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) |
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. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release, dated October 29, 2015, issued by Invesco Ltd. |
Invesco Ltd. | |
By: | /s/ Kevin M. Carome |
Kevin M. Carome | |
Senior Managing Director and General Counsel |
Exhibit No. | Description | |
99.1 | Press Release, dated October 29, 2015, issued by Invesco Ltd. | |
![]() | Press Release For immediate release Jordan Krugman, Investor Relations Graham Galt, Media Relations 404-439-4605 404-439-3070 |
Q3-15 | Q2-15 | Q3-15 vs. Q2-15 | Q3-14 | Q3-15 vs. Q3-14 | ||||||||||||||
Adjusted Financial Measures(1) | ||||||||||||||||||
Net revenues | $903.0 | m | $936.6 | m | (3.6 | )% | $913.7 | m | (1.2 | )% | ||||||||
Operating income | $373.4 | m | $390.2 | m | (4.3 | )% | $381.9 | m | (2.2 | )% | ||||||||
Operating margin | 41.4 | % | 41.7 | % | 41.8 | % | ||||||||||||
Net income attributable to Invesco Ltd. | $261.4 | m | $271.4 | m | (3.7 | )% | $278.2 | m | (6.0 | )% | ||||||||
Diluted EPS | $0.61 | $0.63 | (3.2 | )% | $0.64 | (4.7 | )% | |||||||||||
U.S. GAAP Financial Measures(2) | ||||||||||||||||||
Operating revenues | $1,273.5 | m | $1,318.1 | m | (3.4 | )% | $1,311.0 | m | (2.9 | )% | ||||||||
Operating income | $352.7 | m | $364.0 | m | (3.1 | )% | $329.6 | m | 7.0 | % | ||||||||
Operating margin | 27.7 | % | 27.6 | % | 25.1 | % | ||||||||||||
Net income attributable to Invesco Ltd. | $249.3 | m | $257.3 | m | (3.1 | )% | $256.0 | m | (2.6 | )% | ||||||||
Diluted EPS | $0.58 | $0.60 | (3.3 | )% | $0.59 | (1.7 | )% | |||||||||||
Assets Under Management | ||||||||||||||||||
Ending AUM | $755.8 | bn | $803.6 | bn | (5.9 | )% | $789.6 | bn | (4.3 | )% | ||||||||
Average AUM | $788.9 | bn | $810.9 | bn | (2.7 | )% | $801.7 | bn | (1.6 | )% |
(1) | The adjusted financial measures are all non-GAAP financial measures. See the information on pages 10 through 12 for a reconciliation to their most directly comparable U.S. GAAP measures and the notes beginning on page 19 for other important disclosures. |
(2) | U.S. GAAP measures include the results of discontinued operations in 2014. |
Summary of net flows (in billions) | Q3-15 | Q2-15 | Q3-14 | |||||||||
Active | ($1.6 | ) | $5.4 | $6.0 | ||||||||
Passive | (2.3 | ) | 0.5 | — | ||||||||
Long-term net flows | (3.9 | ) | 5.9 | 6.0 | ||||||||
Invesco PowerShares QQQ | (0.9 | ) | (0.3 | ) | (3.2 | ) | ||||||
Money market | (1.5 | ) | (2.6 | ) | (0.8 | ) | ||||||
Total net flows | ($6.3 | ) | $3.0 | $2.0 | ||||||||
Excluding CIP (Non-GAAP)(1) | Including CIP (U.S. GAAP) | |||||||||||||||
September 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | |||||||||||||
in millions | ||||||||||||||||
Cash and cash equivalents | $1,590.7 | $1,514.2 | $1,590.7 | $1,514.2 | ||||||||||||
Investments of CIP | — | — | 6,119.9 | 5,762.8 | ||||||||||||
Total assets(1) | $18,209.4 | $14,233.1 | $24,962.2 | $20,462.5 | ||||||||||||
Long-term debt | 1,689.3 | 1,589.3 | 1,689.3 | 1,589.3 | ||||||||||||
Debt of CIP | — | — | 5,669.7 | 5,149.6 | ||||||||||||
Long-term debt / Long-term debt plus CIP debt | 1,689.3 | 1,589.3 | 7,359.0 | 6,738.9 | ||||||||||||
Total liabilities(1) | $9,922.2 | $5,746.7 | $15,930.0 | $11,177.2 | ||||||||||||
Total permanent equity(1) | $8,110.8 | $8,320.9 | $8,855.8 | $9,119.8 | ||||||||||||
Debt/Equity % (1) (2) | 20.8 | % | 19.1 | % | 83.1 | % | 73.9 | % |
(1) | The balance sheet line items excluding CIP are non-GAAP financial measures. See the reconciliation information on page 15 for balance sheet information before and after the consolidation of investment products. |
(2) | The debt/equity ratio excluding CIP is a non-GAAP financial measure. The debt/equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet information excluding CIP and long-term debt plus debt of CIP divided by total permanent equity for the balance sheet including CIP. |
Q3-15 | Q2-15 | % Change | Q3-14 | % Change | |||||||||||||
Adjusted revenues: | |||||||||||||||||
Investment management fees | $1,038.1 | $1,083.3 | (4.2 | )% | $1,071.0 | (3.1 | )% | ||||||||||
Service and distribution fees | 214.8 | 219.6 | (2.2 | )% | 222.1 | (3.3 | )% | ||||||||||
Performance fees | 17.6 | 13.1 | 34.4 | % | 10.3 | 70.9 | % | ||||||||||
Other | 27.6 | 37.9 | (27.2 | )% | 34.5 | (20.0 | )% | ||||||||||
Third-party distribution, service and advisory | (395.1 | ) | (417.3 | ) | (5.3 | )% | (424.2 | ) | (6.9 | )% | |||||||
Net revenues | 903.0 | 936.6 | (3.6 | )% | 913.7 | (1.2 | )% | ||||||||||
Adjusted operating expenses: | |||||||||||||||||
Employee compensation | 346.9 | 351.4 | (1.3 | )% | 349.5 | (0.7 | )% | ||||||||||
Marketing | 25.8 | 30.7 | (16.0 | )% | 27.4 | (5.8 | )% | ||||||||||
Property, office and technology | 79.9 | 82.2 | (2.8 | )% | 77.3 | 3.4 | % | ||||||||||
General and administrative | 77.0 | 82.1 | (6.2 | )% | 77.6 | (0.8 | )% | ||||||||||
Total adjusted operating expenses | 529.6 | 546.4 | (3.1 | )% | 531.8 | (0.4 | )% | ||||||||||
Adjusted operating income | 373.4 | 390.2 | (4.3 | )% | 381.9 | (2.2 | )% | ||||||||||
Adjusted other income/(expense): | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | 4.2 | 2.0 | 110.0 | % | 7.4 | (43.2 | )% | ||||||||||
Interest and dividend income | 4.2 | 4.0 | 5.0 | % | 3.2 | 31.3 | % | ||||||||||
Interest expense | (20.4 | ) | (19.6 | ) | 4.1 | % | (18.1 | ) | 12.7 | % | |||||||
Other gains and losses, net | (6.6 | ) | 2.1 | N/A | 1.9 | N/A | |||||||||||
Other income/(expense) of CSIP, net | (3.6 | ) | 5.1 | N/A | 7.4 | N/A | |||||||||||
Adjusted income before income taxes | 351.2 | 383.8 | (8.5 | )% | 383.7 | (8.5 | )% | ||||||||||
Adjusted income tax provision | (93.0 | ) | (110.0 | ) | (15.5 | )% | (102.2 | ) | (9.0 | )% | |||||||
Adjusted net income | 258.2 | 273.8 | (5.7 | )% | 281.5 | (8.3 | )% | ||||||||||
Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities | 3.2 | (2.4 | ) | N/A | (3.3 | ) | N/A | ||||||||||
Adjusted net income attributable to Invesco Ltd. | $261.4 | $271.4 | (3.7 | )% | $278.2 | (6.0 | )% | ||||||||||
Adjusted diluted EPS | $0.61 | $0.63 | (3.2 | )% | $0.64 | (4.7 | )% | ||||||||||
Average diluted shares outstanding | 429.1 | 432.2 | (0.7 | )% | 434.8 | (1.3 | )% | ||||||||||
Ending headcount | 6,430 | 6,431 | — | % | 6,155 | 4.5 | % | ||||||||||
Ending AUM (in billions) | $755.8 | $803.6 | (5.9 | )% | $789.6 | (4.3 | )% | ||||||||||
Average AUM (in billions) | $788.9 | $810.9 | (2.7 | )% | $801.7 | (1.6 | )% |
Q3-15 | Q2-15 | % Change | Q3-14 | % Change | |||||||||||||
Operating revenues: | |||||||||||||||||
Investment management fees | $1,016.9 | $1,055.7 | (3.7 | )% | $1,047.3 | (2.9 | )% | ||||||||||
Service and distribution fees | 214.8 | 219.6 | (2.2 | )% | 222.1 | (3.3 | )% | ||||||||||
Performance fees | 15.6 | 6.7 | 132.8 | % | 8.2 | 90.2 | % | ||||||||||
Other | 26.2 | 36.1 | (27.4 | )% | 33.4 | (21.6 | )% | ||||||||||
Total operating revenues | 1,273.5 | 1,318.1 | (3.4 | )% | 1,311.0 | (2.9 | )% | ||||||||||
Operating expenses: | |||||||||||||||||
Employee compensation | 337.6 | 347.2 | (2.8 | )% | 343.8 | (1.8 | )% | ||||||||||
Third-party distribution, service and advisory | 392.3 | 413.3 | (5.1 | )% | 420.2 | (6.6 | )% | ||||||||||
Marketing | 24.9 | 29.7 | (16.2 | )% | 26.6 | (6.4 | )% | ||||||||||
Property, office and technology | 79.0 | 74.8 | 5.6 | % | 76.4 | 3.4 | % | ||||||||||
General and administrative | 87.0 | 89.1 | (2.4 | )% | 114.4 | (24.0 | )% | ||||||||||
Total operating expenses | 920.8 | 954.1 | (3.5 | )% | 981.4 | (6.2 | )% | ||||||||||
Operating income | 352.7 | 364.0 | (3.1 | )% | 329.6 | 7.0 | % | ||||||||||
Other income/(expense): | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | 8.2 | 12.0 | (31.7 | )% | 10.9 | (24.8 | )% | ||||||||||
Interest and dividend income | 2.4 | 2.6 | (7.7 | )% | 2.6 | (7.7 | )% | ||||||||||
Interest expense | (20.4 | ) | (19.6 | ) | 4.1 | % | (18.1 | ) | 12.7 | % | |||||||
Other gains and losses, net | 0.9 | (8.8 | ) | N/A | (1.3 | ) | N/A | ||||||||||
Other income/(expense) of CSIP, net | (3.6 | ) | 5.1 | N/A | 7.4 | N/A | |||||||||||
Consolidated investment products (CIP): | |||||||||||||||||
Interest income of CIP | 64.7 | 65.1 | (0.6 | )% | 53.4 | 21.2 | % | ||||||||||
Interest expense of CIP | (45.9 | ) | (47.3 | ) | (3.0 | )% | (37.5 | ) | 22.4 | % | |||||||
Other gains/(losses) of CIP, net | (17.3 | ) | (19.7 | ) | (12.2 | )% | 0.1 | N/A | |||||||||
Income from continuing operations before income taxes | 341.7 | 353.4 | (3.3 | )% | 347.1 | (1.6 | )% | ||||||||||
Income tax provision | (100.4 | ) | (109.4 | ) | (8.2 | )% | (94.9 | ) | 5.8 | % | |||||||
Income from continuing operations, net of taxes | 241.3 | 244.0 | (1.1 | )% | 252.2 | (4.3 | )% | ||||||||||
Income/(loss) from discontinued operations, net of taxes | — | — | N/A | (0.6 | ) | N/A | |||||||||||
Net income | 241.3 | 244.0 | (1.1 | )% | 251.6 | (4.1 | )% | ||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 8.0 | 13.3 | (39.8 | )% | 4.4 | 81.8 | % | ||||||||||
Net income attributable to Invesco Ltd. | $249.3 | $257.3 | (3.1 | )% | $256.0 | (2.6 | )% | ||||||||||
Earnings per share: | |||||||||||||||||
---Basic EPS from continuing operations | $0.58 | $0.60 | (3.3 | )% | $0.59 | (1.7 | )% | ||||||||||
---Basic EPS from discontinued operations | $— | $— | N/A | $— | N/A | ||||||||||||
---Total basic | $0.58 | $0.60 | (3.3 | )% | $0.59 | (1.7 | )% | ||||||||||
---Diluted EPS from continuing operations | $0.58 | $0.60 | (3.3 | )% | $0.59 | (1.7 | )% | ||||||||||
---Diluted EPS from discontinued operations | $— | $— | N/A | $— | N/A | ||||||||||||
---Total diluted | $0.58 | $0.60 | (3.3 | )% | $0.59 | (1.7 | )% | ||||||||||
Average shares outstanding: | |||||||||||||||||
---basic | 428.8 | 431.9 | (0.7 | )% | 434.3 | (1.3 | )% | ||||||||||
---diluted | 429.1 | 432.2 | (0.7 | )% | 434.8 | (1.3 | )% |
Nine months ended September 30, | ||||||||||
2015 | 2014 | % Change | ||||||||
Operating revenues: | ||||||||||
Investment management fees | $3,074.0 | $3,044.6 | 1.0 | % | ||||||
Service and distribution fees | 647.8 | 675.4 | (4.1 | )% | ||||||
Performance fees | 69.1 | 44.3 | 56.0 | % | ||||||
Other | 92.3 | 106.1 | (13.0 | )% | ||||||
Total operating revenues | 3,883.2 | 3,870.4 | 0.3 | % | ||||||
Operating expenses: | ||||||||||
Employee compensation | 1,045.7 | 1,048.8 | (0.3 | )% | ||||||
Third-party distribution, service and advisory | 1,204.7 | 1,236.2 | (2.5 | )% | ||||||
Marketing | 81.3 | 80.2 | 1.4 | % | ||||||
Property, office and technology | 230.7 | 264.4 | (12.7 | )% | ||||||
General and administrative | 266.0 | 312.1 | (14.8 | )% | ||||||
Total operating expenses | 2,828.4 | 2,941.7 | (3.9 | )% | ||||||
Operating income | 1,054.8 | 928.7 | 13.6 | % | ||||||
Other income/(expense): | ||||||||||
Equity in earnings of unconsolidated affiliates | 32.0 | 26.4 | 21.2 | % | ||||||
Interest and dividend income | 7.5 | 8.6 | (12.8 | )% | ||||||
Interest expense | (58.7 | ) | (55.0 | ) | 6.7 | % | ||||
Other gains and losses, net | (5.2 | ) | 21.5 | N/A | ||||||
Other income/(expense) of CSIP, net | 10.9 | 23.3 | (53.2 | )% | ||||||
Consolidated investment products (CIP): | ||||||||||
Interest income of CIP | 190.0 | 149.7 | 26.9 | % | ||||||
Interest expense of CIP | (138.3 | ) | (98.1 | ) | 41.0 | % | ||||
Other gains/(losses) of CIP, net | (12.6 | ) | 63.4 | N/A | ||||||
Income from continuing operations before income taxes | 1,080.4 | 1,068.5 | 1.1 | % | ||||||
Income tax provision | (311.1 | ) | (290.9 | ) | 6.9 | % | ||||
Income from continuing operations, net of taxes | 769.3 | 777.6 | (1.1 | )% | ||||||
Income/(loss) from discontinued operations, net of taxes | — | (2.4 | ) | N/A | ||||||
Net income | 769.3 | 775.2 | (0.8 | )% | ||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (3.1 | ) | (56.9 | ) | (94.6 | )% | ||||
Net income attributable to Invesco Ltd. | $766.2 | $718.3 | 6.7 | % | ||||||
Earnings per share: | ||||||||||
---Basic EPS from continuing operations | $1.78 | $1.65 | 7.9 | % | ||||||
---Basic EPS from discontinued operations | $— | ($0.01 | ) | N/A | ||||||
---Total basic | $1.78 | $1.65 | 7.9 | % | ||||||
---Diluted EPS from continuing operations | $1.78 | $1.65 | 7.9 | % | ||||||
---Diluted EPS from discontinued operations | $— | ($0.01 | ) | N/A | ||||||
---Total diluted | $1.78 | $1.65 | 7.9 | % | ||||||
Average shares outstanding: | ||||||||||
---basic | 430.9 | 435.6 | (1.1 | )% | ||||||
---diluted | 431.3 | 436.2 | (1.1 | )% |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $1,016.9 | $13.7 | $— | $— | $— | $7.5 | $— | $1,038.1 | ||||||||||||||||||||||||
Service and distribution fees | 214.8 | — | — | — | — | — | — | 214.8 | ||||||||||||||||||||||||
Performance fees | 15.6 | — | — | — | — | 2.0 | — | 17.6 | ||||||||||||||||||||||||
Other | 26.2 | 1.4 | — | — | — | — | — | 27.6 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | — | (2.8 | ) | (392.3 | ) | — | — | — | — | (395.1 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,273.5 | 12.3 | (392.3 | ) | — | — | 9.5 | — | 903.0 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 337.6 | 4.9 | — | — | 4.4 | — | — | 346.9 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | 392.3 | — | (392.3 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 24.9 | 0.9 | — | — | — | — | — | 25.8 | ||||||||||||||||||||||||
Property, office and technology | 79.0 | 0.9 | — | — | — | — | — | 79.9 | ||||||||||||||||||||||||
General and administrative | 87.0 | 1.4 | — | (2.7 | ) | — | (8.7 | ) | — | 77.0 | ||||||||||||||||||||||
Total operating expenses | 920.8 | 8.1 | (392.3 | ) | (2.7 | ) | 4.4 | (8.7 | ) | — | 529.6 | |||||||||||||||||||||
Operating income reconciled to adjusted operating income | 352.7 | 4.2 | — | 2.7 | (4.4 | ) | 18.2 | — | 373.4 | |||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 8.2 | (3.8 | ) | — | — | — | (0.2 | ) | — | 4.2 | ||||||||||||||||||||||
Interest and dividend income | 2.4 | 0.6 | — | — | (0.3 | ) | 1.5 | — | 4.2 | |||||||||||||||||||||||
Interest expense | (20.4 | ) | — | — | — | — | — | — | (20.4 | ) | ||||||||||||||||||||||
Other gains and losses, net | 0.9 | 0.4 | — | (18.4 | ) | 12.1 | — | (1.6 | ) | (6.6 | ) | |||||||||||||||||||||
Other income/(expense) of CSIP, net | (3.6 | ) | (3.6 | ) | ||||||||||||||||||||||||||||
CIP: | ||||||||||||||||||||||||||||||||
Interest income of CIP | 64.7 | — | — | — | — | (64.7 | ) | — | — | |||||||||||||||||||||||
Interest expense of CIP | (45.9 | ) | — | — | — | — | 45.9 | — | — | |||||||||||||||||||||||
Other gains/(losses) of CIP, net | (17.3 | ) | — | — | — | — | 17.3 | — | — | |||||||||||||||||||||||
Income from continuing operations before income taxes | 341.7 | 1.4 | — | (15.7 | ) | 7.4 | 18.0 | (1.6 | ) | 351.2 | ||||||||||||||||||||||
Income tax provision | (100.4 | ) | (1.4 | ) | — | 11.4 | (2.6 | ) | — | — | (93.0 | ) | ||||||||||||||||||||
Income from continuing operations, net of income taxes | 241.3 | — | — | (4.3 | ) | 4.8 | 18.0 | (1.6 | ) | 258.2 | ||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net income | 241.3 | — | — | (4.3 | ) | 4.8 | 18.0 | (1.6 | ) | 258.2 | ||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 8.0 | — | — | — | — | (4.8 | ) | — | 3.2 | |||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $249.3 | $— | $— | ($4.3 | ) | $4.8 | $13.2 | ($1.6 | ) | $261.4 | ||||||||||||||||||||||
Operating margin | 27.7 | % | Adjusted operating margin | 41.4 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 429.1 | Average diluted shares outstanding | 429.1 | |||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $0.58 | Adjusted diluted EPS | $0.61 | |||||||||||||||||||||||||||||
Diluted EPS from discontinued operations | $— | |||||||||||||||||||||||||||||||
Diluted EPS | $0.58 |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $1,055.7 | $19.6 | $— | $— | $— | $8.0 | $— | $1,083.3 | ||||||||||||||||||||||||
Service and distribution fees | 219.6 | — | — | — | — | — | — | 219.6 | ||||||||||||||||||||||||
Performance fees | 6.7 | 4.0 | — | — | — | 2.4 | — | 13.1 | ||||||||||||||||||||||||
Other | 36.1 | 1.8 | — | — | — | — | — | 37.9 | ||||||||||||||||||||||||
Third-party distribution, service and advisory | — | (4.0 | ) | (413.3 | ) | — | — | — | — | (417.3 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,318.1 | 21.4 | (413.3 | ) | — | — | 10.4 | — | 936.6 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 347.2 | 5.5 | — | — | (1.3 | ) | — | — | 351.4 | |||||||||||||||||||||||
Third-party distribution, service and advisory | 413.3 | — | (413.3 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 29.7 | 1.0 | — | — | — | — | — | 30.7 | ||||||||||||||||||||||||
Property, office and technology | 74.8 | 1.0 | — | — | — | — | 6.4 | 82.2 | ||||||||||||||||||||||||
General and administrative | 89.1 | 1.8 | — | (2.6 | ) | — | (1.5 | ) | (4.7 | ) | 82.1 | |||||||||||||||||||||
Total operating expenses | 954.1 | 9.3 | (413.3 | ) | (2.6 | ) | (1.3 | ) | (1.5 | ) | 1.7 | 546.4 | ||||||||||||||||||||
Operating income reconciled to adjusted operating income | 364.0 | 12.1 | — | 2.6 | 1.3 | 11.9 | (1.7 | ) | 390.2 | |||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 12.0 | (9.5 | ) | — | — | — | (0.5 | ) | — | 2.0 | ||||||||||||||||||||||
Interest and dividend income | 2.6 | 0.9 | — | — | (0.3 | ) | 0.8 | — | 4.0 | |||||||||||||||||||||||
Interest expense | (19.6 | ) | — | — | — | — | — | — | (19.6 | ) | ||||||||||||||||||||||
Other gains and losses, net | (8.8 | ) | — | — | — | 3.5 | 1.2 | 6.2 | 2.1 | |||||||||||||||||||||||
Other income/(expense) of CSIP, net | 5.1 | 5.1 | ||||||||||||||||||||||||||||||
CIP: | ||||||||||||||||||||||||||||||||
Interest income of CIP | 65.1 | — | — | — | — | (65.1 | ) | — | — | |||||||||||||||||||||||
Interest expense of CIP | (47.3 | ) | — | — | — | — | 47.3 | — | — | |||||||||||||||||||||||
Other gains/(losses) of CIP, net | (19.7 | ) | — | — | — | — | 19.7 | — | — | |||||||||||||||||||||||
Income from continuing operations before income taxes | 353.4 | 3.5 | — | 2.6 | 4.5 | 15.3 | 4.5 | 383.8 | ||||||||||||||||||||||||
Income tax provision | (109.4 | ) | (3.5 | ) | — | 4.8 | (1.4 | ) | — | (0.5 | ) | (110.0 | ) | |||||||||||||||||||
Income from continuing operations, net of taxes | 244.0 | — | — | 7.4 | 3.1 | 15.3 | 4.0 | 273.8 | ||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net income | 244.0 | — | — | 7.4 | 3.1 | 15.3 | 4.0 | 273.8 | ||||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 13.3 | — | — | — | — | (15.7 | ) | — | (2.4 | ) | ||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $257.3 | $— | $— | $7.4 | $3.1 | ($0.4 | ) | $4.0 | $271.4 | |||||||||||||||||||||||
Operating margin | 27.6 | % | Adjusted operating margin | 41.7 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 432.2 | Average diluted shares outstanding | 432.2 | |||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $0.60 | Adjusted diluted EPS | $0.63 | |||||||||||||||||||||||||||||
Diluted EPS from discontinued operations | $— | |||||||||||||||||||||||||||||||
Diluted EPS | $0.60 |
U.S. GAAP basis | Proportional consolidation of joint ventures | Third party distribution, service and advisory expenses | Acquisition / Disposition related | Market appreciation / depreciation of deferred compensation awards | CIP | Other reconciling items | Non-GAAP basis | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Investment management fees | $1,047.3 | $17.1 | $— | $— | $— | $6.6 | $— | $1,071.0 | ||||||||||||||||||||||||
Service and distribution fees | 222.1 | — | — | — | — | — | — | 222.1 | ||||||||||||||||||||||||
Performance fees | 8.2 | — | — | — | — | 2.1 | — | 10.3 | ||||||||||||||||||||||||
Other | 33.4 | 1.2 | — | — | — | (0.1 | ) | — | 34.5 | |||||||||||||||||||||||
Third-party distribution, service and advisory | — | (4.0 | ) | (420.2 | ) | — | — | — | — | (424.2 | ) | |||||||||||||||||||||
Total operating revenues reconciled to net revenues | 1,311.0 | 14.3 | (420.2 | ) | — | — | 8.6 | — | 913.7 | |||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Employee compensation | 343.8 | 5.9 | — | — | (0.2 | ) | — | — | 349.5 | |||||||||||||||||||||||
Third-party distribution, service and advisory | 420.2 | — | (420.2 | ) | — | — | — | — | — | |||||||||||||||||||||||
Marketing | 26.6 | 0.8 | — | — | — | — | — | 27.4 | ||||||||||||||||||||||||
Property, office and technology | 76.4 | 0.9 | — | — | — | — | — | 77.3 | ||||||||||||||||||||||||
General and administrative | 114.4 | 1.4 | — | (2.7 | ) | — | (11.3 | ) | (24.2 | ) | 77.6 | |||||||||||||||||||||
Total operating expenses | 981.4 | 9.0 | (420.2 | ) | (2.7 | ) | (0.2 | ) | (11.3 | ) | (24.2 | ) | 531.8 | |||||||||||||||||||
Operating income reconciled to adjusted operating income | 329.6 | 5.3 | — | 2.7 | 0.2 | 19.9 | 24.2 | 381.9 | ||||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 10.9 | (4.2 | ) | — | — | — | 0.7 | — | 7.4 | |||||||||||||||||||||||
Interest and dividend income | 2.6 | 0.9 | — | — | (1.0 | ) | 0.7 | — | 3.2 | |||||||||||||||||||||||
Interest expense | (18.1 | ) | — | — | — | — | — | — | (18.1 | ) | ||||||||||||||||||||||
Other gains and losses, net | (1.3 | ) | — | — | — | 3.2 | — | — | 1.9 | |||||||||||||||||||||||
Other income/(expense) of CSIP, net | 7.4 | — | — | — | — | — | — | 7.4 | ||||||||||||||||||||||||
CIP: | ||||||||||||||||||||||||||||||||
Interest income of CIP | 53.4 | — | — | — | — | (53.4 | ) | — | — | |||||||||||||||||||||||
Interest expense of CIP | (37.5 | ) | — | — | — | — | 37.5 | — | — | |||||||||||||||||||||||
Other gains/(losses) of CIP, net | 0.1 | — | — | — | — | (0.1 | ) | — | — | |||||||||||||||||||||||
Income from continuing operations before income taxes | 347.1 | 2.0 | — | 2.7 | 2.4 | 5.3 | 24.2 | 383.7 | ||||||||||||||||||||||||
Income tax provision | (94.9 | ) | (2.0 | ) | — | 5.0 | (1.3 | ) | — | (9.0 | ) | (102.2 | ) | |||||||||||||||||||
Income from continuing operations, net of taxes | 252.2 | — | — | 7.7 | 1.1 | 5.3 | 15.2 | 281.5 | ||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | (0.6 | ) | — | — | 0.6 | — | — | — | — | |||||||||||||||||||||||
Net income | 251.6 | — | — | 8.3 | 1.1 | 5.3 | 15.2 | 281.5 | ||||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 4.4 | — | — | — | — | (7.7 | ) | — | (3.3 | ) | ||||||||||||||||||||||
Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd. | $256.0 | $— | $— | $8.3 | $1.1 | ($2.4 | ) | $15.2 | $278.2 | |||||||||||||||||||||||
Operating margin | 25.1 | % | Adjusted operating margin | 41.8 | % | |||||||||||||||||||||||||||
Average diluted shares outstanding | 434.8 | Average diluted shares outstanding | 434.8 | |||||||||||||||||||||||||||||
Diluted EPS from continuing operations | $0.59 | Adjusted diluted EPS | $0.64 | |||||||||||||||||||||||||||||
Diluted EPS from discontinued operations | $— | |||||||||||||||||||||||||||||||
Diluted EPS | $0.59 |
September 30, 2015 | December 31, 2014 | ||||||
ADJUSTED ASSETS | |||||||
Cash and cash equivalents | $1,590.7 | $1,514.2 | |||||
Unsettled fund receivables | 979.8 | 732.4 | |||||
Accounts receivable | 533.4 | 549.7 | |||||
Investments | 1,024.9 | 980.3 | |||||
Assets of consolidated sponsored investment products (CSIP) | 325.5 | 305.8 | |||||
Assets held for policyholders | 5,500.5 | 1,697.9 | |||||
Prepaid assets | 126.2 | 132.1 | |||||
Other assets | 85.6 | 92.0 | |||||
Property, equipment and software, net | 415.9 | 402.6 | |||||
Intangible assets, net | 1,357.3 | 1,246.7 | |||||
Goodwill | 6,269.6 | 6,579.4 | |||||
Total adjusted assets | $18,209.4 | $14,233.1 | |||||
ADJUSTED LIABILITIES | |||||||
Accrued compensation and benefits | $571.2 | $667.3 | |||||
Accounts payable and accrued expenses | 882.4 | 757.3 | |||||
Policyholder payables | 5,500.5 | 1,697.9 | |||||
Unsettled fund payables | 962.5 | 730.1 | |||||
Long-term debt | 1,689.3 | 1,589.3 | |||||
Deferred tax liabilities, net | 316.3 | 304.8 | |||||
Total adjusted liabilities | 9,922.2 | 5,746.7 | |||||
ADJUSTED TEMPORARY EQUITY | |||||||
Redeemable noncontrolling interests in CSIP | 176.4 | 165.5 | |||||
ADJUSTED PERMANENT EQUITY | |||||||
Equity attributable to Invesco Ltd.: | |||||||
Common shares | 98.1 | 98.1 | |||||
Additional paid-in-capital | 6,166.2 | 6,133.6 | |||||
Treasury shares | (2,194.7 | ) | (1,898.1 | ) | |||
Retained earnings | 4,352.1 | 3,905.7 | |||||
Accumulated other comprehensive income/(loss), net of tax | (329.0 | ) | 69.0 | ||||
Total adjusted equity attributable to Invesco Ltd. | 8,092.7 | 8,308.3 | |||||
Adjusted equity attributable to nonredeemable noncontrolling interests in consolidated entities | 18.1 | 12.6 | |||||
Total adjusted permanent equity | 8,110.8 | 8,320.9 | |||||
Total adjusted liabilities, temporary and permanent equity | $18,209.4 | $14,233.1 |
Invesco Ltd. U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited, in millions) | |||||||
September 30, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $1,590.7 | $1,514.2 | |||||
Unsettled fund receivables | 979.8 | 732.4 | |||||
Accounts receivable | 529.2 | 545.9 | |||||
Investments | 938.9 | 885.4 | |||||
Assets of consolidated sponsored investment products (CSIP) | 325.5 | 305.8 | |||||
Assets of consolidated investment products (CIP): | |||||||
Cash and cash equivalents of CIP | 587.5 | 404.0 | |||||
Accounts receivable of CIP | 135.6 | 161.3 | |||||
Investments of CIP | 6,119.9 | 5,762.8 | |||||
Assets held for policyholders | 5,500.5 | 1,697.9 | |||||
Prepaid assets | 126.2 | 132.1 | |||||
Other assets | 85.6 | 92.0 | |||||
Property, equipment and software, net | 415.9 | 402.6 | |||||
Intangible assets, net | 1,357.3 | 1,246.7 | |||||
Goodwill | 6,269.6 | 6,579.4 | |||||
Total assets | $24,962.2 | $20,462.5 | |||||
LIABILITIES | |||||||
Accrued compensation and benefits | $571.2 | $667.3 | |||||
Accounts payable and accrued expenses | 882.4 | 757.3 | |||||
Liabilities of CIP: | |||||||
Debt of CIP | 5,669.7 | 5,149.6 | |||||
Other liabilities of CIP | 338.1 | 280.9 | |||||
Policyholder payables | 5,500.5 | 1,697.9 | |||||
Unsettled fund payables | 962.5 | 730.1 | |||||
Long-term debt | 1,689.3 | 1,589.3 | |||||
Deferred tax liabilities, net | 316.3 | 304.8 | |||||
Total liabilities | 15,930.0 | 11,177.2 | |||||
TEMPORARY EQUITY | |||||||
Redeemable noncontrolling interests in CSIP | 176.4 | 165.5 | |||||
PERMANENT EQUITY | |||||||
Equity attributable to Invesco Ltd.: | |||||||
Common shares | 98.1 | 98.1 | |||||
Additional paid-in-capital | 6,166.2 | 6,133.6 | |||||
Treasury shares | (2,194.7 | ) | (1,898.1 | ) | |||
Retained earnings | 4,351.4 | 3,926.0 | |||||
Retained earnings appropriated for investors in CIP | — | 17.6 | |||||
Accumulated other comprehensive income/(loss), net of tax | (328.3 | ) | 48.8 | ||||
Total equity attributable to Invesco Ltd. | 8,092.7 | 8,326.0 | |||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 763.1 | 793.8 | |||||
Total permanent equity | 8,855.8 | 9,119.8 | |||||
Total liabilities, temporary and permanent equity | $24,962.2 | $20,462.5 |
Invesco Ltd. Reconciliations of Condensed Consolidated Balance Sheet Information Excluding CIP to U.S. GAAP Condensed Consolidated Balance Sheets (unaudited, in millions) | |||||||||||||||||||||||
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $1,590.7 | $— | $1,590.7 | $1,514.2 | $— | $1,514.2 | |||||||||||||||||
Unsettled fund receivables | 979.8 | — | 979.8 | 732.4 | — | 732.4 | |||||||||||||||||
Accounts receivable | 533.4 | (4.2 | ) | 529.2 | 549.7 | (3.8 | ) | 545.9 | |||||||||||||||
Investments | 1,024.9 | (86.0 | ) | 938.9 | 980.3 | (94.9 | ) | 885.4 | |||||||||||||||
Assets of CSIP | 325.5 | — | 325.5 | 305.8 | — | 305.8 | |||||||||||||||||
Assets of CIP: | |||||||||||||||||||||||
Cash and cash equivalents of CIP | — | 587.5 | 587.5 | — | 404.0 | 404.0 | |||||||||||||||||
Accounts receivable of CIP | — | 135.6 | 135.6 | — | 161.3 | 161.3 | |||||||||||||||||
Investments of CIP | — | 6,119.9 | 6,119.9 | — | 5,762.8 | 5,762.8 | |||||||||||||||||
Assets held for policyholders | 5,500.5 | — | 5,500.5 | 1,697.9 | — | 1,697.9 | |||||||||||||||||
Prepaid assets | 126.2 | — | 126.2 | 132.1 | — | 132.1 | |||||||||||||||||
Other assets | 85.6 | — | 85.6 | 92.0 | — | 92.0 | |||||||||||||||||
Property, equipment and software, net | 415.9 | — | 415.9 | 402.6 | — | 402.6 | |||||||||||||||||
Intangible assets, net | 1,357.3 | — | 1,357.3 | 1,246.7 | — | 1,246.7 | |||||||||||||||||
Goodwill | 6,269.6 | — | 6,269.6 | 6,579.4 | — | 6,579.4 | |||||||||||||||||
Total assets | $18,209.4 | $6,752.8 | $24,962.2 | $14,233.1 | $6,229.4 | $20,462.5 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Accrued compensation and benefits | $571.2 | $— | $571.2 | $667.3 | $— | $667.3 | |||||||||||||||||
Accounts payable and accrued expenses | 882.4 | — | 882.4 | 757.3 | — | 757.3 | |||||||||||||||||
Liabilities of CIP: | |||||||||||||||||||||||
Debt of CIP | — | 5,669.7 | 5,669.7 | — | 5,149.6 | 5,149.6 | |||||||||||||||||
Other liabilities of CIP | — | 338.1 | 338.1 | — | 280.9 | 280.9 | |||||||||||||||||
Policyholder payables | 5,500.5 | — | 5,500.5 | 1,697.9 | — | 1,697.9 | |||||||||||||||||
Unsettled fund payables | 962.5 | — | 962.5 | 730.1 | — | 730.1 | |||||||||||||||||
Long-term debt | 1,689.3 | — | 1,689.3 | 1,589.3 | — | 1,589.3 | |||||||||||||||||
Deferred tax liabilities, net | 316.3 | — | 316.3 | 304.8 | — | 304.8 | |||||||||||||||||
Total liabilities | 9,922.2 | 6,007.8 | 15,930.0 | 5,746.7 | 5,430.5 | 11,177.2 | |||||||||||||||||
TEMPORARY EQUITY | |||||||||||||||||||||||
Redeemable noncontrolling interests in CSIP | 176.4 | — | 176.4 | 165.5 | — | 165.5 | |||||||||||||||||
PERMANENT EQUITY | |||||||||||||||||||||||
Equity attributable to Invesco Ltd.: | |||||||||||||||||||||||
Common shares | 98.1 | — | 98.1 | 98.1 | — | 98.1 | |||||||||||||||||
Additional paid-in-capital | 6,166.2 | — | 6,166.2 | 6,133.6 | — | 6,133.6 | |||||||||||||||||
Treasury shares | (2,194.7 | ) | — | (2,194.7 | ) | (1,898.1 | ) | — | (1,898.1 | ) | |||||||||||||
Retained earnings | 4,352.1 | (0.7 | ) | 4,351.4 | 3,905.7 | 20.3 | 3,926.0 | ||||||||||||||||
Retained earnings appropriated for investors in CIP | — | — | — | — | 17.6 | 17.6 | |||||||||||||||||
Accumulated other comprehensive income/(loss), net of tax | (329.0 | ) | 0.7 | (328.3 | ) | 69.0 | (20.2 | ) | 48.8 | ||||||||||||||
Total equity attributable to Invesco Ltd. | 8,092.7 | — | 8,092.7 | 8,308.3 | 17.7 | 8,326.0 | |||||||||||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 18.1 | 745.0 | 763.1 | 12.6 | 781.2 | 793.8 | |||||||||||||||||
Total permanent equity | 8,110.8 | 745.0 | 8,855.8 | 8,320.9 | 798.9 | 9,119.8 | |||||||||||||||||
Total liabilities, temporary and permanent equity | $18,209.4 | $6,752.8 | $24,962.2 | $14,233.1 | $6,229.4 | $20,462.5 |
Nine months ended September 30, | |||||||
2015 | 2014 | ||||||
Adjusted operating activities: | |||||||
U.S. GAAP net income | $769.3 | $775.2 | |||||
Consolidated investment product (CIP) net (income)/loss | 21.0 | (52.8 | ) | ||||
Net income adjusted to remove impact of CIP | 790.3 | 722.4 | |||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||
Amortization and depreciation | 68.6 | 67.4 | |||||
Share-based compensation expense | 112.9 | 104.3 | |||||
Other (gains)/losses, net | 1.3 | (26.2 | ) | ||||
Other (gains)/losses of CSIP, net | (1.6 | ) | (15.8 | ) | |||
Equity in earnings of unconsolidated affiliates | (33.0 | ) | (30.5 | ) | |||
Dividends from unconsolidated affiliates | 17.9 | 18.8 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in cash held by CSIP | (3.1 | ) | (5.4 | ) | |||
(Purchase)/sale of trading investments, net | (106.7 | ) | (15.9 | ) | |||
(Increase)/decrease in receivables | (4,150.4 | ) | (224.6 | ) | |||
Increase/(decrease) in payables | 4,061.4 | 102.3 | |||||
Adjusted net cash provided by/(used in) operating activities | 757.6 | 696.8 | |||||
Adjusted investing activities: | |||||||
Purchase of property, equipment and software | (88.1 | ) | (86.7 | ) | |||
Purchase of available-for-sale investments | (102.3 | ) | (179.6 | ) | |||
Sale of available-for-sale investments | 108.2 | 139.9 | |||||
Purchase of investments by CSIP | (397.5 | ) | (565.9 | ) | |||
Sale of investments by CSIP | 384.0 | 366.4 | |||||
Purchase of other investments | (116.6 | ) | (88.7 | ) | |||
Sale of other investments | 73.8 | 52.5 | |||||
Returns of capital and distributions from unconsolidated partnership investments | 45.6 | 35.5 | |||||
Sale of business | — | 60.8 | |||||
Adjusted net cash provided by/(used in) investing activities | (92.9 | ) | (265.8 | ) | |||
Adjusted financing activities: | |||||||
Proceeds from exercises of share options | 2.1 | 8.6 | |||||
Purchases of treasury shares | (334.0 | ) | (219.6 | ) | |||
Dividends paid | (340.8 | ) | (315.7 | ) | |||
Excess tax benefits from share-based compensation | 19.1 | 21.9 | |||||
Repayment of unsettled fund account | — | (35.7 | ) | ||||
Third-party capital invested into CSIP | 13.5 | 157.1 | |||||
Third-party capital distributed by CSIP | — | (3.7 | ) | ||||
Net borrowings/(repayments) under credit facility | 99.5 | — | |||||
Payment of contingent consideration | (4.6 | ) | — | ||||
Adjusted net cash provided by/(used in) financing activities | (545.2 | ) | (387.1 | ) | |||
Increase /(decrease) in cash and cash equivalents | 119.5 | 43.9 | |||||
Foreign exchange movement on cash and cash equivalents | (43.0 | ) | (22.5 | ) | |||
Cash and cash equivalents, beginning of period | 1,514.2 | 1,331.2 | |||||
Cash and cash equivalents, end of period | $1,590.7 | $1,352.6 |
Nine months ended September 30, | |||||||
2015 | 2014 | ||||||
Operating activities: | |||||||
Net income | $769.3 | $775.2 | |||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||
Amortization and depreciation | 68.6 | 67.4 | |||||
Share-based compensation expense | 112.9 | 104.3 | |||||
Other (gains)/losses, net | 5.2 | (21.5 | ) | ||||
Other (gains)/losses of CSIP, net | (1.6 | ) | (15.8 | ) | |||
Other (gains)/losses of CIP, net | 12.6 | (63.4 | ) | ||||
Equity in earnings of unconsolidated affiliates | (32.0 | ) | (26.4 | ) | |||
Dividends from unconsolidated affiliates | 17.9 | 18.8 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase)/decrease in cash held by CIP | (184.3 | ) | 313.8 | ||||
(Increase)/decrease in cash held by CSIP | (3.1 | ) | (5.4 | ) | |||
(Purchase)/sale of trading investments, net | (106.7 | ) | (15.9 | ) | |||
(Increase)/decrease in receivables | (4,168.4 | ) | (233.8 | ) | |||
Increase/(decrease) in payables | 4,065.2 | 120.1 | |||||
Net cash provided by/(used in) operating activities | 555.6 | 1,017.4 | |||||
Investing activities: | |||||||
Purchase of property, equipment and software | (88.1 | ) | (86.7 | ) | |||
Purchase of available-for-sale investments | (41.5 | ) | (112.0 | ) | |||
Sale of available-for-sale investments | 48.5 | 100.8 | |||||
Purchase of investments by CIP | (3,226.4 | ) | (4,228.6 | ) | |||
Sale of investments by CIP | 2,827.8 | 3,014.2 | |||||
Purchase of investments by CSIP | (397.5 | ) | (565.9 | ) | |||
Sale of investments by CSIP | 384.0 | 366.4 | |||||
Purchase of other investments | (115.2 | ) | (84.9 | ) | |||
Sale of other investments | 73.8 | 52.5 | |||||
Returns of capital and distributions from unconsolidated partnership investments | 45.1 | 33.8 | |||||
Sale of business | — | 60.8 | |||||
Net cash provided by/(used in) investing activities | (489.5 | ) | (1,449.6 | ) | |||
Financing activities: | |||||||
Proceeds from exercises of share options | 2.1 | 8.6 | |||||
Purchases of treasury shares | (334.0 | ) | (219.6 | ) | |||
Dividends paid | (340.8 | ) | (315.7 | ) | |||
Excess tax benefits from share-based compensation | 19.1 | 21.9 | |||||
Repayment of unsettled fund account | — | (35.7 | ) | ||||
Third-party capital invested into CIP | 63.3 | 160.1 | |||||
Third-party capital distributed by CIP | (99.0 | ) | (131.2 | ) | |||
Third-party capital invested into CSIP | 13.5 | 157.1 | |||||
Third-party capital distributed by CSIP | — | (3.7 | ) | ||||
Borrowings of debt by CIP | 2,091.8 | 1,339.6 | |||||
Repayments of debt by CIP | (1,457.5 | ) | (505.3 | ) | |||
Net borrowings/(repayments) under credit facility | 99.5 | — | |||||
Payment of contingent consideration | (4.6 | ) | — | ||||
Net cash provided by/(used in) financing activities | 53.4 | 476.1 | |||||
Increase/(decrease) in cash and cash equivalents | 119.5 | 43.9 | |||||
Foreign exchange movement on cash and cash equivalents | (43.0 | ) | (22.5 | ) | |||
Cash and cash equivalents, beginning of period | 1,514.2 | 1,331.2 | |||||
Cash and cash equivalents, end of period | $1,590.7 | $1,352.6 |
Nine months ended September 30, 2015 | Nine months ended September 30, 2014 | ||||||||||||||||||||||
Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | Before Consolidation (non-GAAP) | Impact of Consolidation | Total (U.S. GAAP) | ||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net income | $790.3 | ($21.0 | ) | $769.3 | $722.4 | $52.8 | $775.2 | ||||||||||||||||
Amortization and depreciation | 68.6 | — | 68.6 | 67.4 | — | 67.4 | |||||||||||||||||
Share-based compensation expense | 112.9 | — | 112.9 | 104.3 | — | 104.3 | |||||||||||||||||
Other (gains)/losses, net | 1.3 | 3.9 | 5.2 | (26.2 | ) | 4.7 | (21.5 | ) | |||||||||||||||
Other (gains)/losses of CSIP, net | (1.6 | ) | — | (1.6 | ) | (15.8 | ) | — | (15.8 | ) | |||||||||||||
Other (gains)/losses of CIP, net | — | 12.6 | 12.6 | — | (63.4 | ) | (63.4 | ) | |||||||||||||||
Equity in earnings of unconsolidated affiliates | (33.0 | ) | 1.0 | (32.0 | ) | (30.5 | ) | 4.1 | (26.4 | ) | |||||||||||||
Dividends from unconsolidated affiliates | 17.9 | — | 17.9 | 18.8 | — | 18.8 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
(Increase)/decrease in cash held by CIP | — | (184.3 | ) | (184.3 | ) | — | 313.8 | 313.8 | |||||||||||||||
(Increase)/decrease in cash held by CSIP | (3.1 | ) | — | (3.1 | ) | (5.4 | ) | — | (5.4 | ) | |||||||||||||
(Purchase)/sale of trading investments, net | (106.7 | ) | — | (106.7 | ) | (15.9 | ) | — | (15.9 | ) | |||||||||||||
(Increase)/decrease in receivables | (4,150.4 | ) | (18.0 | ) | (4,168.4 | ) | (224.6 | ) | (9.2 | ) | (233.8 | ) | |||||||||||
Increase/(decrease) in payables | 4,061.4 | 3.8 | 4,065.2 | 102.3 | 17.8 | 120.1 | |||||||||||||||||
Net cash provided by/(used in) operating activities | 757.6 | (202.0 | ) | 555.6 | 696.8 | 320.6 | 1,017.4 | ||||||||||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of property, equipment and software | (88.1 | ) | — | (88.1 | ) | (86.7 | ) | — | (86.7 | ) | |||||||||||||
Purchase of available-for-sale investments | (102.3 | ) | 60.8 | (41.5 | ) | (179.6 | ) | 67.6 | (112.0 | ) | |||||||||||||
Sale of available-for-sale investments | 108.2 | (59.7 | ) | 48.5 | 139.9 | (39.1 | ) | 100.8 | |||||||||||||||
Purchase of investments by CIP | — | (3,226.4 | ) | (3,226.4 | ) | — | (4,228.6 | ) | (4,228.6 | ) | |||||||||||||
Sale of investments by CIP | — | 2,827.8 | 2,827.8 | — | 3,014.2 | 3,014.2 | |||||||||||||||||
Purchase of investments by CSIP | (397.5 | ) | — | (397.5 | ) | (565.9 | ) | — | (565.9 | ) | |||||||||||||
Sale of investments by CSIP | 384.0 | — | 384.0 | 366.4 | — | 366.4 | |||||||||||||||||
Purchase of other investments | (116.6 | ) | 1.4 | (115.2 | ) | (88.7 | ) | 3.8 | (84.9 | ) | |||||||||||||
Sale of other investments | 73.8 | — | 73.8 | 52.5 | — | 52.5 | |||||||||||||||||
Returns of capital and distributions from unconsolidated partnership investments | 45.6 | (0.5 | ) | 45.1 | 35.5 | (1.7 | ) | 33.8 | |||||||||||||||
Sale of business | — | — | — | 60.8 | — | 60.8 | |||||||||||||||||
Net cash provided by/(used in) investing activities | (92.9 | ) | (396.6 | ) | (489.5 | ) | (265.8 | ) | (1,183.8 | ) | (1,449.6 | ) | |||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from exercises of share options | 2.1 | — | 2.1 | 8.6 | — | 8.6 | |||||||||||||||||
Purchases of treasury shares | (334.0 | ) | — | (334.0 | ) | (219.6 | ) | — | (219.6 | ) | |||||||||||||
Dividends paid | (340.8 | ) | — | (340.8 | ) | (315.7 | ) | — | (315.7 | ) | |||||||||||||
Excess tax benefits from share-based compensation | 19.1 | — | 19.1 | 21.9 | — | 21.9 | |||||||||||||||||
Repayment of unsettled fund account | — | — | — | (35.7 | ) | — | (35.7 | ) | |||||||||||||||
Third-party capital invested into CIP | — | 63.3 | 63.3 | — | 160.1 | 160.1 | |||||||||||||||||
Third-party capital distributed by CIP | — | (99.0 | ) | (99.0 | ) | — | (131.2 | ) | (131.2 | ) | |||||||||||||
Third-party capital invested into CSIP | 13.5 | — | 13.5 | 157.1 | — | 157.1 | |||||||||||||||||
Third-party capital distributed by CSIP | — | — | — | (3.7 | ) | — | (3.7 | ) | |||||||||||||||
Borrowings of debt by CIP | — | 2,091.8 | 2,091.8 | — | 1,339.6 | 1,339.6 | |||||||||||||||||
Repayments of debt by CIP | — | (1,457.5 | ) | (1,457.5 | ) | — | (505.3 | ) | (505.3 | ) | |||||||||||||
Net borrowings/(repayments) under credit facility | 99.5 | — | 99.5 | — | — | — | |||||||||||||||||
Payment of contingent consideration | (4.6 | ) | — | (4.6 | ) | — | — | — | |||||||||||||||
Net cash provided by/(used in) financing activities | (545.2 | ) | 598.6 | 53.4 | (387.1 | ) | 863.2 | 476.1 | |||||||||||||||
Increase/(decrease) in cash and cash equivalents | 119.5 | — | 119.5 | 43.9 | — | 43.9 | |||||||||||||||||
Foreign exchange movement on cash and cash equivalents | (43.0 | ) | — | (43.0 | ) | (22.5 | ) | — | (22.5 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 1,514.2 | — | 1,514.2 | 1,331.2 | — | 1,331.2 | |||||||||||||||||
Cash and cash equivalents, end of period | $1,590.7 | $— | $1,590.7 | $1,352.6 | $— | $1,352.6 |
1. | Acquisition/disposition related adjustments |
in millions | Q3-15 | Q2-15 | Q3-14 | |||||||||
Intangible amortization | $2.7 | $2.6 | $2.7 | |||||||||
Taxation on amortization | (0.4 | ) | (0.3 | ) | (0.4 | ) | ||||||
Deferred taxation | 4.8 | 5.1 | 5.4 | |||||||||
Changes in the fair value of contingent consideration | (18.4 | ) | — | — | ||||||||
Taxation on changes in the fair value of contingent consideration | 7.0 | — | — | |||||||||
(Income)/loss from discontinued operations, net of taxes | — | — | 0.6 | |||||||||
($4.3 | ) | $7.4 | $8.3 | |||||||||
4. | Consolidated investment products (CIP) |
5. | Market appreciation / depreciation of deferred compensation awards |
in millions | Q3-15 | Q2-15 | Q3-14 | |||||||||
Market (depreciation)/appreciation of compensation liability | ($4.4 | ) | $1.3 | $0.2 | ||||||||
Investment loss included in other gains and losses, net | 11.8 | 3.2 | 2.2 | |||||||||
Net taxation on deferred compensation adjustments | (2.6 | ) | (1.4 | ) | (1.3 | ) | ||||||
$4.8 | $3.1 | $1.1 | ||||||||||
6. | Other reconciling items |
in millions | Q3-15 | Q2-15 | Q3-14 | |||||||||
Foreign exchange hedge loss/(gain) (a) | ($1.6 | ) | $6.2 | $— | ||||||||
Business optimization charges: (b) | ||||||||||||
Property, office and technology | — | (6.4 | ) | — | ||||||||
Taxation on business optimization charges | — | 1.3 | — | |||||||||
Fund reimbursement expense (c) | — | 4.7 | 24.2 | |||||||||
Taxation on fund reimbursement expense (c) | — | (1.8 | ) | (9.0 | ) | |||||||
($1.6 | ) | $4.0 | $15.2 | |||||||||
a. | Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through March 31, 2016. The adjustment from U.S. GAAP to non-GAAP earnings removes the unrealized gains and losses that result from market volatility. |
b. | Business optimization: Operating expenses for the second quarter 2015 include a credit of $6.4 million related to the provision associated with vacated leased properties. |
c. | Included within general and administrative expenses for the second quarter 2015 is a charge of $4.7 million (third quarter 2014: $24.2 million) in respect of a multi-year fund reimbursement expense associated with historical private equity management fees and related professional services fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees. |
7. | Definition of operating margin and adjusted operating margin |
8. | Definition of adjusted diluted EPS |
9. | Balance sheets and cash flow information excluding CIP |
10. | U.S. GAAP Effective Tax Rate |
(in billions) | Q3-15 | Q2-15 | % Change | Q3-14 | ||||||||||
Beginning Assets | $803.6 | $798.3 | 0.7 | % | $802.4 | |||||||||
Long-term inflows | 43.5 | 52.1 | (16.5 | )% | 44.4 | |||||||||
Long-term outflows | (47.4 | ) | (46.2 | ) | 2.6 | % | (38.4 | ) | ||||||
Long-term net flows | (3.9 | ) | 5.9 | N/A | 6.0 | |||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.3 | ) | 200.0 | % | (3.2 | ) | ||||||
Net flows in institutional money market funds | (1.5 | ) | (2.6 | ) | (42.3 | )% | (0.8 | ) | ||||||
Total net flows | (6.3 | ) | 3.0 | N/A | 2.0 | |||||||||
Market gains and losses/reinvestment | (35.6 | ) | (6.2 | ) | 474.2 | % | (5.1 | ) | ||||||
Foreign currency translation | (5.9 | ) | 8.5 | N/A | (9.7 | ) | ||||||||
Ending Assets | $755.8 | $803.6 | (5.9 | )% | $789.6 | |||||||||
Average long-term AUM | $685.5 | $706.1 | (2.9 | )% | $683.4 | |||||||||
Average AUM | $788.9 | $810.9 | (2.7 | )% | $801.7 | |||||||||
Gross revenue yield on AUM(a) | 65.1 | bps | 65.6 | bps | 65.8 | bps | ||||||||
Gross revenue yield on AUM before performance fees(a) | 64.3 | bps | 65.2 | bps | 65.4 | bps | ||||||||
Net revenue yield on AUM(b) | 45.8 | bps | 46.2 | bps | 45.6 | bps | ||||||||
Net revenue yield on AUM before performance fees(b) | 44.9 | bps | 45.6 | bps | 45.1 | bps |
(in billions) | Total AUM | Active(e) | Passive(e) | ||||||||
June 30, 2015 | $803.6 | $662.0 | $141.6 | ||||||||
Long-term inflows | 43.5 | 36.7 | 6.8 | ||||||||
Long-term outflows | (47.4 | ) | (38.3 | ) | (9.1 | ) | |||||
Long-term net flows | (3.9 | ) | (1.6 | ) | (2.3 | ) | |||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | — | (0.9 | ) | ||||||
Net flows in institutional money market funds | (1.5 | ) | (1.6 | ) | 0.1 | ||||||
Total net flows | (6.3 | ) | (3.2 | ) | (3.1 | ) | |||||
Market gains and losses/reinvestment | (35.6 | ) | (28.8 | ) | (6.8 | ) | |||||
Foreign currency translation | (5.9 | ) | (5.9 | ) | — | ||||||
September 30, 2015 | $755.8 | $624.1 | $131.7 | ||||||||
Average AUM | $788.9 | $650.5 | $138.4 | ||||||||
Gross revenue yield on AUM(a) | 65.1bps | 75.8bps | 14.9bps | ||||||||
Net revenue yield on AUM(b) | 45.8bps | 52.4bps | 14.9bps | ||||||||
By channel: (in billions) | Total | Retail | Institutional | ||||||||
June 30, 2015 | $803.6 | $541.3 | $262.3 | ||||||||
Long-term inflows | 43.5 | 32.0 | 11.5 | ||||||||
Long-term outflows | (47.4 | ) | (36.2 | ) | (11.2 | ) | |||||
Long-term net flows | (3.9 | ) | (4.2 | ) | 0.3 | ||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | ||||||
Net flows in institutional money market funds | (1.5 | ) | — | (1.5 | ) | ||||||
Total net flows | (6.3 | ) | (5.1 | ) | (1.2 | ) | |||||
Market gains and losses/reinvestment | (35.6 | ) | (31.4 | ) | (4.2 | ) | |||||
Foreign currency translation | (5.9 | ) | (5.4 | ) | (0.5 | ) | |||||
September 30, 2015 | $755.8 | $499.4 | $256.4 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market (d) | Alternatives(c) | |||||||||||||||||
June 30, 2015 | $803.6 | $394.7 | $187.5 | $53.6 | $67.9 | $99.9 | |||||||||||||||||
Long-term inflows | 43.5 | 19.6 | 10.5 | 3.2 | 1.3 | 8.9 | |||||||||||||||||
Long-term outflows | (47.4 | ) | (25.6 | ) | (11.3 | ) | (4.3 | ) | (1.0 | ) | (5.2 | ) | |||||||||||
Long-term net flows | (3.9 | ) | (6.0 | ) | (0.8 | ) | (1.1 | ) | 0.3 | 3.7 | |||||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (1.5 | ) | — | — | — | (1.5 | ) | — | |||||||||||||||
Total net flows | (6.3 | ) | (6.9 | ) | (0.8 | ) | (1.1 | ) | (1.2 | ) | 3.7 | ||||||||||||
Market gains and losses/reinvestment | (35.6 | ) | (31.6 | ) | (0.4 | ) | (1.4 | ) | 0.1 | (2.3 | ) | ||||||||||||
Foreign currency translation | (5.9 | ) | (3.8 | ) | (0.8 | ) | (1.0 | ) | — | (0.3 | ) | ||||||||||||
September 30, 2015 | $755.8 | $352.4 | $185.5 | $50.1 | $66.8 | $101.0 | |||||||||||||||||
Average AUM | $788.9 | $379.7 | $187.1 | $52.4 | $69.6 | $100.1 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
June 30, 2015 | $803.6 | $530.8 | $24.9 | $110.7 | $77.0 | $60.2 | |||||||||||||||||
Long-term inflows | 43.5 | 20.6 | 0.9 | 5.7 | 8.3 | 8.0 | |||||||||||||||||
Long-term outflows | (47.4 | ) | (25.6 | ) | (0.9 | ) | (5.9 | ) | (7.3 | ) | (7.7 | ) | |||||||||||
Long-term net flows | (3.9 | ) | (5.0 | ) | — | (0.2 | ) | 1.0 | 0.3 | ||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (1.5 | ) | (2.1 | ) | — | — | (0.1 | ) | 0.7 | ||||||||||||||
Total net flows | (6.3 | ) | (8.0 | ) | — | (0.2 | ) | 0.9 | 1.0 | ||||||||||||||
Market gains and losses/reinvestment | (35.6 | ) | (23.1 | ) | (1.3 | ) | (3.7 | ) | (3.7 | ) | (3.8 | ) | |||||||||||
Foreign currency translation | (5.9 | ) | — | (1.8 | ) | (3.7 | ) | (0.1 | ) | (0.3 | ) | ||||||||||||
September 30, 2015 | $755.8 | $499.7 | $21.8 | $103.1 | $74.1 | $57.1 | |||||||||||||||||
(in billions) | September 30, 2015 | September 30, 2014 | % Change | |||||||
Beginning Assets | $792.4 | $778.7 | 1.8 | % | ||||||
Long-term inflows | 146.1 | 137.1 | 6.6 | % | ||||||
Long-term outflows | (133.8 | ) | (131.5 | ) | 1.7 | % | ||||
Long-term net flows | 12.3 | 5.6 | 119.6 | % | ||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (7.5 | ) | (49.3 | )% | ||||
Net flows in institutional money market funds | (10.1 | ) | (5.8 | ) | 74.1 | % | ||||
Total net flows | (1.6 | ) | (7.7 | ) | (79.2 | )% | ||||
Market gains and losses/reinvestment | (26.0 | ) | 24.2 | N/A | ||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | — | N/A | ||||||
Foreign currency translation | (8.3 | ) | (5.6 | ) | 48.2 | % | ||||
Ending Assets | $755.8 | $789.6 | (4.3 | )% | ||||||
Average long-term AUM | $692.2 | $672.6 | 2.9 | % | ||||||
Average AUM | $798.4 | $790.5 | 1.0 | % | ||||||
Gross revenue yield on AUM(a) | 65.3 | bps | 65.7 | bps | ||||||
Gross revenue yield on AUM before performance fees(a) | 64.2 | bps | 64.9 | bps | ||||||
Net revenue yield on AUM(b) | 46.0 | bps | 45.6 | bps | ||||||
Net revenue yield on AUM before performance fees(b) | 44.7 | bps | 44.7 | bps |
(in billions) | Total AUM | Active(e) | Passive(e) | ||||||||
December 31, 2014 | $792.4 | $651.0 | $141.4 | ||||||||
Long-term inflows | 146.1 | 120.4 | 25.7 | ||||||||
Long-term outflows | (133.8 | ) | (109.8 | ) | (24.0 | ) | |||||
Long-term net flows | 12.3 | 10.6 | 1.7 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | — | (3.8 | ) | ||||||
Net flows in institutional money market funds | (10.1 | ) | (10.2 | ) | 0.1 | ||||||
Total net flows | (1.6 | ) | 0.4 | (2.0 | ) | ||||||
Market gains and losses/reinvestment | (26.0 | ) | (19.0 | ) | (7.0 | ) | |||||
Acquisitions/dispositions, net(f) | (0.7 | ) | — | (0.7 | ) | ||||||
Foreign currency translation | (8.3 | ) | (8.3 | ) | — | ||||||
September 30, 2015 | $755.8 | $624.1 | $131.7 | ||||||||
Average AUM | $798.4 | $656.7 | $141.7 | ||||||||
Gross revenue yield on AUM(a) | 65.3bps | 76.4bps | 14.5bps | ||||||||
Net revenue yield on AUM(b) | 46.0bps | 52.9bps | 14.5bps | ||||||||
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2014 | $792.4 | $532.5 | $259.9 | ||||||||
Long-term inflows | 146.1 | 106.5 | 39.6 | ||||||||
Long-term outflows | (133.8 | ) | (103.7 | ) | (30.1 | ) | |||||
Long-term net flows | 12.3 | 2.8 | 9.5 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | ||||||
Net flows in institutional money market funds | (10.1 | ) | — | (10.1 | ) | ||||||
Total net flows | (1.6 | ) | (1.0 | ) | (0.6 | ) | |||||
Market gains and losses/reinvestment | (26.0 | ) | (25.0 | ) | (1.0 | ) | |||||
Acquisitions/dispositions, net(f) | (0.7 | ) | (0.7 | ) | — | ||||||
Foreign currency translation | (8.3 | ) | (6.4 | ) | (1.9 | ) | |||||
September 30, 2015 | $755.8 | $499.4 | $256.4 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market (d) | Alternatives(c) | |||||||||||||||||
December 31, 2014 | $792.4 | $384.4 | $181.6 | $50.6 | $76.5 | $99.3 | |||||||||||||||||
Long-term inflows | 146.1 | 67.9 | 34.5 | 13.3 | 3.0 | 27.4 | |||||||||||||||||
Long-term outflows | (133.8 | ) | (73.5 | ) | (27.2 | ) | (10.6 | ) | (2.9 | ) | (19.6 | ) | |||||||||||
Long-term net flows | 12.3 | (5.6 | ) | 7.3 | 2.7 | 0.1 | 7.8 | ||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (10.1 | ) | — | — | — | (10.1 | ) | — | |||||||||||||||
Total net flows | (1.6 | ) | (9.4 | ) | 7.3 | 2.7 | (10.0 | ) | 7.8 | ||||||||||||||
Market gains and losses/reinvestment | (26.0 | ) | (17.8 | ) | (2.5 | ) | (1.5 | ) | 0.3 | (4.5 | ) | ||||||||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||||||||
Foreign currency translation | (8.3 | ) | (4.8 | ) | (0.9 | ) | (1.7 | ) | — | (0.9 | ) | ||||||||||||
September 30, 2015 | $755.8 | $352.4 | $185.5 | $50.1 | $66.8 | $101.0 | |||||||||||||||||
Average AUM | $798.4 | $390.5 | $184.9 | $51.8 | $71.4 | $99.8 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2014 | $792.4 | $532.1 | $25.8 | $105.1 | $71.1 | $58.3 | |||||||||||||||||
Long-term inflows | 146.1 | 74.1 | 2.9 | 15.1 | 30.2 | 23.8 | |||||||||||||||||
Long-term outflows | (133.8 | ) | (72.1 | ) | (3.0 | ) | (14.5 | ) | (22.6 | ) | (21.6 | ) | |||||||||||
Long-term net flows | 12.3 | 2.0 | (0.1 | ) | 0.6 | 7.6 | 2.2 | ||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | (10.1 | ) | (11.1 | ) | (0.1 | ) | 0.8 | (0.3 | ) | 0.6 | |||||||||||||
Total net flows | (1.6 | ) | (12.9 | ) | (0.2 | ) | 1.4 | 7.3 | 2.8 | ||||||||||||||
Market gains and losses/reinvestment | (26.0 | ) | (18.8 | ) | (0.1 | ) | (0.8 | ) | (2.9 | ) | (3.4 | ) | |||||||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||||||||
Foreign currency translation | (8.3 | ) | — | (3.7 | ) | (2.6 | ) | (1.4 | ) | (0.6 | ) | ||||||||||||
September 30, 2015 | $755.8 | $499.7 | $21.8 | $103.1 | $74.1 | $57.1 | |||||||||||||||||
(in billions) | Q3-15 | Q2-15 | % Change | Q3-14 | ||||||||||
Beginning Assets | $141.6 | $143.0 | (1.0 | )% | $145.8 | |||||||||
Long-term inflows | 6.8 | 9.0 | (24.4 | )% | 8.2 | |||||||||
Long-term outflows | (9.1 | ) | (8.5 | ) | 7.1 | % | (8.2 | ) | ||||||
Long-term net flows | (2.3 | ) | 0.5 | N/A | — | |||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.3 | ) | 200.0 | % | (3.2 | ) | ||||||
Net flows in institutional money market funds | 0.1 | — | N/A | — | ||||||||||
Total net flows | (3.1 | ) | 0.2 | N/A | (3.2 | ) | ||||||||
Market gains and losses/reinvestment | (6.8 | ) | (1.6 | ) | 325.0 | % | (0.3 | ) | ||||||
Foreign currency translation | — | — | N/A | (0.2 | ) | |||||||||
Ending Assets | $131.7 | $141.6 | (7.0 | )% | $142.1 | |||||||||
Average long-term AUM | $99.6 | $104.9 | (5.1 | )% | $100.9 | |||||||||
Average AUM | $138.4 | $144.2 | (4.0 | )% | $146.7 | |||||||||
Gross revenue yield on AUM(a) | 14.9 | bps | 15.3 | bps | 13.0 | bps | ||||||||
Gross revenue yield on AUM before performance fees(a) | 14.9 | bps | 15.3 | bps | 13.0 | bps | ||||||||
Net revenue yield on AUM(b) | 14.9 | bps | 15.3 | bps | 13.0 | bps | ||||||||
Net revenue yield on AUM before performance fees(b) | 14.9 | bps | 15.3 | bps | 13.0 | bps |
By channel: (in billions) | Total | Retail | Institutional | ||||||||
June 30, 2015 | $141.6 | $119.7 | $21.9 | ||||||||
Long-term inflows | 6.8 | 6.0 | 0.8 | ||||||||
Long-term outflows | (9.1 | ) | (7.8 | ) | (1.3 | ) | |||||
Long-term net flows | (2.3 | ) | (1.8 | ) | (0.5 | ) | |||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | ||||||
Net flows in institutional money market funds | 0.1 | — | 0.1 | ||||||||
Total net flows | (3.1 | ) | (2.7 | ) | (0.4 | ) | |||||
Market gains and losses/reinvestment | (6.8 | ) | (6.4 | ) | (0.4 | ) | |||||
Foreign currency translation | — | — | — | ||||||||
September 30, 2015 | $131.7 | $110.6 | $21.1 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(c) | |||||||||||||||||
June 30, 2015 | $141.6 | $89.4 | $41.2 | $— | $— | $11.0 | |||||||||||||||||
Long-term inflows | 6.8 | 5.3 | 0.9 | — | — | 0.6 | |||||||||||||||||
Long-term outflows | (9.1 | ) | (6.2 | ) | (1.8 | ) | — | — | (1.1 | ) | |||||||||||||
Long-term net flows | (2.3 | ) | (0.9 | ) | (0.9 | ) | — | — | (0.5 | ) | |||||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | 0.1 | — | |||||||||||||||||
Total net flows | (3.1 | ) | (1.8 | ) | (0.9 | ) | — | 0.1 | (0.5 | ) | |||||||||||||
Market gains and losses/reinvestment | (6.8 | ) | (5.3 | ) | (0.6 | ) | — | — | (0.9 | ) | |||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2015 | $131.7 | $82.3 | $39.7 | $— | $0.1 | $9.6 | |||||||||||||||||
Average AUM | $138.4 | $87.8 | $40.6 | $— | $— | $10.0 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
June 30, 2015 | $141.6 | $137.4 | $0.4 | $— | $1.8 | $2.0 | |||||||||||||||||
Long-term inflows | 6.8 | 5.9 | — | — | 0.2 | 0.7 | |||||||||||||||||
Long-term outflows | (9.1 | ) | (8.3 | ) | — | — | (0.1 | ) | (0.7 | ) | |||||||||||||
Long-term net flows | (2.3 | ) | (2.4 | ) | — | — | 0.1 | — | |||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.9 | ) | (0.9 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||
Total net flows | (3.1 | ) | (3.3 | ) | — | — | 0.1 | 0.1 | |||||||||||||||
Market gains and losses/reinvestment | (6.8 | ) | (6.6 | ) | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2015 | $131.7 | $127.5 | $0.4 | $— | $1.8 | $2.0 | |||||||||||||||||
(in billions) | September 30, 2015 | September 30, 2014 | % Change | |||||||
Beginning Assets | $141.4 | $139.7 | 1.2 | % | ||||||
Long-term inflows | 25.7 | 23.2 | 10.8 | % | ||||||
Long-term outflows | (24.0 | ) | (18.8 | ) | 27.7 | % | ||||
Long-term net flows | 1.7 | 4.4 | (61.4 | )% | ||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (7.5 | ) | (49.3 | )% | ||||
Net flows in institutional money market funds | 0.1 | — | N/A | |||||||
Total net flows | (2.0 | ) | (3.1 | ) | (35.5 | )% | ||||
Market gains and losses/reinvestment | (7.0 | ) | 5.7 | N/A | ||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | — | N/A | ||||||
Foreign currency translation | — | (0.2 | ) | N/A | ||||||
Ending Assets | $131.7 | $142.1 | (7.3 | )% | ||||||
Average long-term AUM | $102.6 | $98.6 | 4.1 | % | ||||||
Average AUM | $141.7 | $143.1 | (1.0 | )% | ||||||
Gross revenue yield on AUM(a) | 14.5 | bps | 13.0 | bps | ||||||
Gross revenue yield on AUM before performance fees(a) | 14.5 | bps | 13.0 | bps | ||||||
Net revenue yield on AUM(b) | 14.5 | bps | 13.0 | bps | ||||||
Net revenue yield on AUM before performance fees(b) | 14.5 | bps | 13.0 | bps |
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2014 | $141.4 | $119.7 | $21.7 | ||||||||
Long-term inflows | 25.7 | 22.5 | 3.2 | ||||||||
Long-term outflows | (24.0 | ) | (21.2 | ) | (2.8 | ) | |||||
Long-term net flows | 1.7 | 1.3 | 0.4 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | ||||||
Net flows in institutional money market funds | 0.1 | — | 0.1 | ||||||||
Total net flows | (2.0 | ) | (2.5 | ) | 0.5 | ||||||
Market gains and losses/reinvestment | (7.0 | ) | (5.9 | ) | (1.1 | ) | |||||
Acquisitions/dispositions, net(f) | (0.7 | ) | (0.7 | ) | — | ||||||
Foreign currency translation | — | — | — | ||||||||
September 30, 2015 | $131.7 | $110.6 | $21.1 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(c) | |||||||||||||||||
December 31, 2014 | $141.4 | $88.2 | $41.1 | $— | $— | $12.1 | |||||||||||||||||
Long-term inflows | 25.7 | 18.1 | 4.5 | — | — | 3.1 | |||||||||||||||||
Long-term outflows | (24.0 | ) | (15.9 | ) | (4.0 | ) | — | — | (4.1 | ) | |||||||||||||
Long-term net flows | 1.7 | 2.2 | 0.5 | — | — | (1.0 | ) | ||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | 0.1 | — | |||||||||||||||||
Total net flows | (2.0 | ) | (1.6 | ) | 0.5 | — | 0.1 | (1.0 | ) | ||||||||||||||
Market gains and losses/reinvestment | (7.0 | ) | (4.3 | ) | (1.9 | ) | — | — | (0.8 | ) | |||||||||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2015 | $131.7 | $82.3 | $39.7 | $— | $0.1 | $9.6 | |||||||||||||||||
Average AUM | $141.7 | $89.2 | $41.6 | $— | $— | $10.9 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2014 | $141.4 | $137.6 | $0.2 | $— | $1.8 | $1.8 | |||||||||||||||||
Long-term inflows | 25.7 | 23.6 | 0.1 | — | 0.5 | 1.5 | |||||||||||||||||
Long-term outflows | (24.0 | ) | (22.1 | ) | — | — | (0.4 | ) | (1.5 | ) | |||||||||||||
Long-term net flows | 1.7 | 1.5 | 0.1 | — | 0.1 | — | |||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||
Total net flows | (2.0 | ) | (2.3 | ) | 0.1 | — | 0.1 | 0.1 | |||||||||||||||
Market gains and losses/reinvestment | (7.0 | ) | (7.1 | ) | 0.1 | — | (0.1 | ) | 0.1 | ||||||||||||||
Acquisitions/dispositions, net(f) | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2015 | $131.7 | $127.5 | $0.4 | $— | $1.8 | $2.0 | |||||||||||||||||
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 | 4 | % | 20 | % | 37 | % | 4 | % | 19 | % | 30 | % | |
U.S. Growth | 18 | % | 95 | % | 26 | % | 14 | % | 48 | % | 26 | % | |
U.S. Value | 24 | % | 88 | % | 77 | % | 24 | % | 51 | % | 98 | % | |
Sector | 20 | % | 59 | % | 76 | % | 4 | % | 8 | % | 10 | % | |
U.K. | 99 | % | 100 | % | 100 | % | 92 | % | 100 | % | 100 | % | |
Canadian | 19 | % | 24 | % | 55 | % | 19 | % | 34 | % | 42 | % | |
Asian | 57 | % | 88 | % | 88 | % | 30 | % | 67 | % | 68 | % | |
European | 98 | % | 98 | % | 100 | % | 51 | % | 93 | % | 100 | % | |
Global | 50 | % | 70 | % | 87 | % | 62 | % | 79 | % | 86 | % | |
Global Ex U.S. and Emerging Markets | 88 | % | 88 | % | 98 | % | 8 | % | 7 | % | 89 | % | |
Fixed Income | |||||||||||||
Money Market | 69 | % | 69 | % | 69 | % | 94 | % | 96 | % | 96 | % | |
U.S. Fixed Income | 87 | % | 92 | % | 92 | % | 92 | % | 82 | % | 91 | % | |
Global Fixed Income | 53 | % | 92 | % | 96 | % | 17 | % | 94 | % | 65 | % | |
Stable Value | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Other | |||||||||||||
Alternatives | 85 | % | 74 | % | 72 | % | 59 | % | 65 | % | 62 | % | |
Balanced | 71 | % | 42 | % | 45 | % | 52 | % | 91 | % | 99 | % |
Note: | AUM measured in the one-, three-, and five-year peer group rankings represents 60%, 58%, and 57% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents 72%, 70%, and 68% of total Invesco AUM, respectively, as of 9/30/2015. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IMA, 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. Past performance is not indicative of future results and may not reflect an investor's experience. 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. |
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