
flows
|
11.3
|
|
|
1.3
|
|
|
10.4
|
|
|
2.5
|
|
|
(3.5)
|
|
|
0.6
|
|
Reinvested
distributions
|
1.0
|
|
|
0.2
|
|
|
0.5
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Market gains and
losses
|
53.0
|
|
|
43.6
|
|
|
3.4
|
|
|
3.3
|
|
|
0.2
|
|
|
2.5
|
|
Foreign currency
translation
|
7.7
|
|
|
2.4
|
|
|
1.4
|
|
|
1.3
|
|
|
1.1
|
|
|
1.5
|
|
September 30,
2020
|
$1,218.2
|
|
|
$592.4
|
|
|
$276.4
|
|
|
$68.1
|
|
|
$109.3
|
|
|
$172.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$1,206.2
|
|
|
$583.6
|
|
|
$271.8
|
|
|
$66.2
|
|
|
$111.6
|
|
|
$173.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
|
|
|
Total
|
|
Americas
|
|
U.K
|
|
EMEA Ex
UK
|
|
Asia
|
June 30, 2020
|
|
|
|
$1,145.2
|
|
|
$829.8
|
|
|
$55.1
|
|
|
$130.9
|
|
|
$129.4
|
|
Long-term
inflows
|
|
|
|
71.9
|
|
|
33.8
|
|
|
4.9
|
|
|
13.2
|
|
|
20.0
|
|
Long-term
outflows
|
|
|
|
(64.1)
|
|
|
(38.2)
|
|
|
(3.5)
|
|
|
(10.4)
|
|
|
(12.0)
|
|
Long-term net
flows
|
|
|
|
7.8
|
|
|
(4.4)
|
|
|
1.4
|
|
|
2.8
|
|
|
8.0
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
7.0
|
|
|
6.3
|
|
|
—
|
|
|
0.5
|
|
|
0.2
|
|
Net flows in money
market funds
|
|
|
|
(3.5)
|
|
|
(5.5)
|
|
|
—
|
|
|
(0.2)
|
|
|
2.2
|
|
Total net
flows
|
|
|
|
11.3
|
|
|
(3.6)
|
|
|
1.4
|
|
|
3.1
|
|
|
10.4
|
|
Reinvested
distributions
|
|
|
|
1.0
|
|
|
0.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Market gains and
losses
|
|
|
|
53.0
|
|
|
44.0
|
|
|
—
|
|
|
4.2
|
|
|
4.8
|
|
Foreign currency
translation
|
|
|
|
7.7
|
|
|
0.5
|
|
|
2.4
|
|
|
1.7
|
|
|
3.1
|
|
September 30,
2020
|
|
|
|
$1,218.2
|
|
|
$871.6
|
|
|
$59.0
|
|
|
$139.9
|
|
|
$147.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(f)
|
|
|
|
|
|
|
|
in
billions
|
|
|
|
|
|
|
Q3-20
|
|
Q2-20
|
|
%
Change
|
|
Q3-19
|
Beginning
Assets
|
|
|
|
|
|
|
$281.7
|
|
|
$246.1
|
|
|
14.5
|
%
|
|
$270.2
|
|
Long-term
inflows
|
|
|
|
|
|
|
21.9
|
|
|
20.4
|
|
|
7.4
|
%
|
|
20.2
|
|
Long-term
outflows
|
|
|
|
|
|
|
(15.9)
|
|
|
(21.2)
|
|
|
(25.0)
|
%
|
|
(15.6)
|
|
Long-term net
flows
|
|
|
|
|
|
|
6.0
|
|
|
(0.8)
|
|
|
N/A
|
|
|
4.6
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
|
|
|
7.0
|
|
|
(8.7)
|
|
|
N/A
|
|
|
2.8
|
|
Net flows in money
market funds
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
Total net
flows
|
|
|
|
|
|
|
13.0
|
|
|
(9.5)
|
|
|
N/A
|
|
|
7.4
|
|
Market gains and
losses
|
|
|
|
|
|
|
23.0
|
|
|
44.9
|
|
|
(48.8)
|
%
|
|
0.2
|
|
Foreign currency
translation
|
|
|
|
|
|
|
0.3
|
|
|
0.2
|
|
|
50.0
|
%
|
|
(0.4)
|
|
Ending
Assets
|
|
|
|
|
|
|
$318.0
|
|
|
$281.7
|
|
|
12.9
|
%
|
|
$277.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
|
|
|
|
|
|
$169.4
|
|
|
$150.6
|
|
|
12.5
|
%
|
|
$158.5
|
|
Average
AUM
|
|
|
|
|
|
|
$307.7
|
|
|
$269.9
|
|
|
14.0
|
%
|
|
$272.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(b)
|
|
|
|
|
|
|
20.5
|
bps
|
|
20.9
|
bps
|
|
|
|
23.8
|
bps
|
Gross revenue
yield on AUM before performance fees(b)
|
|
|
|
|
|
|
20.5
|
bps
|
|
20.9
|
bps
|
|
|
|
23.8
|
bps
|
Net revenue yield
on AUM(c)
|
|
|
|
|
|
|
11.4
|
bps
|
|
12.1
|
bps
|
|
|
|
15.0
|
bps
|
Net revenue yield
on AUM before performance fees(c)
|
|
|
|
|
|
|
11.4
|
bps
|
|
12.1
|
bps
|
|
|
|
15.0
|
bps
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
|
|
|
|
|
|
|
|
|
Total
|
|
Retail
|
|
Institutional
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
$281.7
|
|
|
$270.4
|
|
|
$11.3
|
|
Long-term
inflows
|
|
|
|
|
|
|
|
|
|
21.9
|
|
|
21.4
|
|
|
0.5
|
|
Long-term
outflows
|
|
|
|
|
|
|
|
|
|
(15.9)
|
|
|
(15.6)
|
|
|
(0.3)
|
|
Long-term net
flows
|
|
|
|
|
|
|
|
|
|
6.0
|
|
|
5.8
|
|
|
0.2
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
|
|
|
|
|
|
7.0
|
|
|
5.3
|
|
|
1.7
|
|
Net flows in money
market funds
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
|
|
|
|
|
|
|
|
|
13.0
|
|
|
11.1
|
|
|
1.9
|
|
Market gains and
losses
|
|
|
|
|
|
|
|
|
|
23.0
|
|
|
22.3
|
|
|
0.7
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
|
—
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
$318.0
|
|
|
$304.1
|
|
|
$13.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market(e)
|
|
Alternatives(d)
|
June 30, 2020
|
$281.7
|
|
|
$228.3
|
|
|
$30.6
|
|
|
$0.8
|
|
|
$—
|
|
|
$22.0
|
|
Long-term
inflows
|
21.9
|
|
|
13.4
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
Long-term
outflows
|
(15.9)
|
|
|
(10.7)
|
|
|
(1.7)
|
|
|
—
|
|
|
—
|
|
|
(3.5)
|
|
Long-term net
flows
|
6.0
|
|
|
2.7
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
Net flows in
non-management fee earning AUM(a)
|
7.0
|
|
|
5.4
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
13.0
|
|
|
8.1
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
Market gains and
losses
|
23.0
|
|
|
21.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Foreign currency
translation
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30,
2020
|
$318.0
|
|
|
$258.4
|
|
|
$33.6
|
|
|
$0.8
|
|
|
$—
|
|
|
$25.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$307.7
|
|
|
$249.3
|
|
|
$32.8
|
|
|
$0.8
|
|
|
$—
|
|
|
$24.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(f) (continued)
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
U.K
|
|
EMEA Ex
UK
|
|
Asia
|
June 30, 2020
|
$281.7
|
|
|
$229.0
|
|
|
$0.6
|
|
|
$46.0
|
|
|
$6.1
|
|
Long-term
inflows
|
21.9
|
|
|
11.9
|
|
|
0.2
|
|
|
9.1
|
|
|
0.7
|
|
Long-term
outflows
|
(15.9)
|
|
|
(9.5)
|
|
|
(0.1)
|
|
|
(5.7)
|
|
|
(0.6)
|
|
Long-term net
flows
|
6.0
|
|
|
2.4
|
|
|
0.1
|
|
|
3.4
|
|
|
0.1
|
|
Net flows in
non-management fee earning AUM(a)
|
7.0
|
|
|
6.3
|
|
|
—
|
|
|
0.5
|
|
|
0.2
|
|
Net flows in money
market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
13.0
|
|
|
8.7
|
|
|
0.1
|
|
|
3.9
|
|
|
0.3
|
|
Market gains and
losses
|
23.0
|
|
|
18.8
|
|
|
—
|
|
|
3.7
|
|
|
0.5
|
|
Foreign currency
translation
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
September 30,
2020
|
$318.0
|
|
|
$256.5
|
|
|
$0.7
|
|
|
$53.9
|
|
|
$6.9
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Year-to-Date
Assets Under Management
|
|
in
billions
|
September 30,
2020
|
|
September 30,
2019
|
|
%
Change
|
Beginning
Assets
|
$1,226.2
|
|
|
$888.2
|
|
|
38.1
|
%
|
Long-term
inflows
|
219.3
|
|
|
166.8
|
|
|
31.5
|
%
|
Long-term
outflows
|
(244.8)
|
|
|
(187.2)
|
|
|
30.8
|
%
|
Long-term net
flows
|
(25.5)
|
|
|
(20.4)
|
|
|
25.0
|
%
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
8.5
|
|
|
N/A
|
|
Net flows in money
market funds
|
16.2
|
|
|
5.1
|
|
|
217.6
|
%
|
Total net
flows
|
(20.3)
|
|
|
(6.8)
|
|
|
198.5
|
%
|
Reinvested
distributions
|
3.9
|
|
|
4.9
|
|
|
(20.4)
|
%
|
Market gains and
losses
|
8.0
|
|
|
80.8
|
|
|
(90.1)
|
%
|
Acquisitions
(g)
|
—
|
|
|
224.4
|
|
|
N/A
|
|
Foreign currency
translation
|
0.4
|
|
|
(7.1)
|
|
|
N/A
|
|
Ending
Assets
|
$1,218.2
|
|
|
$1,184.4
|
|
|
2.9
|
%
|
|
|
|
|
|
|
Average long-term
AUM
|
$930.3
|
|
|
$853.9
|
|
|
8.9
|
%
|
Average
AUM
|
$1,167.1
|
|
|
$1,059.0
|
|
|
10.2
|
%
|
|
|
|
|
|
|
Gross revenue
yield on AUM(b)
|
53.7
|
bps
|
|
56.9
|
bps
|
|
|
Gross revenue
yield on AUM before performance fees(b)
|
53.6
|
bps
|
|
56.3
|
bps
|
|
|
Net revenue yield
on AUM(c)
|
37.4
|
bps
|
|
39.6
|
bps
|
|
|
Net revenue yield
on AUM before performance fees(c)
|
37.1
|
bps
|
|
38.9
|
bps
|
|
|
|
in
billions
|
Total
AUM
|
|
Active(f)
|
|
Passive(f)
|
December 31,
2019
|
$1,226.2
|
|
|
$929.2
|
|
|
$297.0
|
|
Long-term
inflows
|
219.3
|
|
|
147.0
|
|
|
72.3
|
|
Long-term
outflows
|
(244.8)
|
|
|
(179.2)
|
|
|
(65.6)
|
|
Long-term net
flows
|
(25.5)
|
|
|
(32.2)
|
|
|
6.7
|
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
—
|
|
|
(11.0)
|
|
Net flows in money
market funds
|
16.2
|
|
|
16.2
|
|
|
—
|
|
Total net
flows
|
(20.3)
|
|
|
(16.0)
|
|
|
(4.3)
|
|
Reinvested
distributions
|
3.9
|
|
|
3.9
|
|
|
—
|
|
Market gains and
losses
|
8.0
|
|
|
(17.2)
|
|
|
25.2
|
|
Foreign currency
translation
|
0.4
|
|
|
0.3
|
|
|
0.1
|
|
September 30,
2020
|
$1,218.2
|
|
|
$900.2
|
|
|
$318.0
|
|
|
|
|
|
|
|
Average
AUM
|
$1,167.1
|
|
|
$878.9
|
|
|
$288.2
|
|
Gross revenue
yield on AUM(b)
|
53.7
|
bps
|
|
64.9
|
bps
|
|
21.4
|
bps
|
Net revenue yield
on AUM(c)
|
37.4
|
bps
|
|
45.6
|
bps
|
|
12.2
|
bps
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2019
|
$1,226.2
|
|
|
$878.2
|
|
|
$348.0
|
|
Long-term
inflows
|
219.3
|
|
|
157.4
|
|
|
61.9
|
|
Long-term
outflows
|
(244.8)
|
|
|
(202.6)
|
|
|
(42.2)
|
|
Long-term net
flows
|
(25.5)
|
|
|
(45.2)
|
|
|
19.7
|
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
6.1
|
|
|
(17.1)
|
|
Net flows in money
market funds
|
16.2
|
|
|
3.4
|
|
|
12.8
|
|
Total net
flows
|
(20.3)
|
|
|
(35.7)
|
|
|
15.4
|
|
Reinvested
distributions
|
3.9
|
|
|
3.7
|
|
|
0.2
|
|
Market gains and
losses
|
8.0
|
|
|
0.9
|
|
|
7.1
|
|
Foreign currency
translation
|
0.4
|
|
|
(1.0)
|
|
|
1.4
|
|
September 30,
2020
|
$1,218.2
|
|
|
$846.1
|
|
|
$372.1
|
|
Invesco
Ltd.
Year-to-Date
Assets Under Management (continued)
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money Market
(e)
|
|
Alternatives(d)
|
December 31,
2019
|
$1,226.2
|
|
|
$598.8
|
|
|
$283.5
|
|
|
$67.3
|
|
|
$91.4
|
|
|
$185.2
|
|
Long-term
inflows
|
219.3
|
|
|
88.9
|
|
|
76.2
|
|
|
20.8
|
|
|
—
|
|
|
33.4
|
|
Long-term
outflows
|
(244.8)
|
|
|
(126.8)
|
|
|
(58.3)
|
|
|
(20.8)
|
|
|
—
|
|
|
(38.9)
|
|
Long-term net
flows
|
(25.5)
|
|
|
(37.9)
|
|
|
17.9
|
|
|
—
|
|
|
—
|
|
|
(5.5)
|
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
16.0
|
|
|
(27.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
16.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.2
|
|
|
—
|
|
Total net
flows
|
(20.3)
|
|
|
(21.9)
|
|
|
(9.1)
|
|
|
—
|
|
|
16.2
|
|
|
(5.5)
|
|
Reinvested
distributions
|
3.9
|
|
|
1.2
|
|
|
1.4
|
|
|
0.4
|
|
|
—
|
|
|
0.9
|
|
Market gains and
losses
|
8.0
|
|
|
15.2
|
|
|
0.3
|
|
|
0.1
|
|
|
1.3
|
|
|
(8.9)
|
|
Foreign currency
translation
|
0.4
|
|
|
(0.9)
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
September 30,
2020
|
$1,218.2
|
|
|
$592.4
|
|
|
$276.4
|
|
|
$68.1
|
|
|
$109.3
|
|
|
$172.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$1,167.1
|
|
|
$551.4
|
|
|
$271.0
|
|
|
$62.7
|
|
|
$109.4
|
|
|
$172.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
|
|
|
Total
|
|
Americas
|
|
U.K
|
|
EMEA Ex
UK
|
|
Asia
|
December 31,
2019
|
|
|
|
$1,226.2
|
|
|
$879.5
|
|
|
$74.4
|
|
|
$143.7
|
|
|
$128.6
|
|
Long-term
inflows
|
|
|
|
219.3
|
|
|
125.6
|
|
|
8.1
|
|
|
43.0
|
|
|
42.6
|
|
Long-term
outflows
|
|
|
|
(244.8)
|
|
|
(158.3)
|
|
|
(14.5)
|
|
|
(39.6)
|
|
|
(32.4)
|
|
Long-term net
flows
|
|
|
|
(25.5)
|
|
|
(32.7)
|
|
|
(6.4)
|
|
|
3.4
|
|
|
10.2
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
(11.0)
|
|
|
(2.5)
|
|
|
(0.1)
|
|
|
(9.1)
|
|
|
0.7
|
|
Net flows in money
market funds
|
|
|
|
16.2
|
|
|
13.7
|
|
|
0.1
|
|
|
—
|
|
|
2.4
|
|
Total net
flows
|
|
|
|
(20.3)
|
|
|
(21.5)
|
|
|
(6.4)
|
|
|
(5.7)
|
|
|
13.3
|
|
Reinvested
distributions
|
|
|
|
3.9
|
|
|
3.7
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Market gains and
losses
|
|
|
|
8.0
|
|
|
10.6
|
|
|
(7.2)
|
|
|
1.1
|
|
|
3.5
|
|
Foreign currency
translation
|
|
|
|
0.4
|
|
|
(0.7)
|
|
|
(1.9)
|
|
|
0.8
|
|
|
2.2
|
|
September 30,
2020
|
|
|
|
$1,218.2
|
|
|
$871.6
|
|
|
$59.0
|
|
|
$139.9
|
|
|
$147.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Year-to-Date
Assets Under Management - Passive(f)
|
|
in
billions
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
September 30,
2019
|
|
%
Change
|
Beginning
Assets
|
|
|
|
|
|
|
|
|
|
$297.0
|
|
|
$221.0
|
|
|
34.4
|
%
|
Long-term
inflows
|
|
|
|
|
|
|
|
|
|
72.3
|
|
|
60.4
|
|
|
19.7
|
%
|
Long-term
outflows
|
|
|
|
|
|
|
|
|
|
(65.6)
|
|
|
(47.3)
|
|
|
38.7
|
%
|
Long-term net
flows
|
|
|
|
|
|
|
|
|
|
6.7
|
|
|
13.1
|
|
|
(48.9)
|
%
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
|
|
|
|
|
|
(11.0)
|
|
|
8.6
|
|
|
N/A
|
|
Net flows in money
market funds
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
Total net
flows
|
|
|
|
|
|
|
|
|
|
(4.3)
|
|
|
21.7
|
|
|
N/A
|
|
Market gains and
losses
|
|
|
|
|
|
|
|
|
|
25.2
|
|
|
30.6
|
|
|
(17.6)
|
%
|
Acquisitions(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
4.5
|
|
|
N/A
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
(0.4)
|
|
|
N/A
|
|
Ending
Assets
|
|
|
|
|
|
|
|
|
|
$318.0
|
|
|
$277.4
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
|
|
|
|
|
|
|
|
|
$160.8
|
|
|
$148.0
|
|
|
8.6
|
%
|
Average
AUM
|
|
|
|
|
|
|
|
|
|
$288.2
|
|
|
$256.9
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(b)
|
|
|
|
|
|
|
|
|
|
21.4
|
bps
|
|
24.0
|
bps
|
|
|
Gross revenue
yield on AUM before performance fees(b)
|
|
|
|
|
|
|
|
|
|
21.4
|
bps
|
|
24.0
|
bps
|
|
|
Net revenue yield
on AUM(c)
|
|
|
|
|
|
|
|
|
|
12.2
|
bps
|
|
14.5
|
bps
|
|
|
Net revenue yield
on AUM before performance fees(c)
|
|
|
|
|
|
|
|
|
|
12.2
|
bps
|
|
14.5
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
|
|
|
|
|
|
|
|
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
$297.0
|
|
|
$275.8
|
|
|
$21.2
|
|
Long-term
inflows
|
|
|
|
|
|
|
|
|
|
72.3
|
|
|
64.3
|
|
|
8.0
|
|
Long-term
outflows
|
|
|
|
|
|
|
|
|
|
(65.6)
|
|
|
(64.9)
|
|
|
(0.7)
|
|
Long-term net
flows
|
|
|
|
|
|
|
|
|
|
6.7
|
|
|
(0.6)
|
|
|
7.3
|
|
Net flows in
non-management fee earning AUM(a)
|
|
|
|
|
|
|
|
|
|
(11.0)
|
|
|
6.1
|
|
|
(17.1)
|
|
Net flows in money
market funds
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
|
|
|
|
|
|
|
|
|
(4.3)
|
|
|
5.5
|
|
|
(9.8)
|
|
Market gains and
losses
|
|
|
|
|
|
|
|
|
|
25.2
|
|
|
22.7
|
|
|
2.5
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
$318.0
|
|
|
$304.1
|
|
|
$13.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market(e)
|
|
Alternatives(d)
|
December 31,
2019
|
$297.0
|
|
|
$217.1
|
|
|
$58.9
|
|
|
$0.9
|
|
|
$—
|
|
|
$20.1
|
|
Long-term
inflows
|
72.3
|
|
|
45.9
|
|
|
9.8
|
|
|
—
|
|
|
—
|
|
|
16.6
|
|
Long-term
outflows
|
(65.6)
|
|
|
(45.7)
|
|
|
(7.3)
|
|
|
—
|
|
|
—
|
|
|
(12.6)
|
|
Long-term net
flows
|
6.7
|
|
|
0.2
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
16.0
|
|
|
(27.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
(4.3)
|
|
|
16.2
|
|
|
(24.5)
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
Market gains and
losses
|
25.2
|
|
|
25.0
|
|
|
(0.8)
|
|
|
(0.1)
|
|
|
—
|
|
|
1.1
|
|
Foreign currency
translation
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30,
2020
|
$318.0
|
|
|
$258.4
|
|
|
$33.6
|
|
|
$0.8
|
|
|
$—
|
|
|
$25.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$288.2
|
|
|
$223.3
|
|
|
$42.1
|
|
|
$0.8
|
|
|
$—
|
|
|
$22.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Year-to-Date
Assets Under Management - Passive(f)
(continued)
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
U.K
|
|
EMEA Ex
UK
|
|
Asia
|
December 31,
2019
|
$297.0
|
|
|
$240.0
|
|
|
$0.7
|
|
|
$51.4
|
|
|
$4.9
|
|
Long-term
inflows
|
72.3
|
|
|
42.4
|
|
|
0.6
|
|
|
27.4
|
|
|
1.9
|
|
Long-term
outflows
|
(65.6)
|
|
|
(43.7)
|
|
|
(0.5)
|
|
|
(20.0)
|
|
|
(1.4)
|
|
Long-term net
flows
|
6.7
|
|
|
(1.3)
|
|
|
0.1
|
|
|
7.4
|
|
|
0.5
|
|
Net flows in
non-management fee earning AUM(a)
|
(11.0)
|
|
|
(2.5)
|
|
|
(0.1)
|
|
|
(9.1)
|
|
|
0.7
|
|
Net flows in money
market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
(4.3)
|
|
|
(3.8)
|
|
|
—
|
|
|
(1.7)
|
|
|
1.2
|
|
Market gains and
losses
|
25.2
|
|
|
20.4
|
|
|
—
|
|
|
4.0
|
|
|
0.8
|
|
Foreign currency
translation
|
0.1
|
|
|
(0.1)
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
September 30,
2020
|
$318.0
|
|
|
$256.5
|
|
|
$0.7
|
|
|
$53.9
|
|
|
$6.9
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
|
Footnotes to the
Assets Under Management Tables
|
|
|
(a)
|
Non-management fee
earning AUM includes non-management fee earning ETFs, UIT and
product leverage.
|
|
|
(b)
|
Gross revenue yield
on AUM is equal to annualized total operating revenues divided by
average AUM, excluding Invesco Great Wall AUM. The average
AUM for Invesco Great Wall in the three and nine months ended
September 30, 2020 was $51.0 billion and $46.5 billion (three
and six months ended June 30, 2020: $45.1 billion and $44.2
billion; three and nine months ended September 30, 2019:
$37.4 billion and $34.7 billion)
|
|
|
|
It is appropriate to
exclude the average AUM of Invesco Great Wall 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 Invesco
Great Wall 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.
|
|
|
(c)
|
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 10 of this release for a reconciliation of operating
revenues to net revenues.
|
|
|
(d)
|
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.
|
|
|
(e)
|
Long-term AUM
excludes money market and non-management fee earning AUM. Ending
AUM as of September 30, 2020 includes $109.3 billion in money
market AUM and $145.2 billion in non-management fee earning AUM
(June 30, 2020: $111.5 billion and $124.4 billion,
respectively; September 30, 2019: $97.8 billion and $115.9
billion, respectively).
|
|
|
(f)
|
Passive AUM include
index-based ETFs, unit investment trusts (UITs), non-fee earning
leverage and other passive mandates. Active AUM is total AUM less
Passive AUM.
|
|
|
(g)
|
The acquisition of
OppenheimerFunds business on May 24, 2019 added $224.4 billion in
AUM at that date.
|
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
(1)
|
1yr
|
3yr
|
5yr
|
10yr
|
1yr
|
3yr
|
5yr
|
10yr
|
U.S.
Core (5%)
|
17
|
%
|
15
|
%
|
13
|
%
|
15
|
%
|
27
|
%
|
26
|
%
|
26
|
%
|
16
|
%
|
U.S.
Growth (6%)
|
87
|
%
|
43
|
%
|
51
|
%
|
43
|
%
|
100
|
%
|
51
|
%
|
87
|
%
|
51
|
%
|
U.S.
Value (7%)
|
11
|
%
|
9
|
%
|
8
|
%
|
11
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
Sector (1%)
|
71
|
%
|
97
|
%
|
75
|
%
|
95
|
%
|
76
|
%
|
55
|
%
|
55
|
%
|
55
|
%
|
UK
(1%)
|
23
|
%
|
22
|
%
|
17
|
%
|
44
|
%
|
6
|
%
|
6
|
%
|
22
|
%
|
26
|
%
|
Canadian (0%)
|
—
|
%
|
—
|
%
|
—
|
%
|
11
|
%
|
10
|
%
|
—
|
%
|
—
|
%
|
10
|
%
|
Asian (3%)
|
82
|
%
|
82
|
%
|
96
|
%
|
90
|
%
|
43
|
%
|
59
|
%
|
86
|
%
|
87
|
%
|
Continental
European (2%)
|
41
|
%
|
6
|
%
|
38
|
%
|
75
|
%
|
7
|
%
|
5
|
%
|
5
|
%
|
73
|
%
|
Global (7%)
|
72
|
%
|
67
|
%
|
70
|
%
|
87
|
%
|
75
|
%
|
36
|
%
|
38
|
%
|
45
|
%
|
Global Ex U.S. and
Emerging Markets (13%)
|
86
|
%
|
88
|
%
|
89
|
%
|
98
|
%
|
32
|
%
|
87
|
%
|
70
|
%
|
88
|
%
|
Fixed Income
(1)
|
|
|
|
|
|
|
|
|
Money
Market (17%)
|
79
|
%
|
99
|
%
|
100
|
%
|
100
|
%
|
79
|
%
|
79
|
%
|
80
|
%
|
98
|
%
|
U.S. Fixed
Income (12%)
|
49
|
%
|
79
|
%
|
84
|
%
|
95
|
%
|
47
|
%
|
57
|
%
|
89
|
%
|
93
|
%
|
Global Fixed
Income (6%)
|
85
|
%
|
75
|
%
|
72
|
%
|
96
|
%
|
67
|
%
|
34
|
%
|
60
|
%
|
65
|
%
|
Stable
Value (5%)
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
97
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
(1)
|
|
|
|
|
|
|
|
|
Alternatives (8%)
|
28
|
%
|
29
|
%
|
77
|
%
|
36
|
%
|
24
|
%
|
37
|
%
|
45
|
%
|
53
|
%
|
Balanced (7%)
|
74
|
%
|
49
|
%
|
50
|
%
|
58
|
%
|
48
|
%
|
44
|
%
|
51
|
%
|
57
|
%
|
|
|
Note:
|
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. AUM measured in the one,
three, five and ten year quartile rankings represents 54%, 53%, 53%
and 48% of total Invesco AUM, respectively, and AUM measured versus
benchmark on a one, three, five and ten year basis represents 64%,
64%, 62% and 56% of total Invesco AUM as of 9/30/20. 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 asset-weighted in
USD. Rankings are as of prior quarter-end for most institutional
products and prior month-end for Australian retail funds due to
their late release by third parties. Rankings are calculated
against all funds in each peer group. Rankings for the primary
share class of the most representative fund in each composite are
applied to all products within each composite. Performance assumes
the reinvestment of dividends. Past performance is not indicative
of future results and may not reflect an investor's
experience.
|
|
|
(1)
|
Numbers in
parenthesis reflect percentage of 5 year total ranked AUM. As of
September 30, 2020. Total ranked AUM is $658.2 billion (54% of
total Invesco AUM) for 1 year, $650.4 billion (53% of total Invesco
AUM) for 3 year, $642.2 billion (53% of total Invesco AUM) for 5
year and $582.6 billion (48% of total Invesco AUM) for 10
year.
|
Invesco
Ltd.
Supplemental
Information(1)
|
|
|
For the three
months ended
September 30,
2020
|
|
For the three
months ended
September 30,
2019
|
Cash flow
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP
cash and cash equivalents, beginning of period
|
$
|
1,271.2
|
|
|
$
|
284.1
|
|
|
$
|
987.1
|
|
|
$
|
1,435.3
|
|
|
$
|
235.9
|
|
|
$
|
1,199.4
|
|
Cash flows from
operating activities
|
401.8
|
|
|
(46.4)
|
|
|
448.2
|
|
|
321.9
|
|
|
(38.4)
|
|
|
360.3
|
|
Cash flows from
investing activities
|
(86.0)
|
|
|
(69.2)
|
|
|
(16.8)
|
|
|
(235.0)
|
|
|
(91.4)
|
|
|
(143.6)
|
|
Cash flows from
financing activities
|
(301.6)
|
|
|
73.2
|
|
|
(374.8)
|
|
|
35.8
|
|
|
382.9
|
|
|
(347.1)
|
|
Increase/(decrease)
in cash and cash equivalents
|
14.2
|
|
|
(42.4)
|
|
|
56.6
|
|
|
122.7
|
|
|
253.1
|
|
|
(130.4)
|
|
Foreign exchange
movement on cash and cash equivalents
|
35.3
|
|
|
12.4
|
|
|
22.9
|
|
|
(23.9)
|
|
|
(3.5)
|
|
|
(20.4)
|
|
Net cash inflows
(outflows) upon consolidation/deconsolidation of CIP
|
(0.1)
|
|
|
(0.1)
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
Invesco and CIP
cash and cash equivalents, end of the period
|
$
|
1,320.6
|
|
|
$
|
254.0
|
|
|
$
|
1,066.6
|
|
|
$
|
1,534.3
|
|
|
$
|
485.7
|
|
|
$
|
1,048.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
September 30,
2020
|
|
For the nine
months ended
September 30,
2019
|
Cash flow
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP
cash and cash equivalents, beginning of period
|
$
|
1,701.2
|
|
|
$
|
652.2
|
|
|
$
|
1,049.0
|
|
|
$
|
1,805.4
|
|
|
$
|
657.7
|
|
|
$
|
1,147.7
|
|
Cash flows from
operating activities(2)
|
662.7
|
|
|
(54.2)
|
|
|
716.9
|
|
|
669.3
|
|
|
(116.3)
|
|
|
785.6
|
|
Cash flows from
investing activities
|
(829.0)
|
|
|
(756.7)
|
|
|
(72.3)
|
|
|
(769.3)
|
|
|
(934.3)
|
|
|
165.0
|
|
Cash flows from
financing activities(2)
|
(230.3)
|
|
|
391.3
|
|
|
(621.6)
|
|
|
(140.2)
|
|
|
893.6
|
|
|
(1,033.8)
|
|
Increase/(decrease)
in cash and cash equivalents
|
(396.6)
|
|
|
(419.6)
|
|
|
23.0
|
|
|
(240.2)
|
|
|
(157.0)
|
|
|
(83.2)
|
|
Foreign exchange
movement on cash and cash equivalents
|
6.9
|
|
|
12.3
|
|
|
(5.4)
|
|
|
(23.5)
|
|
|
(7.6)
|
|
|
(15.9)
|
|
Net cash inflows
(outflows) upon consolidation/deconsolidation of CIP
|
9.1
|
|
|
9.1
|
|
|
—
|
|
|
(7.4)
|
|
|
(7.4)
|
|
|
—
|
|
Invesco and CIP
cash and cash equivalents, end of the period
|
$
|
1,320.6
|
|
|
$
|
254.0
|
|
|
$
|
1,066.6
|
|
|
$
|
1,534.3
|
|
|
$
|
485.7
|
|
|
$
|
1,048.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These tables include
non-GAAP presentations. Cash held by CIP is not available for
use by Invesco. Additionally, there is no recourse to Invesco
for CIP debt. The cash flows of CIP do not form part of the
company's cash flow management processes, nor do they form part of
the company's significant liquidity evaluations and decisions.
Policyholder assets and liabilities are equal and offsetting and
have no impact on Invesco's shareholder's equity. The impact
of cash inflows/outflows from policyholder assets and liabilities
are reflected within cash flows from operating activities as
changes in receivable and/or payables, as applicable.
|
|
|
(2)
|
Certain
reclassifications have been made to prior period amounts to conform
to the current period presentation.
|
Invesco
Ltd.
Supplemental
Information(1)
|
|
|
As of September
30, 2020
|
|
As of December 31,
2019
|
Balance Sheet
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Impact of
Policyholders
|
|
As
Adjusted
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Impact of
Policyholders
|
|
As
Adjusted
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,066.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,066.6
|
|
|
$
|
1,049.0
|
|
|
—
|
|
|
—
|
|
|
$
|
1,049.0
|
|
Unsettled fund
receivables
|
317.5
|
|
|
—
|
|
|
—
|
|
|
317.5
|
|
|
162.7
|
|
|
—
|
|
|
—
|
|
|
162.7
|
|
Investments
|
769.8
|
|
|
(476.4)
|
|
|
—
|
|
|
1,246.2
|
|
|
829.5
|
|
|
(640.2)
|
|
|
—
|
|
|
1,469.7
|
|
Investments and other
assets of CIP
|
7,920.3
|
|
|
7,920.3
|
|
|
—
|
|
|
—
|
|
|
7,980.9
|
|
|
7,980.9
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents of CIP
|
254.0
|
|
|
254.0
|
|
|
—
|
|
|
—
|
|
|
652.2
|
|
|
652.2
|
|
|
—
|
|
|
—
|
|
Assets held for
policyholders
|
7,882.5
|
|
|
—
|
|
|
7,882.5
|
|
|
—
|
|
|
10,835.6
|
|
|
—
|
|
|
10,835.6
|
|
|
—
|
|
Goodwill and
intangible assets, net
|
16,044.7
|
|
|
—
|
|
|
—
|
|
|
16,044.7
|
|
|
15,867.7
|
|
|
—
|
|
|
—
|
|
|
15,867.7
|
|
Other assets
(2)
|
1,782.1
|
|
|
(6.8)
|
|
|
—
|
|
|
1,788.9
|
|
|
2,042.7
|
|
|
(5.6)
|
|
|
—
|
|
|
2,048.3
|
|
Total
assets
|
36,037.5
|
|
|
7,691.1
|
|
|
7,882.5
|
|
|
20,463.9
|
|
|
39,420.3
|
|
|
7,987.3
|
|
|
10,835.6
|
|
|
20,597.4
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt of
CIP
|
6,526.7
|
|
|
6,526.7
|
|
|
—
|
|
|
—
|
|
|
6,234.6
|
|
|
6,234.6
|
|
|
—
|
|
|
—
|
|
Other liabilities of
CIP
|
520.4
|
|
|
520.4
|
|
|
—
|
|
|
—
|
|
|
949.6
|
|
|
949.6
|
|
|
—
|
|
|
—
|
|
Policyholder
payables
|
7,882.5
|
|
|
—
|
|
|
7,882.5
|
|
|
—
|
|
|
10,835.6
|
|
|
—
|
|
|
10,835.6
|
|
|
—
|
|
Unsettled fund
payables
|
304.3
|
|
|
—
|
|
|
—
|
|
|
304.3
|
|
|
154.2
|
|
|
—
|
|
|
—
|
|
|
154.2
|
|
Long-term
debt
|
2,172.0
|
|
|
—
|
|
|
—
|
|
|
2,172.0
|
|
|
2,080.3
|
|
|
—
|
|
|
—
|
|
|
2,080.3
|
|
Other liabilities
(3)
|
4,052.8
|
|
|
—
|
|
|
—
|
|
|
4,052.8
|
|
|
4,464.2
|
|
|
(35.2)
|
|
|
—
|
|
|
4,499.4
|
|
Total
liabilities
|
21,458.7
|
|
|
7,047.1
|
|
|
7,882.5
|
|
|
6,529.1
|
|
|
24,718.5
|
|
|
7,149.0
|
|
|
10,835.6
|
|
|
6,733.9
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
attributable to Invesco Ltd.
|
13,934.0
|
|
|
(0.1)
|
|
|
—
|
|
|
13,934.1
|
|
|
13,862.5
|
|
|
(0.1)
|
|
|
—
|
|
|
13,862.6
|
|
Noncontrolling
interests (4)
|
644.8
|
|
|
644.1
|
|
|
—
|
|
|
0.7
|
|
|
839.3
|
|
|
838.4
|
|
|
—
|
|
|
0.9
|
|
Total
equity
|
14,578.8
|
|
|
644.0
|
|
|
—
|
|
|
13,934.8
|
|
|
14,701.8
|
|
|
838.3
|
|
|
—
|
|
|
13,863.5
|
|
Total liabilities and
equity
|
$
|
36,037.5
|
|
|
$
|
7,691.1
|
|
|
$
|
7,882.5
|
|
|
$
|
20,463.9
|
|
|
$
|
39,420.3
|
|
|
$
|
7,987.3
|
|
|
$
|
10,835.6
|
|
|
$
|
20,597.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These tables include
non-GAAP presentations. Cash held by CIP is not available for
use by Invesco. Additionally, there is no recourse to Invesco
for CIP debt. The cash flows of CIP do not form part of the
company's cash flow management processes, nor do they form part of
the company's significant liquidity evaluations and decisions.
Policyholder assets and liabilities are equal and offsetting and
have no impact on Invesco's shareholder's equity. The impact
of cash inflows/outflows from policyholder assets and liabilities
are reflected within cash flows from operating activities as
changes in receivable and/or payables, as applicable.
|
(2)
|
Amounts include
accounts receivable, prepaid assets, property, equipment and
software, right-of-use asset, and other assets.
|
(3)
|
Amounts include
accrued compensation and benefits, accounts payable and accrued
expenses, lease liability, and deferred tax liabilities.
|
(4)
|
Amounts include
redeemable noncontrolling interests in consolidated entities and
equity attributable to nonredeemable noncontrolling interests in
consolidated entities.
|
Aimee Partin,
Investor Relations
|
Graham Galt, Media
Relations
|
404-724-4248
|
404-439-3070
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/invesco-reports-results-for-the-three-months-ended-september-30-2020-301160051.html
SOURCE Invesco Ltd.