ATLANTA, July 30, 2015
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial
results for the three months ended June 30, 2015.
"In spite of a volatile global market environment, Invesco
continues to provide strong, long-term investment performance to
our clients," said Martin L.
Flanagan, president and CEO. "The solid investment
performance across a broad range of capabilities provided positive
outcomes to our clients and helped drive strong long-term net
inflows of $5.9 billion during the
quarter."
|
Q2-15
|
|
Q1-15
|
|
Q2-15
vs.
Q1-15
|
|
Q2-14
|
|
Q2-15 vs.
Q2-14
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$936.6 m
|
|
|
$917.5 m
|
|
|
2.1
|
%
|
|
$901.0 m
|
|
|
4.0
|
%
|
|
|
Operating
income
|
$390.2 m
|
|
|
$374.4 m
|
|
|
4.2
|
%
|
|
$377.0 m
|
|
|
3.5
|
%
|
|
|
Operating
margin
|
41.7
|
%
|
|
40.8
|
%
|
|
|
|
41.8
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$271.4 m
|
|
|
$272.1 m
|
|
|
(0.3)
|
%
|
|
$282.4 m
|
|
|
(3.9)
|
%
|
|
|
Diluted
EPS
|
$0.63
|
|
|
$0.63
|
|
|
—
|
%
|
|
$0.65
|
|
|
(3.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures(2)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,318.1 m
|
|
|
$1,291.6 m
|
|
|
2.1
|
%
|
|
$1,289.9 m
|
|
|
2.2
|
%
|
|
|
Operating
income
|
$364.0 m
|
|
|
$338.1 m
|
|
|
7.7
|
%
|
|
$354.8 m
|
|
|
2.6
|
%
|
|
|
Operating
margin
|
27.6
|
%
|
|
26.2
|
%
|
|
|
|
27.5
|
%
|
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$257.3 m
|
|
|
$259.6 m
|
|
|
(0.9)
|
%
|
|
$274.5 m
|
|
|
(6.3)
|
%
|
|
|
Diluted
EPS
|
$0.60
|
|
|
$0.60
|
|
|
—
|
%
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$803.6 bn
|
|
|
$798.3 bn
|
|
|
0.7
|
%
|
|
$802.4 bn
|
|
|
0.1
|
%
|
|
|
Average
AUM
|
$810.9 bn
|
|
|
$795.4 bn
|
|
|
1.9
|
%
|
|
$790.1 bn
|
|
|
2.6
|
%
|
|
(1) The adjusted financial measures are all non-GAAP
financial measures. See the information on pages 10 through 12 for
a reconciliation to their most directly comparable U.S. GAAP
measures and the notes beginning on page 19 for other important
disclosures.
(2) U.S. GAAP measures include the results of
discontinued operations in 2014.
Assets Under Management
Total assets under management (AUM) at June 30, 2015, were
$803.6 billion (March 31, 2015:
$798.3 billion), an increase of
$5.3 billion during the second
quarter. Total net inflows were $3.0
billion for the second quarter, as detailed below:
|
Summary of net
flows (in billions)
|
|
Q2-15
|
|
Q1-15
|
|
Q2-14
|
|
Active
|
|
$5.4
|
|
|
$6.8
|
|
|
($8.0)
|
|
|
Passive
|
|
0.5
|
|
|
3.5
|
|
|
1.1
|
|
|
Long-term net
flows
|
|
5.9
|
|
|
10.3
|
|
|
(6.9)
|
|
|
Invesco PowerShares
QQQ
|
|
(0.3)
|
|
|
(2.6)
|
|
|
(3.0)
|
|
|
Money
market
|
|
(2.6)
|
|
|
(6.0)
|
|
|
1.1
|
|
|
Total net
flows
|
|
$3.0
|
|
|
$1.7
|
|
|
($8.8)
|
|
|
|
|
|
|
|
|
Net market losses led to a $6.2
billion decrease in AUM during the second quarter, compared
to a $18.2 billion increase in the
first quarter 2015. Foreign exchange rate movements led to a
$8.5 billion increase in AUM during
the second quarter, compared to a $13.3
billion decrease in the first quarter 2015. Average AUM
during the second quarter were $810.9
billion, compared to $795.4
billion for the first quarter 2015, an increase of 1.9%.
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 second quarter 2015
non-GAAP financial information, as compared to the first quarter
2015. 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 10 through 12 of
this release.
Net revenues increased by $19.1
million (2.1%) to $936.6
million in the second quarter, from $917.5 million in the first quarter 2015. The
change was due to increased investment management fees partially
offset by reduced performance fees. Foreign exchange rate changes
increased second quarter net revenues by $5.1 million compared to the first quarter
2015.
Investment management fees, as adjusted, increased $59.7 million (5.8%) to $1,083.3 million in the second quarter, from
$1,023.6 million in the first quarter
2015. The increase reflects the higher average AUM, the additional
day in the second quarter compared to the first quarter 2015, and
the impact of growth in higher yielding products. Foreign exchange
rate changes increased second quarter management fees by
$7.2 million when compared to first
quarter 2015.
Service and distribution fees, as adjusted, increased
$6.2 million (2.9%) to $219.6 million in the second quarter, from
$213.4 million in the first quarter
2015. The increase in service and distribution fees also
reflects the AUM changes and the higher day-count in the second
quarter. Foreign exchange rate changes increased second
quarter service and distribution fees by $0.2 million when compared to first quarter
2015.
Performance fees, as adjusted, were $13.1
million in the second quarter, compared to $51.7 million in the first quarter 2015. The
second quarter performance fees were generated from a variety of
investment capabilities including $7.1
million generated from Asia
Pacific managed products. Foreign exchange rate changes had
no impact on performance fees in the second quarter.
Other revenues, as adjusted, increased by $6.7 million (21.5%) to $37.9 million in the second quarter, compared to
$31.2 million in the first quarter
2015, due to increased transaction fees from real estate fund
activities. Foreign exchange rate changes decreased other revenues
by $0.1 million in the second quarter
when compared to the first quarter 2015.
Third-party distribution, service and advisory expenses, as
adjusted, increased by $14.9 million
(3.7%) to $417.3 million in the
second quarter from $402.4 million in
the first quarter 2015, consistent with the revenues derived from
the related retail AUM. Foreign exchange rate changes increased
third-party distribution, service and advisory expenses by
$2.2 million in the second quarter
when compared to the first quarter 2015.
Total operating expenses, as adjusted, increased by $3.3 million (0.6%) to $546.4 million in the second quarter from
$543.1 million in the first quarter
2015. Foreign exchange rate changes increased second quarter
operating expenses by $2.3 million
when compared to the first quarter 2015.
Employee compensation expenses, as adjusted, decreased by
$11.3 million (3.1%) to $351.4 million in the second quarter, from
$362.7 million in the first quarter
2015. The first quarter included seasonally higher payroll
tax and additional variable compensation associated with the higher
performance fees. These expense reductions were partially offset by
a full quarter of higher base salaries that were effective from
March 1. Foreign exchange rate
changes increased second quarter employee compensation expenses by
$1.7 million when compared to the
first quarter 2015.
Marketing expenses, as adjusted, increased by $3.3 million (12.0%) to $30.7 million in the second quarter, from
$27.4 million in the first quarter
2015. Foreign exchange rate changes increased second quarter
marketing expenses by $0.2 million
when compared to the first quarter 2015.
Property, office and technology expenses, as adjusted, increased
$4.4 million (5.7%) to $82.2 million in the second quarter, from
$77.8 million in the first quarter
2015. The increase reflects higher property related expenses in the
second quarter compared to the first quarter. Foreign exchange rate
changes increased second quarter property, office and technology
expenses by $0.3 million when
compared to the first quarter 2015.
General and administrative expenses, as adjusted, increased
$6.9 million (9.2%) to $82.1 million in the second quarter, from
$75.2 million in the first quarter
2015. The second quarter included $3.6
million of additional fund and regulatory related expenses
together with $2.0 million of
additional professional services expenses associated with
technology initiatives. Foreign exchange rate changes increased
second quarter general and administrative expenses by $0.1 million when compared to the first quarter
2015.
Non-operating other income and expenses, as adjusted, included
equity in earnings from investments of $2.0
million in the second quarter, compared to $7.5 million in the first quarter 2015. Other
gains and losses, net in the second quarter were a gain of
$2.1 million compared to a first
quarter 2015 loss of $2.7 million.
Separately, other income of consolidated sponsored investment
products (CSIP) was a gain of $5.1
million in the second quarter, of which $2.4 million is attributable to noncontrolling
interests. The first quarter 2015 included a CSIP gain of
$9.4 million, of which $4.0 million was attributable to noncontrolling
interests.
The adjusted effective tax rate increased to 28.7% for the
second quarter, from 26.3% for the first quarter 2015. The
second quarter included a 2.2% rate increase from a non-cash
expense for the impact of New York
City tax legislation enacted during the quarter.
U.S. GAAP Earnings
This section comments on significant items that have impacted
the company's second quarter 2015 results as presented in
accordance with U.S. GAAP.
Operating revenues increased 2.1% to $1,318.1 million in the second quarter, from
$1,291.6 million in the first quarter
2015. Operating expenses increased by 0.1% to $954.1 million in the second quarter, from
$953.5 million in the first quarter
2015.
The effective tax rate on continuing operations increased to
31.0% for the second quarter, from 26.3% for the first quarter
2015. See note 10 on page 22 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 15
and 18, 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)
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
June 30,
2015
|
|
December 31,
2014
|
|
in
millions
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,465.7
|
|
|
$1,514.2
|
|
|
$1,465.7
|
|
|
$1,514.2
|
|
|
Investments of
CIP
|
|
—
|
|
|
—
|
|
|
6,185.1
|
|
|
5,762.8
|
|
|
Total
assets(1)
|
|
$16,399.5
|
|
|
$14,233.1
|
|
|
$22,898.3
|
|
|
$20,462.5
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,597.5
|
|
|
1,589.3
|
|
|
1,597.5
|
|
|
1,589.3
|
|
|
Debt of
CIP
|
|
—
|
|
|
—
|
|
|
5,432.1
|
|
|
5,149.6
|
|
|
Long-term debt /
Long-term debt plus CIP debt
|
|
1,597.5
|
|
|
1,589.3
|
|
|
7,029.6
|
|
|
6,738.9
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities(1)
|
|
$7,885.2
|
|
|
$5,746.7
|
|
|
$13,644.1
|
|
|
$11,177.2
|
|
|
|
|
|
|
|
|
|
|
|
Total permanent
equity(1)
|
|
$8,345.2
|
|
|
$8,320.9
|
|
|
$9,085.1
|
|
|
$9,119.8
|
|
|
|
|
|
|
|
|
|
|
|
Debt/Equity %
(1) (2)
|
|
19.1
|
%
|
|
19.1
|
%
|
|
77.4
|
%
|
|
73.9
|
%
|
(1) The balance sheet line items excluding CIP are
non-GAAP financial measures. See the reconciliation information on
page 15 for balance sheet information before and after the
consolidation of investment products.
(2) The debt/equity ratio excluding CIP is a
non-GAAP financial measure. The debt/equity ratio is calculated as
long-term debt divided by total permanent equity for the balance
sheet information excluding CIP and long-term debt plus debt of CIP
divided by total permanent equity for the balance sheet including
CIP.
As of June 30, 2015, the company's cash and cash
equivalents were $1,465.7 million,
with long-term debt of $1,597.5
million. The credit facility balance was $7.9 million at June 30, 2015, compared to
$11.2 million at March 31, 2015
and zero at December 31, 2014.
Dividends paid in the second quarter were $116.5 million. Today the company is announcing a
second-quarter cash dividend of 27.0
cents. The dividend is payable on September 4, 2015, to
shareholders of record at the close of business on August 20,
2015, with an ex-dividend date of August 18, 2015.
During the second quarter the company repurchased $81.6 million of its common shares on the open
market, representing 2.0 million shares at a weighted average share
price of $40.14. This brings
year-to-date repurchases to $158.1
million representing 4.0 million shares.
Headcount
As of June 30, 2015, the company had 6,431 employees,
compared to 6,360 employees as of March 31, 2015.
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, July 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. An audio replay of the conference call will
be available until Thursday, August 13,
2015 at 5:00 p.m. ET by
calling 1-866-515-1589 for U.S. and Canadian callers or
1-203-369-2019 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)
|
|
|
Q2-15
|
|
Q1-15
|
|
%
Change
|
|
Q2-14
|
|
%
Change
|
|
Adjusted
revenues:
|
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$1,083.3
|
|
|
$1,023.6
|
|
|
5.8
|
%
|
|
$1,054.5
|
|
|
2.7
|
%
|
|
Service and
distribution fees
|
219.6
|
|
|
213.4
|
|
|
2.9
|
%
|
|
214.7
|
|
|
2.3
|
%
|
|
Performance
fees
|
13.1
|
|
|
51.7
|
|
|
(74.7)
|
%
|
|
7.3
|
|
|
79.5
|
%
|
|
Other
|
37.9
|
|
|
31.2
|
|
|
21.5
|
%
|
|
38.9
|
|
|
(2.6)
|
%
|
|
Third-party
distribution, service and advisory
|
(417.3)
|
|
|
(402.4)
|
|
|
3.7
|
%
|
|
(414.4)
|
|
|
0.7
|
%
|
|
Net
revenues
|
936.6
|
|
|
917.5
|
|
|
2.1
|
%
|
|
901.0
|
|
|
4.0
|
%
|
|
Adjusted operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
351.4
|
|
|
362.7
|
|
|
(3.1)
|
%
|
|
344.6
|
|
|
2.0
|
%
|
|
Marketing
|
30.7
|
|
|
27.4
|
|
|
12.0
|
%
|
|
30.9
|
|
|
(0.6)
|
%
|
|
Property, office
and technology
|
82.2
|
|
|
77.8
|
|
|
5.7
|
%
|
|
76.1
|
|
|
8.0
|
%
|
|
General and
administrative
|
82.1
|
|
|
75.2
|
|
|
9.2
|
%
|
|
72.4
|
|
|
13.4
|
%
|
|
Total adjusted
operating expenses
|
546.4
|
|
|
543.1
|
|
|
0.6
|
%
|
|
524.0
|
|
|
4.3
|
%
|
|
Adjusted operating
income
|
390.2
|
|
|
374.4
|
|
|
4.2
|
%
|
|
377.0
|
|
|
3.5
|
%
|
|
Adjusted other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
2.0
|
|
|
7.5
|
|
|
(73.3)
|
%
|
|
4.1
|
|
|
(51.2)
|
%
|
|
Interest and
dividend income
|
4.0
|
|
|
4.8
|
|
|
(16.7)
|
%
|
|
3.9
|
|
|
2.6
|
%
|
|
Interest
expense
|
(19.6)
|
|
|
(18.7)
|
|
|
4.8
|
%
|
|
(18.2)
|
|
|
7.7
|
%
|
|
Other gains and
losses, net
|
2.1
|
|
|
(2.7)
|
|
|
N/A
|
|
14.8
|
|
|
(85.8)
|
%
|
|
Other
income/(expense) of CSIP, net
|
5.1
|
|
|
9.4
|
|
|
(45.7)
|
%
|
|
7.7
|
|
|
(33.8)
|
%
|
|
Adjusted income
before income taxes
|
383.8
|
|
|
374.7
|
|
|
2.4
|
%
|
|
389.3
|
|
|
(1.4)
|
%
|
|
Adjusted income
tax provision
|
(110.0)
|
|
|
(98.6)
|
|
|
11.6
|
%
|
|
(103.3)
|
|
|
6.5
|
%
|
|
Adjusted net
income
|
273.8
|
|
|
276.1
|
|
|
(0.8)
|
%
|
|
286.0
|
|
|
(4.3)
|
%
|
|
Adjusted net
(income)/loss attributable to noncontrolling interests in
consolidated entities
|
(2.4)
|
|
|
(4.0)
|
|
|
(40.0)
|
%
|
|
(3.6)
|
|
|
(33.3)
|
%
|
|
Adjusted net
income attributable to Invesco Ltd.
|
$271.4
|
|
|
$272.1
|
|
|
(0.3)
|
%
|
|
$282.4
|
|
|
(3.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
$0.63
|
|
|
$0.63
|
|
|
—
|
%
|
|
$0.65
|
|
|
(3.1)
|
%
|
|
Average diluted
shares outstanding
|
432.2
|
|
|
432.5
|
|
|
(0.1)
|
%
|
|
436.4
|
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Ending
headcount
|
6,431
|
|
|
6,360
|
|
|
1.1
|
%
|
|
6,070
|
|
|
5.9
|
%
|
|
Ending AUM (in
billions)
|
$803.6
|
|
|
$798.3
|
|
|
0.7
|
%
|
|
$802.4
|
|
|
0.1
|
%
|
|
Average AUM (in
billions)
|
$810.9
|
|
|
$795.4
|
|
|
1.9
|
%
|
|
$790.1
|
|
|
2.6
|
%
|
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Income Statements
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q2-15
|
|
Q1-15
|
|
%
Change
|
|
Q2-14
|
|
%
Change
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$1,055.7
|
|
|
$1,001.4
|
|
|
5.4
|
%
|
|
$1,031.9
|
|
|
2.3
|
%
|
|
Service and
distribution fees
|
219.6
|
|
|
213.4
|
|
|
2.9
|
%
|
|
214.7
|
|
|
2.3
|
%
|
|
Performance
fees
|
6.7
|
|
|
46.8
|
|
|
(85.7)
|
%
|
|
5.0
|
|
|
34.0
|
%
|
|
Other
|
36.1
|
|
|
30.0
|
|
|
20.3
|
%
|
|
38.3
|
|
|
(5.7)
|
%
|
|
Total operating
revenues
|
1,318.1
|
|
|
1,291.6
|
|
|
2.1
|
%
|
|
1,289.9
|
|
|
2.2
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
347.2
|
|
|
360.9
|
|
|
(3.8)
|
%
|
|
342.9
|
|
|
1.3
|
%
|
|
Third-party
distribution, service and advisory
|
413.3
|
|
|
399.1
|
|
|
3.6
|
%
|
|
410.6
|
|
|
0.7
|
%
|
|
Marketing
|
29.7
|
|
|
26.7
|
|
|
11.2
|
%
|
|
30.2
|
|
|
(1.7)
|
%
|
|
Property, office
and technology
|
74.8
|
|
|
76.9
|
|
|
(2.7)
|
%
|
|
75.3
|
|
|
(0.7)
|
%
|
|
General and
administrative
|
89.1
|
|
|
89.9
|
|
|
(0.9)
|
%
|
|
76.1
|
|
|
17.1
|
%
|
|
Total operating
expenses
|
954.1
|
|
|
953.5
|
|
|
0.1
|
%
|
|
935.1
|
|
|
2.0
|
%
|
|
Operating
income
|
364.0
|
|
|
338.1
|
|
|
7.7
|
%
|
|
354.8
|
|
|
2.6
|
%
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
12.0
|
|
|
11.8
|
|
|
1.7
|
%
|
|
5.5
|
|
|
118.2
|
%
|
|
Interest and
dividend income
|
2.6
|
|
|
2.5
|
|
|
4.0
|
%
|
|
3.1
|
|
|
(16.1)
|
%
|
|
Interest
expense
|
(19.6)
|
|
|
(18.7)
|
|
|
4.8
|
%
|
|
(18.2)
|
|
|
7.7
|
%
|
|
Other gains and
losses, net
|
(8.8)
|
|
|
2.7
|
|
|
N/A
|
|
16.2
|
|
|
N/A
|
|
Other
income/(expense) of CSIP, net
|
5.1
|
|
|
9.4
|
|
|
(45.7)
|
%
|
|
7.7
|
|
|
(33.8)
|
%
|
|
Consolidated
investment products (CIP):
|
|
|
|
|
|
|
|
|
|
|
Interest
income of CIP
|
65.1
|
|
|
60.2
|
|
|
8.1
|
%
|
|
48.0
|
|
|
35.6
|
%
|
|
Interest
expense of CIP
|
(47.3)
|
|
|
(45.1)
|
|
|
4.9
|
%
|
|
(30.3)
|
|
|
56.1
|
%
|
|
Other
gains/(losses) of CIP, net
|
(19.7)
|
|
|
24.4
|
|
|
N/A
|
|
36.8
|
|
|
N/A
|
|
Income from
continuing operations before income taxes
|
353.4
|
|
|
385.3
|
|
|
(8.3)
|
%
|
|
423.6
|
|
|
(16.6)
|
%
|
|
Income tax
provision
|
(109.4)
|
|
|
(101.3)
|
|
|
8.0
|
%
|
|
(107.0)
|
|
|
2.2
|
%
|
|
Income from
continuing operations, net of taxes
|
244.0
|
|
|
284.0
|
|
|
(14.1)
|
%
|
|
316.6
|
|
|
(22.9)
|
%
|
|
Income/(loss) from
discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
N/A
|
|
0.2
|
|
|
N/A
|
|
Net
income
|
244.0
|
|
|
284.0
|
|
|
(14.1)
|
%
|
|
316.8
|
|
|
(23.0)
|
%
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
13.3
|
|
|
(24.4)
|
|
|
N/A
|
|
(42.3)
|
|
|
N/A
|
|
Net income
attributable to Invesco Ltd.
|
$257.3
|
|
|
$259.6
|
|
|
(0.9)
|
%
|
|
$274.5
|
|
|
(6.3)
|
%
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
---Basic EPS from
continuing operations
|
$0.60
|
|
|
$0.60
|
|
|
—
|
%
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
---Basic EPS from
discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
$—
|
|
|
N/A
|
|
---Total
basic
|
$0.60
|
|
|
$0.60
|
|
|
—
|
%
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
---Diluted EPS
from continuing operations
|
$0.60
|
|
|
$0.60
|
|
|
—
|
%
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
---Diluted EPS
from discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
$—
|
|
|
N/A
|
|
---Total
diluted
|
$0.60
|
|
|
$0.60
|
|
|
—
|
%
|
|
$0.63
|
|
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
---basic
|
431.9
|
|
|
432.2
|
|
|
(0.1)
|
%
|
|
435.7
|
|
|
(0.9)
|
%
|
|
---diluted
|
432.2
|
|
|
432.5
|
|
|
(0.1)
|
%
|
|
436.4
|
|
|
(1.0)
|
%
|
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Income Statements
(Unaudited, in
millions, other than per share amounts)
|
|
|
Six months ended
June 30,
|
|
|
|
2015
|
|
2014
|
|
%
Change
|
|
Operating
revenues:
|
|
|
|
|
|
|
Investment
management fees
|
$2,057.1
|
|
|
$1,997.3
|
|
|
3.0
|
%
|
|
Service and
distribution fees
|
433.0
|
|
|
453.3
|
|
|
(4.5)
|
%
|
|
Performance
fees
|
53.5
|
|
|
36.1
|
|
|
48.2
|
%
|
|
Other
|
66.1
|
|
|
72.7
|
|
|
(9.1)
|
%
|
|
Total operating
revenues
|
2,609.7
|
|
|
2,559.4
|
|
|
2.0
|
%
|
|
Operating
expenses:
|
|
|
|
|
|
|
Employee
compensation
|
708.1
|
|
|
705.0
|
|
|
0.4
|
%
|
|
Third-party
distribution, service and advisory
|
812.4
|
|
|
816.0
|
|
|
(0.4)
|
%
|
|
Marketing
|
56.4
|
|
|
53.6
|
|
|
5.2
|
%
|
|
Property, office
and technology
|
151.7
|
|
|
188.0
|
|
|
(19.3)
|
%
|
|
General and
administrative
|
179.0
|
|
|
197.7
|
|
|
(9.5)
|
%
|
|
Total operating
expenses
|
1,907.6
|
|
|
1,960.3
|
|
|
(2.7)
|
%
|
|
Operating
income
|
702.1
|
|
|
599.1
|
|
|
17.2
|
%
|
|
Other
income/(expense):
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
23.8
|
|
|
15.5
|
|
|
53.5
|
%
|
|
Interest and
dividend income
|
5.1
|
|
|
6.0
|
|
|
(15.0)
|
%
|
|
Interest
expense
|
(38.3)
|
|
|
(36.9)
|
|
|
3.8
|
%
|
|
Other gains and
losses, net
|
(6.1)
|
|
|
22.8
|
|
|
N/A
|
|
Other
income/(expense) of CSIP, net
|
14.5
|
|
|
15.9
|
|
|
(8.8)
|
%
|
|
Consolidated
investment products (CIP):
|
|
|
|
|
|
|
Interest
income of CIP
|
125.3
|
|
|
96.3
|
|
|
30.1
|
%
|
|
Interest
expense of CIP
|
(92.4)
|
|
|
(60.6)
|
|
|
52.5
|
%
|
|
Other
gains/(losses) of CIP, net
|
4.7
|
|
|
63.3
|
|
|
(92.6)
|
%
|
|
Income from
continuing operations before income taxes
|
738.7
|
|
|
721.4
|
|
|
2.4
|
%
|
|
Income tax
provision
|
(210.7)
|
|
|
(196.0)
|
|
|
7.5
|
%
|
|
Income from
continuing operations, net of taxes
|
528.0
|
|
|
525.4
|
|
|
0.5
|
%
|
|
Income/(loss) from
discontinued operations, net of taxes
|
—
|
|
|
(1.8)
|
|
|
N/A
|
|
Net
income
|
528.0
|
|
|
523.6
|
|
|
0.8
|
%
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(11.1)
|
|
|
(61.3)
|
|
|
(81.9)
|
%
|
|
Net income
attributable to Invesco Ltd.
|
$516.9
|
|
|
$462.3
|
|
|
11.8
|
%
|
|
Earnings per
share:
|
|
|
|
|
|
|
---Basic EPS from
continuing operations
|
$1.20
|
|
|
$1.06
|
|
|
13.2
|
%
|
|
---Basic EPS from
discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
---Total
basic
|
$1.20
|
|
|
$1.06
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
---Diluted EPS
from continuing operations
|
$1.20
|
|
|
$1.06
|
|
|
13.2
|
%
|
|
---Diluted EPS
from discontinued operations
|
$—
|
|
|
$—
|
|
|
N/A
|
|
---Total
diluted
|
$1.20
|
|
|
$1.06
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
---basic
|
432.0
|
|
|
436.2
|
|
|
(1.0)
|
%
|
|
---diluted
|
432.3
|
|
|
436.9
|
|
|
(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
June 30, 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
|
|
$1,055.7
|
|
|
$19.6
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$8.0
|
|
|
$—
|
|
|
$1,083.3
|
|
|
Service and
distribution fees
|
|
219.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
219.6
|
|
|
Performance
fees
|
|
6.7
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
13.1
|
|
|
Other
|
|
36.1
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37.9
|
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(4.0)
|
|
|
(413.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(417.3)
|
|
|
Total operating
revenues reconciled to net revenues
|
|
1,318.1
|
|
|
21.4
|
|
|
(413.3)
|
|
|
—
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
|
936.6
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
347.2
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
|
(1.3)
|
|
|
—
|
|
|
—
|
|
|
351.4
|
|
|
Third-party
distribution, service and advisory
|
|
413.3
|
|
|
—
|
|
|
(413.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Marketing
|
|
29.7
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.7
|
|
|
Property, office and
technology
|
|
74.8
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|
82.2
|
|
|
General and
administrative
|
|
89.1
|
|
|
1.8
|
|
|
—
|
|
|
(2.6)
|
|
|
—
|
|
|
(1.5)
|
|
|
(4.7)
|
|
|
82.1
|
|
|
Total operating
expenses
|
|
954.1
|
|
|
9.3
|
|
|
(413.3)
|
|
|
(2.6)
|
|
|
(1.3)
|
|
|
(1.5)
|
|
|
1.7
|
|
|
546.4
|
|
|
Operating income
reconciled to adjusted operating income
|
|
364.0
|
|
|
12.1
|
|
|
—
|
|
|
2.6
|
|
|
1.3
|
|
|
11.9
|
|
|
(1.7)
|
|
|
390.2
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
12.0
|
|
|
(9.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
2.0
|
|
|
Interest and dividend
income
|
|
2.6
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
0.8
|
|
|
—
|
|
|
4.0
|
|
|
Interest
expense
|
|
(19.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.6)
|
|
|
Other gains and
losses, net
|
|
(8.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
1.2
|
|
|
6.2
|
|
|
2.1
|
|
|
Other
income/(expense) of CSIP, net
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.1
|
|
|
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income of
CIP
|
|
65.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65.1)
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
CIP
|
|
(47.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.3
|
|
|
—
|
|
|
—
|
|
|
Other gains/(losses) of
CIP, net
|
|
(19.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.7
|
|
|
—
|
|
|
—
|
|
|
Income from
continuing operations before income taxes
|
|
353.4
|
|
|
3.5
|
|
|
—
|
|
|
2.6
|
|
|
4.5
|
|
|
15.3
|
|
|
4.5
|
|
|
383.8
|
|
|
Income tax
provision
|
|
(109.4)
|
|
|
(3.5)
|
|
|
—
|
|
|
4.8
|
|
|
(1.4)
|
|
|
—
|
|
|
(0.5)
|
|
|
(110.0)
|
|
|
Income from
continuing operations, net of income taxes
|
|
244.0
|
|
|
—
|
|
|
—
|
|
|
7.4
|
|
|
3.1
|
|
|
15.3
|
|
|
4.0
|
|
|
273.8
|
|
|
Income/(loss) from
discontinued operations, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
244.0
|
|
|
—
|
|
|
—
|
|
|
7.4
|
|
|
3.1
|
|
|
15.3
|
|
|
4.0
|
|
|
273.8
|
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
|
13.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.7)
|
|
|
—
|
|
|
(2.4)
|
|
|
Net income
attributable to Invesco Ltd. reconciled to adjusted net income
attributable to Invesco Ltd.
|
|
$257.3
|
|
|
$—
|
|
|
$—
|
|
|
$7.4
|
|
|
$3.1
|
|
|
($0.4)
|
|
|
$4.0
|
|
|
$271.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
27.6
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
41.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
432.2
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
432.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
|
$0.60
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.63
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 19 through 22 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, 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 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 form
continuing operations
|
|
$0.60
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.63
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 19 through 22 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
June 30, 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
|
|
Non-GAAP
basis
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management
fees
|
|
$1,031.9
|
|
|
$16.2
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$6.4
|
|
|
$1,054.5
|
|
|
Service and
distribution fees
|
|
214.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
214.7
|
|
|
Performance
fees
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
7.3
|
|
|
Other
|
|
38.3
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
38.9
|
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(3.8)
|
|
|
(410.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(414.4)
|
|
|
Total operating
revenues reconciled to net revenues
|
|
1,289.9
|
|
|
13.1
|
|
|
(410.6)
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
901.0
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
342.9
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
(3.7)
|
|
|
—
|
|
|
344.6
|
|
|
Third-party
distribution, service and advisory
|
|
410.6
|
|
|
—
|
|
|
(410.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Marketing
|
|
30.2
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.9
|
|
|
Property, office and
technology
|
|
75.3
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76.1
|
|
|
General and
administrative
|
|
76.1
|
|
|
1.4
|
|
|
—
|
|
|
(3.4)
|
|
|
—
|
|
|
(1.7)
|
|
|
72.4
|
|
|
Total operating
expenses
|
|
935.1
|
|
|
8.3
|
|
|
(410.6)
|
|
|
(3.4)
|
|
|
(3.7)
|
|
|
(1.7)
|
|
|
524.0
|
|
|
Operating income
reconciled to adjusted operating income
|
|
354.8
|
|
|
4.8
|
|
|
—
|
|
|
3.4
|
|
|
3.7
|
|
|
10.3
|
|
|
377.0
|
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
5.5
|
|
|
(3.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
4.1
|
|
|
Interest and dividend
income
|
|
3.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
0.6
|
|
|
3.9
|
|
|
Interest
expense
|
|
(18.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.2)
|
|
|
Other gains and
losses, net
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.1)
|
|
|
4.7
|
|
|
14.8
|
|
|
Other
income/(expense) of CSIP, net
|
|
7.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income of
CIP
|
|
48.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48.0)
|
|
|
—
|
|
|
Interest expense of
CIP
|
|
(30.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.3
|
|
|
—
|
|
|
Other gains/(losses) of
CIP, net
|
|
36.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36.8)
|
|
|
—
|
|
|
Income from
continuing operations before income taxes
|
|
423.6
|
|
|
2.3
|
|
|
—
|
|
|
3.4
|
|
|
(3.3)
|
|
|
(36.7)
|
|
|
389.3
|
|
|
Income tax
provision
|
|
(107.0)
|
|
|
(2.3)
|
|
|
—
|
|
|
5.0
|
|
|
1.0
|
|
|
—
|
|
|
(103.3)
|
|
|
Income from
continuing operations, net of taxes
|
|
316.6
|
|
|
—
|
|
|
—
|
|
|
8.4
|
|
|
(2.3)
|
|
|
(36.7)
|
|
|
286.0
|
|
|
Income/(loss) from
discontinued operations, net of taxes
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
316.8
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|
(2.3)
|
|
|
(36.7)
|
|
|
286.0
|
|
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
|
(42.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38.7
|
|
|
(3.6)
|
|
|
Net income
attributable to Invesco Ltd. reconciled to adjusted net income
attributable to Invesco Ltd.
|
|
$274.5
|
|
|
$—
|
|
|
$—
|
|
|
$8.2
|
|
|
($2.3)
|
|
|
$2.0
|
|
|
$282.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
27.5
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
41.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
436.4
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
436.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS form
continuing operations
|
|
$0.63
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
$0.65
|
|
|
Diluted EPS from
discontinued operations
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 19 through 22 for notes to the reconciliation.
|
Invesco
Ltd.
Condensed
Consolidated Balance Sheet Information Excluding CIP
(a non-GAAP
presentation, unaudited, in millions)
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
ADJUSTED
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$1,465.7
|
|
|
$1,514.2
|
|
|
Unsettled fund
receivables
|
1,119.2
|
|
|
732.4
|
|
|
Accounts
receivable
|
532.8
|
|
|
549.7
|
|
|
Investments
|
1,064.9
|
|
|
980.3
|
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
321.5
|
|
|
305.8
|
|
|
Assets held for
policyholders
|
3,458.6
|
|
|
1,697.9
|
|
|
Prepaid
assets
|
133.7
|
|
|
132.1
|
|
|
Other
assets
|
83.2
|
|
|
92.0
|
|
|
Property,
equipment and software, net
|
410.3
|
|
|
402.6
|
|
|
Intangible assets,
net
|
1,360.5
|
|
|
1,246.7
|
|
|
Goodwill
|
6,449.1
|
|
|
6,579.4
|
|
|
Total adjusted
assets
|
$16,399.5
|
|
|
$14,233.1
|
|
|
|
|
|
|
ADJUSTED
LIABILITIES
|
|
|
|
|
Accrued
compensation and benefits
|
$474.8
|
|
|
$667.3
|
|
|
Accounts payable
and accrued expenses
|
881.3
|
|
|
757.3
|
|
|
Policyholder
payables
|
3,458.6
|
|
|
1,697.9
|
|
|
Unsettled fund
payables
|
1,106.0
|
|
|
730.1
|
|
|
Long-term
debt
|
1,597.5
|
|
|
1,589.3
|
|
|
Deferred tax
liabilities, net
|
367.0
|
|
|
304.8
|
|
|
Total adjusted
liabilities
|
7,885.2
|
|
|
5,746.7
|
|
|
|
|
|
|
ADJUSTED TEMPORARY
EQUITY
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
169.1
|
|
|
165.5
|
|
|
ADJUSTED PERMANENT
EQUITY
|
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
|
Common
shares
|
98.1
|
|
|
98.1
|
|
|
Additional
paid-in-capital
|
6,131.0
|
|
|
6,133.6
|
|
|
Treasury
shares
|
(2,024.3)
|
|
|
(1,898.1)
|
|
|
Retained
earnings
|
4,205.8
|
|
|
3,905.7
|
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(82.3)
|
|
|
69.0
|
|
|
Total adjusted
equity attributable to Invesco Ltd.
|
8,328.3
|
|
|
8,308.3
|
|
|
Adjusted equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
16.9
|
|
|
12.6
|
|
|
Total adjusted
permanent equity
|
8,345.2
|
|
|
8,320.9
|
|
|
Total adjusted
liabilities, temporary and permanent equity
|
$16,399.5
|
|
|
$14,233.1
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Balance Sheets
(Unaudited, in
millions)
|
|
June 30,
2015
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$1,465.7
|
|
|
$1,514.2
|
|
|
Unsettled fund
receivables
|
1,119.2
|
|
|
732.4
|
|
|
Accounts
receivable
|
527.6
|
|
|
545.9
|
|
|
Investments
|
959.5
|
|
|
885.4
|
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
321.5
|
|
|
305.8
|
|
|
Assets of
consolidated investment products (CIP):
|
|
|
|
|
Cash and cash
equivalents of CIP
|
314.8
|
|
|
404.0
|
|
|
Accounts receivable
of CIP
|
109.5
|
|
|
161.3
|
|
|
Investments of
CIP
|
6,185.1
|
|
|
5,762.8
|
|
|
Assets held for
policyholders
|
3,458.6
|
|
|
1,697.9
|
|
|
Prepaid
assets
|
133.7
|
|
|
132.1
|
|
|
Other
assets
|
83.2
|
|
|
92.0
|
|
|
Property,
equipment and software, net
|
410.3
|
|
|
402.6
|
|
|
Intangible assets,
net
|
1,360.5
|
|
|
1,246.7
|
|
|
Goodwill
|
6,449.1
|
|
|
6,579.4
|
|
|
Total
assets
|
$22,898.3
|
|
|
$20,462.5
|
|
|
LIABILITIES
|
|
|
|
|
Accrued
compensation and benefits
|
$474.8
|
|
|
$667.3
|
|
|
Accounts payable
and accrued expenses
|
881.3
|
|
|
757.3
|
|
|
Liabilities of
CIP:
|
|
|
|
|
Debt of
CIP
|
5,432.1
|
|
|
5,149.6
|
|
|
Other liabilities of
CIP
|
326.8
|
|
|
280.9
|
|
|
Policyholder
payables
|
3,458.6
|
|
|
1,697.9
|
|
|
Unsettled fund
payables
|
1,106.0
|
|
|
730.1
|
|
|
Long-term
debt
|
1,597.5
|
|
|
1,589.3
|
|
|
Deferred tax
liabilities, net
|
367.0
|
|
|
304.8
|
|
|
Total
liabilities
|
13,644.1
|
|
|
11,177.2
|
|
|
TEMPORARY
EQUITY
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
169.1
|
|
|
165.5
|
|
|
PERMANENT
EQUITY
|
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
|
Common
shares
|
98.1
|
|
|
98.1
|
|
|
Additional
paid-in-capital
|
6,131.0
|
|
|
6,133.6
|
|
|
Treasury
shares
|
(2,024.3)
|
|
|
(1,898.1)
|
|
|
Retained
earnings
|
4,218.3
|
|
|
3,926.0
|
|
|
Retained earnings
appropriated for investors in CIP
|
—
|
|
|
17.6
|
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(94.8)
|
|
|
48.8
|
|
|
Total equity
attributable to Invesco Ltd.
|
8,328.3
|
|
|
8,326.0
|
|
|
Equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
756.8
|
|
|
793.8
|
|
|
Total permanent
equity
|
9,085.1
|
|
|
9,119.8
|
|
|
Total liabilities,
temporary and permanent equity
|
$22,898.3
|
|
|
$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)
|
|
June 30,
2015
|
|
December 31,
2014
|
|
Before Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Before Consolidation
(non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,465.7
|
|
|
$—
|
|
|
$1,465.7
|
|
|
$1,514.2
|
|
|
$—
|
|
|
$1,514.2
|
|
|
Unsettled fund
receivables
|
1,119.2
|
|
|
—
|
|
|
1,119.2
|
|
|
732.4
|
|
|
—
|
|
|
732.4
|
|
|
Accounts
receivable
|
532.8
|
|
|
(5.2)
|
|
|
527.6
|
|
|
549.7
|
|
|
(3.8)
|
|
|
545.9
|
|
|
Investments
|
1,064.9
|
|
|
(105.4)
|
|
|
959.5
|
|
|
980.3
|
|
|
(94.9)
|
|
|
885.4
|
|
|
Assets of
CSIP
|
321.5
|
|
|
—
|
|
|
321.5
|
|
|
305.8
|
|
|
—
|
|
|
305.8
|
|
|
Assets of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents of CIP
|
—
|
|
|
314.8
|
|
|
314.8
|
|
|
—
|
|
|
404.0
|
|
|
404.0
|
|
|
Accounts receivable of
CIP
|
—
|
|
|
109.5
|
|
|
109.5
|
|
|
—
|
|
|
161.3
|
|
|
161.3
|
|
|
Investments of
CIP
|
—
|
|
|
6,185.1
|
|
|
6,185.1
|
|
|
—
|
|
|
5,762.8
|
|
|
5,762.8
|
|
|
Assets held for
policyholders
|
3,458.6
|
|
|
—
|
|
|
3,458.6
|
|
|
1,697.9
|
|
|
—
|
|
|
1,697.9
|
|
|
Prepaid
assets
|
133.7
|
|
|
—
|
|
|
133.7
|
|
|
132.1
|
|
|
—
|
|
|
132.1
|
|
|
Other
assets
|
83.2
|
|
|
—
|
|
|
83.2
|
|
|
92.0
|
|
|
—
|
|
|
92.0
|
|
|
Property, equipment
and software, net
|
410.3
|
|
|
—
|
|
|
410.3
|
|
|
402.6
|
|
|
—
|
|
|
402.6
|
|
|
Intangible assets,
net
|
1,360.5
|
|
|
—
|
|
|
1,360.5
|
|
|
1,246.7
|
|
|
—
|
|
|
1,246.7
|
|
|
Goodwill
|
6,449.1
|
|
|
—
|
|
|
6,449.1
|
|
|
6,579.4
|
|
|
—
|
|
|
6,579.4
|
|
|
Total
assets
|
$16,399.5
|
|
|
$6,498.8
|
|
|
$22,898.3
|
|
|
$14,233.1
|
|
|
$6,229.4
|
|
|
$20,462.5
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation
and benefits
|
$474.8
|
|
|
$—
|
|
|
$474.8
|
|
|
$667.3
|
|
|
$—
|
|
|
$667.3
|
|
|
Accounts payable and
accrued expenses
|
881.3
|
|
|
—
|
|
|
881.3
|
|
|
757.3
|
|
|
—
|
|
|
757.3
|
|
|
Liabilities of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt of CIP
|
—
|
|
|
5,432.1
|
|
|
5,432.1
|
|
|
—
|
|
|
5,149.6
|
|
|
5,149.6
|
|
|
Other liabilities of
CIP
|
—
|
|
|
326.8
|
|
|
326.8
|
|
|
—
|
|
|
280.9
|
|
|
280.9
|
|
|
Policyholder
payables
|
3,458.6
|
|
|
—
|
|
|
3,458.6
|
|
|
1,697.9
|
|
|
—
|
|
|
1,697.9
|
|
|
Unsettled fund
payables
|
1,106.0
|
|
|
—
|
|
|
1,106.0
|
|
|
730.1
|
|
|
—
|
|
|
730.1
|
|
|
Long-term
debt
|
1,597.5
|
|
|
—
|
|
|
1,597.5
|
|
|
1,589.3
|
|
|
—
|
|
|
1,589.3
|
|
|
Deferred tax
liabilities, net
|
367.0
|
|
|
—
|
|
|
367.0
|
|
|
304.8
|
|
|
—
|
|
|
304.8
|
|
|
Total
liabilities
|
7,885.2
|
|
|
5,758.9
|
|
|
13,644.1
|
|
|
5,746.7
|
|
|
5,430.5
|
|
|
11,177.2
|
|
|
TEMPORARY
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests in CSIP
|
169.1
|
|
|
—
|
|
|
169.1
|
|
|
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
|
6,131.0
|
|
|
—
|
|
|
6,131.0
|
|
|
6,133.6
|
|
|
—
|
|
|
6,133.6
|
|
|
Treasury
shares
|
(2,024.3)
|
|
|
—
|
|
|
(2,024.3)
|
|
|
(1,898.1)
|
|
|
—
|
|
|
(1,898.1)
|
|
|
Retained
earnings
|
4,205.8
|
|
|
12.5
|
|
|
4,218.3
|
|
|
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
|
(82.3)
|
|
|
(12.5)
|
|
|
(94.8)
|
|
|
69.0
|
|
|
(20.2)
|
|
|
48.8
|
|
|
Total equity
attributable to Invesco Ltd.
|
8,328.3
|
|
|
—
|
|
|
8,328.3
|
|
|
8,308.3
|
|
|
17.7
|
|
|
8,326.0
|
|
|
Equity attributable
to nonredeemable noncontrolling interests in consolidated
entities
|
16.9
|
|
|
739.9
|
|
|
756.8
|
|
|
12.6
|
|
|
781.2
|
|
|
793.8
|
|
|
Total permanent
equity
|
8,345.2
|
|
|
739.9
|
|
|
9,085.1
|
|
|
8,320.9
|
|
|
798.9
|
|
|
9,119.8
|
|
|
Total liabilities,
temporary and permanent equity
|
$16,399.5
|
|
|
$6,498.8
|
|
|
$22,898.3
|
|
|
$14,233.1
|
|
|
$6,229.4
|
|
|
$20,462.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 19 through 22 for notes to the reconciliation.
|
Invesco
Ltd.
Condensed
Consolidated Cash Flow Statement Information Excluding
CIP
(a non-GAAP
presentation, unaudited, in millions)
|
|
|
Six months ended
June 30,
|
|
2015
|
|
2014
|
|
Adjusted operating
activities:
|
|
|
|
|
U.S. GAAP net
income
|
$528.0
|
|
|
$523.6
|
|
|
Consolidated
investment product (CIP) net (income)/loss
|
3.1
|
|
|
(58.1)
|
|
|
Net income
adjusted to remove impact of CIP
|
531.1
|
|
|
465.5
|
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
|
Amortization and
depreciation
|
46.0
|
|
|
45.8
|
|
|
Share-based
compensation expense
|
76.7
|
|
|
70.0
|
|
|
Other
(gains)/losses, net
|
2.2
|
|
|
(27.5)
|
|
|
Other (gains)/losses
of CSIP, net
|
(8.2)
|
|
|
(11.5)
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(25.0)
|
|
|
(18.9)
|
|
|
Dividends from
unconsolidated affiliates
|
1.4
|
|
|
15.4
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
(Increase)/decrease
in cash held by CSIP
|
(4.9)
|
|
|
(1.0)
|
|
|
(Purchase)/sale of
trading investments, net
|
(55.1)
|
|
|
(10.4)
|
|
|
(Increase)/decrease
in receivables
|
(2,031.8)
|
|
|
(385.7)
|
|
|
Increase/(decrease)
in payables
|
1,852.7
|
|
|
172.0
|
|
|
Adjusted net cash
provided by/(used in) operating activities
|
385.1
|
|
|
313.7
|
|
|
|
|
|
|
Adjusted investing
activities:
|
|
|
|
|
Purchase of
property, equipment and software
|
(50.4)
|
|
|
(49.8)
|
|
|
Purchase of
available-for-sale investments
|
(80.7)
|
|
|
(146.2)
|
|
|
Sale of
available-for-sale investments
|
50.5
|
|
|
112.6
|
|
|
Purchase of
investments by CSIP
|
(273.2)
|
|
|
(476.1)
|
|
|
Sale of
investments by CSIP
|
274.7
|
|
|
274.3
|
|
|
Purchase of other
investments
|
(89.9)
|
|
|
(69.7)
|
|
|
Sale of other
investments
|
59.7
|
|
|
40.3
|
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
34.5
|
|
|
27.9
|
|
|
Sale of
business
|
—
|
|
|
60.8
|
|
|
Adjusted net cash
provided by/(used in) investing activities
|
(74.8)
|
|
|
(225.9)
|
|
|
|
|
|
|
Adjusted financing
activities:
|
|
|
|
|
Proceeds from
exercises of share options
|
1.2
|
|
|
5.2
|
|
|
Purchases of
treasury shares
|
(158.1)
|
|
|
(169.6)
|
|
|
Dividends
paid
|
(224.6)
|
|
|
(207.1)
|
|
|
Excess tax
benefits from share-based compensation
|
18.3
|
|
|
17.6
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
(35.7)
|
|
|
Third-party
capital invested into CSIP
|
1.7
|
|
|
152.5
|
|
|
Third-party
capital distributed by CSIP
|
—
|
|
|
(1.4)
|
|
|
Net
borrowings/(repayments) under credit facility
|
7.9
|
|
|
—
|
|
|
Adjusted net cash
provided by/(used in) financing activities
|
(353.6)
|
|
|
(238.5)
|
|
|
|
|
|
|
Increase
/(decrease) in cash and cash equivalents
|
(43.3)
|
|
|
(150.7)
|
|
|
Foreign exchange
movement on cash and cash equivalents
|
(5.2)
|
|
|
15.5
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,465.7
|
|
|
$1,196.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
U.S. GAAP
Condensed Consolidated Statements of Cash Flows
(Unaudited, in
millions)
|
|
|
Six months ended
June 30,
|
|
2015
|
|
2014
|
|
Operating
activities:
|
|
|
|
|
Net
income
|
$528.0
|
|
|
$523.6
|
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
|
Amortization and
depreciation
|
46.0
|
|
|
45.8
|
|
|
Share-based
compensation expense
|
76.7
|
|
|
70.0
|
|
|
Other
(gains)/losses, net
|
6.1
|
|
|
(22.8)
|
|
|
Other (gains)/losses
of CSIP, net
|
(8.2)
|
|
|
(11.5)
|
|
|
Other (gains)/losses
of CIP, net
|
(4.7)
|
|
|
(63.3)
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(23.8)
|
|
|
(15.5)
|
|
|
Dividends from
unconsolidated affiliates
|
1.4
|
|
|
15.4
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
(Increase)/decrease
in cash held by CIP
|
88.3
|
|
|
260.1
|
|
|
(Increase)/decrease
in cash held by CSIP
|
(4.9)
|
|
|
(1.0)
|
|
|
(Purchase)/sale of
trading investments, net
|
(55.1)
|
|
|
(10.4)
|
|
|
(Increase)/decrease
in receivables
|
(2,049.9)
|
|
|
(402.7)
|
|
|
Increase/(decrease)
in payables
|
1,858.6
|
|
|
162.6
|
|
|
Net cash provided
by/(used in) operating activities
|
458.5
|
|
|
550.3
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchase of
property, equipment and software
|
(50.4)
|
|
|
(49.8)
|
|
|
Purchase of
available-for-sale investments
|
(35.6)
|
|
|
(112.5)
|
|
|
Sale of
available-for-sale investments
|
18.0
|
|
|
75.1
|
|
|
Purchase of
investments by CIP
|
(1,927.1)
|
|
|
(2,848.8)
|
|
|
Sale of
investments by CIP
|
1,591.1
|
|
|
2,108.5
|
|
|
Purchase of
investments by CSIP
|
(273.2)
|
|
|
(476.1)
|
|
|
Sale of
investments by CSIP
|
274.7
|
|
|
274.3
|
|
|
Purchase of other
investments
|
(89.4)
|
|
|
(67.5)
|
|
|
Sale of other
investments
|
59.7
|
|
|
40.3
|
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
34.4
|
|
|
25.9
|
|
|
Sale of
business
|
—
|
|
|
60.8
|
|
|
Net cash provided
by/(used in) investing activities
|
(397.8)
|
|
|
(969.8)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Proceeds from
exercises of share options
|
1.2
|
|
|
5.2
|
|
|
Purchases of
treasury shares
|
(158.1)
|
|
|
(169.6)
|
|
|
Dividends
paid
|
(224.6)
|
|
|
(207.1)
|
|
|
Excess tax
benefits from share-based compensation
|
18.3
|
|
|
17.6
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
(35.7)
|
|
|
Third-party
capital invested into CIP
|
17.9
|
|
|
155.8
|
|
|
Third-party
capital distributed by CIP
|
(64.1)
|
|
|
(68.0)
|
|
|
Third-party
capital invested into CSIP
|
1.7
|
|
|
152.5
|
|
|
Third-party
capital distributed by CSIP
|
—
|
|
|
(1.4)
|
|
|
Borrowings of debt
by CIP
|
945.9
|
|
|
715.0
|
|
|
Repayments of debt
by CIP
|
(650.1)
|
|
|
(295.5)
|
|
|
Net
borrowings/(repayments) under credit facility
|
7.9
|
|
|
—
|
|
|
Net cash provided
by/(used in) financing activities
|
(104.0)
|
|
|
268.8
|
|
|
|
|
|
|
Increase/(decrease) in cash and cash
equivalents
|
(43.3)
|
|
|
(150.7)
|
|
|
Foreign exchange
movement on cash and cash equivalents
|
(5.2)
|
|
|
15.5
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,465.7
|
|
|
$1,196.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Reconciliations of
Condensed Consolidated Cash Flow Information Excluding CIP to U.S.
GAAP Condensed Consolidated Statements of Cash Flows
(unaudited, in
millions)
|
|
|
Six months ended
June 30, 2015
|
|
Six months ended
June 30, 2014
|
|
Before
Consolidation (non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Before
Consolidation (non-GAAP)
|
|
Impact of
Consolidation
|
|
Total
(U.S.
GAAP)
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$531.1
|
|
|
($3.1)
|
|
|
$528.0
|
|
|
$465.5
|
|
|
$58.1
|
|
|
$523.6
|
|
|
Amortization and
depreciation
|
46.0
|
|
|
—
|
|
|
46.0
|
|
|
45.8
|
|
|
—
|
|
|
45.8
|
|
|
Share-based
compensation expense
|
76.7
|
|
|
—
|
|
|
76.7
|
|
|
70.0
|
|
|
—
|
|
|
70.0
|
|
|
Other (gains)/losses,
net
|
2.2
|
|
|
3.9
|
|
|
6.1
|
|
|
(27.5)
|
|
|
4.7
|
|
|
(22.8)
|
|
|
Other (gains)/losses
of CSIP, net
|
(8.2)
|
|
|
—
|
|
|
(8.2)
|
|
|
(11.5)
|
|
|
—
|
|
|
(11.5)
|
|
|
Other (gains)/losses
of CIP, net
|
—
|
|
|
(4.7)
|
|
|
(4.7)
|
|
|
—
|
|
|
(63.3)
|
|
|
(63.3)
|
|
|
Equity in earnings of
unconsolidated affiliates
|
(25.0)
|
|
|
1.2
|
|
|
(23.8)
|
|
|
(18.9)
|
|
|
3.4
|
|
|
(15.5)
|
|
|
Dividends from
unconsolidated affiliates
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
15.4
|
|
|
—
|
|
|
15.4
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in
cash held by CIP
|
—
|
|
|
88.3
|
|
|
88.3
|
|
|
—
|
|
|
260.1
|
|
|
260.1
|
|
|
(Increase)/decrease in
cash held by CSIP
|
(4.9)
|
|
|
—
|
|
|
(4.9)
|
|
|
(1.0)
|
|
|
—
|
|
|
(1.0)
|
|
|
(Purchase)/sale of
trading investments, net
|
(55.1)
|
|
|
—
|
|
|
(55.1)
|
|
|
(10.4)
|
|
|
—
|
|
|
(10.4)
|
|
|
(Increase)/decrease in
receivables
|
(2,031.8)
|
|
|
(18.1)
|
|
|
(2,049.9)
|
|
|
(385.7)
|
|
|
(17.0)
|
|
|
(402.7)
|
|
|
Increase/(decrease) in
payables
|
1,852.7
|
|
|
5.9
|
|
|
1,858.6
|
|
|
172.0
|
|
|
(9.4)
|
|
|
162.6
|
|
|
Net cash provided
by/(used in) operating activities
|
385.1
|
|
|
73.4
|
|
|
458.5
|
|
|
313.7
|
|
|
236.6
|
|
|
550.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and software
|
(50.4)
|
|
|
—
|
|
|
(50.4)
|
|
|
(49.8)
|
|
|
—
|
|
|
(49.8)
|
|
|
Purchase of
available-for-sale investments
|
(80.7)
|
|
|
45.1
|
|
|
(35.6)
|
|
|
(146.2)
|
|
|
33.7
|
|
|
(112.5)
|
|
|
Sale of
available-for-sale investments
|
50.5
|
|
|
(32.5)
|
|
|
18.0
|
|
|
112.6
|
|
|
(37.5)
|
|
|
75.1
|
|
|
Purchase of
investments by CIP
|
—
|
|
|
(1,927.1)
|
|
|
(1,927.1)
|
|
|
—
|
|
|
(2,848.8)
|
|
|
(2,848.8)
|
|
|
Sale of investments
by CIP
|
—
|
|
|
1,591.1
|
|
|
1,591.1
|
|
|
—
|
|
|
2,108.5
|
|
|
2,108.5
|
|
|
Purchase of
investments by CSIP
|
(273.2)
|
|
|
—
|
|
|
(273.2)
|
|
|
(476.1)
|
|
|
—
|
|
|
(476.1)
|
|
|
Sale of investments
by CSIP
|
274.7
|
|
|
—
|
|
|
274.7
|
|
|
274.3
|
|
|
—
|
|
|
274.3
|
|
|
Purchase of other
investments
|
(89.9)
|
|
|
0.5
|
|
|
(89.4)
|
|
|
(69.7)
|
|
|
2.2
|
|
|
(67.5)
|
|
|
Sale of other
investments
|
59.7
|
|
|
—
|
|
|
59.7
|
|
|
40.3
|
|
|
—
|
|
|
40.3
|
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
34.5
|
|
|
(0.1)
|
|
|
34.4
|
|
|
27.9
|
|
|
(2.0)
|
|
|
25.9
|
|
|
Sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
60.8
|
|
|
—
|
|
|
60.8
|
|
|
Net cash provided
by/(used in) investing activities
|
(74.8)
|
|
|
(323.0)
|
|
|
(397.8)
|
|
|
(225.9)
|
|
|
(743.9)
|
|
|
(969.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercises of share options
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|
Purchases of treasury
shares
|
(158.1)
|
|
|
—
|
|
|
(158.1)
|
|
|
(169.6)
|
|
|
—
|
|
|
(169.6)
|
|
|
Dividends
paid
|
(224.6)
|
|
|
—
|
|
|
(224.6)
|
|
|
(207.1)
|
|
|
—
|
|
|
(207.1)
|
|
|
Excess tax benefits
from share-based compensation
|
18.3
|
|
|
—
|
|
|
18.3
|
|
|
17.6
|
|
|
—
|
|
|
17.6
|
|
|
Repayment of
unsettled fund account
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.7)
|
|
|
—
|
|
|
(35.7)
|
|
|
Third-party capital
invested into CIP
|
—
|
|
|
17.9
|
|
|
17.9
|
|
|
—
|
|
|
155.8
|
|
|
155.8
|
|
|
Third-party capital
distributed by CIP
|
—
|
|
|
(64.1)
|
|
|
(64.1)
|
|
|
—
|
|
|
(68.0)
|
|
|
(68.0)
|
|
|
Third-party capital
invested into CSIP
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
152.5
|
|
|
—
|
|
|
152.5
|
|
|
Third-party capital
distributed by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
|
—
|
|
|
(1.4)
|
|
|
Borrowings of debt by
CIP
|
—
|
|
|
945.9
|
|
|
945.9
|
|
|
—
|
|
|
715.0
|
|
|
715.0
|
|
|
Repayments of debt by
CIP
|
—
|
|
|
(650.1)
|
|
|
(650.1)
|
|
|
—
|
|
|
(295.5)
|
|
|
(295.5)
|
|
|
Net
borrowings/(repayments) under credit facility
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net cash provided
by/(used in) financing activities
|
(353.6)
|
|
|
249.6
|
|
|
(104.0)
|
|
|
(238.5)
|
|
|
507.3
|
|
|
268.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
(43.3)
|
|
|
—
|
|
|
(43.3)
|
|
|
(150.7)
|
|
|
—
|
|
|
(150.7)
|
|
|
Foreign exchange
movement on cash and cash equivalents
|
(5.2)
|
|
|
—
|
|
|
(5.2)
|
|
|
15.5
|
|
|
—
|
|
|
15.5
|
|
|
Cash and cash
equivalents, beginning of period
|
1,514.2
|
|
|
—
|
|
|
1,514.2
|
|
|
1,331.2
|
|
|
—
|
|
|
1,331.2
|
|
|
Cash and cash
equivalents, end of period
|
$1,465.7
|
|
|
$—
|
|
|
$1,465.7
|
|
|
$1,196.0
|
|
|
$—
|
|
|
$1,196.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See pages 19 through 22 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 10 through 12. 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 15 and 18, 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
|
Q2-15
|
|
Q1-15
|
|
Q2-14
|
|
|
Intangible
amortization
|
$2.6
|
|
|
$2.7
|
|
|
$3.4
|
|
|
|
Taxation on
amortization
|
(0.3)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
|
|
Deferred
taxation
|
5.1
|
|
|
5.3
|
|
|
5.4
|
|
|
|
Other
acquisition-related items
|
—
|
|
|
1.2
|
|
|
—
|
|
|
|
Taxation on other
acquisition-related items
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
|
(Income)/loss from
discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
|
$7.4
|
|
|
$8.3
|
|
|
$8.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $10.4 million in the
second quarter (first quarter 2015: $9.3
million; second quarter 2014: $8.7
million) while no other revenues (first quarter 2015: none,
second quarter 2014: $0.1 million)
were recorded by CIP in the second 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 an increase of
$0.4 million in net income
attributable to Invesco Ltd. in the second quarter U.S. GAAP
earnings (first quarter 2015: $8.2
million decrease; second quarter 2014: $2.0 million decrease). 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 $1.3
million in the second quarter (first quarter 2015:
$3.9 million appreciation; second
quarter 2014: $3.7 million
appreciation) with an investment loss, inclusive of interest and
dividend income, of $3.2 million in
the second quarter (first quarter 2015: $5.1
million gain; second quarter 2014: $7.0 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
charge of $1.4 million in the second
quarter (first quarter 2015: $0.3
million credit; second quarter 2014: $1.0 million credit), result in a net income
addition of $3.1 million for the
second quarter (first quarter 2015: $0.9
million deduction; second quarter 2014: $2.3 million deduction).
6. Other reconciling items
|
in
millions
|
Q2-15
|
|
Q1-15
|
|
Q2-14
|
|
|
Business optimization
charges: (a)
|
|
|
|
|
|
|
|
Property, office and
technology
|
(6.4)
|
|
|
—
|
|
|
—
|
|
|
|
Taxation on business
optimization charges
|
1.3
|
|
|
—
|
|
|
—
|
|
|
|
Fund reimbursement
expense (b)
|
4.7
|
|
|
—
|
|
|
—
|
|
|
|
Taxation on fund
reimbursement expense (b)
|
(1.8)
|
|
|
—
|
|
|
—
|
|
|
|
Foreign exchange
hedge loss/(gain) (c)
|
6.2
|
|
|
(3.1)
|
|
|
—
|
|
|
|
$4.0
|
|
|
($3.1)
|
|
|
$—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a. Business optimization:
Operating expenses for the second quarter 2015 include a credit of
$6.4 million related to the provision
associated with vacated leased properties.
b. Included within general
and administrative expenses for the second quarter 2015 is a charge
of $4.7 million in respect of a
multi-year fund reimbursement expense associated with historical
private equity management fees and related professional services
fees. The charge resulted primarily from using a more appropriate
methodology regarding the calculation of offsets to management
fees.
c. 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.
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 increased to
31.0% for the second quarter, from 26.3% for the first quarter 2015
and 25.3% for the second quarter 2014. The impact of the inclusion
of non-controlling interests in CIP and CSIP increased our
effective tax rate by 1.2% for the second quarter, compared to a
decrease of 1.8% on our effective tax rate for the first quarter
2015 and a decrease of 2.8% for the second quarter 2014. Second
quarter 2015 included a 2.3% rate increase as a result of tax
legislation changes in New York City.
|
Invesco
Ltd.
Quarterly Assets
Under Management
|
|
|
(in
billions)
|
Q2-15
|
|
Q1-15
|
|
%
Change
|
|
Q2-14
|
|
Beginning
Assets
|
$798.3
|
|
|
$792.4
|
|
|
0.7
|
%
|
|
$787.3
|
|
|
Long-term
inflows
|
52.1
|
|
|
50.5
|
|
|
3.2
|
%
|
|
42.5
|
|
|
Long-term
outflows
|
(46.2)
|
|
|
(40.2)
|
|
|
14.9
|
%
|
|
(49.4)
|
|
|
Long-term net
flows
|
5.9
|
|
|
10.3
|
|
|
(42.7)
|
%
|
|
(6.9)
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(2.6)
|
|
|
(88.5)
|
%
|
|
(3.0)
|
|
|
Net flows in
institutional money market funds
|
(2.6)
|
|
|
(6.0)
|
|
|
(56.7)
|
%
|
|
1.1
|
|
|
Total net
flows
|
3.0
|
|
|
1.7
|
|
|
76.5
|
%
|
|
(8.8)
|
|
|
Market gains and
losses/reinvestment
|
(6.2)
|
|
|
18.2
|
|
|
N/A
|
|
19.9
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
(0.7)
|
|
|
(100.0)
|
%
|
|
—
|
|
|
Foreign currency
translation
|
8.5
|
|
|
(13.3)
|
|
|
N/A
|
|
4.0
|
|
|
Ending
Assets
|
$803.6
|
|
|
$798.3
|
|
|
0.7
|
%
|
|
$802.4
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$706.1
|
|
|
$685.0
|
|
|
3.1
|
%
|
|
$674.7
|
|
|
Average
AUM
|
$810.9
|
|
|
$795.4
|
|
|
1.9
|
%
|
|
$790.1
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
65.6
|
bps
|
|
65.4
|
bps
|
|
|
|
65.7
|
bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
65.2
|
bps
|
|
63.0
|
bps
|
|
|
|
65.4
|
bps
|
|
Net revenue yield
on AUM(b)
|
46.2
|
bps
|
|
46.1
|
bps
|
|
|
|
45.6
|
bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
45.6
|
bps
|
|
43.5
|
bps
|
|
|
|
45.2
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
|
March 31,
2015
|
$798.3
|
|
|
$655.3
|
|
|
$143.0
|
|
|
Long-term
inflows
|
52.1
|
|
|
43.1
|
|
|
9.0
|
|
|
Long-term
outflows
|
(46.2)
|
|
|
(37.7)
|
|
|
(8.5)
|
|
|
Long-term net
flows
|
5.9
|
|
|
5.4
|
|
|
0.5
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
|
Net flows in
institutional money market funds
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
Total net
flows
|
3.0
|
|
|
2.8
|
|
|
0.2
|
|
|
Market gains and
losses/reinvestment
|
(6.2)
|
|
|
(4.6)
|
|
|
(1.6)
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
8.5
|
|
|
8.5
|
|
|
—
|
|
|
June 30,
2015
|
$803.6
|
|
|
$662.0
|
|
|
$141.6
|
|
|
|
|
|
|
|
|
Average
AUM
|
$810.9
|
|
|
$666.7
|
|
|
$144.2
|
|
|
Gross revenue
yield on AUM(a)
|
65.6bps
|
|
76.6bps
|
|
15.3bps
|
|
Net revenue yield
on AUM(b)
|
46.2bps
|
|
52.9bps
|
|
15.3bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
March 31,
2015
|
$798.3
|
|
|
$540.7
|
|
|
$257.6
|
|
|
Long-term
inflows
|
52.1
|
|
|
34.2
|
|
|
17.9
|
|
|
Long-term
outflows
|
(46.2)
|
|
|
(34.7)
|
|
|
(11.5)
|
|
|
Long-term net
flows
|
5.9
|
|
|
(0.5)
|
|
|
6.4
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
Total net
flows
|
3.0
|
|
|
(0.8)
|
|
|
3.8
|
|
|
Market gains and
losses/reinvestment
|
(6.2)
|
|
|
(6.1)
|
|
|
(0.1)
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
8.5
|
|
|
7.5
|
|
|
1.0
|
|
|
June 30,
2015
|
$803.6
|
|
|
$541.3
|
|
|
$262.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
March 31,
2015
|
$798.3
|
|
|
$392.8
|
|
|
$184.4
|
|
|
$50.6
|
|
|
$70.2
|
|
|
$100.3
|
|
|
Long-term
inflows
|
52.1
|
|
|
23.8
|
|
|
13.2
|
|
|
6.0
|
|
|
1.0
|
|
|
8.1
|
|
|
Long-term
outflows
|
(46.2)
|
|
|
(26.4)
|
|
|
(8.7)
|
|
|
(3.1)
|
|
|
(1.0)
|
|
|
(7.0)
|
|
|
Long-term net
flows
|
5.9
|
|
|
(2.6)
|
|
|
4.5
|
|
|
2.9
|
|
|
—
|
|
|
1.1
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.6)
|
|
|
—
|
|
|
Total net
flows
|
3.0
|
|
|
(2.9)
|
|
|
4.5
|
|
|
2.9
|
|
|
(2.6)
|
|
|
1.1
|
|
|
Market gains and
losses/reinvestment
|
(6.2)
|
|
|
(0.3)
|
|
|
(3.0)
|
|
|
(1.2)
|
|
|
0.3
|
|
|
(2.0)
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
8.5
|
|
|
5.1
|
|
|
1.6
|
|
|
1.3
|
|
|
—
|
|
|
0.5
|
|
|
June 30,
2015
|
$803.6
|
|
|
$394.7
|
|
|
$187.5
|
|
|
$53.6
|
|
|
$67.9
|
|
|
$99.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$810.9
|
|
|
$403.7
|
|
|
$184.7
|
|
|
$53.3
|
|
|
$69.5
|
|
|
$99.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
March 31,
2015
|
$798.3
|
|
|
$532.6
|
|
|
$24.9
|
|
|
$106.3
|
|
|
$74.2
|
|
|
$60.3
|
|
|
Long-term
inflows
|
52.1
|
|
|
27.4
|
|
|
1.0
|
|
|
4.5
|
|
|
9.7
|
|
|
9.5
|
|
|
Long-term
outflows
|
(46.2)
|
|
|
(24.5)
|
|
|
(1.1)
|
|
|
(4.3)
|
|
|
(8.1)
|
|
|
(8.2)
|
|
|
Long-term net
flows
|
5.9
|
|
|
2.9
|
|
|
(0.1)
|
|
|
0.2
|
|
|
1.6
|
|
|
1.3
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(2.6)
|
|
|
(3.4)
|
|
|
—
|
|
|
0.9
|
|
|
(0.2)
|
|
|
0.1
|
|
|
Total net
flows
|
3.0
|
|
|
(0.8)
|
|
|
(0.1)
|
|
|
1.1
|
|
|
1.4
|
|
|
1.4
|
|
|
Market gains and
losses/reinvestment
|
(6.2)
|
|
|
(1.0)
|
|
|
(0.3)
|
|
|
(2.7)
|
|
|
(0.7)
|
|
|
(1.5)
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
8.5
|
|
|
—
|
|
|
0.4
|
|
|
6.0
|
|
|
2.1
|
|
|
—
|
|
|
June 30,
2015
|
$803.6
|
|
|
$530.8
|
|
|
$24.9
|
|
|
$110.7
|
|
|
$77.0
|
|
|
$60.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco
Ltd.
Year-to-date
Assets Under Management
|
|
|
(in
billions)
|
June 30,
2015
|
|
June 30,
2014
|
|
%
Change
|
|
Beginning
Assets
|
$792.4
|
|
|
$778.7
|
|
|
1.8
|
%
|
|
Long-term
inflows
|
102.6
|
|
|
92.7
|
|
|
10.7
|
%
|
|
Long-term
outflows
|
(86.4)
|
|
|
(93.1)
|
|
|
(7.2)
|
%
|
|
Long-term net
flows
|
16.2
|
|
|
(0.4)
|
|
|
N/A
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(4.3)
|
|
|
(32.6)
|
%
|
|
Net flows in
institutional money market funds
|
(8.6)
|
|
|
(5.0)
|
|
|
72.0
|
%
|
|
Total net
flows
|
4.7
|
|
|
(9.7)
|
|
|
N/A
|
|
Market gains and
losses/reinvestment
|
12.0
|
|
|
29.3
|
|
|
(59.0)
|
%
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
N/A
|
|
Foreign currency
translation
|
(4.8)
|
|
|
4.1
|
|
|
N/A
|
|
Ending
Assets
|
$803.6
|
|
|
$802.4
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$695.5
|
|
|
$667.2
|
|
|
4.2
|
%
|
|
Average
AUM
|
$803.2
|
|
|
$784.9
|
|
|
2.3
|
%
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
65.5
|
bps
|
|
65.6
|
bps
|
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
64.1
|
bps
|
|
64.7
|
bps
|
|
|
|
Net revenue yield
on AUM(b)
|
46.2
|
bps
|
|
45.6
|
bps
|
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
44.6
|
bps
|
|
44.5
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
|
December 31,
2014
|
$792.4
|
|
|
$651.0
|
|
|
$141.4
|
|
|
Long-term
inflows
|
102.6
|
|
|
83.7
|
|
|
18.9
|
|
|
Long-term
outflows
|
(86.4)
|
|
|
(71.5)
|
|
|
(14.9)
|
|
|
Long-term net
flows
|
16.2
|
|
|
12.2
|
|
|
4.0
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
—
|
|
|
(2.9)
|
|
|
Net flows in
institutional money market funds
|
(8.6)
|
|
|
(8.6)
|
|
|
—
|
|
|
Total net
flows
|
4.7
|
|
|
3.6
|
|
|
1.1
|
|
|
Market gains and
losses/reinvestment
|
12.0
|
|
|
12.2
|
|
|
(0.2)
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
(4.8)
|
|
|
(4.8)
|
|
|
—
|
|
|
June 30,
2015
|
$803.6
|
|
|
$662.0
|
|
|
$141.6
|
|
|
|
|
|
|
|
|
Average
AUM
|
$803.2
|
|
|
$659.7
|
|
|
$143.5
|
|
|
Gross revenue
yield on AUM(a)
|
65.5bps
|
|
76.7bps
|
|
14.3bps
|
|
Net revenue yield
on AUM(b)
|
46.2bps
|
|
53.1bps
|
|
14.3bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2014
|
$792.4
|
|
|
$532.5
|
|
|
$259.9
|
|
|
Long-term
inflows
|
102.6
|
|
|
74.5
|
|
|
28.1
|
|
|
Long-term
outflows
|
(86.4)
|
|
|
(67.5)
|
|
|
(18.9)
|
|
|
Long-term net
flows
|
16.2
|
|
|
7.0
|
|
|
9.2
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(8.6)
|
|
|
—
|
|
|
(8.6)
|
|
|
Total net
flows
|
4.7
|
|
|
4.1
|
|
|
0.6
|
|
|
Market gains and
losses/reinvestment
|
12.0
|
|
|
8.8
|
|
|
3.2
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
Foreign currency
translation
|
(4.8)
|
|
|
(3.4)
|
|
|
(1.4)
|
|
|
June 30,
2015
|
$803.6
|
|
|
$541.3
|
|
|
$262.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(d)
|
|
Alternatives(c)
|
|
December 31,
2014
|
$792.4
|
|
|
$384.4
|
|
|
$181.6
|
|
|
$50.6
|
|
|
$76.5
|
|
|
$99.3
|
|
|
Long-term
inflows
|
102.6
|
|
|
48.3
|
|
|
24.0
|
|
|
10.1
|
|
|
1.7
|
|
|
18.5
|
|
|
Long-term
outflows
|
(86.4)
|
|
|
(47.9)
|
|
|
(15.9)
|
|
|
(6.3)
|
|
|
(1.9)
|
|
|
(14.4)
|
|
|
Long-term net
flows
|
16.2
|
|
|
0.4
|
|
|
8.1
|
|
|
3.8
|
|
|
(0.2)
|
|
|
4.1
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(8.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
Total net
flows
|
4.7
|
|
|
(2.5)
|
|
|
8.1
|
|
|
3.8
|
|
|
(8.8)
|
|
|
4.1
|
|
|
Market gains and
losses/reinvestment
|
12.0
|
|
|
14.6
|
|
|
(1.4)
|
|
|
0.7
|
|
|
0.2
|
|
|
(2.1)
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
(4.8)
|
|
|
(1.8)
|
|
|
(0.8)
|
|
|
(1.5)
|
|
|
—
|
|
|
(0.7)
|
|
|
June 30,
2015
|
$803.6
|
|
|
$394.7
|
|
|
$187.5
|
|
|
$53.6
|
|
|
$67.9
|
|
|
$99.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$803.2
|
|
|
$395.9
|
|
|
$183.8
|
|
|
$51.5
|
|
|
$72.3
|
|
|
$99.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
102.6
|
|
|
53.5
|
|
|
2.0
|
|
|
9.4
|
|
|
21.9
|
|
|
15.8
|
|
|
Long-term
outflows
|
(86.4)
|
|
|
(46.5)
|
|
|
(2.1)
|
|
|
(8.6)
|
|
|
(15.3)
|
|
|
(13.9)
|
|
|
Long-term net
flows
|
16.2
|
|
|
7.0
|
|
|
(0.1)
|
|
|
0.8
|
|
|
6.6
|
|
|
1.9
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
(8.6)
|
|
|
(9.0)
|
|
|
(0.1)
|
|
|
0.8
|
|
|
(0.2)
|
|
|
(0.1)
|
|
|
Total net
flows
|
4.7
|
|
|
(4.9)
|
|
|
(0.2)
|
|
|
1.6
|
|
|
6.4
|
|
|
1.8
|
|
|
Market gains and
losses/reinvestment
|
12.0
|
|
|
4.3
|
|
|
1.2
|
|
|
2.9
|
|
|
3.0
|
|
|
0.6
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
(4.8)
|
|
|
—
|
|
|
(1.9)
|
|
|
1.1
|
|
|
(3.5)
|
|
|
(0.5)
|
|
|
June 30,
2015
|
$803.6
|
|
|
$530.8
|
|
|
$24.9
|
|
|
$110.7
|
|
|
$77.0
|
|
|
$60.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(e)
|
|
|
(in
billions)
|
Q2-15
|
|
Q1-15
|
|
%
Change
|
|
Q2-14
|
|
Beginning
Assets
|
$143.0
|
|
|
$141.4
|
|
|
1.1
|
%
|
|
$142.9
|
|
|
Long-term
inflows
|
9.0
|
|
|
9.9
|
|
|
(9.1)
|
%
|
|
6.4
|
|
|
Long-term
outflows
|
(8.5)
|
|
|
(6.4)
|
|
|
32.8
|
%
|
|
(5.3)
|
|
|
Long-term net
flows
|
0.5
|
|
|
3.5
|
|
|
(85.7)
|
%
|
|
1.1
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(2.6)
|
|
|
(88.5)
|
%
|
|
(3.0)
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Total net
flows
|
0.2
|
|
|
0.9
|
|
|
(77.8)
|
%
|
|
(1.9)
|
|
|
Market gains and
losses/reinvestment
|
(1.6)
|
|
|
1.4
|
|
|
N/A
|
|
4.8
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
(0.7)
|
|
|
(100.0)
|
%
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
N/A
|
|
—
|
|
|
Ending
Assets
|
$141.6
|
|
|
$143.0
|
|
|
(1.0)
|
%
|
|
$145.8
|
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$104.9
|
|
|
$103.2
|
|
|
1.6
|
%
|
|
$99.8
|
|
|
Average
AUM
|
$144.2
|
|
|
$142.7
|
|
|
1.1
|
%
|
|
$141.9
|
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
15.3
|
bps
|
|
13.3
|
bps
|
|
|
|
13.2
|
bps
|
|
Gross revenue
yield on AUM before performance fees(a)
|
15.3
|
bps
|
|
13.3
|
bps
|
|
|
|
13.2
|
bps
|
|
Net revenue yield
on AUM(b)
|
15.3
|
bps
|
|
13.3
|
bps
|
|
|
|
13.2
|
bps
|
|
Net revenue yield
on AUM before performance fees(b)
|
15.3
|
bps
|
|
13.3
|
bps
|
|
|
|
13.2
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
March 31,
2015
|
$143.0
|
|
|
$120.8
|
|
|
$22.2
|
|
|
Long-term
inflows
|
9.0
|
|
|
7.6
|
|
|
1.4
|
|
|
Long-term
outflows
|
(8.5)
|
|
|
(7.6)
|
|
|
(0.9)
|
|
|
Long-term net
flows
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.2
|
|
|
(0.3)
|
|
|
0.5
|
|
|
Market gains and
losses/reinvestment
|
(1.6)
|
|
|
(0.8)
|
|
|
(0.8)
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$119.7
|
|
|
$21.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
|
March 31,
2015
|
$143.0
|
|
|
$90.0
|
|
|
$42.0
|
|
|
$—
|
|
|
$—
|
|
|
$11.0
|
|
|
Long-term
inflows
|
9.0
|
|
|
6.3
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
Long-term
outflows
|
(8.5)
|
|
|
(6.2)
|
|
|
(1.0)
|
|
|
—
|
|
|
—
|
|
|
(1.3)
|
|
|
Long-term net
flows
|
0.5
|
|
|
0.1
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.2
|
|
|
(0.2)
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
Market gains and
losses/reinvestment
|
(1.6)
|
|
|
(0.4)
|
|
|
(1.4)
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$89.4
|
|
|
$41.2
|
|
|
$—
|
|
|
$—
|
|
|
$11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$144.2
|
|
|
$90.9
|
|
|
$42.1
|
|
|
$—
|
|
|
$—
|
|
|
$11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(e) (continued)
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
|
March 31,
2015
|
$143.0
|
|
|
$139.0
|
|
|
$0.3
|
|
|
$—
|
|
|
$1.8
|
|
|
$1.9
|
|
|
Long-term
inflows
|
9.0
|
|
|
8.1
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.7
|
|
|
Long-term
outflows
|
(8.5)
|
|
|
(7.7)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.7)
|
|
|
Long-term net
flows
|
0.5
|
|
|
0.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(0.3)
|
|
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Market gains and
losses/reinvestment
|
(1.6)
|
|
|
(1.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Acquisitions/dispositions,
net(f)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$137.4
|
|
|
$0.4
|
|
|
$—
|
|
|
$1.8
|
|
|
$2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco
Ltd.
Year-to-date
Assets Under Management - Passive(e)
|
|
|
(in
billions)
|
June 30,
2015
|
|
June 30,
2014
|
|
%
Change
|
|
Beginning
Assets
|
$141.4
|
|
|
$139.7
|
|
|
1.2
|
%
|
|
Long-term
inflows
|
18.9
|
|
|
15.0
|
|
|
26.0
|
%
|
|
Long-term
outflows
|
(14.9)
|
|
|
(10.6)
|
|
|
40.6
|
%
|
|
Long-term net
flows
|
4.0
|
|
|
4.4
|
|
|
(9.1)
|
%
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(4.3)
|
|
|
(32.6)
|
%
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
N/A
|
|
Total net
flows
|
1.1
|
|
|
0.1
|
|
|
N/A
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
6.0
|
|
|
(103.3)
|
%
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
N/A
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
N/A
|
|
Ending
Assets
|
$141.6
|
|
|
$145.8
|
|
|
(2.9)
|
%
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$104.1
|
|
|
$97.5
|
|
|
6.8
|
%
|
|
Average
AUM
|
$143.5
|
|
|
$141.3
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
14.3
|
bps
|
|
13.0
|
bps
|
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
14.3
|
bps
|
|
13.0
|
bps
|
|
|
|
Net revenue yield
on AUM(b)
|
14.3
|
bps
|
|
13.0
|
bps
|
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
14.3
|
bps
|
|
13.0
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
|
December 31,
2014
|
$141.4
|
|
|
$119.7
|
|
|
$21.7
|
|
|
Long-term
inflows
|
18.9
|
|
|
16.5
|
|
|
2.4
|
|
|
Long-term
outflows
|
(14.9)
|
|
|
(13.4)
|
|
|
(1.5)
|
|
|
Long-term net
flows
|
4.0
|
|
|
3.1
|
|
|
0.9
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
1.1
|
|
|
0.2
|
|
|
0.9
|
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
0.5
|
|
|
(0.7)
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$119.7
|
|
|
$21.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
18.9
|
|
|
12.8
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
Long-term
outflows
|
(14.9)
|
|
|
(9.7)
|
|
|
(2.2)
|
|
|
—
|
|
|
—
|
|
|
(3.0)
|
|
|
Long-term net
flows
|
4.0
|
|
|
3.1
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
1.1
|
|
|
0.2
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
1.0
|
|
|
(1.3)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$89.4
|
|
|
$41.2
|
|
|
$—
|
|
|
$—
|
|
|
$11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$143.5
|
|
|
$90.0
|
|
|
$42.1
|
|
|
$—
|
|
|
$—
|
|
|
$11.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes immediately following these tables.
|
Invesco
Ltd.
Year-to-date
Assets Under Management - Passive(e)
(continued)
|
|
|
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
|
18.9
|
|
|
17.7
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
0.8
|
|
|
Long-term
outflows
|
(14.9)
|
|
|
(13.8)
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.8)
|
|
|
Long-term net
flows
|
4.0
|
|
|
3.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.9)
|
|
|
(2.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net flows in
institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total net
flows
|
1.1
|
|
|
1.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
(0.5)
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
Acquisitions/dispositions,
net(f)
|
(0.7)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
June 30,
2015
|
$141.6
|
|
|
$137.4
|
|
|
$0.4
|
|
|
$—
|
|
|
$1.8
|
|
|
$2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 second
quarter for our JVs in China was
$6.9 billion (first quarter 2015:
$5.0 billion; second quarter 2014:
$4.7 billion). For year to date, our
share of the average AUM for our JVs in China in the six months ended June 30, 2015 was $6.0
billion (six months ended June 30,
2014: $4.9 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
10 through 12 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 10
through 12 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 June 30, 2015
includes $63.6 billion in
institutional money market AUM and $39.1
billion in PowerShares QQQ AUM. Ending retail money market
AUM as of June 30, 2015, included in long-term AUM, were
$4.3 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
|
%
|
33
|
%
|
36
|
%
|
15
|
%
|
21
|
%
|
32
|
%
|
|
U.S.
Growth
|
52
|
%
|
100
|
%
|
26
|
%
|
53
|
%
|
52
|
%
|
26
|
%
|
|
U.S. Value
|
98
|
%
|
98
|
%
|
77
|
%
|
60
|
%
|
77
|
%
|
77
|
%
|
|
Sector
|
68
|
%
|
81
|
%
|
74
|
%
|
8
|
%
|
10
|
%
|
10
|
%
|
|
U.K.
|
100
|
%
|
100
|
%
|
100
|
%
|
99
|
%
|
100
|
%
|
98
|
%
|
|
Canadian
|
17
|
%
|
55
|
%
|
52
|
%
|
20
|
%
|
38
|
%
|
52
|
%
|
|
Asian
|
21
|
%
|
95
|
%
|
86
|
%
|
28
|
%
|
76
|
%
|
70
|
%
|
|
European
|
97
|
%
|
98
|
%
|
100
|
%
|
88
|
%
|
91
|
%
|
100
|
%
|
|
Global
|
44
|
%
|
74
|
%
|
86
|
%
|
68
|
%
|
82
|
%
|
85
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
86
|
%
|
86
|
%
|
99
|
%
|
8
|
%
|
7
|
%
|
87
|
%
|
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
70
|
%
|
70
|
%
|
70
|
%
|
92
|
%
|
93
|
%
|
94
|
%
|
|
U.S. Fixed
Income
|
92
|
%
|
92
|
%
|
92
|
%
|
79
|
%
|
81
|
%
|
96
|
%
|
|
Global Fixed
Income
|
55
|
%
|
96
|
%
|
96
|
%
|
52
|
%
|
91
|
%
|
66
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
72
|
%
|
47
|
%
|
57
|
%
|
49
|
%
|
62
|
%
|
60
|
%
|
|
Balanced
|
71
|
%
|
43
|
%
|
45
|
%
|
89
|
%
|
90
|
%
|
99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: AUM measured in the one-, three-, and five-year peer group
rankings represents 60%, 59%, and 58% of total Invesco AUM,
respectively, and AUM measured versus benchmark on a one-, three-,
and five-year basis represents 71%, 70%, and 68% of total Invesco
AUM, respectively, as of 6/30/2015. Peer group rankings are sourced
from a widely-used third party ranking agency in each fund's market
(Lipper, Morningstar, IMA, Russell, Mercer, eVestment Alliance,
SITCA, Value Research) and are asset-weighted in USD. Rankings are
as of prior quarter-end for most institutional products and
preceding month-end for Australian retail funds due to their late
release by third parties. Rankings for the most representative fund
in each GIPS composite are applied to all products within each GIPS
composite. Performance assumes the reinvestment of dividends. Past
performance is not indicative of future results and may not reflect
an investor's experience. Excludes passive products, closed-end
funds, private equity limited partnerships, non-discretionary
funds, unit investment trusts, fund of funds with component funds
managed by Invesco, stable value building block funds, and CDOs.
Certain funds and products were excluded from the analysis because
of limited benchmark or peer group data. Had these been available,
results may have been different. These results are preliminary and
subject to revision.
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SOURCE Invesco Ltd.