Invesco Ltd · NYSE:IVZ
Invesco — Q2 2007 Earnings Presentation
21 slides from Invesco's earnings presentation, Aug 2, 2007
Slide 1: 2007 Second Quarter Results
2007 Second Quarter Results Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer H. Bruce Bond, PowerShares Capital Management Wilbur L. Ross, WL Ross & Co. August 2, 2007 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include statements that constitute “forward-looking statements” under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and
Slide 3: Discussion Topics
Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 3
Slide 4: Summary of Second Quarter 2007 Results
Summary of Second Quarter 2007 Results June 30 AUM of $491.6 billion, up $20.4 billion since the end of 1Q07 AUM 2Q07 average AUM was $484.3 billion, up $17.4 billion since 1Q07 Long-term net flows were positive during the quarter at $0.7 billion Quarterly Flows Long-term gross sales continu
Slide 5: Quarterly Flows
Quarterly Flows Continuing trend of higher gross sales versus 2006 levels Gross redemptions in 2Q07 improved despite $2.4 billion in stable value outflows Institutional money market assets increased $1.8 billion to $61.6 billion. Quarterly Long-Term Flows Gross sales Growth in Institutional Mo
Slide 6: Distribution Channels – Quarterly Flows
Distribution Channels – Quarterly Flows Retail net flows at the highest level since 2nd quarter of 2000 Institutional net flows were down, primarily due to stable value and a single large account loss Private Wealth flows were flat on improvements in both gross sales and gross redemptions Reta
Slide 7: Focusing On Investment Excellence
Focusing On Investment Excellence % of AUM in Top Half of Peer Group Retail Results 1yr 3yr 5yr Jun-07 Mar-07 Jun-06 Jun-07 Mar-07 Jun-06 Jun-07 Mar-07 Jun-06 US (Lipper)* 62% 61% 69% 67% 66% 60% 70% 70% 44% US (Morningstar) 66% 60% 69% 72% 74% 67% 80% 74% 60% Canada 79% 96% 6% 34% 53% 24% 32% 82% 8
Slide 8: PowerShares’ ETFs
PowerShares’ ETFs ETFs are one of the fastest growing financial products with $700bn AUM globally 06/30/07 AUM $11.7b Industry factors are driving strong demand for future growth Jun YTD Net Flows $2.3b 2Q07 Net Flows $1.3b ETFs thrive in advice channel environment due to flexibility, transpar
Slide 9: Private Equity
Private Equity In the process of creating a premier private capital capability Ongoing product training and support between WLR team and Worldwide Institutional Sales team in preparation for launch of new products in 2007 Significant collaboration between WLR and the Asia Pacific business to d
Slide 10: Providing Alpha in Alternatives
Providing Alpha in Alternatives Alternative Capabilities AUM % Real Estate: $25.7 5.2% X Direct X REITs Total INVESCO AUM ($491.6b) Private Equity: $5.1 1.0% X Distressed Money Fixed Market Income X Fund of Private Equity Funds Stable 13.2% 8.7% Private Equity ETF Balanced Value X 8.1% 9.4% Absolute
Slide 11: Listing Update
Listing Update Rationale for Review Shareholder base has exceeded 50% US ownership – loss of Foreign Private Issuer status Two primary regulators – FSA and SEC Two accounting standards – IFRS and US GAAP Next Steps Evaluating whether a change in primary listing is merited / beneficial Eval
Slide 12: Discussion Topics
Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 12
Slide 13: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 2Q07 1Q07 % Change 4Q06 3Q06 2Q06 Beginning Assets $471.2 $462.6 1.9% $440.6 $413.8 $410.9 Inflows 27.5 30.4 (9.5)% 22.9 16.3 23.5 Outflows (26.8) (29.7) (9.8)% (27.4) (17.0) (21.2) Net flows 0.7 0.7 n/a (4.5) (0.7) 2.3 Net flows in Money Market Funds
Slide 14: Operating Results - Quarterly
Operating Results - Quarterly 2Q07 1Q07 % Change* 4Q06 3Q06 2Q06 Management Fees 810 737 9.9% 722 642 626 Service and Distribution 148 143 3.4% 136 130 133 Other 28 24 16.9% 21 19 29 Total Revenues 987 905 9.1% 879 791 788 Third-party distribution, service and advisory fees (264) (234) 12.9% (224) (
Slide 15: Questions & Answers
Questions & Answers Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer H. Bruce Bond, PowerShares Capital Management Wilbur L. Ross, WL Ross & Co. 15
Slide 16: Discussion Topics
Discussion Topics 1 Our Business Today 2 Financial Results 3 Questions and Answers 4 Appendix 16
Slide 17: We Are Diversified As A Firm
We Are Diversified As A Firm Delivering a diverse set of solutions to meet a broad set of global investment needs By Client Domicile By Channel By Asset Class PWM Balanced Canada 4% 8% 10% Money Market 13% U.K. Retail Fixed U.S. 17% Equity 52% Institutional Income 60% 50% 9% 44% Europe Stable 7% Val
Slide 18: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM December 31, 2006 $462.6 $234.0 $211.8 $16.8 Inflows 30.4 21.4 7.8 1.2 Outflows (29.7) (21.4) (6.6) (1.7) Net flows 0.7 -- 1.2 (0.5) Net flows in Money Market (0.8) (0.1) (0.7) -- Funds and Other Market Gains/Reinvestme
Slide 19: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class* Fixed Money Stable ($ billions) Total Equity Income Balanced Market Value Alternative December 31, 2006 $462.6 $217.6 $42.9 $38.2 $64.1 $46.9 $52.9 Inflows 30.4 16.9 4.0 2.3 0.4 1.8 5.0 Outflows (29.7) (15.0) (5.4) (2.3) (0.5) (1.8) (4.7) Net flows 0.7 1.9 (
Slide 20: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile ($ billions) Total U.S. Canada U.K. Europe Asia December 31, 2006 (a) $462.6 $280.5 $43.2 $74.6 $38.1 $26.2 Inflows 30.4 12.5 2.3 5.0 6.2 4.4 Outflows (29.7) (12.2) (1.6) (2.0) (9.7) (4.2) Net flows 0.7 0.3 0.7 3.0 (3.5) 0.2 Net flows in Money Market Fund
Slide 21: Additional Income and Expense Information
Additional Income and Expense Information ($ millions) 2Q07 1Q07 2Q06 Operating items: Management revenues: - Performance fees 34.4 18.8 12.6 General and administration: - WL Ross intangible asset amortization (15.0) -- -- 21