-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T3oeBobhuWnMVwDXpgbtGqfDVUnNk4DuViwPD8a7JJg/nCkn2HSgl7FwamoYbzuW Hf8UQxJiQRVP9lX0814QxQ== 0000914208-08-000128.txt : 20080724 0000914208-08-000128.hdr.sgml : 20080724 20080724082211 ACCESSION NUMBER: 0000914208-08-000128 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20080724 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080724 DATE AS OF CHANGE: 20080724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Invesco Ltd. CENTRAL INDEX KEY: 0000914208 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] IRS NUMBER: 980557567 STATE OF INCORPORATION: D0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13908 FILM NUMBER: 08967018 BUSINESS ADDRESS: STREET 1: 1360 PEACHTREE ST. NE CITY: ATLANTA STATE: GA ZIP: 30309 BUSINESS PHONE: 404-892-0896 MAIL ADDRESS: STREET 1: 1360 PEACHTREE ST. NE CITY: ATLANTA STATE: GA ZIP: 30309 FORMER COMPANY: FORMER CONFORMED NAME: Invesco Ltd DATE OF NAME CHANGE: 20080508 FORMER COMPANY: FORMER CONFORMED NAME: Invesco PLC DATE OF NAME CHANGE: 20080429 FORMER COMPANY: FORMER CONFORMED NAME: Invesco Ltd. DATE OF NAME CHANGE: 20071205 8-K 1 form8k072408.htm INVESCO LTD. FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 8-K

 
CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2008

 


Invesco Ltd.

(Exact name of registrant as specified in its charter)

 


 

 

 

 

 

 

Bermuda

 

001-13908

 

98-0557567

(State or other jurisdiction
of incorporation)

 

(Commission File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

1555 Peachtree Street, N.E., Atlanta, Georgia

 

30309

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (404) 892-0896

n/a

(Former name or former address, if changed since last report.)

 




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing

obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On July 24, 2008, Invesco Ltd. (the “registrant”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2008. A copy of that press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this report, including the exhibit hereto, shall not be incorporated by reference into any filing of the registrant with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the registrant specifically states that the information or exhibit in this particular report is incorporated by reference).

 

 

Item 9.01

Financial Statements and Exhibits.

 

 

(d)

Exhibits.

 

 

 

 

Exhibit No.

  

Description

99.1

  

Press Release, dated July 24, 2008, issued by Invesco Ltd.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

Invesco Ltd.

 

 

By:

/s/ Kevin M. Carome

Kevin M. Carome

 

Senior Managing Director and

General Counsel

Date: July 24, 2008

 

Exhibit Index

 

 

 

 

Exhibit No.

  

Description

99.1

  

Press Release, dated July 24, 2008, issued by Invesco Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EX-99.1 2 pressrelease072408.htm PRESS RELEASE

Press Release

For immediate release

 

Invesco Reports Results for Three

Months Ended June 30, 2008

 

Investor Relations Contact: Aaron Uhde  404-479-2956

Media Relations Contact: Bill Hensel        404-479-2886

 

Atlanta, July 24, 2008 – Invesco (NYSE: IVZ) reported net income of $162.8 million for the quarter ended June 30, 2008, as compared to $155.2 million in the quarter ended March 31, 2008 and $175.5 million for the quarter ended June 30, 2007. Diluted earnings per share were $0.41 for the second quarter of 2008 (first quarter 2008: $0.39; second quarter 2007: $0.43). Operating income was $240.0 million for the second quarter (first quarter 2008: $228.1 million; second quarter 2007: $262.0 million).

 

"We've made progress over the past two years in strengthening our business and working more effectively as an integrated, global organization, which is benefiting our clients," said Martin L. Flanagan, Invesco president and CEO. "In spite of the current turbulent markets, we are continuing to focus on executing our multi-year strategy to improve our competitive position over the long term."

 

 

 

Q208

 

Q108

 

Q207

Operating revenues

$935.6m

 

$910.4m

 

$979.0m

Net revenues(1)

$705.3m

 

$684.2m

 

$724.3m

Net operating margin(2)

35.2%

 

35.9%

 

37.0%

Net income

$162.8m

 

$155.2m

 

$175.5m

Diluted EPS

$0.41

 

$0.39

 

$0.43

Average assets under management (in billions)

 

$482.6

 

 

$476.6

 

 

$484.3

(1)

Net revenues are operating revenues less third-party distribution, service and advisory expenses plus our proportional share of the net revenues of our joint venture investments. See the Schedule of Non-GAAP Information on page 7 for the reconciliation of operating revenues to net revenues.

(2)

Net operating margin is net operating income divided by net revenues. See the Schedule of Non-GAAP Information on page 7 for the reconciliation of operating income to net operating income.

 

 

 

Invesco Ltd.

Two Peachtree Pointe

1555 Peachtree Street, N.E.

Atlanta, GA 30309

 

Telephone +1404 479 1095

Assets Under Management

 

Assets under management (AUM) at June 30, 2008 were $461.3 billion (March 31, 2008: $470.3 billion). Average AUM during the second quarter of 2008 were $482.6 billion, compared to $476.6 billion for the first quarter of 2008. The decline in quarter end AUM was largely driven by the downturn in global equity markets during the second quarter of 2008.

 

Total net outflows were $1.5 billion for the second quarter of 2008, as compared to total net inflows of $1.2 billion for the first quarter of 2008. These net outflows comprised $6.2 billion in long-term net outflows (first quarter 2008: net outflows of $8.4 billion) offset by money market net inflows of $4.7 billion (first quarter 2008: net inflows of $9.6 billion). Further analysis of AUM is included in the supplemental schedules to this release.

 

Earnings Summary

 

Operating revenues increased 2.8% to $935.6 million in the second quarter from $910.4 million in the first quarter of 2008. Operating revenues decreased 4.4% from $979.0 million in the second quarter of 2007. Operating revenues include performance fees of $22.2 million for the second quarter of 2008 (first quarter 2008:  $11.0 million; second quarter 2007:  $34.4 million). Net revenues were $705.3 million for the second quarter of 2008 (first quarter 2008: $684.2 million; second quarter 2007: $724.3 million). See the Schedule of Non-GAAP Information on page 7 for a reconciliation of operating revenues to net revenues.

 

Employee compensation costs increased 3.7% to $282.9 million for the second quarter of 2008 from $272.8 million for the first quarter of 2008, primarily due to annual salary increases and amortization of share-based compensation, both effective March 1st. Employee compensation costs decreased 2.1% from $288.9 million for the second quarter of 2007, driven by a decrease in accruals for variable compensation.

 

Third-party distribution, service and advisory costs decreased 0.9% to $244.9 million for the second quarter of 2008 from $247.1 million for the first quarter of 2008.

 

Marketing expenses decreased by 13.0% to $38.2 million for the second quarter of 2008 from $43.9 million for the first quarter of 2008 due to lower seasonal advertising and other promotional expenditures.

 

Property, office and technology costs increased 11.2% to $55.7 million for the second quarter of 2008 from $50.1 million for the first quarter of 2008. The first quarter included a downward adjustment in rent costs for sub-let office property totaling $4.9 million.

 

General and administrative costs increased 8.0% to $73.9 million for the second quarter of 2008 from $68.4 million for the first quarter of 2008.

 

 

 

- 2 -

 

 

The effective tax rate, after minority interests, was 32.2% for the second quarter of 2008 (first quarter 2008: 32.2%; second quarter 2007: 34.2%).

 

Capital Management

 

In March 2008, the company completed the $500.0 million share repurchase program that was authorized by the board of directors in June 2007. On April 23, 2008, the company’s board of directors authorized a new share repurchase program of up to $1.5 billion with no stated expiration date. During the second quarter of 2008, purchases related to this program totaled $39.4 million, representing 1.5 million shares (first quarter 2008: purchases of $154.5 million, representing 6.1 million shares).

 

During the second quarter of 2008, the company repaid $200.0 million of its floating rate credit facility (first quarter of 2008: net borrowings of $260.6 million).  The company had cash and cash equivalents of $644.8 million at June 30, 2008 (March 31, 2008 $802.3 million).

 

Beginning in 2008, dividends are declared and paid on a quarterly basis.  On July 23, 2008, the company’s board of directors declared a second quarter cash dividend of $0.10 per share to holders of our common stock. The dividend is payable on September 9, 2008, to shareholders of record at the close of business on August 20, 2008.  The first and second quarter dividends, on an annualized basis, would represent a 4.2% increase over the 2007 total dividend of $0.384 per share.

 

# # #

 

Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security.  By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world.  Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ.  Additional information is available at www.invesco.com.

 

Members of the investment community and general public are invited to listen to the conference call today, Thursday, July 24, 2008, at 9:00 a.m. ET, by dialing one of the following numbers: 1-888-455-2053 for U.S. and Canadian callers or 1-517-268-4676 for international callers. An audio replay of the conference call will be available until Thursday, July 31, 2008, at 5:00 p.m. ET by calling 1-800-294-6358 for U.S. and Canadian callers or 1-402-220-9789 for international callers. The presentation will be made available via a simultaneous Webcast at www.invesco.com. The presentation slides that will be reviewed during the conference call will also be available on Invesco’s Web site at www.invesco.com.

 

# # #

 

 

 

 

 

- 3 -

 

This release, and comments made by management in the associated conference call today, may include statements that constitute "forward-looking statements" under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this  release, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects" and future or conditional verbs such as "will," "may," "could," "should," and "would" and any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

 

Forward-looking statements are not guarantees of performance. 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. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, as filed with the United States Securities and Exchange Commission (“SEC”). You may obtain these reports from the SEC’s Web site at www.sec.gov.  We expressly disclaim any obligation to update any of the information in this or any other public disclosure if any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events or otherwise.

 

 

 

 

 

 

 

 

 

 

 

- 4 -

 

 

Invesco Ltd.

Condensed Consolidated Income Statements

(Unaudited, in millions, other than per share amounts, headcount and AUM)

 

 

 

Q208

 

 

Q108

 

%

Change

 

 

Q207

 

%

Change

Operating revenues

 

 

 

 

 

 

 

 

 

Investment management fees

$736.8

 

$737.6

 

(0.1)%

 

$765.7

 

(3.8)%

Performance fees

22.2

 

11.0

 

101.8%

 

34.4

 

(35.5)%

Service and distribution fees

143.3

 

138.4

 

3.5%

 

148.2

 

(3.3)%

Other

33.3

 

23.4

 

42.3%

 

30.7

 

8.5%

Total operating revenues

935.6

 

910.4

 

2.8%

 

979.0

 

(4.4)%

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Employee compensation

282.9

 

272.8

 

3.7%

 

288.9

 

(2.1)%

Third-party distribution, service and advisory

244.9

 

247.1

 

(0.9)%

 

 

263.0

 

(6.9)%

Marketing

38.2

 

43.9

 

(13.0)%

 

35.8

 

6.7%

Property, office and technology

55.7

 

50.1

 

11.2%

 

58.2

 

(4.3)%

General and administrative

73.9

 

68.4

 

8.0%

 

71.1

 

3.9%

Total operating expenses

695.6

 

682.3

 

1.9%

 

717.0

 

(3.0)%

 

 

 

 

 

 

 

 

 

 

Operating income

240.0

 

228.1

 

5.2%

 

262.0

 

(8.4)%

 

 

 

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

9.6

 

17.9

 

(46.4)%

 

 

6.4

 

50.0%

Interest income

10.5

 

11.5

 

(8.7)%

 

12.3

 

(14.6)%

Gains and losses of consolidated investment products, net

40.3

 

(44.3)

 

N/A

 

 

69.8

 

(42.3)%

Interest expense

(19.3)

 

(21.5)

 

(10.2)%

 

(18.6)

 

3.8%

Other gains and losses, net

(1.1)

 

(6.5)

 

(83.1)%

 

(0.2)

 

N/A

Income before income taxes and minority interest

280.0

 

185.2

 

51.2%

 

 

331.7

 

(15.6)%

Income tax provision

(77.2)

 

(73.8)

 

4.6%

 

(91.4)

 

(15.5)%

Income before minority interest

202.8

 

111.4

 

82.0%

 

240.3

 

(15.6)%

Minority interest (income)/losses of consolidated entities, net of tax

(40.0)

 

43.8

 

N/A

 

 

(64.8)

 

(38.3)%

Net income

$162.8

 

$155.2

 

4.9%

 

$175.5

 

(7.2)%

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

---basic

$0.42

 

$0.40

 

5.0%

 

$0.44

 

(4.3)%

---diluted

$0.41

 

$0.39

 

5.0%

 

$0.43

 

(4.5)%

 

 

 

 

 

 

 

 

 

 

Average shares outstanding:

 

 

 

 

 

 

 

 

 

---basic

387.6

 

387.8

 

(0.1)%

 

399.9

 

(3.1)%

---diluted

399.0

 

399.4

 

(0.1)%

 

410.6

 

(2.8)%

 

 

 

 

 

 

 

 

 

 

Ending Headcount

5,331

 

5,437

 

(1.9)%

 

5,392

 

(1.1)%

Ending AUM (in billions)

$461.3

 

$470.3

 

(1.9)%

 

$491.6

 

(6.2)%

 

- 5 -

 

Invesco Ltd.

Consolidated Income Statements

(Unaudited, in millions, other than per share amounts and headcount)

 

 

 

Six Months Ended
June 30,

 

 

 

2008

 

2007

 

% Change

Operating revenues

 

 

 

 

 

Investment management fees

$1,474.4

 

$1,472.0

 

0.2%

Performance fees

33.2

 

53.2

 

(37.6)%

Service and distribution fees

281.7

 

291.6

 

(3.4)%

Other

56.7

 

62.4

 

(9.1)%

Total operating revenues

1,846.0

 

1,879.2

 

(1.8)%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Employee compensation

555.7

 

573.2

 

(3.1)%

Third-party distribution, service and advisory

492.0

 

495.4

 

(0.7)%

Marketing

82.1

 

72.8

 

12.8%

Property, office and technology

105.8

 

115.6

 

(8.5)%

General and administrative

142.3

 

128.1

 

11.1%

Total operating expenses

1,377.9

 

1,385.1

 

(0.5)%

 

 

 

 

 

 

Operating income

468.1

 

494.1

 

(5.3)%

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

27.5

 

12.2

 

125.4%

Interest income

22.0

 

22.6

 

(2.7)%

Gains and losses of consolidated investment products, net

(4.0)

 

 

99.8

 

 

N/A

Interest expense

(40.8)

 

(37.2)

 

9.7%

Other gains and losses, net

(7.6)

 

7.3

 

N/A

Income before income taxes and minority interest

465.2

 

598.8

 

(22.3)%

Income tax provision

(151.0)

 

(173.3)

 

(12.9)%

Income before minority interest

314.2

 

425.5

 

(26.2)%

Minority interest (income)/losses of consolidated entities, net of tax

 

3.8

 

 

(94.8)

 

N/A

 

Net income

 

$318.0

 

 

$330.7

 

 

(3.8)%

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

---basic

$0.82

 

$0.83

 

(1.0)%

---diluted

$0.80

 

$0.81

 

(1.2)%

 

 

 

 

 

 

Average shares outstanding:

 

 

 

 

 

---basic

387.7

 

399.2

 

(2.9)%

---diluted

399.1

 

410.1

 

(2.7)%

 

 

 

 

 

 

Ending Headcount

5,331

 

5,392

 

(1.1)%

Ending AUM (in billions)

$461.3

 

$491.6

 

(6.2)%

 

 

- 6 -

 

Invesco Ltd.

Schedule of Non-GAAP Information

(Unaudited, in millions)

 

The following is a reconciliation of operating revenues, operating income and operating margin on a U.S. GAAP basis to net revenues, net operating income and net operating margin.

 

 

For the three months ended

 

June 30, 2008

March 31, 2008

June 30, 2007

Operating revenues, GAAP basis

$935.6

$910.4

$979.0

Third-party distribution, service and advisory expenses

(244.9)

(247.1)

(263.0)

Proportional share of revenues, net of third-party distribution expenses, from joint venture investments

14.6

20.9

8.3

Net revenues(1)

$705.3

$684.2

$724.3

 

 

 

 

Operating income, GAAP basis

$240.0

$228.1

$262.0

Proportional share of operating income from joint venture investments

8.5

17.2

6.1

Net operating income(1)

$248.5

$245.3

$268.1

 

 

 

 

Operating margin*

25.6%

25.1%

26.8%

Net operating margin**(1)

35.2%

35.9%

37.0%

 

 

 

 

 

 

For the six months ended

 

June 30, 2008

June 30, 2007

Operating revenues, GAAP basis

$1,846.0

$1,879.2

Third-party distribution, service and

   advisory expenses

(492.0)

(495.4)

Proportional share of revenues, net of

   third-party distribution expenses,

   from joint venture investments

35.5

15.4

Net revenues(1)

$1,389.5

$1,399.2

 

 

 

Operating income, GAAP basis

$468.1

$494.1

Proportional share of operating income

   from joint venture investments

25.7

11.5

Net operating income(1)

$493.8

$505.6

 

 

 

Operating margin*

25.4%

26.3%

Net operating margin**(1)

35.5%

36.1%

 

 

 

*

Operating margin is equal to operating income divided by operating revenues.

**

Net operating margin is equal to net operating income divided by net revenues.

 

(1)

Net revenues, net operating income and net operating margin are non-GAAP financial measures. Management believes that these measures are additional meaningful measures to evaluate our operating performance. The most comparable U.S. GAAP measures are operating revenues, operating income and operating margin. Management believes that the deduction of third-party distribution, service and advisory expenses from operating revenues in the computation of net revenues and the related computation of net operating margin provides useful information to investors because the distribution, service and advisory fee amounts represent costs that are passed

 

- 7 -

 

through to external parties, which essentially are a share of the related revenues.  Management also believes that the addition of our proportional share of revenues, net of distribution expenses, from joint venture investments in the computation of net revenues and the addition of our proportional share of operating income in the related computations of net operating income and net operating margin also provide useful information to investors, as management considers it appropriate to evaluate the contribution of its joint venture investment to the operations of the business. Net revenues, net operating income and net operating margin 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 8 -

Invesco Ltd.

Quarterly Assets Under Management

 

(in billions)

Q208

 

Q108

 

% Change

 

Q207

Beginning Assets

$470.3

 

$500.1

 

(6.0)%

 

$471.2

Long-term inflows

19.4

 

20.8

 

(6.7)%

 

27.5

Long-term outflows

(25.6)

 

(29.2)

 

(12.3)%

 

(26.8)

Long-term net flows

(6.2)

 

(8.4)

 

(26.2)%

 

0.7

Net flows in money market funds and other

4.7

 

9.6

 

(51.0)%

 

1.8

Market gains and losses /reinvestment

(6.0)

 

(33.5)

 

(82.1)%

 

12.8

Foreign currency

(1.5)

 

2.5

 

N/A

 

5.1

Ending Assets

$461.3

 

$470.3

 

(1.9)%

 

$491.6

 

 

 

 

 

 

 

 

Average long-term AUM

$398.6

 

$400.5

 

(0.5)%

 

$422.8

Average institutional money market AUM

84.0

 

76.1

 

10.4%

 

61.5

Average AUM

$482.6

 

$476.6

 

1.3%

 

$484.3

Net revenue yield on AUM (annualized)(a)

58.5bps

 

57.4bps

 

 

 

59.8bps

Net revenue yield on AUM before performance fees (annualized)(a)

 

56.6bps

 

 

56.5bps

 

 

 

 

57.0bps

 

 

By channel: (in billions)

 

Total

 

 

Retail

 

 

Institutional

 

Private Wealth Management

March 31, 2008

$470.3

 

$228.7

 

$224.8

 

$16.8

Long-term inflows

19.4

 

13.4

 

4.8

 

1.2

Long-term outflows

(25.6)

 

(16.6)

 

(7.8)

 

(1.2)

Long-term net flows

(6.2)

 

(3.2)

 

(3.0)

 

--

Net flows in money market funds and other

4.7

 

--

 

4.7

 

--

Market gains and losses /reinvestment

(6.0)

 

(4.1)

 

(1.6)

 

(0.3)

Foreign currency

(1.5)

 

(0.8)

 

(0.7)

 

--

June 30, 2008

$461.3

 

$220.6

 

$224.2

 

$16.5

 

 

 

 

 

 

 

 

 

 

By asset class: (in billions)

 

Total

 

 

Equity

 

Fixed Income

 

 

Balanced

 

Money Market

 

Stable Value

 

Alter-natives(c)

March 31, 2008 (b)

$470.3

 

$215.2

 

$40.2

 

$37.2

 

$87.3

 

$30.2

 

$60.2

Long-term inflows

19.4

 

10.6

 

3.6

 

1.6

 

1.0

 

0.9

 

1.7

Long-term outflows

(25.6)

 

(13.2)

 

(4.7)

 

(2.1)

 

(1.0)

 

(1.7)

 

(2.9)

Long-term net flows

(6.2)

 

(2.6)

 

(1.1)

 

(0.5)

 

--

 

(0.8)

 

(1.2)

Net flows in money market funds and other

4.7

 

--

 

--

 

--

 

4.7

 

--

 

--

Market gains and losses /reinvestment

 

(6.0)

 

 

(4.3)

 

   

    0.4

 

 

(0.4)

 

 

(0.2)

 

 

(0.4)

 

 

(1.1)

Foreign currency

(1.5)

 

(1.0)

 

(0.4)

 

--

 

--

 

--

 

(0.1)

June 30, 2008

$461.3

 

$207.3

 

$39.1

 

$36.3

 

$91.8

 

$29.0

 

$57.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By client domicile: (in billions)

Total

 

U.S.

 

Canada

 

U.K.

 

Europe

 

Asia

March 31, 2008 (b)

$470.3

 

$281.7

 

$42.1

 

$81.8

 

$32.9

 

$31.8

Long-term inflows

19.4

 

9.1

 

0.7

 

5.1

 

2.7

 

1.8

Long-term outflows

(25.6)

 

(11.1)

 

(3.0)

 

(2.6)

 

(5.0)

 

(3.9)

Long-term net flows

(6.2)

 

(2.0)

 

(2.3)

 

2.5

 

(2.3)

 

(2.1)

Net flows in money market funds and other

4.7

 

1.5

 

--

 

(1.1)

 

1.0

 

3.3

Market gains and losses /reinvestment

(6.0)

 

(1.0)

 

(1.1)

 

(1.8)

 

(0.4)

 

(1.7)

Foreign currency

(1.5)

 

--

 

0.2

 

(1.2)

 

(0.2)

 

(0.3)

June 30, 2008

$461.3

 

$280.2

 

$38.9

 

$80.2

 

$31.0

 

$31.0

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Net revenue yield on AUM is equal to net revenues divided by average AUM. See the Schedule of Non-GAAP Information on page 7 of this release for a reconciliation of operating revenues to net revenues.

(b)

Certain beginning balances were adjusted to reflect asset reclassifications.

(c)

The alternatives asset class includes real estate, private equity and absolute return strategies.

- 9 -

Invesco Ltd.

Year-to-Date Assets Under Management

 

(in billions)

June 30, 2008

 

June 30, 2007

 

% Change

Beginning Assets

$500.1

 

$462.6

 

8.1%

Long-term inflows

40.2

 

57.9

 

(30.6)%

Long-term outflows

(54.8)

 

(56.5)

 

(3.0)%

Long-term net flows

(14.6)

 

1.4

 

N/A

Net flows in money market funds and other

14.3

 

1.0

 

N/A

Market gains/reinvestment

(39.6)

 

20.8

 

N/A

Foreign currency

1.1

 

5.8

 

(81.0)%

Ending Assets

$461.3

 

$491.6

 

(6.2)%

 

 

 

 

 

 

Average long-term AUM

399.5

 

414.6

 

(3.6)%

Average institutional money market AUM

80.0

 

61.6

 

29.9%

Average AUM

$479.5

 

$476.2

 

0.7%

Net revenue yield on AUM (annualized)(a)

58.0bps

 

58.8bps

 

 

Net revenue yield on AUM before performance fees (annualized)(a)

 

56.6bps

 

 

56.5bps

 

 

 

 

By channel: (in billions)

 

Total

 

 

Retail

 

 

Institutional

 

Private Wealth Management

December 31, 2007

$500.1

 

$259.5

 

$223.1

 

$17.5

Long-term inflows

40.2

 

27.9

 

9.8

 

2.5

Long-term outflows

(54.8)

 

(36.0)

 

(16.4)

 

(2.4)

Long-term net flows

(14.6)

 

(8.1)

 

(6.6)

 

0.1

Net flows in money market funds and other

14.3

 

 

0.3

 

 

14.0

 

 

--

Market gains/reinvestment

(39.6)

 

(30.6)

 

(7.9)

 

(1.1)

Foreign currency

1.1

 

(0.5)

 

1.6

 

--

June 30, 2008

$461.3

 

$220.6

 

$224.2

 

$16.5

 

 

 

 

 

 

 

 

 

 

By asset class: (in billions)

 

Total

 

 

Equity

 

Fixed Income

 

 

Balanced

 

Money Market

 

Stable Value

 

Alter-

natives(c)

December 31, 2007(b)

$500.1

 

$249.4

 

$39.3

 

$40.3

 

$77.0

 

$32.4

 

$61.7

Long-term inflows

40.2

 

22.4

 

6.1

 

3.3

 

2.0

 

2.2

 

4.2

Long-term outflows

(54.8)

 

(30.7)

 

(7.0)

 

(5.0)

 

(1.8)

 

(5.2)

 

(5.1)

Long-term net flows

(14.6)

 

(8.3)

 

(0.9)

 

(1.7)

 

0.2

 

(3.0)

 

(0.9)

Net flows in money market funds and other

 

14.3

 

 

0.1

 

 

--

 

 

--

 

 

14.2

 

 

--

 

 

--

Market gains/reinvestment

(39.6)

 

(34.1)

 

0.4

 

(2.6)

 

0.4

 

(0.4)

 

(3.3)

Foreign currency

1.1

 

0.2

 

0.3

 

0.3

 

--

 

--

 

0.3

June 30, 2008

$461.3

 

$207.3

 

$39.1

 

$36.3

 

$91.8

 

$29.0

 

$57.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By client domicile: (in billions)

      Total

 

        U.S.

 

      Canada

 

       U.K.

 

        Europe

 

      Asia

December 31, 2007(b)

$500.1

 

$289.8

 

$46.6

 

$90.0

 

$36.8

 

$36.9

Long-term inflows

40.2

 

19.1

 

1.6

 

9.7

 

5.9

 

3.9

Long-term outflows

(54.8)

 

(25.1)

 

(5.9)

 

(5.2)

 

(10.9)

 

(7.7)

Long-term net flows

(14.6)

 

(6.0)

 

(4.3)

 

4.5

 

(5.0)

 

(3.8)

Net flows in money market funds and other

14.3

 

9.7

 

--

 

(0.7)

 

1.8

 

3.5

Market gains/reinvestment

(39.6)

 

(13.3)

 

(2.4)

 

(13.3)

 

(3.6)

 

(7.0)

Foreign currency

1.1

 

--

 

(1.0)

 

(0.3)

 

1.0

 

1.4

June 30, 2008

$461.3

 

$280.2

 

$38.9

 

$80.2

 

$31.0

 

$31.0

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Net revenue yield on AUM is equal to net revenues divided by average AUM. See the Schedule of Non-GAAP Information on page 7 of this release for a reconciliation of operating revenues to net revenues.

(b)

Certain beginning balances were adjusted to reflect asset reclassifications.

(c)

The alternatives asset class includes real estate, private equity and absolute return strategies.

- 10 -

 

Invesco Ltd.

Schedule of Product Performance

 

 

Retail Results

% of AUM in Top Half of Peer Group

 

1yr

3yr

5yr

 

Jun-08

Mar-08

Jun-07

Jun-08

Mar-08

Jun-07

Jun-08

Mar-08

Jun-07

U.S. (Lipper)

46%

39%

62%

61%

60%

67%

67%

67%

70%

U.S. (Morningstar)

41%

44%

66%

66%

56%

72%

64%

60%

80%

Canada

3%

3%

79%

15%

15%

34%

15%

16%

32%

U.K.

82%

76%

93%

76%

83%

89%

86%

94%

96%

Cont. Europe & Asia

67%

70%

56%

74%

68%

78%

66%

67%

77%

 

Institutional Results

 

% of AUM Ahead of Benchmark

 

1yr

3yr

5yr

Equity

25%

18%

27%

49%

55%

53%

62%

57%

54%

Fixed Income

45%

42%

74%

80%

82%

96%

77%

81%

99%

Money Market(versus peer group)

93%

98%

97%

98%

98%

97%

98%

98%

97%

Alternatives

70%

53%

73%

98%

89%

100%

100%

94%

94%

 

Note: As of June 30, 2008. 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.

 

 

- 11 -

 

 

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