ATLANTA, April 28, 2016
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the three months ended March 31,
2016.
"During a challenging time for the industry, Invesco's net
revenues declined 11% year over year," said Martin L. Flanagan, president and CEO. "During
the quarter, Invesco remained focused on delivering strong,
long-term investment performance while running a disciplined
business. Total adjusted operating expenses declined nearly 6% year
over year, and we further enhanced the efficiency of our global
operating platform by expanding resources in our global shared
service centers. Reflecting our continued confidence in the
strength of our global business, we are raising our quarterly
dividend 3.7% to 28 cents per
share."
|
Q1-16
|
|
Q4-15
|
|
Q1-16 vs.
Q4-15
|
|
Q1-15
|
|
Q1-16 vs.
Q1-15
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$818.1
|
m
|
|
$886.1
|
m
|
|
(7.7)%
|
|
|
$917.5
|
m
|
|
(10.8)%
|
|
|
Operating
income
|
$307.1
|
m
|
|
$355.7
|
m
|
|
(13.7)%
|
|
|
$374.4
|
m
|
|
(18.0)%
|
|
|
Operating
margin
|
37.5
|
%
|
|
40.1
|
%
|
|
|
|
40.8
|
%
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$204.8
|
m
|
|
$243.8
|
m
|
|
(16.0)%
|
|
|
$272.1
|
m
|
|
(24.7)%
|
|
|
Diluted
EPS
|
$0.49
|
|
|
$0.58
|
|
|
(15.5)%
|
|
|
$0.63
|
|
|
(22.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,148.7
|
m
|
|
$1,239.7
|
m
|
|
(7.3)%
|
|
|
$1,291.6
|
m
|
|
(11.1)%
|
|
|
Operating
income
|
$274.4
|
m
|
|
$303.6
|
m
|
|
(9.6)%
|
|
|
$338.1
|
m
|
|
(18.8)%
|
|
|
Operating
margin
|
23.9
|
%
|
|
24.5
|
%
|
|
|
|
26.2
|
%
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$161.0
|
m
|
|
$201.9
|
m
|
|
(20.3)%
|
|
|
$259.6
|
m
|
|
(38.0)%
|
|
|
Diluted
EPS
|
$0.38
|
|
|
$0.48
|
|
|
(20.8)%
|
|
|
$0.60
|
|
|
(36.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$771.5
|
bn
|
|
$775.6
|
bn
|
|
(0.5)%
|
|
|
$798.3
|
bn
|
|
(3.4)%
|
|
|
Average
AUM
|
$747.5
|
bn
|
|
$783.7
|
bn
|
|
(4.6)%
|
|
|
$795.4
|
bn
|
|
(6.0)%
|
|
|
|
|
(1)
|
The adjusted
financial measures are all non-GAAP financial measures. See the
information on pages 9 through 11 for a reconciliation to their
most directly comparable U.S. GAAP measures and the notes beginning
on page 18 for other important disclosures.
|
Assets Under Management
Total assets under management (AUM) at March 31, 2016, were
$771.5 billion (December 31,
2015: $775.6 billion), a decrease of
$4.1 billion during the first
quarter. Total net outflows were $0.1
billion for the first quarter, as detailed below:
Summary of net
flows (in billions)
|
|
Q1-16
|
|
Q4-15
|
|
Q1-15
|
Active
|
|
$0.5
|
|
|
$3.5
|
|
|
$6.8
|
|
Passive
|
|
(1.8)
|
|
|
0.4
|
|
|
3.5
|
|
Long-term net
flows
|
|
(1.3)
|
|
|
3.9
|
|
|
10.3
|
|
Invesco PowerShares
QQQ
|
|
(2.6)
|
|
|
2.0
|
|
|
(2.6)
|
|
Money
market
|
|
3.8
|
|
|
(1.8)
|
|
|
(6.0)
|
|
Total net
flows
|
|
($0.1)
|
|
|
$4.1
|
|
|
$1.7
|
|
|
|
|
|
|
|
|
Net market losses led to decreases of $3.0 billion in AUM during the first quarter,
compared to market gains of $21.0
billion in the fourth quarter 2015. Foreign exchange rate
movements led to a $2.6 billion
increase in AUM during the first quarter, compared to a
$5.3 billion decrease in the fourth
quarter 2015. Average AUM during the first quarter were
$747.5 billion, compared to
$783.7 billion for the fourth quarter
2015, a decrease of 4.6%. 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.
U.S. GAAP Earnings
This section comments on significant items that have impacted
the company's first quarter 2016 results as presented in accordance
with U.S. GAAP.
Operating revenues decreased 7.3% to $1,148.7 million in the first quarter, from
$1,239.7 million in the fourth
quarter 2015. Operating expenses decreased by 6.6% to $874.3 million in the first quarter, from
$936.1 million in the fourth quarter
2015.
As previously announced, the company has initiated a broad
program focused on transforming several key business support
functions to become more effective and efficient. Business
optimization charges of $6.8 million
associated with this transformation initiative were recorded in the
first quarter of 2016 (fourth quarter 2015: $16.2 million), including $4.0 million of staff severance costs (fourth
quarter 2015: $12.2 million) recorded
in employee compensation.
Separately, general and administrative expenses for the first
quarter of 2016 include a provision of $6.0
million (fourth quarter 2015: $12.6
million) pertaining to regulatory investigations, and
employee compensation includes $5.4
million associated with the closing of the Jemstep
acquisition.
On April 5, 2016, the company
purchased the remaining 51% of Religare Invesco Asset Management
Company ("Religare"), increasing our interest to 100%. At
March 31, 2016, Invesco was committed
to its plan of acquisition, which under U.S. GAAP requires the
company to include any cumulative translation adjustments as part
of the carrying value of the investment for the purpose of
impairment testing. As a result, during the first quarter of 2016,
the company recorded a non-cash impairment charge of $17.8 million related to its 49% investment in
Religare. The charge relates entirely to the devaluation of the
Indian Rupee against the U.S. Dollar over the period since the 2013
purchase and is reflected in equity in earnings of unconsolidated
affiliates.
In the first quarter of 2015, the company acquired certain
investment management contracts from a third party for a purchase
price comprised of contingent consideration payable in future
periods. During the first quarter of 2016, changes in the fair
value of the contingent consideration liability generated a gain of
$3.5 million (fourth quarter 2015:
$8.7 million gain), which was
recorded in other gains and losses, net.
The inclusion of consolidated investment products in the U.S
GAAP earnings resulted in a reduction of $8.4 million in net income attributable to
Invesco Ltd. in the first quarter, compared to a $19.4 million reduction in the fourth quarter
2015.
The effective tax rate increased to 31.3% for the first quarter,
from 30.8% for the fourth quarter 2015. See note 10 on page 21 for
further details.
On January 1, 2016, the company
adopted the U.S. GAAP accounting guidance in Accounting Standards
Update 2015-02, "Consolidation (Topic 810): Amendments to the
Consolidation Analysis" (ASU 2015-02). See footnote 4 on page
18 for additional information.
Non-GAAP Earnings
This section discusses the company's first quarter 2016 non-GAAP
financial information, as compared to the fourth 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 9 through 11 of this
release.
Net revenues decreased by $68.0
million (7.7%) to $818.1
million in the first quarter, from $886.1 million in the fourth quarter 2015. The
change was primarily due to decreased investment management fees.
Foreign exchange rate changes decreased first quarter net revenues
by $12.6 million compared to the
fourth quarter 2015.
Investment management fees, as adjusted, decreased $78.5 million (7.8%) to $930.3 million in the first quarter, from
$1,008.8 million in the fourth
quarter 2015. The decrease reflects the lower average AUM during
the first quarter compared to the fourth quarter 2015 together with
changes in the AUM product and currency mix and the first quarter
being one day shorter than the fourth quarter 2015. The AUM
currency mix was primarily impacted by a devaluation of 5.6% in the
Pound Sterling against the U.S. Dollar when comparing the average
exchange rate for the first quarter to the fourth quarter 2015.
Foreign exchange rate changes decreased first quarter management
fees by $16.1 million when compared
to fourth quarter 2015.
Service and distribution fees, as adjusted, decreased
$9.9 million (4.8%) to $197.7 million in the first quarter, from
$207.6 million in the fourth quarter
2015. The decrease in service and distribution fees reflects
the lower average AUM in the first quarter. Foreign exchange
rate changes decreased first quarter service and distribution fees
by $0.2 million when compared to
fourth quarter 2015.
Performance fees, as adjusted, were $15.5
million in the first quarter, compared to $18.8 million in the fourth quarter 2015. The
first quarter performance fees were generated from a variety of
investment capabilities including $9.1
million generated from UK equities. Foreign exchange rate
changes decreased first quarter performance fees by $0.6 million when compared to fourth quarter
2015.
Other revenues, as adjusted, decreased by $5.0 million (17.2%) to $24.0 million in the first quarter, compared to
$29.0 million in the fourth quarter
2015, primarily due to decreased transaction fees from real estate
and reduced UIT activities. Foreign exchange rate changes decreased
other revenues by $0.1 million in the
first quarter when compared to the fourth quarter 2015.
Third-party distribution, service and advisory expenses, as
adjusted, decreased by $28.7 million
(7.6%) to $349.4 million in the first
quarter from $378.1 million in the
fourth quarter 2015, consistent with the decrease in revenues
derived from the related retail AUM. Foreign exchange rate changes
decreased third-party distribution, service and advisory expenses
by $4.4 million in the first quarter
when compared to the fourth quarter 2015.
Total operating expenses, as adjusted, decreased by $19.4 million (3.7%) to $511.0 million in the first quarter from
$530.4 million in the fourth quarter
2015. Foreign exchange rate changes decreased first quarter
operating expenses by $6.5 million
when compared to the fourth quarter 2015.
Employee compensation expenses, as adjusted, increased by
$1.5 million (0.4%) to $340.3 million in the first quarter, from
$338.8 million in the fourth quarter
2015. The first quarter includes a seasonal increase in
payroll tax, which was largely offset by a reduction in variable
compensation. Foreign exchange rate changes decreased first
quarter employee compensation expenses by $4.3 million when compared to the fourth quarter
2015.
Marketing expenses, as adjusted, decreased by $9.2 million (26.6%) to $25.4 million in the first quarter, from
$34.6 million in the fourth quarter
2015. Marketing expenditures on advertising, literature, travel and
client events decreased in the first quarter compared to the prior
quarter as expenditures were deferred until later in the year due
to volatile market conditions. Foreign exchange rate changes
decreased first quarter marketing expenses by $0.2 million when compared to the fourth quarter
2015.
Property, office and technology expenses, as adjusted, increased
$0.7 million (0.9%) to $81.1 million in the first quarter, from
$80.4 million in the fourth quarter
2015. The increase is attributable to additional outsourced
administration expenses. Foreign exchange rate changes
decreased first quarter property, office and technology expenses by
$0.9 million when compared to the
fourth quarter 2015.
General and administrative expenses, as adjusted, decreased
$12.4 million (16.2%) to $64.2 million in the first quarter, from
$76.6 million in the fourth quarter
2015. Decreases in general and administrative expenses were the
result of focused expense control during the quarter. In
particular, expenditures on non-essential professional services
ceased and other items of a non-essential discretionary nature were
postponed. Foreign exchange rate changes decreased first quarter
general and administrative expenses by $1.1
million when compared to the fourth quarter 2015.
Non-operating other income and expenses, as adjusted, included a
loss in equity in earnings from investments of $1.1 million in the first quarter, compared to
$0.3 million gain in the fourth
quarter 2015. Other gains and losses, net in the first quarter were
a loss of $7.7 million compared to a
fourth quarter 2015 loss of $10.3
million. The first quarter included $1.4 million in unrealized mark-to-market losses
on trading investments and $7.1
million in foreign exchange losses on inter-company
loans. Non-operating other income and expenses, as adjusted,
also included interest income of $4.3
million and interest expense of $23.9
million in the first quarter, compared to $6.7 million and $23.0
million, respectively in the fourth quarter 2015. At
the end of the first quarter we realized $3.4 million from our Pound Sterling - U.S.
Dollar hedge. During the first quarter, the company entered
into a new series of put option contracts to provide Pound Sterling
/ U.S. Dollar exchange rate coverage from April 2016 through to March 2017 with a strike level set at
$1.4355.
The adjusted effective tax rate decreased to 26.5% for the first
quarter, from 26.6% for the fourth quarter 2015.
Balance Sheet and Cash Flow Statement Presentation
The company is presenting in this release both a U.S. GAAP
balance sheet and balance sheet information excluding consolidated
investment products (CIP), along with a U.S. GAAP statement of cash
flows and cash flow statement information excluding CIP. The
information presented excluding CIP is a non-GAAP presentation.
Balance sheet and cash flow statement information before and after
the consolidation of investment products are reconciled on pages 14
and 17, respectively.
The company believes that, by excluding the consolidation of
investment products, the non-GAAP balance sheet and cash flow
statement information provides a more representative presentation
of our financial risks and the company's cash and debt positions,
allowing more appropriate comparisons with our industry peers.
Management uses these non-GAAP presentations to evaluate the
business, and the presentations are consistent with internal
management reporting. As demonstrated by the selected balance sheet
data that follows, inclusion of the long-term debt of CIP within
liquidity measures, such as debt-to-equity ratios, causes the
company to appear to be significantly more indebted than is
actually the case.
Balance Sheets and Capital Management
Selected balance sheet information is reflected in the table
below:
|
|
Excluding CIP
(Non-GAAP)(1)
|
|
Including CIP
(U.S. GAAP)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2016
|
|
December 31,
2015
|
in
millions
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,454.5
|
|
|
$1,851.4
|
|
|
$1,454.5
|
|
|
$1,851.4
|
|
Investments of
CIP
|
|
—
|
|
|
—
|
|
|
3,639.4
|
|
|
6,016.1
|
|
Total
assets(1)
|
|
$18,947.0
|
|
|
$18,593.7
|
|
|
$22,658.2
|
|
|
$25,073.2
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,073.2
|
|
|
2,072.8
|
|
|
2,073.2
|
|
|
2,072.8
|
|
Debt of
CIP
|
|
—
|
|
|
—
|
|
|
3,061.2
|
|
|
5,437.0
|
|
Long-term debt /
Long-term debt plus CIP debt
|
|
2,073.2
|
|
|
2,072.8
|
|
|
5,134.4
|
|
|
7,509.8
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities(1)
|
|
$11,045.7
|
|
|
$10,499.5
|
|
|
$14,288.4
|
|
|
$16,210.2
|
|
|
|
|
|
|
|
|
|
|
Total permanent
equity(1)
|
|
$7,901.3
|
|
|
$7,926.9
|
|
|
$7,962.5
|
|
|
$8,695.7
|
|
|
|
|
|
|
|
|
|
|
Debt/Equity %
(1) (2)
|
|
26.2
|
%
|
|
26.1
|
%
|
|
64.5
|
%
|
|
86.4
|
%
|
|
|
(1)
|
The balance sheet
line items excluding CIP are non-GAAP financial measures. See the
reconciliation information on page 14 for balance sheet information
before and after the consolidation of investment
products.
|
|
|
(2)
|
The debt/equity ratio
excluding CIP is a non-GAAP financial measure. The debt/equity
ratio is calculated as long-term debt divided by total permanent
equity for the balance sheet information excluding CIP and
long-term debt plus debt of CIP divided by total permanent equity
for the balance sheet including CIP.
|
As of March 31, 2016, the company's cash and cash
equivalents were $1,454.5 million,
with long-term debt of $2,073.2
million. The credit facility balance was zero at both
March 31, 2016 and December 31, 2015.
Dividends paid in the first quarter were $113.0 million. Today the company is announcing a
first-quarter cash dividend of 28.0
cents. The dividend is payable on June 3, 2016, to
shareholders of record at the close of business on May 13,
2016, with an ex-dividend date of May 11, 2016.
During the first quarter the company repurchased $125.0 million of its common shares on the open
market, representing 4.4 million shares at a weighted average share
price of $28.73.
Headcount
As of March 31, 2016, the company had 6,552 employees,
compared to 6,490 employees as of December 31, 2015. The
headcount increase is primarily attributable to growth in our
global shared service centers.
Business Acquisitions
During the first quarter of 2016 the company acquired Jemstep, a
market-leading provider of advisor-focused digital
solutions. On April 5,
2016, the company increased its ownership of Religare
Invesco Asset Management Company, previously our joint venture in
India, from 49% to 100%.
# # #
Invesco Ltd. is a leading independent global investment
management firm, dedicated to helping investors worldwide achieve
their financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our clients
around the world. Operating in more than 20 countries, the firm is
listed on the New York Stock Exchange under the symbol IVZ.
Additional information is available at www.invesco.com.
Members of the investment community and general public are
invited to listen to the conference call today, April 28,
2016, 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, May 12, 2016 at 5:00 p.m. ET by calling 1-866-346-7115 for U.S.
and Canadian callers or 1-203-369-0016 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, geopolitical events and their potential impact on
the company, acquisitions and divestitures, debt and our ability to
obtain additional financing or make payments, regulatory
developments, demand for and pricing of our products and other
aspects of our business or general economic conditions. In
addition, words such as "believes," "expects," "anticipates,"
"intends," "plans," "estimates," "projects," "forecasts," and
future or conditional verbs such as "will," "may," "could,"
"should," and "would" as well as any other statement that
necessarily depends on future events, are intended to identify
forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. Although we make such
statements based on assumptions that we believe to be reasonable,
there can be no assurance that actual results will not differ
materially from our expectations. We caution investors not to rely
unduly on any forward-looking statements and urge you to carefully
consider the risks described in our most recent Form 10-K and
subsequent Forms 10-Q, filed with the Securities and Exchange
Commission. You may obtain these reports from the SEC's website at
www.sec.gov. We expressly disclaim any obligation to update the
information in any public disclosure if any forward-looking
statement later turns out to be inaccurate.
Invesco
Ltd.
|
Non-GAAP Condensed
Consolidated Income Statement Information
|
(Unaudited, in
millions, other than per share amounts, headcount and
AUM)
|
|
|
Q1-16
|
|
Q4-15
|
|
%
Change
|
|
Q1-15
|
|
%
Change
|
Adjusted
revenues:
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$930.3
|
|
|
$1,008.8
|
|
|
(7.8)%
|
|
|
$1,023.6
|
|
|
(9.1)%
|
|
Service and
distribution fees
|
197.7
|
|
|
207.6
|
|
|
(4.8)%
|
|
|
213.4
|
|
|
(7.4)%
|
|
Performance
fees
|
15.5
|
|
|
18.8
|
|
|
(17.6)%
|
|
|
51.7
|
|
|
(70.0)%
|
|
Other
|
24.0
|
|
|
29.0
|
|
|
(17.2)%
|
|
|
31.2
|
|
|
(23.1)%
|
|
Third-party
distribution, service and advisory
|
(349.4)
|
|
|
(378.1)
|
|
|
(7.6)%
|
|
|
(402.4)
|
|
|
(13.2)%
|
|
Net
revenues
|
818.1
|
|
|
886.1
|
|
|
(7.7)%
|
|
|
917.5
|
|
|
(10.8)%
|
|
Adjusted operating
expenses:
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
340.3
|
|
|
338.8
|
|
|
0.4 %
|
|
|
362.7
|
|
|
(6.2)%
|
|
Marketing
|
25.4
|
|
|
34.6
|
|
|
(26.6)%
|
|
|
27.4
|
|
|
(7.3)%
|
|
Property, office
and technology
|
81.1
|
|
|
80.4
|
|
|
0.9 %
|
|
|
77.8
|
|
|
4.2 %
|
|
General and
administrative
|
64.2
|
|
|
76.6
|
|
|
(16.2)%
|
|
|
75.2
|
|
|
(14.6)%
|
|
Total adjusted
operating expenses
|
511.0
|
|
|
530.4
|
|
|
(3.7)%
|
|
|
543.1
|
|
|
(5.9)%
|
|
Adjusted operating
income
|
307.1
|
|
|
355.7
|
|
|
(13.7)%
|
|
|
374.4
|
|
|
(18.0)%
|
|
Adjusted other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(1.1)
|
|
|
0.3
|
|
|
N/A
|
|
|
7.5
|
|
|
N/A
|
|
Interest and
dividend income
|
4.3
|
|
|
6.7
|
|
|
(35.8)%
|
|
|
4.8
|
|
|
(10.4)%
|
|
Interest
expense
|
(23.9)
|
|
|
(23.0)
|
|
|
3.9 %
|
|
|
(18.7)
|
|
|
27.8 %
|
|
Other gains and
losses, net
|
(7.7)
|
|
|
(10.3)
|
|
|
(25.2)%
|
|
|
(2.7)
|
|
|
185.2 %
|
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
0.8
|
|
|
N/A
|
|
|
9.4
|
|
|
N/A
|
|
Adjusted income
before income taxes
|
278.7
|
|
|
330.2
|
|
|
(15.6)%
|
|
|
374.7
|
|
|
(25.6)%
|
|
Adjusted income
tax provision
|
(73.9)
|
|
|
(87.9)
|
|
|
(15.9)%
|
|
|
(98.6)
|
|
|
(25.1)%
|
|
Adjusted net
income
|
204.8
|
|
|
242.3
|
|
|
(15.5)%
|
|
|
276.1
|
|
|
(25.8)%
|
|
Adjusted net
(income)/loss attributable to noncontrolling
interests in consolidated
entities
|
—
|
|
|
1.5
|
|
|
N/A
|
|
|
(4.0)
|
|
|
N/A
|
|
Adjusted net
income attributable to Invesco Ltd.
|
$204.8
|
|
|
$243.8
|
|
|
(16.0)%
|
|
|
$272.1
|
|
|
(24.7)%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
$0.49
|
|
|
$0.58
|
|
|
(15.5)%
|
|
|
$0.63
|
|
|
(22.2)%
|
|
Average diluted
shares outstanding
|
418.9
|
|
|
423.2
|
|
|
(1.0)%
|
|
|
432.5
|
|
|
(3.1)%
|
|
|
|
|
|
|
|
|
|
|
|
Ending
headcount
|
6,552
|
|
|
6,490
|
|
|
1.0 %
|
|
|
6,360
|
|
|
3.0 %
|
|
Ending AUM (in
billions)
|
$771.5
|
|
|
$775.6
|
|
|
(0.5)%
|
|
|
$798.3
|
|
|
(3.4)%
|
|
Average AUM (in
billions)
|
$747.5
|
|
|
$783.7
|
|
|
(4.6)%
|
|
|
$795.4
|
|
|
(6.0)%
|
|
Invesco
Ltd.
|
U.S. GAAP
Condensed Consolidated Income Statements
|
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q1-16
|
|
Q4-15
|
|
%
Change
|
|
Q1-15
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$913.6
|
|
|
$987.1
|
|
|
(7.4)%
|
|
|
$1,001.4
|
|
|
(8.8)%
|
|
Service and
distribution fees
|
197.7
|
|
|
207.6
|
|
|
(4.8)%
|
|
|
213.4
|
|
|
(7.4)%
|
|
Performance
fees
|
14.5
|
|
|
16.8
|
|
|
(13.7)%
|
|
|
46.8
|
|
|
(69.0)%
|
|
Other
|
22.9
|
|
|
28.2
|
|
|
(18.8)%
|
|
|
30.0
|
|
|
(23.7)%
|
|
Total operating
revenues
|
1,148.7
|
|
|
1,239.7
|
|
|
(7.3)%
|
|
|
1,291.6
|
|
|
(11.1)%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
344.4
|
|
|
349.8
|
|
|
(1.5)%
|
|
|
360.9
|
|
|
(4.6)%
|
|
Third-party
distribution, service and advisory
|
347.2
|
|
|
375.2
|
|
|
(7.5)%
|
|
|
399.1
|
|
|
(13.0)%
|
|
Marketing
|
24.9
|
|
|
34.1
|
|
|
(27.0)%
|
|
|
26.7
|
|
|
(6.7)%
|
|
Property, office
and technology
|
79.9
|
|
|
81.3
|
|
|
(1.7)%
|
|
|
76.9
|
|
|
3.9 %
|
|
General and
administrative
|
77.9
|
|
|
95.7
|
|
|
(18.6)%
|
|
|
89.9
|
|
|
(13.3)%
|
|
Total operating
expenses
|
874.3
|
|
|
936.1
|
|
|
(6.6)%
|
|
|
953.5
|
|
|
(8.3)%
|
|
Operating
income
|
274.4
|
|
|
303.6
|
|
|
(9.6)%
|
|
|
338.1
|
|
|
(18.8)%
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(12.2)
|
|
|
3.1
|
|
|
N/A
|
|
|
11.8
|
|
|
N/A
|
|
Interest and
dividend income
|
3.6
|
|
|
5.5
|
|
|
(34.5)%
|
|
|
2.5
|
|
|
44.0 %
|
|
Interest
expense
|
(23.9)
|
|
|
(23.0)
|
|
|
3.9 %
|
|
|
(18.7)
|
|
|
27.8 %
|
|
Other gains and
losses, net
|
(4.7)
|
|
|
3.7
|
|
|
N/A
|
|
|
2.7
|
|
|
N/A
|
|
Other
income/(expense) of CIP, net
|
(7.5)
|
|
|
(12.0)
|
|
|
(37.5)%
|
|
|
39.5
|
|
|
N/A
|
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
0.8
|
|
|
N/A
|
|
|
9.4
|
|
|
N/A
|
|
Income before
income taxes
|
229.7
|
|
|
281.7
|
|
|
(18.5)%
|
|
|
385.3
|
|
|
(40.4)%
|
|
Income tax
provision
|
(71.9)
|
|
|
(86.9)
|
|
|
(17.3)%
|
|
|
(101.3)
|
|
|
(29.0)%
|
|
Net
income
|
157.8
|
|
|
194.8
|
|
|
(19.0)%
|
|
|
284.0
|
|
|
(44.4)%
|
|
Net (income)/loss
attributable to noncontrolling interests in
consolidated entities
|
3.2
|
|
|
7.1
|
|
|
(54.9)%
|
|
|
(24.4)
|
|
|
N/A
|
|
Net income
attributable to Invesco Ltd.
|
$161.0
|
|
|
$201.9
|
|
|
(20.3)%
|
|
|
$259.6
|
|
|
(38.0)%
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.38
|
|
|
$0.48
|
|
|
(20.8)%
|
|
|
$0.60
|
|
|
(36.7)%
|
|
---diluted
|
$0.38
|
|
|
$0.48
|
|
|
(20.8)%
|
|
|
$0.60
|
|
|
(36.7)%
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
418.7
|
|
|
422.9
|
|
|
(1.0)%
|
|
|
432.2
|
|
|
(3.1)%
|
|
---diluted
|
418.9
|
|
|
423.2
|
|
|
(1.0)%
|
|
|
432.5
|
|
|
(3.1)%
|
|
Invesco
Ltd.
|
Reconciliation of
U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP
Condensed Consolidated Income Statement Information
|
(Unaudited, in
millions, other than per share amounts)
|
Three months ended
March 31, 2016
|
|
|
|
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
|
|
$913.6
|
|
|
$11.7
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$5.0
|
|
|
$—
|
|
|
$930.3
|
|
Service and
distribution fees
|
|
197.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
197.7
|
|
Performance
fees
|
|
14.5
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
15.5
|
|
Other
|
|
22.9
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.0
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(2.2)
|
|
|
(347.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(349.4)
|
|
Total operating
revenues reconciled to net revenues
|
|
1,148.7
|
|
|
11.1
|
|
|
(347.2)
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
818.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
344.4
|
|
|
5.1
|
|
|
—
|
|
|
(5.4)
|
|
|
0.2
|
|
|
—
|
|
|
(4.0)
|
|
|
340.3
|
|
Third-party
distribution, service and advisory
|
|
347.2
|
|
|
—
|
|
|
(347.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Marketing
|
|
24.9
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
Property, office and
technology
|
|
79.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
81.1
|
|
General and
administrative
|
|
77.9
|
|
|
1.3
|
|
|
—
|
|
|
(4.1)
|
|
|
—
|
|
|
(1.8)
|
|
|
(9.1)
|
|
|
64.2
|
|
Total operating
expenses
|
|
874.3
|
|
|
7.8
|
|
|
(347.2)
|
|
|
(9.5)
|
|
|
0.2
|
|
|
(1.8)
|
|
|
(12.8)
|
|
|
511.0
|
|
Operating income
reconciled to adjusted operating
income
|
|
274.4
|
|
|
3.3
|
|
|
—
|
|
|
9.5
|
|
|
(0.2)
|
|
|
7.3
|
|
|
12.8
|
|
|
307.1
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
(12.2)
|
|
|
(3.2)
|
|
|
—
|
|
|
17.8
|
|
|
—
|
|
|
(3.5)
|
|
|
—
|
|
|
(1.1)
|
|
Interest and dividend
income
|
|
3.6
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
|
—
|
|
|
4.3
|
|
Interest
expense
|
|
(23.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.9)
|
|
Other gains and
losses, net
|
|
(4.7)
|
|
|
—
|
|
|
—
|
|
|
(3.5)
|
|
|
1.7
|
|
|
0.2
|
|
|
(1.4)
|
|
|
(7.7)
|
|
Other
income/(expense) of CIP, net
|
|
(7.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
Income before income
taxes
|
|
229.7
|
|
|
0.8
|
|
|
—
|
|
|
23.8
|
|
|
1.4
|
|
|
11.6
|
|
|
11.4
|
|
|
278.7
|
|
Income tax
provision
|
|
(71.9)
|
|
|
(0.8)
|
|
|
—
|
|
|
3.5
|
|
|
(0.3)
|
|
|
—
|
|
|
(4.4)
|
|
|
(73.9)
|
|
Net income
|
|
157.8
|
|
|
—
|
|
|
—
|
|
|
27.3
|
|
|
1.1
|
|
|
11.6
|
|
|
7.0
|
|
|
204.8
|
|
Net (income)/loss
attributable to noncontrolling
interests in consolidated
entities
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
Net income
attributable to Invesco Ltd. reconciled to
adjusted net income attributable to
Invesco Ltd.
|
|
$161.0
|
|
|
$—
|
|
|
$—
|
|
|
$27.3
|
|
|
$1.1
|
|
|
$8.4
|
|
|
$7.0
|
|
|
$204.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
23.9
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
37.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
418.9
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
418.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.38
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.49
|
|
|
See
pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
|
Reconciliation of
U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP
Condensed Consolidated Income Statement Information
|
(Unaudited, in
millions, other than per share amounts)
|
Three months ended
December 31, 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
|
|
$987.1
|
|
|
$13.3
|
|
|
$—
|
|
|
$—
|
|
|
$—
|
|
|
$8.4
|
|
|
$—
|
|
|
$1,008.8
|
|
Service and
distribution fees
|
|
207.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207.6
|
|
Performance
fees
|
|
16.8
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
18.8
|
|
Other
|
|
28.2
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.0
|
|
Third-party
distribution, service and advisory
|
|
—
|
|
|
(2.9)
|
|
|
(375.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(378.1)
|
|
Total operating
revenues reconciled to net revenues
|
|
1,239.7
|
|
|
11.6
|
|
|
(375.2)
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
886.1
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation
|
|
349.8
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
(3.5)
|
|
|
—
|
|
|
(12.2)
|
|
|
338.8
|
|
Third-party
distribution, service and advisory
|
|
375.2
|
|
|
—
|
|
|
(375.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Marketing
|
|
34.1
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.6
|
|
Property, office and
technology
|
|
81.3
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.0)
|
|
|
80.4
|
|
General and
administrative
|
|
95.7
|
|
|
1.2
|
|
|
—
|
|
|
(3.6)
|
|
|
—
|
|
|
(1.6)
|
|
|
(15.1)
|
|
|
76.6
|
|
Total operating
expenses
|
|
936.1
|
|
|
7.5
|
|
|
(375.2)
|
|
|
(3.6)
|
|
|
(3.5)
|
|
|
(1.6)
|
|
|
(29.3)
|
|
|
530.4
|
|
Operating income
reconciled to adjusted operating
income
|
|
303.6
|
|
|
4.1
|
|
|
—
|
|
|
3.6
|
|
|
3.5
|
|
|
11.6
|
|
|
29.3
|
|
|
355.7
|
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated affiliates
|
|
3.1
|
|
|
(3.5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.3
|
|
Interest and dividend
income
|
|
5.5
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
0.7
|
|
|
—
|
|
|
6.7
|
|
Interest
expense
|
|
(23.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.0)
|
|
Other gains and
losses, net
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
(8.7)
|
|
|
(4.8)
|
|
|
—
|
|
|
(0.5)
|
|
|
(10.3)
|
|
Other
income/(expense) of CIP, net
|
|
(12.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.0
|
|
|
—
|
|
|
—
|
|
Other
income/(expense) of CSIP, net
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Income before income
taxes
|
|
281.7
|
|
|
1.4
|
|
|
—
|
|
|
(5.1)
|
|
|
(1.6)
|
|
|
25.0
|
|
|
28.8
|
|
|
330.2
|
|
Income tax
provision
|
|
(86.9)
|
|
|
(1.4)
|
|
|
—
|
|
|
7.7
|
|
|
0.5
|
|
|
—
|
|
|
(7.8)
|
|
|
(87.9)
|
|
Net income
|
|
194.8
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
(1.1)
|
|
|
25.0
|
|
|
21.0
|
|
|
242.3
|
|
Net (income)/loss
attributable to noncontrolling
interests in consolidated
entities
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.6)
|
|
|
—
|
|
|
1.5
|
|
Net income
attributable to Invesco Ltd. reconciled to
adjusted net income attributable to
Invesco Ltd.
|
|
$201.9
|
|
|
$—
|
|
|
$—
|
|
|
$2.6
|
|
|
($1.1)
|
|
|
$19.4
|
|
|
$21.0
|
|
|
$243.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
24.5
|
%
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
40.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
423.2
|
|
|
|
|
|
|
|
|
Average diluted
shares outstanding
|
|
423.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS
|
|
$0.48
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.58
|
|
|
See
pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
|
Reconciliation of
U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP
Condensed Consolidated Income Statement Information
|
(Unaudited, in
millions, other than per share amounts)
|
Three months ended
March 31, 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 CIP, net
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.5)
|
|
|
—
|
|
|
—
|
|
Other
income/(expense) of CSIP, net
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
Income 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)
|
|
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
|
|
$0.60
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS
|
|
$0.63
|
|
|
See
pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
|
Condensed
Consolidated Balance Sheet Information Excluding CIP
|
(a non-GAAP
presentation, unaudited, in millions)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
ADJUSTED
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$1,454.5
|
|
|
$1,851.4
|
|
Unsettled fund
receivables
|
957.3
|
|
|
566.3
|
|
Accounts
receivable
|
516.6
|
|
|
533.0
|
|
Investments
|
1,152.5
|
|
|
1,087.6
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
—
|
|
|
319.1
|
|
Assets held for
policyholders
|
6,578.3
|
|
|
6,051.5
|
|
Prepaid
assets
|
127.3
|
|
|
121.2
|
|
Other
assets
|
78.0
|
|
|
107.0
|
|
Property,
equipment and software, net
|
428.9
|
|
|
426.9
|
|
Intangible assets,
net
|
1,361.2
|
|
|
1,354.0
|
|
Goodwill
|
6,292.4
|
|
|
6,175.7
|
|
Total adjusted
assets
|
$18,947.0
|
|
|
$18,593.7
|
|
|
|
|
|
ADJUSTED
LIABILITIES
|
|
|
|
Accrued
compensation and benefits
|
$331.0
|
|
|
$661.3
|
|
Accounts payable
and accrued expenses
|
754.9
|
|
|
863.1
|
|
Policyholder
payables
|
6,578.3
|
|
|
6,051.5
|
|
Unsettled fund
payables
|
933.9
|
|
|
561.9
|
|
Long-term
debt
|
2,073.2
|
|
|
2,072.8
|
|
Deferred tax
liabilities, net
|
374.4
|
|
|
288.9
|
|
Total adjusted
liabilities
|
11,045.7
|
|
|
10,499.5
|
|
|
|
|
|
ADJUSTED TEMPORARY
EQUITY
|
|
|
|
Redeemable noncontrolling interests
in consolidated entities
|
—
|
|
|
167.3
|
|
ADJUSTED PERMANENT
EQUITY
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
Common
shares
|
98.1
|
|
|
98.1
|
|
Additional
paid-in-capital
|
6,139.9
|
|
|
6,197.7
|
|
Treasury
shares
|
(2,472.9)
|
|
|
(2,404.1)
|
|
Retained
earnings
|
4,518.0
|
|
|
4,459.7
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(382.7)
|
|
|
(466.1)
|
|
Total adjusted
equity attributable to Invesco Ltd.
|
7,900.4
|
|
|
7,885.3
|
|
Adjusted equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
0.9
|
|
|
41.6
|
|
Total adjusted
permanent equity
|
7,901.3
|
|
|
7,926.9
|
|
Total adjusted
liabilities, temporary and permanent equity
|
$18,947.0
|
|
|
$18,593.7
|
|
|
Invesco
Ltd.
|
U.S. GAAP
Condensed Consolidated Balance Sheets
|
(Unaudited, in
millions)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$1,454.5
|
|
|
$1,851.4
|
|
Unsettled fund
receivables
|
957.3
|
|
|
566.3
|
|
Accounts
receivable
|
513.9
|
|
|
528.1
|
|
Investments
|
919.6
|
|
|
1,019.1
|
|
Assets of
consolidated sponsored investment products (CSIP)
|
—
|
|
|
319.1
|
|
Assets of
consolidated investment products (CIP):
|
|
|
|
Cash and cash
equivalents of CIP
|
167.8
|
|
|
363.3
|
|
Accounts receivable
of CIP
|
139.6
|
|
|
173.5
|
|
Investments of
CIP
|
3,639.4
|
|
|
6,016.1
|
|
Assets held for
policyholders
|
6,578.3
|
|
|
6,051.5
|
|
Prepaid
assets
|
127.3
|
|
|
121.2
|
|
Other
assets
|
78.0
|
|
|
107.0
|
|
Property,
equipment and software, net
|
428.9
|
|
|
426.9
|
|
Intangible assets,
net
|
1,361.2
|
|
|
1,354.0
|
|
Goodwill
|
6,292.4
|
|
|
6,175.7
|
|
Total
assets
|
$22,658.2
|
|
|
$25,073.2
|
|
LIABILITIES
|
|
|
|
Accrued
compensation and benefits
|
$331.0
|
|
|
$661.3
|
|
Accounts payable
and accrued expenses
|
754.9
|
|
|
863.1
|
|
Liabilities of
CIP:
|
|
|
|
Debt of
CIP
|
3,061.2
|
|
|
5,437.0
|
|
Other liabilities of
CIP
|
181.5
|
|
|
273.7
|
|
Policyholder
payables
|
6,578.3
|
|
|
6,051.5
|
|
Unsettled fund
payables
|
933.9
|
|
|
561.9
|
|
Long-term
debt
|
2,073.2
|
|
|
2,072.8
|
|
Deferred tax
liabilities, net
|
374.4
|
|
|
288.9
|
|
Total
liabilities
|
14,288.4
|
|
|
16,210.2
|
|
TEMPORARY
EQUITY
|
|
|
|
Redeemable
noncontrolling interests in consolidated entities
|
407.3
|
|
|
167.3
|
|
PERMANENT
EQUITY
|
|
|
|
Equity
attributable to Invesco Ltd.:
|
|
|
|
Common
shares
|
98.1
|
|
|
98.1
|
|
Additional
paid-in-capital
|
6,139.9
|
|
|
6,197.7
|
|
Treasury
shares
|
(2,472.9)
|
|
|
(2,404.1)
|
|
Retained
earnings
|
4,487.6
|
|
|
4,439.6
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(348.7)
|
|
|
(446.0)
|
|
Total equity
attributable to Invesco Ltd.
|
7,904.0
|
|
|
7,885.3
|
|
Equity
attributable to nonredeemable noncontrolling interests in
consolidated entities
|
58.5
|
|
|
810.4
|
|
Total permanent
equity
|
7,962.5
|
|
|
8,695.7
|
|
Total liabilities,
temporary and permanent equity
|
$22,658.2
|
|
|
$25,073.2
|
|
|
Invesco
Ltd.
|
Reconciliations of
Condensed Consolidated Balance Sheet Information Excluding CIP
to
|
U.S. GAAP
Condensed Consolidated Balance Sheets (unaudited, in
millions)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
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
|
$1,454.5
|
|
|
$—
|
|
|
$1,454.5
|
|
|
$1,851.4
|
|
|
$—
|
|
|
$1,851.4
|
|
Unsettled fund
receivables
|
957.3
|
|
|
—
|
|
|
957.3
|
|
|
566.3
|
|
|
—
|
|
|
566.3
|
|
Accounts
receivable
|
516.6
|
|
|
(2.7)
|
|
|
513.9
|
|
|
533.0
|
|
|
(4.9)
|
|
|
528.1
|
|
Investments
|
1,152.5
|
|
|
(232.9)
|
|
|
919.6
|
|
|
1,087.6
|
|
|
(68.5)
|
|
|
1,019.1
|
|
Assets of
CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
319.1
|
|
|
—
|
|
|
319.1
|
|
Assets of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents of CIP
|
—
|
|
|
167.8
|
|
|
167.8
|
|
|
—
|
|
|
363.3
|
|
|
363.3
|
|
Accounts receivable of
CIP
|
—
|
|
|
139.6
|
|
|
139.6
|
|
|
—
|
|
|
173.5
|
|
|
173.5
|
|
Investments of
CIP
|
—
|
|
|
3,639.4
|
|
|
3,639.4
|
|
|
—
|
|
|
6,016.1
|
|
|
6,016.1
|
|
Assets held for
policyholders
|
6,578.3
|
|
|
—
|
|
|
6,578.3
|
|
|
6,051.5
|
|
|
—
|
|
|
6,051.5
|
|
Prepaid
assets
|
127.3
|
|
|
—
|
|
|
127.3
|
|
|
121.2
|
|
|
—
|
|
|
121.2
|
|
Other
assets
|
78.0
|
|
|
—
|
|
|
78.0
|
|
|
107.0
|
|
|
—
|
|
|
107.0
|
|
Property, equipment
and software, net
|
428.9
|
|
|
—
|
|
|
428.9
|
|
|
426.9
|
|
|
—
|
|
|
426.9
|
|
Intangible assets,
net
|
1,361.2
|
|
|
—
|
|
|
1,361.2
|
|
|
1,354.0
|
|
|
—
|
|
|
1,354.0
|
|
Goodwill
|
6,292.4
|
|
|
—
|
|
|
6,292.4
|
|
|
6,175.7
|
|
|
—
|
|
|
6,175.7
|
|
Total
assets
|
$18,947.0
|
|
|
$3,711.2
|
|
|
$22,658.2
|
|
|
$18,593.7
|
|
|
$6,479.5
|
|
|
$25,073.2
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Accrued compensation
and benefits
|
$331.0
|
|
|
$—
|
|
|
$331.0
|
|
|
$661.3
|
|
|
$—
|
|
|
$661.3
|
|
Accounts payable and
accrued expenses
|
754.9
|
|
|
—
|
|
|
754.9
|
|
|
863.1
|
|
|
—
|
|
|
863.1
|
|
Liabilities of
CIP:
|
|
|
|
|
|
|
|
|
|
|
|
Debt of CIP
|
—
|
|
|
3,061.2
|
|
|
3,061.2
|
|
|
—
|
|
|
5,437.0
|
|
|
5,437.0
|
|
Other liabilities of
CIP
|
—
|
|
|
181.5
|
|
|
181.5
|
|
|
—
|
|
|
273.7
|
|
|
273.7
|
|
Policyholder
payables
|
6,578.3
|
|
|
—
|
|
|
6,578.3
|
|
|
6,051.5
|
|
|
—
|
|
|
6,051.5
|
|
Unsettled fund
payables
|
933.9
|
|
|
—
|
|
|
933.9
|
|
|
561.9
|
|
|
—
|
|
|
561.9
|
|
Long-term
debt
|
2,073.2
|
|
|
—
|
|
|
2,073.2
|
|
|
2,072.8
|
|
|
—
|
|
|
2,072.8
|
|
Deferred tax
liabilities, net
|
374.4
|
|
|
—
|
|
|
374.4
|
|
|
288.9
|
|
|
—
|
|
|
288.9
|
|
Total
liabilities
|
11,045.7
|
|
|
3,242.7
|
|
|
14,288.4
|
|
|
10,499.5
|
|
|
5,710.7
|
|
|
16,210.2
|
|
TEMPORARY
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests in consolidated entities
|
—
|
|
|
407.3
|
|
|
407.3
|
|
|
167.3
|
|
|
—
|
|
|
167.3
|
|
PERMANENT
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable
to Invesco Ltd.:
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
98.1
|
|
|
—
|
|
|
98.1
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
Additional
paid-in-capital
|
6,139.9
|
|
|
—
|
|
|
6,139.9
|
|
|
6,197.7
|
|
|
—
|
|
|
6,197.7
|
|
Treasury
shares
|
(2,472.9)
|
|
|
—
|
|
|
(2,472.9)
|
|
|
(2,404.1)
|
|
|
—
|
|
|
(2,404.1)
|
|
Retained
earnings
|
4,518.0
|
|
|
(30.4)
|
|
|
4,487.6
|
|
|
4,459.7
|
|
|
(20.1)
|
|
|
4,439.6
|
|
Accumulated other
comprehensive income/(loss), net of tax
|
(382.7)
|
|
|
34.0
|
|
|
(348.7)
|
|
|
(466.1)
|
|
|
20.1
|
|
|
(446.0)
|
|
Total equity
attributable to Invesco Ltd.
|
7,900.4
|
|
|
3.6
|
|
|
7,904.0
|
|
|
7,885.3
|
|
|
—
|
|
|
7,885.3
|
|
Equity attributable
to nonredeemable noncontrolling interests
in consolidated entities
|
0.9
|
|
|
57.6
|
|
|
58.5
|
|
|
41.6
|
|
|
768.8
|
|
|
810.4
|
|
Total permanent
equity
|
7,901.3
|
|
|
61.2
|
|
|
7,962.5
|
|
|
7,926.9
|
|
|
768.8
|
|
|
8,695.7
|
|
Total liabilities,
temporary and permanent equity
|
$18,947.0
|
|
|
$3,711.2
|
|
|
$22,658.2
|
|
|
$18,593.7
|
|
|
$6,479.5
|
|
|
$25,073.2
|
|
|
See
pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
|
Condensed
Consolidated Cash Flow Statement Information Excluding
CIP
|
(a non-GAAP
presentation, unaudited, in millions)
|
|
|
Three months ended
March 31,
|
|
2016
|
|
2015
|
Adjusted operating
activities:
|
|
|
|
U.S. GAAP net
income
|
$157.8
|
|
|
$284.0
|
|
Consolidated
investment product (CIP) net (income)/loss
|
11.6
|
|
|
(12.2)
|
|
Net income
adjusted to remove impact of CIP
|
169.4
|
|
|
271.8
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
Amortization and
depreciation
|
24.7
|
|
|
22.7
|
|
Share-based
compensation expense
|
38.7
|
|
|
40.7
|
|
Other
(gains)/losses, net
|
4.5
|
|
|
(5.4)
|
|
Other
(gains)/losses of CSIP, net
|
—
|
|
|
(6.4)
|
|
Equity in earnings
of unconsolidated affiliates
|
15.7
|
|
|
(13.5)
|
|
Dividends from
unconsolidated affiliates
|
0.6
|
|
|
0.7
|
|
Changes in
operating assets and liabilities:
|
|
|
|
(Increase)/decrease in cash held by
CSIP
|
—
|
|
|
(8.8)
|
|
(Purchase)/sale of
trading investments, net
|
15.7
|
|
|
(39.5)
|
|
(Increase)/decrease in receivables
|
(1,009.9)
|
|
|
(1,618.2)
|
|
Increase/(decrease) in payables
|
662.0
|
|
|
1,308.9
|
|
Adjusted net cash
provided by/(used in) operating activities
|
(78.6)
|
|
|
(47.0)
|
|
|
|
|
|
Adjusted investing
activities:
|
|
|
|
Purchase of
property, equipment and software
|
(26.0)
|
|
|
(23.0)
|
|
Purchase of
available-for-sale investments
|
(2.7)
|
|
|
(61.4)
|
|
Sale of
available-for-sale investments
|
6.2
|
|
|
39.5
|
|
Purchase of
investments by CSIP
|
—
|
|
|
(159.1)
|
|
Sale of
investments by CSIP
|
—
|
|
|
166.7
|
|
Purchase of other
investments
|
(42.5)
|
|
|
(51.9)
|
|
Sale of other
investments
|
22.4
|
|
|
36.6
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
10.7
|
|
|
14.7
|
|
Purchase of
business
|
(33.2)
|
|
|
—
|
|
Adjusted net cash
provided by/(used in) investing activities
|
(65.1)
|
|
|
(37.9)
|
|
|
|
|
|
Adjusted financing
activities:
|
|
|
|
Proceeds from
exercises of share options
|
—
|
|
|
0.7
|
|
Purchases of
treasury shares
|
(125.0)
|
|
|
(76.6)
|
|
Dividends
paid
|
(113.0)
|
|
|
(108.1)
|
|
Excess tax
benefits from share-based compensation
|
(3.9)
|
|
|
13.0
|
|
Third-party
capital invested into CSIP
|
—
|
|
|
0.8
|
|
Net
borrowings/(repayments) under credit facility
|
—
|
|
|
11.2
|
|
Payment of
contingent consideration
|
(3.2)
|
|
|
—
|
|
Adjusted net cash
provided by/(used in) financing activities
|
(245.1)
|
|
|
(159.0)
|
|
|
|
|
|
Increase
/(decrease) in cash and cash equivalents
|
(388.8)
|
|
|
(243.9)
|
|
Foreign exchange
movement on cash and cash equivalents
|
(8.1)
|
|
|
(50.6)
|
|
Cash and cash
equivalents, beginning of period
|
1,851.4
|
|
|
1,514.2
|
|
Cash and cash
equivalents, end of period
|
$1,454.5
|
|
|
$1,219.7
|
|
Invesco
Ltd.
|
U.S. GAAP
Condensed Consolidated Statements of Cash Flows
|
(Unaudited, in
millions)
|
|
|
Three months ended
March 31,
|
|
2016
|
|
2015
|
Operating
activities:
|
|
|
|
Net
income
|
$157.8
|
|
|
$284.0
|
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
Amortization and
depreciation
|
24.7
|
|
|
22.7
|
|
Share-based
compensation expense
|
38.7
|
|
|
40.7
|
|
Other
(gains)/losses, net
|
4.7
|
|
|
(2.7)
|
|
Other
(gains)/losses of CSIP, net
|
—
|
|
|
(6.4)
|
|
Other
(gains)/losses of CIP, net
|
24.6
|
|
|
(24.4)
|
|
Equity in earnings
of unconsolidated affiliates
|
12.2
|
|
|
(11.8)
|
|
Dividends from
unconsolidated affiliates
|
0.6
|
|
|
0.7
|
|
Changes in
operating assets and liabilities:
|
|
|
|
(Increase)/decrease in cash held by
CIP
|
86.3
|
|
|
9.4
|
|
(Increase)/decrease in cash held by
CSIP
|
—
|
|
|
(8.8)
|
|
(Purchase)/sale of
investments by CIP, net
|
(83.3)
|
|
|
—
|
|
(Purchase)/sale of
trading investments, net
|
15.2
|
|
|
(39.5)
|
|
(Increase)/decrease in receivables
|
(993.5)
|
|
|
(1,632.9)
|
|
Increase/(decrease) in payables
|
643.2
|
|
|
1,312.7
|
|
Net cash provided
by/(used in) operating activities
|
(68.8)
|
|
|
(56.3)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
Purchase of
property, equipment and software
|
(26.0)
|
|
|
(23.0)
|
|
Purchase of
available-for-sale investments
|
(0.2)
|
|
|
(34.3)
|
|
Sale of
available-for-sale investments
|
3.3
|
|
|
9.8
|
|
Purchase of
investments by CIP
|
(436.7)
|
|
|
(1,286.6)
|
|
Sale of
investments by CIP
|
394.2
|
|
|
960.6
|
|
Purchase of
investments by CSIP
|
—
|
|
|
(159.1)
|
|
Sale of
investments by CSIP
|
—
|
|
|
166.7
|
|
Purchase of other
investments
|
(41.6)
|
|
|
(51.9)
|
|
Sale of other
investments
|
22.4
|
|
|
36.6
|
|
Returns of capital
and distributions from unconsolidated partnership
investments
|
10.7
|
|
|
14.7
|
|
Purchase of
business
|
(33.2)
|
|
|
—
|
|
Net cash provided
by/(used in) investing activities
|
(107.1)
|
|
|
(366.5)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
Proceeds from
exercises of share options
|
—
|
|
|
0.7
|
|
Purchases of
treasury shares
|
(125.0)
|
|
|
(76.6)
|
|
Dividends
paid
|
(113.0)
|
|
|
(108.1)
|
|
Excess tax
benefits from share-based compensation
|
(3.9)
|
|
|
13.0
|
|
Third-party
capital invested into CIP
|
104.5
|
|
|
12.9
|
|
Third-party
capital distributed by CIP
|
(25.5)
|
|
|
(33.9)
|
|
Third-party
capital invested into CSIP
|
—
|
|
|
0.8
|
|
Borrowings of debt
by CIP
|
—
|
|
|
935.9
|
|
Repayments of debt
by CIP
|
(46.8)
|
|
|
(577.0)
|
|
Net
borrowings/(repayments) under credit facility
|
—
|
|
|
11.2
|
|
Payment of
contingent consideration
|
(3.2)
|
|
|
—
|
|
Net cash provided
by/(used in) financing activities
|
(212.9)
|
|
|
178.9
|
|
|
|
|
|
Increase/(decrease) in cash and cash
equivalents
|
(388.8)
|
|
|
(243.9)
|
|
Foreign exchange
movement on cash and cash equivalents
|
(8.1)
|
|
|
(50.6)
|
|
Cash and cash
equivalents, beginning of period
|
1,851.4
|
|
|
1,514.2
|
|
Cash and cash
equivalents, end of period
|
$1,454.5
|
|
|
$1,219.7
|
|
Invesco
Ltd.
|
Reconciliations of
Condensed Consolidated Cash Flow Information Excluding CIP to U.S.
GAAP Condensed Consolidated Statements of Cash Flows
|
(unaudited, in
millions)
|
|
|
Three months ended
March 31, 2016
|
|
Three months ended
March 31, 2015
|
|
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
|
$169.4
|
|
|
($11.6)
|
|
|
$157.8
|
|
|
$271.8
|
|
|
$12.2
|
|
|
$284.0
|
|
Amortization and
depreciation
|
24.7
|
|
|
—
|
|
|
24.7
|
|
|
22.7
|
|
|
—
|
|
|
22.7
|
|
Share-based
compensation expense
|
38.7
|
|
|
—
|
|
|
38.7
|
|
|
40.7
|
|
|
—
|
|
|
40.7
|
|
Other (gains)/losses,
net
|
4.5
|
|
|
0.2
|
|
|
4.7
|
|
|
(5.4)
|
|
|
2.7
|
|
|
(2.7)
|
|
Other (gains)/losses
of CSIP, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.4)
|
|
|
—
|
|
|
(6.4)
|
|
Other (gains)/losses
of CIP, net
|
—
|
|
|
24.6
|
|
|
24.6
|
|
|
—
|
|
|
(24.4)
|
|
|
(24.4)
|
|
Equity in earnings of
unconsolidated affiliates
|
15.7
|
|
|
(3.5)
|
|
|
12.2
|
|
|
(13.5)
|
|
|
1.7
|
|
|
(11.8)
|
|
Dividends from
unconsolidated affiliates
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in
cash held by CIP
|
—
|
|
|
86.3
|
|
|
86.3
|
|
|
—
|
|
|
9.4
|
|
|
9.4
|
|
(Increase)/decrease in
cash held by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.8)
|
|
|
—
|
|
|
(8.8)
|
|
(Purchase)/sale of
investments by CIP, net
|
—
|
|
|
(83.3)
|
|
|
(83.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Purchase)/sale of
trading investments, net
|
15.7
|
|
|
(0.5)
|
|
|
15.2
|
|
|
(39.5)
|
|
|
—
|
|
|
(39.5)
|
|
(Increase)/decrease
in receivables
|
(1,009.9)
|
|
|
16.4
|
|
|
(993.5)
|
|
|
(1,618.2)
|
|
|
(14.7)
|
|
|
(1,632.9)
|
|
Increase/(decrease)
in payables
|
662.0
|
|
|
(18.8)
|
|
|
643.2
|
|
|
1,308.9
|
|
|
3.8
|
|
|
1,312.7
|
|
Net cash provided
by/(used in) operating activities
|
(78.6)
|
|
|
9.8
|
|
|
(68.8)
|
|
|
(47.0)
|
|
|
(9.3)
|
|
|
(56.3)
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and software
|
(26.0)
|
|
|
—
|
|
|
(26.0)
|
|
|
(23.0)
|
|
|
—
|
|
|
(23.0)
|
|
Purchase of
available-for-sale investments
|
(2.7)
|
|
|
2.5
|
|
|
(0.2)
|
|
|
(61.4)
|
|
|
27.1
|
|
|
(34.3)
|
|
Sale of
available-for-sale investments
|
6.2
|
|
|
(2.9)
|
|
|
3.3
|
|
|
39.5
|
|
|
(29.7)
|
|
|
9.8
|
|
Purchase of
investments by CIP
|
—
|
|
|
(436.7)
|
|
|
(436.7)
|
|
|
—
|
|
|
(1,286.6)
|
|
|
(1,286.6)
|
|
Sale of investments
by CIP
|
—
|
|
|
394.2
|
|
|
394.2
|
|
|
—
|
|
|
960.6
|
|
|
960.6
|
|
Purchase of
investments by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(159.1)
|
|
|
—
|
|
|
(159.1)
|
|
Sale of investments
by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
166.7
|
|
|
—
|
|
|
166.7
|
|
Purchase of other
investments
|
(42.5)
|
|
|
0.9
|
|
|
(41.6)
|
|
|
(51.9)
|
|
|
—
|
|
|
(51.9)
|
|
Sale of other
investments
|
22.4
|
|
|
—
|
|
|
22.4
|
|
|
36.6
|
|
|
—
|
|
|
36.6
|
|
Returns of capital
and distributions from
unconsolidated partnership
investments
|
10.7
|
|
|
—
|
|
|
10.7
|
|
|
14.7
|
|
|
—
|
|
|
14.7
|
|
Purchase of
business
|
(33.2)
|
|
|
—
|
|
|
(33.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash provided
by/(used in) investing activities
|
(65.1)
|
|
|
(42.0)
|
|
|
(107.1)
|
|
|
(37.9)
|
|
|
(328.6)
|
|
|
(366.5)
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercises of share options
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
Purchases of treasury
shares
|
(125.0)
|
|
|
—
|
|
|
(125.0)
|
|
|
(76.6)
|
|
|
—
|
|
|
(76.6)
|
|
Dividends
paid
|
(113.0)
|
|
|
—
|
|
|
(113.0)
|
|
|
(108.1)
|
|
|
—
|
|
|
(108.1)
|
|
Excess tax benefits
from share-based
compensation
|
(3.9)
|
|
|
—
|
|
|
(3.9)
|
|
|
13.0
|
|
|
—
|
|
|
13.0
|
|
Third-party capital
invested into CIP
|
—
|
|
|
104.5
|
|
|
104.5
|
|
|
—
|
|
|
12.9
|
|
|
12.9
|
|
Third-party capital
distributed by CIP
|
—
|
|
|
(25.5)
|
|
|
(25.5)
|
|
|
—
|
|
|
(33.9)
|
|
|
(33.9)
|
|
Third-party capital
invested into CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
Borrowings of debt by
CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
935.9
|
|
|
935.9
|
|
Repayments of debt by
CIP
|
—
|
|
|
(46.8)
|
|
|
(46.8)
|
|
|
—
|
|
|
(577.0)
|
|
|
(577.0)
|
|
Net
borrowings/(repayments) under credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
11.2
|
|
Payment of contingent
consideration
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash provided
by/(used in) financing activities
|
(245.1)
|
|
|
32.2
|
|
|
(212.9)
|
|
|
(159.0)
|
|
|
337.9
|
|
|
178.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
(388.8)
|
|
|
—
|
|
|
(388.8)
|
|
|
(243.9)
|
|
|
—
|
|
|
(243.9)
|
|
Foreign exchange
movement on cash and cash
equivalents
|
(8.1)
|
|
|
—
|
|
|
(8.1)
|
|
|
(50.6)
|
|
|
—
|
|
|
(50.6)
|
|
Cash and cash
equivalents, beginning of period
|
1,851.4
|
|
|
—
|
|
|
1,851.4
|
|
|
1,514.2
|
|
|
—
|
|
|
1,514.2
|
|
Cash and cash
equivalents, end of period
|
$1,454.5
|
|
|
$—
|
|
|
$1,454.5
|
|
|
$1,219.7
|
|
|
$—
|
|
|
$1,219.7
|
|
|
See
pages 18 through 21 for notes to the reconciliation.
|
Invesco
Ltd.
|
Notes
|
|
We are presenting the
following non-GAAP performance measures: net revenues (and by
calculation, net revenue yield on AUM), adjusted operating income
(and by calculation, adjusted operating margin), and adjusted net
income attributable to Invesco Ltd. (and by calculation, adjusted
diluted earnings per share (EPS)). We believe these non-GAAP
measures provide greater transparency into our business on an
ongoing operations basis and allow more appropriate comparisons
with industry peers. Management uses these performance measures to
evaluate the business, and they are consistent with internal
management reporting. The most directly comparable U.S. GAAP
measures are operating revenues (and by calculation, gross revenue
yield on AUM), operating income (and by calculation, operating
margin), and net income attributable to Invesco Ltd. (and by
calculation, diluted EPS). Non-GAAP measures should not be
considered as substitutes for any measures derived in accordance
with U.S. GAAP and may not be comparable to other similarly titled
measures of other companies.
|
|
Notes 1 through 8
relate to the income statement reconciliations presented on pages 9
through 11. Further explanations of the reasons the company
considers it appropriate to present these adjustments in arriving
at the non-GAAP measures can be found in the company's Form
10-K.
|
|
Note 9 relates to the
balance sheet and cash flow statement reconciliations on pages 14
and 17, respectively.
|
|
Note 10 relates to
the U.S. GAAP effective tax rate and the impact of non-controlling
interests in consolidated investment products (CIP) 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,
changes in the fair value of the contingent consideration liability
payable in future periods, acquisition-related impairments,
employee compensation associated with acquisitions and all related
tax effects.
|
|
|
|
Adjustment amounts
related to acquisition and disposition activities are as
follows:
|
|
|
in
millions
|
Q1-16
|
|
Q4-15
|
|
Q1-15
|
|
Intangible
amortization
|
$3.5
|
|
|
$2.7
|
|
|
$2.7
|
|
|
Taxation on
amortization
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
|
Deferred
taxation
|
4.9
|
|
|
4.9
|
|
|
5.3
|
|
|
Employee compensation
expense
|
5.4
|
|
|
—
|
|
|
—
|
|
|
Taxation on employee
compensation expense
|
(2.0)
|
|
|
—
|
|
|
—
|
|
|
Changes in the fair
value of contingent consideration
|
(3.5)
|
|
|
(8.7)
|
|
|
—
|
|
|
Taxation on changes
in the fair value of contingent consideration
|
1.3
|
|
|
3.3
|
|
|
—
|
|
|
Impairment of equity
investment
|
17.8
|
|
|
—
|
|
|
—
|
|
|
Other
acquisition-related items
|
0.6
|
|
|
0.9
|
|
|
1.2
|
|
|
Taxation on other
acquisition-related items
|
(0.3)
|
|
|
(0.1)
|
|
|
(0.5)
|
|
|
|
$27.3
|
|
|
$2.6
|
|
|
$8.3
|
|
|
|
|
|
|
|
|
|
|
|
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. 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)
|
|
|
|
As will be discussed
in Note 1, "Accounting Policies," of the company's Form 10-Q for
the three months ended March 31, 2016, on January 1, 2016, the
company adopted the US GAAP accounting guidance in ASU
2015-02. The adoption resulted in the deconsolidation of
certain CLOs and partnership entities. Additionally, certain
investment products that were not previously consolidated became
variable interest entities (VIEs) upon adoption and were required
to be consolidated. The funds consolidated in prior periods as CSIP
also became VIEs and are now presented in the aggregate with the
company's other VIEs as part of CIP. The company reflected the
adoption of ASU 2015-02 using the modified retrospective approach,
which did not require the restatement of prior periods to conform
to the post-adoption presentation.
|
|
|
|
Management and
performance fees earned by the company, which were eliminated from
operating revenues upon consolidation of the CIPs, were $5.5
million in the first quarter (fourth quarter 2015: $10.0 million;
first quarter 2015: $9.3 million). By deconsolidating these
products in the non-GAAP information, the management and
performance fees are added back. Similarly, the operating expenses
of the CIPs and impact on interest income, interest expense, gains
and losses, and noncontrolling interests are removed in reconciling
from the U.S. GAAP income statement to the non-GAAP information.
The consolidation of the investment products resulted in a decrease
of $8.4 million in net income attributable to Invesco Ltd. in the
first quarter U.S. GAAP earnings (fourth quarter 2015: $19.4
million decrease; first quarter 2015: $8.2 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 change in compensation expense and the
investment income or loss, inclusive of interest and dividend
income, are adjusted in arriving at the non-GAAP information and,
net of the applicable taxation, result in a net income addition or
deduction.
|
|
|
in
millions
|
Q1-16
|
|
Q4-15
|
|
Q1-15
|
|
Market
(depreciation)/appreciation of compensation liability
|
($0.2)
|
|
$3.5
|
|
$3.9
|
|
Investment
loss/(gain), net
|
1.6
|
|
(5.1)
|
|
(5.1)
|
|
Net taxation on
deferred compensation adjustments
|
(0.3)
|
|
0.5
|
|
0.3
|
|
|
$1.1
|
|
($1.1)
|
|
($0.9)
|
|
|
|
|
|
|
|
|
|
|
6.
|
Other reconciling
items
|
|
|
in
millions
|
Q1-16
|
|
Q4-15
|
|
Q1-15
|
|
Business optimization
charges: (a)
|
|
|
|
|
|
|
Employee
compensation
|
4.0
|
|
12.2
|
|
—
|
|
Consulting and
temporary labor
|
3.1
|
|
2.0
|
|
—
|
|
Property, office and
technology
|
(0.3)
|
|
2.0
|
|
—
|
|
Taxation on business
optimization charges
|
(2.3)
|
|
(5.1)
|
|
—
|
|
Regulatory charge
(b)
|
6.0
|
|
12.6
|
|
—
|
|
Legal fees for
regulatory charge (b)
|
—
|
|
0.5
|
|
—
|
|
Taxation on
regulatory-related charges (b)
|
(2.3)
|
|
(2.7)
|
|
—
|
|
Foreign exchange
hedge loss/(gain) (c)
|
(1.4)
|
|
(0.5)
|
|
(3.1)
|
|
Taxation on foreign
exchange hedge amortization (e)
|
0.2
|
|
—
|
|
—
|
|
|
$7.0
|
|
$21.0
|
|
($3.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Business
optimization: Operating expenses for the first quarter 2016 include
costs associated with a business transformation initiative that
includes severance costs of $4.0 million (fourth quarter 2015:
$12.2 million; first quarter 2015: zero), consulting and temporary
labor costs of $3.1 million (fourth quarter 2015: $2.0 million;
first quarter 2015: zero) and a property related credit of $0.3
million (fourth quarter 2015: charge of $2.0 million; first quarter
2015: zero) associated with vacating leased properties as part of a
ongoing location strategy.
|
|
|
|
|
b.
|
General and
administrative expenses for the first quarter 2016 include a
provision of $6.0 million (fourth quarter 2015: $12.6 million;
first quarter 2015: zero) pertaining to regulatory investigations
and related legal fees of $0.5 million in fourth quarter
2015.
|
|
|
|
|
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 March 31,
2017. 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 increased to 31.3% for the first quarter, from 30.8% for the
fourth quarter 2015 and increased from 26.3% for the first quarter
2015. The impact of the inclusion of non-controlling interests in
CIP increased our effective tax rate by 0.4% for the first quarter,
compared to an increase of 0.7% for the fourth quarter 2015 and a
decrease of 1.8% for the first quarter 2015. First quarter 2016
included a 2.2% rate increase as a result of the non-cash
impairment charge related to the 49% investment in
Religare.
|
|
|
Invesco
Ltd.
|
Quarterly Assets
Under Management
|
|
(in
billions)
|
Q1-16
|
|
Q4-15
|
|
%
Change
|
|
Q1-15
|
Beginning
Assets
|
$775.6
|
|
|
$755.8
|
|
|
2.6 %
|
|
|
$792.4
|
|
Long-term
inflows
|
42.8
|
|
|
43.0
|
|
|
(0.5)%
|
|
|
50.5
|
|
Long-term
outflows
|
(44.1)
|
|
|
(39.1)
|
|
|
12.8 %
|
|
|
(40.2)
|
|
Long-term net
flows
|
(1.3)
|
|
|
3.9
|
|
|
N/A
|
|
|
10.3
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
2.0
|
|
|
N/A
|
|
|
(2.6)
|
|
Net flows in
institutional money market funds
|
3.8
|
|
|
(1.8)
|
|
|
N/A
|
|
|
(6.0)
|
|
Total net
flows
|
(0.1)
|
|
|
4.1
|
|
|
N/A
|
|
|
1.7
|
|
Market gains and
losses/reinvestment
|
(3.0)
|
|
|
21.0
|
|
|
N/A
|
|
|
18.2
|
|
Acquisitions/dispositions,
net(f)
|
(3.6)
|
|
|
—
|
|
|
N/A
|
|
|
(0.7)
|
|
Foreign currency
translation
|
2.6
|
|
|
(5.3)
|
|
|
N/A
|
|
|
(13.3)
|
|
Ending
Assets
|
$771.5
|
|
|
$775.6
|
|
|
(0.5)%
|
|
|
$798.3
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$649.2
|
|
|
$678.2
|
|
|
(4.3)%
|
|
|
$685.0
|
|
Average
AUM
|
$747.5
|
|
|
$783.7
|
|
|
(4.6)%
|
|
|
$795.4
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
62.1
|
bps
|
|
63.8
|
bps
|
|
|
|
65.4
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
61.3
|
bps
|
|
62.9
|
bps
|
|
|
|
63.0
|
bps
|
Net revenue yield
on AUM(b)
|
43.8
|
bps
|
|
45.2
|
bps
|
|
|
|
46.1
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
42.9
|
bps
|
|
44.3
|
bps
|
|
|
|
43.5
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
December 31,
2015
|
$775.6
|
|
|
$636.5
|
|
|
$139.1
|
|
Long-term
inflows
|
42.8
|
|
|
32.9
|
|
|
9.9
|
|
Long-term
outflows
|
(44.1)
|
|
|
(32.4)
|
|
|
(11.7)
|
|
Long-term net
flows
|
(1.3)
|
|
|
0.5
|
|
|
(1.8)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
Net flows in
institutional money market funds
|
3.8
|
|
|
4.1
|
|
|
(0.3)
|
|
Total net
flows
|
(0.1)
|
|
|
4.6
|
|
|
(4.7)
|
|
Market gains and
losses/reinvestment
|
(3.0)
|
|
|
(2.8)
|
|
|
(0.2)
|
|
Acquisitions/dispositions,
net(f)
|
(3.6)
|
|
|
(0.4)
|
|
|
(3.2)
|
|
Foreign currency
translation
|
2.6
|
|
|
2.5
|
|
|
0.1
|
|
March 31,
2016
|
$771.5
|
|
|
$640.4
|
|
|
$131.1
|
|
|
|
|
|
|
|
Average
AUM
|
$747.5
|
|
|
$620.6
|
|
|
$126.9
|
|
Gross revenue
yield on AUM(a)
|
62.1bps
|
|
|
72.1bps
|
|
|
13.8bps
|
|
Net revenue yield
on AUM(b)
|
43.8bps
|
|
|
49.9bps
|
|
|
13.8bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2015
|
$775.6
|
|
|
$514.8
|
|
|
$260.8
|
|
Long-term
inflows
|
42.8
|
|
|
33.1
|
|
|
9.7
|
|
Long-term
outflows
|
(44.1)
|
|
|
(35.8)
|
|
|
(8.3)
|
|
Long-term net
flows
|
(1.3)
|
|
|
(2.7)
|
|
|
1.4
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
Net flows in
institutional money market funds
|
3.8
|
|
|
—
|
|
|
3.8
|
|
Total net
flows
|
(0.1)
|
|
|
(5.3)
|
|
|
5.2
|
|
Market gains and
losses/reinvestment
|
(3.0)
|
|
|
(3.1)
|
|
|
0.1
|
|
Acquisitions/dispositions,
net(f)
|
(3.6)
|
|
|
—
|
|
|
(3.6)
|
|
Foreign currency
translation
|
2.6
|
|
|
1.3
|
|
|
1.3
|
|
March 31,
2016
|
$771.5
|
|
|
$507.7
|
|
|
$263.8
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
|
Quarterly Assets
Under Management (continued)
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money Market
(d)
|
|
Alternatives(c)
|
December 31,
2015
|
$775.6
|
|
|
$370.9
|
|
|
$187.9
|
|
|
$48.1
|
|
|
$64.6
|
|
|
$104.1
|
|
Long-term
inflows
|
42.8
|
|
|
20.4
|
|
|
9.7
|
|
|
2.0
|
|
|
1.0
|
|
|
9.7
|
|
Long-term
outflows
|
(44.1)
|
|
|
(24.6)
|
|
|
(10.1)
|
|
|
(3.6)
|
|
|
(1.0)
|
|
|
(4.8)
|
|
Long-term net
flows
|
(1.3)
|
|
|
(4.2)
|
|
|
(0.4)
|
|
|
(1.6)
|
|
|
—
|
|
|
4.9
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
Total net
flows
|
(0.1)
|
|
|
(6.8)
|
|
|
(0.4)
|
|
|
(1.6)
|
|
|
3.8
|
|
|
4.9
|
|
Market gains and
losses/reinvestment
|
(3.0)
|
|
|
(5.5)
|
|
|
2.0
|
|
|
(0.6)
|
|
|
0.2
|
|
|
0.9
|
|
Acquisitions/dispositions,
net(f)
|
(3.6)
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
Foreign currency
translation
|
2.6
|
|
|
0.9
|
|
|
0.3
|
|
|
0.9
|
|
|
—
|
|
|
0.5
|
|
March 31,
2016
|
$771.5
|
|
|
$359.5
|
|
|
$187.1
|
|
|
$46.8
|
|
|
$68.6
|
|
|
$109.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$747.5
|
|
|
$344.4
|
|
|
$185.3
|
|
|
$45.7
|
|
|
$67.1
|
|
|
$105.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
December 31,
2015
|
$775.6
|
|
|
$510.7
|
|
|
$21.7
|
|
|
$104.2
|
|
|
$75.4
|
|
|
$63.6
|
|
Long-term
inflows
|
42.8
|
|
|
24.4
|
|
|
1.0
|
|
|
4.2
|
|
|
6.6
|
|
|
6.6
|
|
Long-term
outflows
|
(44.1)
|
|
|
(26.7)
|
|
|
(1.2)
|
|
|
(5.0)
|
|
|
(8.2)
|
|
|
(3.0)
|
|
Long-term net
flows
|
(1.3)
|
|
|
(2.3)
|
|
|
(0.2)
|
|
|
(0.8)
|
|
|
(1.6)
|
|
|
3.6
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
3.8
|
|
|
5.0
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
(0.4)
|
|
Total net
flows
|
(0.1)
|
|
|
0.1
|
|
|
(0.2)
|
|
|
(1.6)
|
|
|
(1.6)
|
|
|
3.2
|
|
Market gains and
losses/reinvestment
|
(3.0)
|
|
|
0.3
|
|
|
(0.2)
|
|
|
(1.0)
|
|
|
(1.3)
|
|
|
(0.8)
|
|
Acquisitions/dispositions,
net(f)
|
(3.6)
|
|
|
(3.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
2.6
|
|
|
—
|
|
|
1.6
|
|
|
(2.4)
|
|
|
2.4
|
|
|
1.0
|
|
March 31,
2016
|
$771.5
|
|
|
$507.5
|
|
|
$22.9
|
|
|
$99.2
|
|
|
$74.9
|
|
|
$67.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
|
Quarterly Assets
Under Management - Passive(e)
|
|
(in
billions)
|
Q1-16
|
|
Q4-15
|
|
%
Change
|
|
Q1-15
|
Beginning
Assets
|
$139.1
|
|
|
$131.7
|
|
|
5.6 %
|
|
|
$141.4
|
|
Long-term
inflows
|
9.9
|
|
|
9.8
|
|
|
1.0 %
|
|
|
9.9
|
|
Long-term
outflows
|
(11.7)
|
|
|
(9.4)
|
|
|
24.5 %
|
|
|
(6.4)
|
|
Long-term net
flows
|
(1.8)
|
|
|
0.4
|
|
|
N/A
|
|
|
3.5
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
2.0
|
|
|
N/A
|
|
|
(2.6)
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
0.3
|
|
|
N/A
|
|
|
—
|
|
Total net
flows
|
(4.7)
|
|
|
2.7
|
|
|
N/A
|
|
|
0.9
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
4.7
|
|
|
N/A
|
|
|
1.4
|
|
Acquisitions/dispositions,
net(f)
|
(3.2)
|
|
|
—
|
|
|
N/A
|
|
|
(0.7)
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
Ending
Assets
|
$131.1
|
|
|
$139.1
|
|
|
(5.8)%
|
|
|
$143.0
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$89.4
|
|
|
$97.2
|
|
|
(8.0)%
|
|
|
$103.2
|
|
Average
AUM
|
$126.9
|
|
|
$139.1
|
|
|
(8.8)%
|
|
|
$142.7
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
13.8
|
bps
|
|
14.7
|
bps
|
|
|
|
13.3
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
13.8
|
bps
|
|
14.7
|
bps
|
|
|
|
13.3
|
bps
|
Net revenue yield
on AUM(b)
|
13.8
|
bps
|
|
14.7
|
bps
|
|
|
|
13.3
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
13.8
|
bps
|
|
14.7
|
bps
|
|
|
|
13.3
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2015
|
$139.1
|
|
|
$118.7
|
|
|
$20.4
|
|
Long-term
inflows
|
9.9
|
|
|
9.9
|
|
|
—
|
|
Long-term
outflows
|
(11.7)
|
|
|
(10.2)
|
|
|
(1.5)
|
|
Long-term net
flows
|
(1.8)
|
|
|
(0.3)
|
|
|
(1.5)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
Total net
flows
|
(4.7)
|
|
|
(2.9)
|
|
|
(1.8)
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
Acquisitions/dispositions,
net(f)
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
0.1
|
|
March 31,
2016
|
$131.1
|
|
|
$115.7
|
|
|
$15.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
December 31,
2015
|
$139.1
|
|
|
$91.0
|
|
|
$38.6
|
|
|
$—
|
|
|
$0.4
|
|
|
$9.1
|
|
Long-term
inflows
|
9.9
|
|
|
7.1
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Long-term
outflows
|
(11.7)
|
|
|
(8.3)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
(0.8)
|
|
Long-term net
flows
|
(1.8)
|
|
|
(1.2)
|
|
|
(0.5)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
Total net
flows
|
(4.7)
|
|
|
(3.8)
|
|
|
(0.5)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.1)
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
(0.1)
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
Acquisitions/dispositions,
net(f)
|
(3.2)
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31,
2016
|
$131.1
|
|
|
$87.1
|
|
|
$35.6
|
|
|
$—
|
|
|
$0.1
|
|
|
$8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$126.9
|
|
|
$82.7
|
|
|
$35.5
|
|
|
$—
|
|
|
$0.2
|
|
|
$8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
December 31,
2015
|
$139.1
|
|
|
$134.4
|
|
|
$0.4
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.4
|
|
Long-term
inflows
|
9.9
|
|
|
9.7
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Long-term
outflows
|
(11.7)
|
|
|
(11.4)
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
Long-term net
flows
|
(1.8)
|
|
|
(1.7)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(2.6)
|
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
Total net
flows
|
(4.7)
|
|
|
(4.3)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.3)
|
|
Market gains and
losses/reinvestment
|
(0.2)
|
|
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisitions/dispositions,
net(f)
|
(3.2)
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
March 31,
2016
|
$131.1
|
|
|
$126.7
|
|
|
$0.4
|
|
|
$—
|
|
|
$1.8
|
|
|
$2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
|
Footnotes to the
Assets Under Management Tables
|
|
(a)
|
Gross revenue yield
on AUM is equal to annualized total operating revenues divided by
average AUM, excluding China joint venture (JV) AUM. For quarterly
AUM, our share of the average AUM in the first quarter for our JVs
in China was $7.6 billion (fourth quarter 2015: $6.6 billion; first
quarter 2015: $5.0 billion). It is appropriate to exclude the
average AUM of our China JVs for purposes of computing gross
revenue yield on AUM, because the revenues resulting from these AUM
are not presented in our operating revenues. Under U.S. GAAP, our
share of the net income of the JVs is recorded as equity in
earnings of unconsolidated affiliates on our Condensed Consolidated
Statements of Income. Gross revenue yield, the most comparable U.S.
GAAP-based measure to net revenue yield, is not considered a
meaningful effective fee rate measure. The numerator of the gross
revenue yield measure, operating revenues, excludes the management
fees earned from CIP; however, the denominator of the measure
includes the AUM of these investment products. Therefore, the gross
revenue yield measure is not considered representative of the
company's true effective fee rate from AUM. The company evaluates
net revenue yield instead. See the Reconciliations of U.S. GAAP to
Non-GAAP information on pages 9 through 11 of this release for a
reconciliation of operating revenues to net revenues.
|
|
|
(b)
|
Net revenue yield on
AUM is equal to annualized net revenues divided by average AUM. See
the reconciliations of U.S. GAAP to Non-GAAP Information on pages 9
through 11 of this release for a reconciliation of operating
revenues to net revenues.
|
|
|
(c)
|
The alternatives
asset class includes absolute return, commodities, currencies,
financial structures, global macro, long/short equity, managed
futures, multi-alternatives, private capital - direct, private
capital - fund of funds, private direct real estate, public real
estate securities, senior secured loans and custom
solutions.
|
|
|
(d)
|
Ending AUM as of
March 31, 2016 includes $62.8 billion in institutional money
market AUM and $37.5 billion in PowerShares QQQ AUM. Ending retail
money market AUM as of March 31, 2016, included in long-term
AUM, were $5.8 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 of 2016 included $2.7 billion related to the
deconsolidation of certain securitization trusts by Invesco
Mortgage Capital, Inc. (IVR) and $0.9 billion related to other AUM
dispositions. 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
|
24
|
%
|
16
|
%
|
18
|
%
|
12
|
%
|
6
|
%
|
32
|
%
|
|
U.S.
Growth
|
27
|
%
|
27
|
%
|
27
|
%
|
27
|
%
|
96
|
%
|
35
|
%
|
|
U.S. Value
|
29
|
%
|
35
|
%
|
33
|
%
|
29
|
%
|
35
|
%
|
35
|
%
|
|
Sector
|
1
|
%
|
3
|
%
|
5
|
%
|
26
|
%
|
12
|
%
|
14
|
%
|
|
U.K.
|
93
|
%
|
100
|
%
|
100
|
%
|
92
|
%
|
99
|
%
|
100
|
%
|
|
Canadian
|
28
|
%
|
27
|
%
|
57
|
%
|
21
|
%
|
21
|
%
|
47
|
%
|
|
Asian
|
92
|
%
|
90
|
%
|
89
|
%
|
78
|
%
|
81
|
%
|
70
|
%
|
|
European
|
63
|
%
|
94
|
%
|
100
|
%
|
56
|
%
|
94
|
%
|
95
|
%
|
|
Global
|
60
|
%
|
59
|
%
|
84
|
%
|
66
|
%
|
67
|
%
|
90
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
97
|
%
|
90
|
%
|
99
|
%
|
99
|
%
|
90
|
%
|
98
|
%
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
91
|
%
|
71
|
%
|
71
|
%
|
96
|
%
|
97
|
%
|
97
|
%
|
|
U.S. Fixed
Income
|
71
|
%
|
93
|
%
|
94
|
%
|
81
|
%
|
77
|
%
|
92
|
%
|
|
Global Fixed
Income
|
41
|
%
|
68
|
%
|
73
|
%
|
35
|
%
|
33
|
%
|
52
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
51
|
%
|
69
|
%
|
69
|
%
|
34
|
%
|
48
|
%
|
66
|
%
|
|
Balanced
|
25
|
%
|
39
|
%
|
63
|
%
|
41
|
%
|
93
|
%
|
100
|
%
|
|
|
Note:
|
AUM measured in the
one-, three-, and five-year peer group rankings represents 58%,
57%, and 56% of total Invesco AUM, respectively, and AUM measured
versus benchmark on a one-, three-, and five-year basis represents
72%, 69%, and 67% of total Invesco AUM, respectively, as of
3/31/2016. Peer group rankings are sourced from a widely-used third
party ranking agency in each fund's market (Lipper, Morningstar,
IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and
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. 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. Performance assumes the reinvestment of
dividends. Past performance is not indicative of future results and
may not reflect an investor's experience.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/invesco-reports-results-for-the-three-months-ended-march-31-2016-300259129.html
SOURCE Invesco Ltd.