Invesco Ltd · NYSE:IVZ
Invesco — Investor Day (July 2010)
62 slides from Invesco's investor day presentation, Jul 27, 2010
Slide 1: Invesco: Winning in the global marketplace
Invesco: Winning in the global marketplace July 27, 2010
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: Today's speakers
Today’s speakers Martin L. Flanagan, President and Chief Executive Officer Phil Taylor, Head of North American Retail John Cooper, Head of US Retail Distribution Mark Armour, Head of Invesco Institutional Andrew Lo, Head of Asia-Pacific 2
Slide 4: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 3
Slide 5: Winning in the global marketplace
Winning in the global marketplace Invesco is capturing opportunities to grow and succeed across the globe • Structural shifts and demographic trends are creating major opportunities in the US asset management industry and across global retail and institutional markets • Invesco's strategic direction
Slide 6: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 5
Slide 7: A growing opportunity worldwide
A growing opportunity worldwide Demographic and economic trends provide opportunity 6.8 billion people worldwide1 1,335 People, in millions 1,198 307 194 128 82 62 60 62 US UK Japan China Brazil India Germany Italy France >$100 trillion household financial assets worldwide2 Savings levels worldwide3
Slide 8: Worldwide asset management industry
Worldwide asset management industry Total assets under management estimated at ~$43 trillion EMEA $13 trillion UK $2.3tr Rest of Europe $9.9tr Middle East $0.3tr Africa $0.2tr Americas $24 trillion US $21.3tr Canada $1.3tr Asia Pacific $6 trillion Latin America $1tr Japan $3tr Australia $1tr China $
Slide 9: Invesco has a meaningful presence in the fastest-growing and wealthiest regions
Invesco has a meaningful presence in the fastest-growing and wealthiest regions Invesco Total AUM AUM Growth New AUM, 2009-12 presence US$ bn, 2009 2009-2012 CAGR % US$ bn 9 United States 21,292 8 5,829 9 Western Europe 12,031 14 3,853 9 United Kingdom 2,306 13 967 9 France 1,759 12 726 9 Germany 1,
Slide 10: What will global winners look like?
What will global winners look like? Success Driver Areas of Emphasis • Exclusive focus on investment management • Proven management team with a solid track record Focus and • Brand awareness and global relevance Experience • Independence • Strong investment culture • Consistent, repeatable long-term
Slide 11: Who we are
Who we are A leading independent global investment manager Our global resources include: • $557.7 billion in assets under management around the globe • Specialized investment teams managing investments across a wide range of asset classes and investment styles • Approximately 700 investment professi
Slide 12: Commitment to investment excellence
Commitment to investment excellence Specialized investment teams with discrete investment perspectives Sources: Invesco, Morgan Stanley/Van Kampen Investments. All data as of June 30, 2010. The listed centers do not all provide products or services that are available in the US nor are their and serv
Slide 13: Commitment to investment excellence
Commitment to investment excellence Strong investment performance across all periods Percent of assets in top half of peer group1 1-year 3-year 5-year 68% 75% 79% 32% 25% 21% % assets top half of peer group % assets top half of peer group % assets top half of peer group % assets bottom half of peer
Slide 14: Depth of investment capabilities
Depth of investment capabilities Well-diversified across asset class, channel and client domicile Our wide range of investment capabilities is designed to support a variety of financial objectives. We offer a wide range of single-country, regional and global capabilities across major equity, fixed i
Slide 15: Depth of investment capabilities
Depth of investment capabilities Well-diversified across asset class, channel and client domicile By Asset Class By Channel By Client Domicile Private Wealth Asset allocation Management Canada Asia Combined Alternatives 7% Institutional 3% 5% Europe 8% AUM: 12% Equity 5% US$557.7B Money 47% 39% 13%
Slide 16: Depth of investment capabilities
Depth of investment capabilities Enhanced breadth and depth of Invesco’s investment strategies Van Kampen / Invesco Combined MS Retail1 AUM = $446.1B AUM = $111.6B AUM = $557.7B 34 US Growth 7 US Growth 42 30 Global/Int’l Equity 8 Global/Int’l Equity 38 5 US Value 26 US Value 32 28 Quantitative 2 Qu
Slide 17: Depth of investment capabilities
Depth of investment capabilities Expanded vehicles in which to deliver our investment strategies Investment Vehicles Invesco Invesco Van Kampen Van Retail / MS Kampen Business MS Retail / 1 1 Combined Combined 9 Relative strength Collective Trust Funds 9 9 ETFs 9 9 Private Equity 9 9 Mutual Funds 9
Slide 18: Organizational strength
Organizational strength Despite the challenging environment, our accomplishments over the past two years have positioned us to be an industry leader • Strengthened our organization through the worst crisis since the Great Depression • Helped clients manage through the crisis • Actively engaged at in
Slide 19: Invesco is well-positioned as a global winner
Invesco is well-positioned as a global winner Success Driver Invesco position • Exclusive focus on investment management • Proven management team with a solid track record Focus and • Growing brand awareness and strong global relevance Experience • Independence • Investment-centric culture • Special
Slide 20: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 19
Slide 21: Winning in the US marketplace
Winning in the US marketplace Well-positioned to grow and succeed in the US • Strong culture focused on delivery of investment excellence • Expanded depth and breadth of investment capabilities across a broad range of asset classes and vehicles to serve the needs of our retail, DC and institutional
Slide 22: Van Kampen / Morgan Stanley integration and transition
Van Kampen / Morgan Stanley integration and transition We met our objective of fully integrating the acquired business at close Areas of focus Clients Developed plans to capture market share at top US platforms; sales structure and personnel in place; product training complete 9 Gained understanding
Slide 23: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Industry facts 1 Increased demand for US • 17% of last 12 months’ flows have been in equities and International equities • 63% of last 12 months’ flows have been in fixed income within retail and • Historicall
Slide 24: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Invesco’s Position 1 Increased demand for US • 70% of Invesco’s US retail assets are in equities and International equities • Strong relative performance for US and international equity capabilities (71% of wi
Slide 25: Domestic and international equity assets are a large part of our combined US retail and retirement profile
1 Increased demand for US and international equities Domestic and international equity assets are a large part of our combined US retail and retirement profile Van Kampen / Invesco Combined MS Retail1 AUM = $446.1B AUM = $111.6B AUM = $557.7B 34 US Growth 7 US Growth 42 30 Global/Int’l Equity 8 Glob
Slide 26: Invesco's domestic and international equity investment performance remains strong
1 Increased demand for US and international equities Invesco’s domestic and international equity investment performance remains strong % AUM in Top Half of Lipper 1 Year 3 Year 5 Year US Value 88 93 93 US Core 53 88 89 US Growth 52 54 62 International/ 79 82 93 Global 0 20 40 60 80 100 0 20 40 60 80
Slide 27: Return to positive equity markets post 2010 may result in reversal of flows
1 Increased demand for US and international equities Return to positive equity markets post 2010 and beyond may result in reversal of flows Asset Class Calendar Year Net Flows (%) Fixed Fixed InIncome come (Tax(Taxable/Tax-Free) able & Tax Free) Equity Equity (U(US/Int’l/Gbl/Sector) S/Int'l/Global/S
Slide 28: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Invesco’s Position 1 Increased demand for US • 70% of Invesco’s US retail assets are in equities and International equities • Strong relative performance for US and international equity capabilities (71% of wi
Slide 29: We strengthened our competitive position with clients by combining Invesco and VK/MS retail
2 Financial intermediary, distribution landscape We strengthened our competitive position with clients by combining Invesco and VK/MS retail • Deepened our client coverage: Channel coverage and expertise across all segments; competitively staffed with specialists to connect clients with the investme
Slide 30: Invesco's retail platform has greater market relevance, scale and diversification
2 Financial intermediary, distribution landscape Invesco’s retail platform has greater market relevance, scale and diversification Today we rank among the top 10 US fund managers Rank based on Long Term Total Franchise Assets June 2010 AUM1 Assets2 $259B 1. Vanguard $1,175 B 2. American Funds $835 B
Slide 31: Invesco has the relationships, strategies, vehicles and client coverage to increase market share
2 Financial intermediary, distribution landscape Invesco has the relationships, investment strategies, product vehicles and client coverage to increase market share Est. Channel AUM and Distribution Proj. CAGR Channel Characteristics Channel (’09-’14)1 and Product Usage Invesco Coverage and Capabili
Slide 32: Invesco has the relationships, strategies, vehicles and client coverage to increase market share
2 Financial intermediary, distribution landscape Invesco has the relationships, investment strategies, product vehicles and client coverage to increase market share Est. Channel AUM and Distribution Proj. CAGR Channel Characteristics Channel (’09-’14)1 and Product Usage Invesco Coverage and Capabili
Slide 33: Our positioning will result in accelerated asset flows
2 Financial intermediary, distribution landscape Our positioning will result in accelerated asset flows KEY DRIVERS: Invesco specific • Deepened relationships with key distributors • Depth of high quality investment capabilities Accelerated Flows • Diverse product offering (e.g., UIT, ETF and altern
Slide 34: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Invesco’s Position 1 Increased demand for US • 70% of Invesco’s US retail assets are in equities and International equities • Strong relative performance for US and international equity capabilities (71% of wi
Slide 35: Invesco US Defined Contribution
3 Growing DC markets Invesco US Defined Contribution A leading investment manager to the DC marketplace with $56.7B in AUM By Plan Type By Product Type $56.7B $3.7 $0.8 Sub-Advised DC Collective Trust Invesco US DC assets $20.6 Mutual Fund Institutional DC1 $35.3 Separate Accounts $31.6 (DC Only) Re
Slide 36: Comprehensive coverage of DC marketplace
3 Growing DC markets Comprehensive coverage of DC marketplace 1 2 Traditional and innovative 3 Expert coverage of DC DC industry thought clients and influencers products & vehicles for leadership and unique client DC plans support resources • Plan Sponsors • Products • DC Legislative Expertise – Ins
Slide 37: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Invesco’s Position 1 Increased demand for US • 70% of Invesco’s US retail assets are in equities and International equities • Strong relative performance for US and international equity capabilities (71% of wi
Slide 38: Invesco has the relationships, strategies, vehicles and client coverage to increase market share
4 Institutional positioning and placement Invesco has the relationships, investment strategies, product vehicles and client coverage to increase market share Est. Channel AUM and Client Proj. CAGR Channel (’08-’14) Channel Characteristics Invesco Coverage and Capabilities Public DB $3.8T • States ha
Slide 39: Invesco has the relationships, strategies, vehicles and client coverage to increase market share
4 Institutional positioning and placement Invesco has the relationships, investment strategies, product vehicles and client coverage to increase market share Est. Channel AUM and Client Proj. CAGR Channel (’08-’14) Channel Characteristics DC $4.1T • Majority of assets are still held in mutual funds,
Slide 40: Plan sponsor indications broadly favor emerging/int'l equities, private equity, and real estate
4 Institutional positioning and placement Plan sponsor indications broadly favor emerging/int’l equities, private equity, and real estate at the detriment of domestic equities and cash Corporate DB Public DB E&F Emerging Mkt Equity +34% +38% +31% Private Equity -2% +41% +38% IG Bonds +30% +4% +3% In
Slide 41: Our alternatives capabilities are performing well and provide opportunity for growth in the US
4 Institutional positioning and placement Our alternatives capabilities are performing well and provide good opportunity for growth in the US Strategies with IVZ AUM Value Proposition demand in US Inst. • Over 25 years experience • US Core Direct RE • On-the-ground research with $25.2B presence in 1
Slide 42: Our non-US investment capabilities are performing well and provide opportunity for growth in the US
4 Institutional positioning and placement Our non-US investment capabilities are performing well and provide good opportunity for growth in the US Strategies with IVZ AUM Value Proposition demand in US Inst. • Invesco International Core Equity is • International Core outperforming its benchmark for
Slide 43: Capturing opportunities created by structural US market shifts
Capturing opportunities created by structural US market shifts Key trends in the US market Invesco’s Position 1 Increased demand for US • 70% of Invesco’s US retail assets are in equities and International equities • Strong relative performance for US and international equity capabilities (71% of wi
Slide 44: Invesco is a leader in ETFs, Closed-end Funds, and Unit Investment Trusts
5 Growing demand for exchanged traded and structured products Invesco is a leader in ETFs, Closed-end Funds, and Unit Investment Trusts ETFs Unit Investment Trusts Closed-end Funds Competitive Profile: Competitive Profile: Competitive Profile: • $44 billion in Invesco • Ranked #2 by AUM • Ranked #5
Slide 45: Winning in the US marketplace
Winning in the US marketplace Well-positioned to grow and succeed in the US • Strong culture focused on delivery of investment excellence • Expanded depth and breadth of investment capabilities across a broad range of asset classes and vehicles to serve the needs of our retail, DC and institutional
Slide 46: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 45
Slide 47: Overview of Invesco's Canadian business – Invesco Trimark
Overview of Invesco’s Canadian business – Invesco Trimark • Top 10 position in the Canadian Retail market, with $25B in AUM, second only to Fidelity in the ranks of the independent asset managers in Canada Market position • Trimark remains the most familiar brand in the Canadian market with a 30- ye
Slide 48: Opportunities for Invesco's Canadian business
Opportunities for Invesco’s Canadian business • The Canadian institutional market at $1 trillion continues to be among the largest in the world (ranked 6th) with strong Canadian growth prospects Institutional • Invesco is well positioned to serve the largest Canadian pension plans given their increa
Slide 49: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 48
Slide 50: Winning in the Asia-Pacific marketplace
Winning in the Asia-Pacific marketplace Invesco is well-positioned to grow and succeed in Asia-Pacific • Industry AUM large and fast growing • Invesco’s presence deep and successful in key growth areas • Acquisition further strengthens our position in Japan • Invesco’s Chinese equity capability well
Slide 51: Asia-Pacific — industry AUM large and fast growing
Asia-Pacific — industry AUM large and fast growing Hong 2009 Indicators Japan Australia China Korea Kong Singapore Taiwan India Markets Industry AUM1 ($ billions) 3,117 1,122 372 292 227 142 107 90 CAGR (2009-2012) 9% 11% 37% 19% 9% 11% 24% 19% Demand Deposits ($ billions) 4,426 294 3,812 63 50 52 3
Slide 52: Invesco's presence deep & successful in key growth areas
Invesco’s presence deep & successful in key growth areas • $45.3 billion in client assets. • 9101 staff in 12 locations across 6 countries. • Blue chip list of institutional clients and SWFs. • 2.7 million retail mutual fund clients in China. Beijing^ Tokyo Shanghai# • First US joint venture (JV) as
Slide 53: Assets under management – sourced from Asia-Pacific clients
Assets under management – sourced from Asia-Pacific clients $45.3 billion1 in client assets as of June 30, 2010 AUM Mix Region $ billions Retail Inst. Strategies % of total assets Greater 11.9 39% 61% Hong Kong/Chinese China JV China ex JV and Asian Equities, 7% Hong Kong MPF products, Offshore Fund
Slide 54: Acquisition further strengthens our position in Japan
Acquisition further strengthens our position in Japan Japanese equity capability Opportunities • Addition of Japan Large Cap Value • Domestic pension market. and Japan Advantage capabilities. • Cross border distribution for retail • Experienced and stable investment investors in Europe and Asia team
Slide 55: Invesco's Chinese equity capability well-positioned to benefit from China's growth
Invesco’s Chinese equity capability well-positioned to benefit from China’s growth Chinese equity capability Opportunities • A pioneer investor in Chinese equities • China is the 2nd largest economy in since 1992. the world. • Integrated investment platform in • Strong economic growth. Hong Kong, Ta
Slide 56: Top retail Chinese equity products by global competitors
Top 10 retail Chinese equity products by global competitors AUM ($ millions) 9,000 AUM (USD’M) Domestic China funds (through JVs) International China funds 8,000 7,000 2,755 6,000 5,000 4,023 972 4,000 297 172 3,000 6,155 3,781 3,694 5,241 4,661 2,000 4,009 3,897 3,124 2,702 2,802 1,000 951 949 0 In
Slide 57: Agenda
Agenda Well-positioned against global trends Winning in the global marketplace • US • Canada • Asia-Pacific • EMEA 56
Slide 58: We have a strong competitive position in UK, Continental Europe and the Middle East
We have a strong competitive position in UK, Continental Europe and the Middle East (EMEA) • $110 billion in sourced assets • 1197 staff in 13 countries, 17 offices • 140 investment professionals • Good fee yield with approaching Stockholm $800m of revenue from EMEA EMEA Distribution strength • Inve
Slide 59: Invesco Perpetual has a leading retail position in the UK
Invesco Perpetual has a leading retail position in the UK 104 fund management companies manage $778.5bn Rank Company AUM ($B) 26% 46% 61% 71% 79% 1 Invesco Perpetual 51.46 2 Fidelity 40.39 3 Legal & General 38.44 4 M&G 37.01 5 Standard Life Trust 33.67 6 Capita Financial 32.85 7 HBOS 32.36 8 Schrode
Slide 60: Our cross-border product range is well placed to take advantage of opportunities in Europe
Our cross-border product range is well placed to take advantage of opportunities in Europe Invesco’s product range is represented in the major asset classes in the cross border industry 1.40% GPR rank within competitors 33/199 20/95 Invesco’s cross-border product range is 1.20% amongst only 7% of fi
Slide 61: Invesco has a strong business in the UK, Continental Europe and the Middle East
Invesco has a strong business in the UK, Continental Europe and the Middle East • With a population of 500 million and the largest GDP and share of world trade, the EU is an increasingly integrated economic powerhouse and a major market for Invesco • At $12tn Europe is second only to the US as a ret
Slide 62: Winning in the global marketplace
Winning in the global marketplace Invesco is capturing opportunities to grow and succeed across the globe • Structural shifts and demographic trends are creating major opportunities in the US asset management industry and across global retail and institutional markets • Invesco's strategic direction