Invesco Ltd · NYSE:IVZ
Invesco — Q1 2012 Earnings Presentation
47 slides from Invesco's earnings presentation, Apr 26, 2012
Slide 1: Invesco first-quarter 2012 results
Invesco first-quarter 2012 results Martin L. Flanagan President and Chief Executive Officer Loren M. Starr Chief Financial Officer April 26, 2012
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: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 2
Slide 4: First-quarter overview
First-quarter overview Continued positive momentum in a volatile, yet trendless, market environment – Maintained strong, long-term investment performance across the enterprise, generally – Continued positive trend of net long-term inflows – the seventh consecutive quarter of positive net long-term i
Slide 5: Summary of first-quarter 2012 results
Summary of first-quarter 2012 results March 31, 2012 AUM of $672.8 billion versus $625.3 billion at Assets under December 31, 2011 management Average AUM was $658.2 billion versus $621.7 billion for the fourth quarter Total net inflows of $8.1 billion Flows Net long-term inflows of $7.0 bill
Slide 6: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 5
Slide 7: Investment performance – overview
Investment performance – overview Aggregate performance analysis – asset weighted Percent of actively managed assets in top half of peer group* 1-Year 3-Year 5-Year Assets top half of peer group Assets bottom half of peer group *Excludes passive products, closed-end funds, private equity limited par
Slide 8: Quarterly flows – total flows
Quarterly flows – total flows Continued positive momentum in long-term flows during the fourth quarter – the seventh consecutive quarter of positive long-term flows Quarterly long-term flows ($ billions) Total AUM Active AUM Passive AUM 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q12 2Q10 3Q10 4Q10 1Q11 2
Slide 9: Quarterly flows – total flows
Quarterly flows – total flows Continued strength in net inflows driven by Retail and Private Wealth Management channels Quarterly long-term flows ($ billions) Retail(a) Institutional(b) Private Wealth Management(c) 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q10* 3Q10 4Q10* 1Q11 2Q11 3Q11 4Q11 1Q12 2Q1
Slide 10: US Retail gross sales up 32% quarter over quarter; redemptions lower than industry average
US Retail gross sales up 32% quarter over quarter; redemptions lower than industry average Gross and net sales Percentage above the bars is change in Net sales gross sales from prior quarter ($, billions) +36% +32% +9% +29% (27%) (15%) +25% Annualized redemption rate (rolling 3-month average) IVZ In
Slide 11: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 10
Slide 12: Capital management priorities
Capital management priorities Our capital management priorities have evolved with the growth and success of our business – Reinvestment in the business – Steady annual growth of dividends – Share repurchase – ~$1 billion cash buffer in excess of regulatory requirements Executed in a manner consisten
Slide 13: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 12
Slide 14: Total assets under management – 1Q12 vs. 4Q11
Total assets under management – 1Q12 vs. 4Q11 ($ billions) 1Q-12 4Q-11 % Change Beginning Assets $625.3 $598.4 4.5% Long-Term Inflows 42.9 41.1 4.4% Long-Term Outflows (35.9) (35.5) 1.1% Long-Term Net flows 7.0 5.6 25.0% Net flows in Inst. Money Market Funds 1.1 0.4 175.0% Market Gains and Losses/Re
Slide 15: Non-GAAP operating results – 1Q12 vs. 4Q11
Non-GAAP operating results – 1Q12 vs. 4Q11 ($ millions) 1Q-12 4Q-11 % Change Adjusted Revenues Investment Management Fees 812 771 5.4% Service and Distribution Fees 189 181 4.4% Performance Fees 21 24 (11.7)% Other 33 45 (26.3)% Third-Party Distribution, Service and Advisory Expenses (319) (304) 5.0
Slide 16: First-quarter overview
First-quarter overview Continued positive momentum in a volatile, yet trendless, market environment – Maintained strong, long-term investment performance across the enterprise, generally – Continued positive trend of net long-term inflows – the seventh consecutive quarter of positive net long-term i
Slide 17: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 16
Slide 18: Discussion topics
Discussion topics First-quarter overview Investment performance Capital management priorities Financial results Questions Appendix 17
Slide 19: Commitment to investment excellence
Commitment to investment excellence Source: Invesco. All data as of March 31, 2012. 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 subsi
Slide 20: Investment performance (5-year)
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 $388.8 billion) % of assets top half % of assets bottom Equities of peer group half of peer grou
Slide 21: Investment performance (5-year)
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 $388.8 billion) % of assets top half % of assets bottom Equities Global ex-US and Other of peer
Slide 22: Investment performance
Investment performance By investment objective (actively managed assets)* Equities 1st quartile 2nd quartile AUM above benchmark U.S. Core U.S. Growth U.S. Value Sector 100% 100% 100% 100% 100% 95% 85% 2% 68% 13% 68% 64% 95% 1% 64% 1% 25% 54% 42% 3% 67% 1% 33% 54% 28% 28% 44% 27% 44% 41% 22% 29% 31%
Slide 23: Investment performance
Investment performance By investment objective (actively managed assets)* Equities Global ex-U.S. and Other 1st quartile 2nd quartile AUM above benchmark Global Emerging markets Alternatives Balanced 100% 100% 100% 100% 95% 83% 83% 79% 79% 77% 80% 18% 29% 64% 27% 60% 49% 76% 50% 77% 43% 33% 58% 2% 1
Slide 24: We are diversified as a firm
We are diversified as a firm Delivering a diverse set of solutions to meet client needs By client domicile By channel By asset class 1-Yr 1-Yr 1-Yr ($ billions) Change ($ billions) Change ($ billions) Change U.S. $462.9 6.4% Retail $414.8 4.7% Equity $305.2 0.7% Canada $24.8 (12.1)% Institutional $2
Slide 25: Non-GAAP operating results – quarterly
Non-GAAP operating results – quarterly ($ millions) 1Q-12 4Q-11 % Change* 3Q-11 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 Investment Management Fees 812 771 5.4% 804 844 816 799 749 653 Service and Distribution Fees 189 181 4.4% 189 206 199 202 192 139 Performance Fees 21 24 (11.7)% 3 8 4 19 3 4 Other 33 45 (26
Slide 26: US GAAP operating results – quarterly
US GAAP operating results – quarterly ($ millions) 1Q-12 4Q-11 % Change* 3Q-11 2Q-11 1Q-11 4Q-10 3Q-10 2Q-10 Investment Management Fees 791 748 5.9% 780 819 792 774 726 628 Service and Distribution Fees 189 181 4.4% 189 211 199 202 192 139 Performance Fees 21 24 (14.2)% 3 8 4 19 3 4 Other 33 45 (26.
Slide 27: Total assets under management – quarterly
Total assets under management – quarterly ($ billions) 1Q-12 4Q-11 % Change 3Q-11 2Q-11 1Q-11 Beginning Assets $625.3 $598.4 4.5% $653.7 $641.9 $616.5 Long-Term Inflows 42.9 41.1 4.4% 45.9 42.7 48.0 Long-Term Outflows (35.9) (35.5) 1.1% (42.6) (38.9) (41.4) Long-Term Net flows 7.0 5.6 25.0% 3.3 3.8
Slide 28: Total assets under management – by asset class
Total assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative September 30, 2011 $598.4 $253.2 $146.7 $41.5 $73.6 $83.4 Long-Term Inflows 41.1 22.6 6.4 3.3 0.6 8.2 Long-Term Outflows (35.5) (21.8) (5.4) (1.7) (0.6) (6.0) Long-Term Net flows 5
Slide 29: Total assets under management – by asset class
Total assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative March 31, 2011 $641.9 $303.0 $139.7 $44.7 $71.0 $83.5 Long-Term Inflows 42.7 22.9 8.8 2.7 0.3 8.0 Long-Term Outflows (38.9) (25.5) (5.3) (2.2) (0.5) (5.4) Long-Term Net flows 3.8 (
Slide 30: Total assets under management – by channel
Total assets under management – by channel ($ billions) Total Retail Institutional PWM September 30, 2011 $598.4 $354.4 $227.2 $16.8 Long-Term Inflows 41.1 30.2 9.9 1.0 Long-Term Outflows (35.5) (29.0) (6.0) (0.5) Long-Term Net flows 5.6 1.2 3.9 0.5 Net flows in Inst. Money Market Funds 0.4 - 0.4 -
Slide 31: Total assets under management – by channel
Total assets under management – by channel ($ billions) Total Retail Institutional PWM March 31, 2011 $641.9 $396.2 $228.3 $17.4 Long-Term Inflows 42.7 33.2 8.6 0.9 Long-Term Outflows (38.9) (30.3) (7.9) (0.7) Long-Term Net flows 3.8 2.9 0.7 0.2 Net flows in Inst. Money Market Funds 3.5 - 3.5 - Mark
Slide 32: Total assets under management – by client domicile
Total assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia September 30, 2011 $598.4 $411.0 $22.8 $86.7 $31.9 $46.0 Long-Term Inflows 41.1 28.2 0.6 3.0 3.2 6.1 Long-Term Outflows (35.5) (24.8) (1.3) (3.0) (3.4) (3.0) Long-Term Net flows 5.6 3.4 (0.
Slide 33: Total assets under management – by client domicile
Total assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia March 31, 2011 $641.9 $435.2 $28.2 $94.2 $36.2 $48.1 Long-Term Inflows 42.7 26.8 0.7 4.3 4.9 6.0 Long-Term Outflows (38.9) (27.0) (1.5) (3.2) (4.1) (3.1) Long-Term Net flows 3.8 (0.2) (0.8)
Slide 34: Passive assets under management – by asset class
Passive assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative September 30, 2011 $87.4 $39.7 $29.5 - - $18.2 Long-Term Inflows 19.5 13.1 1.7 - - 4.7 Long-Term Outflows (13.7) (10.3) (1.2) - - (2.2) Long-Term Net flows 5.8 2.8 0.5 - - 2.5 Ne
Slide 35: Passive assets under management – by asset class
Passive assets under management – by asset class Fixed Money ($ billions) Total Equity Income Balanced Market Alternative March 31, 2011 $91.7 $47.3 $23.7 $0.0 $0.0 $20.7 Long-Term Inflows 14.7 10.0 3.0 - - 1.7 Long-Term Outflows (13.8) (10.9) (0.3) - - (2.6) Long-Term Net flows 0.9 (0.9) 2.7 - - (0
Slide 36: Passive assets under management – by channel
Passive assets under management – by channel ($ billions) Total Retail Institutional PWM September 30, 2011 $87.4 $71.0 $16.4 - Long-Term Inflows 19.5 15.6 3.9 - Long-Term Outflows (13.7) (12.8) (0.9) - Long-Term Net flows 5.8 2.8 3.0 - Net flows in Inst. Money Market Funds - - - - Market Gains and
Slide 37: Passive assets under management – by channel
Passive assets under management – by channel ($ billions) Total Retail Institutional PWM March 31, 2011 $91.7 $78.2 $13.5 - Long-Term Inflows 14.7 12.7 2.0 - Long-Term Outflows (13.8) (13.3) (0.5) - Long-Term Net flows 0.9 (0.6) 1.5 - Net flows in Inst. Money Market Funds - - - - Market Gains and Lo
Slide 38: Passive assets under management – by client domicile
Passive assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia September 30, 2011 $87.4 $84.1 - - $1.2 $2.1 Long-Term Inflows 19.5 16.1 - - 0.1 3.3 Long-Term Outflows (13.7) (13.6) - - (0.1) - Long-Term Net flows 5.8 2.5 - - - 3.3 Net flows in Inst.
Slide 39: Passive assets under management – by client domicile
Passive assets under management – by client domicile Continental ($ billions) Total U.S. Canada U.K. Europe Asia March 31, 2011 $91.7 $88.0 - - $1.4 $2.3 Long-Term Inflows 14.7 14.6 - - 0.1 - Long-Term Outflows (13.8) (13.7) - - (0.1) - Long-Term Net flows 0.9 0.9 - - - - Net flows in Inst. Money Ma
Slide 40: Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2012
Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2012 * Other: Please refer to pages 10-12 in the 1Q 2012 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other* No
Slide 41: Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2011 * Other: Please refer to pages 13-15 in the 4Q 2011 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other*
Slide 42: Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2011 * Other: Please refer to pages 9-10 in the 3Q 2011 earnings press release for a description of the adjustments ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other*
Slide 43: Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated European Non- Consolidation distribution, related / depreciation of Investment Infrastructure GAAP Basis of Joint service
Slide 44: Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2011
Reconciliation of US GAAP results to non-GAAP results – three months ended March 31, 2011 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service and d
Slide 45: Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended December 31, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service an
Slide 46: Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended September 30, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service a
Slide 47: Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2010
Reconciliation of US GAAP results to non-GAAP results – three months ended June 30, 2010 ($ millions) US GAAP Proportional 3rd party Acquisition Market appreciation Consolidated Other Non- Consolidation distribution, related / depreciation of Investment Reconciling GAAP Basis of Joint service and de