Invesco Ltd · NYSE:IVZ
Invesco — Q1 2024 Earnings Presentation
21 slides from Invesco's earnings presentation, Apr 23, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results Andrew Schlossberg President and Chief Executive Officer Allison Dukes Chief Financial Officer April 23, 2024
Slide 2: Forward-looking statements and Important Information
Forward-looking statements and Important Information This presentation, and comments made in the associated obligation to update the information in any public disclosure if any conference call today, may include “forward-looking statements.” forward-looking statement later turns out to be inaccurate
Slide 3: First quarter 2024 business highlights
First quarter 2024 business highlights Investment Capabilities Ending Net LT Investment Capability* Highlights AUM Flows Another strong quarter with continued market share gains. QQQM was our top flowing fund with $2.8 ETFs and Index $398.3 $11.2 billion in net inflows. BulletShares gained an aggreg
Slide 4: Investment Performance
Investment Performance Fundamental Equities Fundamental Fixed Income 20% 22% 22% 44% 92% 28% 28% 68% 53% 57% 55% 55% 46% 40% 36% 28% 24% 24% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr Multi-Asset Overall 20% 23% 27% 10% 77% 71% 75% 66% 64% 2% 38% 44% 49% 46% 38% 39% 27% 10% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr AUM abov
Slide 5: First quarter 2024 financial highlights
First quarter 2024 financial highlights • Executed multi-quarter plan to simplify and streamline the organization to better position the firm for greater scale and improved profitability ‒ Incurred $5 million of organizational change expenses in Q1’24; achieved an incremental $4 million of net savin
Slide 6: Market volatility and shifting asset mix lower concentration of active equity
Market volatility and shifting asset mix have resulted in a lower concentration of active equity capabilities; average yield declines should moderate moving forward Average AUM, $B | Net Revenue Yields* Net Revenue Yields $1,613 | 26.1 bps $1,516 | 27.1 bps 7% APAC Managed 1 35 – 45 bps • Secular sh
Slide 7: Revenues and expenses
Revenues and expenses (in millions) Net Revenues Adjusted Operating Expenses -2.1% 1.1% $43 ($5) $11 $757 ($1) ($37) Q1’23 vs Q1’24 $1,076 ($22) $749 ($9) $7 $1,053 ($1) Includes $7 million Includes $5 million of pertaining to Alpha org. change expenses $23 million decrease $8 million increase Q1 20
Slide 8: Organizational changes – annualized net savings
Organizational changes – annualized net savings • Achieved $4 million of incremental net savings in Q1 or $16 million in annualized savings • Achieved $60 million in total annualized net savings, exceeding our $50 million target • Incremental $5 million of organizational change expenses realized in
Slide 9: Capital management
Capital management (in millions, except ratio information) Capital Returned to Shareholders Leverage Ratio** $301 $150 3.41x 3.33x 3.50x 3.48x 3.36x $145 $149 $149 $149 $59 $59 $59 $59 $59 $92 $90 $90 $90 0.83x 0.66x 0.69x 0.69x $86 0.54x Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 C
Slide 10: Appendix
Appendix 4 Invesco
Slide 11: We are diversified as a firm
We are diversified as a firm By Client Domicile By Channel By Investment Capability 4% 6% 24% 8% 14% 10% 72% 67% 33% 14% 16% 16% 16% 1-Yr 1-Yr 1-Yr (billions) Change (billions) Change (billions) Change Americas $1,199.8 13.6 % Retail $1,116.9 20.8 % ETFs & IS $398.3 32.1 % Asia Pac $237.6 3.9 % Inst
Slide 12: Assets under management & long-term flows
Assets under management & long-term flows 1 Q1'23 Q4'23 Q1'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM Total Firm AUM by Investment Approach AUM by Channel 68% 62% 60% 32% 38% 40% 62% 66% 67% 38% 34% 33% $1,585 $1,663 $1,005 $985 $996 $1,117 $1,483 $1,042 $925 $667 $600 $478
Slide 13: Assets under management & long-term flows (continued)
Assets under management & long-term flows (continued) 1 Q1'23 Q4'23 Q1'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM by Geography AUM by Asset Class 71% 72% 72% 15% 15% 14% 13% 14% 14% 13% 11% 11% 5% 4% 4% 47% 52% 54% 22% 21% 20% 14% 12% 12% $1,134 $1,200 $902 $1,056 $824 $696
Slide 14: Investment Capability Historical Performance
Investment Capability Historical Performance Investment Capabilities Investment Capability* Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1’24 Net LT Flows $19.3 $6.2 ($0.2) $5.4 $5.2 $4.7 $12.6 $10.8 $11.2 ETFs & IS Ending AUM $313.3 $280.1 $261.8 $285.6 $301.6 $317.6 $317.9 $362.1 $398.3 Averag
Slide 15: Operating Expenses Reclassification
Operating Expenses Reclassification Non-GAAP Operating Expenses – Current Classification (in millions) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1’24 Employee Compensation $495.2 $468.1 $466.7 $474.4 $486.0 $500.1 $513.9 $470.8 $476.8 Marketing $23.4 $29.3 $24.6 $26.1 $21.7 $25.4 $21.1 $21.1
Slide 16: US GAAP and Non-GAAP operating results Q1-24 vs. Q4-23
US GAAP and Non-GAAP operating results Q1-24 vs. Q4-23 US GAAP Basis Non-GAAP Basis (in millions) Q1-24 Q4-23 % Change (1) (in millions) Q1-24 Q4-23 % Change (1) Investment management fees $1,048.7 $1,003.3 4.5% Investment management fees $1,160.1 $1,126.4 3.0% Service and distribution fees 377.0 34
Slide 17: Reconciliation of US GAAP results to Non-GAAP results, Q1 2024
Reconciliation of US GAAP results to Non-GAAP results Three months ended March 31, 2024 Please refer to pages 7-10 in the 1Q 2024 earnings press release for a description of the adjustments 3rd party distribution, service Market appreciation / Consolidation of and advisory Amortization of depreciati
Slide 18: Reconciliation of US GAAP results to Non-GAAP results, Q4 2023
Reconciliation of US GAAP results to Non-GAAP results Three months ended December 31, 2023 Please refer to pages 9-12 in the 4Q 2023 earnings press release for a description of the adjustments 3rd party distribution, Amortization and Market appreciation / Consolidation of service and advisory impair
Slide 19: Reconciliation of US GAAP results to Non-GAAP results
Reconciliation of US GAAP results to Non-GAAP results (in millions) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3’23 Q4’23 Q1’24 Operating revenues $1,629.4 $1,530.4 $1,445.7 $1,443.4 $1,418.2 $1,442.8 $1,442.0 $1,413.4 $1,475.3 Non-GAAP adjustments (377.0) (356.5) (335.1) (335.3) (342.3) (352.1) (343.8) (
Slide 20: Footnote disclosures
Footnote disclosures Footnotes for Slide 3 and Slide 14, First quarter 2024 highlights and Investment Capability Historical Performance Non-GAAP financial measures – For the reconciliations from US GAAP to non-GAAP measures, see the Appendix to this presentation and the non-GAAP Information and Reco
Slide 21: Footnote disclosures (continued)
Footnote disclosures (continued) Leverage ratio including preferred stock is adjusted debt, as defined in the credit agreement, plus the preferred stock balance of $4,010.5 million (for all periods presented), divided by covenant adjusted EBITDA The calculation of adjusted debt is defined in our cre