Invesco Ltd · NYSE:IVZ
Invesco — Q1 2021 Earnings Presentation
21 slides from Invesco's earnings presentation, Apr 27, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results Marty Flanagan President and Chief Executive Officer Allison Dukes Chief Financial Officer April 27, 2021
Slide 2: Forward-looking statements and Important Information
Forward-looking statements and Important Information This presentation, and comments made in the associated This presentation includes the following non-GAAP performance conference call today, may include “forward-looking statements.” measures: net revenue (and by calculation, net revenue yield on F
Slide 3: First quarter 2021 highlights
First quarter 2021 highlights Key Capability Q1’21 Ending Key Metrics Q1’20 Q4’20 Q1’21 Q1’21 Business Highlights Area AUM Net LT Flows (billions) ($19.1) $9.8 $24.5 ETFs, Factors $427B1 Global ETF net LT flows (ex-QQQ) $16.8B; Invesco US and Index ETFs ex QQQ captured 6.8% of US ETF industry net fl
Slide 4: Investment performance
Investment performance % of actively managed assets in top half of peer group or beating benchmark Overall US Equity Global & Int’l Equity Fixed Income Alternatives Balanced 100% 80% 60% 94% 84% 85% 88% 90% 40% 82% 82% 83% 76% 70% 68% 63% 65% 62% 50% 54% 56% 47% 52% 20% 39% 35% 32% 21% 20% 0% 1YR 3Y
Slide 5: Assets under management & long-term flows
Assets under management & long-term flows 1 Q1'20 Q4'20 Q1'21 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM Total Firm AUM by Investment Approach AUM by Channel 77% 73% 72% 23% 27% 28% 67% 70% 70% 33% 30% 30% $990 $947 $1,350 $1,404 $979 $1,006 $807 $703 $1,053 $403 $414 $398 $351
Slide 6: Assets under management & long-term flows (continued)
Assets under management & long-term flows (continued) 1 Q1'20 Q4'20 Q1'21 % of Total Firm AUM Annualized LT Org. Grow th (in billions) AUM By Geography AUM by Asset Class 72% 71% 71% 11% 13% 14% 12% 11% 11% 5% 5% 4% 15% 13% 13% 5% 6% 6% 44% 51% 52% 25% 22% 21% 11% 8% 8% $960 $997 $690 $725 $757 $459
Slide 7: Global institutional long-term flows & pipeline
Global institutional long-term flows & pipeline (in billions) Global Institutional LT Flows Won Not Funded Pipeline by Type of Mandate (% AUM) 100% = $45.5 billion 4% 4% $26.9 $27.4 12% $25.2 $11.2 $19.7 $15.3 $10.6 $8.1 $3.3 43% $0.5 16% ($11.6) ($15.7) ($14.8) ($16.8) ($21.9) 21% Q1’20 Q2’20 Q3’20
Slide 8: Revenues and expenses
Revenues and expenses (in millions) Net Revenues Adjusted Operating Expenses 1.8% 0.7% $23 million increase $5 million increase +$13 -$71 +$97 +$14 -$5 +$4 $748 -$30 $1,251 +$14 +$40 -$7 $743 $1,228 Q4 2020 Investment Service & Performance Other Third Q1 2021 Q4 2020 Employee Marketing Property G&A
Slide 9: Strategic evaluation - annualized net savings
Strategic evaluation - annualized net savings • Strategic evaluation is focused on investing for growth in key areas of the business, including ETFs, Fixed Income, China, Solutions, Alternatives and Global Equities • Will achieve further efficiency and effectiveness, helping to drive sustained organ
Slide 10: Adjusted operating income and profitability
Adjusted operating income and profitability (in millions, except margin and per share information) Adjusted Operating Income and Adjusted Operating Adjusted Net Income and Adjusted Diluted Earnings Margin Per Share $0.72 40.9% $0.70 39.9% $0.68 39.5% 40.2% $0.65 $0.64 37.2% $0.53 36.0% 34.8% 35.2% $
Slide 11: Capital management and balance sheet
Capital management and balance sheet (in millions, except ratio information) Capital returned to shareholders Balance Sheet Highlights Assets Liabilities Equity $232 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 $32 $176 $59 U.S. GAAP $ 37,011 $ 34,882 $ 22,892 $ 19,514 $ 14,119 $ 15,368 $136 $136 $137 $45 $3
Slide 12: Conclusion
Conclusion Key capabilities in areas of high client demand driving strong inflows • Key areas of focus include ETFs, Factors and Index, Private Markets, Active Fixed Income, Active Global Equities, Greater China, and Solutions • Continued investment performance strength in high-demand capabilities
Slide 13: Appendix
Appendix 4 Invesco
Slide 14: We are diversified as a firm
We are diversified as a firm By Client domicile By Channel By Asset class 6% 8% 4% 30% 11% 13% 71% 52% 14% 70% 21% 1-Yr 1-Yr 1-Yr (billions) Change (billions) Change (billions) Change Americas $997.2 31.8 % Retail $989.7 40.9 % Equity $725.0 57.8 % Asia Pac $189.0 56.7 % Institutional $414.4 18.1 %
Slide 15: Investment performance by investment objective (actively managed assets)
Investment performance By investment objective (actively managed assets)* Equities AUM above benchmark 1st quartile 2nd quartile U.S. Core U.S. Growth U.S. Value Sector 100% 100% 100% 100% 97% 97% 90% 88% 88% 35% 79% 31% 82% 69% 16% 53% 24% 54% 51% 48% 66% 66% 66% 46% 52% 51% 32% 29% 49% 14% 42% 29%
Slide 16: Investment performance by investment objective (actively managed assets)
Investment performance By investment objective (actively managed assets)* AUM above benchmark 1st quartile 2nd quartile Equities Other Global Global ex-U.S. and Em. Mkts. Alternatives Balanced 100% 100% 100% 100% 11% 98% 4% 8% 89% 90% 86% 24% 9% 86% 35% 73% 67% 63% 81% 11% 59% 54% 83% 73% 82% 53% 81
Slide 17: US GAAP and Non-GAAP operating results Q1-21 vs. Q4-20
US GAAP and Non-GAAP operating results Q1-21 vs. Q4-20 US GAAP Basis Non-GAAP Basis (in millions) Q1-21 Q4-20 % Change (1) (in millions) Q1-21 Q4-20 % Change (1) Investment Management Fees $1,206.6 $1,148.8 5.0% Investment Management Fees $1,363.2 $1,266.8 7.6% Service and Distribution Fees 381.1 36
Slide 18: Reconciliation of US GAAP results to Non-GAAP results, three months ended March 31, 2021
Reconciliation of US GAAP results to Non-GAAP results Three months ended March 31, 2021 Please refer to pages 6-9 in the 1Q 2021 earnings press release for a description of the adjustments Consolidation 3rd party distribution, Transaction, Market appreciation / Consolidated Other US GAAP of joint se
Slide 19: Reconciliation of US GAAP results to Non-GAAP results, three months ended December 31, 2020
Reconciliation of US GAAP results to Non-GAAP results Three months ended December 31, 2020 Please refer to pages 8-11 in the 4Q 2020 earnings press release for a description of the adjustments Consolidation 3rd party distribution, Transaction, Market appreciation / Consolidated Other US GAAP of join
Slide 20: Reconciliation of US GAAP results to Non-GAAP results
Reconciliation of US GAAP results to Non-GAAP results (in millions) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Operating Revenues $1,439.4 $1,720.6 $1,742.8 $1,598.9 $1,419.0 $1,497.6 $1,630.1 $1,659.7 Non-GAAP Adjustments (407.9) (491.9) (475.0) (453.1) (384.7) (405.1) (401.7)
Slide 21: Footnote disclosures
Footnote disclosures Footnotes for Slide 3, First quarter 2021 highlights * For the reconciliations from US GAAP to non-GAAP measures, see the Appendix to this presentation and the Non-GAAP Information and Reconciliations section of the current earnings release. Additional detailed information and d