ATLANTA, Oct. 27, 2016
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported
financial results for the three months ended September 30,
2016.
"Our continued focus on clients and running a disciplined
business helped us, in a challenging business environment, achieve
robust long-term net inflows of $12.2
billion during the quarter, driven by solid retail and
institutional demand across active and passive capabilities," said
Martin L. Flanagan, president and
CEO. "We also returned $176 million
to shareholders during the third quarter through dividends and
buybacks."
|
Q3-16
|
|
Q2-16
|
|
Q3-16 vs.
Q2-16
|
|
Q3-15
|
|
Q3-16 vs.
Q3-15
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$1,201.6
|
m
|
|
$1,189.4
|
m
|
|
1.0
|
%
|
|
$1,273.5
|
m
|
|
(5.6)
|
%
|
|
Operating
income
|
$306.3
|
m
|
|
$301.5
|
m
|
|
1.6
|
%
|
|
$352.7
|
m
|
|
(13.2)
|
%
|
|
Operating
margin
|
25.5
|
%
|
|
25.3
|
%
|
|
|
|
27.7
|
%
|
|
|
|
Net income
attributable to Invesco Ltd.
|
$241.2
|
m
|
|
$225.5
|
m
|
|
7.0
|
%
|
|
$249.3
|
m
|
|
(3.2)
|
%
|
|
Diluted
EPS
|
$0.58
|
|
|
$0.54
|
|
|
7.4
|
%
|
|
$0.58
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Financial
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$854.7
|
m
|
|
$856.6
|
m
|
|
(0.2)
|
%
|
|
$903.0
|
m
|
|
(5.3)
|
%
|
|
Adjusted operating
income
|
$339.3
|
m
|
|
$330.4
|
m
|
|
2.7
|
%
|
|
$373.4
|
m
|
|
(9.1)
|
%
|
|
Adjusted operating
margin
|
39.7
|
%
|
|
38.6
|
%
|
|
|
|
41.4
|
%
|
|
|
|
Adjusted net income
attributable to Invesco Ltd.
|
$246.2
|
m
|
|
$233.0
|
m
|
|
5.7
|
%
|
|
$261.4
|
m
|
|
(5.8)
|
%
|
|
Adjusted diluted
EPS
|
$0.60
|
|
|
$0.56
|
|
|
7.1
|
%
|
|
$0.61
|
|
|
(1.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
Ending AUM
|
$820.2
|
bn
|
|
$779.6
|
bn
|
|
5.2
|
%
|
|
$755.8
|
bn
|
|
8.5
|
%
|
|
Average
AUM
|
$814.1
|
bn
|
|
$784.5
|
bn
|
|
3.8
|
%
|
|
$788.9
|
bn
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The adjusted
financial measures are all non-GAAP financial measures. See
the information on pages 8 through 10 for a reconciliation
to their most directly comparable U.S. GAAP measures.
|
Assets Under Management
Total assets under management (AUM) at September 30, 2016,
were $820.2 billion (June 30,
2016: $779.6 billion), an increase of
$40.6 billion during the third
quarter. Total net inflows were $19.2
billion for the third quarter, as detailed below:
Summary of net
flows (in billions)
|
|
Q3-16
|
|
Q2-16
|
|
Q3-15
|
Active
|
|
$8.3
|
|
|
$—
|
|
|
($1.6)
|
|
Passive
|
|
3.9
|
|
|
4.5
|
|
|
(2.3)
|
|
Long-term net
flows
|
|
12.2
|
|
|
4.5
|
|
|
(3.9)
|
|
Invesco PowerShares
QQQ
|
|
1.1
|
|
|
(3.8)
|
|
|
(0.9)
|
|
Money
market
|
|
5.9
|
|
|
2.0
|
|
|
(1.5)
|
|
Total net
flows
|
|
$19.2
|
|
|
$2.7
|
|
|
($6.3)
|
|
|
|
|
|
|
|
|
Annualized long-term
organic growth rate*
|
|
7.1
|
%
|
|
2.6
|
%
|
|
(2.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Annualized long-term
organic growth rate is calculated using long-term net flows
(annualized) divided by opening long-term AUM for the period.
Long-term AUM excludes institutional money market AUM and
PowerShares QQQ AUM.
|
Long-term net flows during the third quarter included a
$6.5 billion inflow from the
State of Rhode Island 529 mandate.
Net market gains led to increases of $23.6
billion in AUM during the third quarter, compared to market
gains of $10.7 billion in the second
quarter 2016. Foreign exchange rate movements led to a $2.2 billion decrease in AUM during the third
quarter, compared to a $7.7 billion
decrease in the second quarter 2016. Average AUM during the third
quarter were $814.1 billion, compared
to $784.5 billion for the second
quarter 2016, an increase of 3.8%. Further analysis is included in
the supplementary schedules to this release.
Operating Results
This section discusses the company's third quarter 2016 results,
as compared to the second quarter 2016, and comments on significant
items that have impacted the company's results as presented in
accordance with U.S. GAAP.
Operating revenues increased $12.2
million (1.0%) to $1,201.6
million in the third quarter, from $1,189.4 million in the second quarter 2016. The
change was primarily due to increased investment management fees,
offset by lower performance fees and other revenues. Foreign
exchange rate changes decreased third quarter operating revenues by
$23.1 million compared to the second
quarter 2016.
Investment management fees increased $19.2 million (2.0%) to $965.9 million in the third quarter, from
$946.7 million in the second quarter
2016. The increase reflects the higher average AUM during the third
quarter compared to the second quarter 2016 partially offset by the
impact of changes in the AUM product and currency mix. The average
Pound Sterling exchange rate for Q3 was 1.3136 compared to 1.4346
for Q2 2016, an 8.4% devaluation. Foreign exchange rate
changes decreased third quarter management fees by $22.8 million when compared to the second quarter
2016. The capital management discussion below includes details of
our Pound Sterling hedge.
Service and distribution fees increased $10.0 million (4.9%) to $213.4 million in the third quarter, from
$203.4 million in the second quarter
2016. The increase in service and distribution fees reflects
the higher average AUM for products that receive these fees in the
third quarter. Foreign exchange rate changes decreased third
quarter service and distribution fees by $0.1 million when compared to the second quarter
2016.
Performance fees were $3.4 million
in the third quarter, compared to $8.9
million in the second quarter 2016. Foreign exchange rate
changes decreased third quarter performance fees by $0.1 million when compared to the second quarter
2016.
Other revenues decreased by $11.5
million (37.8%) to $18.9
million in the third quarter, compared to $30.4 million in the second quarter 2016
primarily due to a decrease of $7.3
million in transaction fees from real estate and a
$2.0 million decrease in
transactional sales charges from unit investment trust products.
Foreign exchange rate changes decreased other revenues by
$0.1 million in the third quarter
when compared to the second quarter 2016.
Operating expenses increased $7.4
million (0.8%) to $895.3
million in the third quarter, from $887.9 million in the second quarter 2016,
primarily related to increased third-party distribution, service
and advisory costs. Business optimization charges were
$11.7 million in the third quarter,
compared to $10.3 million in the
second quarter ($28.8 million year-to
date and $45.0 since inception of
this initiative). As of the end of the third quarter 2016, this
initiative has produced annualized run-rate expense savings of
$13.9 million. Foreign exchange rate
changes decreased third quarter operating expenses by $12.9 million when compared to the second quarter
2016.
Third-party distribution, service and advisory expenses
increased by $13.7 million (3.9%) to
$362.1 million in the third quarter
from $348.4 million in the second
quarter 2016, consistent with the revenues derived from the
increase in related retail AUM. Foreign exchange rate changes
decreased third-party distribution, service and advisory expenses
by $4.7 million in the third quarter
when compared to the second quarter 2016.
Employee compensation expenses decreased by $5.2 million (1.5%) to $345.1 million in the third quarter, from
$350.3 million in the second quarter
2016. Staff severance costs related to business optimization were
$5.8 million in the third quarter
compared to $4.4 million in the
second quarter. Foreign exchange rate changes decreased third
quarter employee compensation expenses by $5.2 million when compared to the second quarter
2016.
Marketing expenses decreased by $1.9
million (6.7%) to $26.4
million in the third quarter, from $28.3 million in the second quarter 2016
reflecting a reduction in client events. Foreign exchange
rate changes decreased third quarter marketing expenses by
$0.3 million when compared to the
second quarter 2016.
Property, office and technology expenses decreased $4.1 million (5.0%) to $78.2 million in the third quarter, from
$82.3 million in the second quarter
2016. The decrease includes a $3.4
million credit recorded in the third quarter associated with
a vacated leased property. Foreign exchange rate changes decreased
third quarter property, office and technology expenses by
$1.0 million when compared to the
second quarter 2016.
General and administrative expenses increased $4.9 million (6.2%) to $83.5 million in the third quarter, from
$78.6 million in the second quarter
2016. General and administrative expenses for the second quarter
included a regulatory settlement credit of $4.9 million that did not recur in the third
quarter. The third quarter included $5.4 million of professional services fees
related to the business optimization initiative compared to
$5.5 million in the second quarter
2016. Foreign exchange rate changes decreased third quarter
general and administrative expenses by $1.7
million when compared to the second quarter 2016.
Equity in earnings of unconsolidated affiliates increased
$0.9 million to $5.5 million in the third quarter from
$4.6 million in the second quarter
2016. Non-operating other income and expenses in the
third quarter also included a $39.0
million consolidated investment product (CIP) net gain
comprised of market-driven gains and losses of investments held by
the consolidated funds and net interest income of CIP (second
quarter 2016: $37.9 million
gain).
Other gains and losses, net was a net gain in the third quarter
of $16.2 million compared to a net
loss of $4.2 million in the second
quarter. The components and variances are included in the table
below:
Summary of Other
gains and losses, net (in millions)
|
|
Q3-16
|
|
Q2-16
|
|
Change
|
Investment
gains/(losses)
|
|
$3.3
|
|
|
$0.4
|
|
|
$2.9
|
|
Market valuation
gains/(losses) in deferred compensation plan investments
|
|
7.3
|
|
|
3.6
|
|
|
3.7
|
|
Market valuation
gains/(losses) on acquisition-related contingent
consideration
|
|
5.3
|
|
|
(15.1)
|
|
|
20.4
|
|
Market valuation
gains/(losses) on foreign exchange hedge contracts
|
|
0.9
|
|
|
6.6
|
|
|
(5.7)
|
|
Foreign exchange
gains/(losses) on intercompany loans
|
|
(0.6)
|
|
|
0.3
|
|
|
(0.9)
|
|
|
|
$16.2
|
|
|
($4.2)
|
|
|
$20.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The acquisition-related contingent consideration gains and
losses relate to the investment management contracts acquired from
Deutsche Bank in the first quarter of 2015. The foreign
exchange hedge contract gains and losses reflect the mark to market
of all the open put option contracts. Further details of
these foreign exchange hedge contracts are given below in the
capital management section.
The effective tax rate decreased to 26.0% for the third quarter,
from 26.1% for the second quarter 2016. The impact of the inclusion
of non-controlling interests in CIP decreased our effective tax
rate by 1.1% for the third quarter, compared to a decrease of 1.0%
for the second quarter 2016. Third quarter 2016 included a 0.2%
rate increase and second quarter 2016 included a 0.5% rate decrease
as a result of adjustments related to changes in the fair value of
contingent consideration discussed above.
Capital Management
As of September 30, 2016, the company's cash and cash
equivalents were $1,581.3 million,
with long-term debt of $2,073.2
million. The credit facility balance was zero at both
September 30, 2016 and June 30, 2016.
Dividends paid in the third quarter were $115.7 million. Today the company is announcing a
third-quarter cash dividend of 28.0
cents. The dividend is payable on December 5, 2016, to
shareholders of record at the close of business on
November 15, 2016, with an ex-dividend date of
November 11, 2016.
During the third quarter the company repurchased $60.0 million of its common shares. This
included the conclusion on September 6,
2016 of a $150.0 million
accelerated share repurchase (ASR) agreement announced on
June 30, 2016 that, in total,
delivered 5.3 million shares at a weighted average share price of
$28.35. Of the $150.0 million ASR, $120.0
million was repurchased in the second quarter. In
addition to the ASR, a further $30.0
million of the company's common shares were repurchased on
the open market during the third quarter, representing 1.0 million
shares at a weighted average share price of $30.96. The diluted share count at September 30, 2016 was 411.7 million.
In early October 2016 the company
received $4.9 million from the third
quarter's Pound Sterling - U.S. Dollar hedge contract. As
previously disclosed, during the third quarter the company entered
into additional put option contracts to hedge 75% of the Pound
Sterling-based operating income and 75% of the Euro-based operating
income through to the end of 2017. These new put option contracts
are set at a strike level of $1.2496
(Pound Sterling) and 1.0719 (Euro).
Headcount
As of September 30, 2016, the company had 6,812 employees,
compared to 6,796 employees as of June 30, 2016.
Invesco is an independent investment management firm dedicated
to delivering an investment experience that helps people get more
out of life. NYSE: IVZ; www.invesco.com.
Members of the investment community and general public are
invited to listen to the conference call today, October 27,
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, November 10, 2016 at 5:00 p.m. ET by calling 1-800-889-9139 for U.S.
and Canadian callers or 1-402-220-9120 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.
Condensed
Consolidated Income Statements
(Unaudited, in
millions, other than per share amounts)
|
|
|
Q3-16
|
|
Q2-16
|
|
%
Change
|
|
Q3-15
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
Investment
management fees
|
$965.9
|
|
|
$946.7
|
|
|
2.0
|
%
|
|
$1,016.9
|
|
|
(5.0)
|
%
|
Service and
distribution fees
|
213.4
|
|
|
203.4
|
|
|
4.9
|
%
|
|
214.8
|
|
|
(0.7)
|
%
|
Performance
fees
|
3.4
|
|
|
8.9
|
|
|
(61.8)
|
%
|
|
15.6
|
|
|
(78.2)
|
%
|
Other
|
18.9
|
|
|
30.4
|
|
|
(37.8)
|
%
|
|
26.2
|
|
|
(27.9)
|
%
|
Total operating
revenues
|
1,201.6
|
|
|
1,189.4
|
|
|
1.0
|
%
|
|
1,273.5
|
|
|
(5.6)
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
362.1
|
|
|
348.4
|
|
|
3.9
|
%
|
|
392.3
|
|
|
(7.7)
|
%
|
Employee
compensation
|
345.1
|
|
|
350.3
|
|
|
(1.5)
|
%
|
|
337.6
|
|
|
2.2
|
%
|
Marketing
|
26.4
|
|
|
28.3
|
|
|
(6.7)
|
%
|
|
24.9
|
|
|
6.0
|
%
|
Property, office
and technology
|
78.2
|
|
|
82.3
|
|
|
(5.0)
|
%
|
|
79.0
|
|
|
(1.0)
|
%
|
General and
administrative
|
83.5
|
|
|
78.6
|
|
|
6.2
|
%
|
|
87.0
|
|
|
(4.0)
|
%
|
Total operating
expenses
|
895.3
|
|
|
887.9
|
|
|
0.8
|
%
|
|
920.8
|
|
|
(2.8)
|
%
|
Operating
income
|
306.3
|
|
|
301.5
|
|
|
1.6
|
%
|
|
352.7
|
|
|
(13.2)
|
%
|
Other
income/(expense):
|
|
|
|
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
5.5
|
|
|
4.6
|
|
|
19.6
|
%
|
|
8.2
|
|
|
(32.9)
|
%
|
Interest and
dividend income
|
2.6
|
|
|
2.5
|
|
|
4.0
|
%
|
|
2.4
|
|
|
8.3
|
%
|
Interest
expense
|
(23.9)
|
|
|
(22.1)
|
|
|
8.1
|
%
|
|
(20.4)
|
|
|
17.2
|
%
|
Other gains and
losses, net
|
16.2
|
|
|
(4.2)
|
|
|
N/A
|
|
|
0.9
|
|
|
N/A
|
|
Other
income/(expense) of CIP, net
|
39.0
|
|
|
37.9
|
|
|
2.9
|
%
|
|
1.5
|
|
|
N/A
|
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
—
|
|
|
N/A
|
|
|
(3.6)
|
|
|
N/A
|
|
Income before
income taxes
|
345.7
|
|
|
320.2
|
|
|
8.0
|
%
|
|
341.7
|
|
|
1.2
|
%
|
Income tax
provision
|
(89.8)
|
|
|
(83.7)
|
|
|
7.3
|
%
|
|
(100.4)
|
|
|
(10.6)
|
%
|
Net
income
|
255.9
|
|
|
236.5
|
|
|
8.2
|
%
|
|
241.3
|
|
|
6.1
|
%
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(14.7)
|
|
|
(11.0)
|
|
|
33.6
|
%
|
|
8.0
|
|
|
N/A
|
|
Net income
attributable to Invesco Ltd.
|
$241.2
|
|
|
$225.5
|
|
|
7.0
|
%
|
|
$249.3
|
|
|
(3.2)
|
%
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
---basic
|
$0.58
|
|
|
$0.54
|
|
|
7.4
|
%
|
|
$0.58
|
|
|
—
|
%
|
---diluted
|
$0.58
|
|
|
$0.54
|
|
|
7.4
|
%
|
|
$0.58
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
---basic
|
412.6
|
|
|
418.9
|
|
|
(1.5)
|
%
|
|
428.8
|
|
|
(3.8)
|
%
|
---diluted
|
412.9
|
|
|
419.1
|
|
|
(1.5)
|
%
|
|
429.1
|
|
|
(3.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Condensed
Consolidated Income Statements
(Unaudited, in
millions, other than per share amounts)
|
|
|
Nine months
ended
September
30,
|
|
|
|
2016
|
|
2015
|
|
%
Change
|
Operating
revenues:
|
|
|
|
|
|
Investment
management fees
|
$2,826.2
|
|
|
$3,074.0
|
|
|
(8.1)
|
%
|
Service and
distribution fees
|
614.5
|
|
|
647.8
|
|
|
(5.1)
|
%
|
Performance
fees
|
26.8
|
|
|
69.1
|
|
|
(61.2)
|
%
|
Other
|
72.2
|
|
|
92.3
|
|
|
(21.8)
|
%
|
Total operating
revenues
|
3,539.7
|
|
|
3,883.2
|
|
|
(8.8)
|
%
|
Operating
expenses:
|
|
|
|
|
|
Third-party
distribution, service and advisory
|
1,057.7
|
|
|
1,204.7
|
|
|
(12.2)
|
%
|
Employee
compensation
|
1,039.8
|
|
|
1,045.7
|
|
|
(0.6)
|
%
|
Marketing
|
79.6
|
|
|
81.3
|
|
|
(2.1)
|
%
|
Property, office
and technology
|
240.4
|
|
|
230.7
|
|
|
4.2
|
%
|
General and
administrative
|
240.0
|
|
|
266.0
|
|
|
(9.8)
|
%
|
Total operating
expenses
|
2,657.5
|
|
|
2,828.4
|
|
|
(6.0)
|
%
|
Operating
income
|
882.2
|
|
|
1,054.8
|
|
|
(16.4)
|
%
|
Other
income/(expense):
|
|
|
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(2.1)
|
|
|
32.0
|
|
|
N/A
|
|
Interest and
dividend income
|
8.7
|
|
|
7.5
|
|
|
16.0
|
%
|
Interest
expense
|
(69.9)
|
|
|
(58.7)
|
|
|
19.1
|
%
|
Other gains and
losses, net
|
7.3
|
|
|
(5.2)
|
|
|
N/A
|
|
Other
income/(expense) of CIP, net
|
69.4
|
|
|
39.1
|
|
|
77.5
|
%
|
Other
income/(expense) of CSIP, net
|
—
|
|
|
10.9
|
|
|
N/A
|
|
Income before
income taxes
|
895.6
|
|
|
1,080.4
|
|
|
(17.1)
|
%
|
Income tax
provision
|
(245.4)
|
|
|
(311.1)
|
|
|
(21.1)
|
%
|
Net
income
|
650.2
|
|
|
769.3
|
|
|
(15.5)
|
%
|
Net (income)/loss
attributable to noncontrolling interests in consolidated
entities
|
(22.5)
|
|
|
(3.1)
|
|
|
625.8
|
%
|
Net income
attributable to Invesco Ltd.
|
$627.7
|
|
|
$766.2
|
|
|
(18.1)
|
%
|
Earnings per
share:
|
|
|
|
|
|
---basic
|
$1.51
|
|
|
$1.78
|
|
|
(15.2)
|
%
|
---diluted
|
$1.51
|
|
|
$1.78
|
|
|
(15.2)
|
%
|
|
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
|
|
---basic
|
416.7
|
|
|
430.9
|
|
|
(3.3)
|
%
|
---diluted
|
417.0
|
|
|
431.3
|
|
|
(3.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco Ltd.
Non-GAAP Information
and Reconciliations
We are presenting the following non-GAAP performance measures:
net revenues (and by calculation, net revenue yield on AUM),
adjusted operating income, adjusted operating margin,
adjusted net income attributable to Invesco Ltd., and adjusted
diluted EPS. We believe 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 for
internal management reporting. The most directly comparable U.S.
GAAP measures are operating revenues (and by calculation, gross
revenue yield on AUM), operating income, operating margin, net
income attributable to Invesco Ltd., and diluted EPS. 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.
The following are reconciliations between the presented non-GAAP
measures and the most directly comparable U.S. GAAP measures. These
measures are described more fully in the company's Forms 10-K and
10-Q. Refer to these public filings for additional
information about the company' non-GAAP performance measures.
In addition, a reconciliation of adjusted operating expenses is
provided below, together with reconciliations of the U.S.
GAAP operating expense lines to provide further analysis of the
non-GAAP adjustments.
Reconciliation of Operating revenues to Net revenues:
in
millions
|
Q3-16
|
|
Q2-16
|
|
Q3-15
|
|
Operating revenues,
U.S. GAAP basis
|
1,201.6
|
|
|
1,189.4
|
|
|
1,273.5
|
|
|
Proportional share of
revenues, net of third-party distribution, service and advisory
expenses, from joint venture investments
|
9.5
|
|
|
10.5
|
|
|
12.3
|
|
|
Third party
distribution, service and advisory expenses
|
(362.1)
|
|
|
(348.4)
|
|
|
(392.3)
|
|
|
CIP
|
5.7
|
|
|
5.1
|
|
|
9.5
|
|
|
Net
revenues
|
854.7
|
|
|
856.6
|
|
|
903.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating income to Adjusted operating
income:
in
millions
|
Q3-16
|
|
Q2-16
|
|
Q3-15
|
|
Operating income,
U.S. GAAP basis
|
306.3
|
|
|
301.5
|
|
|
352.7
|
|
|
Proportional share of
net operating income from joint venture investments
|
3.0
|
|
|
4.2
|
|
|
4.2
|
|
|
CIP
|
13.1
|
|
|
13.0
|
|
|
18.2
|
|
|
Business
combinations
|
4.5
|
|
|
4.5
|
|
|
2.7
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
4.1
|
|
|
1.8
|
|
|
(4.4)
|
|
|
Business optimization
expenses
|
11.7
|
|
|
10.3
|
|
|
—
|
|
|
Vacated property
lease credit
|
(3.4)
|
|
|
—
|
|
|
—
|
|
|
Regulatory-related
(credits)/charges
|
—
|
|
|
(4.9)
|
|
|
—
|
|
|
Adjusted operating
income
|
339.3
|
|
|
330.4
|
|
|
373.4
|
|
|
|
|
|
|
|
|
|
Operating margin
(1)
|
25.5
|
%
|
|
25.3
|
%
|
|
27.7
|
%
|
|
Adjusted operating
margin (2)
|
39.7
|
%
|
|
38.6
|
%
|
|
41.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income attributable to Invesco Ltd. to
Adjusted net income attributable to Invesco Ltd.
in
millions
|
Q3-16
|
|
Q2-16
|
|
Q3-15
|
|
Net income
attributable to Invesco Ltd., U.S. GAAP basis
|
241.2
|
|
|
225.5
|
|
|
249.3
|
|
|
CIP, eliminated upon
consolidation
|
(3.2)
|
|
|
(8.0)
|
|
|
13.2
|
|
|
Business
combinations:
|
|
|
|
|
|
|
Changes in the fair
value of contingent consideration
|
(5.3)
|
|
|
15.1
|
|
|
(18.4)
|
|
|
Other business
combination-related adjustments
|
4.5
|
|
|
4.5
|
|
|
2.7
|
|
|
Deferred compensation
plan market valuation changes and dividend income less compensation
expense
|
(3.5)
|
|
|
(2.0)
|
|
|
7.4
|
|
|
Business optimization
expenses
|
11.7
|
|
|
10.3
|
|
|
—
|
|
|
Vacated property
lease credit
|
(3.4)
|
|
|
—
|
|
|
—
|
|
|
Regulatory-related
(credits)/charges
|
—
|
|
|
(4.9)
|
|
|
—
|
|
|
Foreign exchange
hedge
|
2.2
|
|
|
(8.4)
|
|
|
(1.6)
|
|
|
Taxation:
|
|
|
|
|
|
|
Taxation on business
combinations
|
6.2
|
|
|
(1.7)
|
|
|
11.4
|
|
|
Taxation on deferred
compensation plan market valuation changes and dividend income less
compensation expense
|
1.1
|
|
|
0.7
|
|
|
(2.6)
|
|
|
Taxation on business
optimization charges
|
(3.7)
|
|
|
(3.2)
|
|
|
—
|
|
|
Taxation on vacated
property lease credit
|
0.7
|
|
|
—
|
|
|
—
|
|
|
Taxation on
regulatory-related (credits)/charges
|
(1.4)
|
|
|
1.9
|
|
|
—
|
|
|
Taxation on foreign
exchange hedge
|
(0.9)
|
|
|
3.2
|
|
|
—
|
|
|
Adjusted net income
attributable to Invesco Ltd. (3)
|
246.2
|
|
|
233.0
|
|
|
261.4
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
412.9
|
|
|
419.1
|
|
|
429.1
|
|
|
Diluted
EPS
|
$0.58
|
|
|
$0.54
|
|
|
$0.58
|
|
|
Adjusted diluted EPS
(4)
|
$0.60
|
|
|
$0.56
|
|
|
$0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________
|
(1)
|
Operating margin is
equal to operating income divided by operating revenues.
|
(2)
|
Adjusted operating
margin is equal to adjusted operating income divided by net
revenues.
|
(3)
|
The effective tax
rate on adjusted net income attributable to Invesco Ltd. is 26.5%
(second quarter 2016: 26.5%; third quarter 2015: 26.5%).
|
(4)
|
Adjusted diluted EPS
is equal to adjusted net income attributable to Invesco Ltd.
divided by the weighted average number of common and restricted
shares outstanding. There is no difference between the
calculated earnings per share amounts presented above and the
calculated earnings per share amounts under the two class
method.
|
Reconciliation of Operating expenses to Adjusted operating
expenses:
in
millions
|
Q3-16
|
|
Q2-16
|
|
Q3-15
|
|
Operating expenses,
U.S. GAAP basis
|
895.3
|
|
|
887.9
|
|
|
920.8
|
|
|
Proportional share of
revenues, net of third-party distribution expenses, from joint
venture investments
|
6.5
|
|
|
6.3
|
|
|
8.1
|
|
|
Third party
distribution, service and advisory expenses
|
(362.1)
|
|
|
(348.4)
|
|
|
(392.3)
|
|
|
CIP
|
(7.4)
|
|
|
(7.9)
|
|
|
(8.7)
|
|
|
Business
combinations
|
(4.5)
|
|
|
(4.5)
|
|
|
(2.7)
|
|
|
Compensation expense
related to market valuation changes in deferred compensation
plans
|
(4.1)
|
|
|
(1.8)
|
|
|
4.4
|
|
|
Business
optimization
|
(11.7)
|
|
|
(10.3)
|
|
|
—
|
|
|
Vacated property
lease credit
|
3.4
|
|
|
—
|
|
|
—
|
|
|
Regulatory-related
credits/(charges)
|
—
|
|
|
4.9
|
|
|
—
|
|
|
Adjusted operating
expenses
|
515.4
|
|
|
526.2
|
|
|
529.6
|
|
|
|
|
|
|
|
|
|
Employee
compensation, U.S. GAAP basis
|
345.1
|
|
|
350.3
|
|
|
337.6
|
|
|
Proportional
consolidation of joint ventures
|
4.7
|
|
|
4.1
|
|
|
4.9
|
|
|
Business
combinations
|
(0.8)
|
|
|
(0.3)
|
|
|
—
|
|
|
Market
appreciation/depreciation of deferred compensation
awards
|
(4.1)
|
|
|
(1.8)
|
|
|
4.4
|
|
|
Business
optimization
|
(5.8)
|
|
|
(4.4)
|
|
|
—
|
|
|
Adjusted employee
compensation
|
339.1
|
|
|
347.9
|
|
|
346.9
|
|
|
|
|
|
|
|
|
|
Marketing, U.S. GAAP
basis
|
26.4
|
|
|
28.3
|
|
|
24.9
|
|
|
Proportional
consolidation of joint ventures
|
0.4
|
|
|
0.7
|
|
|
0.9
|
|
|
Adjusted
marketing
|
26.8
|
|
|
29.0
|
|
|
25.8
|
|
|
|
|
|
|
|
|
|
Property, office and
technology, U.S. GAAP basis
|
78.2
|
|
|
82.3
|
|
|
79.0
|
|
|
Proportional
consolidation of joint ventures
|
1.0
|
|
|
0.9
|
|
|
0.9
|
|
|
Business
optimization
|
(0.5)
|
|
|
(0.4)
|
|
|
—
|
|
|
Vacated property
lease credit
|
3.4
|
|
|
—
|
|
|
—
|
|
|
Adjusted property,
office and technology
|
82.1
|
|
|
82.8
|
|
|
79.9
|
|
|
|
|
|
|
|
|
|
General and
administrative, U.S. GAAP basis
|
83.5
|
|
|
78.6
|
|
|
87.0
|
|
|
Proportional
consolidation of joint ventures
|
0.4
|
|
|
0.6
|
|
|
1.4
|
|
|
Business
combinations
|
(3.7)
|
|
|
(4.2)
|
|
|
(2.7)
|
|
|
CIP
|
(7.4)
|
|
|
(7.9)
|
|
|
(8.7)
|
|
|
Business
optimization
|
(5.4)
|
|
|
(5.5)
|
|
|
—
|
|
|
Regulatory-related
credits/(charges)
|
—
|
|
|
4.9
|
|
|
—
|
|
|
Adjusted general and
administrative
|
67.4
|
|
|
66.5
|
|
|
77.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Invesco
Ltd.
Quarterly Assets
Under Management
|
|
(in
billions)
|
Q3-16
|
|
Q2-16
|
|
%
Change
|
|
Q3-15
|
Beginning
Assets
|
$779.6
|
|
|
$771.5
|
|
|
1.0
|
%
|
|
$803.6
|
|
Long-term
inflows
|
51.7
|
|
|
45.8
|
|
|
12.9
|
%
|
|
43.5
|
|
Long-term
outflows
|
(39.5)
|
|
|
(41.3)
|
|
|
(4.4)
|
%
|
|
(47.4)
|
|
Long-term net
flows
|
12.2
|
|
|
4.5
|
|
|
171.1
|
%
|
|
(3.9)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
(3.8)
|
|
|
N/A
|
|
|
(0.9)
|
|
Net flows in
institutional money market funds
|
5.9
|
|
|
2.0
|
|
|
195.0
|
%
|
|
(1.5)
|
|
Total net
flows
|
19.2
|
|
|
2.7
|
|
|
611.1
|
%
|
|
(6.3)
|
|
Market gains and
losses/reinvestment
|
23.6
|
|
|
10.7
|
|
|
120.6
|
%
|
|
(35.6)
|
|
Acquisitions/dispositions, net
|
—
|
|
|
2.4
|
|
|
(100.0)
|
%
|
|
—
|
|
Foreign currency
translation
|
(2.2)
|
|
|
(7.7)
|
|
|
(71.4)
|
%
|
|
(5.9)
|
|
Ending
Assets
|
$820.2
|
|
|
$779.6
|
|
|
5.2
|
%
|
|
$755.8
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$705.9
|
|
|
$681.8
|
|
|
3.5
|
%
|
|
$685.5
|
|
Ending long-term
AUM
|
$711.5
|
|
|
$681.7
|
|
|
4.4
|
%
|
|
$657.3
|
|
Average
AUM
|
$814.1
|
|
|
$784.5
|
|
|
3.8
|
%
|
|
$788.9
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
59.8
|
bps
|
|
61.3
|
bps
|
|
|
|
65.1
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
59.6
|
bps
|
|
60.9
|
bps
|
|
|
|
64.3
|
bps
|
Net revenue yield
on AUM(b)
|
42.0
|
bps
|
|
43.7
|
bps
|
|
|
|
45.8
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
41.8
|
bps
|
|
43.2
|
bps
|
|
|
|
44.9
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
June 30,
2016
|
$779.6
|
|
|
$646.1
|
|
|
$133.5
|
|
Long-term
inflows
|
51.7
|
|
|
39.9
|
|
|
11.8
|
|
Long-term
outflows
|
(39.5)
|
|
|
(31.6)
|
|
|
(7.9)
|
|
Long-term net
flows
|
12.2
|
|
|
8.3
|
|
|
3.9
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
—
|
|
|
1.1
|
|
Net flows in
institutional money market funds
|
5.9
|
|
|
6.0
|
|
|
(0.1)
|
|
Total net
flows
|
19.2
|
|
|
14.3
|
|
|
4.9
|
|
Market gains and
losses/reinvestment
|
23.6
|
|
|
18.7
|
|
|
4.9
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
(2.2)
|
|
|
(2.2)
|
|
|
—
|
|
September 30,
2016
|
$820.2
|
|
|
$676.9
|
|
|
$143.3
|
|
|
|
|
|
|
|
Average
AUM
|
$814.1
|
|
|
$673.1
|
|
|
$141.0
|
|
Gross revenue
yield on AUM(a)
|
59.8
|
bps
|
|
69.3
|
bps
|
|
15.3
|
bps
|
Net revenue yield
on AUM(b)
|
42.0
|
bps
|
|
47.6
|
bps
|
|
15.3
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
June 30,
2016
|
$779.6
|
|
|
$504.3
|
|
|
$275.3
|
|
Long-term
inflows
|
51.7
|
|
|
40.3
|
|
|
11.4
|
|
Long-term
outflows
|
(39.5)
|
|
|
(31.5)
|
|
|
(8.0)
|
|
Long-term net
flows
|
12.2
|
|
|
8.8
|
|
|
3.4
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Net flows in
institutional money market funds
|
5.9
|
|
|
—
|
|
|
5.9
|
|
Total net
flows
|
19.2
|
|
|
9.9
|
|
|
9.3
|
|
Market gains and
losses/reinvestment
|
23.6
|
|
|
20.2
|
|
|
3.4
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
(2.2)
|
|
|
(2.3)
|
|
|
0.1
|
|
September 30,
2016
|
$820.2
|
|
|
$532.1
|
|
|
$288.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
June 30,
2016
|
$779.6
|
|
|
$348.8
|
|
|
$196.3
|
|
|
$47.4
|
|
|
$71.1
|
|
|
$116.0
|
|
Long-term
inflows
|
51.7
|
|
|
19.9
|
|
|
17.1
|
|
|
2.6
|
|
|
1.2
|
|
|
10.9
|
|
Long-term
outflows
|
(39.5)
|
|
|
(23.1)
|
|
|
(7.9)
|
|
|
(2.4)
|
|
|
(1.1)
|
|
|
(5.0)
|
|
Long-term net
flows
|
12.2
|
|
|
(3.2)
|
|
|
9.2
|
|
|
0.2
|
|
|
0.1
|
|
|
5.9
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
5.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
Total net
flows
|
19.2
|
|
|
(2.1)
|
|
|
9.2
|
|
|
0.2
|
|
|
6.0
|
|
|
5.9
|
|
Market gains and
losses/reinvestment
|
23.6
|
|
|
20.0
|
|
|
1.9
|
|
|
1.5
|
|
|
0.1
|
|
|
0.1
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
(2.2)
|
|
|
(1.4)
|
|
|
(0.4)
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
|
September 30,
2016
|
$820.2
|
|
|
$365.3
|
|
|
$207.0
|
|
|
$48.9
|
|
|
$77.2
|
|
|
$121.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$814.1
|
|
|
$364.4
|
|
|
$203.8
|
|
|
$48.4
|
|
|
$78.1
|
|
|
$119.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By client
domicile: (in billions)
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental
Europe
|
|
Asia
|
June 30,
2016
|
$779.6
|
|
|
$512.5
|
|
|
$23.1
|
|
|
$93.8
|
|
|
$72.8
|
|
|
$77.4
|
|
Long-term
inflows
|
51.7
|
|
|
32.5
|
|
|
0.8
|
|
|
4.1
|
|
|
6.0
|
|
|
8.3
|
|
Long-term
outflows
|
(39.5)
|
|
|
(24.5)
|
|
|
(1.0)
|
|
|
(3.6)
|
|
|
(6.3)
|
|
|
(4.1)
|
|
Long-term net
flows
|
12.2
|
|
|
8.0
|
|
|
(0.2)
|
|
|
0.5
|
|
|
(0.3)
|
|
|
4.2
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
5.9
|
|
|
1.7
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
0.1
|
|
Total net
flows
|
19.2
|
|
|
10.8
|
|
|
(0.2)
|
|
|
4.6
|
|
|
(0.3)
|
|
|
4.3
|
|
Market gains and
losses/reinvestment
|
23.6
|
|
|
13.9
|
|
|
1.3
|
|
|
4.9
|
|
|
2.5
|
|
|
1.0
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
(2.2)
|
|
|
—
|
|
|
(0.3)
|
|
|
(2.6)
|
|
|
0.5
|
|
|
0.2
|
|
September 30,
2016
|
$820.2
|
|
|
$537.2
|
|
|
$23.9
|
|
|
$100.7
|
|
|
$75.5
|
|
|
$82.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Year-to-Date
Assets Under Management
|
|
(in
billions)
|
September 30,
2016
|
|
September 30,
2015
|
|
%
Change
|
Beginning
Assets
|
$775.6
|
|
|
$792.4
|
|
|
(2.1)
|
%
|
Long-term
inflows
|
140.3
|
|
|
146.1
|
|
|
(4.0)
|
%
|
Long-term
outflows
|
(124.9)
|
|
|
(133.8)
|
|
|
(6.7)
|
%
|
Long-term net
flows
|
15.4
|
|
|
12.3
|
|
|
25.2
|
%
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(3.8)
|
|
|
39.5
|
%
|
Net flows in
institutional money market funds
|
11.7
|
|
|
(10.1)
|
|
|
N/A
|
|
Total net
flows
|
21.8
|
|
|
(1.6)
|
|
|
N/A
|
|
Market gains and
losses/reinvestment
|
31.3
|
|
|
(26.0)
|
|
|
N/A
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
(0.7)
|
|
|
71.4
|
%
|
Foreign currency
translation
|
(7.3)
|
|
|
(8.3)
|
|
|
(12.0)
|
%
|
Ending
Assets
|
$820.2
|
|
|
$755.8
|
|
|
8.5
|
%
|
|
|
|
|
|
|
Average long-term
AUM
|
$678.9
|
|
|
$692.2
|
|
|
(1.9)
|
%
|
Ending long-term
AUM
|
$711.5
|
|
|
$657.3
|
|
|
8.2
|
%
|
Average
AUM
|
$782.0
|
|
|
$798.4
|
|
|
(2.1)
|
%
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
61.0
|
bps
|
|
65.3
|
bps
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
60.6
|
bps
|
|
64.2
|
bps
|
|
|
Net revenue yield
on AUM(b)
|
43.1
|
bps
|
|
46.0
|
bps
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
42.6
|
bps
|
|
44.7
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
billions)
|
Total
AUM
|
|
Active(e)
|
|
Passive(e)
|
December 31,
2015
|
$775.6
|
|
|
$636.5
|
|
|
$139.1
|
|
Long-term
inflows
|
140.3
|
|
|
106.3
|
|
|
34.0
|
|
Long-term
outflows
|
(124.9)
|
|
|
(97.5)
|
|
|
(27.4)
|
|
Long-term net
flows
|
15.4
|
|
|
8.8
|
|
|
6.6
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
—
|
|
|
(5.3)
|
|
Net flows in
institutional money market funds
|
11.7
|
|
|
12.0
|
|
|
(0.3)
|
|
Total net
flows
|
21.8
|
|
|
20.8
|
|
|
1.0
|
|
Market gains and
losses/reinvestment
|
31.3
|
|
|
25.1
|
|
|
6.2
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
2.0
|
|
|
(3.2)
|
|
Foreign currency
translation
|
(7.3)
|
|
|
(7.5)
|
|
|
0.2
|
|
September 30,
2016
|
$820.2
|
|
|
$676.9
|
|
|
$143.3
|
|
|
|
|
|
|
|
Average
AUM
|
$782.0
|
|
|
$648.8
|
|
|
$133.2
|
|
Gross revenue
yield on AUM(a)
|
61.0
|
bps
|
|
70.7
|
bps
|
|
14.6
|
bps
|
Net revenue yield
on AUM(b)
|
43.1
|
bps
|
|
49.0
|
bps
|
|
14.6
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2015
|
$775.6
|
|
|
$514.8
|
|
|
$260.8
|
|
Long-term
inflows
|
140.3
|
|
|
108.2
|
|
|
32.1
|
|
Long-term
outflows
|
(124.9)
|
|
|
(102.6)
|
|
|
(22.3)
|
|
Long-term net
flows
|
15.4
|
|
|
5.6
|
|
|
9.8
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
Net flows in
institutional money market funds
|
11.7
|
|
|
—
|
|
|
11.7
|
|
Total net
flows
|
21.8
|
|
|
0.3
|
|
|
21.5
|
|
Market gains and
losses/reinvestment
|
31.3
|
|
|
24.9
|
|
|
6.4
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
0.4
|
|
|
(1.6)
|
|
Foreign currency
translation
|
(7.3)
|
|
|
(8.3)
|
|
|
1.0
|
|
September 30,
2016
|
$820.2
|
|
|
$532.1
|
|
|
$288.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2015
|
$775.6
|
|
|
$370.9
|
|
|
$187.9
|
|
|
$48.1
|
|
|
$64.6
|
|
|
$104.1
|
|
Long-term
inflows
|
140.3
|
|
|
60.8
|
|
|
38.8
|
|
|
7.8
|
|
|
3.2
|
|
|
29.7
|
|
Long-term
outflows
|
(124.9)
|
|
|
(74.7)
|
|
|
(24.4)
|
|
|
(9.0)
|
|
|
(2.9)
|
|
|
(13.9)
|
|
Long-term net
flows
|
15.4
|
|
|
(13.9)
|
|
|
14.4
|
|
|
(1.2)
|
|
|
0.3
|
|
|
15.8
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
11.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.7
|
|
|
—
|
|
Total net
flows
|
21.8
|
|
|
(19.2)
|
|
|
14.4
|
|
|
(1.2)
|
|
|
12.0
|
|
|
15.8
|
|
Market gains and
losses/reinvestment
|
31.3
|
|
|
18.0
|
|
|
7.3
|
|
|
2.5
|
|
|
0.3
|
|
|
3.2
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
0.4
|
|
|
(1.1)
|
|
|
—
|
|
|
0.4
|
|
|
(0.9)
|
|
Foreign currency
translation
|
(7.3)
|
|
|
(4.8)
|
|
|
(1.5)
|
|
|
(0.5)
|
|
|
(0.1)
|
|
|
(0.4)
|
|
September 30,
2016
|
$820.2
|
|
|
$365.3
|
|
|
$207.0
|
|
|
$48.9
|
|
|
$77.2
|
|
|
$121.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$782.0
|
|
|
$355.3
|
|
|
$194.3
|
|
|
$47.3
|
|
|
$72.6
|
|
|
$112.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
140.3
|
|
|
84.6
|
|
|
2.6
|
|
|
11.5
|
|
|
18.7
|
|
|
22.9
|
|
Long-term
outflows
|
(124.9)
|
|
|
(76.8)
|
|
|
(3.2)
|
|
|
(12.4)
|
|
|
(21.5)
|
|
|
(11.0)
|
|
Long-term net
flows
|
15.4
|
|
|
7.8
|
|
|
(0.6)
|
|
|
(0.9)
|
|
|
(2.8)
|
|
|
11.9
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
11.7
|
|
|
5.6
|
|
|
0.4
|
|
|
3.3
|
|
|
—
|
|
|
2.4
|
|
Total net
flows
|
21.8
|
|
|
8.1
|
|
|
(0.2)
|
|
|
2.4
|
|
|
(2.8)
|
|
|
14.3
|
|
Market gains and
losses/reinvestment
|
31.3
|
|
|
22.1
|
|
|
1.2
|
|
|
5.6
|
|
|
1.5
|
|
|
0.9
|
|
Acquisitions/dispositions, net
|
(1.2)
|
|
|
(3.6)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
Foreign currency
translation
|
(7.3)
|
|
|
(0.1)
|
|
|
1.2
|
|
|
(11.5)
|
|
|
1.4
|
|
|
1.7
|
|
September 30,
2016
|
$820.2
|
|
|
$537.2
|
|
|
$23.9
|
|
|
$100.7
|
|
|
$75.5
|
|
|
$82.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Quarterly Assets
Under Management - Passive(e)
|
|
(in
billions)
|
Q3-16
|
|
Q2-16
|
|
%
Change
|
|
Q3-15
|
Beginning
Assets
|
$133.5
|
|
|
$131.1
|
|
|
1.8
|
%
|
|
$141.6
|
|
Long-term
inflows
|
11.8
|
|
|
12.3
|
|
|
(4.1)
|
%
|
|
6.8
|
|
Long-term
outflows
|
(7.9)
|
|
|
(7.8)
|
|
|
1.3
|
%
|
|
(9.1)
|
|
Long-term net
flows
|
3.9
|
|
|
4.5
|
|
|
(13.3)
|
%
|
|
(2.3)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
(3.8)
|
|
|
N/A
|
|
|
(0.9)
|
|
Net flows in
institutional money market funds
|
(0.1)
|
|
|
0.1
|
|
|
N/A
|
|
|
0.1
|
|
Total net
flows
|
4.9
|
|
|
0.8
|
|
|
512.5
|
%
|
|
(3.1)
|
|
Market gains and
losses/reinvestment
|
4.9
|
|
|
1.5
|
|
|
226.7
|
%
|
|
(6.8)
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
Foreign currency
translation
|
—
|
|
|
0.1
|
|
|
(100.0)
|
%
|
|
—
|
|
Ending
Assets
|
$143.3
|
|
|
$133.5
|
|
|
7.3
|
%
|
|
$131.7
|
|
|
|
|
|
|
|
|
|
Average long-term
AUM
|
$102.2
|
|
|
$95.1
|
|
|
7.5
|
%
|
|
$99.6
|
|
Average
AUM
|
$141.0
|
|
|
$131.7
|
|
|
7.1
|
%
|
|
$138.4
|
|
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
15.3
|
bps
|
|
14.6
|
bps
|
|
|
|
14.9
|
bps
|
Gross revenue
yield on AUM before performance fees(a)
|
15.3
|
bps
|
|
14.6
|
bps
|
|
|
|
14.9
|
bps
|
Net revenue yield
on AUM(b)
|
15.3
|
bps
|
|
14.6
|
bps
|
|
|
|
14.9
|
bps
|
Net revenue yield
on AUM before performance fees(b)
|
15.3
|
bps
|
|
14.6
|
bps
|
|
|
|
14.9
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
June 30,
2016
|
$133.5
|
|
|
$117.0
|
|
|
$16.5
|
|
Long-term
inflows
|
11.8
|
|
|
10.9
|
|
|
0.9
|
|
Long-term
outflows
|
(7.9)
|
|
|
(7.7)
|
|
|
(0.2)
|
|
Long-term net
flows
|
3.9
|
|
|
3.2
|
|
|
0.7
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Total net
flows
|
4.9
|
|
|
4.3
|
|
|
0.6
|
|
Market gains and
losses/reinvestment
|
4.9
|
|
|
4.9
|
|
|
—
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
September 30,
2016
|
$143.3
|
|
|
$126.2
|
|
|
$17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By asset class:
(in billions)
|
Total
|
|
Equity
|
|
Fixed
Income
|
|
Balanced
|
|
Money
Market
|
|
Alternatives(c)
|
June 30,
2016
|
$133.5
|
|
|
$84.9
|
|
|
$38.9
|
|
|
$—
|
|
|
$0.2
|
|
|
$9.5
|
|
Long-term
inflows
|
11.8
|
|
|
6.9
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Long-term
outflows
|
(7.9)
|
|
|
(6.2)
|
|
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Long-term net
flows
|
3.9
|
|
|
0.7
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Total net
flows
|
4.9
|
|
|
1.8
|
|
|
3.4
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.2)
|
|
Market gains and
losses/reinvestment
|
4.9
|
|
|
4.9
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30,
2016
|
$143.3
|
|
|
$91.6
|
|
|
$42.4
|
|
|
$—
|
|
|
$0.1
|
|
|
$9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$141.0
|
|
|
$90.8
|
|
|
$40.7
|
|
|
$—
|
|
|
$0.1
|
|
|
$9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
June 30,
2016
|
$133.5
|
|
|
$128.9
|
|
|
$0.5
|
|
|
$—
|
|
|
$1.7
|
|
|
$2.4
|
|
Long-term
inflows
|
11.8
|
|
|
11.6
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Long-term
outflows
|
(7.9)
|
|
|
(7.7)
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Long-term net
flows
|
3.9
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
Invesco PowerShares QQQ fund
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Total net
flows
|
4.9
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Market gains and
losses/reinvestment
|
4.9
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30,
2016
|
$143.3
|
|
|
$138.6
|
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the footnotes
immediately following these tables.
|
Invesco
Ltd.
Year-to-date
Assets Under Management - Passive(e)
|
|
(in
billions)
|
September 30,
2016
|
|
September 30,
2015
|
|
%
Change
|
Beginning
Assets
|
$139.1
|
|
|
$141.4
|
|
|
(1.6)
|
%
|
Long-term
inflows
|
34.0
|
|
|
25.7
|
|
|
32.3
|
%
|
Long-term
outflows
|
(27.4)
|
|
|
(24.0)
|
|
|
14.2
|
%
|
Long-term net
flows
|
6.6
|
|
|
1.7
|
|
|
288.2
|
%
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(3.8)
|
|
|
39.5
|
%
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
0.1
|
|
|
N/A
|
|
Total net
flows
|
1.0
|
|
|
(2.0)
|
|
|
N/A
|
|
Market gains and
losses/reinvestment
|
6.2
|
|
|
(7.0)
|
|
|
N/A
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
|
(0.7)
|
|
|
357.1
|
%
|
Foreign currency
translation
|
0.2
|
|
|
—
|
|
|
N/A
|
|
Ending
Assets
|
$143.3
|
|
|
$131.7
|
|
|
8.8
|
%
|
|
|
|
|
|
|
Average long-term
AUM
|
$95.6
|
|
|
$102.6
|
|
|
(6.8)%
|
|
Average
AUM
|
$133.2
|
|
|
$141.7
|
|
|
(6.0)%
|
|
|
|
|
|
|
|
Gross revenue
yield on AUM(a)
|
14.6
|
bps
|
|
14.5
|
bps
|
|
|
Gross revenue
yield on AUM before performance fees(a)
|
14.6
|
bps
|
|
14.5
|
bps
|
|
|
Net revenue yield
on AUM(b)
|
14.6
|
bps
|
|
14.5
|
bps
|
|
|
Net revenue yield
on AUM before performance fees(b)
|
14.6
|
bps
|
|
14.5
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By channel: (in
billions)
|
Total
|
|
Retail
|
|
Institutional
|
December 31,
2015
|
$139.1
|
|
|
$118.7
|
|
|
$20.4
|
|
Long-term
inflows
|
34.0
|
|
|
32.1
|
|
|
1.9
|
|
Long-term
outflows
|
(27.4)
|
|
|
(25.6)
|
|
|
(1.8)
|
|
Long-term net
flows
|
6.6
|
|
|
6.5
|
|
|
0.1
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
Total net
flows
|
1.0
|
|
|
1.2
|
|
|
(0.2)
|
|
Market gains and
losses/reinvestment
|
6.2
|
|
|
6.3
|
|
|
(0.1)
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
Foreign currency
translation
|
0.2
|
|
|
—
|
|
|
0.2
|
|
September 30,
2016
|
$143.3
|
|
|
$126.2
|
|
|
$17.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
34.0
|
|
|
21.7
|
|
|
9.7
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
Long-term
outflows
|
(27.4)
|
|
|
(21.0)
|
|
|
(4.0)
|
|
|
—
|
|
|
—
|
|
|
(2.4)
|
|
Long-term net
flows
|
6.6
|
|
|
0.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
Total net
flows
|
1.0
|
|
|
(4.6)
|
|
|
5.7
|
|
|
—
|
|
|
(0.3)
|
|
|
0.2
|
|
Market gains and
losses/reinvestment
|
6.2
|
|
|
5.2
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Foreign currency
translation
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
September 30,
2016
|
$143.3
|
|
|
$91.6
|
|
|
$42.4
|
|
|
$—
|
|
|
$0.1
|
|
|
$9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
AUM
|
$133.2
|
|
|
$86.3
|
|
|
$37.9
|
|
|
$—
|
|
|
$0.1
|
|
|
$8.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2015
|
$139.1
|
|
|
134.4
|
|
|
0.4
|
|
|
—
|
|
|
1.9
|
|
|
2.4
|
|
Long-term
inflows
|
34.0
|
|
|
33.4
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Long-term
outflows
|
(27.4)
|
|
|
(26.7)
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
Long-term net
flows
|
6.6
|
|
|
6.7
|
|
|
0.1
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
Net flows in
Invesco PowerShares QQQ fund
|
(5.3)
|
|
|
(5.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in
institutional money market funds
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3)
|
|
Total net
flows
|
1.0
|
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
(0.2)
|
|
|
(0.3)
|
|
Market gains and
losses/reinvestment
|
6.2
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Acquisitions/dispositions, net
|
(3.2)
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency
translation
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
September 30,
2016
|
$143.3
|
|
|
$138.6
|
|
|
$0.5
|
|
|
$—
|
|
|
$1.9
|
|
|
$2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 third quarter for our JVs
in China was $10.4 billion (second quarter 2016: $8.6 billion;
third quarter 2015: $6.0 billion). For year to date, our share of
the average AUM for our JVs in China in the nine months ended
September 30, 2016 was $8.9 billion (nine months ended September
30, 2015: $6.0 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.
|
(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 8 and 9 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)
|
Long-term AUM
excludes institutional money market AUM and PowerShares QQQ AUM.
Ending AUM as of September 30, 2016 includes $69.2 billion in
institutional money market AUM and $39.5 billion in PowerShares QQQ
AUM. Ending retail money market AUM as of September 30, 2016,
included in long-term AUM, were $8.0 billion. Ending AUM as of June
30, 2016 included $63.1 billion in institutional money market AUM
and $34.8 billion in PowerShares QQQ AUM. Ending AUM as of
September 30, 2015 included $61.3 billion in institutional money
market AUM and $37.2 billion in PowerShares QQQ AUM.
|
(e)
|
Passive AUM includes
ETFs, UITs, non-fee earning leverage and other passive mandates.
Active AUM are total AUM less Passive AUM.
|
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
|
5
|
%
|
—
|
%
|
4
|
%
|
5
|
%
|
—
|
%
|
5
|
%
|
|
U.S.
Growth
|
54
|
%
|
37
|
%
|
37
|
%
|
82
|
%
|
96
|
%
|
36
|
%
|
|
U.S. Value
|
—
|
%
|
36
|
%
|
37
|
%
|
22
|
%
|
54
|
%
|
86
|
%
|
|
Sector
|
11
|
%
|
2
|
%
|
56
|
%
|
11
|
%
|
7
|
%
|
16
|
%
|
|
U.K.
|
3
|
%
|
93
|
%
|
100
|
%
|
3
|
%
|
92
|
%
|
100
|
%
|
|
Canadian
|
13
|
%
|
21
|
%
|
48
|
%
|
13
|
%
|
21
|
%
|
46
|
%
|
|
Asian
|
82
|
%
|
88
|
%
|
91
|
%
|
76
|
%
|
69
|
%
|
76
|
%
|
|
European
|
48
|
%
|
78
|
%
|
100
|
%
|
54
|
%
|
74
|
%
|
77
|
%
|
|
Global
|
43
|
%
|
53
|
%
|
56
|
%
|
58
|
%
|
66
|
%
|
80
|
%
|
|
Global Ex U.S. and
Emerging Markets
|
21
|
%
|
98
|
%
|
99
|
%
|
93
|
%
|
89
|
%
|
98
|
%
|
Fixed
Income
|
|
|
|
|
|
|
|
|
Money
Market
|
98
|
%
|
64
|
%
|
64
|
%
|
98
|
%
|
98
|
%
|
98
|
%
|
|
U.S. Fixed
Income
|
90
|
%
|
90
|
%
|
95
|
%
|
82
|
%
|
86
|
%
|
85
|
%
|
|
Global Fixed
Income
|
44
|
%
|
45
|
%
|
94
|
%
|
15
|
%
|
15
|
%
|
89
|
%
|
|
Stable
Value
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
|
Alternatives
|
62
|
%
|
48
|
%
|
53
|
%
|
64
|
%
|
11
|
%
|
30
|
%
|
|
Balanced
|
56
|
%
|
56
|
%
|
44
|
%
|
95
|
%
|
89
|
%
|
92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
AUM measured in the
one-, three-, and five-year peer group rankings represents 57%,
55%, and 55% of total Invesco AUM, respectively, and AUM measured
versus benchmark on a one-, three-, and five-year basis represents
71%, 68%, and 65% of total Invesco AUM, respectively, as of
9/30/2016. 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.
|
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SOURCE Invesco Ltd.