Bermuda | 001-13908 | 98-0557567 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1555 Peachtree Street, NE, 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 |
Invesco Ltd. | |
By: | /s/ Kevin M. Carome |
Kevin M. Carome | |
Senior Managing Director and General Counsel |
Press Release For immediate release Brandon Burke, Investor Relations Graham Galt, Media Relations 404-439-3468 404-439-3070 |
Q3-18 | Q2-18 | Q3-18 vs. Q2-18 | Q3-17 | Q3-18 vs. Q3-17 | ||||||||||||||
U.S. GAAP Financial Measures | ||||||||||||||||||
Operating revenues | $1,341.8 | m | $1,360.6 | m | (1.4 | )% | $1,337.7 | m | 0.3 | % | ||||||||
Operating income | $322.1 | m | $331.3 | m | (2.8 | )% | $360.3 | m | (10.6 | )% | ||||||||
Operating margin | 24.0 | % | 24.3 | % | 26.9 | % | ||||||||||||
Net income attributable to Invesco Ltd. | $269.6 | m | $245.1 | m | 10.0 | % | $267.5 | m | 0.8 | % | ||||||||
Diluted EPS | $0.65 | $0.59 | 10.2 | % | $0.65 | — | % | |||||||||||
Adjusted Financial Measures(1) | ||||||||||||||||||
Net revenues | $966.9 | m | $974.0 | m | (0.7 | )% | $976.6 | m | (1.0 | )% | ||||||||
Adjusted operating income | $357.8 | m | $376.6 | m | (5.0 | )% | $402.4 | m | (11.1 | )% | ||||||||
Adjusted operating margin | 37.0 | % | 38.7 | % | 41.2 | % | ||||||||||||
Adjusted net income attributable to Invesco Ltd. | $274.4 | m | $273.1 | m | 0.5 | % | $291.8 | m | (6.0 | )% | ||||||||
Adjusted diluted EPS | $0.66 | $0.66 | — | % | $0.71 | (7.0 | )% | |||||||||||
Assets Under Management | ||||||||||||||||||
Ending AUM | $980.9 | bn | $963.3 | bn | 1.8 | % | $917.5 | bn | 6.9 | % | ||||||||
Average AUM | $985.1 | bn | $973.9 | bn | 1.2 | % | $890.8 | bn | 10.6 | % |
Summary of net flows (in billions) | Q3-18 | Q2-18 | Q3-17 | |||||||||
Active | ($10.9 | ) | ($8.4 | ) | $2.8 | |||||||
Passive | (0.3 | ) | 0.4 | 1.3 | ||||||||
Long-term net flows | (11.2 | ) | (8.0 | ) | 4.1 | |||||||
Non-management fee earning AUM | 3.2 | 0.9 | 0.9 | |||||||||
Institutional money market | 3.1 | 0.9 | 5.4 | |||||||||
Total net flows | ($4.9 | ) | ($6.2 | ) | $10.4 | |||||||
Annualized long-term organic growth rate (1) | (5.6 | %) | (4.1 | %) | 2.3 | % | ||||||
(1) | Annualized long-term organic growth rate is calculated using long-term net flows (annualized) divided by opening long-term AUM for the period. Long-term AUM excludes institutional money market and non-management fee earning AUM. |
Q3-18 | Q2-18 | % Change | Q3-17 | % Change | |||||||||||||
Operating revenues: | |||||||||||||||||
Investment management fees | $1,038.9 | $1,050.5 | (1.1 | )% | $1,062.3 | (2.2 | )% | ||||||||||
Service and distribution fees | 248.0 | 242.9 | 2.1 | % | 217.6 | 14.0 | % | ||||||||||
Performance fees | 7.9 | 11.6 | (31.9 | )% | 42.3 | (81.3 | )% | ||||||||||
Other | 47.0 | 55.6 | (15.5 | )% | 15.5 | 203.2 | % | ||||||||||
Total operating revenues | 1,341.8 | 1,360.6 | (1.4 | )% | 1,337.7 | 0.3 | % | ||||||||||
Operating expenses: | |||||||||||||||||
Third-party distribution, service and advisory | 408.0 | 408.9 | (0.2 | )% | 380.4 | 7.3 | % | ||||||||||
Employee compensation | 385.5 | 381.1 | 1.2 | % | 388.1 | (0.7 | )% | ||||||||||
Marketing | 34.0 | 32.8 | 3.7 | % | 29.5 | 15.3 | % | ||||||||||
Property, office and technology | 104.8 | 101.7 | 3.0 | % | 92.8 | 12.9 | % | ||||||||||
General and administrative | 87.4 | 104.8 | (16.6 | )% | 86.6 | 0.9 | % | ||||||||||
Total operating expenses | 1,019.7 | 1,029.3 | (0.9 | )% | 977.4 | 4.3 | % | ||||||||||
Operating income | 322.1 | 331.3 | (2.8 | )% | 360.3 | (10.6 | )% | ||||||||||
Other income/(expense): | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | 11.8 | 7.3 | 61.6 | % | 12.9 | (8.5 | )% | ||||||||||
Interest and dividend income | 4.0 | 2.8 | 42.9 | % | 2.5 | 60.0 | % | ||||||||||
Interest expense | (29.6 | ) | (29.5 | ) | 0.3 | % | (23.6 | ) | 25.4 | % | |||||||
Other gains and losses, net | 5.9 | 1.4 | 321.4 | % | 13.9 | (57.6 | )% | ||||||||||
Other income/(expense) of CIP, net | 28.1 | 0.9 | N/A | 31.7 | (11.4 | )% | |||||||||||
Income before income taxes | 342.3 | 314.2 | 8.9 | % | 397.7 | (13.9 | )% | ||||||||||
Income tax provision | (61.1 | ) | (72.3 | ) | (15.5 | )% | (123.1 | ) | (50.4 | )% | |||||||
Net income | 281.2 | 241.9 | 16.2 | % | 274.6 | 2.4 | % | ||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (11.6 | ) | 3.2 | N/A | (7.1 | ) | 63.4 | % | |||||||||
Net income attributable to Invesco Ltd. | $269.6 | $245.1 | 10.0 | % | $267.5 | 0.8 | % | ||||||||||
Earnings per share: | |||||||||||||||||
---basic | $0.65 | $0.59 | 10.2 | % | $0.65 | — | % | ||||||||||
---diluted | $0.65 | $0.59 | 10.2 | % | $0.65 | — | % | ||||||||||
Average shares outstanding: | |||||||||||||||||
---basic | 414.3 | 413.9 | 0.1 | % | 410.0 | 1.0 | % | ||||||||||
---diluted | 414.4 | 414.1 | 0.1 | % | 410.5 | 1.0 | % |
Nine months ended September 30, | ||||||||||
2018 | 2017 | % Change | ||||||||
Operating revenues: | ||||||||||
Investment management fees | $3,133.1 | $3,027.9 | 3.5 | % | ||||||
Service and distribution fees | 737.0 | 635.3 | 16.0 | % | ||||||
Performance fees | 28.6 | 70.3 | (59.3 | )% | ||||||
Other | 159.5 | 51.2 | 211.5 | % | ||||||
Total operating revenues | 4,058.2 | 3,784.7 | 7.2 | % | ||||||
Operating expenses: | ||||||||||
Third-party distribution, service and advisory | 1,236.0 | 1,095.6 | 12.8 | % | ||||||
Employee compensation | 1,157.0 | 1,151.8 | 0.5 | % | ||||||
Marketing | 94.9 | 83.0 | 14.3 | % | ||||||
Property, office and technology | 308.7 | 267.3 | 15.5 | % | ||||||
General and administrative | 287.1 | 250.5 | 14.6 | % | ||||||
Total operating expenses | 3,083.7 | 2,848.2 | 8.3 | % | ||||||
Operating income | 974.5 | 936.5 | 4.1 | % | ||||||
Other income/(expense): | ||||||||||
Equity in earnings of unconsolidated affiliates | 28.8 | 41.1 | (29.9 | )% | ||||||
Interest and dividend income | 11.0 | 7.0 | 57.1 | % | ||||||
Interest expense | (82.3 | ) | (71.2 | ) | 15.6 | % | ||||
Other gains and losses, net | 1.9 | 23.9 | (92.1 | )% | ||||||
Other income/(expense) of CIP, net | 56.2 | 92.5 | (39.2 | )% | ||||||
Income before income taxes | 990.1 | 1,029.8 | (3.9 | )% | ||||||
Income tax provision | (201.8 | ) | (291.4 | ) | (30.7 | )% | ||||
Net income | 788.3 | 738.4 | 6.8 | % | ||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (19.7 | ) | (19.3 | ) | 2.1 | % | ||||
Net income attributable to Invesco Ltd. | $768.6 | $719.1 | 6.9 | % | ||||||
Earnings per share: | ||||||||||
---basic | $1.86 | $1.76 | 5.7 | % | ||||||
---diluted | $1.86 | $1.76 | 5.7 | % | ||||||
Average shares outstanding: | ||||||||||
---basic | 413.2 | 409.2 | 1.0 | % | ||||||
---diluted | 413.4 | 409.6 | 0.9 | % |
in millions | Q3-18 | Q2-18 | Q3-17 | |||||||||
Operating revenues, U.S. GAAP basis | $1,341.8 | $1,360.6 | $1,337.7 | |||||||||
Invesco Great Wall (1) | 28.4 | 15.2 | 13.1 | |||||||||
Third party distribution, service and advisory expenses | (408.0 | ) | (408.9 | ) | (380.4 | ) | ||||||
CIP | 4.7 | 7.1 | 6.2 | |||||||||
Net revenues | $966.9 | $974.0 | $976.6 | |||||||||
in millions | Q3-18 | Q2-18 | Q3-17 | |||||||||
Operating income, U.S. GAAP basis | $322.1 | $331.3 | $360.3 | |||||||||
Invesco Great Wall (1) | 11.7 | 5.8 | 5.8 | |||||||||
CIP | 9.8 | 13.3 | 10.4 | |||||||||
Business combinations | 18.6 | 17.5 | 8.6 | |||||||||
Compensation expense related to market valuation changes in deferred compensation plans | 3.9 | 2.7 | 5.0 | |||||||||
Business optimization expenses | 14.5 | 6.0 | 12.3 | |||||||||
Prior years' impact of multi-period VAT tax recovery (2) | (22.8 | ) | — | — | ||||||||
Adjusted operating income | $357.8 | $376.6 | $402.4 | |||||||||
Operating margin (3) | 24.0 | % | 24.3 | % | 26.9 | % | ||||||
Adjusted operating margin (4) | 37.0 | % | 38.7 | % | 41.2 | % |
in millions | Q3-18 | Q2-18 | Q3-17 | |||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis | $269.6 | $245.1 | $267.5 | |||||||||
CIP | (11.3 | ) | 2.2 | 1.3 | ||||||||
Business combinations: | ||||||||||||
Changes in the fair value of contingent consideration | (0.4 | ) | 0.2 | 1.6 | ||||||||
Foreign exchange gain related to currency held for business acquisition | — | — | (12.1 | ) | ||||||||
Other business combination-related adjustments | 18.6 | 17.5 | 8.6 | |||||||||
Deferred compensation plan market valuation changes and dividend income less compensation expense | 0.9 | 1.2 | (1.3 | ) | ||||||||
Business optimization expenses | 14.5 | 6.0 | 12.3 | |||||||||
Foreign exchange hedge | (2.3 | ) | (2.2 | ) | 0.5 | |||||||
Prior years' impact of multi-period VAT tax recovery (2) | (22.8 | ) | — | — | ||||||||
Taxation: | ||||||||||||
Taxation on business combinations | 5.8 | 4.2 | 4.6 | |||||||||
Taxation on deferred compensation plan market valuation changes and dividend income less compensation expense | (0.2 | ) | (0.3 | ) | 0.6 | |||||||
Taxation on business optimization charges | (2.9 | ) | (1.3 | ) | (3.8 | ) | ||||||
Taxation on foreign exchange hedge | 0.6 | 0.5 | (0.2 | ) | ||||||||
Taxation on prior period impact of multi-year VAT tax recovery (2) | 4.3 | — | — | |||||||||
Retroactive state tax adjustment | — | — | 12.2 | |||||||||
Adjusted net income attributable to Invesco Ltd. (5) | $274.4 | $273.1 | $291.8 | |||||||||
Average shares outstanding - diluted | 414.4 | 414.1 | 410.5 | |||||||||
Diluted EPS | $0.65 | $0.59 | $0.65 | |||||||||
Adjusted diluted EPS (6) | $0.66 | $0.66 | $0.71 |
in millions | Q3-18 | Q2-18 | Q3-17 | |||||||||
Operating expenses, U.S. GAAP basis | $1,019.7 | $1,029.3 | $977.4 | |||||||||
Invesco Great Wall (1) | 16.7 | 9.4 | 7.3 | |||||||||
Third party distribution, service and advisory expenses | (408.0 | ) | (408.9 | ) | (380.4 | ) | ||||||
CIP | (5.1 | ) | (6.2 | ) | (4.2 | ) | ||||||
Business combinations | (18.6 | ) | (17.5 | ) | (8.6 | ) | ||||||
Compensation expense related to market valuation changes in deferred compensation plans | (3.9 | ) | (2.7 | ) | (5.0 | ) | ||||||
Business optimization | (14.5 | ) | (6.0 | ) | (12.3 | ) | ||||||
Prior years' impact of multi-period VAT tax recovery (2) | 22.8 | — | — | |||||||||
Adjusted operating expenses | $609.1 | $597.4 | $574.2 | |||||||||
Employee compensation, U.S. GAAP basis | $385.5 | $381.1 | $388.1 | |||||||||
Invesco Great Wall (1) | 12.1 | 6.7 | 5.1 | |||||||||
Business combinations | (1.3 | ) | (1.9 | ) | (1.7 | ) | ||||||
Market appreciation/depreciation of deferred compensation awards | (3.9 | ) | (2.7 | ) | (5.0 | ) | ||||||
Business optimization | (3.5 | ) | — | (7.6 | ) | |||||||
Adjusted employee compensation | $388.9 | $383.2 | $378.9 | |||||||||
Marketing, U.S. GAAP basis | $34.0 | $32.8 | $29.5 | |||||||||
Invesco Great Wall (1) | 1.3 | 0.7 | 0.6 | |||||||||
Business combinations | (0.6 | ) | (0.7 | ) | — | |||||||
Adjusted marketing | $34.7 | $32.8 | $30.1 | |||||||||
Property, office and technology, U.S. GAAP basis | $104.8 | $101.7 | $92.8 | |||||||||
Invesco Great Wall (1) | 2.1 | 1.1 | 1.1 | |||||||||
Business combinations | (0.5 | ) | (2.5 | ) | — | |||||||
Business optimization | (0.6 | ) | (0.6 | ) | (0.2 | ) | ||||||
Adjusted property, office and technology | $105.8 | $99.7 | $93.7 | |||||||||
General and administrative, U.S. GAAP basis | $87.4 | $104.8 | $86.6 | |||||||||
Invesco Great Wall (1) | 1.2 | 0.9 | 0.5 | |||||||||
Business combinations | (16.2 | ) | (12.4 | ) | (6.9 | ) | ||||||
CIP | (5.1 | ) | (6.2 | ) | (4.2 | ) | ||||||
Business optimization | (10.4 | ) | (5.4 | ) | (4.5 | ) | ||||||
Prior years' impact of multi-period VAT tax recovery (2) | 22.8 | — | — | |||||||||
Adjusted general and administrative | $79.7 | $81.7 | $71.5 | |||||||||
(1) | Prior to the third quarter 2018, management reflected its interests in Invesco Great Wall Fund Management Company ("Invesco Great Wall") on a proportional consolidation basis, which was consistent with the presentation of our share of the AUM from these investments. Given the company's influence on Invesco Great Wall, a change in regulation allowing increased foreign ownership, and reaching agreement in principle in the third quarter to obtain a majority stake of the joint venture, the company began reporting 100% of the flows and AUM for Invesco Great Wall beginning in the third quarter. The company's non-GAAP operating results now reflect the economics of these holdings on a basis consistent with the underlying AUM and flows. Adjusted net income is reduced by the amount of earnings attributable to non-controlling interests. |
(3) | Operating margin is equal to operating income divided by operating revenues. |
(4) | Adjusted operating margin is equal to adjusted operating income divided by net revenues. |
(5) | The effective tax rate on adjusted net income attributable to Invesco Ltd. is 16.9% (second quarter: 20.6%; third quarter 2017: 27.6%). Third quarter 2018 includes a net 3.8% rate decrease primarily resulting from the acceleration of software tax amortization. Third and second quarters of 2018 include a 7.0% and a 6.1% tax rate reduction, respectively, as a result of lower Federal tax rates effective January 1, 2018. |
(6) | Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding. There is no difference between the calculated earnings per share amounts presented above and the calculated earnings per share amounts under the two class method. |
(in billions) | Q3-18 | Q2-18 | % Change | Q3-17 | ||||||||||
Beginning Assets | $963.3 | $934.2 | 3.1 | % | $858.3 | |||||||||
Long-term inflows | 43.6 | 54.4 | (19.9 | )% | 45.0 | |||||||||
Long-term outflows | (54.8 | ) | (62.4 | ) | (12.2 | )% | (40.9 | ) | ||||||
Long-term net flows | (11.2 | ) | (8.0 | ) | 40.0 | % | 4.1 | |||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 0.9 | 255.6 | % | 0.9 | |||||||||
Net flows in institutional money market funds | 3.1 | 0.9 | 244.4 | % | 5.4 | |||||||||
Total net flows | (4.9 | ) | (6.2 | ) | (21.0 | )% | 10.4 | |||||||
Reinvested distributions(a) | 1.7 | 0.7 | 142.9 | % | 1.1 | |||||||||
Market gains and losses(a) | 14.3 | 10.3 | 38.8 | % | 15.0 | |||||||||
Acquisitions (i) | 9.5 | 38.1 | (75.1 | )% | 26.0 | |||||||||
Foreign currency translation | (3.0 | ) | (13.8 | ) | (78.3 | )% | 6.7 | |||||||
Ending Assets | $980.9 | $963.3 | 1.8 | % | $917.5 | |||||||||
Average long-term AUM | $803.6 | $805.8 | (0.3 | )% | $732.7 | |||||||||
Average AUM | $985.1 | $973.9 | 1.2 | % | $890.8 | |||||||||
Gross revenue yield on AUM(c) | 55.8 | bps | 56.4 | bps | 60.7 | bps | ||||||||
Gross revenue yield on AUM before performance fees(c) | 55.4 | bps | 55.9 | bps | 58.7 | bps | ||||||||
Net revenue yield on AUM(d) | 39.3 | bps | 40.0 | bps | 43.9 | bps | ||||||||
Net revenue yield on AUM before performance fees(d) | 38.9 | bps | 39.5 | bps | 41.9 | bps |
(in billions) | Total AUM | Active(g) | Passive(g) | ||||||||
June 30, 2018 | $963.3 | $722.1 | $241.2 | ||||||||
Long-term inflows | 43.6 | 28.3 | 15.3 | ||||||||
Long-term outflows | (54.8 | ) | (39.2 | ) | (15.6 | ) | |||||
Long-term net flows | (11.2 | ) | (10.9 | ) | (0.3 | ) | |||||
Net flows in non-management fee earning AUM(b) | 3.2 | — | 3.2 | ||||||||
Net flows in institutional money market funds | 3.1 | 3.1 | — | ||||||||
Total net flows | (4.9 | ) | (7.8 | ) | 2.9 | ||||||
Reinvested distributions(a) | 1.7 | 1.7 | — | ||||||||
Market gains and losses(a) | 14.3 | 4.7 | 9.6 | ||||||||
Acquisitions(i) | 9.5 | 9.3 | 0.2 | ||||||||
Foreign currency translation | (3.0 | ) | (3.0 | ) | — | ||||||
September 30, 2018 | $980.9 | $727.0 | $253.9 | ||||||||
Average AUM | $985.1 | $736.3 | $248.8 | ||||||||
Gross revenue yield on AUM(c) | 55.8bps | 70.2bps | 14.3bps | ||||||||
Net revenue yield on AUM(d) | 39.3bps | 47.7bps | 14.3bps | ||||||||
By channel: (in billions) | Total | Retail | Institutional | ||||||||
June 30, 2018 | $963.3 | $635.5 | $327.8 | ||||||||
Long-term inflows | 43.6 | 34.4 | 9.2 | ||||||||
Long-term outflows | (54.8 | ) | (42.3 | ) | (12.5 | ) | |||||
Long-term net flows | (11.2 | ) | (7.9 | ) | (3.3 | ) | |||||
Net flows in non-management fee earning AUM(b) | 3.2 | 2.2 | 1.0 | ||||||||
Net flows in institutional money market funds | 3.1 | 4.5 | (1.4 | ) | |||||||
Total net flows | (4.9 | ) | (1.2 | ) | (3.7 | ) | |||||
Reinvested distributions(a) | 1.7 | 1.7 | — | ||||||||
Market gains and losses(a) | 14.3 | 13.0 | 1.3 | ||||||||
Acquisitions(i) | 9.5 | 4.5 | 5.0 | ||||||||
Foreign currency translation | (3.0 | ) | (1.4 | ) | (1.6 | ) | |||||
September 30, 2018 | $980.9 | $652.1 | $328.8 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market (f) | Alternatives(e) | |||||||||||||||||
June 30, 2018 | $963.3 | $446.9 | $232.7 | $57.4 | $80.4 | $145.9 | |||||||||||||||||
Long-term inflows | 43.6 | 21.9 | 10.6 | 1.6 | 1.9 | 7.6 | |||||||||||||||||
Long-term outflows | (54.8 | ) | (29.4 | ) | (10.9 | ) | (2.7 | ) | (1.3 | ) | (10.5 | ) | |||||||||||
Long-term net flows | (11.2 | ) | (7.5 | ) | (0.3 | ) | (1.1 | ) | 0.6 | (2.9 | ) | ||||||||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 2.3 | 0.9 | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | 3.1 | — | — | — | 3.1 | — | |||||||||||||||||
Total net flows | (4.9 | ) | (5.2 | ) | 0.6 | (1.1 | ) | 3.7 | (2.9 | ) | |||||||||||||
Reinvested distributions(a) | 1.7 | 1.2 | 0.3 | 0.1 | — | 0.1 | |||||||||||||||||
Market gains and losses(a) | 14.3 | 14.5 | (0.2 | ) | (0.2 | ) | 0.1 | 0.1 | |||||||||||||||
Acquisitions(i) | 9.5 | 4.3 | 1.6 | 1.0 | 2.4 | 0.2 | |||||||||||||||||
Foreign currency translation | (3.0 | ) | (1.1 | ) | (0.7 | ) | (0.2 | ) | (0.3 | ) | (0.7 | ) | |||||||||||
September 30, 2018 | $980.9 | $460.6 | $234.3 | $57.0 | $86.3 | $142.7 | |||||||||||||||||
Average AUM | $985.1 | $459.2 | $235.4 | $57.8 | $89.4 | $143.3 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
June 30, 2018 | $963.3 | $622.1 | $25.4 | $100.9 | $126.3 | $88.6 | |||||||||||||||||
Long-term inflows | 43.6 | 22.9 | 0.9 | 2.7 | 10.9 | 6.2 | |||||||||||||||||
Long-term outflows | (54.8 | ) | (28.8 | ) | (1.2 | ) | (6.4 | ) | (12.6 | ) | (5.8 | ) | |||||||||||
Long-term net flows | (11.2 | ) | (5.9 | ) | (0.3 | ) | (3.7 | ) | (1.7 | ) | 0.4 | ||||||||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 3.2 | — | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | 3.1 | (2.1 | ) | — | — | — | 5.2 | ||||||||||||||||
Total net flows | (4.9 | ) | (4.8 | ) | (0.3 | ) | (3.7 | ) | (1.7 | ) | 5.6 | ||||||||||||
Reinvested distributions(a) | 1.7 | 1.6 | — | 0.1 | — | — | |||||||||||||||||
Market gains and losses(a) | 14.3 | 14.1 | — | (0.2 | ) | 0.8 | (0.4 | ) | |||||||||||||||
Acquisitions(i) | 9.5 | — | — | — | — | 9.5 | |||||||||||||||||
Foreign currency translation | (3.0 | ) | — | 0.5 | (1.0 | ) | (0.6 | ) | (1.9 | ) | |||||||||||||
September 30, 2018 | $980.9 | $633.0 | $25.6 | $96.1 | $124.8 | $101.4 | |||||||||||||||||
(in billions) | Q3-18 | Q2-18 | % Change | Q3-17 | ||||||||||
Beginning Assets | $241.2 | $200.3 | 20.4 | % | $156.6 | |||||||||
Long-term inflows | 15.3 | 18.8 | (18.6 | )% | 9.9 | |||||||||
Long-term outflows | (15.6 | ) | (18.4 | ) | (15.2 | )% | (8.6 | ) | ||||||
Long-term net flows | (0.3 | ) | 0.4 | N/A | 1.3 | |||||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 0.9 | 255.6 | % | 0.9 | |||||||||
Net flows in institutional money market funds | — | — | N/A | — | ||||||||||
Total net flows | 2.9 | 1.3 | 123.1 | % | 2.2 | |||||||||
Market gains and losses | 9.6 | 4.8 | 100.0 | % | 5.7 | |||||||||
Transfers(h) | — | (1.5 | ) | (100.0 | )% | — | ||||||||
Acquisitions(i) | 0.2 | 36.9 | (99.5 | )% | 26.0 | |||||||||
Foreign currency translation | — | (0.6 | ) | (100.0 | )% | — | ||||||||
Ending Assets | $253.9 | $241.2 | 5.3 | % | $190.5 | |||||||||
Average long-term AUM | $151.0 | $147.7 | 2.2 | % | $91.9 | |||||||||
Average AUM | $248.8 | $239.0 | 4.1 | % | $173.8 | |||||||||
Gross revenue yield on AUM(c) | 14.3 | bps | 15.5 | bps | 16.0 | bps | ||||||||
Gross revenue yield on AUM before performance fees(c) | 14.3 | bps | 15.5 | bps | 16.0 | bps | ||||||||
Net revenue yield on AUM(d) | 14.3 | bps | 15.5 | bps | 16.0 | bps | ||||||||
Net revenue yield on AUM before performance fees(d) | 14.3 | bps | 15.5 | bps | 16.0 | bps |
By channel: (in billions) | Total | Retail | Institutional | ||||||||
June 30, 2018 | $241.2 | $225.6 | $15.6 | ||||||||
Long-term inflows | 15.3 | 15.3 | — | ||||||||
Long-term outflows | (15.6 | ) | (15.6 | ) | — | ||||||
Long-term net flows | (0.3 | ) | (0.3 | ) | — | ||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 2.2 | 1.0 | ||||||||
Net flows in institutional money market funds | — | — | — | ||||||||
Total net flows | 2.9 | 1.9 | 1.0 | ||||||||
Market gains and losses | 9.6 | 9.6 | — | ||||||||
Acquisitions (i) | 0.2 | 0.2 | — | ||||||||
Foreign currency translation | — | — | — | ||||||||
September 30, 2018 | $253.9 | $237.3 | $16.6 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(e) | |||||||||||||||||
June 30, 2018 | $241.2 | $163.3 | $63.1 | $— | $— | $14.8 | |||||||||||||||||
Long-term inflows | 15.3 | 11.1 | 3.0 | — | — | 1.2 | |||||||||||||||||
Long-term outflows | (15.6 | ) | (9.8 | ) | (2.9 | ) | — | — | (2.9 | ) | |||||||||||||
Long-term net flows | (0.3 | ) | 1.3 | 0.1 | — | — | (1.7 | ) | |||||||||||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 2.3 | 0.9 | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||||||||
Total net flows | 2.9 | 3.6 | 1.0 | — | — | (1.7 | ) | ||||||||||||||||
Market gains and losses | 9.6 | 10.0 | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||||
Acquisitions (i) | 0.2 | 0.2 | — | — | — | — | |||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2018 | $253.9 | $177.1 | $63.9 | $— | $— | $12.9 | |||||||||||||||||
Average AUM | $248.8 | $171.4 | $64.2 | $— | $— | $13.2 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
June 30, 2018 | $241.2 | $209.4 | $0.5 | $— | $30.6 | $0.7 | |||||||||||||||||
Long-term inflows | 15.3 | 9.5 | 0.1 | — | 5.6 | 0.1 | |||||||||||||||||
Long-term outflows | (15.6 | ) | (9.2 | ) | — | — | (6.3 | ) | (0.1 | ) | |||||||||||||
Long-term net flows | (0.3 | ) | 0.3 | 0.1 | — | (0.7 | ) | — | |||||||||||||||
Net flows in non-management fee earning AUM(b) | 3.2 | 3.2 | — | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||||||||
Total net flows | 2.9 | 3.5 | 0.1 | — | (0.7 | ) | — | ||||||||||||||||
Market gains and losses | 9.6 | 9.1 | — | — | 0.5 | — | |||||||||||||||||
Transfers | — | (0.5 | ) | — | — | — | 0.5 | ||||||||||||||||
Acquisitions (i) | 0.2 | — | — | — | — | 0.2 | |||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||||||||
September 30, 2018 | $253.9 | $221.5 | $0.6 | $— | $30.4 | $1.4 | |||||||||||||||||
(in billions) | September 30, 2018 | September 30, 2017 | % Change | |||||||
Beginning Assets | $937.6 | $812.9 | 15.3 | % | ||||||
Long-term inflows | 154.6 | 132.5 | 16.7 | % | ||||||
Long-term outflows | (173.5 | ) | (126.5 | ) | 37.2 | % | ||||
Long-term net flows | (18.9 | ) | 6.0 | N/A | ||||||
Net flows in non-management fee earning AUM (b) | 3.7 | 1.4 | 164.3 | % | ||||||
Net flows in institutional money market funds | 4.4 | 0.1 | N/A | |||||||
Total net flows | (10.8 | ) | 7.5 | N/A | ||||||
Reinvested distributions(a) | 3.0 | 1.1 | 172.7 | % | ||||||
Market gains and losses(a) | 12.4 | 51.1 | (75.7 | )% | ||||||
Acquisitions(i) | 47.6 | 26.0 | 83.1 | % | ||||||
Foreign currency translation | (8.9 | ) | 18.9 | N/A | ||||||
Ending Assets | $980.9 | $917.5 | 6.9 | % | ||||||
Average long-term AUM | $797.5 | $706.7 | 12.8 | % | ||||||
Average AUM | $970.1 | $856.6 | 13.3 | % | ||||||
Gross revenue yield on AUM(c) | 56.6 | bps | 59.5 | bps | ||||||
Gross revenue yield on AUM before performance fees(c) | 56.2 | bps | 58.4 | bps | ||||||
Net revenue yield on AUM(d) | 39.8 | bps | 42.8 | bps | ||||||
Net revenue yield on AUM before performance fees(d) | 39.4 | bps | 41.6 | bps |
(in billions) | Total AUM | Active(g) | Passive(g) | ||||||||
December 31, 2017 | $937.6 | $738.6 | $199.0 | ||||||||
Long-term inflows | 154.6 | 104.0 | 50.6 | ||||||||
Long-term outflows | (173.5 | ) | (124.8 | ) | (48.7 | ) | |||||
Long-term net flows | (18.9 | ) | (20.8 | ) | 1.9 | ||||||
Net flows in non-management fee earning AUM(b) | 3.7 | — | 3.7 | ||||||||
Net flows in institutional money market funds | 4.4 | 4.4 | — | ||||||||
Total net flows | (10.8 | ) | (16.4 | ) | 5.6 | ||||||
Reinvested distributions(a) | 3.0 | 3.0 | — | ||||||||
Market gains and losses(a) | 12.4 | (1.6 | ) | 14.0 | |||||||
Transfers(h) | — | 1.5 | (1.5 | ) | |||||||
Acquisitions(i) | 47.6 | 10.5 | 37.1 | ||||||||
Foreign currency translation | (8.9 | ) | (8.6 | ) | (0.3 | ) | |||||
September 30, 2018 | $980.9 | $727.0 | $253.9 | ||||||||
Average AUM | $970.1 | $739.4 | $230.7 | ||||||||
Gross revenue yield on AUM(c) | 56.6bps | 69.9bps | 14.8bps | ||||||||
Net revenue yield on AUM(d) | 39.8bps | 47.7bps | 14.8bps | ||||||||
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2017 | $937.6 | $637.0 | $300.6 | ||||||||
Long-term inflows | 154.6 | 120.4 | 34.2 | ||||||||
Long-term outflows | (173.5 | ) | (137.1 | ) | (36.4 | ) | |||||
Long-term net flows | (18.9 | ) | (16.7 | ) | (2.2 | ) | |||||
Net flows in non-management fee earning AUM(b) | 3.7 | 3.7 | — | ||||||||
Net flows in institutional money market funds | 4.4 | 6.2 | (1.8 | ) | |||||||
Total net flows | (10.8 | ) | (6.8 | ) | (4.0 | ) | |||||
Reinvested distributions(a) | 3.0 | 3.0 | — | ||||||||
Market gains and losses(a) | 12.4 | 11.5 | 0.9 | ||||||||
Transfers(h) | — | (29.5 | ) | 29.5 | |||||||
Acquisitions(i) | 47.6 | 42.6 | 5.0 | ||||||||
Foreign currency translation | (8.9 | ) | (5.7 | ) | (3.2 | ) | |||||
September 30, 2018 | $980.9 | $652.1 | $328.8 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market (f) | Alternatives(e) | |||||||||||||||||
December 31, 2017 | $937.6 | $431.2 | $225.8 | $57.7 | $78.7 | $144.2 | |||||||||||||||||
Long-term inflows | 154.6 | 74.0 | 38.6 | 10.6 | 4.9 | 26.5 | |||||||||||||||||
Long-term outflows | (173.5 | ) | (95.2 | ) | (37.5 | ) | (9.9 | ) | (3.9 | ) | (27.0 | ) | |||||||||||
Long-term net flows | (18.9 | ) | (21.2 | ) | 1.1 | 0.7 | 1.0 | (0.5 | ) | ||||||||||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 4.0 | (0.3 | ) | — | — | — | ||||||||||||||||
Net flows in institutional money market funds | 4.4 | — | — | — | 4.4 | — | |||||||||||||||||
Total net flows | (10.8 | ) | (17.2 | ) | 0.8 | 0.7 | 5.4 | (0.5 | ) | ||||||||||||||
Reinvested distributions(a) | 3.0 | 1.8 | 0.8 | 0.1 | — | 0.3 | |||||||||||||||||
Market gains and losses(a) | 12.4 | 17.6 | (3.0 | ) | (1.2 | ) | 0.3 | (1.3 | ) | ||||||||||||||
Acquisitions(i) | 47.6 | 31.2 | 11.5 | 1.0 | 2.4 | 1.5 | |||||||||||||||||
Foreign currency translation | (8.9 | ) | (4.0 | ) | (1.6 | ) | (1.3 | ) | (0.5 | ) | (1.5 | ) | |||||||||||
September 30, 2018 | $980.9 | $460.6 | $234.3 | $57.0 | $86.3 | $142.7 | |||||||||||||||||
Average AUM | $970.1 | $448.9 | $232.6 | $58.6 | $84.6 | $145.4 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2017 | $937.6 | $585.4 | $26.8 | $110.9 | $127.1 | $87.4 | |||||||||||||||||
Long-term inflows | 154.6 | 72.9 | 3.5 | 10.1 | 46.1 | 22.0 | |||||||||||||||||
Long-term outflows | (173.5 | ) | (87.9 | ) | (4.0 | ) | (18.0 | ) | (44.6 | ) | (19.0 | ) | |||||||||||
Long-term net flows | (18.9 | ) | (15.0 | ) | (0.5 | ) | (7.9 | ) | 1.5 | 3.0 | |||||||||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 3.7 | — | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | 4.4 | 0.8 | — | (2.3 | ) | (0.3 | ) | 6.2 | |||||||||||||||
Total net flows | (10.8 | ) | (10.5 | ) | (0.5 | ) | (10.2 | ) | 1.2 | 9.2 | |||||||||||||
Reinvested distributions(a) | 3.0 | 2.6 | — | 0.4 | — | — | |||||||||||||||||
Market gains and losses(a) | 12.4 | 17.4 | 0.1 | (2.0 | ) | (0.6 | ) | (2.5 | ) | ||||||||||||||
Acquisitions(i) | 47.6 | 38.1 | — | — | — | 9.5 | |||||||||||||||||
Foreign currency translation | (8.9 | ) | — | (0.8 | ) | (3.0 | ) | (2.9 | ) | (2.2 | ) | ||||||||||||
September 30, 2018 | $980.9 | $633.0 | $25.6 | $96.1 | $124.8 | $101.4 | |||||||||||||||||
(in billions) | September 30, 2018 | September 30, 2017 | % Change | |||||||
Beginning Assets | $199.0 | $144.4 | 37.8 | % | ||||||
Long-term inflows | 50.6 | 26.4 | 91.7 | % | ||||||
Long-term outflows | (48.7 | ) | (22.5 | ) | 116.4 | % | ||||
Long-term net flows | 1.9 | 3.9 | (51.3 | )% | ||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 1.4 | 164.3 | % | ||||||
Net flows in institutional money market funds | — | — | N/A | |||||||
Total net flows | 5.6 | 5.3 | 5.7 | % | ||||||
Market gains and losses | 14.0 | 14.7 | (4.8 | )% | ||||||
Transfers(h) | (1.5 | ) | — | N/A | ||||||
Acquisitions(i) | 37.1 | 26.0 | 42.7 | % | ||||||
Foreign currency translation | (0.3 | ) | 0.1 | N/A | ||||||
Ending Assets | $253.9 | $190.5 | 33.3 | % | ||||||
Average long-term AUM | $137.3 | $81.9 | 67.6 | % | ||||||
Average AUM | $230.7 | $160.7 | 43.6 | % | ||||||
Gross revenue yield on AUM(c) | 14.8 | bps | 16.4 | bps | ||||||
Gross revenue yield on AUM before performance fees(c) | 14.8 | bps | 16.4 | bps | ||||||
Net revenue yield on AUM(d) | 14.8 | bps | 16.4 | bps | ||||||
Net revenue yield on AUM before performance fees(d) | 14.8 | bps | 16.4 | bps |
By channel: (in billions) | Total | Retail | Institutional | ||||||||
December 31, 2017 | $199.0 | $182.0 | $17.0 | ||||||||
Long-term inflows | 50.6 | 50.6 | — | ||||||||
Long-term outflows | (48.7 | ) | (48.7 | ) | — | ||||||
Long-term net flows | 1.9 | 1.9 | — | ||||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 3.7 | — | ||||||||
Net flows in institutional money market funds | — | — | — | ||||||||
Total net flows | 5.6 | 5.6 | — | ||||||||
Market gains and losses | 14.0 | 14.4 | (0.4 | ) | |||||||
Transfers(h) | (1.5 | ) | (1.4 | ) | (0.1 | ) | |||||
Acquisitions(i) | 37.1 | 37.1 | — | ||||||||
Foreign currency translation | (0.3 | ) | (0.4 | ) | 0.1 | ||||||
September 30, 2018 | $253.9 | $237.3 | $16.6 | ||||||||
By asset class: (in billions) | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(e) | |||||||||||||||||
December 31, 2017 | $199.0 | $128.4 | $57.3 | $— | $— | $13.3 | |||||||||||||||||
Long-term inflows | 50.6 | 33.9 | 10.2 | — | — | 6.5 | |||||||||||||||||
Long-term outflows | (48.7 | ) | (32.2 | ) | (10.0 | ) | — | — | (6.5 | ) | |||||||||||||
Long-term net flows | 1.9 | 1.7 | 0.2 | — | — | — | |||||||||||||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 4.0 | (0.3 | ) | — | — | — | ||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||||||||
Total net flows | 5.6 | 5.7 | (0.1 | ) | — | — | — | ||||||||||||||||
Market gains and losses | 14.0 | 16.1 | (1.5 | ) | — | — | (0.6 | ) | |||||||||||||||
Transfers(h) | (1.5 | ) | — | (0.3 | ) | — | — | (1.2 | ) | ||||||||||||||
Acquisitions(i) | 37.1 | 27.1 | 8.7 | — | — | 1.3 | |||||||||||||||||
Foreign currency translation | (0.3 | ) | (0.2 | ) | (0.2 | ) | — | — | 0.1 | ||||||||||||||
September 30, 2018 | $253.9 | $177.1 | $63.9 | $— | $— | $12.9 | |||||||||||||||||
Average AUM | $230.7 | $154.6 | $61.6 | $— | $— | $14.5 | |||||||||||||||||
By client domicile: (in billions) | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||||||||
December 31, 2017 | $199.0 | $167.3 | $0.6 | $— | $30.0 | $1.1 | |||||||||||||||||
Long-term inflows | 50.6 | 30.2 | 0.1 | — | 20.0 | 0.3 | |||||||||||||||||
Long-term outflows | (48.7 | ) | (28.9 | ) | (0.1 | ) | — | (19.5 | ) | (0.2 | ) | ||||||||||||
Long-term net flows | 1.9 | 1.3 | — | — | 0.5 | 0.1 | |||||||||||||||||
Net flows in non-management fee earning AUM(b) | 3.7 | 3.7 | — | — | — | — | |||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||||||||
Total net flows | 5.6 | 5.0 | — | — | 0.5 | 0.1 | |||||||||||||||||
Market gains and losses | 14.0 | 14.3 | — | — | 0.2 | (0.5 | ) | ||||||||||||||||
Transfers(h) | (1.5 | ) | (2.0 | ) | — | — | — | 0.5 | |||||||||||||||
Acquisitions(i) | 37.1 | 36.9 | — | — | — | 0.2 | |||||||||||||||||
Foreign currency translation | (0.3 | ) | — | — | — | (0.3 | ) | — | |||||||||||||||
September 30, 2018 | $253.9 | $221.5 | $0.6 | $— | $30.4 | $1.4 | |||||||||||||||||
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 | 14 | % | — | % | 13 | % | 26 | % | — | % | 7 | % | |
U.S. Growth | 31 | % | 40 | % | 40 | % | 9 | % | 56 | % | 36 | % | |
U.S. Value | 35 | % | 50 | % | 50 | % | 35 | % | 50 | % | 50 | % | |
Sector | 49 | % | 57 | % | 53 | % | 49 | % | 34 | % | 29 | % | |
U.K. | 6 | % | 8 | % | 70 | % | 2 | % | 7 | % | 6 | % | |
Canadian | 5 | % | 11 | % | — | % | 5 | % | 11 | % | — | % | |
Asian | 74 | % | 75 | % | 90 | % | 57 | % | 87 | % | 85 | % | |
Continental European | 54 | % | 85 | % | 99 | % | 35 | % | 66 | % | 79 | % | |
Global | 40 | % | 37 | % | 50 | % | 42 | % | 50 | % | 67 | % | |
Global Ex U.S. and Emerging Markets | 1 | % | 17 | % | 12 | % | — | % | 17 | % | 4 | % | |
Fixed Income | |||||||||||||
Money Market | 98 | % | 99 | % | 99 | % | 86 | % | 87 | % | 98 | % | |
U.S. Fixed Income | 58 | % | 90 | % | 88 | % | 65 | % | 78 | % | 86 | % | |
Global Fixed Income | 34 | % | 45 | % | 48 | % | 38 | % | 36 | % | 41 | % | |
Stable Value | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Other | |||||||||||||
Alternatives | 35 | % | 66 | % | 66 | % | 41 | % | 46 | % | 75 | % | |
Balanced | 41 | % | 46 | % | 46 | % | 31 | % | 94 | % | 85 | % |
Note: | Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. AUM measured in the one, three, and five year quartile rankings represents 52%, 52%, and 49% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 65%, 63%, and 58% of total Invesco AUM as of 9/30/18. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings are calculated against all funds in each peer group. Rankings for the primary share class of the most representative fund in each composite are applied to all products within each composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience. |
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