ATLANTA, April 30, 2015
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the three months ended March 31,
2015.
"Invesco continues to provide strong, long-term investment
performance to our clients, which contributed to long-term net
inflows of $10.3 billion during the
first quarter," said Martin L.
Flanagan, president and CEO of Invesco Ltd. "By
focusing on delivering excellent outcomes to our clients, we
achieved strong flows across our institutional and retail channels,
and the highest active flows in two years. Reflecting
continued confidence in the fundamentals of our business, we are
raising our dividend 8% to 27 cents
per share."
|
Q1-15
|
|
Q4-14
|
|
Q1-15 vs.
Q4-14
|
|
Q1-14
|
|
Q1-15 vs.
Q1-14
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$917.5
|
m
|
|
$905.8
|
m
|
|
1.3
|
%
|
|
$887.8
|
m
|
|
3.3
|
%
|
|
|
Operating
income
|
$374.4
|
m
|
|
$373.1
|
m
|
|
0.3
|
%
|
|
$363.0
|
m
|
|
3.1
|
%
|
|
|
Operating
margin
|
40.8
|
%
|
|
41.2
|
%
|
|
|
|
40.9
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$272.1
|
m
|
|
$272.6
|
m
|
|
(0.2)%
|
|
|
$261.6
|
m
|
|
4.0
|
%
|
|
|
Diluted
EPS
|
$0.63
|
|
|
$0.63
|
|
|
—
|
%
|
|
$0.60
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures(2)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,291.6
|
m
|
|
$1,276.7
|
m
|
|
1.2
|
%
|
|
$1,269.5
|
m
|
|
1.7
|
%
|
|
|
Operating
income
|
$338.1
|
m
|
|
$348.2
|
m
|
|
(2.9)%
|
|
|
$244.3
|
m
|
|
38.4
|
%
|
|
|
Operating
margin
|
26.2
|
%
|
|
27.3
|
%
|
|
|
|
19.2
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$259.6
|
m
|
|
$269.8
|
m
|
|
(3.8)%
|
|
|
$187.8
|
m
|
|
38.2
|
%
|
|
|
Diluted
EPS
|
$0.60
|
|
|
$0.62
|
|
|
(3.2)%
|
|
|
$0.43
|
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$798.3
|
bn
|
|
$792.4
|
bn
|
|
0.7
|
%
|
|
$787.3
|
bn
|
|
1.4
|
%
|
|
|
Average
AUM
|
$795.4
|
bn
|
|
$789.8
|
bn
|
|
0.7
|
%
|
|
$779.6
|
bn
|
|
2.0
|
%
|
|
(1) The adjusted financial measures are all non-GAAP
financial measures. See the information on pages 9 through 11 for a
reconciliation to their most directly comparable U.S. GAAP measures
and the notes beginning on page 18 for other important
disclosures.
(2) U.S. GAAP measures include the results of
discontinued operations.
Assets Under Management
Total assets under management (AUM) at March 31, 2015, were
$798.3 billion (December 31,
2014: $792.4 billion), an increase of
$5.9 billion during the first
quarter. Total net inflows were $1.7
billion for the first quarter, as detailed below:
|
Summary of net
flows (in billions)
|
|
Q1-15
|
|
Q4-14
|
|
Q1-14
|
|
Active
|
|
$6.8
|
|
$0.9
|
|
$3.2
|
|
Passive
|
|
3.5
|
|
1.6
|
|
3.3
|
|
Long-term net
flows
|
|
10.3
|
|
2.5
|
|
6.5
|
|
Invesco PowerShares
QQQ
|
|
(2.6)
|
|
(3.2)
|
|
(1.3)
|
|
Money
market
|
|
(6.0)
|
|
—
|
|
(6.1)
|
|
Total net
flows
|
|
$1.7
|
|
($0.7)
|
|
($0.9)
|
|
|
|
|
|
|
|
Net market gains led to a $14.4
billion increase in AUM during the first quarter, compared
to a $10.5 billion increase in the
fourth quarter 2014. Foreign exchange rate movements led to a
$9.5 billion decrease in AUM during
the first quarter, compared to a $7.0
billion decrease in the fourth quarter 2014. Average AUM
during the first quarter were $795.4
billion, compared to $789.8
billion for the fourth quarter 2014, an increase of 0.7%.
Further analysis is included in the supplementary schedules to this
release.
Earnings Summary
The company is presenting both U.S. GAAP earnings information
and non-GAAP earnings information in this release. The company
believes that the additional disclosure of non-GAAP earnings
information provides further transparency into the business on an
ongoing operations basis and allows more appropriate comparisons
with our industry peers. Management uses these non-GAAP performance
measures to evaluate the business, and they are consistent with
internal management reporting. These measures are described more
fully in the company's Forms 10-K. Non-GAAP measures should not be
considered as substitutes for any measures derived in accordance
with U.S. GAAP and may not be comparable to other similarly titled
measures of other companies.
Non-GAAP Earnings
This section discusses the company's first quarter 2015 non-GAAP
financial information, as compared to the fourth quarter 2014. The
phrase "as adjusted" is used in the following earnings discussion
to identify non-GAAP information, together with the non-GAAP
financial measures of net revenues, adjusted operating margin,
adjusted net income attributable to Invesco Ltd. and adjusted
diluted EPS. The most directly comparable U.S. GAAP items are
reconciled to these non-GAAP items on pages 9 through 11 of this
release.
Net revenues increased by $11.7
million (1.3%) to $917.5
million in the first quarter, from $905.8 million in the fourth quarter 2014. The
change was principally due to increased performance fees. Foreign
exchange rate changes decreased first quarter net revenues by
$20.9 million compared to the fourth
quarter 2014.
Investment management fees, as adjusted, decreased $9.3 million (0.9%) to $1,023.6 million in the first quarter, from
$1,032.9 million in the fourth
quarter 2014. The decrease reflects the two fewer days in the first
quarter compared to the fourth quarter 2014, together with a lower
average fee rate as a result of the impact of changes in foreign
exchange rates on the AUM product mix. The decrease was
partly offset by higher average AUM. Foreign exchange rate changes
decreased first quarter management fees by $26.7 million when compared to fourth quarter
2014.
Service and distribution fees, as adjusted, decreased
$4.3 million (2.0%) to $213.4 million in the first quarter, from
$217.7 million in the fourth quarter
2014. The decrease in service and distribution fees also
reflects the lower day-count in the first quarter compared to the
fourth quarter. Foreign exchange rate changes decreased first
quarter service and distribution fees by $0.7 million when compared to fourth quarter
2014.
Performance fees, as adjusted, were $51.7
million in the first quarter, compared to $19.0 million in the fourth quarter 2014. The
first quarter performance fees included $35.3 million generated from real estate and
$10.1 million generated by the U.K.
investment teams. The fourth quarter 2014 performance fees
included $9.6 million generated from
real estate with the remainder from a variety of other investment
capabilities. Foreign exchange rate changes decreased first
quarter performance fees by $0.6
million when compared to the fourth quarter 2014.
Other revenues, as adjusted, decreased by $2.9 million (8.5%) to $31.2 million in the first quarter, compared to
$34.1 million in the fourth quarter
2014, due to decreased transaction fees from real estate fund
activities. Foreign exchange rate changes decreased other revenues
by $0.2 million in the first quarter
when compared to the fourth quarter 2014.
Third-party distribution, service and advisory expenses, as
adjusted, increased by $4.5 million
(1.1%) to $402.4 million in the first
quarter from $397.9 million in the
fourth quarter 2014, consistent with the revenues derived from the
related retail AUM. Foreign exchange rate changes decreased
third-party distribution, service and advisory expenses by
$7.3 million in the first quarter
when compared to the fourth quarter 2014.
Total operating expenses, as adjusted, increased by $10.4 million (2.0%) to $543.1 million in the first quarter from
$532.7 million in the fourth quarter
2014. Foreign exchange rate changes decreased first quarter
operating expenses by $11.2 million
when compared to the fourth quarter 2014.
Employee compensation expenses, as adjusted, increased by
$15.7 million (4.5%) to $362.7 million in the first quarter, from
$347.0 million in the fourth quarter
2014 primarily due to a seasonal increase in payroll tax,
additional variable compensation associated with the higher
performance fees, and one month of higher base salaries that were
effective from March 1. Foreign
exchange rate changes decreased first quarter employee compensation
expenses by $7.3 million when
compared to the fourth quarter 2014.
Marketing expenses, as adjusted, decreased by $5.6 million (17.0%) to $27.4 million in the first quarter, from
$33.0 million in the fourth quarter
2014 due to reduced advertising. Foreign exchange rate changes
decreased first quarter marketing expenses by $0.7 million when compared to the fourth quarter
2014.
Property, office and technology expenses, as adjusted, increased
$2.2 million (2.9%) to $77.8 million in the first quarter, from
$75.6 million in the fourth quarter
2014. The increase reflects higher outsourced administration costs
in the first quarter compared to the fourth quarter. Foreign
exchange rate changes decreased first quarter property, office and
technology expenses by $1.3 million
when compared to the fourth quarter 2014.
General and administrative expenses, as adjusted, decreased
$1.9 million (2.5%) to $75.2 million in the first quarter, from
$77.1 million in the fourth quarter
2014. Foreign exchange rate changes decreased first quarter
general and administrative expenses by $1.9
million when compared to the fourth quarter 2014.
Non-operating other income and expenses, as adjusted, included
equity in earnings from investments of $7.5
million in the first quarter, compared to $1.2 million in the fourth quarter 2014. Other
gains and losses, net in the first quarter were a loss of
$2.7 million compared to a fourth
quarter 2014 gain of $5.9 million.
Separately, other income of consolidated sponsored investment
products (CSIP) was a gain of $9.4
million in the first quarter, of which $4.0 million is attributable to noncontrolling
interests. The fourth quarter 2014 included a CSIP gain of
$1.0 million.
The adjusted effective tax rate increased to 26.3% for the first
quarter, from 26.1% for the fourth quarter 2014.
U.S. GAAP Earnings
This section comments on significant items that have impacted
the company's first quarter 2015 results as presented in accordance
with U.S. GAAP.
Operating revenues increased 1.2% to $1,291.6 million in the first quarter, from
$1,276.7 million in the fourth
quarter 2014. Operating expenses increased by 2.7% to $953.5 million in the first quarter, from
$928.5 million in the fourth quarter
2014.
Operating revenues increased 1.7% to $1,291.6 million in the first quarter, from
$1,269.5 million in the first quarter
2014. Operating expenses decreased by 7.0% to $953.5 million in the first quarter, from
$1,025.2 million in the first quarter
2014.
Operating expenses for first quarter 2014 included a charge of
£18.6 million ($31.1 million) in
respect of the penalty under a settlement of an enforcement
proceeding reached with the U.K. Financial Conduct Authority (FCA).
This charge, together with settlement-related legal costs of
$0.5 million, was recorded in general
and administrative expenses and reduced diluted EPS by $0.07 for the first quarter 2014.
During the first quarter 2014 the company recorded a business
optimization initiative charges of $43.0
million in operating expenses that included $35.8 million associated with vacating leased
properties and $7.2 million of staff
severance. Separately, general and administrative expenses for the
first quarter 2014 included a $5.3
million fund reimbursement settlement cost associated with
historical management fees. After allowing for taxation, these
items reduced first quarter 2014 diluted earnings per share by
$0.09.
The effective tax rate on continuing operations decreased to
26.3% for the first quarter, from 30.5% for the fourth quarter 2014
and 29.9% for the first quarter 2014. See note 10 on page 21 for
further details.
Balance Sheet and Cash Flow Statement Presentation
The company is presenting in this release both a U.S. GAAP
balance sheet and balance sheet information excluding consolidated
investment products (CIP), along with a U.S. GAAP statement of cash
flows and cash flow statement information excluding CIP. The
information presented excluding CIP is a non-GAAP presentation.
Balance sheet and cash flow statement information before and after
the consolidation of investment products are reconciled on pages 14
and 17, respectively.
The company believes that, by excluding the consolidation of
investment products, the non-GAAP balance sheet and cash flow
statement information provides a more representative presentation
of our financial risks and the company's cash and debt positions,
allowing more appropriate comparisons with our industry peers.
Management uses these non-GAAP presentations to evaluate the
business, and the presentations are consistent with internal
management reporting. As demonstrated by the selected balance sheet
data that follows, inclusion of the long-term debt of CIP within
liquidity measures, such as debt-to-equity ratios, causes the
company to appear to be significantly more indebted than is
actually the case.
Balance Sheets and Capital Management
Selected balance sheet information is reflected in the table
below:
|
|
Excluding CIP
(Non-GAAP)(1)
|
|
Including CIP
(U.S. GAAP)
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March
31,
2015
|
|
December 31,
2014
|
|
in
millions
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,219.7
|
|
|
$1,514.2
|
|
|
$1,219.7
|
|
|
$1,514.2
|
|
|
Investments of
CIP
|
|
—
|
|
|
—
|
|
|
6,198.0
|
|
|
5,762.8
|
|
|
Total
assets(1)
|
|
$15,380.0
|
|
|
$14,233.1
|
|
|
$21,961.2
|
|
|
$20,462.5
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,600.6
|
|
|
1,589.3
|
|
|
1,600.6
|
|
|
1,589.3
|
|
|
Debt of
CIP
|
|
—
|
|
|
—
|
|
|
5,479.7
|
|
|
5,149.6
|
|
|
Long-term debt /
Long-term debt plus CIP debt
|
|
1,600.6
|
|
|
1,589.3
|
|
|
7,080.3
|
|
|
6,738.9
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities(1)
|
|
$7,120.4
|
|
|
$5,746.7
|
|
|
$12,920.8
|
|
|
$11,177.2
|
|
|
|
|
|
|
|
|
|
|
|
Total permanent
equity(1)
|
|
$8,092.0
|
|
|
$8,320.9
|
|
|
$8,872.8
|
|
|
$9,119.8
|
|
|
|
|
|
|
|
|
|
|
|
Debt/Equity %
(1) (2)
|
|
19.8
|
%
|
|
19.1
|
%
|
|
79.8
|
%
|
|
73.9
|
%
|
(1) The balance sheet line items excluding CIP are
non-GAAP financial measures. See the reconciliation information on
page 14 for balance sheet information before and after the
consolidation of investment products.
(2) The debt/equity ratio excluding CIP is a
non-GAAP financial measure. The debt/equity ratio is calculated as
long-term debt divided by total permanent equity for the balance
sheet information excluding CIP and long-term debt plus debt of CIP
divided by total permanent equity for the balance sheet including
CIP.
As of March 31, 2015, the company's cash and cash
equivalents were $1,219.7 million,
with long-term debt of $1,600.6
million. The credit facility balance was $11.2 million at March 31, 2015, compared to
zero at December 31, 2014.
Dividends paid in the first quarter were $108.0 million. Today the company is announcing a
first-quarter cash dividend of 27.0
cents per share representing an 8.0% increase. The dividend
is payable on June 5, 2015, to shareholders of record at the
close of business on May 15, 2015, with an ex-dividend date of
May 13, 2015.
During the first quarter the company repurchased $76.6 million of its common shares on the open
market, representing 2.0 million shares at a weighted average share
price of $39.09.
Headcount
As of March 31, 2015, the company had 6,360 employees,
compared to 6,264 employees as of December 31, 2014.
Invesco Ltd. is a leading independent global investment
management firm, dedicated to helping investors worldwide achieve
their financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our clients
around the world. Operating in more than 20 countries, the firm is
listed on the New York Stock Exchange under the symbol IVZ.
Additional information is available at www.invesco.com.
Members of the investment community and general public are
invited to listen to the conference call today, April 30, 2015, at 9:00
a.m. ET by dialing one of the following numbers:
1-866-617-1526 for U.S. and Canadian callers or 1-210-795-0624 for
international callers and use the passcode number 489. An audio
replay of the conference call will be available until Thursday, May 14, 2015 at 5:00 p.m. ET by calling 1-888-566-0573 for U.S.
and Canadian callers or 1-203-369-3055 for international callers. A
presentation highlighting the company's performance will be
available during a live Webcast and on Invesco's Website at
www.invesco.com.
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, acquisitions and divestitures, debt and our
ability to obtain additional financing or make payments, regulatory
developments, demand for and pricing of our products and other
aspects of our business or general economic conditions. In
addition, words such as "believes," "expects," "anticipates,"
"intends," "plans," "estimates," "projects," "forecasts," and
future or conditional verbs such as "will," "may," "could,"
"should," and "would" as well as any other statement that
necessarily depends on future events, are intended to identify
forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. Although we make such
statements based on assumptions that we believe to be reasonable,
there can be no assurance that actual results will not differ
materially from our expectations. We caution investors not to rely
unduly on any forward-looking statements and urge you to carefully
consider the risks described in our most recent Form 10-K and
subsequent Forms 10-Q, filed with the Securities and Exchange
Commission. You may obtain these reports from the SEC's website at
www.sec.gov. We expressly disclaim any obligation to update the
information in any public disclosure if any forward-looking
statement later turns out to be inaccurate.
|
Invesco Ltd.
Non-GAAP Condensed Consolidated Income Statement Information
(Unaudited, in millions, other than per share amounts, headcount
and AUM)
|
|
|
Q1-15
|
|
Q4-14
|
|
%
Change
|
|
Q1-14
|
|
%
Change
|
|
Adjusted
revenues:
|
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$1,023.6
|
|
|
$1,032.9
|
|
|
(0.9)
|
%
|
|
$989.0
|
|
|
3.5
|
%
|
|
Service and
distribution fees
|
213.4
|
|
|
217.7
|
|
|
(2.0)
|
%
|
|
238.6
|
|
|
(10.6)
|
%
|
|
Performance
fees
|
51.7
|
|
|
19.0
|
|
|
172.1
|
%
|
|
33.6
|
|
|
53.9
|
%
|
|
Other
|
31.2
|
|
|
34.1
|
|
|
(8.5)
|
%
|
|
35.7
|
|
|
(12.6)
|
%
|
|
Third-party
distribution, service and advisory
|
(402.4)
|
|
|
(397.9)
|
|
|
1.1
|
%
|
|
(409.1)
|
|
|
(1.6)
|
%
|
|
Net
revenues
|
917.5
|
|
|
905.8
|
|
|
1.3
|
%
|
|
887.8
|
|
|
3.3
|
%
|
|
Adjusted operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
362.7
|
|
|
347.0
|
|
|
4.5
|
%
|
|
353.1
|
|
|
2.7
|
%
|
|
Marketing
|
27.4
|
|
|
33.0
|
|
|
(17.0)
|
%
|
|
24.2
|
|
|
13.2
|
%
|
|
Property, office
and technology
|
77.8
|
|
|
75.6
|
|
|
2.9
|
%
|
|
77.7
|
|
|
0.1
|
%
|
|
General and
administrative
|
75.2
|
|
|
77.1
|
|
|
(2.5)
|
%
|
|
69.8
|
|
|
7.7
|
%
|
|
Total adjusted
operating expenses
|
543.1
|
|
|
532.7
|
|
|
2.0
|
%
|
|
524.8
|
|
|
3.5
|
%
|
|
Adjusted operating
income
|
374.4
|
|
|
373.1
|
|
|
0.3
|
%
|
|
363.0
|
|
|
3.1
|
%
|
|
Adjusted other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
7.5
|
|
|
1.2
|
|
|
525.0
|
%
|
|
3.2
|
|
|
134.4
|
%
|
|
Interest and
dividend income
|
4.8
|
|
|
5.5
|
|
|
(12.7)
|
%
|
|
4.2
|
|
|
14.3
|
%
|
|
Interest
expense
|
(18.7)
|
|
|
(18.1)
|
|
|
3.3
|
%
|
|
(18.7)
|
|
|
—
|
%
|
|
Other gains and
losses, net
|
(2.7)
|
|
|
5.9
|
|
|
N/A
|
|
2.5
|
|
|
N/A
|
|
Other
income/(expense) of CSIP, net
|
9.4
|
|
|
1.0
|
|
|
840.0
|
%
|
|
8.2
|
|
|
14.6
|
%
|
|
Adjusted income
before income taxes
|
374.7
|
|
|
368.6
|
|
|
1.7
|
%
|
|
362.4
|
|
|
3.4
|
%
|
|
Adjusted income
tax provision
|
(98.6)
|
|
|
(96.1)
|
|
|
2.6
|
%
|
|
(97.9)
|
|
|
0.7
|
%
|
|
Adjusted net
income
|
276.1
|
|
|
272.5
|
|
|
1.3
|
%
|
|
264.5
|
|
|
4.4
|
%
|
|
Adjusted net
(income)/loss attributable to noncontrolling
interests in consolidated entities
|
(4.0)
|
|
|
0.1
|
|
|
N/A
|
|
(2.9)
|
|
|
37.9
|
%
|
|
Adjusted net
income attributable to Invesco Ltd.
|
$272.1
|
|
|
$272.6
|
|
|
(0.2)
|
%
|
|
$261.6
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
$0.63
|
|
|
$0.63
|
|
|
—
|
%
|
|
$0.60
|
|
|
5.0
|
%
|
|
Average diluted
shares outstanding
|
432.5
|
|
|
433.6
|
|
|
(0.3)
|
%
|
|
437.4
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Ending
headcount
|
6,360
|
|
|
6,264
|
|
|
1.5
|
%
|
|
6,005
|
|
|
5.9
|
%
|
|
Ending AUM (in
billions)
|
$798.3
|
|
|
$792.4
|
|
|
0.7
|
%
|
|
$787.3
|
|
|
1.4
|
%
|
|
Average AUM (in
billions)
|
$795.4
|
|
|
$789.8
|
|
|
0.7
|
%
|
|
$779.6
|
|
|
2.0
|
%
|
|
Invesco
Ltd.
U.S. GAAP Condensed Consolidated Income
Statements
(Unaudited, in millions, other than per share
amounts)
|
|
|
Q1-15
|
|
Q4-14
|
|
%
Change
|
|
Q1-14
|
|
%
Change
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$1,001.4
|
|
|
$1,009.5
|
|
|
(0.8)
|
%
|
|
$965.4
|
|
|
3.7
|
%
|
|
Service and
distribution fees
|
213.4
|
|
|
217.7
|
|
|
(2.0)
|
%
|
|
238.6
|
|
|
(10.6)
|
%
|
|
Performance
fees
|
46.8
|
|
|
16.8
|
|
|
178.6
|
%
|
|
31.1
|
|
|
50.5
|
%
|
|
Other
|
30.0
|
|
|
32.7
|
|
|
(8.3)
|
%
|
|
34.4
|
|
|
(12.8)
|
%
|
|
Total operating
revenues
|
1,291.6
|
|
|
1,276.7
|
|
|
1.2
|
%
|
|
1,269.5
|
|
|
1.7
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
360.9
|
|
|
345.7
|
|
|
4.4
|
%
|
|
362.1
|
|
|
(0.3)
|
%
|
|
Third-party
distribution, service and advisory
|
399.1
|
|
|
394.5
|
|
|
1.2
|
%
|
|
405.4
|
|
|
(1.6)
|
%
|
|
Marketing
|
26.7
|
|
|
31.9
|
|
|
(16.3)
|
%
|
|
23.4
|
|
|
14.1
|
%
|
|
Property, office
and technology
|
76.9
|
|
|
72.0
|
|
|
6.8
|
%
|
|
112.7
|
|
|
(31.8)
|
%
|
|
General and
administrative
|
89.9
|
|
|
84.4
|
|
|
6.5
|
%
|
|
121.6
|
|
|
(26.1)
|
%
|
|
Total operating
expenses
|
953.5
|
|
|
928.5
|
|
|
2.7
|
%
|
|
1,025.2
|
|
|
(7.0)
|
%
|
|
Operating
income
|
338.1
|
|
|
348.2
|
|
|
(2.9)
|
%
|
|
244.3
|
|
|
38.4
|
%
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
11.8
|
|
|
6.4
|
|
|
84.4
|
%
|
|
10.0
|
|
|
18.0
|
%
|
|
Interest and
dividend income
|
2.5
|
|
|
4.5
|
|
|
(44.4)
|
%
|
|
2.9
|
|
|
(13.8)
|
%
|
|
Interest
expense
|
(18.7)
|
|
|
(18.1)
|
|
|
3.3
|
%
|
|
(18.7)
|
|
|
—
|
%
|
|
Other gains and
losses, net
|
2.7
|
|
|
6.6
|
|
|
(59.1)
|
%
|
|
6.6
|
|
|
(59.1)
|
%
|
|
Other
income/(expense) of CSIP, net
|
9.4
|
|
|
1.0
|
|
|
840.0
|
%
|
|
8.2
|
|
|
14.6
|
%
|
|
Consolidated
investment products (CIP):
|
|
|
|
|
|
|
|
|
|
|
Interest
income of CIP
|
60.2
|
|
|
56.8
|
|
|
6.0
|
%
|
|
48.3
|
|
|
24.6
|
%
|
|
Interest
expense of CIP
|
(45.1)
|
|
|
(35.8)
|
|
|
26.0
|
%
|
|
(30.3)
|
|
|
48.8
|
%
|
|
Other
gains/(losses) of CIP, net
|
24.4
|
|
|
(43.0)
|
|
|
N/A
|
|
26.5
|
|
|
(7.9)%
|
|
|
Income from
continuing operations before income taxes
|
385.3
|
|
|
326.6
|
|
|
18.0
|
%
|
|
297.8
|
|
|
29.4
|
%
|
|
Income tax
provision
|
(101.3)
|
|
|
(99.7)
|
|
|
1.6
|
%
|
|
(89.0)
|
|
|
13.8
|
%
|
|
Income from
continuing operations, net of taxes
|
284.0
|
|
|
226.9
|
|
|
25.2
|
%
|
|
208.8
|
|
|
36.0
|
%
|
|
Income/(loss) from
discontinued operations, net of taxes
|
—
|
|
|
(1.0)
|
|
|
N/A
|
|
(2.0)
|
|
|
N/A
|
|
Net
income
|
284.0
|
|
|
225.9
|
|
|
25.7
|
%
|
|
206.8
|
|
|
37.3
|
%
|
|
Net (income)/loss
attributable to noncontrolling interests in
consolidated
entities
|
(24.4)
|
|
|
43.9
|
|
|
N/A
|
|
(19.0)
|
|
|
28.4
|
%
|
|
Net income
attributable to Invesco Ltd.
|
$259.6
|
|
|
$269.8
|
|
|
(3.8)
|
%
|
|
$187.8
|
|
|
38.2
|
%
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
---Basic EPS from
continuing operations
|
$0.60
|
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
$0.43
|
|
|
39.5
|
%
|
|
---Basic EPS from
discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
$—
|
|
|
N/A
|
|
---Total
basic
|
$0.60
|
|
|
$0.62
|
|
|
(3.2)
|
%
|
|
$0.43
|
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
---Diluted EPS
from continuing operations
|
$0.60
|
|
|
$0.62
|
|
|
(3.2)
|
%
|
|
$0.43
|
|
|
39.5
|
%
|
|
---Diluted EPS
from discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
$—
|
|
|
N/A
|
|
---Total
diluted
|
$0.60
|
|
|
$0.62
|
|
|
(3.2)
|
%
|
|
$0.43
|
|
|
39.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
---basic
|
432.2
|
|
|
433.2
|
|
|
(0.2)
|
%
|
|
436.8
|
|
|
(1.1)
|
%
|
|
---diluted
|
432.5
|
|
|
433.6
|
|
|
(0.3)
|
%
|
|
437.4
|
|
|
(1.1)
|
%
|
|
Invesco Ltd.
Reconciliation of U.S. GAAP Condensed Consolidated Income Statement
to Non-GAAP Condensed
Consolidated Income Statement Information
(Unaudited, in millions, other than per share amounts)
Three months ended March 31, 2015
|
|
|
|
U.S.
GAAP
basis
|
|
Proportional
consolidation
of joint
ventures
|
|
Third party
distribution,
service and
advisory
expenses
|
|
Acquisition /
Disposition
related
|
|
Market
appreciation /
depreciation
of deferred
compensation
awards
|
|
CIP
|
|
Other
reconciling
items
|
|
Non-
GAAP
basis
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
|
$1,001.4
|
|
|
$15.3
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$6.9
|
|
|
$—
|
|
|
$1,023.6
|
|
|
Service and
distribution fees
|
|
213.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
213.4
|
|
|
Performance
fees
|
|
46.8
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
51.7
|
|
|
Other
|
|
30.0
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.2
|
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(3.3)
|
|
|
(399.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(402.4)
|
|
|
Total operating
revenues reconciled to net revenues
|
|
1,291.6
|
|
|
15.7
|
|
|
(399.1)
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
917.5
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
360.9
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
(3.9)
|
|
|
—
|
|
|
—
|
|
|
362.7
|
|
|
Third-party
distribution, service and advisory
|
|
399.1
|
|
|
—
|
|
|
(399.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Marketing
|
|
26.7
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.4
|
|
|
Property, office and
technology
|
|
76.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.8
|
|
|
General and
administrative
|
|
89.9
|
|
|
1.4
|
|
|
—
|
|
|
(3.9)
|
|
|
—
|
|
|
(12.2)
|
|
|
—
|
|
|
75.2
|
|
|
Total operating
expenses
|
|
953.5
|
|
|
8.7
|
|
|
(399.1)
|
|
|
(3.9)
|
|
|
(3.9)
|
|
|
(12.2)
|
|
|
—
|
|
|
543.1
|
|
|
Operating income
reconciled to adjusted operating
income
|
|
338.1
|
|
|
7.0
|
|
|
—
|
|
|
3.9
|
|
|
3.9
|
|
|
21.5
|
|
|
—
|
|
|
374.4
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
11.8
|
|
|
(6.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
7.5
|
|
|
Interest and dividend
income
|
|
2.5
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
1.4
|
|
|
—
|
|
|
4.8
|
|
|
Interest
expense
|
|
(18.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.7)
|
|
|
Other gains and
losses, net
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.0)
|
|
|
2.7
|
|
|
(3.1)
|
|
|
(2.7)
|
|
|
Other
income/(expense) of CSIP, net
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income of
CIP
|
|
60.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.2)
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
CIP
|
|
(45.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45.1
|
|
|
—
|
|
|
—
|
|
|
Other gains/(losses) of CIP,
net
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.4)
|
|
|
—
|
|
|
—
|
|
|
Income from
continuing operations before income
taxes
|
|
385.3
|
|
|
2.0
|
|
|
—
|
|
|
3.9
|
|
|
(1.2)
|
|
|
(12.2)
|
|
|
(3.1)
|
|
|
374.7
|
|
|
Income tax
provision
|
|
(101.3)
|
|
|
(2.0)
|
|
|
—
|
|
|
4.4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
(98.6)
|
|
|
Income from
continuing operations, net of income
taxes
|
|
284.0
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
(0.9)
|
|
|
(12.2)
|
|
|
(3.1)
|
|
|
276.1
|
|
|
Income/(loss) from
discontinued operations, net of
taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
284.0
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
(0.9)
|
|
|
(12.2)
|
|
|
(3.1)
|
|
|
276.1
|
|
|
Net (income)/loss
attributable to noncontrolling
interests in
consolidated entities
|
|
(24.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
|
(4.0)
|
|
|
Net income
attributable to Invesco Ltd. reconciled to
adjusted net income attributable to Invesco Ltd.
|
|
$259.6
|
|
|
$—
|
|
|
$—
|
|
|
$8.3
|
|
|
($0.9)
|
|
|
$8.2
|
|
|
($3.1)
|
|
|
$272.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
26.2
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
40.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
432.5
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
432.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
|
$0.60
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.63
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
Reconciliation of U.S. GAAP Condensed Consolidated
Income Statement to Non-GAAP Condensed
Consolidated
Income Statement Information
(Unaudited, in millions,
other than per share amounts)
Three months ended
December 31, 2014
|
|
|
|
U.S.
GAAP
basis
|
|
Proportional
consolidation
of joint
ventures
|
|
Third party
distribution,
service and
advisory
expenses
|
|
Acquisition /
Disposition
related
|
|
Market
appreciation /
depreciation
of deferred
compensation
awards
|
|
CIP
|
|
Other
reconciling
items
|
|
Non-
GAAP
basis
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
|
$1,009.5
|
|
|
$15.6
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$7.8
|
|
|
$—
|
|
|
$1,032.9
|
|
|
Service and
distribution fees
|
|
217.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217.7
|
|
|
Performance
fees
|
|
16.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
19.0
|
|
|
Other
|
|
32.7
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
34.1
|
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(3.4)
|
|
|
(394.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(397.9)
|
|
|
Total operating
revenues reconciled to net revenues
|
|
1,276.7
|
|
|
14.0
|
|
|
(394.5)
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
—
|
|
|
905.8
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
345.7
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
347.0
|
|
|
Third-party
distribution, service and advisory
|
|
394.5
|
|
|
—
|
|
|
(394.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Marketing
|
|
31.9
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33.0
|
|
|
Property, office and
technology
|
|
72.0
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
75.6
|
|
|
General and
administrative
|
|
84.4
|
|
|
1.3
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
(9.0)
|
|
|
3.1
|
|
|
77.1
|
|
|
Total operating
expenses
|
|
928.5
|
|
|
7.8
|
|
|
(394.5)
|
|
|
(2.7)
|
|
|
(3.2)
|
|
|
(9.0)
|
|
|
5.8
|
|
|
532.7
|
|
|
Operating income
reconciled to adjusted operating
income
|
|
348.2
|
|
|
6.2
|
|
|
—
|
|
|
2.7
|
|
|
3.2
|
|
|
18.6
|
|
|
(5.8)
|
|
|
373.1
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
6.4
|
|
|
(5.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
1.2
|
|
|
Interest and dividend
income
|
|
4.5
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
1.1
|
|
|
—
|
|
|
5.5
|
|
|
Interest
expense
|
|
(18.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.1)
|
|
|
Other gains and
losses, net
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
|
0.1
|
|
|
—
|
|
|
5.9
|
|
|
Other
income/(expense) of CSIP, net
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income of
CIP
|
|
56.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56.8)
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
CIP
|
|
(35.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35.8
|
|
|
—
|
|
|
—
|
|
|
Other gains/(losses) of CIP,
net
|
|
(43.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.0
|
|
|
—
|
|
|
—
|
|
|
Income from
continuing operations before income
taxes
|
|
326.6
|
|
|
1.9
|
|
|
—
|
|
|
2.7
|
|
|
1.5
|
|
|
41.7
|
|
|
(5.8)
|
|
|
368.6
|
|
|
Income tax
provision
|
|
(99.7)
|
|
|
(1.9)
|
|
|
—
|
|
|
5.1
|
|
|
(0.3)
|
|
|
—
|
|
|
0.7
|
|
|
(96.1)
|
|
|
Income from
continuing operations, net of taxes
|
|
226.9
|
|
|
—
|
|
|
—
|
|
|
7.8
|
|
|
1.2
|
|
|
41.7
|
|
|
(5.1)
|
|
|
272.5
|
|
|
Income/(loss) from
discontinued operations, net of
taxes
|
|
(1.0)
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
225.9
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|
1.2
|
|
|
41.7
|
|
|
(5.1)
|
|
|
272.5
|
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
|
43.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43.8)
|
|
|
—
|
|
|
0.1
|
|
|
Net income
attributable to Invesco Ltd. reconciled to
adjusted net income attributable to Invesco Ltd.
|
|
$269.8
|
|
|
$—
|
|
|
$—
|
|
|
$8.8
|
|
|
$1.2
|
|
|
($2.1)
|
|
|
($5.1)
|
|
|
$272.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
27.3
|
%
|
|
|
|
|
|
Adjusted operating
margin
|
|
|
|
41.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
433.6
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
|
|
433.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS form
continuing operations
|
|
$0.62
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
|
|
$0.63
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
Reconciliation of U.S. GAAP Condensed Consolidated Income Statement
to Non-GAAP Condensed
Consolidated Income Statement Information
(Unaudited, in millions, other than per share amounts)
Three months ended March 31, 2014
|
|
|
|
U.S.
GAAP
basis
|
|
Proportional
consolidation
of joint
ventures
|
|
Third party
distribution,
service and
advisory
expenses
|
|
Acquisition /
Disposition
related
|
|
Market
appreciation /
depreciation
of deferred
compensation
awards
|
|
CIP
|
|
Other
reconciling
items
|
|
Non-
GAAP
basis
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
|
$965.4
|
|
|
$17.7
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$5.9
|
|
|
$—
|
|
|
$989.0
|
|
|
Service and
distribution fees
|
|
238.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
238.6
|
|
|
Performance
fees
|
|
31.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
33.6
|
|
|
Other
|
|
34.4
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35.7
|
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(3.7)
|
|
|
(405.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(409.1)
|
|
|
Total operating
revenues reconciled to net revenues
|
|
1,269.5
|
|
|
15.3
|
|
|
(405.4)
|
|
|
—
|
|
|
—
|
|
|
8.4
|
|
|
—
|
|
|
887.8
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
362.1
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
(4.4)
|
|
|
—
|
|
|
(7.2)
|
|
|
353.1
|
|
|
Third-party
distribution, service and advisory
|
|
405.4
|
|
|
—
|
|
|
(405.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Marketing
|
|
23.4
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.2
|
|
|
Property, office and
technology
|
|
112.7
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.8)
|
|
|
77.7
|
|
|
General and
administrative
|
|
121.6
|
|
|
1.5
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
(12.6)
|
|
|
(36.9)
|
|
|
69.8
|
|
|
Total operating
expenses
|
|
1,025.2
|
|
|
5.7
|
|
|
(405.4)
|
|
|
(3.8)
|
|
|
(4.4)
|
|
|
(12.6)
|
|
|
(79.9)
|
|
|
524.8
|
|
|
Operating income
reconciled to adjusted operating
income
|
|
244.3
|
|
|
9.6
|
|
|
—
|
|
|
3.8
|
|
|
4.4
|
|
|
21.0
|
|
|
79.9
|
|
|
363.0
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
10.0
|
|
|
(8.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
3.2
|
|
|
Interest and dividend
income
|
|
2.9
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
|
0.9
|
|
|
—
|
|
|
4.2
|
|
|
Interest
expense
|
|
(18.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.7)
|
|
|
Other gains and
losses, net
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9)
|
|
|
—
|
|
|
(0.2)
|
|
|
2.5
|
|
|
Other
income/(expense) of CSIP, net
|
|
8.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income of CIP
|
|
48.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48.3)
|
|
|
—
|
|
|
—
|
|
|
Interest expense of CIP
|
|
(30.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.3
|
|
|
—
|
|
|
—
|
|
|
Other
gains/(losses) of CIP, net
|
|
26.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.5)
|
|
|
—
|
|
|
—
|
|
|
Income from
continuing operations before income
taxes
|
|
297.8
|
|
|
2.8
|
|
|
—
|
|
|
3.8
|
|
|
(0.3)
|
|
|
(21.4)
|
|
|
79.7
|
|
|
362.4
|
|
|
Income tax
provision
|
|
(89.0)
|
|
|
(2.8)
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
(11.2)
|
|
|
(97.9)
|
|
|
Income from
continuing operations, net of taxes
|
|
208.8
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|
(0.3)
|
|
|
(21.4)
|
|
|
68.5
|
|
|
264.5
|
|
|
Income/(loss) from
discontinued operations, net of
taxes
|
|
(2.0)
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
206.8
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
(0.3)
|
|
|
(21.4)
|
|
|
68.5
|
|
|
264.5
|
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
|
(19.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.1
|
|
|
—
|
|
|
(2.9)
|
|
|
Net income
attributable to Invesco Ltd. reconciled to
adjusted net income attributable to Invesco Ltd.
|
|
$187.8
|
|
|
$—
|
|
|
$—
|
|
|
$10.9
|
|
|
($0.3)
|
|
|
($5.3)
|
|
|
$68.5
|
|
|
$261.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
19.2
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
40.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
437.4
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
437.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS form
continuing operations
|
|
$0.43
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.60
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
Condensed Consolidated Balance Sheet Information Excluding CIP
(a non-GAAP presentation, unaudited, in millions)
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
ADJUSTED
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$1,219.7
|
|
$1,514.2
|
|
Unsettled fund
receivables
|
1,361.5
|
|
732.4
|
|
Accounts
receivable
|
565.2
|
|
549.7
|
|
Investments
|
1,040.3
|
|
980.3
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
314.2
|
|
305.8
|
|
Assets held for
policyholders
|
2,572.7
|
|
1,697.9
|
|
Prepaid
assets
|
126.5
|
|
132.1
|
|
Other
assets
|
90.7
|
|
92.0
|
|
Property,
equipment and software, net
|
393.1
|
|
402.6
|
|
Intangible assets,
net
|
1,362.8
|
|
1,246.7
|
|
Goodwill
|
6,333.3
|
|
6,579.4
|
|
Total adjusted
assets
|
$15,380.0
|
|
$14,233.1
|
|
|
|
|
|
ADJUSTED
LIABILITIES
|
|
|
|
|
Accrued
compensation and benefits
|
$371.7
|
|
$667.3
|
|
Accounts payable
and accrued expenses
|
824.5
|
|
757.3
|
|
Policyholder
payables
|
2,572.7
|
|
1,697.9
|
|
Unsettled fund
payables
|
1,363.2
|
|
730.1
|
|
Long-term
debt
|
1,600.6
|
|
1,589.3
|
|
Deferred tax
liabilities, net
|
387.7
|
|
304.8
|
|
Total adjusted
liabilities
|
7,120.4
|
|
5,746.7
|
|
|
|
|
|
ADJUSTED TEMPORARY
EQUITY
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
167.6
|
|
165.5
|
|
ADJUSTED PERMANENT
EQUITY
|
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
|
Common
shares
|
98.1
|
|
98.1
|
|
Additional
paid-in-capital
|
6,091.2
|
|
6,133.6
|
|
Treasury
shares
|
(1,936.2)
|
|
(1,898.1)
|
|
Retained
earnings
|
4,065.4
|
|
3,905.7
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(241.5)
|
|
69.0
|
|
Total adjusted
equity attributable to Invesco Ltd.
|
8,077.0
|
|
8,308.3
|
|
Adjusted equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
15.0
|
|
12.6
|
|
Total adjusted
permanent equity
|
8,092.0
|
|
8,320.9
|
|
Total adjusted
liabilities, temporary and permanent equity
|
$15,380.0
|
|
$14,233.1
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Balance Sheets
(Unaudited, in
millions)
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$1,219.7
|
|
$1,514.2
|
|
Unsettled fund
receivables
|
1,361.5
|
|
732.4
|
|
Accounts
receivable
|
561.1
|
|
545.9
|
|
Investments
|
951.6
|
|
885.4
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
314.2
|
|
305.8
|
|
Assets of
consolidated investment products (CIP):
|
|
|
|
|
Cash and cash
equivalents of CIP
|
393.9
|
|
404.0
|
|
Accounts receivable
of CIP
|
82.1
|
|
161.3
|
|
Investments of
CIP
|
6,198.0
|
|
5,762.8
|
|
Assets held for
policyholders
|
2,572.7
|
|
1,697.9
|
|
Prepaid
assets
|
126.5
|
|
132.1
|
|
Other
assets
|
90.7
|
|
92.0
|
|
Property,
equipment and software, net
|
393.1
|
|
402.6
|
|
Intangible assets,
net
|
1,362.8
|
|
1,246.7
|
|
Goodwill
|
6,333.3
|
|
|
6,579.4
|
|
Total
assets
|
$21,961.2
|
|
|
$20,462.5
|
|
LIABILITIES
|
|
|
|
|
Accrued
compensation and benefits
|
$371.7
|
|
$667.3
|
|
Accounts payable
and accrued expenses
|
824.5
|
|
757.3
|
|
Liabilities of
CIP:
|
|
|
|
|
Debt of
CIP
|
5,479.7
|
|
5,149.6
|
|
Other liabilities of
CIP
|
320.7
|
|
280.9
|
|
Policyholder
payables
|
2,572.7
|
|
1,697.9
|
|
Unsettled fund
payables
|
1,363.2
|
|
730.1
|
|
Long-term
debt
|
1,600.6
|
|
1,589.3
|
|
Deferred tax
liabilities, net
|
387.7
|
|
|
304.8
|
|
Total
liabilities
|
12,920.8
|
|
|
11,177.2
|
|
TEMPORARY
EQUITY
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
167.6
|
|
165.5
|
|
PERMANENT
EQUITY
|
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
|
Common
shares
|
98.1
|
|
98.1
|
|
Additional
paid-in-capital
|
6,091.2
|
|
6,133.6
|
|
Treasury
shares
|
(1,936.2)
|
|
(1,898.1)
|
|
Retained
earnings
|
4,077.5
|
|
3,926.0
|
|
Retained earnings
appropriated for investors in CIP
|
—
|
|
17.6
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(253.6)
|
|
|
48.8
|
|
Total equity
attributable to Invesco Ltd.
|
8,077.0
|
|
8,326.0
|
|
Equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
795.8
|
|
|
793.8
|
|
Total permanent
equity
|
8,872.8
|
|
|
9,119.8
|
|
Total liabilities,
temporary and permanent equity
|
$21,961.2
|
|
|
$20,462.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Reconciliations of
Condensed Consolidated Balance Sheet Information Excluding CIP
to
U.S. GAAP
Condensed Consolidated Balance Sheets (unaudited, in
millions)
|
|
March 31,
2015
|
|
December 31,
2014
|
|
Before
Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Before
Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,219.7
|
|
|
$—
|
|
|
$1,219.7
|
|
|
$1,514.2
|
|
|
$—
|
|
|
$1,514.2
|
|
|
Unsettled fund
receivables
|
1,361.5
|
|
|
—
|
|
|
1,361.5
|
|
|
732.4
|
|
|
—
|
|
|
732.4
|
|
|
Accounts
receivable
|
565.2
|
|
|
(4.1)
|
|
|
561.1
|
|
|
549.7
|
|
|
(3.8)
|
|
|
545.9
|
|
|
Investments
|
1,040.3
|
|
|
(88.7)
|
|
|
951.6
|
|
|
980.3
|
|
|
(94.9)
|
|
|
885.4
|
|
|
Assets of
CSIP
|
314.2
|
|
|
—
|
|
|
314.2
|
|
|
305.8
|
|
|
—
|
|
|
305.8
|
|
|
Assets of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents of CIP
|
—
|
|
|
393.9
|
|
|
393.9
|
|
|
—
|
|
|
404.0
|
|
|
404.0
|
|
|
Accounts receivable of
CIP
|
—
|
|
|
82.1
|
|
|
82.1
|
|
|
—
|
|
|
161.3
|
|
|
161.3
|
|
|
Investments of
CIP
|
—
|
|
|
6,198.0
|
|
|
6,198.0
|
|
|
—
|
|
|
5,762.8
|
|
|
5,762.8
|
|
|
Assets held for
policyholders
|
2,572.7
|
|
|
—
|
|
|
2,572.7
|
|
|
1,697.9
|
|
|
—
|
|
|
1,697.9
|
|
|
Prepaid
assets
|
126.5
|
|
|
—
|
|
|
126.5
|
|
|
132.1
|
|
|
—
|
|
|
132.1
|
|
|
Other
assets
|
90.7
|
|
|
—
|
|
|
90.7
|
|
|
92.0
|
|
|
—
|
|
|
92.0
|
|
|
Property, equipment
and software, net
|
393.1
|
|
|
—
|
|
|
393.1
|
|
|
402.6
|
|
|
—
|
|
|
402.6
|
|
|
Intangible assets,
net
|
1,362.8
|
|
|
—
|
|
|
1,362.8
|
|
|
1,246.7
|
|
|
—
|
|
|
1,246.7
|
|
|
Goodwill
|
6,333.3
|
|
|
—
|
|
|
6,333.3
|
|
|
6,579.4
|
|
|
—
|
|
|
6,579.4
|
|
|
Total
assets
|
$15,380.0
|
|
|
$6,581.2
|
|
|
$21,961.2
|
|
|
$14,233.1
|
|
|
$6,229.4
|
|
|
$20,462.5
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation
and benefits
|
$371.7
|
|
|
$—
|
|
|
$371.7
|
|
|
$667.3
|
|
|
$—
|
|
|
$667.3
|
|
|
Accounts payable and
accrued expenses
|
824.5
|
|
|
—
|
|
|
824.5
|
|
|
757.3
|
|
|
—
|
|
|
757.3
|
|
|
Liabilities of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt of CIP
|
—
|
|
|
5,479.7
|
|
|
5,479.7
|
|
|
—
|
|
|
5,149.6
|
|
|
5,149.6
|
|
|
Other liabilities of
CIP
|
—
|
|
|
320.7
|
|
|
320.7
|
|
|
—
|
|
|
280.9
|
|
|
280.9
|
|
|
Policyholder
payables
|
2,572.7
|
|
|
—
|
|
|
2,572.7
|
|
|
1,697.9
|
|
|
—
|
|
|
1,697.9
|
|
|
Unsettled fund
payables
|
1,363.2
|
|
|
—
|
|
|
1,363.2
|
|
|
730.1
|
|
|
—
|
|
|
730.1
|
|
|
Long-term
debt
|
1,600.6
|
|
|
—
|
|
|
1,600.6
|
|
|
1,589.3
|
|
|
—
|
|
|
1,589.3
|
|
|
Deferred tax
liabilities, net
|
387.7
|
|
|
—
|
|
|
387.7
|
|
|
304.8
|
|
|
—
|
|
|
304.8
|
|
|
Total
liabilities
|
7,120.4
|
|
|
5,800.4
|
|
|
12,920.8
|
|
|
5,746.7
|
|
|
5,430.5
|
|
|
11,177.2
|
|
|
TEMPORARY
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
167.6
|
|
|
—
|
|
|
167.6
|
|
|
165.5
|
|
|
—
|
|
|
165.5
|
|
|
PERMANENT
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable
to Invesco Ltd.:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
98.1
|
|
|
—
|
|
|
98.1
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
|
Additional
paid-in-capital
|
6,091.2
|
|
|
—
|
|
|
6,091.2
|
|
|
6,133.6
|
|
|
—
|
|
|
6,133.6
|
|
|
Treasury
shares
|
(1,936.2)
|
|
|
—
|
|
|
(1,936.2)
|
|
|
(1,898.1)
|
|
|
—
|
|
|
(1,898.1)
|
|
|
Retained
earnings
|
4,065.4
|
|
|
12.1
|
|
|
4,077.5
|
|
|
3,905.7
|
|
|
20.3
|
|
|
3,926.0
|
|
|
Retained earnings
appropriated for investors in CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.6
|
|
|
17.6
|
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(241.5)
|
|
|
(12.1)
|
|
|
(253.6)
|
|
|
69.0
|
|
|
(20.2)
|
|
|
48.8
|
|
|
Total equity
attributable to Invesco Ltd.
|
8,077.0
|
|
|
—
|
|
|
8,077.0
|
|
|
8,308.3
|
|
|
17.7
|
|
|
8,326.0
|
|
|
Equity attributable
to nonredeemable noncontrolling interests
in consolidated entities
|
15.0
|
|
|
780.8
|
|
|
795.8
|
|
|
12.6
|
|
|
781.2
|
|
|
793.8
|
|
|
Total permanent
equity
|
8,092.0
|
|
|
780.8
|
|
|
8,872.8
|
|
|
8,320.9
|
|
|
798.9
|
|
|
9,119.8
|
|
|
Total liabilities,
temporary and permanent equity
|
$15,380.0
|
|
|
$6,581.2
|
|
|
$21,961.2
|
|
|
$14,233.1
|
|
|
$6,229.4
|
|
|
$20,462.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
Condensed Consolidated Cash Flow Statement Information Excluding
CIP
(a non-GAAP presentation, unaudited, in millions)
|
|
|
Three months ended
March 31,
|
|
2015
|
|
2014
|
|
Adjusted operating
activities:
|
|
|
|
|
U.S. GAAP net
income
|
$284.0
|
|
|
$206.8
|
|
|
Consolidated
investment product (CIP) net (income)/loss
|
(12.2)
|
|
|
(21.4)
|
|
|
Net income
adjusted to remove impact of CIP
|
271.8
|
|
|
185.4
|
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
|
Amortization and
depreciation
|
22.7
|
|
|
23.4
|
|
|
Share-based
compensation expense
|
40.7
|
|
|
36.5
|
|
|
Other
(gains)/losses, net
|
(5.4)
|
|
|
(6.6)
|
|
|
Other
(gains)/losses of CSIP, net
|
(6.4)
|
|
|
(6.5)
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(13.5)
|
|
|
(11.2)
|
|
|
Dividends from
unconsolidated affiliates
|
0.7
|
|
|
0.8
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
(Increase)/decrease in cash held by
CSIP
|
(8.8)
|
|
|
0.3
|
|
|
(Purchase)/sale of
trading investments, net
|
(39.5)
|
|
|
7.8
|
|
|
(Increase)/decrease in receivables
|
(1,618.2)
|
|
|
(520.4)
|
|
|
Increase/(decrease) in payables
|
1,308.9
|
|
|
267.0
|
|
|
Adjusted net cash
provided by/(used in) operating activities
|
(47.0)
|
|
|
(23.5)
|
|
|
|
|
|
|
Adjusted investing
activities:
|
|
|
|
|
Purchase of
property, equipment and software
|
(23.0)
|
|
|
(21.4)
|
|
|
Purchase of
available-for-sale investments
|
(61.4)
|
|
|
(34.0)
|
|
|
Sale of
available-for-sale investments
|
39.5
|
|
|
36.8
|
|
|
Purchase of
investments by CSIP
|
(159.1)
|
|
|
(246.9)
|
|
|
Sale of
investments by CSIP
|
166.7
|
|
|
95.3
|
|
|
Purchase of other
investments
|
(51.9)
|
|
|
(44.1)
|
|
|
Sale of other
investments
|
36.6
|
|
|
15.3
|
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
14.7
|
|
|
4.2
|
|
|
Adjusted net cash
provided by/(used in) investing activities
|
(37.9)
|
|
|
(194.8)
|
|
|
|
|
|
|
Adjusted financing
activities:
|
|
|
|
|
Proceeds from
exercises of share options
|
0.7
|
|
|
1.5
|
|
|
Purchases of
treasury shares
|
(76.6)
|
|
|
(119.6)
|
|
|
Dividends
paid
|
(108.1)
|
|
|
(98.0)
|
|
|
Excess tax
benefits from share-based compensation
|
13.0
|
|
|
13.9
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
(35.7)
|
|
|
Third-party
capital invested into CSIP
|
0.8
|
|
|
100.8
|
|
|
Net
borrowings/(repayments) under credit facility
|
11.2
|
|
|
—
|
|
|
Adjusted net cash
provided by/(used in) financing activities
|
(159.0)
|
|
|
(137.1)
|
|
|
|
|
|
|
Increase
/(decrease) in cash and cash equivalents
|
(243.9)
|
|
|
(355.4)
|
|
|
Foreign exchange
movement on cash and cash equivalents
|
(50.6)
|
|
|
2.9
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,219.7
|
|
|
$978.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
U.S. GAAP Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
|
|
|
Three months ended
March 31,
|
|
2015
|
|
2014
|
|
Operating
activities:
|
|
|
|
|
Net
income
|
$284.0
|
|
|
$206.8
|
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
|
Amortization and
depreciation
|
22.7
|
|
|
23.4
|
|
|
Share-based
compensation expense
|
40.7
|
|
|
36.5
|
|
|
Other
(gains)/losses, net
|
(2.7)
|
|
|
(6.6)
|
|
|
Other
(gains)/losses of CSIP, net
|
(6.4)
|
|
|
(6.5)
|
|
|
Other
(gains)/losses of CIP, net
|
(24.4)
|
|
|
(26.5)
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(11.8)
|
|
|
(10.0)
|
|
|
Dividends from
unconsolidated affiliates
|
0.7
|
|
|
0.8
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
(Increase)/decrease in cash held by
CIP
|
9.4
|
|
|
(196.4)
|
|
|
(Increase)/decrease in cash held by
CSIP
|
(8.8)
|
|
|
0.3
|
|
|
(Purchase)/sale of
trading investments, net
|
(39.5)
|
|
|
7.8
|
|
|
(Increase)/decrease in receivables
|
(1,632.9)
|
|
|
(520.9)
|
|
|
Increase/(decrease) in payables
|
1,312.7
|
|
|
272.1
|
|
|
Net cash provided
by/(used in) operating activities
|
(56.3)
|
|
|
(219.2)
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchase of
property, equipment and software
|
(23.0)
|
|
|
(21.4)
|
|
|
Purchase of
available-for-sale investments
|
(34.3)
|
|
|
(1.8)
|
|
|
Sale of
available-for-sale investments
|
9.8
|
|
|
10.3
|
|
|
Purchase of
investments by CIP
|
(1,286.6)
|
|
|
(1,325.1)
|
|
|
Sale of
investments by CIP
|
960.6
|
|
|
970.1
|
|
|
Purchase of
investments by CSIP
|
(159.1)
|
|
|
(246.9)
|
|
|
Sale of
investments by CSIP
|
166.7
|
|
|
95.3
|
|
|
Purchase of other
investments
|
(51.9)
|
|
|
(44.1)
|
|
|
Sale of other
investments
|
36.6
|
|
|
15.3
|
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
14.7
|
|
|
3.8
|
|
|
Net cash provided
by/(used in) investing activities
|
(366.5)
|
|
|
(544.5)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from
exercises of share options
|
0.7
|
|
|
1.5
|
|
|
Purchases of
treasury shares
|
(76.6)
|
|
|
(119.6)
|
|
|
Dividends
paid
|
(108.1)
|
|
|
(98.0)
|
|
|
Excess tax
benefits from share-based compensation
|
13.0
|
|
|
13.9
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
(35.7)
|
|
|
Third-party
capital invested into CIP
|
12.9
|
|
|
40.1
|
|
|
Third-party
capital distributed by CIP
|
(33.9)
|
|
|
(48.6)
|
|
|
Third-party
capital invested into CSIP
|
0.8
|
|
|
100.8
|
|
|
Borrowings of debt
by CIP
|
935.9
|
|
|
715.0
|
|
|
Repayments of debt
by CIP
|
(577.0)
|
|
|
(161.1)
|
|
|
Net
borrowings/(repayments) under credit facility
|
11.2
|
|
|
—
|
|
|
Net cash provided
by/(used in) financing activities
|
178.9
|
|
|
408.3
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash
equivalents
|
(243.9)
|
|
|
(355.4)
|
|
|
Foreign exchange
movement on cash and cash equivalents
|
(50.6)
|
|
|
2.9
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,219.7
|
|
|
$978.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Reconciliations of Condensed Consolidated Cash Flow Information
Excluding CIP to U.S. GAAP Condensed
Consolidated Statements of Cash Flows
(unaudited, in millions)
|
|
|
Three months ended
March 31, 2015
|
|
Three months ended
March 31, 2014
|
|
Before
Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Before
Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$271.8
|
|
|
$12.2
|
|
|
$284.0
|
|
|
$185.4
|
|
|
$21.4
|
|
|
$206.8
|
|
|
Amortization and
depreciation
|
22.7
|
|
|
—
|
|
|
22.7
|
|
|
23.4
|
|
|
—
|
|
|
23.4
|
|
|
Share-based
compensation expense
|
40.7
|
|
|
—
|
|
|
40.7
|
|
|
36.5
|
|
|
—
|
|
|
36.5
|
|
|
Other (gains)/losses,
net
|
(5.4)
|
|
|
2.7
|
|
|
(2.7)
|
|
|
(6.6)
|
|
|
—
|
|
|
(6.6)
|
|
|
Other (gains)/losses
of CSIP, net
|
(6.4)
|
|
|
—
|
|
|
(6.4)
|
|
|
(6.5)
|
|
|
—
|
|
|
(6.5)
|
|
|
Other (gains)/losses
of CIP, net
|
—
|
|
|
(24.4)
|
|
|
(24.4)
|
|
|
—
|
|
|
(26.5)
|
|
|
(26.5)
|
|
|
Equity in earnings of
unconsolidated affiliates
|
(13.5)
|
|
|
1.7
|
|
|
(11.8)
|
|
|
(11.2)
|
|
|
1.2
|
|
|
(10.0)
|
|
|
Dividends from
unconsolidated affiliates
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in
cash held by CIP
|
—
|
|
|
9.4
|
|
|
9.4
|
|
|
—
|
|
|
(196.4)
|
|
|
(196.4)
|
|
|
(Increase)/decrease in
cash held by CSIP
|
(8.8)
|
|
|
—
|
|
|
(8.8)
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(Purchase)/sale of
trading investments, net
|
(39.5)
|
|
|
—
|
|
|
(39.5)
|
|
|
7.8
|
|
|
—
|
|
|
7.8
|
|
|
(Increase)/decrease
in receivables
|
(1,618.2)
|
|
|
(14.7)
|
|
|
(1,632.9)
|
|
|
(520.4)
|
|
|
(0.5)
|
|
|
(520.9)
|
|
|
Increase/(decrease)
in payables
|
1,308.9
|
|
|
3.8
|
|
|
1,312.7
|
|
|
267.0
|
|
|
5.1
|
|
|
272.1
|
|
|
Net cash provided
by/(used in) operating
activities
|
(47.0)
|
|
|
(9.3)
|
|
|
(56.3)
|
|
|
(23.5)
|
|
|
(195.7)
|
|
|
(219.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and software
|
(23.0)
|
|
|
—
|
|
|
(23.0)
|
|
|
(21.4)
|
|
|
—
|
|
|
(21.4)
|
|
|
Purchase of
available-for-sale investments
|
(61.4)
|
|
|
27.1
|
|
|
(34.3)
|
|
|
(34.0)
|
|
|
32.2
|
|
|
(1.8)
|
|
|
Sale of
available-for-sale investments
|
39.5
|
|
|
(29.7)
|
|
|
9.8
|
|
|
36.8
|
|
|
(26.5)
|
|
|
10.3
|
|
|
Purchase of
investments by CIP
|
—
|
|
|
(1,286.6)
|
|
|
(1,286.6)
|
|
|
—
|
|
|
(1,325.1)
|
|
|
(1,325.1)
|
|
|
Sale of investments
by CIP
|
—
|
|
|
960.6
|
|
|
960.6
|
|
|
—
|
|
|
970.1
|
|
|
970.1
|
|
|
Purchase of
investments by CSIP
|
(159.1)
|
|
|
—
|
|
|
(159.1)
|
|
|
(246.9)
|
|
|
—
|
|
|
(246.9)
|
|
|
Sale of investments
by CSIP
|
166.7
|
|
|
—
|
|
|
166.7
|
|
|
95.3
|
|
|
—
|
|
|
95.3
|
|
|
Purchase of other
investments
|
(51.9)
|
|
|
—
|
|
|
(51.9)
|
|
|
(44.1)
|
|
|
—
|
|
|
(44.1)
|
|
|
Sale of other
investments
|
36.6
|
|
|
—
|
|
|
36.6
|
|
|
15.3
|
|
|
—
|
|
|
15.3
|
|
|
Returns of capital
and distributions from
unconsolidated partnership investments
|
14.7
|
|
|
—
|
|
|
14.7
|
|
|
4.2
|
|
|
(0.4)
|
|
|
3.8
|
|
|
Net cash provided
by/(used in) investing
activities
|
(37.9)
|
|
|
(328.6)
|
|
|
(366.5)
|
|
|
(194.8)
|
|
|
(349.7)
|
|
|
(544.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercises of share options
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
Purchases of treasury
shares
|
(76.6)
|
|
|
—
|
|
|
(76.6)
|
|
|
(119.6)
|
|
|
—
|
|
|
(119.6)
|
|
|
Dividends
paid
|
(108.1)
|
|
|
—
|
|
|
(108.1)
|
|
|
(98.0)
|
|
|
—
|
|
|
(98.0)
|
|
|
Excess tax benefits
from share-based
compensation
|
13.0
|
|
|
—
|
|
|
13.0
|
|
|
13.9
|
|
|
—
|
|
|
13.9
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.7)
|
|
|
—
|
|
|
(35.7)
|
|
|
Third-party capital
invested into CIP
|
—
|
|
|
12.9
|
|
|
12.9
|
|
|
—
|
|
|
40.1
|
|
|
40.1
|
|
|
Third-party capital
distributed by CIP
|
—
|
|
|
(33.9)
|
|
|
(33.9)
|
|
|
—
|
|
|
(48.6)
|
|
|
(48.6)
|
|
|
Third-party capital
invested into CSIP
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
100.8
|
|
|
—
|
|
|
100.8
|
|
|
Borrowings of debt by
CIP
|
—
|
|
|
935.9
|
|
|
935.9
|
|
|
—
|
|
|
715.0
|
|
|
715.0
|
|
|
Repayments of debt by
CIP
|
—
|
|
|
(577.0)
|
|
|
(577.0)
|
|
|
—
|
|
|
(161.1)
|
|
|
(161.1)
|
|
|
Net
borrowings/(repayments) under credit
facility
|
11.2
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net cash provided
by/(used in) financing
activities
|
(159.0)
|
|
|
337.9
|
|
|
178.9
|
|
|
(137.1)
|
|
|
545.4
|
|
|
408.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
(243.9)
|
|
|
—
|
|
|
(243.9)
|
|
|
(355.4)
|
|
|
—
|
|
|
(355.4)
|
|
|
Foreign exchange
movement on cash and cash
equivalents
|
(50.6)
|
|
|
—
|
|
|
(50.6)
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
—
|
|
|
1,514.2
|
|
|
1,331.2
|
|
|
—
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,219.7
|
|
|
$—
|
|
|
$1,219.7
|
|
|
$978.7
|
|
|
$—
|
|
|
$978.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 18 through 21 for notes to the reconciliation.
Invesco Ltd.
Notes
We are presenting the following non-GAAP performance measures:
net revenues (and by calculation, net revenue yield on AUM),
adjusted operating income (and by calculation, adjusted operating
margin), and adjusted net income attributable to Invesco Ltd. (and
by calculation, adjusted diluted earnings per share (EPS)). We
believe these non-GAAP measures provide greater transparency into
our business on an ongoing operations basis and allow more
appropriate comparisons with industry peers. Management uses these
performance measures to evaluate the business, and they are
consistent with internal management reporting. The most directly
comparable U.S. GAAP measures are operating revenues (and by
calculation, gross revenue yield on AUM), operating income (and by
calculation, operating margin), and net income attributable to
Invesco Ltd. (and by calculation, diluted EPS). Non-GAAP measures
should not be considered as substitutes for any measures derived in
accordance with U.S. GAAP and may not be comparable to other
similarly titled measures of other companies.
Notes 1 through 8 relate to the income statement reconciliations
presented on pages 9 through 11. Further explanations of the
reasons the company considers it appropriate to present these
adjustments in arriving at the non-GAAP measures can be found in
the company's Form 10-K.
Note 9 relates to the balance sheet and cash flow statement
reconciliations on pages 14 and 17, respectively.
Note 10 relates to the U.S. GAAP effective tax rate and the
impact of non-controlling interests in consolidated investment
products (CIP) and consolidated sponsored investment products
(CSIP) on the rate.
1. Acquisition/disposition related
adjustments
Acquisition/disposition related adjustments are comprised of
amounts incurred by the company in connection with business
combinations, including intangible asset amortization, and all
related tax effects. In addition, the net (income)/loss from
discontinued operations associated with the sale of the Atlantic
Trust business has been excluded from the non-GAAP income statement
information. Exclusion of this line item assists in evaluating the
continuing business performance and comparability with our results
period to period, and aids comparability with peer companies that
may not have similar discontinued operations.
Adjustment amounts related to acquisition and disposition
activities are as follows:
|
in
millions
|
Q1-15
|
|
Q4-14
|
|
Q1-14
|
|
|
Intangible
amortization
|
$2.7
|
|
$2.7
|
|
$3.8
|
|
|
Taxation on
amortization
|
(0.4)
|
|
(0.4)
|
|
(0.4)
|
|
|
Deferred
taxation
|
5.3
|
|
5.5
|
|
5.5
|
|
|
Other
acquisition-related items
|
1.2
|
|
—
|
|
—
|
|
|
Taxation on other
acquisition-related items
|
(0.5)
|
|
—
|
|
—
|
|
|
(Income)/loss from
discontinued operations, net of taxes
|
—
|
|
1.0
|
|
2.0
|
|
|
$8.3
|
|
$8.8
|
|
$10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Third-party distribution, service and advisory
expenses
Third-party distribution, service and advisory expenses include
renewal commissions, management fee rebates and distribution costs
(12b-1 and marketing support) paid to brokers and independent
financial advisors, and other service and administrative fees paid
to third parties, which are all closely linked to the revenue
earned by the company from AUM but vary extensively by geography
due to differences in distribution channels. The non-GAAP
presentation nets these costs against revenues to arrive at net
revenues, which serves to reflect these costs as revenue sharing
activities and to remove distortions caused by differing
distribution channel fees.
3. Proportional share of net revenues and operating
income from joint venture investments
The company has two joint ventures in China. Enhancing operations in China is one effort that the company believes
could improve its competitive position over time. U.S. GAAP
requires classification of the joint venture net income as equity
in earnings of unconsolidated affiliates. The non-GAAP adjustment
proportionately consolidates these joint ventures, serving to
illustrate the contribution of these joint ventures to the
operations of the business.
4. Consolidated investment products (CIP)
Management and performance fees earned by the company, which
were eliminated from operating revenues upon consolidation of the
CIPs, were $9.3 million in the first
quarter (fourth quarter 2014: $10.0
million; first quarter 2014: $8.4
million) while no other revenues (fourth quarter 2014:
$0.4 million, first quarter 2014:
none) were recorded by CIP in the first quarter. By deconsolidating
these products in the non-GAAP information, the management and
performance fees are added back while the other revenues are
excluded. Similarly, the operating expenses of the CIPs and impact
on interest income, interest expense, gains and losses, and
noncontrolling interests are removed in reconciling from the U.S.
GAAP income statement to the non-GAAP information. The
consolidation of the investment products resulted in a decrease of
$8.2 million in net income
attributable to Invesco Ltd. in the first quarter U.S. GAAP
earnings (fourth quarter 2014: $2.1
million increase; first quarter 2014: $5.3 million increase). The above adjustments
remove this impact.
5. Market appreciation / depreciation of deferred
compensation awards
This adjustment relates to deferred cash compensation that is
linked in value to investment products. The market appreciation of
the compensation liability was $3.9
million in the first quarter (fourth quarter 2014:
$3.2 million appreciation; first
quarter 2014: $4.4 million
appreciation) with an investment gain, inclusive of interest and
dividend income, of $5.1 million in
the first quarter (fourth quarter 2014: $1.7
million gain; first quarter 2014: $4.7 million gain) on the assets held to hedge
economically the compensation liability. This change in
compensation expense and the investment income/loss are adjusted in
arriving at the non-GAAP information and, net of the applicable tax
credit of $0.3 million in the first
quarter (fourth quarter 2014: $0.3
million credit; first quarter 2014: no credit), result in a
net income deduction of $0.9 million
for the first quarter (fourth quarter 2014: $1.2 million addition; first quarter 2014:
$0.3 million deduction).
6. Other reconciling items
|
in
millions
|
Q1-15
|
|
Q4-14
|
|
Q1-14
|
|
|
Foreign exchange
hedge gain (a)
|
($3.1)
|
|
$—
|
|
($0.2)
|
|
|
Business optimization
charges: (b)
|
|
|
|
|
|
|
|
Employee
compensation
|
—
|
|
—
|
|
7.2
|
|
|
Property, office and
technology
|
—
|
|
(2.7)
|
|
35.8
|
|
|
Taxation on business
optimization charges
|
—
|
|
0.3
|
|
(9.0)
|
|
|
Regulatory charge
(c)
|
—
|
|
—
|
|
31.1
|
|
|
Legal fees for
regulatory charge (c)
|
—
|
|
—
|
|
0.5
|
|
|
Taxation on legal
fees (c)
|
—
|
|
—
|
|
(0.1)
|
|
|
Fund reimbursement
expense (d)
|
—
|
|
1.6
|
|
5.3
|
|
|
Taxation fund
reimbursement expense (d)
|
—
|
|
(0.6)
|
|
(2.1)
|
|
|
U.K. FSCS levy refund
(e)
|
—
|
|
(4.7)
|
|
—
|
|
|
Taxation on U.K. FSCS
levy refund (e)
|
—
|
|
1.0
|
|
—
|
|
|
($3.1)
|
|
($5.1)
|
|
$68.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a. Included within other
gains and losses, net is the mark-to-market of foreign exchange put
option contracts intended to provide protection against the impact
of a significant decline in the Pound Sterling/U.S. Dollar foreign
exchange rate. These contracts provide coverage through
December 31, 2015. The adjustment
from U.S. GAAP to non-GAAP earnings removes the unrealized gains
and losses that result from market volatility.
b. Business optimization:
Operating expenses for the fourth quarter 2014 include a credit of
$2.7 million related to the provision
associated with the vacated leased properties. Operating expenses
for first quarter 2014 include property related charges of
$35.8 million associated with
vacating leased properties as part of a business optimization
initiative. Employee compensation expenses also includes severance
costs of $7.2 million related to the
initiative.
c. Operating expenses for
first quarter 2014 include a charge of £18.6 million ($31.1 million) in respect of the penalty under a
settlement of an enforcement proceeding reached with the U.K.
Financial Conduct Authority (FCA) pertaining to the company's
compliance with certain FCA rules and regulations for the period
from May 2008 to November 2012. This charge, together with
settlement-related legal costs of $0.5
million, has been recorded in general and administrative
expenses.
d. Included within general and
administrative expenses for the fourth quarter 2014 is a charge of
$1.6 million (first quarter 2014:
$5.3 million) in respect of a
multi-year fund reimbursement expense associated with historical
private equity management fees. The charge resulted primarily from
using a more appropriate methodology regarding the calculation of
offsets to management fees.
e. Included within general
and administrative expenses for the fourth quarter 2014 is a credit
of $4.7 million related to the
partial refund of a 2010 levy from the U.K. Financial Services
Compensation Scheme.
Each of these other reconciling items has been adjusted from
U.S. GAAP to arrive at the company's non-GAAP financial measures
for the reasons either outlined in the paragraphs above, due to the
unique character and magnitude of the reconciling item, or because
the item represents a continuation of a reconciling item adjusted
from U.S. GAAP in a prior period.
7. Definition of operating margin and adjusted
operating margin
Operating margin is equal to operating income divided by
operating revenues. Adjusted operating margin is equal to adjusted
operating income divided by net revenues.
8. Definition of adjusted diluted EPS
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 in this earnings release and the calculated earnings per
share amounts under the two class method.
9. Balance sheets and cash flow information
excluding CIP
U.S. GAAP condensed consolidating balance sheets and condensed
consolidated statements of cash flows reflect the consolidation of
CIP. The majority of the company's CIP balances are CLO-related.
The collateral assets of the CLOs are held solely to satisfy the
obligations of the CLOs. The company has no right to the benefits
from, nor does it bear the risks associated with, the collateral
assets held by the CLOs, beyond the company's minimal direct
investments in, and management and performance fees generated from,
CLOs. If the company were to liquidate, the collateral assets would
not be available to the general creditors of the company, and as a
result, the company does not consider them to be company assets.
Additionally, the investors in the CLOs have no recourse to the
general credit of the company for the notes issued by the CLOs. The
company therefore does not consider this debt to be a company
liability. Similarly, cash held by CIP is not available for general
use by the company, nor is company cash available for general use
by its CIP.
By deconsolidating the CIP in the condensed consolidated balance
sheet information excluding CIP, the assets, liabilities and equity
of the CIP are removed and the company's equity interest in the
investment products, accounted for as equity method and
available-for-sale investments, are replaced. The company considers
this a more representative presentation of the company's financial
position, and calculations made therefrom, such as debt-to-equity
ratios, are more meaningful excluding these balances.
The condensed consolidated cash flow information excluding CIP
present the cash flows of the company separately and before
consolidation of CIP, as 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
for the reasons noted.
10. U.S. GAAP Effective Tax Rate
The effective tax rate on continuing operations decreased to
26.3% for the first quarter, from 30.5% for the fourth quarter 2014
and 29.9% for the first quarter 2014. The impact of the
inclusion of non-controlling interests in CIP and CSIP reduced our
effective tax rate by 1.8% for the first quarter, compared to an
increase of 3.6% on our effective tax rate for the fourth quarter
2014 and a decrease of 2% for the first quarter 2014. First
quarter 2014 also included a 0.9% rate increase as a result of tax
legislation changes in New York
and a 3.2% rate increase as a result of an FCA settlement
referenced above.
|
Invesco Ltd.
Quarterly Assets Under Management
|
|
|
(in
billions)
|
Q1-15
|
|
Q4-14
|
|
%
Change
|
|
Q1-14
|
|
Beginning
Assets
|
$792.4
|
|
|
$789.6
|
|
|
0.4
|
%
|
|
$778.7
|
|
|
Long-term
inflows
|
50.5
|
|
|
46.0
|
|
|
9.8
|
%
|
|
50.2
|
|
|
Long-term
outflows
|
(40.2)
|
|
|
(43.5)
|
|
|
(7.6)
|
%
|
|
(43.7)
|
|
|
Long-term net
flows
|
10.3
|
|
|
2.5
|
|
|
312.0
|
%
|
|
6.5
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(3.2)
|
|
|
(18.8)
|
%
|
|
(1.3)
|
|
|
Net flows in
institutional money market funds
|
(6.0)
|
|
|
—
|
|
|
N/A
|
|
(6.1)
|
|
|
Total net
flows
|
1.7
|
|
|
(0.7)
|
|
|
N/A
|
|
(0.9)
|
|
|
Market gains and
losses/reinvestment
|
14.4
|
|
|
10.5
|
|
|
37.1
|
%
|
|
9.4
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Foreign currency
translation
|
(9.5)
|
|
|
(7.0)
|
|
|
35.7
|
%
|
|
0.1
|
|
|
Ending
Assets
|
$798.3
|
|
|
$792.4
|
|
|
0.7
|
%
|
|
$787.3
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$685.0
|
|
|
$676.3
|
|
|
1.3
|
%
|
|
$659.7
|
|
|
Average
AUM
|
$795.4
|
|
|
$789.8
|
|
|
0.7
|
%
|
|
$779.6
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
65.4
|
bps
|
|
65.0
|
bps
|
|
|
|
65.6
|
bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
63.0
|
bps
|
|
64.2
|
bps
|
|
|
|
64.0
|
bps
|
|
Net revenue yield
on AUM(b)
|
46.1
|
bps
|
|
45.9
|
bps
|
|
|
|
45.6
|
bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
43.5
|
bps
|
|
44.9
|
bps
|
|
|
|
43.8
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
|
December 31,
2014
|
$792.4
|
|
|
$651.0
|
|
|
$141.4
|
|
|
Long-term
inflows
|
50.5
|
|
|
40.6
|
|
|
9.9
|
|
|
Long-term
outflows
|
(40.2)
|
|
|
(33.8)
|
|
|
(6.4)
|
|
|
Long-term net
flows
|
10.3
|
|
|
6.8
|
|
|
3.5
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
Net flows in
institutional money market funds
|
(6.0)
|
|
|
(6.0)
|
|
|
—
|
|
|
Total net
flows
|
1.7
|
|
|
0.8
|
|
|
0.9
|
|
|
Market gains and
losses/reinvestment
|
14.4
|
|
|
13.0
|
|
|
1.4
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
(9.5)
|
|
|
(9.5)
|
|
|
—
|
|
|
March 31,
2015
|
$798.3
|
|
|
$655.3
|
|
|
$143.0
|
|
|
|
|
|
|
|
|
Average
AUM
|
$795.4
|
|
|
$652.7
|
|
|
$142.7
|
|
|
Gross revenue
yield on AUM(a)
|
65.4bps
|
|
76.8bps
|
|
13.3bps
|
|
Net revenue yield
on AUM(b)
|
46.1bps
|
|
53.3bps
|
|
13.3bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2014
|
$792.4
|
|
|
$532.5
|
|
|
$259.9
|
|
|
Long-term
inflows
|
50.5
|
|
|
40.3
|
|
|
10.2
|
|
|
Long-term
outflows
|
(40.2)
|
|
|
(32.8)
|
|
|
(7.4)
|
|
|
Long-term net
flows
|
10.3
|
|
|
7.5
|
|
|
2.8
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(6.0)
|
|
|
—
|
|
|
(6.0)
|
|
|
Total net
flows
|
1.7
|
|
|
4.9
|
|
|
(3.2)
|
|
|
Market gains and
losses/reinvestment
|
14.4
|
|
|
11.1
|
|
|
3.3
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
Foreign currency
translation
|
(9.5)
|
|
|
(7.1)
|
|
|
(2.4)
|
|
|
March 31,
2015
|
$798.3
|
|
|
$540.7
|
|
|
$257.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (d)
|
|
Alternatives(c)
|
|
December 31,
2014
|
$792.4
|
|
|
$384.4
|
|
|
$181.6
|
|
|
$50.6
|
|
|
$76.5
|
|
|
$99.3
|
|
|
Long-term
inflows
|
50.5
|
|
|
24.5
|
|
|
10.8
|
|
|
4.1
|
|
|
0.7
|
|
|
10.4
|
|
|
Long-term
outflows
|
(40.2)
|
|
|
(21.5)
|
|
|
(7.2)
|
|
|
(3.2)
|
|
|
(0.9)
|
|
|
(7.4)
|
|
|
Long-term net
flows
|
10.3
|
|
|
3.0
|
|
|
3.6
|
|
|
0.9
|
|
|
(0.2)
|
|
|
3.0
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(6.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
|
Total net
flows
|
1.7
|
|
|
0.4
|
|
|
3.6
|
|
|
0.9
|
|
|
(6.2)
|
|
|
3.0
|
|
|
Market gains and
losses/reinvestment
|
14.4
|
|
|
13.6
|
|
|
0.4
|
|
|
0.7
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
(9.5)
|
|
|
(5.6)
|
|
|
(1.2)
|
|
|
(1.6)
|
|
|
—
|
|
|
(1.1)
|
|
|
March 31,
2015
|
$798.3
|
|
|
$392.8
|
|
|
$184.4
|
|
|
$50.6
|
|
|
$70.2
|
|
|
$100.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$795.4
|
|
|
$388.1
|
|
|
$182.9
|
|
|
$49.7
|
|
|
$75.1
|
|
|
$99.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
December 31,
2014
|
$792.4
|
|
|
$532.1
|
|
|
$25.8
|
|
|
$105.1
|
|
|
$71.1
|
|
|
$58.3
|
|
|
Long-term
inflows
|
50.5
|
|
|
26.1
|
|
|
1.0
|
|
|
4.9
|
|
|
12.2
|
|
|
6.3
|
|
|
Long-term
outflows
|
(40.2)
|
|
|
(22.0)
|
|
|
(1.0)
|
|
|
(4.3)
|
|
|
(7.2)
|
|
|
(5.7)
|
|
|
Long-term net
flows
|
10.3
|
|
|
4.1
|
|
|
—
|
|
|
0.6
|
|
|
5.0
|
|
|
0.6
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(6.0)
|
|
|
(5.6)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
Total net
flows
|
1.7
|
|
|
(4.1)
|
|
|
(0.1)
|
|
|
0.5
|
|
|
5.0
|
|
|
0.4
|
|
|
Market gains and
losses/reinvestment
|
14.4
|
|
|
5.3
|
|
|
1.5
|
|
|
5.5
|
|
|
0.2
|
|
|
1.9
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
(9.5)
|
|
|
—
|
|
|
(2.3)
|
|
|
(4.8)
|
|
|
(2.1)
|
|
|
(0.3)
|
|
|
March 31,
2015
|
$798.3
|
|
|
$532.6
|
|
|
$24.9
|
|
|
$106.3
|
|
|
$74.2
|
|
|
$60.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco Ltd.
Quarterly Assets Under Management -
Passive(e)
|
|
|
(in
billions)
|
Q1-15
|
|
Q4-14
|
|
%
Change
|
|
Q1-14
|
|
Beginning
Assets
|
$141.4
|
|
|
$142.1
|
|
|
(0.5)
|
%
|
|
$139.7
|
|
|
Long-term
inflows
|
9.9
|
|
|
9.6
|
|
|
3.1
|
%
|
|
8.6
|
|
|
Long-term
outflows
|
(6.4)
|
|
|
(8.0)
|
|
|
(20.0)
|
%
|
|
(5.3)
|
|
|
Long-term net
flows
|
3.5
|
|
|
1.6
|
|
|
118.8
|
%
|
|
3.3
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(3.2)
|
|
|
(18.8)
|
%
|
|
(1.3)
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Total net
flows
|
0.9
|
|
|
(1.6)
|
|
|
N/A
|
|
2.0
|
|
|
Market gains and
losses/reinvestment
|
1.4
|
|
|
1.1
|
|
|
27.3
|
%
|
|
1.2
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
(0.2)
|
|
|
N/A
|
|
—
|
|
|
Ending
Assets
|
$143.0
|
|
|
$141.4
|
|
|
1.1
|
%
|
|
$142.9
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$103.2
|
|
|
$100.6
|
|
|
2.6
|
%
|
|
$95.2
|
|
|
Average
AUM
|
$142.7
|
|
|
$142.1
|
|
|
0.4
|
%
|
|
$140.6
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
13.3
|
bps
|
|
12.9
|
bps
|
|
|
|
12.7
|
bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
13.3
|
bps
|
|
12.9
|
bps
|
|
|
|
12.7
|
bps
|
|
Net revenue yield
on AUM(b)
|
13.3
|
bps
|
|
12.9
|
bps
|
|
|
|
12.7
|
bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
13.3
|
bps
|
|
12.9
|
bps
|
|
|
|
12.7
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2014
|
$141.4
|
|
|
$119.7
|
|
|
$21.7
|
|
|
Long-term
inflows
|
9.9
|
|
|
8.9
|
|
|
1.0
|
|
|
Long-term
outflows
|
(6.4)
|
|
|
(5.8)
|
|
|
(0.6)
|
|
|
Long-term net
flows
|
3.5
|
|
|
3.1
|
|
|
0.4
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.9
|
|
|
0.5
|
|
|
0.4
|
|
|
Market gains and
losses/reinvestment
|
1.4
|
|
|
1.3
|
|
|
0.1
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
March 31,
2015
|
$143.0
|
|
|
$120.8
|
|
|
$22.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
|
December 31,
2014
|
$141.4
|
|
|
$88.2
|
|
|
$41.1
|
|
|
$—
|
|
|
$—
|
|
|
$12.1
|
|
|
Long-term
inflows
|
9.9
|
|
|
6.5
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
Long-term
outflows
|
(6.4)
|
|
|
(3.5)
|
|
|
(1.2)
|
|
|
—
|
|
|
—
|
|
|
(1.7)
|
|
|
Long-term net
flows
|
3.5
|
|
|
3.0
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.9
|
|
|
0.4
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
Market gains and
losses/reinvestment
|
1.4
|
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
March 31,
2015
|
$143.0
|
|
|
$90.0
|
|
|
$42.0
|
|
|
$—
|
|
|
$—
|
|
|
$11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$142.7
|
|
|
$89.0
|
|
|
$42.1
|
|
|
$—
|
|
|
$—
|
|
|
$11.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
December 31,
2014
|
$141.4
|
|
|
$137.6
|
|
|
$0.2
|
|
|
$—
|
|
|
$1.8
|
|
|
$1.8
|
|
|
Long-term
inflows
|
9.9
|
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
Long-term
outflows
|
(6.4)
|
|
|
(6.1)
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.1)
|
|
|
Long-term net
flows
|
3.5
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Market gains and
losses/reinvestment
|
1.4
|
|
|
1.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
March 31,
2015
|
$143.0
|
|
|
$139.0
|
|
|
$0.3
|
|
|
$—
|
|
|
$1.8
|
|
|
$1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these
tables.
Invesco Ltd.
Footnotes to the Assets
Under Management Tables
(a) Gross revenue yield on AUM is equal to
annualized total operating revenues divided by average AUM,
excluding China joint venture (JV)
AUM. For quarterly AUM, our share of the average AUM in the first
quarter for our JVs in China was
$5.0 billion (fourth quarter 2014:
$4.7 billion; first quarter 2014:
$5.1 billion). It is appropriate to
exclude the average AUM of our China JVs 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 the JVs is recorded as equity
in earnings of unconsolidated affiliates on our Condensed
Consolidated Statements of Income. Gross revenue yield, the most
comparable U.S. GAAP-based measure to net revenue yield, is not
considered a meaningful effective fee rate measure. The numerator
of the gross revenue yield measure, operating revenues, excludes
the management fees earned from CIP; however, the denominator of
the measure includes the AUM of these investment products.
Therefore, the gross revenue yield measure is not considered
representative of the company's true effective fee rate from AUM.
The company evaluates net revenue yield instead. See the
Reconciliations of U.S. GAAP to Non-GAAP information on pages 9
through 11 of this release for a reconciliation of operating
revenues to net revenues.
(b) 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 9 through 11 of this
release for a reconciliation of operating revenues to net
revenues.
(c) The alternatives asset class includes
absolute return, Asian direct real estate, commodities, currencies,
European direct real estate, financial structures, Global REITS,
private capital - direct, private capital - fund of funds, Risk
Parity, U.S. direct real estate, and U.S. REITS.
(d) Ending AUM as of March 31, 2015 includes
$66.3 billion in institutional money
market AUM and $38.9 billion in
PowerShares QQQ AUM. Ending retail money market AUM as of
March 31, 2015, included in long-term AUM, were $3.9 billion.
(e) Passive AUM includes ETFs, UITs, non-fee
earning leverage and other passive mandates. Active AUM are total
AUM less Passive AUM.
(f) Dispositions during the first quarter 2015
resulted in a $0.7 billion decrease
in AUM representing exchange traded notes that did not transfer
over as part of the agreement with Deutsche Bank to transition the
investment management of the PowerShares DB suite of commodity
exchange traded funds to Invesco.
|
Invesco Ltd.
Investment Capabilities Performance Overview
|
|
|
|
|
Benchmark
Comparison
|
Peer Group
Comparison
|
|
|
% of AUM Ahead of
Benchmark
|
% of AUM In Top Half
of
Peer Group
|
|
Equities
|
|
1yr
|
3yr
|
5yr
|
1yr
|
3yr
|
5yr
|
|
U.S. Core
|
15
|
%
|
20
|
%
|
29
|
%
|
33
|
%
|
35
|
%
|
48
|
%
|
|
U.S.
Growth
|
12
|
%
|
38
|
%
|
25
|
%
|
51
|
%
|
51
|
%
|
25
|
%
|
|
U.S. Value
|
38
|
%
|
66
|
%
|
56
|
%
|
40
|
%
|
100
|
%
|
77
|
%
|
|
Sector
|
72
|
%
|
61
|
%
|
75
|
%
|
25
|
%
|
10
|
%
|
17
|
%
|
|
U.K.
|
99
|
%
|
100
|
%
|
100
|
%
|
99
|
%
|
100
|
%
|
98
|
%
|
|
Canadian
|
17
|
%
|
52
|
%
|
52
|
%
|
—
|
%
|
39
|
%
|
52
|
%
|
|
Asian
|
20
|
%
|
91
|
%
|
82
|
%
|
32
|
%
|
70
|
%
|
68
|
%
|
|
European
|
52
|
%
|
98
|
%
|
100
|
%
|
57
|
%
|
86
|
%
|
94
|
%
|
|
Global
|
27
|
%
|
71
|
%
|
86
|
%
|
60
|
%
|
83
|
%
|
86
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
85
|
%
|
86
|
%
|
99
|
%
|
86
|
%
|
86
|
%
|
98
|
%
|
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
66
|
%
|
67
|
%
|
67
|
%
|
91
|
%
|
93
|
%
|
94
|
%
|
|
U.S. Fixed
Income
|
85
|
%
|
93
|
%
|
92
|
%
|
78
|
%
|
87
|
%
|
96
|
%
|
|
Global Fixed
Income
|
60
|
%
|
96
|
%
|
67
|
%
|
52
|
%
|
56
|
%
|
55
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
90
|
%
|
39
|
%
|
46
|
%
|
57
|
%
|
61
|
%
|
59
|
%
|
|
Balanced
|
51
|
%
|
54
|
%
|
71
|
%
|
42
|
%
|
93
|
%
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: AUM measured in the one-, three-, and five-year peer
group rankings represents 58%, 58%, and 58% of total Invesco AUM,
respectively, and AUM measured versus benchmark on a one-, three-,
and five-year basis represents 70%, 69%, and 68% of total Invesco
AUM, respectively, as of 3/31/2015. Peer group rankings are sourced
from a widely-used third party ranking agency in each fund's market
(Lipper, Morningstar, IMA, Russell, Mercer, eVestment Alliance,
SITCA, Value Research) and are asset-weighted in USD. Rankings are
as of prior quarter-end for most institutional products and
preceding month-end for Australian retail funds due to their late
release by third parties. Rankings for the most representative fund
in each GIPS composite are applied to all products within each GIPS
composite. Performance assumes the reinvestment of dividends. Past
performance is not indicative of future results and may not reflect
an investor's experience. Excludes passive products, closed-end
funds, private equity limited partnerships, non-discretionary
funds, unit investment trusts, fund of funds with component funds
managed by Invesco, stable value building block funds, and CDOs.
Certain funds and products were excluded from the analysis because
of limited benchmark or peer group data. Had these been available,
results may have been different. These results are preliminary and
subject to revision.
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SOURCE Invesco Ltd.