ATLANTA, Oct. 26, 2021 /PRNewswire/ -- Invesco Ltd. (NYSE:
IVZ) today reported financial results for the three months ended
September 30, 2021.
- $13.3 billion of net long-term
inflows, continued strength in our Fixed Income capabilities, ETF
franchise, Private Markets and Greater
China
- $1,528.6 billion in ending AUM,
an increase of 0.2% over the prior quarter
- 26.5% operating margin; 42.1% adjusted operating
margin(1)
Update from Marty
Flanagan, President and CEO
"We continue to see growth from our key capability areas,
including ETFs, Fixed Income, China, Solutions, Alternatives, and Global
Equities," said Marty Flanagan,
President and CEO. "With this growth, we have now had five
consecutive quarters of net long-term inflows for the firm.
"The momentum we are seeing is producing positive operating
leverage and further strengthening our balance sheet and financial
flexibility for the future. Our absolute focus on client outcomes,
investment readiness, competitive strength and scale position us
well for continued organic growth."
___________________________________________________________________________________
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
Net Flows:
Net long-term inflows were $13.3 billion for the third quarter of 2021,
compared to $31.1 billion in the
second quarter of 2021.
Institutional net long-term inflows were $11.5 billion and were across multiple asset
classes and geographies, while retail net long-term inflows were
$1.8 billion, driven by positive ETF
flows and inflows into Greater
China. Overall areas of strength by asset class include net
long-term inflows of $11.0 billion in fixed income products and
$2.3 billion in alternative
products. On a geographic basis, the Asia
Pacific, Americas and EMEA ex-UK regions achieved net
long-term inflows of $9.3 billion, $4.8 billion and $1.0 billion, respectively, offset by
$1.8 billion outflows in the
UK.
Net market losses and foreign exchange rate movements decreased
AUM by $14.6 billion and $4.0 billion, respectively, in the third quarter.
We had inflows of $5.5 billion and
$2.6 billion into non-management fee
earning products and money market funds, respectively, during the
quarter. Ending AUM was up 0.2%, while average AUM increased 4.1%
during the third quarter.
Summary of net
flows (in billions)
|
|
Q3-21
|
|
Q2-21
|
|
Q3-20
|
Active
|
|
$
|
6.8
|
|
|
$
|
2.1
|
|
|
$
|
1.8
|
|
Passive
|
|
6.5
|
|
|
29.0
|
|
|
6.0
|
|
Net long-term
flows
|
|
13.3
|
|
|
31.1
|
|
|
7.8
|
|
Non-management fee
earning AUM
|
|
5.5
|
|
|
2.5
|
|
|
7.0
|
|
Money
market
|
|
2.6
|
|
|
19.8
|
|
|
(3.5)
|
|
Total net
flows
|
|
$
|
21.4
|
|
|
$
|
53.4
|
|
|
$
|
11.3
|
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate (1)
|
|
4.4
|
%
|
|
10.6
|
%
|
|
3.3
|
%
|
|
|
|
|
|
|
|
(1)
|
Annualized long-term
organic growth rate is calculated using net long-term flows
(annualized) divided by average long-term AUM for the period.
Long-term AUM excludes money market and non-management fee earning
AUM.
|
Third Quarter Highlights:
Financial
Results
|
Q3-21
|
|
Q2-21
|
|
Q3-21 vs.
Q2-21
|
|
Q3-20
|
|
Q3-21 vs.
Q3-20
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,750.0
|
m
|
|
$1,721.4
|
m
|
|
1.7
|
%
|
|
$1,497.6
|
m
|
|
16.9
|
%
|
Operating
income
|
$463.8
|
m
|
|
$470.9
|
m
|
|
(1.5)
|
%
|
|
$268.5
|
m
|
|
72.7
|
%
|
Operating
margin
|
26.5
|
%
|
|
27.4
|
%
|
|
|
|
17.9
|
%
|
|
|
Net income
attributable to Invesco Ltd.
|
$330.1
|
m
|
|
$368.3
|
m
|
|
(10.4)
|
%
|
|
$191.7
|
m
|
|
72.2
|
%
|
Diluted
EPS
|
$0.71
|
|
|
$0.79
|
|
|
(10.1)
|
%
|
|
$0.41
|
|
|
73.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures (1)
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$1,333.5
|
m
|
|
$1,302.9
|
m
|
|
2.3
|
%
|
|
$1,092.5
|
m
|
|
22.1
|
%
|
Adjusted operating
income
|
$561.6
|
m
|
|
$540.5
|
m
|
|
3.9
|
%
|
|
$406.7
|
m
|
|
38.1
|
%
|
Adjusted operating
margin
|
42.1
|
%
|
|
41.5
|
%
|
|
|
|
37.2
|
%
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$358.6
|
m
|
|
$364.7
|
m
|
|
(1.7)
|
%
|
|
$244.0
|
m
|
|
47.0
|
%
|
Adjusted diluted
EPS
|
$0.77
|
|
|
$0.78
|
|
|
(1.3)
|
%
|
|
$0.53
|
|
|
45.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$1,528.6
|
bn
|
|
$1,525.0
|
bn
|
|
0.2
|
%
|
|
$1,218.2
|
bn
|
|
25.5
|
%
|
Average
AUM
|
$1,540.5
|
bn
|
|
$1,480.2
|
bn
|
|
4.1
|
%
|
|
$1,206.2
|
bn
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Headcount
|
8,507
|
|
8,483
|
|
0.3
|
%
|
|
8,750
|
|
(2.8)
|
%
|
|
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
Third Quarter U.S. GAAP Operating Results:
Operating revenues and expenses: During the third
quarter, increases in operating revenue were driven by higher
average AUM and an additional day in the quarter. Revenues were
higher by $28.6 million, which
includes higher investment management fees of $28.1 million and higher service and distribution
fees of $8.1 million. The increase in
service and distribution fees is primarily from a pricing structure
change in our US transfer agency services, which is primarily
offset by higher property, office and technology expense.
Performance fees were $4.8 million
for the third quarter, a decrease of $5.7
million from the previous quarter. Foreign exchange rate
changes decreased operating revenues in the third quarter by
$8.1 million.
In the third quarter, Invesco substantially completed the
process of obtaining information related to the previously
disclosed OppenheimerFunds acquisition-related matter. Based on
this information, Invesco reduced the previously established
liability, which resulted in a third quarter benefit to
transaction, integration and restructuring expense of $45.7 million. The revised estimated liability of
$254.3 million excludes any amounts
that Invesco may be entitled to seek through indemnification and
insurance recoveries. Invesco expects fund shareholder
reimbursement payments to be made in the fourth quarter of
2021.
Operating expenses increased $35.7
million in the third quarter as compared to the second
quarter, driven by an increase of $35.1
million in transaction, integration and restructuring costs.
Transaction, integration and restructuring costs included a benefit
of $85.4 million in the second
quarter and a third quarter benefit of $45.7
million as discussed above. Third party distribution,
service and advisory costs were up $6.8
million during the quarter driven by higher average AUM.
Employee compensation expense decreased $10.3 million in the third quarter. The decrease
was primarily comprised of fair value decreases on deferred
compensation liabilities and lower salary costs, reflecting savings
from our strategic initiative, partially offset by higher variable
compensation costs. Marketing expenses were down $4.2 million from decreased advertising and
client event costs. Property, office and technology costs increased
$7.0 million during the third quarter
primarily due to the increased transfer agency costs related to the
pricing structure change described above. Foreign exchange rate
changes decreased operating expenses $7.1
million in the third quarter.
Non-operating income and expenses: Equity in
earnings of unconsolidated affiliates was $54.6 million, earned primarily from our Chinese
joint venture and private markets investments. Other gains and
losses was a net loss of $12.1
million, driven by market value changes on deferred
compensation investments. Other income/(expense) of consolidated
investment products (CIP), net was a gain of $200.2 million, primarily driven by market gains
on underlying investments held by consolidated funds. The
consolidated partnerships are valued a quarter in arrears,
therefore the gains recorded in the third quarter reflect the
valuation of consolidated partnerships as of June 30, 2021.
The effective tax rate was 20.4% in the third quarter as
compared to 23.7% in the second quarter. The decrease is primarily
due to the higher income attributable to non-controlling interests
in consolidated investment products, partially offset by an
increase in the reserve for uncertain tax positions in the third
quarter. The second quarter rate included additional tax expense
related to the remeasurement of deferred tax assets and liabilities
following enactment of an increase in the UK corporate tax
rate.
Diluted earnings per common
share: Diluted earnings per common share
decreased 10.1% to $0.71.
Third Quarter Adjusted(1) Operating
Results:
Net revenues increased $30.6 million or 2.3% as compared to the
second quarter, driven by higher average AUM during the quarter.
Investment management fees and service and distribution fees were
higher in the third quarter, partially offset by lower performance
fees and higher third party distribution, service and advisory
costs.
Adjusted operating expenses increased 1.2% in
the third quarter to $771.9 million from $762.4 million
in the second quarter, reflecting increased employee compensation,
property office and technology costs and general and administrative
costs, partially offset by lower marketing expenses.
Adjusted operating income improved $21.1 million to $561.6 million in the third quarter from
$540.5 million in the second
quarter. Adjusted operating margin improved to 42.1% from 41.5% for
the prior quarter.
Adjusted diluted earnings per common share decreased
1.3% to $0.77 as a result of net
market losses and a higher effective tax rate, partially offset by
increased operating income in the third quarter. The effective tax
rate on adjusted net income was 24.4% in the third quarter as
compared to 22.8% in the second quarter. The rate increase in the
third quarter is primarily due to an increase in the reserve for
uncertain tax positions in the third quarter.
___________________________________________________________________________________
|
(1)
|
Represents non-GAAP
financial measure. See the information on pages 7 through 10 for a
reconciliation to the most directly comparable U.S. GAAP
measure.
|
Capital Management:
Cash and cash equivalents: $1,773.2 million at September 30, 2021
($1,333.0 million as of June 30, 2021).
Long-term debt: $2,084.5 million at September 30, 2021
($2,083.8 million as of June 30, 2021). The credit facility balance was
zero as of September 30, 2021 and June
30, 2021.
Common share repurchases: During the third quarter
of 2021, the company did not purchase any of its shares in the open
market. The company withheld 0.4 million shares ($10.5 million) related to employee share
vestings.
Diluted common shares outstanding (end of
period): 465.9 million
Dividends paid: $78.8 million (common); $59.2 million (preferred)
Common dividends declared: The company is announcing a
third quarter cash dividend of $0.17
per share to holders of common shares. The dividend is payable on
December 2, 2021, to common shareholders of record at the
close of business on November 12, 2021, with an ex-dividend
date of November 10, 2021.
Preferred dividends declared: The company is
announcing a preferred cash dividend of $14.75 per share representing the period from
September 1, 2021 through
November 30, 2021. The preferred
dividend is payable on December 1, 2021 to preferred
shareholders of record at the close of business on
November 15, 2021.
About Invesco Ltd.
Invesco is a global independent investment management firm
dedicated to delivering an investment experience that helps people
get more out of life. With offices in more than 20 countries, our
distinctive investment teams deliver a comprehensive range of
active, passive and alternative investment capabilities. For more
information, visit invesco.com/corporate.
Members of the investment community and general public are
invited to listen to the conference call today, October 26,
2021, at 9:00 a.m. ET by dialing one
of the following numbers: 1-866-803-2143 for U.S. and Canadian
callers or 1-210-795-1098 for international callers, using the
Passcode: Invesco. An audio replay of the conference call will be
available until Tuesday, November 9,
2021 at 5:00 p.m. ET by
calling 1-866-359-6514 for U.S. and Canadian callers or
1-203-369-0157 for international callers. A presentation
highlighting the company's performance will be available during a
live Webcast and on Invesco's Website at invesco.com/corporate.
This release, and comments made in the associated conference
call today, may include "forward-looking statements."
Forward-looking statements include information concerning future
results of our operations, expenses, earnings, liquidity, cash flow
and capital expenditures, industry or market conditions, assets
under management, geopolitical events and the COVID-19 pandemic and
their respective potential impact on the company, acquisitions and
divestitures, debt and our ability to obtain additional financing
or make payments, regulatory developments, demand for and pricing
of our products and other aspects of our business or general
economic conditions. In addition, words such as "believes,"
"expects," "anticipates," "intends," "plans," "estimates,"
"projects," "forecasts," and future or conditional verbs such as
"will," "may," "could," "should," and "would" as well as any other
statement that necessarily depends on future events, are intended
to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. Although we make such
statements based on assumptions that we believe to be reasonable,
there can be no assurance that actual results will not differ
materially from our expectations. We caution investors not to rely
unduly on any forward-looking statements and urge you to carefully
consider the risks described in our most recent Form 10-K and
subsequent Forms 10-Q, filed with the Securities and Exchange
Commission. You may obtain these reports from the SEC's website at
www.sec.gov. We expressly disclaim any obligation to update
the information in any public disclosure if any forward-looking
statement later turns out to be inaccurate.
Investor Relations
Contacts:
Media Relations
Contact:
|
Greg
Ketron
Aimee
Partin
Graham
Galt
|
404-724-4299
404-724-4248
404-439-3070
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Income Statements
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q3-21
|
|
Q2-21
|
|
%
Change
|
|
Q3-20
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
$
|
1,275.5
|
|
|
$
|
1,247.4
|
|
|
2.3
|
%
|
|
$
|
1,096.8
|
|
|
16.3
|
%
|
Service and
distribution fees
|
409.1
|
|
|
401.0
|
|
|
2.0
|
%
|
|
352.7
|
|
|
16.0
|
%
|
Performance
fees
|
4.8
|
|
|
10.5
|
|
|
(54.3)
|
%
|
|
—
|
|
|
N/A
|
Other
|
60.6
|
|
|
62.5
|
|
|
(3.0)
|
%
|
|
48.1
|
|
|
26.0
|
%
|
Total operating
revenues
|
1,750.0
|
|
|
1,721.4
|
|
|
1.7
|
%
|
|
1,497.6
|
|
|
16.9
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
546.4
|
|
|
539.6
|
|
|
1.3
|
%
|
|
480.8
|
|
|
13.6
|
%
|
Employee
compensation
|
476.7
|
|
|
487.0
|
|
|
(2.1)
|
%
|
|
444.5
|
|
|
7.2
|
%
|
Marketing
|
20.3
|
|
|
24.5
|
|
|
(17.1)
|
%
|
|
15.6
|
|
|
30.1
|
%
|
Property, office and
technology
|
134.2
|
|
|
127.2
|
|
|
5.5
|
%
|
|
127.5
|
|
|
5.3
|
%
|
General and
administrative
|
105.0
|
|
|
103.3
|
|
|
1.6
|
%
|
|
89.7
|
|
|
17.1
|
%
|
Transaction,
integration and restructuring
|
(12.0)
|
|
|
(47.1)
|
|
|
(74.5)
|
%
|
|
55.3
|
|
|
N/A
|
Amortization of
intangible assets (1)
|
15.6
|
|
|
16.0
|
|
|
(2.5)
|
%
|
|
15.7
|
|
|
(0.6)
|
%
|
Total operating
expenses
|
1,286.2
|
|
|
1,250.5
|
|
|
2.9
|
%
|
|
1,229.1
|
|
|
4.6
|
%
|
Operating
income
|
463.8
|
|
|
470.9
|
|
|
(1.5)
|
%
|
|
268.5
|
|
|
72.7
|
%
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
54.6
|
|
|
37.2
|
|
|
46.8
|
%
|
|
18.6
|
|
|
193.5
|
%
|
Interest and dividend
income
|
1.9
|
|
|
0.4
|
|
|
375.0
|
%
|
|
2.6
|
|
|
(26.9)
|
%
|
Interest
expense
|
(23.1)
|
|
|
(24.6)
|
|
|
(6.1)
|
%
|
|
(33.8)
|
|
|
(31.7)
|
%
|
Other gains and
losses, net
|
(12.1)
|
|
|
43.4
|
|
|
N/A
|
|
31.5
|
|
|
N/A
|
Other income/(expense)
of CIP, net
|
200.2
|
|
|
122.0
|
|
|
64.1
|
%
|
|
99.2
|
|
|
101.8
|
%
|
Income before income
taxes
|
685.3
|
|
|
649.3
|
|
|
5.5
|
%
|
|
386.6
|
|
|
77.3
|
%
|
Income tax
provision
|
(139.7)
|
|
|
(154.2)
|
|
|
(9.4)
|
%
|
|
(91.9)
|
|
|
52.0
|
%
|
Net income
|
545.6
|
|
|
495.1
|
|
|
10.2
|
%
|
|
294.7
|
|
|
85.1
|
%
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(156.3)
|
|
|
(67.6)
|
|
|
131.2
|
%
|
|
(43.8)
|
|
|
256.8
|
%
|
Less: Dividends
declared on preferred shares
|
(59.2)
|
|
|
(59.2)
|
|
|
—
|
%
|
|
(59.2)
|
|
|
—
|
%
|
Net income
attributable to Invesco Ltd.
|
$
|
330.1
|
|
|
$
|
368.3
|
|
|
(10.4)
|
%
|
|
$
|
191.7
|
|
|
72.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.71
|
|
|
$0.80
|
|
|
(11.3)
|
%
|
|
$0.42
|
|
|
69.0
|
%
|
---diluted
|
$0.71
|
|
|
$0.79
|
|
|
(10.1)
|
%
|
|
$0.41
|
|
|
73.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
463.3
|
|
|
462.8
|
|
|
0.1
|
%
|
|
461.1
|
|
|
0.5
|
%
|
---diluted
|
466.0
|
|
|
466.2
|
|
|
0.0
|
%
|
|
463.5
|
|
|
0.5
|
%
|
|
___________________________________________________________________________________
|
(1)
|
In prior periods,
amortization of intangible assets was included in the transaction,
integration and restructuring line item. Beginning in 2021,
amortization of intangible assets is presented as its own line
item. There is no impact on operating expenses, operating income or
net income.
|
Invesco Ltd.
Non-GAAP Information
and Reconciliations
We utilize the following non-GAAP performance measures: net
revenues (and by calculation, net revenue yield on AUM), adjusted
operating income, adjusted operating margin, adjusted net income
attributable to Invesco Ltd., and adjusted diluted EPS. We believe
the adjusted measures provide valuable insight into our ongoing
operational performance and assist in comparisons to our
competitors. These measures also assist management with the
establishment of operational budgets and forecasts and assist the
Board of Directors and management in determining incentive
compensation decisions. The most directly comparable U.S. GAAP
measures are operating revenues (and by calculation, gross revenue
yield on AUM), operating income, operating margin, net income
attributable to Invesco Ltd., and diluted EPS.
The following are reconciliations of operating revenues,
operating income (and by calculation, operating margin), and net
income attributable to Invesco Ltd. (and by calculation, diluted
EPS) on a U.S. GAAP basis to a non-GAAP basis of net revenues,
adjusted operating income (and by calculation, adjusted operating
margin), and adjusted net income attributable to Invesco Ltd. (and
by calculation, adjusted diluted EPS). In addition, a
reconciliation of adjusted operating expenses is provided below,
together with reconciliations of the U.S. GAAP operating expense
lines to provide further analysis of the non-GAAP adjustments.
These non-GAAP measures should not be considered as substitutes for
any U.S. GAAP measures and may not be comparable to other similarly
titled measures of other companies. The tax effect of the
reconciling items is based on the tax jurisdiction attributable to
the transactions. These measures are described more fully in the
company's Forms 10-K and 10-Q. Refer to these public filings for
additional information about the company's non-GAAP performance
measures.
Reconciliation of
Operating revenues to Net revenues:
|
|
in
millions
|
Q3-21
|
|
Q2-21
|
|
Q3-20
|
|
Operating revenues,
U.S. GAAP basis
|
$
|
1,750.0
|
|
|
$
|
1,721.4
|
|
|
$
|
1,497.6
|
|
|
Invesco Great Wall
(1)
|
118.7
|
|
|
110.9
|
|
|
65.3
|
|
|
Revenue Adjustments
(2)
|
|
|
|
|
|
|
Investment management
fees
|
(216.3)
|
|
|
(212.8)
|
|
|
(192.6)
|
|
|
Service and
distribution fees
|
(278.0)
|
|
|
(269.7)
|
|
|
(245.0)
|
|
|
Other
|
(52.1)
|
|
|
(57.1)
|
|
|
(43.2)
|
|
|
Total Revenue
Adjustments
|
(546.4)
|
|
|
(539.6)
|
|
|
(480.8)
|
|
|
CIP
|
11.2
|
|
|
10.2
|
|
|
10.4
|
|
|
Net
revenues
|
$
|
1,333.5
|
|
|
$
|
1,302.9
|
|
|
$
|
1,092.5
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating income to Adjusted operating income:
|
|
in
millions
|
Q3-21
|
|
Q2-21
|
|
Q3-20
|
|
Operating income,
U.S. GAAP basis
|
$
|
463.8
|
|
|
$
|
470.9
|
|
|
$
|
268.5
|
|
|
Invesco Great Wall
(1)
|
70.4
|
|
|
62.0
|
|
|
37.7
|
|
|
CIP
|
20.7
|
|
|
19.2
|
|
|
14.8
|
|
|
Transaction,
integration and restructuring (3)
|
(12.0)
|
|
|
(47.1)
|
|
|
55.3
|
|
|
Amortization of
intangible assets (4)
|
15.6
|
|
|
16.0
|
|
|
15.7
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
3.1
|
|
|
19.5
|
|
|
14.7
|
|
|
Adjusted operating
income
|
$
|
561.6
|
|
|
$
|
540.5
|
|
|
$
|
406.7
|
|
|
|
|
|
|
|
|
|
Operating margin
(5)
|
26.5
|
%
|
|
27.4
|
%
|
|
17.9
|
%
|
|
Adjusted operating
margin (6)
|
42.1
|
%
|
|
41.5
|
%
|
|
37.2
|
%
|
|
Reconciliation of
Net income attributable to Invesco Ltd. to Adjusted net income
attributable to Invesco Ltd.
|
|
in
millions
|
Q3-21
|
|
Q2-21
|
|
Q3-20
|
|
Net income
attributable to Invesco Ltd., U.S. GAAP basis
|
$
|
330.1
|
|
|
$
|
368.3
|
|
|
$
|
191.7
|
|
|
CIP
|
—
|
|
|
—
|
|
|
(9.6)
|
|
|
Transaction,
integration and restructuring, net of tax (3)
|
(8.7)
|
|
|
(34.8)
|
|
|
43.4
|
|
|
Amortization of
intangible assets, net of tax (4)
|
21.3
|
|
|
21.8
|
|
|
21.8
|
|
|
Deferred compensation
plan market valuation changes and dividend income less compensation
expense, net of tax
|
9.4
|
|
|
(7.6)
|
|
|
(7.1)
|
|
|
Acquisition-related
contingent consideration, net of tax
|
—
|
|
|
—
|
|
|
0.2
|
|
|
Impact of tax rate
changes (7)
|
6.5
|
|
|
17.0
|
|
|
3.6
|
|
|
Adjusted net income
attributable to Invesco Ltd. (8)
|
$
|
358.6
|
|
|
$
|
364.7
|
|
|
$
|
244.0
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - diluted
|
466.0
|
|
|
466.2
|
|
|
463.5
|
|
|
Diluted
EPS
|
$0.71
|
|
|
$0.79
|
|
|
$0.41
|
|
|
Adjusted diluted EPS
(9)
|
$0.77
|
|
|
$0.78
|
|
|
$0.53
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses:
|
|
in
millions
|
Q3-21
|
|
Q2-21
|
|
Q3-20
|
|
Operating expenses,
U.S. GAAP basis
|
$
|
1,286.2
|
|
|
$
|
1,250.5
|
|
|
$
|
1,229.1
|
|
|
Invesco Great Wall
(1)
|
48.3
|
|
|
48.9
|
|
|
27.6
|
|
|
Third party
distribution, service and advisory expenses
|
(546.4)
|
|
|
(539.6)
|
|
|
(480.8)
|
|
|
CIP
|
(9.5)
|
|
|
(9.0)
|
|
|
(4.4)
|
|
|
Transaction,
integration and restructuring (3)
|
12.0
|
|
|
47.1
|
|
|
(55.3)
|
|
|
Amortization of
intangible assets (4)
|
(15.6)
|
|
|
(16.0)
|
|
|
(15.7)
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(3.1)
|
|
|
(19.5)
|
|
|
(14.7)
|
|
|
Adjusted operating
expenses
|
$
|
771.9
|
|
|
$
|
762.4
|
|
|
$
|
685.8
|
|
|
|
|
|
|
|
|
|
Employee
compensation, U.S. GAAP basis
|
$
|
476.7
|
|
|
$
|
487.0
|
|
|
$
|
444.5
|
|
|
Invesco Great Wall
(1)
|
38.2
|
|
|
39.5
|
|
|
21.0
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(3.1)
|
|
|
(19.5)
|
|
|
(14.7)
|
|
|
Adjusted employee
compensation
|
$
|
511.8
|
|
|
$
|
507.0
|
|
|
$
|
450.8
|
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis
|
$
|
20.3
|
|
|
$
|
24.5
|
|
|
$
|
15.6
|
|
|
Invesco Great Wall
(1)
|
3.9
|
|
|
4.1
|
|
|
2.4
|
|
|
Adjusted
marketing
|
$
|
24.2
|
|
|
$
|
28.6
|
|
|
$
|
18.0
|
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis
|
$
|
134.2
|
|
|
$
|
127.2
|
|
|
$
|
127.5
|
|
|
Invesco Great Wall
(1)
|
3.6
|
|
|
3.2
|
|
|
2.7
|
|
|
Adjusted property,
office and technology
|
$
|
137.8
|
|
|
$
|
130.4
|
|
|
$
|
130.2
|
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis
|
$
|
105.0
|
|
|
$
|
103.3
|
|
|
$
|
89.7
|
|
|
Invesco Great Wall
(1)
|
2.6
|
|
|
2.1
|
|
|
1.5
|
|
|
CIP
|
(9.5)
|
|
|
(9.0)
|
|
|
(4.4)
|
|
|
Adjusted general and
administrative
|
$
|
98.1
|
|
|
$
|
96.4
|
|
|
$
|
86.8
|
|
|
|
|
|
|
|
|
|
Transaction,
integration and restructuring, U.S. GAAP basis
(3)
|
$
|
(12.0)
|
|
|
$
|
(47.1)
|
|
|
$
|
55.3
|
|
|
Transaction,
integration and restructuring
|
12.0
|
|
|
47.1
|
|
|
(55.3)
|
|
|
Adjusted transaction,
integration and restructuring
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets, U.S. GAAP basis
|
$
|
15.6
|
|
|
$
|
16.0
|
|
|
$
|
15.7
|
|
|
Amortization of
intangible assets (4)
|
(15.6)
|
|
|
(16.0)
|
|
|
(15.7)
|
|
|
Adjusted amortization
of intangibles
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Management reflects
100% of Invesco Great Wall in its net revenues and adjusted
operating expenses. The company's non-GAAP operating results
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.
|
|
|
(2)
|
Management believes
that adjustments to investment management fees, service and
distribution fees and other revenues from operating revenues
appropriately reflect these revenues as being passed through to
external parties who perform functions on behalf of, and
distribute, the company's managed funds. Further, these adjustments
vary extensively by geography due to the differences in
distribution channels. The net revenue presentation assists in
identifying the revenue contribution generated by the business,
removing distortions caused by the differing distribution channel
fees and allowing for a fair comparison with U.S. peer investment
managers and within Invesco's own investment units. Additionally,
management evaluates net revenue yield on AUM, which is equal to
net revenues divided by average AUM during the reporting period.
This financial measure is an indicator of the basis point net
revenues we receive for each dollar of AUM we manage and is useful
when evaluating the company's performance relative to industry
competitors and within the company for capital allocation
purposes.
|
|
|
|
Investment management
fees are adjusted by renewal commissions and certain administrative
fees. Service and distribution fees are primarily adjusted by
distribution fees passed through to broker dealers for certain
share classes and pass through fund-related costs. Other is
primarily adjusted by transaction fees passed through to third
parties. While the terms used for these types of adjustments vary
by geography, they are all costs that are closely linked to the
value of AUM and the revenue earned by Invesco from AUM. Since the
company has been deemed to be the principal in the third-party
arrangements, the company must reflect these adjustments as
expenses gross of operating revenues under U.S. GAAP in third-party
expenses on the consolidated statements of income.
|
|
|
(3)
|
During the third
quarter of 2021, Invesco substantially completed the process of
obtaining information related to the previously disclosed
OppenheimerFunds acquisition-related matter. Based on this
information, the company recorded a $45.7 million benefit
(second quarter 2021: $85.4 million benefit) to the Transaction,
integration and restructuring expense line item.
|
|
|
(4)
|
In prior periods,
amortization of intangible assets was included in the transaction,
integration and restructuring line item. Beginning in 2021,
amortization of intangible assets is presented as its own line
item. There is no impact on operating expenses, operating income or
net income.
|
|
|
|
While finite-lived
intangible assets are amortized under U.S. GAAP, there is no
amortization charge on goodwill and indefinite-lived intangibles.
In certain qualifying situations, amortization can be recognized
for goodwill and indefinite-lived intangibles for tax purposes,
generally over a 15-year period, as is the case in the U.S. The tax
benefit realized on the amortization is recognized as a deferred
tax liability that is not reflected in the company's earnings
absent an impairment charge or the disposal of the related
business, which is not anticipated in the foreseeable future. We
believe it is useful to include this tax benefit in arriving at the
adjusted diluted EPS measure.
|
|
|
(5)
|
Operating margin is
equal to operating income divided by operating revenues.
|
|
|
(6)
|
Adjusted operating
margin is equal to adjusted operating income divided by net
revenues.
|
|
|
(7)
|
The third quarter of
2021 included a non-cash income tax expense of $6.5 million related
to the remeasurement of certain intangible deferred tax liabilities
due to tax rate changes. The second quarter of 2021 included a
non-cash income tax expense of $17.0 million arising from the
remeasurement of the UK deferred tax assets and liabilities due to
the enactment of an increase in the UK corporate tax rate from 19%
to 25% effective in 2023.
|
|
|
(8)
|
The effective tax
rate on adjusted net income attributable to Invesco Ltd. is 24.4%
(second quarter 2021: 22.8%; third quarter 2020: 24.2%).
|
|
|
(9)
|
Adjusted diluted EPS
is equal to adjusted net income attributable to Invesco Ltd.
divided by the weighted average number of common and restricted
common shares outstanding. There is no difference between the
calculated earnings per common share amounts presented above and
the calculated earnings per common share amounts under the two
class method.
|
Invesco
Ltd.
|
Quarterly Assets
Under Management
|
|
in
billions
|
Q3-21
|
|
Q2-21
|
|
%
Change
|
|
Q3-20
|
Beginning
Assets
|
$1,525.0
|
|
|
$1,404.1
|
|
|
8.6
|
%
|
|
$1,145.2
|
|
Long-term
inflows
|
91.7
|
|
|
114.4
|
|
|
(19.8)
|
%
|
|
71.9
|
|
Long-term
outflows
|
(78.4)
|
|
|
(83.3)
|
|
|
(5.9)
|
%
|
|
(64.1)
|
|
Net long-term
flows
|
13.3
|
|
|
31.1
|
|
|
(57.2)
|
%
|
|
7.8
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
2.5
|
|
|
120.0
|
%
|
|
7.0
|
|
Net flows in money
market funds
|
2.6
|
|
|
19.8
|
|
|
(86.9)
|
%
|
|
(3.5)
|
|
Total net
flows
|
21.4
|
|
|
53.4
|
|
|
(59.9)
|
%
|
|
11.3
|
|
Reinvested
distributions
|
0.8
|
|
|
0.9
|
|
|
(11.1)
|
%
|
|
1.0
|
|
Market gains and
losses
|
(14.6)
|
|
|
65.6
|
|
|
N/A
|
|
53.0
|
|
Foreign currency
translation
|
(4.0)
|
|
|
1.0
|
|
|
N/A
|
|
7.7
|
|
Ending
Assets
|
$1,528.6
|
|
|
$1,525.0
|
|
|
0.2
|
%
|
|
$1,218.2
|
|
|
|
|
|
|
|
|
|
Ending long-term
AUM
|
$1,193.2
|
|
|
$1,199.0
|
|
|
(0.5)
|
%
|
|
$963.7
|
|
Average long-term
AUM
|
$1,203.6
|
|
|
$1,173.9
|
|
|
2.5
|
%
|
|
$956.3
|
|
Average
AUM
|
$1,540.5
|
|
|
$1,480.2
|
|
|
4.1
|
%
|
|
$1,206.2
|
|
|
|
|
|
|
|
|
|
Gross revenue yield
on AUM (b)
|
48.1 bps
|
|
49.2 bps
|
|
|
|
51.9 bps
|
Gross revenue yield
on AUM before performance fees (b)
|
48.0 bps
|
|
48.9 bps
|
|
|
|
51.9 bps
|
Net revenue yield on
AUM (c)
|
34.6 bps
|
|
35.2 bps
|
|
|
|
36.2 bps
|
Net revenue yield on
AUM before performance fees (c)
|
34.4 bps
|
|
34.8 bps
|
|
|
|
36.0 bps
|
|
|
|
|
|
|
|
|
in
billions
|
Total
AUM
|
|
Active(f)
|
|
Passive(f)
|
June 30,
2021
|
$1,525.0
|
|
|
$1,066.0
|
|
|
$459.0
|
|
Long-term
inflows
|
91.7
|
|
|
60.3
|
|
|
31.4
|
|
Long-term
outflows
|
(78.4)
|
|
|
(53.5)
|
|
|
(24.9)
|
|
Net long-term
flows
|
13.3
|
|
|
6.8
|
|
|
6.5
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
—
|
|
|
5.5
|
|
Net flows in money
market funds
|
2.6
|
|
|
2.6
|
|
|
—
|
|
Total net
flows
|
21.4
|
|
|
9.4
|
|
|
12.0
|
|
Reinvested
distributions
|
0.8
|
|
|
0.8
|
|
|
—
|
|
Market gains and
losses
|
(14.6)
|
|
|
(13.1)
|
|
|
(1.5)
|
|
Foreign currency
translation
|
(4.0)
|
|
|
(3.1)
|
|
|
(0.9)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,060.0
|
|
|
$468.6
|
|
|
|
|
|
|
|
Average
AUM
|
$1,540.5
|
|
|
$1,065.6
|
|
|
$474.9
|
|
Gross revenue yield
on AUM (b)
|
48.1 bps
|
|
61.8 bps
|
|
20.0 bps
|
Net revenue yield on
AUM (c)
|
34.6 bps
|
|
44.7 bps
|
|
12.1 bps
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
June 30,
2021
|
$1,525.0
|
|
|
$1,060.7
|
|
|
$464.3
|
|
Long-term
inflows
|
91.7
|
|
|
62.3
|
|
|
29.4
|
|
Long-term
outflows
|
(78.4)
|
|
|
(60.5)
|
|
|
(17.9)
|
|
Net long-term
flows
|
13.3
|
|
|
1.8
|
|
|
11.5
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
5.7
|
|
|
(0.2)
|
|
Net flows in money
market funds
|
2.6
|
|
|
(0.4)
|
|
|
3.0
|
|
Total net
flows
|
21.4
|
|
|
7.1
|
|
|
14.3
|
|
Reinvested
distributions
|
0.8
|
|
|
0.8
|
|
|
—
|
|
Market gains and
losses
|
(14.6)
|
|
|
(15.5)
|
|
|
0.9
|
|
Foreign currency
translation
|
(4.0)
|
|
|
(1.5)
|
|
|
(2.5)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,051.6
|
|
|
$477.0
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Quarterly Assets
Under Management (continued)
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market (e)
|
|
Alternatives(d)
|
June 30,
2021
|
$1,525.0
|
|
|
$795.5
|
|
|
$317.6
|
|
|
$88.5
|
|
|
$135.7
|
|
|
$187.7
|
|
Long-term
inflows
|
91.7
|
|
|
41.8
|
|
|
27.3
|
|
|
9.5
|
|
|
—
|
|
|
13.1
|
|
Long-term
outflows
|
(78.4)
|
|
|
(42.8)
|
|
|
(16.3)
|
|
|
(8.5)
|
|
|
—
|
|
|
(10.8)
|
|
Net long-term
flows
|
13.3
|
|
|
(1.0)
|
|
|
11.0
|
|
|
1.0
|
|
|
—
|
|
|
2.3
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
5.8
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
Total net
flows
|
21.4
|
|
|
4.8
|
|
|
10.7
|
|
|
1.0
|
|
|
2.6
|
|
|
2.3
|
|
Reinvested
distributions
|
0.8
|
|
|
0.2
|
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Market gains and
losses
|
(14.6)
|
|
|
(12.1)
|
|
|
(1.0)
|
|
|
(3.7)
|
|
|
0.3
|
|
|
1.9
|
|
Foreign currency
translation
|
(4.0)
|
|
|
(2.1)
|
|
|
(0.7)
|
|
|
(0.4)
|
|
|
(0.1)
|
|
|
(0.7)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$786.3
|
|
|
$326.9
|
|
|
$85.5
|
|
|
$138.5
|
|
|
$191.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$1,540.5
|
|
|
$805.8
|
|
|
$322.6
|
|
|
$85.7
|
|
|
$135.2
|
|
|
$191.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA Ex
UK
|
|
U.K
|
June 30,
2021
|
$1,525.0
|
|
|
$1,075.8
|
|
|
$225.6
|
|
|
$161.7
|
|
|
$61.9
|
|
Long-term
inflows
|
91.7
|
|
|
49.7
|
|
|
26.0
|
|
|
13.9
|
|
|
2.1
|
|
Long-term
outflows
|
(78.4)
|
|
|
(44.9)
|
|
|
(16.7)
|
|
|
(12.9)
|
|
|
(3.9)
|
|
Net long-term
flows
|
13.3
|
|
|
4.8
|
|
|
9.3
|
|
|
1.0
|
|
|
(1.8)
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
4.6
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
2.6
|
|
|
2.7
|
|
|
(0.2)
|
|
|
0.1
|
|
|
—
|
|
Total net
flows
|
21.4
|
|
|
12.1
|
|
|
10.0
|
|
|
1.1
|
|
|
(1.8)
|
|
Reinvested
distributions
|
0.8
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Market gains and
losses
|
(14.6)
|
|
|
(8.7)
|
|
|
(4.2)
|
|
|
(2.0)
|
|
|
0.3
|
|
Foreign currency
translation
|
(4.0)
|
|
|
(0.7)
|
|
|
(1.1)
|
|
|
(0.9)
|
|
|
(1.3)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,079.2
|
|
|
$230.3
|
|
|
$159.9
|
|
|
$59.2
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Quarterly Assets
Under Management - Passive (f)
|
|
in
billions
|
Q3-21
|
|
Q2-21
|
|
%
Change
|
|
Q3-20
|
Beginning
Assets
|
$459.0
|
|
|
$397.8
|
|
|
15.4
|
%
|
|
$281.7
|
|
Long-term
inflows
|
31.4
|
|
|
53.3
|
|
|
(41.1)
|
%
|
|
21.9
|
|
Long-term
outflows
|
(24.9)
|
|
|
(24.3)
|
|
|
2.5
|
%
|
|
(15.9)
|
|
Net long-term
flows
|
6.5
|
|
|
29.0
|
|
|
(77.6)
|
%
|
|
6.0
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
2.5
|
|
|
120.0
|
%
|
|
7.0
|
|
Total net
flows
|
12.0
|
|
|
31.5
|
|
|
(61.9)
|
%
|
|
13.0
|
|
Market gains and
losses
|
(1.5)
|
|
|
30.3
|
|
|
N/A
|
|
23.0
|
|
Foreign currency
translation
|
(0.9)
|
|
|
(0.6)
|
|
|
50.0
|
%
|
|
0.3
|
|
Ending
Assets
|
$468.6
|
|
|
$459.0
|
|
|
2.1
|
%
|
|
$318.0
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$273.1
|
|
|
$252.5
|
|
|
8.2
|
%
|
|
$169.4
|
|
Average
AUM
|
$474.9
|
|
|
$431.1
|
|
|
10.2
|
%
|
|
$307.7
|
|
|
|
|
|
|
|
|
|
Gross revenue yield
on AUM (b)
|
20.0 bps
|
|
21.2 bps
|
|
|
|
20.5 bps
|
Gross revenue yield
on AUM before performance fees (b)
|
20.0 bps
|
|
21.2 bps
|
|
|
|
20.5 bps
|
Net revenue yield on
AUM (c)
|
12.1 bps
|
|
13.1 bps
|
|
|
|
11.4 bps
|
Net revenue yield on
AUM before performance fees (c)
|
12.1 bps
|
|
13.1 bps
|
|
|
|
11.4 bps
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
June 30,
2021
|
$459.0
|
|
|
$411.4
|
|
|
$47.6
|
|
Long-term
inflows
|
31.4
|
|
|
26.8
|
|
|
4.6
|
|
Long-term
outflows
|
(24.9)
|
|
|
(22.6)
|
|
|
(2.3)
|
|
Net long-term
flows
|
6.5
|
|
|
4.2
|
|
|
2.3
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
5.7
|
|
|
(0.2)
|
|
Total net
flows
|
12.0
|
|
|
9.9
|
|
|
2.1
|
|
Market gains and
losses
|
(1.5)
|
|
|
(1.7)
|
|
|
0.2
|
|
Foreign currency
translation
|
(0.9)
|
|
|
(0.2)
|
|
|
(0.7)
|
|
September 30,
2021
|
$468.6
|
|
|
$419.4
|
|
|
$49.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market(e)
|
|
Alternatives(d)
|
June 30,
2021
|
$459.0
|
|
|
$383.5
|
|
|
$43.0
|
|
|
$1.1
|
|
|
$—
|
|
|
$31.4
|
|
Long-term
inflows
|
31.4
|
|
|
25.8
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
Long-term
outflows
|
(24.9)
|
|
|
(19.8)
|
|
|
(2.3)
|
|
|
—
|
|
|
—
|
|
|
(2.8)
|
|
Net long-term
flows
|
6.5
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
5.8
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
12.0
|
|
|
11.8
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Market gains and
losses
|
(1.5)
|
|
|
(1.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Foreign currency
translation
|
(0.9)
|
|
|
(0.6)
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
September 30,
2021
|
$468.6
|
|
|
$393.4
|
|
|
$42.2
|
|
|
$1.1
|
|
|
$—
|
|
|
$31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$474.9
|
|
|
$399.4
|
|
|
$42.6
|
|
|
$1.1
|
|
|
$—
|
|
|
$31.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Quarterly Assets
Under Management - Passive(f) (continued)
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA Ex
UK
|
|
U.K
|
June 30,
2021
|
$459.0
|
|
|
$359.5
|
|
|
$32.2
|
|
|
$66.3
|
|
|
$1.0
|
|
Long-term
inflows
|
31.4
|
|
|
20.9
|
|
|
1.7
|
|
|
8.7
|
|
|
0.1
|
|
Long-term
outflows
|
(24.9)
|
|
|
(17.1)
|
|
|
(1.5)
|
|
|
(6.2)
|
|
|
(0.1)
|
|
Net long-term
flows
|
6.5
|
|
|
3.8
|
|
|
0.2
|
|
|
2.5
|
|
|
—
|
|
Net flows in
non-management fee earning AUM (a)
|
5.5
|
|
|
4.6
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
12.0
|
|
|
8.4
|
|
|
1.1
|
|
|
2.5
|
|
|
—
|
|
Market gains and
losses
|
(1.5)
|
|
|
(1.5)
|
|
|
0.2
|
|
|
(0.2)
|
|
|
—
|
|
Foreign currency
translation
|
(0.9)
|
|
|
—
|
|
|
(0.7)
|
|
|
(0.2)
|
|
|
—
|
|
September 30,
2021
|
$468.6
|
|
|
$366.4
|
|
|
$32.8
|
|
|
$68.4
|
|
|
$1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Year-to-Date
Assets Under Management
|
|
in
billions
|
September 30,
2021
|
|
September 30,
2020
|
|
%
Change
|
Beginning
Assets
|
$1,349.9
|
|
|
$1,226.2
|
|
|
10.1
|
%
|
Long-term
inflows
|
326.3
|
|
|
219.3
|
|
|
48.8
|
%
|
Long-term
outflows
|
(257.4)
|
|
|
(244.8)
|
|
|
5.1
|
%
|
Net long-term
flows
|
68.9
|
|
|
(25.5)
|
|
|
N/A
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
(11.0)
|
|
|
N/A
|
Net flows in money
market funds
|
29.7
|
|
|
16.2
|
|
|
83.3
|
%
|
Total net
flows
|
106.7
|
|
|
(20.3)
|
|
|
N/A
|
Reinvested
distributions
|
2.6
|
|
|
3.9
|
|
|
(33.3)
|
%
|
Market gains and
losses
|
75.6
|
|
|
8.0
|
|
|
845.0
|
%
|
Foreign currency
translation
|
(6.2)
|
|
|
0.4
|
|
|
N/A
|
Ending
Assets
|
$1,528.6
|
|
|
$1,218.2
|
|
|
25.5
|
%
|
|
|
|
|
|
|
Average long-term
AUM
|
$1,162.6
|
|
|
$930.3
|
|
|
25.0
|
%
|
Average
AUM
|
$1,471.9
|
|
|
$1,167.1
|
|
|
26.1
|
%
|
|
|
|
|
|
|
Gross revenue yield
on AUM (b)
|
49.2 bps
|
|
53.7 bps
|
|
|
Gross revenue yield
on AUM before performance fees (b)
|
49.0 bps
|
|
53.6 bps
|
|
|
Net revenue yield on
AUM (c)
|
35.2 bps
|
|
37.4 bps
|
|
|
Net revenue yield on
AUM before performance fees (c)
|
34.9 bps
|
|
37.1 bps
|
|
|
|
|
|
|
|
|
in
billions
|
Total
AUM
|
|
Active(f)
|
|
Passive(f)
|
December 31,
2020
|
$1,349.9
|
|
|
$979.3
|
|
|
$370.6
|
|
Long-term
inflows
|
326.3
|
|
|
197.7
|
|
|
128.6
|
|
Long-term
outflows
|
(257.4)
|
|
|
(181.3)
|
|
|
(76.1)
|
|
Net long-term
flows
|
68.9
|
|
|
16.4
|
|
|
52.5
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
—
|
|
|
8.1
|
|
Net flows in money
market funds
|
29.7
|
|
|
29.7
|
|
|
—
|
|
Total net
flows
|
106.7
|
|
|
46.1
|
|
|
60.6
|
|
Reinvested
distributions
|
2.6
|
|
|
2.6
|
|
|
—
|
|
Market gains and
losses
|
75.6
|
|
|
36.4
|
|
|
39.2
|
|
Foreign currency
translation
|
(6.2)
|
|
|
(4.4)
|
|
|
(1.8)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,060.0
|
|
|
$468.6
|
|
|
|
|
|
|
|
Average
AUM
|
$1,471.9
|
|
|
$1,041.0
|
|
|
$430.9
|
|
Gross revenue yield
on AUM (b)
|
49.2 bps
|
|
62.0 bps
|
|
20.7 bps
|
Net revenue yield on
AUM (c)
|
35.2 bps
|
|
44.6 bps
|
|
12.6 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2020
|
$1,349.9
|
|
|
$947.1
|
|
|
$402.8
|
|
Long-term
inflows
|
326.3
|
|
|
232.0
|
|
|
94.3
|
|
Long-term
outflows
|
(257.4)
|
|
|
(199.5)
|
|
|
(57.9)
|
|
Net long-term
flows
|
68.9
|
|
|
32.5
|
|
|
36.4
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
7.5
|
|
|
0.6
|
|
Net flows in money
market funds
|
29.7
|
|
|
3.6
|
|
|
26.1
|
|
Total net
flows
|
106.7
|
|
|
43.6
|
|
|
63.1
|
|
Reinvested
distributions
|
2.6
|
|
|
2.4
|
|
|
0.2
|
|
Market gains and
losses
|
75.6
|
|
|
59.0
|
|
|
16.6
|
|
Foreign currency
translation
|
(6.2)
|
|
|
(0.5)
|
|
|
(5.7)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,051.6
|
|
|
$477.0
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Year-to-Date
Assets Under Management (continued)
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market (e)
|
|
Alternatives(d)
|
December 31,
2020
|
$1,349.9
|
|
|
$689.6
|
|
|
$296.4
|
|
|
$78.9
|
|
|
$108.5
|
|
|
$176.5
|
|
Long-term
inflows
|
326.3
|
|
|
158.6
|
|
|
86.5
|
|
|
40.9
|
|
|
—
|
|
|
40.3
|
|
Long-term
outflows
|
(257.4)
|
|
|
(134.8)
|
|
|
(54.3)
|
|
|
(34.4)
|
|
|
—
|
|
|
(33.9)
|
|
Net long-term
flows
|
68.9
|
|
|
23.8
|
|
|
32.2
|
|
|
6.5
|
|
|
—
|
|
|
6.4
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
7.8
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
29.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.7
|
|
|
—
|
|
Total net
flows
|
106.7
|
|
|
31.6
|
|
|
32.5
|
|
|
6.5
|
|
|
29.7
|
|
|
6.4
|
|
Reinvested
distributions
|
2.6
|
|
|
0.6
|
|
|
1.1
|
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
Market gains and
losses
|
75.6
|
|
|
67.3
|
|
|
(0.9)
|
|
|
(0.2)
|
|
|
0.1
|
|
|
9.3
|
|
Foreign currency
translation
|
(6.2)
|
|
|
(2.8)
|
|
|
(2.2)
|
|
|
—
|
|
|
0.2
|
|
|
(1.4)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$786.3
|
|
|
$326.9
|
|
|
$85.5
|
|
|
$138.5
|
|
|
$191.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$1,471.9
|
|
|
$762.5
|
|
|
$311.5
|
|
|
$86.4
|
|
|
$126.2
|
|
|
$185.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA Ex
UK
|
|
U.K
|
December 31,
2020
|
$1,349.9
|
|
|
$959.9
|
|
|
$171.3
|
|
|
$151.7
|
|
|
$67.0
|
|
Long-term
inflows
|
326.3
|
|
|
163.6
|
|
|
107.8
|
|
|
47.8
|
|
|
7.1
|
|
Long-term
outflows
|
(257.4)
|
|
|
(143.8)
|
|
|
(53.5)
|
|
|
(42.1)
|
|
|
(18.0)
|
|
Net long-term
flows
|
68.9
|
|
|
19.8
|
|
|
54.3
|
|
|
5.7
|
|
|
(10.9)
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
6.3
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
Net flows in money
market funds
|
29.7
|
|
|
25.5
|
|
|
4.3
|
|
|
(0.1)
|
|
|
—
|
|
Total net
flows
|
106.7
|
|
|
51.6
|
|
|
60.4
|
|
|
5.6
|
|
|
(10.9)
|
|
Reinvested
distributions
|
2.6
|
|
|
2.3
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Market gains and
losses
|
75.6
|
|
|
65.5
|
|
|
2.3
|
|
|
4.2
|
|
|
3.6
|
|
Foreign currency
translation
|
(6.2)
|
|
|
(0.1)
|
|
|
(3.8)
|
|
|
(1.6)
|
|
|
(0.7)
|
|
September 30,
2021
|
$1,528.6
|
|
|
$1,079.2
|
|
|
$230.3
|
|
|
$159.9
|
|
|
$59.2
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Year-to-Date
Assets Under Management - Passive (f)
|
|
in
billions
|
September 30,
2021
|
|
September 30,
2020
|
|
%
Change
|
|
Beginning
Assets
|
$370.6
|
|
|
$297.0
|
|
|
24.8
|
%
|
|
Long-term
inflows
|
128.6
|
|
|
72.3
|
|
|
77.9
|
%
|
|
Long-term
outflows
|
(76.1)
|
|
|
(65.6)
|
|
|
16.0
|
%
|
|
Net long-term
flows
|
52.5
|
|
|
6.7
|
|
|
683.6
|
%
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
(11.0)
|
|
|
N/A
|
|
Total net
flows
|
60.6
|
|
|
(4.3)
|
|
|
N/A
|
|
Market gains and
losses
|
39.2
|
|
|
25.2
|
|
|
55.6
|
%
|
|
Foreign currency
translation
|
(1.8)
|
|
|
0.1
|
|
|
N/A
|
|
Ending
Assets
|
$468.6
|
|
|
$318.0
|
|
|
47.4
|
%
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$247.7
|
|
|
$160.8
|
|
|
54.0
|
%
|
|
Average
AUM
|
$430.9
|
|
|
$288.2
|
|
|
49.5
|
%
|
|
|
|
|
|
|
|
|
Gross revenue yield
on AUM (b)
|
20.7 bps
|
|
21.4 bps
|
|
|
|
Gross revenue yield
on AUM before performance fees (b)
|
20.7 bps
|
|
21.4 bps
|
|
|
|
Net revenue yield on
AUM (c)
|
12.6 bps
|
|
12.2 bps
|
|
|
|
Net revenue yield on
AUM before performance fees (c)
|
12.6 bps
|
|
12.2 bps
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2020
|
$370.6
|
|
|
$346.0
|
|
|
$24.6
|
|
Long-term
inflows
|
128.6
|
|
|
102.7
|
|
|
25.9
|
|
Long-term
outflows
|
(76.1)
|
|
|
(71.7)
|
|
|
(4.4)
|
|
Net long-term
flows
|
52.5
|
|
|
31.0
|
|
|
21.5
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
7.5
|
|
|
0.6
|
|
Total net
flows
|
60.6
|
|
|
38.5
|
|
|
22.1
|
|
Market gains and
losses
|
39.2
|
|
|
35.3
|
|
|
3.9
|
|
Foreign currency
translation
|
(1.8)
|
|
|
(0.4)
|
|
|
(1.4)
|
|
September 30,
2021
|
$468.6
|
|
|
$419.4
|
|
|
$49.2
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market(e)
|
|
Alternatives(d)
|
December 31,
2020
|
$370.6
|
|
|
$306.4
|
|
|
$37.0
|
|
|
$1.0
|
|
|
$—
|
|
|
$26.2
|
|
Long-term
inflows
|
128.6
|
|
|
102.7
|
|
|
11.7
|
|
|
0.1
|
|
|
—
|
|
|
14.1
|
|
Long-term
outflows
|
(76.1)
|
|
|
(61.8)
|
|
|
(5.8)
|
|
|
—
|
|
|
—
|
|
|
(8.5)
|
|
Net long-term
flows
|
52.5
|
|
|
40.9
|
|
|
5.9
|
|
|
0.1
|
|
|
—
|
|
|
5.6
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
7.8
|
|
|
0.4
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
60.6
|
|
|
48.7
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
Market gains and
losses
|
39.2
|
|
|
39.4
|
|
|
(0.7)
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
Foreign currency
translation
|
(1.8)
|
|
|
(1.1)
|
|
|
(0.4)
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
September 30,
2021
|
$468.6
|
|
|
$393.4
|
|
|
$42.2
|
|
|
$1.1
|
|
|
$—
|
|
|
$31.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$430.9
|
|
|
$359.4
|
|
|
$40.6
|
|
|
$1.1
|
|
|
$—
|
|
|
$29.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Year-to-Date
Assets Under Management - Passive(f)
(continued)
|
|
By client
domicile: (in billions)
|
Total
|
|
Americas
|
|
Asia
Pacific
|
|
EMEA Ex
UK
|
|
U.K
|
December 31,
2020
|
$370.6
|
|
|
$303.0
|
|
|
$7.9
|
|
|
$58.9
|
|
|
$0.8
|
|
Long-term
inflows
|
128.6
|
|
|
75.8
|
|
|
24.5
|
|
|
27.6
|
|
|
0.7
|
|
Long-term
outflows
|
(76.1)
|
|
|
(51.1)
|
|
|
(3.3)
|
|
|
(21.2)
|
|
|
(0.5)
|
|
Net long-term
flows
|
52.5
|
|
|
24.7
|
|
|
21.2
|
|
|
6.4
|
|
|
0.2
|
|
Net flows in
non-management fee earning AUM (a)
|
8.1
|
|
|
6.4
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
Total net
flows
|
60.6
|
|
|
31.1
|
|
|
22.9
|
|
|
6.4
|
|
|
0.2
|
|
Market gains and
losses
|
39.2
|
|
|
32.3
|
|
|
3.4
|
|
|
3.5
|
|
|
—
|
|
Foreign currency
translation
|
(1.8)
|
|
|
—
|
|
|
(1.4)
|
|
|
(0.4)
|
|
|
—
|
|
September 30,
2021
|
$468.6
|
|
|
$366.4
|
|
|
$32.8
|
|
|
$68.4
|
|
|
$1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
|
Footnotes to the
Assets Under Management Tables
|
|
|
(a)
|
Non-management fee
earning AUM includes non-management fee earning ETFs, UIT and
product leverage.
|
|
|
(b)
|
Gross revenue yield
on AUM is equal to annualized total operating revenues divided by
average AUM, excluding Invesco Great Wall AUM. The average AUM for
Invesco Great Wall in the three and nine months ended
September 30, 2021 was $85.5 billion and $81.1 billion (three
and six months ended June 30, 2021: $81.1 billion, $78.9
billion three and nine months ended September 30, 2020: $51.0
billion and $46.5 billion).
|
|
|
|
It is appropriate to
exclude the average AUM of Invesco Great Wall for purposes of
computing gross revenue yield on AUM, because the revenues
resulting from these AUM are not presented in our operating
revenues. Under U.S. GAAP, our share of the net income of Invesco
Great Wall is recorded as equity in earnings of unconsolidated
affiliates on our Condensed Consolidated Statements of Income.
Gross revenue yield, the most comparable U.S. GAAP-based measure to
net revenue yield, is not considered a meaningful effective fee
rate measure. The numerator of the gross revenue yield measure,
operating revenues, excludes the management fees earned from CIP;
however, the denominator of the measure includes the AUM of these
investment products.
|
|
|
(c)
|
Net revenue yield on
AUM is equal to annualized net revenues divided by average AUM. See
the reconciliations of U.S. GAAP to Non-GAAP Information on pages 7
through 10 of this release for a reconciliation of operating
revenues to net revenues.
|
|
|
(d)
|
The alternatives
asset class includes absolute return, commodities, currencies,
financial structures, global macro, long/short equity, managed
futures, multi-alternatives, private capital - direct, private
capital - fund of funds, private direct real estate, public real
estate securities, senior secured loans and custom
solutions.
|
|
|
(e)
|
Long-term AUM
excludes money market and non-management fee earning AUM. Ending
AUM as of September 30, 2021 includes $138.5 billion in money
market AUM and $196.9 billion in non-management fee earning AUM
(June 30, 2021: $135.7 billion and $190.2 billion,
respectively; September 30, 2020: $109.3 billion and $145.2
billion, respectively).
|
|
|
(f)
|
Passive AUM includes
index-based ETFs, unit investment trusts (UITs), non-fee earning
leverage and other passive mandates. Active AUM is total AUM less
Passive AUM.
|
Invesco
Ltd.
|
Investment
Capabilities Performance Overview
|
|
|
Benchmark
Comparison
|
Peer Group
Comparison
|
% of AUM in Top
Half of Benchmark
|
% of AUM in Top
Half of Peer Group
|
Equities
(1)
|
1yr
|
3yr
|
5yr
|
10yr
|
1yr
|
3yr
|
5yr
|
10yr
|
U.S.
Core (4%)
|
16
|
%
|
18
|
%
|
14
|
%
|
14
|
%
|
5
|
%
|
18
|
%
|
13
|
%
|
1
|
%
|
U.S.
Growth (7%)
|
57
|
%
|
45
|
%
|
52
|
%
|
52
|
%
|
47
|
%
|
100
|
%
|
88
|
%
|
52
|
%
|
U.S.
Value (7%)
|
56
|
%
|
7
|
%
|
51
|
%
|
50
|
%
|
57
|
%
|
6
|
%
|
35
|
%
|
33
|
%
|
Sector (2%)
|
20
|
%
|
67
|
%
|
96
|
%
|
81
|
%
|
64
|
%
|
65
|
%
|
64
|
%
|
65
|
%
|
UK
(1%)
|
31
|
%
|
29
|
%
|
35
|
%
|
42
|
%
|
25
|
%
|
28
|
%
|
23
|
%
|
28
|
%
|
Canadian (<1%)
|
76
|
%
|
64
|
%
|
64
|
%
|
35
|
%
|
76
|
%
|
64
|
%
|
41
|
%
|
35
|
%
|
Asian (3%)
|
44
|
%
|
77
|
%
|
84
|
%
|
94
|
%
|
15
|
%
|
33
|
%
|
54
|
%
|
71
|
%
|
Continental
European (2%)
|
78
|
%
|
11
|
%
|
18
|
%
|
90
|
%
|
69
|
%
|
6
|
%
|
26
|
%
|
56
|
%
|
Global (7%)
|
79
|
%
|
58
|
%
|
80
|
%
|
80
|
%
|
62
|
%
|
13
|
%
|
81
|
%
|
89
|
%
|
Global Ex U.S. and
Emerging Markets (13%)
|
16
|
%
|
90
|
%
|
88
|
%
|
90
|
%
|
16
|
%
|
77
|
%
|
68
|
%
|
71
|
%
|
Fixed Income
(1)
|
|
|
|
|
|
|
|
|
Money
Market (17%)
|
94
|
%
|
99
|
%
|
99
|
%
|
100
|
%
|
78
|
%
|
77
|
%
|
78
|
%
|
99
|
%
|
U.S. Fixed
Income (12%)
|
96
|
%
|
87
|
%
|
95
|
%
|
95
|
%
|
88
|
%
|
83
|
%
|
90
|
%
|
91
|
%
|
Global Fixed
Income (5%)
|
90
|
%
|
84
|
%
|
95
|
%
|
98
|
%
|
64
|
%
|
71
|
%
|
80
|
%
|
85
|
%
|
Stable
Value (5%)
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
97
|
%
|
97
|
%
|
100
|
%
|
100
|
%
|
Other
(1)
|
|
|
|
|
|
|
|
|
Alternatives (7%)
|
75
|
%
|
48
|
%
|
51
|
%
|
41
|
%
|
61
|
%
|
51
|
%
|
47
|
%
|
46
|
%
|
Balanced (8%)
|
67
|
%
|
90
|
%
|
64
|
%
|
66
|
%
|
59
|
%
|
58
|
%
|
90
|
%
|
94
|
%
|
|
|
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.
|
|
|
|
Data as of September
30, 2021. AUM measured in the one, three, five and ten year
quartile rankings represents 50%, 49%, 48% and 43% of total Invesco
AUM, respectively, and AUM measured versus benchmark on a one,
three, five and ten year basis represents 61%, 59%, 57% and 52% of
total Invesco AUM. Peer group rankings are sourced from a
widely-used third party ranking agency in each fund's market (e.g.,
Morningstar, IA, Lipper, eVestment, Mercer, Galaxy, SITCA, Value
Research) and asset-weighted in USD. Rankings are as of prior
quarter-end for most institutional products and prior month-end for
Australian retail funds due to their late release by third parties.
Rankings are calculated against all funds in each peer group.
Rankings for the primary share class of the most representative
fund in each composite are applied to all products within each
composite. Performance assumes the reinvestment of dividends. Past
performance is not indicative of future results and may not reflect
an investor's experience.
|
|
|
(1)
|
Numbers in
parenthesis reflect AUM for each investment product (see Note above
for exclusions) as a percentage of the total AUM for the 5 year
peer group ($730.4 billion).
|
Invesco
Ltd.
|
Supplemental
Information (1)
|
|
|
For the three
months ended
September 30,
2021
|
|
For the three
months ended
September 30,
2020
|
Cash flow
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP cash
and cash equivalents,
beginning of period
|
$
|
1,737.1
|
|
|
$
|
404.1
|
|
|
$
|
1,333.0
|
|
|
$
|
1,271.2
|
|
|
$
|
284.1
|
|
|
$
|
987.1
|
|
Cash flows from
operating activities
|
601.0
|
|
|
(20.8)
|
|
|
621.8
|
|
|
401.8
|
|
|
(46.4)
|
|
|
448.2
|
|
Cash flows from
investing activities
|
(364.4)
|
|
|
(350.2)
|
|
|
(14.2)
|
|
|
(86.0)
|
|
|
(69.2)
|
|
|
(16.8)
|
|
Cash flows from
financing activities
|
359.1
|
|
|
507.6
|
|
|
(148.5)
|
|
|
(301.6)
|
|
|
73.2
|
|
|
(374.8)
|
|
Increase/(decrease)
in cash and cash equivalents
|
595.7
|
|
|
136.6
|
|
|
459.1
|
|
|
14.2
|
|
|
(42.4)
|
|
|
56.6
|
|
Foreign exchange
movement on cash and cash
equivalents
|
(23.3)
|
|
|
(4.4)
|
|
|
(18.9)
|
|
|
35.3
|
|
|
12.4
|
|
|
22.9
|
|
Net cash inflows
(outflows) upon
consolidation/deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
—
|
|
Invesco and CIP cash
and cash equivalents, end of
the period (2)
|
$
|
2,309.5
|
|
|
$
|
536.3
|
|
|
$
|
1,773.2
|
|
|
$
|
1,320.6
|
|
|
$
|
254.0
|
|
|
$
|
1,066.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
September 30,
2021
|
|
For the nine
months ended
September 30,
2020
|
Cash flow
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Excluding
CIP
|
Invesco and CIP cash,
cash equivalents and
restricted cash, beginning of period (2)
|
$
|
1,839.3
|
|
|
$
|
301.7
|
|
|
$
|
1,537.6
|
|
|
$
|
1,701.2
|
|
|
$
|
652.2
|
|
|
$
|
1,049.0
|
|
Cash flows from
operating activities
|
1,081.8
|
|
|
(141.2)
|
|
|
1,223.0
|
|
|
662.7
|
|
|
(54.2)
|
|
|
716.9
|
|
Cash flows from
investing activities
|
(579.4)
|
|
|
(510.5)
|
|
|
(68.9)
|
|
|
(829.0)
|
|
|
(756.7)
|
|
|
(72.3)
|
|
Cash flows from
financing activities
|
14.2
|
|
|
904.1
|
|
|
(889.9)
|
|
|
(230.3)
|
|
|
391.3
|
|
|
(621.6)
|
|
Increase/(decrease)
in cash and cash equivalents
|
516.6
|
|
|
252.4
|
|
|
264.2
|
|
|
(396.6)
|
|
|
(419.6)
|
|
|
23.0
|
|
Foreign exchange
movement on cash and cash
equivalents
|
(37.7)
|
|
|
(9.1)
|
|
|
(28.6)
|
|
|
6.9
|
|
|
12.3
|
|
|
(5.4)
|
|
Net cash inflows
(outflows) upon
consolidation/deconsolidation of CIP
|
(8.7)
|
|
|
(8.7)
|
|
|
—
|
|
|
9.1
|
|
|
9.1
|
|
|
—
|
|
Invesco and CIP cash
and cash equivalents, end of
the period (2)
|
$
|
2,309.5
|
|
|
$
|
536.3
|
|
|
$
|
1,773.2
|
|
|
$
|
1,320.6
|
|
|
$
|
254.0
|
|
|
$
|
1,066.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These tables include
non-GAAP presentations. Cash held by CIP is not available for
use by Invesco. Additionally, there is no recourse to Invesco
for CIP debt. The cash flows of CIP do not form part of the
company's cash flow management processes, nor do they form part of
the company's significant liquidity evaluations and decisions.
Policyholder assets and liabilities are equal and offsetting and
have no impact on Invesco's shareholder's equity. The impact
of cash inflows/outflows from policyholder assets and liabilities
are reflected within cash flows from operating activities as
changes in receivable and/or payables, as applicable.
|
|
|
(2)
|
The beginning period
cash excluding CIP for nine months ended September 30, 2021
includes restricted cash of $129.2 million (September 30,
2020: none). There was no restricted cash at the end of the period
for the three and nine months ended September 30, 2021 and
2020.
|
Invesco
Ltd.
|
Supplemental
Information(1)
|
|
|
As of September
30, 2021
|
|
As of December 31,
2020
|
Balance Sheet
information
$ in
millions
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Impact of
Policyholders
|
|
As
Adjusted
|
|
U.S.
GAAP
|
|
Impact of
CIP
|
|
Impact of
Policyholders
|
|
As
Adjusted
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,773.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,773.2
|
|
|
$
|
1,408.4
|
|
|
—
|
|
|
—
|
|
|
$
|
1,408.4
|
|
Unsettled fund
receivables
|
237.6
|
|
|
—
|
|
|
—
|
|
|
237.6
|
|
|
109.4
|
|
|
—
|
|
|
—
|
|
|
109.4
|
|
Investments
|
906.4
|
|
|
(445.4)
|
|
|
—
|
|
|
1,351.8
|
|
|
826.8
|
|
|
(421.4)
|
|
|
—
|
|
|
1,248.2
|
|
Investments and other
assets of CIP
|
9,197.9
|
|
|
9,197.9
|
|
|
—
|
|
|
—
|
|
|
8,085.5
|
|
|
8,085.5
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents of CIP
|
536.3
|
|
|
536.3
|
|
|
—
|
|
|
—
|
|
|
301.7
|
|
|
301.7
|
|
|
—
|
|
|
—
|
|
Assets held for
policyholders
|
2,232.2
|
|
|
—
|
|
|
2,232.2
|
|
|
—
|
|
|
7,582.1
|
|
|
—
|
|
|
7,582.1
|
|
|
—
|
|
Goodwill and
intangible assets, net
|
16,124.8
|
|
|
—
|
|
|
—
|
|
|
16,124.8
|
|
|
16,221.9
|
|
|
—
|
|
|
—
|
|
|
16,221.9
|
|
Other assets
(2)
|
1,805.5
|
|
|
(5.7)
|
|
|
—
|
|
|
1,811.2
|
|
|
1,968.3
|
|
|
(5.1)
|
|
|
—
|
|
|
1,973.4
|
|
Total
assets
|
32,813.9
|
|
|
9,283.1
|
|
|
2,232.2
|
|
|
21,298.6
|
|
|
36,504.1
|
|
|
7,960.7
|
|
|
7,582.1
|
|
|
20,961.3
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt of
CIP
|
7,224.5
|
|
|
7,224.5
|
|
|
—
|
|
|
—
|
|
|
6,714.1
|
|
|
6,714.1
|
|
|
—
|
|
|
—
|
|
Other liabilities of
CIP
|
864.9
|
|
|
864.9
|
|
|
—
|
|
|
—
|
|
|
588.6
|
|
|
588.6
|
|
|
—
|
|
|
—
|
|
Policyholder
payables
|
2,232.2
|
|
|
—
|
|
|
2,232.2
|
|
|
—
|
|
|
7,582.1
|
|
|
—
|
|
|
7,582.1
|
|
|
—
|
|
Unsettled fund
payables
|
237.2
|
|
|
—
|
|
|
—
|
|
|
237.2
|
|
|
98.4
|
|
|
—
|
|
|
—
|
|
|
98.4
|
|
Long-term
debt
|
2,084.5
|
|
|
—
|
|
|
—
|
|
|
2,084.5
|
|
|
2,082.6
|
|
|
—
|
|
|
—
|
|
|
2,082.6
|
|
Other liabilities
(3)
|
3,896.0
|
|
|
0.1
|
|
|
—
|
|
|
3,895.9
|
|
|
4,417.6
|
|
|
—
|
|
|
—
|
|
|
4,417.6
|
|
Total
liabilities
|
16,539.3
|
|
|
8,089.5
|
|
|
2,232.2
|
|
|
6,217.6
|
|
|
21,483.4
|
|
|
7,302.7
|
|
|
7,582.1
|
|
|
6,598.6
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
attributable to Invesco Ltd.
|
15,080.1
|
|
|
(0.1)
|
|
|
—
|
|
|
15,080.2
|
|
|
14,361.8
|
|
|
(0.1)
|
|
|
—
|
|
|
14,361.9
|
|
Noncontrolling
interests (4)
|
1,194.5
|
|
|
1,193.7
|
|
|
—
|
|
|
0.8
|
|
|
658.9
|
|
|
658.1
|
|
|
—
|
|
|
0.8
|
|
Total
equity
|
16,274.6
|
|
|
1,193.6
|
|
|
—
|
|
|
15,081.0
|
|
|
15,020.7
|
|
|
658.0
|
|
|
—
|
|
|
14,362.7
|
|
Total liabilities and
equity
|
$
|
32,813.9
|
|
|
$
|
9,283.1
|
|
|
$
|
2,232.2
|
|
|
$
|
21,298.6
|
|
|
$
|
36,504.1
|
|
|
$
|
7,960.7
|
|
|
$
|
7,582.1
|
|
|
$
|
20,961.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These tables include
non-GAAP presentations. Cash held by CIP is not available for
use by Invesco. Additionally, there is no recourse to Invesco
for CIP debt. The cash flows of CIP do not form part of the
company's cash flow management processes, nor do they form part of
the company's significant liquidity evaluations and decisions.
Policyholder assets and liabilities are equal and offsetting and
have no impact on Invesco's shareholder's equity. The impact
of cash inflows/outflows from policyholder assets and liabilities
are reflected within cash flows from operating activities as
changes in receivable and/or payables, as applicable.
|
(2)
|
Amounts include
restricted cash, accounts receivable, prepaid assets, property,
equipment and software, right-of-use asset, and other
assets.
|
(3)
|
Amounts include
accrued compensation and benefits, accounts payable and accrued
expenses, lease liability, and deferred tax liabilities.
|
(4)
|
Amounts include
redeemable noncontrolling interests in consolidated entities and
equity attributable to nonredeemable noncontrolling interests in
consolidated entities.
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multimedia:https://www.prnewswire.com/news-releases/invesco-reports-results-for-the-three-months-ended-september-30-2021-301408331.html
SOURCE Invesco Ltd.