Invesco Ltd · NYSE:IVZ
Invesco — Q2 2008 Earnings Presentation
26 slides from Invesco's earnings presentation, Jul 24, 2008
Slide 1: 2008 Second Quarter Results
Invesco 2008 Second Quarter Results July 24, 2008 Martin L. Flanagan, Chief Executive Officer Loren M. Starr, Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, and comments made by management in the associated conference call today, may include statements that constitute "forward-looking statements" under the United States securities laws. Forward-looking statements include information concerning possible or as
Slide 3: Discussion Topics
Discussion Topics 1. Business Overview 2. Financial Results 3. Questions and Answers 4. Appendix 3
Slide 4: Specialized Investment Capabilities Globally
Specialized Investment Capabilities Globally Investment management team network Each of Invesco’s investment centers adheres to clearly defined investment strategies and philosophies intended to align with client expectations. Harnessing the distinct expertise at each center, Invesco’s teams draw on
Slide 5: Summary of Second Quarter 2008 Results
Summary of Second Quarter 2008 Results 2Q08 average AUM was $482.6bn, up $6.0bn since 1Q08 AUM June 30, 2008 AUM of $461.3bn versus $470.3bn as of March 31, 2008 and $491.6bn as of June 30, 2007 Net long-term outflows improved from $8.4bn in 1Q08 to $6.2bn in 2Q08 Quarterly Flows Money marke
Slide 6: Quarterly Flows
Quarterly Flows Improved gross redemptions were offset by slightly lower gross sales Institutional money market AUM increased $4.7bn during the quarter resulting in a 20.1% increase YTD Quarterly Long-Term Flows ($ billions) Growth in Institutional Money Market ($ billions) Gross sales Ending AU
Slide 7: Distribution Channels – Quarterly LT Flows
Distribution Channels – Quarterly LT Flows Retail gross redemptions improved versus 1Q08 with lower redemptions among US and European clients Institutional net outflows improved by $0.6 billion despite $3.2 billion redemptions in 2 products Private Wealth net flows were slightly positive for t
Slide 8: Investment Performance – Overview
Investment Performance – Overview Asset Weighted 3-Year Performance June 30, 2008 March 31, 2008 Includes rated AUM of $353.4bn Includes rated AUM of $358.8bn Above Above Benchmark/ Benchmark/ Top Half of Top Half of Peer Group Peer Group 71% 72% Below Below Benchmark/ Benchmark/ Bottom Half Bottom
Slide 9: Investment Performance – Overview
Investment Performance – Overview Ensuring well-defined, repeatable and disciplined investment processes that meet client expectations Retail Results % of AUM in Top Half of Peer Group 1yr 3yr 5yr Jun-08 Mar-08 Jun-07 Jun-08 Mar-08 Jun-07 Jun-08 Mar-08 Jun-07 US (Lipper)* 46% 39% 62% 61% 60% 67% 67%
Slide 10: Invesco's Worldwide Institutional business
Invesco’s Worldwide Institutional business As of June 30, 2008 Who We Are… Strengthening Our Competitive Position… $224 billion in assets under management Improved investment and business Institutional clients in over 20 countries performance, leading to improved competitive position Broad i
Slide 11: Investment performance
Investment performance 1 year investment performance Strategy Comparison 6/30/08 12/31/07 Change • Liquid Asset Composite (Cash) Peers 19% 14% -5% Fixed • Diversified Core Peers 48% 50% +2% Income • US High Yield Peers 35% 74% +39% Strategies • Intermediate Gov’t Credit Benchmark +0.47 +0.84 -0.37 •
Slide 12: Investment capabilities meeting client needs
Investment capabilities meeting client needs Overview: Investment platform update: • Institutional • Leveraging the global platform to launch Direct investors continue Real products focused on Europe and Asia to search for Estate • Raising assets for further direct investment uncorrelated opportunit
Slide 13: Achieving global Institutional distribution
Achieving global Institutional distribution Maintaining our Capabilities: Significant global wins in past year: momentum: Invesco • Global Tactical Asset Allocation to Asian • Continuing to see Global Asset Sovereign Wealth Fund success in Management • Multi-Strategy Fund to Australian distributing
Slide 14: Invesco Delivers Investment Strategies That Meet Our Clients Diverse Needs
Invesco Delivers Investment Strategies That Meet Our Clients Diverse Needs Diversified Investment Strategies Equity Alternatives • Market cap • Commodities and • Investment style natural resources • Geography – Energy; traditional • Sector and alternative Delivered the Way Our Clients Want • Structu
Slide 15: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 15
Slide 16: Assets Under Management – 2Q08 vs. 1Q08
Assets Under Management – 2Q08 vs. 1Q08 ($ billions) 2Q08 1Q08 % Change Beginning Assets $470.3 $500.1 (6.0)% Long-Term Inflows 19.4 20.8 (6.7)% Long-Term Outflows (25.6) (29.2) (12.3)% Long-Term Net flows (6.2) (8.4) (26.2)% Net flows in Money Market Funds and Other 4.7 9.6 (51.0)% Market Gains/Rei
Slide 17: Operating Results – 2Q08 vs. 1Q08
Operating Results – 2Q08 vs. 1Q08 ($ millions) 2Q08 1Q08 % Change* Investment Management Fees 737 738 (0.1)% Performance Fees 22 11 101.8% Service and Distribution Fees 143 138 3.5% Other 33 23 42.3% Total Operating Revenues 936 910 2.8% Employee Compensation 283 273 3.7% Third-Party Distribution, S
Slide 18: Questions & Answers
Questions & Answers 2008 Second Quarter Results July 24, 2008
Slide 19: Discussion Topics
Discussion Topics 1. Our Business Today 2. Financial Results 3. Questions and Answers 4. Appendix 19
Slide 20: 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 Private Wealth Balanced Management 7.9% Money Canada 3.6% Market 8.4% 19.9% U.S. U.K. Fixed Retail 60.7% 17.4% Equity Income 47.8% Institutio
Slide 21: Operating Results – Quarterly
Operating Results – Quarterly ($ millions) 2Q08 1Q08 % Change* 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 Investment Management Fees 737 738 (0.1)% 816 792 766 706 688 626 Performance Fees 22 11 101.8% 13 4 34 19 26 10 Service and Distribution Fees 143 138 3.5% 151 151 148 143 135 131 Other 33 23 42.3% 43 30 31
Slide 22: Assets Under Management - Quarterly
Assets Under Management - Quarterly ($ billions) 2Q08 1Q08 % Change 4Q07 3Q07 2Q07 Beginning Assets $470.3 $500.1 (6.0)% $507.2 $491.6 $471.2 Long-Term Inflows 19.4 20.8 (6.7)% 30.9 31.1 27.5 Long-Term Outflows (25.6) (29.2) (12.3)% (35.9) (30.9) (26.8) Long-Term Net flows (6.2) (8.4) (26.2)% (5.0)
Slide 23: Assets Under Management – by Channel
Assets Under Management – by Channel ($ billions) Total Retail Institutional PWM December 31, 2007 $500.1 $259.5 $223.1 $17.5 Long-Term Inflows 20.8 14.5 5.1 1.2 Long-Term Outflows (29.2) (19.3) (8.7) (1.2) Long-Term Net flows (8.4) (4.8) (3.6) -- Net flows in Money Market Funds 9.6 0.4 9.2 -- and O
Slide 24: Assets Under Management – by Asset Class
Assets Under Management – by Asset Class Fixed Money Stable ($ billions) Total Equity Income Balanced Market Value Alternative December 31, 2007* $500.1 $249.3 $39.3 $40.3 $77.0 $32.4 $61.8 Long-Term Inflows 20.8 11.8 2.5 1.7 1.0 1.4 2.4 Long-Term Outflows (29.2) (17.6) (2.2) (2.9) (0.8) (3.6) (2.1)
Slide 25: Assets Under Management – by Client Domicile
Assets Under Management – by Client Domicile ($ billions) Total U.S. Canada U.K. Europe Asia December 31, 2007 * $500.1 $289.8 $46.6 $90.0 $36.7 $37.0 Inflows 20.8 10.0 1.0 4.6 3.2 2.0 Outflows (29.2) (14.0) (2.9) (2.7) (5.9) (3.7) Long-Term Net flows (8.4) (4.0) (1.9) 1.9 (2.7) (1.7) Net flows in M
Slide 26: Schedule of Non-GAAP Information
Schedule of Non-GAAP Information For the three months ended June 30, 2008 March 31, 2008 June 30, 2007 Operating revenues, GAAP basis $935.6 $910.4 $979.0 Third-party distribution, service and advisory expenses (244.9) (247.1) (263.0) Proportional share of revenues, net of third-party distribution e