Invesco Ltd · NYSE:IVZ
Invesco — Q1 2009 Earnings Presentation
25 slides from Invesco's earnings presentation, Apr 23, 2009
Slide 1: 2009 First Quarter Results
Invesco 2009 First Quarter Results April 23, 2009 Martin L. Flanagan President & Chief Executive Officer Loren M. Starr Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, 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 expendit
Slide 3: Discussion Topics
Discussion Topics 1. Business Overview 2. Financial Results 3. Questions and Answers 4. Appendix 3
Slide 4: First Quarter Overview
First Quarter Overview Continued focus on disciplined management to improve our competitive position in volatile markets: Commitment to investment excellence yielding strong, long-term investment performance Improved long-term and total flows Continued emphasis on operating efficiently and eff
Slide 5: Summary of First Quarter 2009 Results
Summary of First Quarter 2009 Results March 31, 2009 AUM of $348.2bn versus $357.2bn as of AUM December 31, 2008 1Q09 average AUM was $351.0bn, down $5.8bn since 4Q08 Net long-term flows were positive $0.7bn for the quarter Quarterly Flows Institutional money market flows were positive $8.6b
Slide 6: Quarterly Flows – Continuing Positive Trend
Quarterly Flows – Continuing Positive Trend Gross redemptions improved 31.7% Net long-term flows were positive Institutional money market AUM increased by $8.6bn to $87.8bn Quarterly Long-Term Flows ($ billions) Growth in Institutional Money Market ($ billions) Gross sales Ending AUM Gross red
Slide 7: Distribution Channels – Quarterly LT Flows
Distribution Channels – Quarterly LT Flows Continued improvement in redemptions across the retail and institutional channels Retail net flows benefited from strengthening Invesco Perpetual and Invesco PowerShares flows Institutional net flow improvement driven by alternatives Retail quarterly
Slide 8: Investment Performance – Overview
Investment Performance – Overview Aggregate Performance Analysis – Asset Weighted Strong overall peer group performance (asset-weighted) – 71%, 69%, and 80% of assets are in the top-half of peer groups for the 1, 3, and 5-year time periods as of March 31, 2009. % Assets in Top Half of Peer Group* 1-
Slide 9: Investment Performance Highlights
Investment Performance Highlights Morningstar ratings near their highest level since 10/00 Invesco Flagships – AIM Charter is top decile over 1, 3 and 5 years and Aim AIM International Growth is top quintile for 1, 3 and 5 years Over 70% of AUM is in the top Lipper half for 1, 3 and 5 years In
Slide 10: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 10
Slide 11: Assets Under Management – 1Q09 vs. 4Q08
Assets Under Management – 1Q09 vs. 4Q08 ($ billions) 1Q09 4Q08 % Change Beginning Assets $357.2 $409.6 (12.8)% Long-Term Inflows 14.3 15.5 (7.7)% Long-Term Outflows (13.6) (19.9) (31.7)% Long-Term Net flows 0.7 (4.4) N/A Net flows in Money Market Funds 8.6 2.4 N/A Market Gains and Losses/Reinvestmen
Slide 12: Operating Results – 1Q09 vs. 4Q08
Operating Results – 1Q09 vs. 4Q08 ($ millions) 1Q09 4Q08 % Change* Investment Management Fees 437 479 (8.8)% Performance Fees 11 24 (54.2)% Service and Distribution Fees 89 101 (12.2)% Other 12 31 (60.3)% Total Operating Revenues 549 634 (13.5)% Employee Compensation 236 236 (0.1)% Third-Party Distr
Slide 13: Net Revenue Yield Change
Net Revenue Yield Change 1Q09 4Q08 Impact (bps) Net revenue yield* 46.7bps 54.0 bps Performance fees $11mn $24mn (1.5) Other revenues $12mn $31mn (2.1) Daycount 90 days 92 days (0.7) Mix shift (3.0) Other Other Net Revenue Yield 40.2% 40.5% Equity: 79-80bps Money Market: 11-12bps Equity Money Equity
Slide 14: Questions & Answers
Questions & Answers 2009 First Quarter Results April 23, 2009
Slide 15: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 15
Slide 16: Invesco's solutions are delivered by specialized investment teams around the globe
Invesco’s solutions are delivered by specialized investment teams around the globe Invesco Aim Investment focus: Invesco Global Strategies U.S., international and global equities Investment focus: AUM: $34.6 billion Global Equity (Global, non-U.S., and Invesco Invesco Trimark Invesco Private Invesco
Slide 17: We Are Diversified As A Firm
We Are Diversified As A Firm Delivering a diverse set of solutions to meet a broad set of global investment needs By Client Domicile By Channel By Asset Class Money Market Balanced 26.6% 8.9% Canada 6.2% Retail U.S. 39.2% 66.0% U.K. Fixed 15.3% Income Institutional Equity 17.8% 57.0% 33.2% Europe Pr
Slide 18: Focusing on Investment Excellence
Focusing on Investment Excellence By Investment Objective* % of AUM 1st quartile above 2nd quartile Equities benchmark US Core US Growth US Value Sector 100% 95% 95% 95% 71% 65% 87% 78% 85% 52% 48% 31% 46% 17% 29% 40% 25% 29% 25% 25% 31% 3% 26% 20% 18% 13% 21% 12% 3% 13% 16% 15% 0% 10% 6% 3% 1-yr 3-
Slide 19: Focusing on Investment Excellence
Focusing on Investment Excellence By Investment Objective* % of AUM 1st quartile above Equities Balanced benchmark 2nd quartile Global Ex US and Global Emerging Markets Balanced 100% 96% 96% 96% 83% 61% 72% 71% 90% 59% 5% 58% 53% 15% 39% 53% 5% 8% 37% 17% 27% 31% 15% 17% 17% 8% 0% 5% 4% 1-yr 3-yr 5-
Slide 20: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 1Q09 4Q08 % Change 3Q08 2Q08 1Q08 Beginning Assets $357.2 $409.6 (12.8)% $461.3 $470.3 $500.1 Long-Term Inflows 14.3 15.5 (7.7)% 16.8 19.4 20.8 Long-Term Outflows (13.6) (19.9) (31.7)% (19.8) (25.6) (29.2) Long-Term Net flows 0.7 (4.4) N/A (3.0) (6.2)
Slide 21: Operating Results – Quarterly
Operating Results – Quarterly ($ millions) 1Q09 4Q08 % Change* 3Q08 2Q08 1Q08 4Q07 3Q07 2Q07 Investment Management Fees 437 479 (8.8)% 665 737 738 816 792 766 Performance Fees 11 24 (54.2)% 18 22 11 13 4 34 Service and Distribution Fees 89 101 (12.2)% 129 143 138 151 151 148 Other 12 31 (60.3)% 15 3
Slide 22: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM September 30, 2008* $409.6. $192.6 $201.8 $15.2 Long-Term Inflows 15.5 9.4 4.8 1.3 Long-Term Outflows (19.9) (12.1) (6.6) (1.2) Long-Term Net flows (4.4) (2.7) (1.8) 0.1 Net flows in Money Market Funds 2.4 -- 2.4 -- Mar
Slide 23: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative September 30, 2008* $409.6 $169.1 $61.7 $40.5 $81.8 $56.5 Long-Term Inflows 15.5 7.2 3.4 2.0 0.9 2.0 Long-Term Outflows (19.9) (9.8) (3.2) (2.7) (1.0) (3.2) Long-Term Net flows (4.4) (2.
Slide 24: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia September 30, 2008* $409.6 $255.4 $33.1 $69.4 $25.7 $26.0 Inflows 15.5 8.5 0.8 2.9 2.4 0.9 Outflows (19.9) (10.8) (1.7) (2.1) (3.1) (2.2) Long-Term Net flows (4.4) (2.3) (0.9) 0.8 (0.7) (1.3) Net
Slide 25: Schedule of Non-GAAP Information
Schedule of Non-GAAP Information For the three months ended March 31, 2009 Dec 31, 2008 March 31, 2008 Operating revenues, GAAP basis $548.6 $634.4 $910.4 Third-party distribution, service and advisory expenses (148.2) (162.6) (247.1) Proportional share of net revenues from joint venture arrangement