Invesco Ltd · NYSE:IVZ

Invesco — Q1 2012 Earnings Presentation

47 slides from Invesco's earnings presentation, Apr 26, 2012

  1. Slide 1: Invesco first-quarter 2012 results

    Invesco first-quarter 2012 results Martin L. Flanagan President and Chief Executive Officer Loren M. Starr Chief Financial Officer April 26, 2012

  2. 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

  3. Slide 3: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 2

  4. Slide 4: First-quarter overview

    First-quarter overview Continued positive momentum in a volatile, yet trendless, market environment – Maintained strong, long-term investment performance across the enterprise, generally – Continued positive trend of net long-term inflows – the seventh consecutive quarter of positive net long-term i

  5. Slide 5: Summary of first-quarter 2012 results

    Summary of first-quarter 2012 results  March 31, 2012 AUM of $672.8 billion versus $625.3 billion at Assets under December 31, 2011 management  Average AUM was $658.2 billion versus $621.7 billion for the fourth quarter  Total net inflows of $8.1 billion Flows  Net long-term inflows of $7.0 bill

  6. Slide 6: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 5

  7. Slide 7: Investment performance – overview

    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 Assets top half of peer group Assets bottom half of peer group *Excludes passive products, closed-end funds, private equity limited par

  8. Slide 8: Quarterly flows – total flows

    Quarterly flows – total flows Continued positive momentum in long-term flows during the fourth quarter – the seventh consecutive quarter of positive long-term flows Quarterly long-term flows ($ billions) Total AUM Active AUM Passive AUM 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q12 2Q10 3Q10 4Q10 1Q11 2

  9. Slide 9: Quarterly flows – total flows

    Quarterly flows – total flows Continued strength in net inflows driven by Retail and Private Wealth Management channels Quarterly long-term flows ($ billions) Retail(a) Institutional(b) Private Wealth Management(c) 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q12 2Q1

  10. Slide 10: US Retail gross sales up 32% quarter over quarter; redemptions lower than industry average

    US Retail gross sales up 32% quarter over quarter; redemptions lower than industry average Gross and net sales Percentage above the bars is change in Net sales gross sales from prior quarter ($, billions) +36% +32% +9% +29% (27%) (15%) +25% Annualized redemption rate (rolling 3-month average) IVZ In

  11. Slide 11: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 10

  12. Slide 12: Capital management priorities

    Capital management priorities Our capital management priorities have evolved with the growth and success of our business – Reinvestment in the business – Steady annual growth of dividends – Share repurchase – ~$1 billion cash buffer in excess of regulatory requirements Executed in a manner consisten

  13. Slide 13: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 12

  14. Slide 14: Total assets under management – 1Q12 vs. 4Q11

    Total assets under management – 1Q12 vs. 4Q11 ($ billions) 1Q-12 4Q-11 % Change Beginning Assets $625.3 $598.4 4.5% Long-Term Inflows 42.9 41.1 4.4% Long-Term Outflows (35.9) (35.5) 1.1% Long-Term Net flows 7.0 5.6 25.0% Net flows in Inst. Money Market Funds 1.1 0.4 175.0% Market Gains and Losses/Re

  15. Slide 15: Non-GAAP operating results – 1Q12 vs. 4Q11

    Non-GAAP operating results – 1Q12 vs. 4Q11 ($ millions) 1Q-12 4Q-11 % Change Adjusted Revenues Investment Management Fees 812 771 5.4% Service and Distribution Fees 189 181 4.4% Performance Fees 21 24 (11.7)% Other 33 45 (26.3)% Third-Party Distribution, Service and Advisory Expenses (319) (304) 5.0

  16. Slide 16: First-quarter overview

    First-quarter overview Continued positive momentum in a volatile, yet trendless, market environment – Maintained strong, long-term investment performance across the enterprise, generally – Continued positive trend of net long-term inflows – the seventh consecutive quarter of positive net long-term i

  17. Slide 17: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 16

  18. Slide 18: Discussion topics

    Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 17

  19. Slide 19: Commitment to investment excellence

    Commitment to investment excellence Source: Invesco. All data as of March 31, 2012. 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 subsi

  20. Slide 20: Investment performance (5-year)

    Investment performance (5-year) 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 $388.8 billion) % of assets top half % of assets bottom Equities of peer group half of peer grou

  21. Slide 21: Investment performance (5-year)

    Investment performance (5-year) 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 $388.8 billion) % of assets top half % of assets bottom Equities Global ex-US and Other of peer

  22. Slide 22: Investment performance

    Investment performance By investment objective (actively managed assets)* Equities 1st quartile 2nd quartile AUM above benchmark U.S. Core U.S. Growth U.S. Value Sector 100% 100% 100% 100% 100% 95% 85% 2% 68% 13% 68% 64% 95% 1% 64% 1% 25% 54% 42% 3% 67% 1% 33% 54% 28% 28% 44% 27% 44% 41% 22% 29% 31%

  23. Slide 23: Investment performance

    Investment performance By investment objective (actively managed assets)* Equities Global ex-U.S. and Other 1st quartile 2nd quartile AUM above benchmark Global Emerging markets Alternatives Balanced 100% 100% 100% 100% 95% 83% 83% 79% 79% 77% 80% 18% 29% 64% 27% 60% 49% 76% 50% 77% 43% 33% 58% 2% 1

  24. Slide 24: 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. $462.9 6.4% Retail $414.8 4.7% Equity $305.2 0.7% Canada $24.8 (12.1)% Institutional $2

  25. Slide 25: Non-GAAP operating results – quarterly

    Non-GAAP operating results – quarterly ($ millions) 1Q-12 4Q-11 % Change* 3Q-11 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 Investment Management Fees 812 771 5.4% 804 844 816 799 749 653 Service and Distribution Fees 189 181 4.4% 189 206 199 202 192 139 Performance Fees 21 24 (11.7)% 3 8 4 19 3 4 Other 33 45 (26

  26. Slide 26: US GAAP operating results – quarterly

    US GAAP operating results – quarterly ($ millions) 1Q-12 4Q-11 % Change* 3Q-11 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 Investment Management Fees 791 748 5.9% 780 819 792 774 726 628 Service and Distribution Fees 189 181 4.4% 189 211 199 202 192 139 Performance Fees 21 24 (14.2)% 3 8 4 19 3 4 Other 33 45 (26.

  27. Slide 27: Total assets under management – quarterly

    Total assets under management – quarterly ($ billions) 1Q-12 4Q-11 % Change 3Q-11 2Q-11 1Q-11 Beginning Assets $625.3 $598.4 4.5% $653.7 $641.9 $616.5 Long-Term Inflows 42.9 41.1 4.4% 45.9 42.7 48.0 Long-Term Outflows (35.9) (35.5) 1.1% (42.6) (38.9) (41.4) Long-Term Net flows 7.0 5.6 25.0% 3.3 3.8

  28. 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 September 30, 2011 $598.4 $253.2 $146.7 $41.5 $73.6 $83.4 Long-Term Inflows 41.1 22.6 6.4 3.3 0.6 8.2 Long-Term Outflows (35.5) (21.8) (5.4) (1.7) (0.6) (6.0) Long-Term Net flows 5

  29. Slide 29: Total assets under management – by asset class

    Total assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative March 31, 2011 $641.9 $303.0 $139.7 $44.7 $71.0 $83.5 Long-Term Inflows 42.7 22.9 8.8 2.7 0.3 8.0 Long-Term Outflows (38.9) (25.5) (5.3) (2.2) (0.5) (5.4) Long-Term Net flows 3.8 (

  30. Slide 30: Total assets under management – by channel

    Total assets under management – by channel ($ billions) Total Retail Institutional PWM September 30, 2011 $598.4 $354.4 $227.2 $16.8 Long-Term Inflows 41.1 30.2 9.9 1.0 Long-Term Outflows (35.5) (29.0) (6.0) (0.5) Long-Term Net flows 5.6 1.2 3.9 0.5 Net flows in Inst. Money Market Funds 0.4 - 0.4 -

  31. Slide 31: Total assets under management – by channel

    Total assets under management – by channel ($ billions) Total Retail Institutional PWM March 31, 2011 $641.9 $396.2 $228.3 $17.4 Long-Term Inflows 42.7 33.2 8.6 0.9 Long-Term Outflows (38.9) (30.3) (7.9) (0.7) Long-Term Net flows 3.8 2.9 0.7 0.2 Net flows in Inst. Money Market Funds 3.5 - 3.5 - Mark

  32. 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 September 30, 2011 $598.4 $411.0 $22.8 $86.7 $31.9 $46.0 Long-Term Inflows 41.1 28.2 0.6 3.0 3.2 6.1 Long-Term Outflows (35.5) (24.8) (1.3) (3.0) (3.4) (3.0) Long-Term Net flows 5.6 3.4 (0.

  33. Slide 33: Total assets under management – by client domicile

    Total assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia March 31, 2011 $641.9 $435.2 $28.2 $94.2 $36.2 $48.1 Long-Term Inflows 42.7 26.8 0.7 4.3 4.9 6.0 Long-Term Outflows (38.9) (27.0) (1.5) (3.2) (4.1) (3.1) Long-Term Net flows 3.8 (0.2) (0.8)

  34. Slide 34: Passive assets under management – by asset class

    Passive assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative September 30, 2011 $87.4 $39.7 $29.5 - - $18.2 Long-Term Inflows 19.5 13.1 1.7 - - 4.7 Long-Term Outflows (13.7) (10.3) (1.2) - - (2.2) Long-Term Net flows 5.8 2.8 0.5 - - 2.5 Ne

  35. Slide 35: Passive assets under management – by asset class

    Passive assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative March 31, 2011 $91.7 $47.3 $23.7 $0.0 $0.0 $20.7 Long-Term Inflows 14.7 10.0 3.0 - - 1.7 Long-Term Outflows (13.8) (10.9) (0.3) - - (2.6) Long-Term Net flows 0.9 (0.9) 2.7 - - (0

  36. Slide 36: Passive assets under management – by channel

    Passive assets under management – by channel ($ billions) Total Retail Institutional PWM September 30, 2011 $87.4 $71.0 $16.4 - Long-Term Inflows 19.5 15.6 3.9 - Long-Term Outflows (13.7) (12.8) (0.9) - Long-Term Net flows 5.8 2.8 3.0 - Net flows in Inst. Money Market Funds - - - - Market Gains and

  37. Slide 37: Passive assets under management – by channel

    Passive assets under management – by channel ($ billions) Total Retail Institutional PWM March 31, 2011 $91.7 $78.2 $13.5 - Long-Term Inflows 14.7 12.7 2.0 - Long-Term Outflows (13.8) (13.3) (0.5) - Long-Term Net flows 0.9 (0.6) 1.5 - Net flows in Inst. Money Market Funds - - - - Market Gains and Lo

  38. Slide 38: Passive assets under management – by client domicile

    Passive assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia September 30, 2011 $87.4 $84.1 - - $1.2 $2.1 Long-Term Inflows 19.5 16.1 - - 0.1 3.3 Long-Term Outflows (13.7) (13.6) - - (0.1) - Long-Term Net flows 5.8 2.5 - - - 3.3 Net flows in Inst.

  39. Slide 39: Passive assets under management – by client domicile

    Passive assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia March 31, 2011 $91.7 $88.0 - - $1.4 $2.3 Long-Term Inflows 14.7 14.6 - - 0.1 - Long-Term Outflows (13.8) (13.7) - - (0.1) - Long-Term Net flows 0.9 0.9 - - - - Net flows in Inst. Money Ma

  40. Slide 40: Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2012

    Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2012 * Other: Please refer to pages 10-12 in the 1Q 2012 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other* No

  41. Slide 41: Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011

    Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011 * Other: Please refer to pages 13-15 in the 4Q 2011 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other*

  42. Slide 42: Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011

    Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011 * Other: Please refer to pages 9-10 in the 3Q 2011 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other*

  43. Slide 43: Reconciliation of US GAAP results to non-GAAP results – 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

  44. Slide 44: Reconciliation of US GAAP results to non-GAAP results – 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

  45. Slide 45: Reconciliation of US GAAP results to non-GAAP results – 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

  46. Slide 46: Reconciliation of US GAAP results to non-GAAP results – 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

  47. Slide 47: Reconciliation of US GAAP results to non-GAAP results – 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

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