Invesco Ltd · NYSE:IVZ
Invesco — Q2 2009 Earnings Presentation
26 slides from Invesco's earnings presentation, Jul 27, 2009
Slide 1: Invesco 2009 Second Quarter Results
Invesco 2009 Second Quarter Results July 27, 2009 M ti L. Martin L Flanagan Fl President & Chief Executive Officer Loren M. M Starr Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Thi presentation, This t ti andd comments t made d in i the th associated i t d conference f call ll today, may include “forward-looking statements.” Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity,
Slide 3: Discussion Topics
Discussion Topics 1. Business Overview 2. Financial Results 3 3. Q Questions i and dAAnswers 4. Appendix pp 3
Slide 4: Second Quarter Overview
Second Quarter Overview Continued emphasis on disciplined management in an improving market environment Improving trend in long long-term term net flows Commitment to investment excellence yielding strong, g, long-term g investment p performance Disciplined expense management along with recove
Slide 5: Improving Our Competitive Position
Improving Our Competitive Position Accelerating flows into our U.S. retail business Selected as a manager for the Public Private Investment Program (PPIP) IPO of Invesco Mortgage Capital Inc. Launched $540mn Chinese equity fund in Japan Awarded $900mn real estate mandate Market share gai
Slide 6: Summary of Second Quarter 2009 Results
Summary of Second Quarter 2009 Results June 30, 2009 AUM of $388.7bn versus $348.2bn as of March AUM 31, 2009 2Q09 average AUM was $376.5bn, up $25.5bn since 1Q09 Total positive flows of $4.7bn Quarterly Flows Net long-term flows were positive $3.0bn for the quarter Institutional money mar
Slide 7: Quarterly Flows – Continuing Positive Trend
Quarterly Flows – Continuing Positive Trend Redemption rate improved from 2121.3% 3% to 19.2% 19 2% Net long-term flows were positive Institutional money market AUM increased by $1.7bn to $89.5bn Quarterly Long-Term Flows ($ billions) Growth in Institutional Money Market ($ billions) Gross sal
Slide 8: Distribution Channels – Quarterly LT Flows
Distribution Channels – Quarterly LT Flows Improvement in gross sales across the retail and institutional channels Retail net flows benefited from strong flows in the U.K., Asia Pacific, and Invesco PowerShares, and from improving flows at Invesco Aim and in Continental Europe Institutional ne
Slide 9: Investment Performance – Overview
Investment Performance – Overview Aggregate Performance Analysis – Asset Weighted Strong overall peer group performance (asset-weighted): 71%, 73%, and 79% of assets are in the top half of peer groups for the 1, 3, and 5-year time periods as of June 30, 2009. % Assets in Top Half of Peer Group* 1-Ye
Slide 10: Investment Performance Highlights
Investment Performance Highlights Morningstar o gsta ratings at gs remain e a nearea their t e highest g est level e e since s ce 10/00 0/00 US Core Equity and International Growth Equity funds continue strong Invesco relative performance against peers for 1, 3 and 5 years Aim Over 64% of AUM
Slide 11: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3 3. Q Questions i and dAAnswers 4. Appendix pp 11
Slide 12: Assets Under Management – 2Q09 vs. 1Q09
Assets Under Management – 2Q09 vs. 1Q09 ($ billions) 2Q09 1Q09 % Change Beginning Assets $348.2 $357.2 (2.5)% Long-Term Inflows 18.1 14.3 26.6% L Long-Term T Outflows O tfl (15 1) (15.1) (13 6) (13.6) 11 0% 11.0% Long-Term Net flows 3.0 0.7 328.6% Net flows in Money Market Funds 1.7 8.6 (80.2)% Mark
Slide 13: Operating Results – 2Q09 vs. 1Q09
Operating Results – 2Q09 vs. 1Q09 ($ millions) 2Q09 1Q09 % Change Change* Investment Management Fees 502 437 14.9% Performance Fees 8 11 (26.6)% Service and Distribution Fees 100 89 12.8% Other 15 12 23.8% Total Operating Revenues 625 549 13 9% 13.9% Employee Compensation 229 236 (2.9)% Third-Party
Slide 14: Well-Positioned for Long-Term Success
Well-Positioned for Long-Term Success Invesco is well-positioned well positioned to meet the needs of clients, clients consultants, and intermediaries: ¾ Strong, long-term investment performance ¾ Global footprint ¾ Broad range of investment capabilities ¾ Positive earnings ¾ Strong balance sheet ¾
Slide 15: Questions & Answers
Questions & Answers 2009 Second Quarter Results July 27, 2009
Slide 16: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3 3. Q Questions i and dAAnswers 4. Appendix pp 16
Slide 17: 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 U.S., international Strategies and global equities Investment focus: AUM: $41.0billion $41 0billion Global Equity (Global, non-U.S., and Invesco Invesco Trimark Invesco Pri
Slide 18: We Are Diversified As A Firm
We Are Diversified As A Firm Delivering a diverse set of solutions to meet a broad set of global investment needs By Client Domicile By Channel By Asset Class Money Balanced Market Canada 9.3% 24.3% 6.5% Retail U.S. U.K. 43.5% 62.6% 17.6% Fixed Equity Income Institutional 36.3% 17.6% 52.9% Europe 6.
Slide 19: Focusing on Investment Excellence
Focusing on Investment Excellence By Investment Objective* % of AUM 1st quartile above 2ndd quartile til Equities benchmark US Core US Growth US Value Sector 100% 94% 96% 91% 77% 71% 77% 65% 73% 58% 33% 55% 33% 42% 13% 19% 25% 37% 21% 22% 23% 18% 18% 23% 15% 17% 18% 13% 11% 7% 0% 4% 5% 5% 4% 1-yr 3-
Slide 20: Focusing on Investment Excellence
Focusing on Investment Excellence By Investment Objective* % of AUM 1st quartile above abo e Equities i i Balanced l d benchmark 2nd quartile Global Ex US and Global Emerging Markets Balanced 100% 95% 96% 95% 83% 73% 69% 71% 73% 65% 59% 90% 53% 7% 25% 16% 45% 45% 10% 41% 25% 27% 25% 20% 17% 0% 3% 9%
Slide 21: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 2Q09 1Q09 % Change g 4Q08 Q 3Q08 Q 2Q08 Q Beginning Assets $348.2 $357.2 (2.5)% $409.6 $461.3 $470.3 Long-Term Inflows 18.1 14.3 26.6% 15.5 16.8 19.4 Long-Term Outflows (15.1) (13.6) 11.0% (19.9) (19.8) (25.6) Long-Term Net flows 3.0 0.7 328.6% (4.4)
Slide 22: Operating Results – Quarterly
Operating Results – Quarterly ($ millions) 2Q09 1Q09 % Change* 4Q08 3Q08 2Q08 1Q08 4Q07 3Q07 Investment Management Fees 502 437 14 9% 14.9% 479 665 737 738 816 792 Performance Fees 8 11 (26.6)% 24 18 22 11 13 4 Service and Distribution Fees 100 89 12.8% 101 129 143 138 151 151 Other 15 12 23.8% 31 1
Slide 23: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM December 31, 2008* $357.2 $149.3 $194.6 $13.3 Long-Term Inflows 14.3 9.6 3.2 1.5 Long-Term Outflows (13.6) (8.5) (3.7) (1.4) Long-Term Net flows 0.7 1.1 (0.5) 0.1 Net flows in Money Market Funds 8.6 0.0 8.6 0.0 Market G
Slide 24: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative December 31, 2008 $357.2 $127.3 $61.8 $32.8 $84.2 $51.1 g Long-Term Inflows 14.3 6.2 4.1 2.1 1.0 0.9 Long-Term Outflows (13.6) (6.4) (2.8) (2.2) (1.1) (1.1) Long-Term Net flows 0.7 (0.2)
Slide 25: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia December 31, 2008 $357.2 $232.5 $24.1 $56.7 $22.4 $21.5 Inflows 14.3 7.2 0.7 3.8 1.6 1.0 Outflows (13.6) (7.9) (1.2) (1.4) (1.9) (1.2) Long-Term Net flows 0.7 (0.7) (0.5) 2.4 (0.3) (0.2) Net flow
Slide 26: Schedule of Non-GAAP Information
Schedule of Non-GAAP Information For the three months ended June 30, 2009 March 31, 2009 June 30, 2008 Operating revenues, GAAP basis $625.1 $548.6 $935.6 Third party distribution, service and advisory Third-party expenses (166.3) (148.2) (244.9) Proportional share of net revenues from joint venture