Invesco Ltd · NYSE:IVZ
Invesco — Q3 2007 Earnings Presentation
27 slides from Invesco's earnings presentation, Nov 8, 2007
Slide 1: 2007 Third Quarter Results
2007 Third Quarter Results Presentation by Martin Flanagan, Chief Executive Officer Loren Starr, Chief Financial Officer Russell Kamp, Global Structured Products Karen Dunn Kelley, Worldwide Fixed Income November 8, 2007
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include statements that constitute “forward-looking statements” under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and
Slide 3: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 3
Slide 4: Summary of Third Quarter 2007 Results
Summary of Third Quarter 2007 Results Sept. 30 AUM of $507.2 billion, up $15.6 billion since the end of 2Q07 AUM 3Q07 average AUM was $494.7 billion, up $8.6 billion since 2Q07 Long-term gross sales continue to set new 5-year records Quarterly Flows Net long-term flows were positive $0.2 bil
Slide 5: Quarterly Flows
Quarterly Flows Gross sales increased despite volatile markets in the 3rd quarter Net flows were positive $0.2 billion Excluding Stable Value, net flows were positive $5.7 billion Quarterly Long-Term Flows ($ billions) Net Flows Excluding Stable Value* ($ billions) Gross sales Gross redemption
Slide 6: Institutional Money Market Growth
Institutional Money Market Growth Institutional money market assets increased $5.7 billion to $67.3 billion. Strong growth within high quality money market capability Growth in Institutional Money Market ($ billions) Ending Assets Net Flows 70 14 67.3 12 65 10 62.1 61.6 60.6 8 59.8 5.7 60 57.5 4
Slide 7: Distribution Channels – Quarterly Flows
Distribution Channels – Quarterly Flows Retail gross sales continue at a higher level than 2006 with YTD gross sales 45% higher than 2006 YTD levels Institutional net flows were up for the quarter driven by strength in alternatives Private Wealth flows were flat during the quarter Retail quart
Slide 8: Delivering On Investment Excellence
Delivering On Investment Excellence 30 September 2007 Invesco Asset Weighted 3 years Performance Breakdown* Includes rated AUM of $371.4bn ($ billions) Above Retail 201.3 Benchmark 1Qtl and 2Qtl 1st Quartile 74.3 72% 2nd Quartile 45.3 3rd Quartile 40.1 4th Quartile 41.6 Institutional 170.1 Below Abo
Slide 9: Delivering On Investment Excellence
Delivering On Investment Excellence Ensuring well-defined, repeatable and disciplined investment processes that meet client expectations Retail Results % of AUM in Top Half of Peer Group As of 11/1/07*: 1yr 3yr 5yr 1yr: 53% 3yr: 62% Sep-07 Jun-07 Sep-06 Sep-07 Jun-07 Sep-06 Sep-07 Jun-07 Sep-06 5yr:
Slide 10: US Retail Investment Performance Detail
US Retail Investment Performance Detail Percentage of 4 and 5 Morningstar Load-Waived Rated Funds (Equal Weighted) Increasing client focus is on Growth, International/Global and Asset Allocation investment disciplines AIM has a strong lineup of products within these disciplines to meet client de
Slide 11: Patience is critical for long term results
Patience is critical for long term results Trimark has a well understood, value discipline with results that were exemplified after the technology bubble Maintaining strong, distinctive investment disciplines is a fundamental component of Invesco’s strategy Trimark’s experience: 1, 2, 3, 5 year
Slide 12: Global Structured Products Group
Global Structured Products Group Bringing structure to unstructured financial markets AS OF JUNE 30, 2007 Who We Are… Strengthening Our Competitive Position… We manage over $34 billion in structured products Weathered August’s liquidity storm well given limited globally with 55 team members port
Slide 13: Leveraging the Collective Strengths of Invesco Worldwide Fixed Income
Leveraging the Collective Strengths of Invesco Worldwide Fixed Income AS OF JUNE 30, 2007 Our Investment Capabilities… Our Global Team… Our Fixed Income teams consist of over 120 Research investment professionals, with a combined global Sector Specialists team of over 190 Portfolio Construct
Slide 14: Worldwide Fixed Income Investments
Worldwide Fixed Income Investments Pr le od op ucts Pe Research, Alpha Source, & Investment Decisions For Illustrative Purposes Only. 14
Slide 15: Global Process Management
Worldwide Fixed Income – Investment Resources AS OF AUGUST 15, 2007 Head of WWFI: Karen Dunn Kelley Louisville Houston New York London Louisville Products Houston Products New York Products London/Global Products US Stable Value Global Cash Global Bank Loans Global Bonds US Active Institutional Glob
Slide 16: Worldwide Fixed Income represents over US $160 billion in AUM
Our Worldwide Fixed Income business represents over US $160 billion in AUM or approximately one-third of IVZ % of total WWFI assets under management, as of 9/30/07 8% 100% 25% 25% 42% Stable Financial TOTAL Money Market Global Fixed Value Income Structures 16
Slide 17: Listing Update
Listing Update Move to a single primary regulator (SEC) and single accounting standard (US GAAP) Proxies were sent out on October 22 – the final votes will be tallied on November 14 Analyst Day at New York Stock Exchange on November 15 Intend to begin trading on NYSE December 4 17
Slide 18: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 18
Slide 19: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 3Q07 2Q07 % Change 1Q07 4Q06 3Q06 Beginning Assets $491.6 $471.2 4.3% $462.6 $440.6 $413.8 Inflows 31.1 27.5 13.1% 30.4 22.9 16.3 Outflows (30.9) (26.8) 15.3% (29.7) (27.4) (17.0) Net flows 0.2 0.7 (71.4)% 0.7 (4.5) (0.7) Net flows in Money Market Fun
Slide 20: Operating Results - Quarterly
Operating Results - Quarterly 3Q07 2Q07 % Change* 1Q07 4Q06 3Q06 Management Fees 816 810 0.8% 737 722 642 Service and Distribution 150 148 1.6% 143 136 130 Other 26 28 (7.8)% 24 21 19 Total Revenues 993 986 0.6% 905 879 791 Third-party distribution, service and advisory fees 272 (264) 3.2% (234) (22
Slide 21: Questions & Answers
Questions & Answers Martin Flanagan, Chief Executive Officer Loren Starr, Chief Financial Officer Russell Kamp, Global Structured Products Karen Dunn Kelley, Worldwide Fixed Income
Slide 22: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 22
Slide 23: We Are Diversified As A Firm
We Are Diversified As A Firm Delivering a diverse set of solutions to meet a broad set of global investment needs By Client Domicile By Channel By Asset Class High Net Worth Balanced Canada 3.5% 8.3% 9.7% Money Market 14.0% U.K. 17.3% Retail U.S. Equity Fixed 51.7% Institutional 58.4% 49.8% Income 4
Slide 24: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM March 31, 2007 $471.2 $238.4 $216.1 $16.7 Inflows 27.5 20.8 5.3 1.4 Outflows (26.8) (16.4) (9.0) (1.4) Net flows 0.7 4.4 (3.7) 0.0 Net flows in Money Market Funds 1.8 (0.1) 1.9 0.0 and Other Market Gains/Reinvestment 12
Slide 25: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class Fixed Money Stable ($ billions) Total Equity Income Balanced Market Value Alternative March 31, 2007 $471.2 $224.8 $42.9 $38.2 $63.2 $47.4 $54.7 Inflows 27.5 19.0 2.4 2.7 0.2 0.6 2.6 Outflows (26.8) (14.9) (3.1) (3.0) (0.6) (2.4) (2.8) Net flows 0.7 4.1 (0.7)
Slide 26: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile ($ billions) Total U.S. Canada U.K. Europe Asia March 31, 2007 (a) $471.2 $285.4 $45.2 $78.0 $36.1 $26.5 Inflows 27.5 10.1 1.8 6.1 4.6 4.9 Outflows (26.8) (14.3) (1.5) (2.2) (5.4) (3.4) Net flows 0.7 (4.2) 0.3 3.9 (0.8) 1.5 Net flows in Money Market 1.8 1
Slide 27: Additional Income and Expense Information
Additional Income and Expense Information ($ millions) 3Q07 2Q07 3Q06 Operating items: Management revenues: - Performance fees 4.0 34.4 10.4 Compensation: - Share based payment cumulative (41.1) adjustment for change in vesting assumptions Property and office: - Onerous lease provision (7.4) General