invesco fourth-quarter 2011 results › 954047929 › files › doc_news › ... · summary of...

Invesco fourth-quarter 2011 results

Martin L. FlanaganPresident and Chief Executive Officer

Loren M. StarrChief Financial Officer

January 26, 2012

1

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 expenditures, industry or market conditions, AUM, acquisitions, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission.

You may obtain these reports from the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

2

Discussion topics

Fourth-quarter overview

Investment performance

Financial results

Questions

Appendix

3

Continued positive momentum in a volatile market environment

Maintained strong, long-term investment performance across the enterprise

Continued positive trend of net long-term inflows across all channels

Reduced long-term debt by $105 million during the quarter

Repurchased 5.3 million shares for $103.4 million during the fourth quarter; shares repurchases during 2011 totaled $436.5 million


4

Continued to deliver strong, long-term investment performance for our clients

Strong investment performance drove meaningful organic growth across the firm

Net inflows of $24.5 billion

Further enhanced our ability to meet client needs by sharpening product offerings and delivering capabilities globally to meet investor demand

Focus on superior client engagement enhanced our ability to execute on sales efforts much more effectively across the globe

Further strengthened our global operating platform to achieve greater efficiencies and cost effectiveness while supporting efforts to deliver investment capabilities to clients around the world

Significantly reinvested in talent through continued internal development and a number of strategic new hires

Achieve strong investment

performance

Key achievements against our strategic priorities during 2011

Deliver our investment capabilities anywhere

in the world to meet clients needs

Harness the power of our global operating

platform

Perpetuate a high-performance

organization

5

Summary of fourth-quarter 2011 results

Assets under management

December 31, 2011 AUM of $625.3 billion versus $598.4 billion at September 30, 2011

Average AUM was $621.7 billion versus $632.7 billion for the third quarter

Flows

Overall operating results*

Capital management

Total net inflows of $6.0 billion Net long-term inflows of $5.6 billion Money market net flows of $0.4 billion

Adjusted operating income was $256 million unchanged versus the third quarter

Adjusted operating margin was 35.8% in the quarter versus 36.2% in the third quarter

Adjusted diluted EPS for the quarter was $0.42 unchanged versus the prior quarter

Fourth quarter dividend of 12.25 cents per share Corporate cash balance of $727 million versus $757 million at

September 30, 2011 Repurchased $103 million in common stock (5.3 million shares)

and repaid $105 million on the credit facility

* Non-GAAP financial measures - See Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted diluted EPS) to the most directly comparable U.S. GAAP financial measure.

6

Discussion topics



Financial results

Questions

Appendix

This image cannot currently be displayed.

Investment performance – overviewAggregate performance analysis – asset weighted

29%

71%

44%

56%

1-Year 3-Year

% Assets top half of peer group % Assets bottom half of peer group

Percent of actively managed assets in top half of peer group*

80%

20%

5-Year

7

*Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision.

Data as of 12/31/2011. Includes AUM of $370.6 billion (59% of total IVZ) for 1 year, $364 billion (58% of total IVZ) for three year, and $361.7 billion (58% of total IVZ) for 5 year. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

8

1Q10 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11

Gross sales

Gross redemptionsNet long-term sales

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10* 3Q10 4Q10*1Q11 2Q11 3Q11 4Q11

Continued positive momentum in long-term flows during the fourth quarter – the sixth consecutive quarter of positive long-term flows

Quarterly flows – total flows

Gross sales

Gross redemptions

Net long-term sales

Gross sales

Gross redemptions

Net long-term sales

Total AUM AUM ex-ETF/UIT/Passive ETF/UIT/Passive AUM

Quarterly long-term flows ($ billions)

* 2Q10 and 4Q10 exclude the impact of the previously announced passive outflow. 2Q10: $15.8 billion excluded from gross sales 4Q10: $18.6 billion excluded from gross redemptions

9

(a) Retail quarterly flows include retail products in the U.S., Canada, U.K., Europe, Asia and our offshore product line.(b) Institutional quarterly flows include our institutional business in the U.S., Continental Europe and Asia and exclude institutional money market.(c) PWM quarterly flows include our high-net-worth business in the U.S.

Gross sales

Gross redemptions

Net long-term sales

Continued net inflows across all channels

Quarterly flows – by channel

Gross sales

Gross redemptions

Net long-term sales

Gross sales

Gross redemptions

Net long-term sales

Quarterly long-term flows ($ billions)

Retail(a) Institutional(b) Private Wealth Management(c)

1Q10 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q111Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

* 2Q10 and 4Q10 exclude the impact of the previously announced passive outflow. 2Q10: $15.8 billion excluded from gross sales 4Q10: $18.6 billion excluded from gross redemptions

US Retail redemption rates continued to outperform the industry

Invesco US Retail excludes PowerShares QQQ. Industry redemption rates includes proprietary, non-proprietary, direct, institutional, VA and ETFs and reflects Q4 2011 through November 30, 2011

10

+25%

+29%

+36%

(27%)+9%

IVZIndustry

Percentage above the bars is change in gross sales from prior quarter

($, billions)

Net sales

(15%)

11

Discussion topics



Financial results

Questions

Appendix

Total assets under management – 4Q11 vs. 3Q11

($ billions) 4Q-11 3Q-11 % Change

Beginning Assets $598.4 $653.7 (8.5)%

Long-Term Inflows 41.1 45.9 (10.5)%

Long-Term Outflows (35.5) (42.6) (16.7)%

Long-Term Net flows 5.6 3.3 69.7%

Net flows in Inst. Money Market Funds 0.4 (1.1) N/A

Market Gains and Losses/Reinvestment 20.8 (52.2) N/A

Acquisitions/(Dispositions) - - N/A

Foreign Currency Translation 0.1 (5.3) N/A

Ending Assets $625.3 $598.4 4.5%

Ending Long-Term AUM $555.9 $529.3 5.0%

Average Long-Term AUM $552.1 $564.3 (2.2)%

Average Institutional Money Market AUM $69.6 $68.4 1.8%

Average AUM $621.7 $632.7 (1.7)%

Net Revenue Yield (annualized)* 46.1bps 44.6bps

Net Revenue Yield Before Performance Fees (annualized)* 44.6bps 44.5bps

* Non-GAAP financial measure - See the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted diluted EPS) to the most directly comparable U.S. GAAP financial measure.

12

Non-GAAP operating results – 4Q11 vs. 3Q11($ millions) 4Q-11 3Q-11 % ChangeAdjusted Revenues

Investment Management Fees 771 804 (4.1)%Service and Distribution Fees 181 189 (4.2)%Performance Fees 24 3 700.0%Other 45 27 68.2%Third-Party Distribution, Service and Advisory Expenses (304) (317) (4.0)%

Adjusted Net Revenues 717 706 1.5%Adjusted Operating Expenses

Employee Compensation 312 306 2.0%Marketing 22 24 (9.4)%Property, Office and Technology 62 63 (1.4)%General and Administrative 64 57 12.8%

Total Adjusted Operating Expenses 461 450 2.2%Adjusted Operating Income 256 256 0.2%Adjusted Other Income/(Expense)

Equity in Earnings of Unconsolidated Affiliates (1) 3 N/AInterest and Dividend Income 6 5 37.8%Interest Expense (14) (15) (6.5)%Other Gains and Losses, net - - N/A

Adjusted Income Before Income Taxes 247 248 (0.5)%Effective Tax Rate 22.9% 22.5%Adjusted Net Income attributed to common shareholders 191 192 (0.9)%Adjusted diluted EPS $0.42 $0.42 -Adjusted Operating Margin 35.8% 36.2%

Average AUM ($ billions) 621.7 632.7 (1.7)%Headcount 6,162 6,192 (0.5)%

Non-GAAP financial measures - See the Appendix to this presentation for a reconciliation of net revenues, adjusted operating income (and by calculation adjusted operating margin), and adjusted net income (and by calculation adjusted diluted EPS) to the most directly comparable U.S. GAAP financial measure.13

14


Continued positive momentum in a volatile market environment

Maintained strong, long-term investment performance across the enterprise

Continued positive trend of net long-term inflows across all channels

Reduced long-term debt $105 million during the quarter

Repurchased 5.3 million shares for $103.4 million during the fourth quarter; shares repurchases during 2011 totaled $436.5 million

15

Discussion topics



Financial results

Questions

Appendix

16

Discussion topics



Financial results

Questions

Appendix

Commitment to investment excellence

Source: Invesco. All data as of December 31, 2011. The listed centers do not all provide products or services that are available in all jurisdictions, nor are their products and services available on all platforms. All entities listed are wholly owned, indirect subsidiaries of Invesco Ltd., except Invesco Great Wall in Shenzhen, which is a joint venture between Invesco and Great Wall Securities, and the Huaneng Invesco WLR Investment Consulting Company Ltd. in Beijing, which is a joint venture between Huaneng Capital Services and WL Ross & Co. Please consult your Invesco representative for more information.

17

This image cannot currently be displayed.

Investment performance (5-year)By investment objective (actively managed assets)*Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total ranked AUM of $361.7 billion)

% assets top half of peer group

% assets bottom half of peer group

U.S. Core (7%) U.S. Growth (6%) U.S. Value (8%) Sector (2%)

U.K. (10%) Canadian (1%) Asian (5%) European (2%)

Equities

19%

81%

31%

69%

4%96%

37%

63%

7%93%

64%

36%

19%

81%

10%

90%

* AUM measured in the one, three, and five year quartile rankings represents 57%, 56%, and 55% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 70%, 68, and 67% of total Invesco AUM, respectively, as of 9/30/11. Percentages inside the bars represent the % AUM of each investment objective in which component funds’ performance rankings are in the first or second quartile of their respective third party peer group. Percentages above the column charts represent the % AUM of each investment objective as a ratio of all investment objectives. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

18

Investment performance (5-year)By investment objective (actively managed assets)*Percentages in parentheses represent %AUM of each investment objective as a ratio of all objectives (Total ranked AUM of $361.7 billion)

Global (4%)Global ex-U.S. andemerging markets (6%) Balanced (8%)

Money market (19%) U.S. fixed income (6%) Global fixed income (5%)

Equities Other

Fixed incomeStable value (6%)

Alternatives (6%)

% assets top half of peer group

% assets bottom half of peer group

77%23%

22%

78%

23%

77%

59%41%

6%94%

29%

71%

20%

80%100%

* AUM measured in the one, three, and five year quartile rankings represents 57%, 56%, and 55% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 70%, 68, and 67% of total Invesco AUM, respectively, as of 9/30/11. Percentages inside the bars represent the % AUM of each investment objective in which component funds’ performance rankings are in the first or second quartile of their respective third party peer group. Percentages above the column charts represent the % AUM of each investment objective as a ratio of all investment objectives. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

19

93%

64%

93%

1-yr 3-yr 5-yr

Investment performanceBy investment objective (actively managed assets)*

39%

21%

83%

1-yr 3-yr 5-yr

64%

3%18%

21%

28%

63%

1-yr 3-yr 5-yr

28%33%28%

1-yr 3-yr 5-yr

67%

9%

2%

19%

2%

1-yr 3-yr 5-yr

83%

32%

51%

6%

60%

45%

1-yr 3-yr 5-yr

26%

85%92%

1-yr 3-yr 5-yr

29%

49%34%

29%1%

16%

1-yr 3-yr 5-yr

7%

96%100%

1-yr 3-yr 5-yr

100%

% of AUMabovebenchmark

1st quartile

2nd quartile

U.S. Core U.S. Growth U.S. Value Sector

U.K.

100% 100% 100%

Canadian Asian European

Equities

96%

8%

100%

1-yr 3-yr 5-yr2%2%

91%98%

1-yr 3-yr 5-yr

4%18%

48%

1-yr 3-yr 5-yr

31% 32%

18%4%

48%

1-yr 3-yr 5-yr

100%

69%

87%

29%

1-yr 3-yr 5-yr

15%29% 28%

18%

13%

53%

1-yr 3-yr 5-yr

100%

100%

21%6%

58%

35%52%

32%

1-yr 3-yr 5-yr

100%

* AUM measured in the five year quartile rankings represents 58% of total Invesco AUM, respectively, and AUM measured versus benchmark on a five year basis represents 67% of total Invesco AUM, respectively, as of 12/31/11. Percentages inside the bars represent the % AUM of each investment objective in which component funds’ performance rankings are in the first or second quartile of their respective third party peer group. Percentages above the column charts represent the % AUM of each investment objective as a ratio of all investment objectives. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

Investment performanceBy investment objective (actively managed assets)*

100%

GlobalGlobal ex-U.S. andEmerging markets Alternatives

% of AUMabovebenchmark

1st quartile

2nd quartile

Money market

100% 100%

U.S. fixed income Global fixed income

Equities

100% 100% 100%

Other

Fixed income

70%

47%

71%

1-yr 3-yr 5-yr

20% 19% 17%

60%

28%

6%

1-yr 3-yr 5-yr

80%87%

98%

1-yr 3-yr 5-yr

3% 2%

74% 76%74%

1-yr 3-yr 5-yr

70%

50%

82%

1-yr 3-yr 5-yr

13% 8%

39%19%

6%

2%

1-yr 3-yr 5-yr

37%

62%

72%

1-yr 3-yr 5-yr4%

18%10%

92%75% 84%

1-yr 3-yr 5-yr

62%

79%

46%

1-yr 3-yr 5-yr

41% 45%59%

24% 18%

12%

1-yr 3-yr 5-yr

27%

92%

66%

1-yr 3-yr 5-yr

10%

53%62%

8%

24%18%

1-yr 3-yr 5-yr* AUM measured in the five year quartile rankings represents 58% of total Invesco AUM, respectively, and AUM measured versus benchmark on a five year basis represents 67% of total Invesco AUM, respectively, as of 12/31/11. Percentages inside the bars represent the % AUM of each investment objective in which component funds’ performance rankings are in the first or second quartile of their respective third party peer group. Percentages above the column charts represent the % AUM of each investment objective as a ratio of all investment objectives. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

Balanced100%

15%

93%

82%

1-yr 3-yr 5-yr

66%

2%

64%

5%

27%

13%

1-yr 3-yr 5-yr

Stable value100%

100% 100% 100%

1-yr 3-yr 5-yr

66%

100%

100%

34%

1-yr 3-yr 5-yr

22

As of December 31, 2011

$430.0$23.4$89.8$32.0$50.1

$625.3Total

U.S.CanadaU.K.Europe Asia

3.5%(16.1)%(2.5)%(9.3)%

9.4%

1.4%

1-Yr Change($ billions)

$373.9$233.5$17.9

$625.3Total

RetailInstitutionalPWM

(1.1)%5.5%5.3%

1.4%


$271.0$44.6$74.0

$149.0$86.7

Total

Equity BalancedMoney MarketFixed IncomeAlternative

(7.8)% 2.5%8.3%

12.9%10.2%

1.4%


$625.3

We are diversified as a firmDelivering a diverse set of solutions to meet client needs

By client domicile By channel By asset class

23

Non-GAAP operating results – quarterly

($ millions) 4Q-11 3Q-11 % Change* 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 1Q-10

Investment Management Fees 771 804 (4.1)% 844 816 799 749 653 618

Service and Distribution Fees 181 189 (4.2)% 206 199 202 192 139 113

Performance Fees 24 3 700.0% 8 4 19 3 4 1

Other 45 27 68.2% 32 33 35 33 16 11

Third-party distribution, service and advisory expense (304) (317) (4.0)% (339) (327) (318) (294) (241) (211)

Total Operating Revenues 717 706 1.5% 751 724 736 682 571 532

Employee Compensation 312 306 2.0% 311 300 305 298 260 234

Marketing 22 24 (9.4)% 27 26 26 20 18 16

Property, Office and Technology 62 63 (1.4)% 63 65 66 64 56 54

General and Administrative 64 57 12.8% 66 62 58 54 48 45

Adjusted Operating Expenses 461 450 2.2% 466 452 456 436 383 349

Adjusted Operating Income 256 256 0.2% 285 272 280 246 189 183

Equity in Earnings of Unconsolidated Affiliates (1) 3 N/A 5 2 7 5 4 1

Interest and Dividend Income 6 5 37.8% 3 3 3 2 2 2

Interest Expense (14) (15) (6.5)% (16) (16) (16) (16) (14) (12)

Other Gains and Losses, net - - N/A 3 4 6 4 (4) (5)

Adjusted Income Before Income Taxes 247 248 (0.5)% 280 265 280 241 178 169

Effective Tax Rate** 22.9% 22.5% 26.0% 27.6% 26.0% 23.1% 29.3% 28.7%

Adjusted Net Income Attributable to Common Shareholders

191 192 (0.9)% 207 192 209 185 125 120

Adjusted Diluted EPS $0.42 $0.42 - $0.44 $0.41 $0.44 $0.39 $0.27 $0.27

* % change based on unrounded figures** Effective tax rate = Adjusted Tax Expense / (Adjusted income before taxes + (gains)/losses attributable to non-controlling interests in consolidated

entities, net) See Reconciliation of US GAAP results to non-GAAP results in this appendix

24

US GAAP operating results – quarterly

($ millions) 4Q-11 3Q-11 % Change* 2Q-11 1Q-11 4Q10 3Q-10 2Q-10 1Q-10

Investment Management Fees 748 780 (4.1)% 819 792 774 726 628 594

Service and Distribution Fees 181 189 (4.2)% 211 199 202 192 139 113

Performance Fees 24 3 819.2% 8 4 19 3 4 1

Other 45 27 67.3% 32 33 34 33 16 12

Total Operating Revenues 997 998 (0.1)% 1,070 1,027 1,029 953 787 719

Employee Compensation 317 306 3.6% 318 306 313 304 261 238

Third-Party Distribution, Service and Advisory 302 314 (4.0)% 342 325 316 292 238 208

Marketing 21 13 61.1% 26 26 26 20 18 16

Property, Office and Technology 66 63 5.3% 62 64 66 64 56 54

General and Administrative 75 70 7.2% 78 74 84 65 64 50

Transaction & Integration 6 5 17.0% 11 8 27 27 79 17

Total Operating Expenses 786 770 2.0% 837 802 830 770 716 582

Operating Income 212 228 (7.1)% 233 226 199 183 71 137

Equity in Earnings of Unconsolidated Affiliates 5 8 (39.5)% 11 7 13 11 10 6

Interest and Dividend Income 3 4 (28.9)% 2 2 4 3 2 2

Interest Income of Consolidated Investment Products 74 80 (7.5)% 80 74 65 70 53 53

Gains and (Losses) of Consolidated Investment Products, net

104 (93) N/A (65) (86) (28) (148) 187 103

Interest Expense (14) (15) (6.5)% (16) (16) (16) (16) (14) (12)

Interest Expense of Consolidated Investment Products

(52) (49) 6.4% (47) (40) (37) (36) (26) (21)

Other Gains and Losses, net 55 (20) N/A 6 8 12 15 (9) (2)

Income Before Income Taxes 386 143 170.8% 205 175 212 82 275 265

Effective Tax Rate** 27.3% 26.2% 29.2% 29.9% 24.1% 26.1% 47.4% 34.5%

(Gains)/Losses Attributable to Noncontrolling Interests in Consolidated Entities, net

(108) 84 N/A 54 78 19 127 (197) (119)

Net Income Attributable to Common Shareholders 202 167 21.2% 183 178 175 155 41 95

EPS Diluted $0.44 $0.36 22.2% $0.39 $0.38 $0.37 $0.32 $0.09 $0.21

* % change based on unrounded figures** Effective tax rate = Tax Expense / (Income before income taxes+ (gains)/losses attributable to noncontrolling interests in consolidated entities, net)

25

Total assets under management - quarterly($ billions) 4Q-11 3Q-11 % Change 2Q-11 1Q-11 4Q-10

Beginning Assets $598.4 $653.7 (8.5)% $641.9 $616.5 $604.5

Long-Term Inflows 41.1 45.9 (10.5)% 42.7 48.0 40.4

Long-Term Outflows (35.5) (42.6) (16.7)% (38.9) (41.4) (57.4)

Long-Term Net flows 5.6 3.3 69.7% 3.8 6.6 (17.0)

Net flows in Inst. Money Market Funds 0.4 (1.1) N/A 3.5 2.6 (1.6)

Market Gains and Losses/Reinvestment 20.8 (52.2) N/A 3.2 12.9 24.2

Net Acquisitions/(Dispositions) - - N/A - - 5.0

Foreign Currency Translation 0.1 (5.3) N/A 1.3 3.3 1.4

Ending Assets $625.3 $598.4 4.5% $653.7 $641.9 $616.5

Ending Long-Term AUM $555.9 $529.3 5.0% 583.3 575.0 552.3

Average Long-Term AUM 552.1 564.3 (2.2)% 583.0 564.4 550.9

Average Institutional Money Market AUM 69.6 68.4 1.8% 69.8 65.8 65.1

Average AUM $621.7 $632.7 (1.7)% $652.8 $630.2 $616.0

Gross Revenue Yield (annualized)* 64.5bps 63.4bps 65.9bps 65.6bps 67.2bps

Gross Revenue Yield Less Performance Fees (annualized)* 62.9bps 63.2bps 65.4bps 65.3bps 66.0bps

Net Revenue Yield (annualized)** 46.1bps 44.6bps 46.0bps 46.0bps 47.8bps

Net Revenue Yield Less Performance Fees

(annualized)**44.6bps 44.5bps 45.6bps 45.7bps 46.6bps

* Gross revenue yield on AUM is equal to total operating revenues divided by average AUM, excluding JV AUM. Average AUM for 4Q11, for our joint ventures in China were $3.1bn (3Q11:$3.3bn ;2Q11:$3.5bn;1Q11:$3.5bn;4Q10:$3.6bn;3Q10:$3.4bn)

**Net Revenue Yield on AUM is equal to net revenues divided by average AUM including JV AUM. Average AUM for 4Q11, for our JV in China were $3.1bn (3Q11:$3.3bn ;2Q11:$3.5bn;1Q11:$3.5bn;4Q10:$3.6bn;3Q10:$3.4bn)

Total assets under management – by asset class

September 30, 2011 $598.4 $253.2 $146.7 $41.5 $73.6 $83.4

Long-Term Inflows 41.1 22.6 6.4 3.3 0.6 8.2

Long-Term Outflows (35.5) (21.8) (5.4) (1.7) (0.6) (6.0)

Long-Term Net flows 5.6 0.8 1.0 1.6 - 2.2

Net flows in Inst. Money Market Fund

0.4 - - - 0.4 -

Market Gains and Losses/Reinvestment

20.8 17.0 1.3 1.4 - 1.1

Foreign Currency Translation 0.1 - - 0.1 - -

December 31, 2011 $625.3 $271.0 $149.0 $44.6 $74.0 $86.7

($ billions)Total Equity

Fixed

Income Balanced

Money

Market Alternative

June 30, 2011 $653.7 $301.9 $145.8 $44.5 $74.4 $87.1



Long-Term Net flows 3.3 (3.2) 2.6 1.2 0.4 2.3


(1.1) - - - (1.1) -


(52.2) (42.3) (1.2) (3.1) - (5.6)

Foreign Currency Translation (5.3) (3.2) (0.5) (1.1) (0.1) (0.4)

26

Total assets under management – by asset class


Fixed

Income Balanced

Money

Market Alternative

December 31, 2010 $616.5 $294.0 $132.0 $43.5 $68.3 $78.7



Long-Term Net flows 6.6 (2.8) 6.6 (0.3) - 3.1


2.6 - - - 2.6 -


12.9 9.7 0.7 0.9 0.1 1.5

Foreign Currency Translation 3.3 2.1 0.4 0.6 - 0.2

March 31, 2011 $641.9 $303.0 $139.7 $44.7 $71.0 $83.5



Long-Term Net flows 3.8 (2.6) 3.5 0.5 (0.2) 2.6


3.5 - - - 3.5 -


3.2 0.8 2.4 (0.8) 0.1 0.7

Foreign Currency Translation 1.3 0.7 0.2 0.1 - 0.3

June 30, 2011 $653.7 $301.9 $145.8 $44.5 $74.4 $87.1

27

Total assets under management – by channel

($ billions) Total Retail Institutional PWM

June 30, 2011 $653.7 $401.7 $234.5 $17.5

Long-Term Inflows 45.9 35.6 9.5 0.8

Long-Term Outflows (42.6) (34.6) (7.6) (0.4)

Long-Term Net flows 3.3 1.0 1.9 0.4

Net flows in Inst. Money Market Funds (1.1) - (1.1) -

Market Gains and Losses/Reinvestment (52.2) (43.9) (7.2) (1.1)

Foreign Currency Translation (5.3) (4.4) (0.9) -

September 30, 2011 $598.4 $354.4 $227.2 $16.8




Net flows in Inst. Money Market Funds 0.4 - 0.4 -

Market Gains and Losses/Reinvestment 20.8 18.1 2.1 0.6

Foreign Currency Translation 0.1 0.2 (0.1) -

December 31, 2011 $625.3 $373.9 $233.5 $17.9

28

Total assets under management – by channel


December 31, 2010 $616.5 $378.1 $221.4 $17.0





Market Gains and Losses/Reinvestment 12.9 11.3 1.3 0.3

Foreign Currency Translation 3.3 2.7 0.6 -

March 31, 2011 $641.9 $396.2 $228.3 $17.4





Market Gains and Losses/Reinvestment 3.2 2.2 1.1 (0.1)

Foreign Currency Translation 1.3 0.4 0.9 -

June 30, 2011 $653.7 $401.7 $234.5 $17.5

29

Total assets under management – by client domicile

($ billions) Total U.S. Canada U.K.Continental

Europe Asia

June 30, 2011 $653.7 $439.9 $27.5 $97.1 $37.9 $51.3



Long-Term Net flows 3.3 3.4 (0.6) 0.2 (1.2) 1.5

Net flows in Inst. Money Market Funds (1.1) (0.9) - - (0.2) -

Market Gains and Losses/Reinvestment (52.2) (31.4) (2.1) (8.1) (3.5) (7.1)

Foreign Currency Translation (5.3) - (2.0) (2.5) (1.1) 0.3

September 30, 2011 $598.4 $411.0 $22.8 $86.7 $31.9 $46.0



Long-Term Net flows 5.6 3.4 (0.7) - (0.2) 3.1

Net flows in Inst. Money Market Funds 0.4 0.2 - - - 0.2

Market Gains and Losses/Reinvestment 20.8 15.4 0.8 3.4 0.7 0.5

Foreign Currency Translation 0.1 - 0.5 (0.3) (0.4) 0.3

December 31, 2011 $625.3 $430.0 $23.4 $89.8 $32.0 $50.1

30


Europe Asia

December 31, 2010 $616.5 $415.4 $27.9 $92.1 $35.3 $45.8



Long-Term Net flows 6.6 6.9 (1.0) (0.8) (0.6) 2.1

Net flows in Inst. Money Market Funds 2.6 2.7 0.1 (0.3) - 0.1

Market Gains and Losses/Reinvestment 12.9 10.2 0.6 1.0 0.8 0.3

Foreign Currency Translation 3.3 - 0.6 2.2 0.7 (0.2)

March 31, 2011 $641.9 $435.2 $28.2 $94.2 $36.2 $48.1



Long-Term Net flows 3.8 (0.2) (0.8) 1.1 0.8 2.9

Net flows in Inst. Money Market Funds 3.5 3.7 - (0.2) 0.1 (0.1)

Market Gains and Losses/Reinvestment 3.2 1.2 (0.1) 2.0 0.5 (0.4)

Foreign Currency Translation 1.3 - 0.2 - 0.3 0.8

June 30, 2011 $653.7 $439.9 $27.5 $97.1 $37.9 $51.3

Total assets under management – by client domicile

31

Assets under management – ETF, UIT and passive – by asset class


Fixed

Income Balanced

Money

Market Alternative

June 30, 2011 $91.8 $45.7 $26.7 - - $19.4

Long-Term Inflows 18.1 12.6 2.9 - - 2.6

Long-Term Outflows (15.4) (12.6) (0.6) - - (2.2)

Long-Term Net flows 2.7 - 2.3 - - 0.4


- - - - - -


(7.0) (6.0) 0.5 - - (1.5)

Foreign Currency Translation (0.1) - - - - (0.1)

September 30, 2011 $87.4 $39.7 $29.5 - - $18.2



Long-Term Net flows 5.8 2.8 0.5 - - 2.5


- - - - - -


3.0 3.1 - - - (0.1)

Foreign Currency Translation 0.1 - - - - 0.1

December 31, 2011 $96.3 $45.6 $30.0 - - $20.7

32

March 31, 2011 $91.7 $47.3 $23.7 $0.0 $0.0 $20.7



Long-Term Net flows 0.9 (0.9) 2.7 - - (0.9)

Net flows in Inst. Money Market Funds

- - - - - -


(0.9) (0.7) 0.3 - - (0.5)


June 30, 2011 $91.8 $45.7 $26.7 - - $19.4


Fixed

Income Balanced

Money

Market Alternative

December 31, 2010 $80.8 $42.8 $19.8 $0.0 $0.0 $18.2



Long-Term Net flows 8.1 2.4 4.0 - - 1.7

Net flows in Inst. Money Market Funds

- - - - - -


2.8 2.1 (0.1) - - 0.8

Net Acquisitions/(Dispositions) - - - - - -

Foreign Currency Translation - - - - - -

Assets under management – ETF, UIT and passive – by asset class

33


June 30, 2011 $91.8 $76.7 $15.1 -

Long-Term Inflows 18.1 16.2 1.9 -

Long-Term Outflows (15.4) (15.2) (0.2) -

Long-Term Net flows 2.7 1.0 1.7 -

Net flows in Inst. Money Market Funds - - - -

Market Gains and Losses/Reinvestment (7.0) (6.7) (0.3) -

Foreign Currency Translation (0.1) - (0.1) -

September 30, 2011 $87.4 $71.0 $16.4 -





Market Gains and Losses/Reinvestment 3.0 3.1 (0.1) -

Foreign Currency Translation 0.1 - 0.1 -

December 31, 2011 $96.3 $76.9 $19.4 $-

Assets under management – ETF, UIT and passive – by channel

34


December 31, 2010 $80.8 $70.6 $10.2 $0.0





Market Gains and Losses/Reinvestment 2.8 2.9 (0.1) -

Foreign Currency Translation - - - -

March 31, 2011 $91.7 $78.2 $13.5 $0.0



Long-Term Net flows 0.9 (0.6) 1.5 -


Market Gains and Losses/Reinvestment (0.9) (0.9) - -

Foreign Currency Translation 0.1 - 0.1 -

June 30, 2011 $91.8 $76.7 $15.1 -

Assets under management – ETF, UIT and passive – by channel

35


Europe Asia

June 30, 2011 $91.8 $88.0 - - $1.4 $2.4

Long-Term Inflows 18.1 18.0 - - 0.1 -

Long-Term Outflows (15.4) (15.3) - - (0.1) -

Long-Term Net flows 2.7 2.7 - - - -

Net flows in Inst. Money Market Funds - - - - - -

Market Gains and Losses/Reinvestment (7.0) (6.6) - - (0.2) (0.2)

Foreign Currency Translation (0.1) - - - - (0.1)

September 30, 2011 $87.4 $84.1 - - $1.2 $2.1

Long-Term Inflows 19.5 16.1 - - 0.1 3.3


Long-Term Net flows 5.8 2.5 - - 3.3


Market Gains and Losses/Reinvestment 3.0 3.0 - - 0.1 (0.1)


December 31, 2011 $96.3 $89.6 $ $ $1.3 $5.4

Assets under management – ETF, UIT and passive – by client domicile

36


Europe Asia

December 31, 2010 $80.8 $77.3 $0.0 $0.0 $1.2 $2.3



Long-Term Net flows 8.1 8.0 - - 0.1 -


Market Gains and Losses/Reinvestment 2.8 2.7 - - 0.1 -

Foreign Currency Translation - - - - - -

March 31, 2011 $91.7 $88.0 $0.0 $0.0 $1.4 $2.3



Long-Term Net flows 0.9 0.9 - - - -


Market Gains and Losses/Reinvestment (0.9) (0.9) - - - -


June 30, 2011 $91.8 $88.0 - - $1.4 $2.4

Assets under management – ETF, UIT and passive – by client domicile

37

Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011

($ millions)

Operating Revenues

US GAAP

Basis

Proportional Consolidation

of Joint Ventures

3rd party distribution, service and

advisory expenses

Acquisition related

Market appreciation / depreciation of

deferred compensation

awards

Consolidated Investment

Products

Other* Non-GAAP basis

Investment Management Fees 748 12 - - - 12 - 771

Service and Distribution Fees 181 - - - - - - 181

Performance Fees 24 - - - - - 24

Other 45 - - - - - 45

Third-Party Distribution, Service and Advisory - (2) (302) - - - - (304)

Total Operating Revenues reconciled to net revenues

Operating Expenses

997 10 (302) - - 12 - 717

Employee Compensation 317 3 - - (6) - (1) 312

Third-Party Distribution, Service and Advisory 302 - (302) - - - - -

Marketing 21 1 - - - - - 22

Property, Office and Technology 66 1 - - - - (5) 62

General and Administrative 75 1 - (4) - (3) (5) 64

Transaction & Integration 6 - - (6) - - - -

Total Operating Expenses 786 6 (302) (9) (6) (3) (11) 461

Operating Income reconciled to adjusted operating income

212 4 - 9 6 15 11 256

Equity in Earnings of Unconsolidated Affiliates 5 (5) - - - (1) - (1)

Interest and Dividend Income 3 1 - - - 3 - 6

Interest Income of Consolidated Investment Products 74 - - - - (74) - -


104 - - - - (104) - -

Interest Expense (14) - - - - - - (14)


(52) - - - - 52 - -

Other Gains and Losses, net 55 - - - (10) - (45) -

Income Before Income Taxes 386 - - 9 (5) (110) (34) 247

Income Tax Provision 76 - - 3 1 - 15 (57)


(108) - - - - 108 - -

Net Income Attributable to Common Shareholders reconciled to adjusted net income attributable to common shareholders

202 - - 12 (3) (2) (19) 191

Diluted EPS

Diluted Shares Outstanding

Operating margin

$0.44

458.3

21.2%

Adjusted diluted EPS


Adjusted Operating Margin

$0.42

458.3

35.8%

38 * Other: Please refer to pages 13-15 in the 4Q 2011 earnings press release for a description of the adjustments

Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other* Non-GAAP basis




Other 27 - - - - - 27



Operating Expenses

998 10 (314) - - 12 - 706

Employee Compensation 306 3 - (5) 6 - (3) 306


Marketing 13 1 - - - - 10 24

Property, Office and Technology 63 1 - - - - (1) 63



Total Operating Expenses 770 6 (314) (20) 6 (3) 5 450


228 5 - 20 (6) 15 (5) 256

Equity in Earnings of Unconsolidated Affiliates 8 (5) - - - - - 3

Interest and Dividend Income 4 1 - - (2) 3 - 5



(93) - - - - 93 - -



(49) - - - - 49 - -

Other Gains and Losses, net (20) - - - 20 - - -

Income Before Income Taxes 143 - - 20 11 80 (5) 248

Income Tax Provision (59) - - 3 (3) - 4 (56)


84 - - - - (84) - -


167 - - 23 8 (4) (2) 192

Diluted EPS


Operating margin

$0.36

461.0

22.8%




$0.42

461.0

36.2%

39 * Other: Please refer to pages 13-15 in the 4Q 2011 earnings press release for a description of the adjustments

Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2011

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

European Infrastructure

Non-GAAP basis


Service and Distribution Fees 211 - - (5) - - - 206

Performance Fees 8 - - - - - - 8

Other 32 - - - - - - 32

Third-Party Distribution, Service and Advisory - (3) (342) 5 - - - (339)


Operating Expenses

1,070 11 (342) - - 12 - 751

Employee Compensation 318 3 - (5) (3) - (3) 311


Marketing 26 1 - - - - - 27

Property, Office and Technology 62 1 - - - - - 63





233 5 - 23 3 16 6 285


Interest and Dividend Income 2 1 - - (1) 2 - 3



(65) - - - - 65 - -



(47) - - - - 47 - -

Other Gains and Losses, net 6 - - - (3) - - 3

Income Before Income Taxes 205 - - 23 (2) 48 6 280

Income Tax Provision (75) - - 3 1 - (1) (73)


54 - - - - (54) - -


183 - - 26 (2) (5) 5 207

Diluted EPS


Operating margin

$0.39

467.4

21.8%




$0.44

467.4

37.9%

40

Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2011

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 33 - - - - - - 33



Operating Expenses

1,027 10 (325) - - 11 - 724

Employee Compensation 306 3 - (5) (4) - - 300


Marketing 26 1 - - - - - 26


General and Administrative 74 1 - (9) - (4) - 62


Total Operating Expenses 802 5 (325) (22) (4) (4) - 452


226 5 - 22 4 15 - 272

Equity in Earnings of Unconsolidated Affiliates 7 (6) - - - 1 - 2

Interest and Dividend Income 2 - - - (1) 1 - 3



(86) - - - - 86 - -



(40) - - - - 40 - -


Income Before Income Taxes 175 - - 22 (1) 69 - 265

Income Tax Provision (76) - - 2 - - - (73)


78 - - - - (78) - -


178 - - 24 (1) (10) - 192

Diluted EPS


Operating margin

$0.38

472.1

22.0%




$0.41

472.1

37.6%

41

Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 34 1 - - - - - 35



Operating Expenses

1,029 11 (316) - - 12 - 736



Marketing 26 1 - - - - - 26






199 6 - 41 6 14 15 280


Interest and Dividend Income 4 - - - (1) - - 3



(28) - - - - 28 - -



(37) - - - - 37 - -


Income Before Income Taxes 212 - - 41 (3) 14 15 280

Income Tax Provision (56) - - (14) 1 - (4) (74)


19 - - - - (15) - 3


175 - - 26 (2) (1) 11 209

Diluted EPS


Operating margin

$0.37

473.1

19.3%




$0.44

473.1

38.1%

42

Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 33 - - - - - - 33



Operating Expenses

953 10 (292) - - 10 - 682



Marketing 20 - - - - - - 20


General and Administrative 65 1 - (9) - (2) - 54


Total Operating Expenses 770 5 (292) (41) (4) (2) - 436


183 6 - 41 4 12 - 246


Interest and Dividend Income 3 - - - (1) - - 2



(148) - - - - 148 - -



(36) - - - - 36 - -


Income Before Income Taxes 82 - - 41 (8) 126 - 241

Income Tax Provision (55) - - (3) 2 - - (56)


127 - - - - (128) - -


155 - - 38 (6) (2) - 185

Diluted EPS


Operating margin

$0.32

479.1

19.2%




$0.39

479.1

36.0%

43

Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2010

($ millions)

Operating Revenues

US GAAP

Basis


of Joint Ventures


advisory expenses

Acquisition related



awards


Products

Other Reconciling

Items

Non-GAAP basis




Other 16 - - - - - - 16



Operating Expenses

787 10 (238) - - 12 - 571

Employee Compensation 261 3 - (5) 2 - - 260


Marketing 18 - - - - - - 18




Total Operating Expenses 716 4 (238) (90) 2 (3) (9) 383


71 6 - 90 (2) 15 9 189


Interest and Dividend Income 2 - - - - - - 2



187 - - - - (187) - -



(26) - - - - 26 - -

Other Gains and Losses, net (9) - - - 6 - - (4)

Income Before Income Taxes 275 - - 90 4 (200) 9 178

Income Tax Provision (37) - - (11) (1) - (3) (52)


(197) - - - - 197 - -


41 - - 78 3 (2) 6 125

Diluted EPS


Operating margin

$0.09

457.8

9.1%




$0.27

457.8

33.0%

44

Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2010

($ millions)

Operating Revenues

US GAAP

Basis

Proportional share of JV


advisory expenses

Acquisition

related


deferred compensation awards


Products

Non-GAAP basis

Investment Management Fees 594 14 - - - 11 618

Service and Distribution Fees 113 - - - - - 113


Other 12 - - - - - 11

Third-Party Distribution, Service and Advisory - (3) (208) - - - (211)


Operating Expenses

719 11 (208) - - 10 532

Employee Compensation 238 3 - (5) (2) - 234

Third-Party Distribution, Service and Advisory 208 - (208) - - - -

Marketing 16 - - - - - 16

Property, Office and Technology 54 1 - - - - 54

General and Administrative 50 1 - (3) - (3) 45

Transaction & Integration 17 - - (17) - - -

Total Operating Expenses 582 5 (208) (25) (2) (3) 349


137 5 - 25 2 14 183

Equity in Earnings of Unconsolidated Affiliates 6 (6) - - - 0 1

Interest and Dividend Income 2 - - - - - 2

Interest Income of Consolidated Investment Products 53 - - - - (53) -


103 - - - - (103) -

Interest Expense (12) - - - - - (12)


(21) - - - - 21 -

Other Gains and Losses, net (2) - - - (2) - (5)

Income Before Income Taxes 265 - - 25 (1) (121) 168

Income Tax Provision (50) - - 2 - - (48)


(119) - - - - 119 -


95 - - 27 (0) (2) 120

Diluted EPS


Operating margin

$0.21

442.4

19.0%


Diluted shares outstanding

Adjusted operating margin

$0.27

442.4

34.4%

45

invesco fourth-quarter 2011 results › 954047929 › files › doc_news › ... · summary of...

Documents