Invesco Ltd · NYSE:IVZ
Invesco — Q2 2024 Earnings Presentation
20 slides from Invesco's earnings presentation, Jul 23, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results Andrew Schlossberg President and Chief Executive Officer Allison Dukes Chief Financial Officer July 23, 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: Second quarter 2024 business highlights
Second quarter 2024 business highlights Investment Capabilities Investment Capability* Ending AUM Net LT Flows Highlights Another strong quarter with continued market share gains. Top flowing fund was QQQM with ETFs and Index1 $415.1 $12.8 $3.9 billion in net inflows; broadening positive flows in qu
Slide 5: Net Long-Term Flows: Solid growth with ample opportunity
Solid growth with ample opportunity 1 Q2'23 Q1'24 Q2'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) Geography Investment Approach Channel 72% 72% 72% 14% 14% 14% 13% 14% 14% 66% 60% 58% 34% 40% 42% 63% 67% 68% 37% 33% 32% $1,200 $1,236 $1,113 $1,017 $996 $1,003 $1,117 $1,162 $969 AU
Slide 6: Investment Performance
Investment Performance Fundamental Equities Fundamental Fixed Income 27% 39% 47% 92% 29% 26% 23% 61% 50% 49% 52% 44% 39% 44% 23% 23% 26% 20% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr Multi-Asset Overall 10% 24% 26% 23% 83% 71% 70% 76% 2% 42% 65% 50% 51% 45% 39% 42% 30% 11% 1-Yr 3-Yr 5-Yr 1-Yr 3-Yr 5-Yr AUM abov
Slide 7: Second quarter 2024 financial highlights
Second quarter 2024 financial highlights • Net long-term inflows of $16.7 billion or 5.6% annualized organic growth ‒ Ending AUM grew 12% year-over-year to a record high of $1.7 trillion • Generated positive operating leverage of nearly 400 basis points with net revenues up over 3% and operating exp
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 2Q’24 NRY Drivers Trends10 Post OFI Current Trends Acquisition $1,669.3 $1,613.0 25.6 bps 26.1 bps 4% Multi-Asset / Other1 38–42 bps • Secular shifts in client
Slide 9: Revenues and expenses
Revenues and expenses (in millions) Net Revenues Adjusted Operating Expenses -0.5% -4.9% $19 ($5) $789 ($24) $1 ($23) Q2’23 vs Q2’24 $3 ($3) $4 ($16) $1,091 $1,086 $750 Q2 2023: Includes $27 million related to exec. retirements and org. change expenses $5 million decrease $39 million decrease Q2 202
Slide 10: Capital management
Capital management (in millions, except ratio information) Capital Returned to Shareholders Leverage Ratio** $301 $150 3.33x 3.50x 3.48x 3.36x $149 $149 $149 $152 3.01x $59 $59 $59 $59 $59 $92 $90 $90 $90 $93 0.66x 0.69x 0.69x 0.54x 0.28x Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 C
Slide 11: Appendix
Appendix 4 Invesco 11
Slide 12: Diversification
Diversification By Client Domicile By Channel By Investment Capability 3% 7% 24% 8% 14% 10% 72% 68% 32% 14% 17% 16% 16% 1-Yr 1-Yr 1-Yr (billions) Change (billions) Change (billions) Change Americas $1,235.8 11.1 % Retail $1,161.5 19.9 % ETFs & IS $415.1 30.7 % Asia Pac $245.4 10.6 % Institutional $5
Slide 13: Net Long-Term Flows: Solid growth with ample opportunity
Solid growth with ample opportunity 1 Q2'23 Q1'24 Q2'24 % of Total Firm AUM Annualized LT Org. Grow th (in billions) Investment Capability 21% 24% 24% 17% 16% 16% 17% 16% 16% 8% 8% 8% 7% 6% 7% 4% 4% 3% 13% 10% 10% 13% 16% 17% $415 $398 $318 $274 $269 $287 $264 $272 $273 $258 $259 AUM $198 $200 $165
Slide 14: Key Market Indices
Key Market Indices % Change % Change Spot 6/30/24 vs. Average Q2 2024 vs. 6/30/2023 3/31/2024 6/30/2024 6/30/2023 3/31/2024 Q2 2023 Q1 2024 Q 2 2024 Q2 2023 Q1 2024 Equity Indices Equity Indices Domestic S&P 500 (SPX) 4,450 5,254 5,460 23% 4% 4,205 4,989 5,247 25% 5% S&P 500 Equal-Weight (SPW) 6,082
Slide 15: US GAAP and Non-GAAP operating results Q2-24 vs. Q1-24
US GAAP and Non-GAAP operating results Q2-24 vs. Q1-24 US GAAP Basis Non-GAAP Basis (in millions) Q2-24 Q1-24 % Change (1) (in millions) Q2-24 Q1-24 % Change (1) Investment management fees $1,065.8 $1,048.7 1.6% Investment management fees $1,186.7 $1,160.1 2.3% Service and distribution fees 361.6 37
Slide 16: 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 17: Reconciliation of US GAAP results to Non-GAAP results, Three months ended March 31, 2024
Reconciliation of US GAAP results to Non-GAAP results Three months ended March 31, 2024 Please refer to pages 7-10 in the 1Q 2024 earnings press release for a description of the adjustments 3rd party distribution, service Market appreciation / Consolidation of and advisory Amortization of depreciati
Slide 18: Reconciliation of US GAAP results to Non-GAAP results
Reconciliation of US GAAP results to Non-GAAP results (in millions) Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3’23 Q4’23 Q1’24 Q2’24 Operating revenues $1,530.4 $1,445.7 $1,443.4 $1,418.2 $1,442.8 $1,442.0 $1,413.4 $1,475.3 $1,483.3 Non-GAAP adjustments (356.5) (335.1) (335.3) (342.3) (352.1) (343.8) (367.5) (
Slide 19: Footnote disclosures
Footnote disclosures Footnotes for Slide 4, Second 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