Invesco Ltd · NYSE:IVZ
Invesco — Q3 2024 Earnings Presentation
20 slides from Invesco's earnings presentation, Oct 22, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results Andrew Schlossberg President and Chief Executive Officer Allison Dukes Chief Financial Officer October 22, 2024
Slide 2: Forward-looking statements and Important Information
Forward-looking statements and Important Information This presentation and comments made in the associated obligation to update the information in any public disclosure if any conference call today may include “forward-looking statements.” forward-looking statement later turns out to be inaccurate.
Slide 3: Advantageous Position + Winning Strategic Focus = Enhanced Operating Performance
Advantageous Position + Winning Strategic Focus = Enhanced Operating Performance We have an advantageous position globally as a diversified, client-centric asset manager and a strategy to deliver for our shareholders Advantageous Market Position Winning Strategic Focus Key Performance Drivers • Glob
Slide 4: Third quarter 2024 business highlights
Third quarter 2024 business highlights Investment Capabilities Investment Capability* Ending AUM Net LT Flows Highlights Another strong quarter with continued market share gains. Top flowing funds were the S&P 1 500 Equal Weight and QQQM with nearly $10 billion in net inflows combined; broadening ET
Slide 5: Solid growth with ample opportunity
Solid growth with ample opportunity 1 Q3'23 Q2'24 Q3'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) Geography Investment Approach Channel 72% 72% 71% 15% 14% 15% 13% 14% 14% 65% 58% 57% 35% 42% 43% 63% 68% 68% 37% 32% 32% $1,236 $1,275 $1,032 $1,227 $966 $1,003 $1,162 $1,069 $942 AU
Slide 6: Investment Performance
Investment Performance Fundamental Equities Fundamental Fixed Income 26% 41% 20% 33% 24% 75% 17% 70% 64% 55% 42% 46% 42% 40% 39% 28% 24% 28% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr Multi-Asset Overall 18% 28% 17% 83% 32% 11% 68% 65% 71% 56% 8% 62% 51% 43% 42% 27% 30% 27% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr AUM abov
Slide 7: Third quarter 2024 financial highlights
Third quarter 2024 financial highlights • Net long-term inflows of $16.5 billion or 5.2% annualized organic growth ‒ Ending AUM grew 5% quarter-over-quarter to a record high of $1.8 trillion • Generated positive operating leverage of 100 basis points with net revenues up 2% and operating expenses up
Slide 8: Significant AUM growth; capturing flows as client demand shifts and impacts asset mix
Significant AUM growth; capturing flows as client demand shifts and impacts asset mix Average AUM, $B | Net Revenue Yield (NRY)* Current NRY 3Q’24 NRY Drivers Trends10 Post OFI Current Trends Acquisition $1,742.0 $1,669.3 25.3 bps 38–42 bps • Secular shifts in client demand have $1,613.0 25.6 bps 4%
Slide 9: Revenues and expenses
Revenues and expenses (in millions) Net Revenues Adjusted Operating Expenses +0.6% -4.2% $7 ($45) $ 789 ($44) $7 ($2) $40 Q3’23 vs Q3’24 $8 $2 $756 $1,104 $1,098 ($0) Q3 2023: Includes $39 million of org. change expenses $6 million increase $33 million decrease Q3 2023 Investment Service & Performan
Slide 10: Capital management
Capital management (in millions, except ratio information) Capital Returned to Shareholders Leverage Ratio** $179 $149 $149 $149 $152 $25 $59 $59 $59 $59 $59 3.50x 3.48x 3.36x 3.01x 2.88x $90 $90 $90 $93 $95 0.69x 0.69x 0.54x 0.28x 0.26x Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Co
Slide 11: Appendix
Appendix 4 Invesco 11
Slide 12: Diversification
Diversification By Client Domicile By Channel By Investment Capability 4% 7% 25% 7% 14% 9% 71% 68% 32% 15% 16% 16% 16% 1-Yr 1-Yr 1-Yr (billions) Change (billions) Change (billions) Change Americas $1,275.3 19.3 % Retail $1,227.2 30.2 % ETFs & IS $457.6 43.9 % Asia Pac $266.6 20.9 % Institutional $56
Slide 13: Solid growth with ample opportunity
Solid growth with ample opportunity 1 Q3'23 Q2'24 Q3'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) Investment Capability 21% 24% 25% 17% 16% 16% 16% 16% 16% 8% 8% 7% 7% 7% 7% 4% 3% 4% 12% 10% 9% 13% 17% 16% $458 $415 $318 $291 $287 $295 $259 $273 $269 $279 AUM $242 $183 $172 $197 $
Slide 14: Key Market Indices
Key Market Indices % Change % Change Spot 9/30/24 vs. Average Q3 2024 vs. 9/30/2023 6/30/2024 9/30/2024 9/30/2023 6/30/2024 Q3 2023 Q2 2024 Q3 2024 Q3 2023 Q2 2024 Equity Indices Equity Indices Domestic S&P 500 (SPX) 4,288 5,460 5,762 34% 6% 4,458 5,247 5,543 24% 6% S&P 500 Equal-Weight (SPW) 5,755
Slide 15: US GAAP and Non-GAAP operating results Q3-24 vs. Q2-24
US GAAP and Non-GAAP operating results Q3-24 vs. Q2-24 US GAAP Basis Non-GAAP Basis (1) (in millions) Q3-24 Q2-24 % Change Q3-24 Q2-24 % Change (1) Investment management fees $1,100.5 $1,065.8 3.3% Investment management fees $1,219.8 $1,186.7 2.8% Service and distribution fees 360.3 361.6 (0.4)% Ser
Slide 16: Reconciliation of US GAAP results to Non-GAAP results Three months ended September 30, 2024
Reconciliation of US GAAP results to Non-GAAP results Three months ended September 30, 2024 Please refer to pages 7-10 in the 3Q 2024 earnings press release for a description of the adjustments 3rd party distribution, Market appreciation / Consolidated Consolidation of service and advisory Amortizat
Slide 17: Reconciliation of US GAAP results to Non-GAAP results Three months ended June 30, 2024
Reconciliation of US GAAP results to Non-GAAP results Three months ended June 30, 2024 Please refer to pages 7-10 in the 2Q 2024 earnings press release for a description of the adjustments 3rd party distribution, Market appreciation / Consolidated Consolidation of service and advisory Amortization o
Slide 18: Reconciliation of US GAAP results to Non-GAAP results
Reconciliation of US GAAP results to Non-GAAP results (in millions) Q3'22 Q4'22 Q1'23 Q2'23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Operating revenues $1,445.7 $1,443.4 $1,418.2 $1,442.8 $1,442.0 $1,413.4 $1,475.3 $1,483.3 $1,515.4 Non-GAAP adjustments (335.1) (335.3) (342.3) (352.1) (343.8) (367.5) (422.1) (
Slide 19: Footnote disclosures
Footnote disclosures Footnotes for Slide 4, Third quarter 2024 business highlights Non-GAAP financial measures – 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.
Slide 20: Footnote disclosures (continued)
Footnote disclosures (continued) Footnotes for Slide 10, Capital management Non-GAAP financial measures – 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. Additio