Invesco Ltd · NYSE:IVZ
Invesco — Q4 2011 Earnings Presentation
46 slides from Invesco's earnings presentation, Jan 26, 2012
Slide 1: Invesco fourth-quarter 2011 results
Invesco fourth-quarter 2011 results Martin L. Flanagan President and Chief Executive Officer Loren M. Starr Chief Financial Officer January 26, 2012
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 Fourth-quarter overview Investment performance Financial results Questions Appendix 2
Slide 4: Fourth-quarter overview
Fourth-quarter overview Continued positive momentum in a volatile market environment Maintained strong, long-term investment performance across the enterprise Continued positive trend of net long-term inflows across all channels Reduced long-term debt by $105 million during the quarter Repur
Slide 5: Key achievements against our strategic priorities during 2011
Key achievements against our strategic priorities during 2011 Achieve strong Continued to deliver strong, long-term investment investment performance performance for our clients Strong investment performance drove meaningful organic growth across the firm Net inflows of $24.5 billion Deliver o
Slide 6: Summary of fourth-quarter 2011 results
Summary of fourth-quarter 2011 results December 31, 2011 AUM of $625.3 billion versus $598.4 billion at September 30, 2011 Assets under Average AUM was $621.7 billion versus $632.7 billion for the third management quarter Total net inflows of $6.0 billion Net long-term inflows of $5.6 billio
Slide 7: Discussion topics
Discussion topics Fourth-quarter overview Investment performance Financial results Questions Appendix 6
Slide 8: Investment performance – overview
This image cannot currently be display ed. Investment performance – overview Aggregate performance analysis – asset weighted Percent of actively managed assets in top half of peer group* 1-Year 3-Year 5-Year 71% 56% 80% 20% 29% 44% % Assets top half of peer group % Assets bottom half of peer group *
Slide 9: Quarterly flows – total flows
Quarterly flows – total flows Continued positive momentum in long-term flows during the fourth quarter – the sixth consecutive quarter of positive long-term flows Quarterly long-term flows ($ billions) Total AUM AUM ex-ETF/UIT/Passive ETF/UIT/Passive AUM 1Q10 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1
Slide 10: Quarterly flows – by channel
Quarterly flows – by channel Continued net inflows across all channels Quarterly long-term flows ($ billions) Retail(a) Institutional(b) Private Wealth Management(c) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Gross sale
Slide 11: US Retail redemption rates continued to outperform the industry
US Retail redemption rates continued to outperform the industry Percentage above the bars is change in gross sales from prior quarter ($, billions) +36% Net sales +9% +29% (27%) (15%) +25% IVZ Industry Invesco US Retail excludes PowerShares QQQ. Industry redemption rates includes proprietary, non-pr
Slide 12: Discussion topics
Discussion topics Fourth-quarter overview Investment performance Financial results Questions Appendix 11
Slide 13: Total assets under management – 4Q11 vs. 3Q11
Total assets under management – 4Q11 vs. 3Q11 ($ billions) 4Q-11 3Q-11 % Change Beginning Assets $598.4 $653.7 (8.5)% Long-Term Inflows 41.1 45.9 (10.5)% Long-Term Outflows (35.5) (42.6) (16.7)% Long-Term Net flows 5.6 3.3 69.7% Net flows in Inst. Money Market Funds 0.4 (1.1) N/A Market Gains and Lo
Slide 14: Non-GAAP operating results – 4Q11 vs. 3Q11
Non-GAAP operating results – 4Q11 vs. 3Q11 ($ millions) 4Q-11 3Q-11 % Change Adjusted Revenues Investment Management Fees 771 804 (4.1)% Service and Distribution Fees 181 189 (4.2)% Performance Fees 24 3 700.0% Other 45 27 68.2% Third-Party Distribution, Service and Advisory Expenses (304) (317) (4.
Slide 15: Fourth-quarter overview
Fourth-quarter overview Continued positive momentum in a volatile market environment Maintained strong, long-term investment performance across the enterprise Continued positive trend of net long-term inflows across all channels Reduced long-term debt $105 million during the quarter Repurcha
Slide 16: Discussion topics
Discussion topics Fourth-quarter overview Investment performance Financial results Questions Appendix 15
Slide 17: Discussion topics
Discussion topics Fourth-quarter overview Investment performance Financial results Questions Appendix 16
Slide 18: Commitment to investment excellence
Commitment to investment excellence Source: Invesco. All data as of December 31, 2011. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products and services available on all platforms. All entities listed are wholly owned, indirect su
Slide 19: Investment performance (5-year)
This image cannot currently be display ed. Investment performance (5-year) % assets top half of peer group % assets bottom half of peer group By investment objective (actively managed assets)* Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total
Slide 20: Investment performance (5-year)
Investment performance (5-year) % assets top half of peer group % assets bottom half of peer group By investment objective (actively managed assets)* Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total ranked AUM of $361.7 billion) Equities Glob
Slide 21: Investment performance
Investment performance % of AUM above 1st quartile By investment objective (actively managed assets)* benchmark 2nd quartile Equities U.S. Core U.S. Growth U.S. Value Sector 100% 100% 100% 100 100% 96% % 6% 92% 83% 85% 21% 45% 2% 60% 63% 1% 29% 83% 39% 67% 16% 64% 33% 28% 28% 51% 49% 2% 26% 21% 28%
Slide 22: Investment performance
Investment performance % of AUM above 1st quartile By investment objective (actively managed assets)* benchmark 2nd quartile Equities Global ex-U.S. and Other Global Emerging markets Alternatives Balanced 100% 100% 100% 100% 98% 93% 87% 80% 82% 82% 5% 13% 70% 71% 70% 60% 47% 74% 74% 76% 50% 2% 28% 6
Slide 23: We are diversified as a firm
We are diversified as a firm Delivering a diverse set of solutions to meet client needs By client domicile By channel By asset class 1-Yr 1-Yr 1-Yr ($ billions) Change ($ billions) Change ($ billions) Change U.S. $430.0 3.5% Retail $373.9 (1.1)% Equity $271.0 (7.8)% Canada $23.4 (16.1)% Institutiona
Slide 24: Non-GAAP operating results – quarterly
Non-GAAP operating results – quarterly ($ millions) 4Q-11 3Q-11 % Change* 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 1Q-10 Investment Management Fees 771 804 (4.1)% 844 816 799 749 653 618 Service and Distribution Fees 181 189 (4.2)% 206 199 202 192 139 113 Performance Fees 24 3 700.0% 8 4 19 3 4 1 Other 45 27 6
Slide 25: US GAAP operating results – quarterly
US GAAP operating results – quarterly ($ millions) 4Q-11 3Q-11 % Change* 2Q-11 1Q-11 4Q10 3Q-10 2Q-10 1Q-10 Investment Management Fees 748 780 (4.1)% 819 792 774 726 628 594 Service and Distribution Fees 181 189 (4.2)% 211 199 202 192 139 113 Performance Fees 24 3 819.2% 8 4 19 3 4 1 Other 45 27 67.
Slide 26: Total assets under management - quarterly
Total assets under management - quarterly ($ billions) 4Q-11 3Q-11 % Change 2Q-11 1Q-11 4Q-10 (8.5)% $616.5 $604.5 Beginning Assets $598.4 $653.7 $641.9 Long-Term Inflows 41.1 45.9 (10.5)% 42.7 48.0 40.4 Long-Term Outflows (35.5) (42.6) (16.7)% (38.9) (41.4) (57.4) Long-Term Net flows 5.6 3.3 69.7%
Slide 27: Total assets under management – by asset class
Total assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative June 30, 2011 $653.7 $301.9 $145.8 $44.5 $74.4 $87.1 Long-Term Inflows 45.9 23.8 10.3 2.8 0.9 8.1 Long-Term Outflows (42.6) (27.0) (7.7) (1.6) (0.5) (5.8) Long-Term Net flows 3.3 (
Slide 28: Total assets under management – by asset class
Total assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative December 31, 2010 $616.5 $294.0 $132.0 $43.5 $68.3 $78.7 Long-Term Inflows 48.0 25.0 13.3 2.1 0.4 7.2 Long-Term Outflows (41.4) (27.8) (6.7) (2.4) (0.4) (4.1) Long-Term Net flows 6
Slide 29: Total assets under management – by channel
Total assets under management – by channel ($ billions) Total Retail Institutional PWM June 30, 2011 $653.7 $401.7 $234.5 $17.5 Long-Term Inflows 45.9 35.6 9.5 0.8 Long-Term Outflows (42.6) (34.6) (7.6) (0.4) Long-Term Net flows 3.3 1.0 1.9 0.4 Net flows in Inst. Money Market Funds (1.1) - (1.1) - M
Slide 30: Total assets under management – by channel
Total assets under management – by channel ($ billions) Total Retail Institutional PWM December 31, 2010 $616.5 $378.1 $221.4 $17.0 Long-Term Inflows 48.0 36.5 10.7 0.8 Long-Term Outflows (41.4) (32.4) (8.3) (0.7) Long-Term Net flows 6.6 4.1 2.4 0.1 Net flows in Inst. Money Market Funds 2.6 - 2.6 -
Slide 31: Total assets under management – by client domicile
Total assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia June 30, 2011 $653.7 $439.9 $27.5 $97.1 $37.9 $51.3 Long-Term Inflows 45.9 31.9 0.6 3.5 4.3 5.6 Long-Term Outflows (42.6) (28.5) (1.2) (3.3) (5.5) (4.1) Long-Term Net flows 3.3 3.4 (0.6) 0.
Slide 32: Total assets under management – by client domicile
Total assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia December 31, 2010 $616.5 $415.4 $27.9 $92.1 $35.3 $45.8 Long-Term Inflows 48.0 33.5 0.7 3.5 4.8 5.5 Long-Term Outflows (41.4) (26.6) (1.7) (4.3) (5.4) (3.4) Long-Term Net flows 6.6 6.9 (1.0
Slide 33: AUM – ETF, UIT and passive – by asset class
Assets under management – ETF, UIT and passive – by asset class ($ billions) Fixed Money Total Equity Income Balanced Market Alternative June 30, 2011 $91.8 $45.7 $26.7 - - $19.4 Long-Term Inflows 18.1 12.6 2.9 - - 2.6 Long-Term Outflows (15.4) (12.6) (0.6) - - (2.2) Long-Term Net flows 2.7 - 2.3 -
Slide 34: AUM – ETF, UIT and passive – by asset class
Assets under management – ETF, UIT and passive – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative December 31, 2010 $80.8 $42.8 $19.8 $0.0 $0.0 $18.2 Long-Term Inflows 19.0 11.2 4.5 - - 3.3 Long-Term Outflows (10.9) (8.8) (0.5) - - (1.6) Long-Term Net flows 8.1
Slide 35: AUM – ETF, UIT and passive – by channel
Assets under management – ETF, UIT and passive – by channel ($ billions) Total Retail Institutional PWM June 30, 2011 $91.8 $76.7 $15.1 - Long-Term Inflows 18.1 16.2 1.9 - Long-Term Outflows (15.4) (15.2) (0.2) - Long-Term Net flows 2.7 1.0 1.7 - Net flows in Inst. Money Market Funds - - - - Market
Slide 36: AUM – ETF, UIT and passive – by channel
Assets under management – ETF, UIT and passive – by channel ($ billions) Total Retail Institutional PWM December 31, 2010 $80.8 $70.6 $10.2 $0.0 Long-Term Inflows 19.0 15.4 3.6 - Long-Term Outflows (10.9) (10.7) (0.2) - Long-Term Net flows 8.1 4.7 3.4 - Net flows in Inst. Money Market Funds - - - -
Slide 37: AUM – ETF, UIT and passive – by client domicile
Assets under management – ETF, UIT and passive – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia June 30, 2011 $91.8 $88.0 - - $1.4 $2.4 Long-Term Inflows 18.1 18.0 - - 0.1 - Long-Term Outflows (15.4) (15.3) - - (0.1) - Long-Term Net flows 2.7 2.7 - - - - Net flows in
Slide 38: AUM – ETF, UIT and passive – by client domicile
Assets under management – ETF, UIT and passive – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia December 31, 2010 $80.8 $77.3 $0.0 $0.0 $1.2 $2.3 Long-Term Inflows 19.0 18.8 - - 0.2 - Long-Term Outflows (10.9) (10.8) - - (0.1) - Long-Term Net flows 8.1 8.0 - - 0.1 - N
Slide 39: Reconciliation of US GAAP to non-GAAP – three months ended December 31, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other* Non- Consolidation distribution, related / depreciation of Investment GAAP Basis of Joint service and deferred
Slide 40: Reconciliation of US GAAP to non-GAAP – three months ended September 30, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other* Non- Consolidation distribution, related / depreciation of Investment GAAP Basis of Joint service and deferred
Slide 41: Reconciliation of US GAAP to non-GAAP – three months ended June 30, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated European Non- Consolidation distribution, related / depreciation of Investment Infrastructure GAAP Basis of Joint service
Slide 42: Reconciliation of US GAAP to non-GAAP – three months ended March 31, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service and d
Slide 43: Reconciliation of US GAAP to non-GAAP – three months ended December 31, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service an
Slide 44: Reconciliation of US GAAP to non-GAAP – three months ended September 30, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service a
Slide 45: Reconciliation of US GAAP to non-GAAP – three months ended June 30, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service and de
Slide 46: Reconciliation of US GAAP to non-GAAP – three months ended March 31, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2010 ($ millions) US GAAP Proportional 3rd party Acquisiti Market appreciation / Consolidated Non- share of JV distribution, on depreciation of Investment GAAP Basis service and related deferred compensation Product