INVESCO LTD. ATLANTA, Oct. 27, 2016 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended September 30, 2016.
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"Our continued focus on clients and running a disciplined business helped us, in a challenging business environment, achieve robust long-term net inflows of $12.2 billion during the quarter, driven by solid retail and institutional demand across active and passive capabilities," said Martin L. Flanagan, president and CEO. "We also returned $176 million to shareholders during the third quarter through dividends and buybacks."
Q3-16 Q2-16 Q3-16 vs. Q3-15 Q3-16 vs.
Q2-16 Q3-15
----- -----
U.S. GAAP Financial Measures
----------------------------
Operating revenues $1,201.6 m $1,189.4 m 1.0% $1,273.5 m (5.6)%
Operating income $306.3 m $301.5 m 1.6% $352.7 m (13.2)%
Operating margin 25.5% 25.3% 27.7%
Net income attributable to Invesco Ltd. $241.2 m $225.5 m 7.0% $249.3 m (3.2)%
Diluted EPS $0.58 $0.54 7.4% $0.58 - %
Adjusted Financial Measures(1)
-----------------------------
Net revenues $854.7 m $856.6 m (0.2)% $903.0 m (5.3)%
Adjusted operating income $339.3 m $330.4 m 2.7% $373.4 m (9.1)%
Adjusted operating margin 39.7% 38.6% 41.4%
Adjusted net income attributable to Invesco Ltd. $246.2 m $233.0 m 5.7% $261.4 m (5.8)%
Adjusted diluted EPS $0.60 $0.56 7.1% $0.61 (1.6)%
Assets Under Management
-----------------------
Ending AUM $820.2 bn $779.6 bn 5.2% $755.8 bn 8.5%
Average AUM $814.1 bn $784.5 bn 3.8% $788.9 bn 3.2%
----------- ------ --- ------ --- --- ------ --- ---
(1) The adjusted financial measures are all non-GAAP financial measures. See the information on pages 8 through 10 for a reconciliation
to their most directly comparable U.S. GAAP measures.
Assets Under Management
Total assets under management (AUM) at September 30, 2016, were $820.2 billion (June 30, 2016: $779.6 billion), an increase of $40.6 billion during the third quarter. Total net inflows were $19.2 billion for the third quarter, as detailed below:
Summary of net flows (in
billions) Q3-16 Q2-16 Q3-15
------------------------ ----- ----- -----
Active $8.3 $- ($1.6)
Passive 3.9 4.5 (2.3)
--- --- ----
Long-term net flows 12.2 4.5 (3.9)
Invesco PowerShares QQQ 1.1 (3.8) (0.9)
Money market 5.9 2.0 (1.5)
Total net flows $19.2 $2.7 ($6.3)
===== ==== =====
Annualized long-term organic
growth rate* 7.1% 2.6% (2.2%)
*Annualized long-term organic growth rate is calculated using long-term net flows (annualized) divided by opening long-term AUM for the period.
Long-term AUM excludes institutional money market AUM and PowerShares QQQ AUM.
Long-term net flows during the third quarter included a $6.5 billion inflow from the State of Rhode Island 529 mandate. Net market gains led to increases of $23.6 billion in AUM during the third quarter, compared to market gains of $10.7 billion in the second quarter 2016. Foreign exchange rate movements led to a $2.2 billion decrease in AUM during the third quarter, compared to a $7.7 billion decrease in the second quarter 2016. Average AUM during the third quarter were $814.1 billion, compared to $784.5 billion for the second quarter 2016, an increase of 3.8%. Further analysis is included in the supplementary schedules to this release.
Operating Results
This section discusses the company's third quarter 2016 results, as compared to the second quarter 2016, and comments on significant items that have impacted the company's results as presented in accordance with U.S. GAAP.
Operating revenues increased $12.2 million (1.0%) to $1,201.6 million in the third quarter, from $1,189.4 million in the second quarter 2016. The change was primarily due to increased investment management fees, offset by lower performance fees and other revenues. Foreign exchange rate changes decreased third quarter operating revenues by $23.1 million compared to the second quarter 2016.
Investment management fees increased $19.2 million (2.0%) to $965.9 million in the third quarter, from $946.7 million in the second quarter 2016. The increase reflects the higher average AUM during the third quarter compared to the second quarter 2016 partially offset by the impact of changes in the AUM product and currency mix. The average Pound Sterling exchange rate for Q3 was 1.3136 compared to 1.4346 for Q2 2016, an 8.4% devaluation. Foreign exchange rate changes decreased third quarter management fees by $22.8 million when compared to the second quarter 2016. The capital management discussion below includes details of our Pound Sterling hedge.
Service and distribution fees increased $10.0 million (4.9%) to $213.4 million in the third quarter, from $203.4 million in the second quarter 2016. The increase in service and distribution fees reflects the higher average AUM for products that receive these fees in the third quarter. Foreign exchange rate changes decreased third quarter service and distribution fees by $0.1 million when compared to the second quarter 2016.
Performance fees were $3.4 million in the third quarter, compared to $8.9 million in the second quarter 2016. Foreign exchange rate changes decreased third quarter performance fees by $0.1 million when compared to the second quarter 2016.
Other revenues decreased by $11.5 million (37.8%) to $18.9 million in the third quarter, compared to $30.4 million in the second quarter 2016 primarily due to a decrease of $7.3 million in transaction fees from real estate and a $2.0 million decrease in transactional sales charges from unit investment trust products. Foreign exchange rate changes decreased other revenues by $0.1 million in the third quarter when compared to the second quarter 2016.
Operating expenses increased $7.4 million (0.8%) to $895.3 million in the third quarter, from $887.9 million in the second quarter 2016, primarily related to increased third-party distribution, service and advisory costs. Business optimization charges were $11.7 million in the third quarter, compared to $10.3 million in the second quarter ($28.8 million year-to date and $45.0 since inception of this initiative). As of the end of the third quarter 2016, this initiative has produced annualized run-rate expense savings of $13.9 million. Foreign exchange rate changes decreased third quarter operating expenses by $12.9 million when compared to the second quarter 2016.
Third-party distribution, service and advisory expenses increased by $13.7 million (3.9%) to $362.1 million in the third quarter from $348.4 million in the second quarter 2016, consistent with the revenues derived from the increase in related retail AUM. Foreign exchange rate changes decreased third-party distribution, service and advisory expenses by $4.7 million in the third quarter when compared to the second quarter 2016.
Employee compensation expenses decreased by $5.2 million (1.5%) to $345.1 million in the third quarter, from $350.3 million in the second quarter 2016. Staff severance costs related to business optimization were $5.8 million in the third quarter compared to $4.4 million in the second quarter. Foreign exchange rate changes decreased third quarter employee compensation expenses by $5.2 million when compared to the second quarter 2016.
Marketing expenses decreased by $1.9 million (6.7%) to $26.4 million in the third quarter, from $28.3 million in the second quarter 2016 reflecting a reduction in client events. Foreign exchange rate changes decreased third quarter marketing expenses by $0.3 million when compared to the second quarter 2016.
Property, office and technology expenses decreased $4.1 million (5.0%) to $78.2 million in the third quarter, from $82.3 million in the second quarter 2016. The decrease includes a $3.4 million credit recorded in the third quarter associated with a vacated leased property. Foreign exchange rate changes decreased third quarter property, office and technology expenses by $1.0 million when compared to the second quarter 2016.
General and administrative expenses increased $4.9 million (6.2%) to $83.5 million in the third quarter, from $78.6 million in the second quarter 2016. General and administrative expenses for the second quarter included a regulatory settlement credit of $4.9 million that did not recur in the third quarter. The third quarter included $5.4 million of professional services fees related to the business optimization initiative compared to $5.5 million in the second quarter 2016. Foreign exchange rate changes decreased third quarter general and administrative expenses by $1.7 million when compared to the second quarter 2016.
Equity in earnings of unconsolidated affiliates increased $0.9 million to $5.5 million in the third quarter from $4.6 million in the second quarter 2016. Non-operating other income and expenses in the third quarter also included a $39.0 million consolidated investment product (CIP) net gain comprised of market-driven gains and losses of investments held by the consolidated funds and net interest income of CIP (second quarter 2016: $37.9 million gain).
Other gains and losses, net was a net gain in the third quarter of $16.2 million compared to a net loss of $4.2 million in the second quarter. The components and variances are included in the table below:
Summary of Other gains and losses,
net (in millions) Q3-16 Q2-16 Change
---------------------------------- ----- ----- ------
Investment gains/(losses) $3.3 $0.4 $2.9
Market valuation gains/(losses) in
deferred compensation plan
investments 7.3 3.6 3.7
Market valuation gains/(losses) on
acquisition-related contingent
consideration 5.3 (15.1) 20.4
Market valuation gains/(losses) on
foreign exchange hedge contracts 0.9 6.6 (5.7)
Foreign exchange gains/(losses) on
intercompany loans (0.6) 0.3 (0.9)
$16.2 ($4.2) $20.4
===== ===== =====
The acquisition-related contingent consideration gains and losses relate to the investment management contracts acquired from Deutsche Bank in the first quarter of 2015. The foreign exchange hedge contract gains and losses reflect the mark to market of all the open put option contracts. Further details of these foreign exchange hedge contracts are given below in the capital management section.
The effective tax rate decreased to 26.0% for the third quarter, from 26.1% for the second quarter 2016. The impact of the inclusion of non-controlling interests in CIP decreased our effective tax rate by 1.1% for the third quarter, compared to a decrease of 1.0% for the second quarter 2016. Third quarter 2016 included a 0.2% rate increase and second quarter 2016 included a 0.5% rate decrease as a result of adjustments related to changes in the fair value of contingent consideration discussed above.
Capital Management
As of September 30, 2016, the company's cash and cash equivalents were $1,581.3 million, with long-term debt of $2,073.2 million. The credit facility balance was zero at both September 30, 2016 and June 30, 2016.
Dividends paid in the third quarter were $115.7 million. Today the company is announcing a third-quarter cash dividend of 28.0 cents. The dividend is payable on December 5, 2016, to shareholders of record at the close of business on November 15, 2016, with an ex-dividend date of November 11, 2016.
During the third quarter the company repurchased $60.0 million of its common shares. This included the conclusion on September 6, 2016 of a $150.0 million accelerated share repurchase (ASR) agreement announced on June 30, 2016 that, in total, delivered 5.3 million shares at a weighted average share price of $28.35. Of the $150.0 million ASR, $120.0 million was repurchased in the second quarter. In addition to the ASR, a further $30.0 million of the company's common shares were repurchased on the open market during the third quarter, representing 1.0 million shares at a weighted average share price of $30.96. The diluted share count at September 30, 2016 was 411.7 million.
In early October 2016 the company received $4.9 million from the third quarter's Pound Sterling - U.S. Dollar hedge contract. As previously disclosed, during the third quarter the company entered into additional put option contracts to hedge 75% of the Pound Sterling-based operating income and 75% of the Euro-based operating income through to the end of 2017. These new put option contracts are set at a strike level of $1.2496 (Pound Sterling) and 1.0719 (Euro).
Headcount
As of September 30, 2016, the company had 6,812 employees, compared to 6,796 employees as of June 30, 2016.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.
Members of the investment community and general public are invited to listen to the conference call today, October 27, 2016, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-617-1526 for U.S. and Canadian callers or 1-210-795-0624 for international callers. An audio replay of the conference call will be available until Thursday, November 10, 2016 at 5:00 p.m. ET by calling 1-800-889-9139 for U.S. and Canadian callers or 1-402-220-9120 for international callers. A presentation highlighting the company's performance will be available during a live Webcast and on Invesco's Website at www.invesco.com.
This release, 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, assets under management, geopolitical events and their potential impact on the company, acquisitions and divestitures, 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. Although we make such statements based on assumptions that we believe to be reasonable, 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.
Invesco Ltd.
Condensed Consolidated Income Statements
(Unaudited, in millions, other than per share amounts)
Q3-16 Q2-16 % Change Q3-15 % Change
----- ----- -------- ----- --------
Operating revenues:
Investment management fees $965.9 $946.7 2.0% $1,016.9 (5.0)%
Service and distribution fees 213.4 203.4 4.9% 214.8 (0.7)%
Performance fees 3.4 8.9 (61.8)% 15.6 (78.2)%
Other 18.9 30.4 (37.8)% 26.2 (27.9)%
---- ---- ----
Total operating revenues 1,201.6 1,189.4 1.0% 1,273.5 (5.6)%
------- ------- --- ------- -----
Operating expenses:
Third-party distribution, service and advisory 362.1 348.4 3.9% 392.3 (7.7)%
Employee compensation 345.1 350.3 (1.5)% 337.6 2.2%
Marketing 26.4 28.3 (6.7)% 24.9 6.0%
Property, office and technology 78.2 82.3 (5.0)% 79.0 (1.0)%
General and administrative 83.5 78.6 6.2% 87.0 (4.0)%
Total operating expenses 895.3 887.9 0.8% 920.8 (2.8)%
----- ----- --- ----- -----
Operating income 306.3 301.5 1.6% 352.7 (13.2)%
Other income/(expense):
Equity in earnings of unconsolidated affiliates 5.5 4.6 19.6% 8.2 (32.9)%
Interest and dividend income 2.6 2.5 4.0% 2.4 8.3%
Interest expense (23.9) (22.1) 8.1% (20.4) 17.2%
Other gains and losses, net 16.2 (4.2) N/A 0.9 N/A
Other income/(expense) of CIP, net 39.0 37.9 2.9% 1.5 N/A
Other income/(expense) of CSIP, net - - N/A (3.6) N/A
Income before income taxes 345.7 320.2 8.0% 341.7 1.2%
Income tax provision (89.8) (83.7) 7.3% (100.4) (10.6)%
----- ----- --- ------ ------
Net income 255.9 236.5 8.2% 241.3 6.1%
Net (income)/loss attributable to noncontrolling interests in consolidated entities (14.7) (11.0) 33.6% 8.0 N/A
----- ----- ---
Net income attributable to Invesco Ltd. $241.2 $225.5 7.0% $249.3 (3.2)%
====== ====== === ====== =====
Earnings per share:
---basic $0.58 $0.54 7.4% $0.58 - %
---diluted $0.58 $0.54 7.4% $0.58 - %
Average shares outstanding:
---basic 412.6 418.9 (1.5)% 428.8 (3.8)%
---diluted 412.9 419.1 (1.5)% 429.1 (3.8)%
Invesco Ltd.
Condensed Consolidated Income Statements
(Unaudited, in millions, other than per share amounts)
Nine months ended
September 30,
-------------
2016 2015 % Change
---- ---- --------
Operating revenues:
Investment management fees $2,826.2 $3,074.0 (8.1)%
Service and distribution fees 614.5 647.8 (5.1)%
Performance fees 26.8 69.1 (61.2)%
Other 72.2 92.3 (21.8)%
---- ----
Total operating revenues 3,539.7 3,883.2 (8.8)%
------- ------- -----
Operating expenses:
Third-party distribution, service and advisory 1,057.7 1,204.7 (12.2)%
Employee compensation 1,039.8 1,045.7 (0.6)%
Marketing 79.6 81.3 (2.1)%
Property, office and technology 240.4 230.7 4.2%
General and administrative 240.0 266.0 (9.8)%
Total operating expenses 2,657.5 2,828.4 (6.0)%
------- ------- -----
Operating income 882.2 1,054.8 (16.4)%
Other income/(expense):
Equity in earnings of unconsolidated affiliates (2.1) 32.0 N/A
Interest and dividend income 8.7 7.5 16.0%
Interest expense (69.9) (58.7) 19.1%
Other gains and losses, net 7.3 (5.2) N/A
Other income/(expense) of CIP, net 69.4 39.1 77.5%
Other income/(expense) of CSIP, net - 10.9 N/A
Income before income taxes 895.6 1,080.4 (17.1)%
Income tax provision (245.4) (311.1) (21.1)%
------ ------ ------
Net income 650.2 769.3 (15.5)%
Net (income)/loss attributable to noncontrolling interests in consolidated
entities (22.5) (3.1) 625.8%
----- ----
Net income attributable to Invesco Ltd. $627.7 $766.2 (18.1)%
====== ====== ======
Earnings per share:
---basic $1.51 $1.78 (15.2)%
---diluted $1.51 $1.78 (15.2)%
Average shares outstanding:
---basic 416.7 430.9 (3.3)%
---diluted 417.0 431.3 (3.3)%
Invesco Ltd.
Non-GAAP Information and Reconciliations
We are presenting the following non-GAAP performance measures: net revenues (and by calculation, net revenue yield on AUM), adjusted operating income, adjusted operating margin, adjusted net income attributable to Invesco Ltd., and adjusted diluted EPS. We believe these non-GAAP measures provide greater transparency into our business on an ongoing operations basis and allow more appropriate comparisons with industry peers. Management uses these performance measures to evaluate the business and for internal management reporting. The most directly comparable U.S. GAAP measures are operating revenues (and by calculation, gross revenue yield on AUM), operating income, operating margin, net income attributable to Invesco Ltd., and diluted EPS. Non-GAAP measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies.
The following are reconciliations between the presented non-GAAP measures and the most directly comparable U.S. GAAP measures. These measures are described more fully in the company's Forms 10-K and 10-Q. Refer to these public filings for additional information about the company' non-GAAP performance measures. In addition, a reconciliation of adjusted operating expenses is provided below, together with reconciliations of the U.S. GAAP operating expense lines to provide further analysis of the non-GAAP adjustments.
Reconciliation of Operating revenues to Net revenues:
in millions Q3-16 Q2-16 Q3-15
Operating revenues, U.S. GAAP
basis 1,201.6 1,189.4 1,273.5
Proportional share of revenues,
net of third-party
distribution, service and
advisory expenses, from joint
venture investments 9.5 10.5 12.3
Third party distribution,
service and advisory expenses (362.1) (348.4) (392.3)
CIP 5.7 5.1 9.5
Net revenues 854.7 856.6 903.0
===== ===== =====
Reconciliation of Operating income to Adjusted operating income:
in millions Q3-16 Q2-16 Q3-15
Operating income, U.S. GAAP
basis 306.3 301.5 352.7
Proportional share of net
operating income from joint
venture investments 3.0 4.2 4.2
CIP 13.1 13.0 18.2
Business combinations 4.5 4.5 2.7
Compensation expense related
to market valuation changes
in deferred compensation
plans 4.1 1.8 (4.4)
Business optimization expenses 11.7 10.3 -
Vacated property lease credit (3.4) - -
Regulatory-related
(credits)/charges - (4.9) -
Adjusted operating income 339.3 330.4 373.4
===== ===== =====
Operating margin (1) 25.5% 25.3% 27.7%
Adjusted operating margin (2) 39.7% 38.6% 41.4%
---------------------------- ---- ---- ----
Reconciliation of Net income attributable to Invesco Ltd. to Adjusted net income attributable to Invesco Ltd.
in millions Q3-16 Q2-16 Q3-15
Net income attributable to
Invesco Ltd., U.S. GAAP basis 241.2 225.5 249.3
CIP, eliminated upon
consolidation (3.2) (8.0) 13.2
Business combinations:
Changes in the fair value of
contingent consideration (5.3) 15.1 (18.4)
Other business combination-
related adjustments 4.5 4.5 2.7
Deferred compensation plan
market valuation changes and
dividend income less
compensation expense (3.5) (2.0) 7.4
Business optimization expenses 11.7 10.3 -
Vacated property lease credit (3.4) - -
Regulatory-related
(credits)/charges - (4.9) -
Foreign exchange hedge 2.2 (8.4) (1.6)
Taxation:
Taxation on business
combinations 6.2 (1.7) 11.4
Taxation on deferred
compensation plan market
valuation changes and dividend
income less compensation
expense 1.1 0.7 (2.6)
Taxation on business
optimization charges (3.7) (3.2) -
Taxation on vacated property
lease credit 0.7 - -
Taxation on regulatory-related
(credits)/charges (1.4) 1.9 -
Taxation on foreign exchange
hedge (0.9) 3.2 -
Adjusted net income
attributable to Invesco Ltd.
(3) 246.2 233.0 261.4
===== ===== =====
Average shares outstanding -
diluted 412.9 419.1 429.1
Diluted EPS $0.58 $0.54 $0.58
Adjusted diluted EPS (4) $0.60 $0.56 $0.61
----------------------- ----- ----- -----
____________
(1) Operating margin is equal to
operating income divided by
operating revenues.
(2) Adjusted operating margin is
equal to adjusted operating
income divided by net revenues.
(3) The effective tax rate on
adjusted net income attributable
to Invesco Ltd. is 26.5% (second
quarter 2016: 26.5%; third
quarter 2015: 26.5%).
(4) Adjusted diluted EPS is equal to
adjusted net income attributable
to Invesco Ltd. divided by the
weighted average number of
common and restricted shares
outstanding. There is no
difference between the
calculated earnings per share
amounts presented above and the
calculated earnings per share
amounts under the two class
method.
Reconciliation of Operating expenses to Adjusted operating expenses:
in millions Q3-16 Q2-16 Q3-15
Operating expenses, U.S. GAAP
basis 895.3 887.9 920.8
Proportional share of
revenues, net of third-party
distribution expenses, from
joint venture investments 6.5 6.3 8.1
Third party distribution,
service and advisory expenses (362.1) (348.4) (392.3)
CIP (7.4) (7.9) (8.7)
Business combinations (4.5) (4.5) (2.7)
Compensation expense related
to market valuation changes
in deferred compensation
plans (4.1) (1.8) 4.4
Business optimization (11.7) (10.3) -
Vacated property lease credit 3.4 - -
Regulatory-related credits/
(charges) - 4.9 -
Adjusted operating expenses 515.4 526.2 529.6
===== ===== =====
Employee compensation, U.S.
GAAP basis 345.1 350.3 337.6
Proportional consolidation of
joint ventures 4.7 4.1 4.9
Business combinations (0.8) (0.3) -
Market appreciation/
depreciation of deferred
compensation awards (4.1) (1.8) 4.4
Business optimization (5.8) (4.4) -
Adjusted employee compensation 339.1 347.9 346.9
===== ===== =====
Marketing, U.S. GAAP basis 26.4 28.3 24.9
Proportional consolidation of
joint ventures 0.4 0.7 0.9
Adjusted marketing 26.8 29.0 25.8
==== ==== ====
Property, office and
technology, U.S. GAAP basis 78.2 82.3 79.0
Proportional consolidation of
joint ventures 1.0 0.9 0.9
Business optimization (0.5) (0.4) -
Vacated property lease credit 3.4 - -
--- --- ---
Adjusted property, office and
technology 82.1 82.8 79.9
==== ==== ====
General and administrative,
U.S. GAAP basis 83.5 78.6 87.0
Proportional consolidation of
joint ventures 0.4 0.6 1.4
Business combinations (3.7) (4.2) (2.7)
CIP (7.4) (7.9) (8.7)
Business optimization (5.4) (5.5) -
Regulatory-related credits/
(charges) - 4.9 -
Adjusted general and
administrative 67.4 66.5 77.0
==== ==== ====
Invesco Ltd.
Quarterly Assets Under Management
(in billions) Q3-16 Q2-16 % Change Q3-15
------------ ----- ----- -------- -----
Beginning Assets $779.6 $771.5 1.0% $803.6
Long-term inflows 51.7 45.8 12.9% 43.5
Long-term outflows (39.5) (41.3) (4.4)% (47.4)
----- ----- -----
Long-term net flows 12.2 4.5 171.1% (3.9)
Net flows in Invesco PowerShares QQQ fund 1.1 (3.8) N/A (0.9)
Net flows in institutional money market funds 5.9 2.0 195.0% (1.5)
--- --- ----
Total net flows 19.2 2.7 611.1% (6.3)
Market gains and losses/reinvestment 23.6 10.7 120.6% (35.6)
Acquisitions/dispositions, net - 2.4 (100.0)% -
Foreign currency translation (2.2) (7.7) (71.4)% (5.9)
---- ---- ----
Ending Assets $820.2 $779.6 5.2% $755.8
====== ====== ======
Average long-term AUM $705.9 $681.8 3.5% $685.5
Ending long-term AUM $711.5 $681.7 4.4% $657.3
Average AUM $814.1 $784.5 3.8% $788.9
Gross revenue yield on AUM(a) 59.8 bps 61.3 bps 65.1 bps
Gross revenue yield on AUM before performance fees(a) 59.6 bps 60.9 bps 64.3 bps
Net revenue yield on AUM(b) 42.0 bps 43.7 bps 45.8 bps
Net revenue yield on AUM before performance fees(b) 41.8 bps 43.2 bps 44.9 bps
-------------------------------------------------- ---- --- ---- --- ---- ---
(in billions) Total AUM Active(e) Passive(e)
------------ --------- -------- ---------
June 30, 2016 $779.6 $646.1 $133.5
Long-term inflows 51.7 39.9 11.8
Long-term outflows (39.5) (31.6) (7.9)
----- ----- ----
Long-term net flows 12.2 8.3 3.9
Net flows in Invesco PowerShares QQQ fund 1.1 - 1.1
Net flows in institutional money market funds 5.9 6.0 (0.1)
--- --- ----
Total net flows 19.2 14.3 4.9
Market gains and losses/reinvestment 23.6 18.7 4.9
Acquisitions/dispositions, net - - -
Foreign currency translation (2.2) (2.2) -
---- ---- ---
September 30, 2016 $820.2 $676.9 $143.3
====== ====== ======
Average AUM $814.1 $673.1 $141.0
Gross revenue yield on AUM(a) 59.8 bps 69.3 bps 15.3 bps
Net revenue yield on AUM(b) 42.0 bps 47.6 bps 15.3 bps
By channel: (in billions) Total Retail Institutional
------------------------ ----- ------ -------------
June 30, 2016 $779.6 $504.3 $275.3
Long-term inflows 51.7 40.3 11.4
Long-term outflows (39.5) (31.5) (8.0)
----- ----- ----
Long-term net flows 12.2 8.8 3.4
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 -
Net flows in institutional money market
funds 5.9 - 5.9
--- --- ---
Total net flows 19.2 9.9 9.3
Market gains and losses/reinvestment 23.6 20.2 3.4
Acquisitions/dispositions, net - - -
Foreign currency translation (2.2) (2.3) 0.1
---- ---- ---
September 30, 2016 $820.2 $532.1 $288.1
====== ====== ======
See the footnotes immediately
following these tables.
Invesco Ltd.
Quarterly Assets Under Management (continued)
By asset class: (in billions) Total Equity Fixed Income Balanced Money Alternatives(c)
Market (d)
---
June 30, 2016 $779.6 $348.8 $196.3 $47.4 $71.1 $116.0
Long-term inflows 51.7 19.9 17.1 2.6 1.2 10.9
Long-term outflows (39.5) (23.1) (7.9) (2.4) (1.1) (5.0)
----- ----- ---- ---- ---- ----
Long-term net flows 12.2 (3.2) 9.2 0.2 0.1 5.9
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 - - - -
Net flows in institutional money market funds 5.9 - - - 5.9 -
--- --- --- --- --- ---
Total net flows 19.2 (2.1) 9.2 0.2 6.0 5.9
Market gains and losses/reinvestment 23.6 20.0 1.9 1.5 0.1 0.1
Acquisitions/dispositions, net - - - - - -
Foreign currency translation (2.2) (1.4) (0.4) (0.2) - (0.2)
---- ---- ---- ---- --- ----
September 30, 2016 $820.2 $365.3 $207.0 $48.9 $77.2 $121.8
====== ====== ====== ===== ===== ======
Average AUM $814.1 $364.4 $203.8 $48.4 $78.1 $119.4
By client domicile: (in billions) Total U.S. Canada U.K. Continental
Europe Asia
--------------------------------- ----- ---- ------ ---- ----------- ----
June 30, 2016 $779.6 $512.5 $23.1 $93.8 $72.8 $77.4
Long-term inflows 51.7 32.5 0.8 4.1 6.0 8.3
Long-term outflows (39.5) (24.5) (1.0) (3.6) (6.3) (4.1)
----- ----- ---- ---- ---- ----
Long-term net flows 12.2 8.0 (0.2) 0.5 (0.3) 4.2
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 - - - -
Net flows in institutional money market funds 5.9 1.7 - 4.1 - 0.1
--- --- --- --- --- ---
Total net flows 19.2 10.8 (0.2) 4.6 (0.3) 4.3
Market gains and losses/reinvestment 23.6 13.9 1.3 4.9 2.5 1.0
Acquisitions/dispositions, net - - - - - -
Foreign currency translation (2.2) - (0.3) (2.6) 0.5 0.2
---- --- ---- ---- --- ---
September 30, 2016 $820.2 $537.2 $23.9 $100.7 $75.5 $82.9
====== ====== ===== ====== ===== =====
See the footnotes immediately
following these tables.
Invesco Ltd.
Year-to-Date Assets Under Management
(in billions) September 30, September 30,
2016 2015 % Change
------------
Beginning Assets $775.6 $792.4 (2.1)%
Long-term inflows 140.3 146.1 (4.0)%
Long-term outflows (124.9) (133.8) (6.7)%
------ ------
Long-term net flows 15.4 12.3 25.2%
Net flows in Invesco PowerShares QQQ fund (5.3) (3.8) 39.5%
Net flows in institutional money market funds 11.7 (10.1) N/A
---- -----
Total net flows 21.8 (1.6) N/A
Market gains and losses/reinvestment 31.3 (26.0) N/A
Acquisitions/dispositions, net (1.2) (0.7) 71.4%
Foreign currency translation (7.3) (8.3) (12.0)%
Ending Assets $820.2 $755.8 8.5%
====== ======
Average long-term AUM $678.9 $692.2 (1.9)%
Ending long-term AUM $711.5 $657.3 8.2%
Average AUM $782.0 $798.4 (2.1)%
Gross revenue yield on AUM(a) 61.0 bps 65.3 bps
Gross revenue yield on AUM before performance
fees(a) 60.6 bps 64.2 bps
Net revenue yield on AUM(b) 43.1 bps 46.0 bps
Net revenue yield on AUM before performance fees(b) 42.6 bps 44.7 bps
-------------------------------------------------- ---- --- ---- ---
(in billions) Total AUM Active(e) Passive(e)
------------ --------- -------- ---------
December 31, 2015 $775.6 $636.5 $139.1
Long-term inflows 140.3 106.3 34.0
Long-term outflows (124.9) (97.5) (27.4)
------ ----- -----
Long-term net flows 15.4 8.8 6.6
Net flows in Invesco PowerShares QQQ fund (5.3) - (5.3)
Net flows in institutional money market funds 11.7 12.0 (0.3)
---- ---- ----
Total net flows 21.8 20.8 1.0
Market gains and losses/reinvestment 31.3 25.1 6.2
Acquisitions/dispositions, net (1.2) 2.0 (3.2)
Foreign currency translation (7.3) (7.5) 0.2
September 30, 2016 $820.2 $676.9 $143.3
====== ====== ======
Average AUM $782.0 $648.8 $133.2
Gross revenue yield on AUM(a) 61.0 bps 70.7 bps 14.6 bps
Net revenue yield on AUM(b) 43.1 bps 49.0 bps 14.6 bps
By channel: (in billions) Total Retail Institutional
------------------------ ----- ------ -------------
December 31, 2015 $775.6 $514.8 $260.8
Long-term inflows 140.3 108.2 32.1
Long-term outflows (124.9) (102.6) (22.3)
------ ------ -----
Long-term net flows 15.4 5.6 9.8
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) -
Net flows in institutional money market
funds 11.7 - 11.7
---- --- ----
Total net flows 21.8 0.3 21.5
Market gains and losses/reinvestment 31.3 24.9 6.4
Acquisitions/dispositions, net (1.2) 0.4 (1.6)
Foreign currency translation (7.3) (8.3) 1.0
September 30, 2016 $820.2 $532.1 $288.1
====== ====== ======
See the footnotes immediately
following these tables.
Invesco Ltd.
Year-to-Date Assets Under Management (continued)
By asset class: (in billions) Total Equity Fixed Income Balanced Money Alternatives(c)
Market (d)
---
December 31, 2015 $775.6 $370.9 $187.9 $48.1 $64.6 $104.1
Long-term inflows 140.3 60.8 38.8 7.8 3.2 29.7
Long-term outflows (124.9) (74.7) (24.4) (9.0) (2.9) (13.9)
------ ----- ----- ---- ---- -----
Long-term net flows 15.4 (13.9) 14.4 (1.2) 0.3 15.8
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) - - - -
Net flows in institutional money market funds 11.7 - - - 11.7 -
---- --- --- --- ---- ---
Total net flows 21.8 (19.2) 14.4 (1.2) 12.0 15.8
Market gains and losses/reinvestment 31.3 18.0 7.3 2.5 0.3 3.2
Acquisitions/dispositions, net (1.2) 0.4 (1.1) - 0.4 (0.9)
Foreign currency translation (7.3) (4.8) (1.5) (0.5) (0.1) (0.4)
September 30, 2016 $820.2 $365.3 $207.0 $48.9 $77.2 $121.8
====== ====== ====== ===== ===== ======
Average AUM $782.0 $355.3 $194.3 $47.3 $72.6 $112.5
By client domicile: (in billions) Total U.S. Canada U.K. Continental
Europe Asia
--------------------------------- ----- ---- ------ ---- ----------- ----
December 31, 2015 $775.6 $510.7 $21.7 $104.2 $75.4 $63.6
Long-term inflows 140.3 84.6 2.6 11.5 18.7 22.9
Long-term outflows (124.9) (76.8) (3.2) (12.4) (21.5) (11.0)
------ ----- ---- ----- ----- -----
Long-term net flows 15.4 7.8 (0.6) (0.9) (2.8) 11.9
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) - - - -
Net flows in institutional money market funds 11.7 5.6 0.4 3.3 - 2.4
---- --- --- --- --- ---
Total net flows 21.8 8.1 (0.2) 2.4 (2.8) 14.3
Market gains and losses/reinvestment 31.3 22.1 1.2 5.6 1.5 0.9
Acquisitions/dispositions, net (1.2) (3.6) - - - 2.4
Foreign currency translation (7.3) (0.1) 1.2 (11.5) 1.4 1.7
September 30, 2016 $820.2 $537.2 $23.9 $100.7 $75.5 $82.9
====== ====== ===== ====== ===== =====
See the footnotes immediately
following these tables.
Invesco Ltd.
Quarterly Assets Under Management - Passive(e)
(in billions) Q3-16 Q2-16 % Change Q3-15
------------ ----- ----- -------- -----
Beginning Assets $133.5 $131.1 1.8% $141.6
Long-term inflows 11.8 12.3 (4.1)% 6.8
Long-term outflows (7.9) (7.8) 1.3% (9.1)
---- ---- ----
Long-term net flows 3.9 4.5 (13.3)% (2.3)
Net flows in Invesco PowerShares QQQ fund 1.1 (3.8) N/A (0.9)
Net flows in institutional money market funds (0.1) 0.1 N/A 0.1
---- --- ---
Total net flows 4.9 0.8 512.5% (3.1)
Market gains and losses/reinvestment 4.9 1.5 226.7% (6.8)
Acquisitions/dispositions, net - - N/A -
Foreign currency translation - 0.1 (100.0)% -
--- --- ---
Ending Assets $143.3 $133.5 7.3% $131.7
====== ====== ======
Average long-term AUM $102.2 $95.1 7.5% $99.6
Average AUM $141.0 $131.7 7.1% $138.4
Gross revenue yield on AUM(a) 15.3 bps 14.6 bps 14.9 bps
Gross revenue yield on AUM before performance
fees(a) 15.3 bps 14.6 bps 14.9 bps
Net revenue yield on AUM(b) 15.3 bps 14.6 bps 14.9 bps
Net revenue yield on AUM before performance fees(b) 15.3 bps 14.6 bps 14.9 bps
-------------------------------------------------- ---- --- ---- --- ---- ---
By channel: (in billions) Total Retail Institutional
------------------------ ----- ------ -------------
June 30, 2016 $133.5 $117.0 $16.5
Long-term inflows 11.8 10.9 0.9
Long-term outflows (7.9) (7.7) (0.2)
---- ---- ----
Long-term net flows 3.9 3.2 0.7
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 -
Net flows in institutional money market
funds (0.1) - (0.1)
---- --- ----
Total net flows 4.9 4.3 0.6
Market gains and losses/reinvestment 4.9 4.9 -
Acquisitions/dispositions, net - - -
Foreign currency translation - - -
--- --- ---
September 30, 2016 $143.3 $126.2 $17.1
====== ====== =====
By asset class: (in billions) Total Equity Fixed Balanced Money
Income Market Alternatives(c)
---------------------------- ----- ------ ------ -------- ------ --------------
June 30, 2016 $133.5 $84.9 $38.9 $- $0.2 $9.5
Long-term inflows 11.8 6.9 4.1 - - 0.8
Long-term outflows (7.9) (6.2) (0.7) - - (1.0)
---- ---- ---- --- --- ----
Long-term net flows 3.9 0.7 3.4 - - (0.2)
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 - - - -
Net flows in institutional money market funds (0.1) - - - (0.1) -
---- --- --- --- ---- ---
Total net flows 4.9 1.8 3.4 - (0.1) (0.2)
Market gains and losses/reinvestment 4.9 4.9 0.1 - - (0.1)
Acquisitions/dispositions, net - - - - - -
Foreign currency translation - - - - - -
September 30, 2016 $143.3 $91.6 $42.4 $- $0.1 $9.2
====== ===== ===== === ==== ====
Average AUM $141.0 $90.8 $40.7 $- $0.1 $9.4
See the footnotes immediately
following these tables.
Invesco Ltd.
Quarterly Assets Under Management - Passive(e) (continued)
By client domicile: (in billions) Total U.S. Canada U.K. Continental
Europe Asia
--------------------------------- ----- ---- ------ ---- ----------- ----
June 30, 2016 $133.5 $128.9 $0.5 $- $1.7 $2.4
Long-term inflows 11.8 11.6 0.1 - 0.1 -
Long-term outflows (7.9) (7.7) (0.1) - (0.1) -
---- ---- ---- --- ---- ---
Long-term net flows 3.9 3.9 - - - -
Net flows in Invesco PowerShares QQQ fund 1.1 1.1 - - - -
Net flows in institutional money market funds (0.1) - - - - (0.1)
---- --- --- --- --- ----
Total net flows 4.9 5.0 - - - (0.1)
Market gains and losses/reinvestment 4.9 4.7 - - 0.2 -
Acquisitions/dispositions, net - - - - - -
Foreign currency translation - - - - - -
September 30, 2016 $143.3 $138.6 $0.5 $- $1.9 $2.3
====== ====== ==== === ==== ====
See the footnotes immediately
following these tables.
Invesco Ltd.
Year-to-date Assets Under Management - Passive(e)
(in billions) September 30, September 30,
2016 2015 % Change
------------ -------------- -------------- --------
Beginning Assets $139.1 $141.4 (1.6)%
Long-term inflows 34.0 25.7 32.3%
Long-term outflows (27.4) (24.0) 14.2%
----- -----
Long-term net flows 6.6 1.7 288.2%
Net flows in Invesco PowerShares QQQ fund (5.3) (3.8) 39.5%
Net flows in institutional money market funds (0.3) 0.1 N/A
---- ---
Total net flows 1.0 (2.0) N/A
Market gains and losses/reinvestment 6.2 (7.0) N/A
Acquisitions/dispositions, net (3.2) (0.7) 357.1%
Foreign currency translation 0.2 - N/A
Ending Assets $143.3 $131.7 8.8%
====== ======
Average long-term AUM $95.6 $102.6 (6.8)%
Average AUM $133.2 $141.7 (6.0)%
Gross revenue yield on AUM(a) 14.6 bps 14.5 bps
Gross revenue yield on AUM before performance
fees(a) 14.6 bps 14.5 bps
Net revenue yield on AUM(b) 14.6 bps 14.5 bps
Net revenue yield on AUM before performance fees(b) 14.6 bps 14.5 bps
-------------------------------------------------- ---- --- ---- ---
By channel: (in billions) Total Retail Institutional
------------------------ ----- ------ -------------
December 31, 2015 $139.1 $118.7 $20.4
Long-term inflows 34.0 32.1 1.9
Long-term outflows (27.4) (25.6) (1.8)
----- ----- ----
Long-term net flows 6.6 6.5 0.1
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) -
Net flows in institutional money market
funds (0.3) - (0.3)
---- --- ----
Total net flows 1.0 1.2 (0.2)
Market gains and losses/reinvestment 6.2 6.3 (0.1)
Acquisitions/dispositions, net (3.2) - (3.2)
Foreign currency translation 0.2 - 0.2
September 30, 2016 $143.3 $126.2 $17.1
====== ====== =====
By asset class: (in billions) Total Equity Fixed Balanced Money
Income Market Alternatives(c)
---------------------------- ----- ------ ------ -------- ------ --------------
December 31, 2015 $139.1 91.0 38.6 - 0.4 $9.1
Long-term inflows 34.0 21.7 9.7 - - 2.6
Long-term outflows (27.4) (21.0) (4.0) - - (2.4)
----- ----- ---- --- --- ----
Long-term net flows 6.6 0.7 5.7 - - 0.2
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) - - - -
Net flows in institutional money market funds (0.3) - - - (0.3) -
---- --- --- --- ---- ---
Total net flows 1.0 (4.6) 5.7 - (0.3) 0.2
Market gains and losses/reinvestment 6.2 5.2 0.8 - - 0.2
Acquisitions/dispositions, net (3.2) - (2.7) - - (0.5)
Foreign currency translation 0.2 - - - - 0.2
--- --- --- ---
September 30, 2016 $143.3 $91.6 $42.4 $- $0.1 $9.2
====== ===== ===== === ==== ====
Average AUM $133.2 $86.3 $37.9 $- $0.1 $8.9
See the footnotes immediately
following these tables.
Invesco Ltd.
Year-to-date Assets Under Management - Passive(e) (continued)
By client domicile: (in billions) Total U.S. Canada U.K. Continental
Europe Asia
--------------------------------- ----- ---- ------ ---- ----------- ----
December 31, 2015 $139.1 134.4 0.4 - 1.9 2.4
Long-term inflows 34.0 33.4 0.3 - 0.3 -
Long-term outflows (27.4) (26.7) (0.2) - (0.5) -
----- ----- ---- --- ---- ---
Long-term net flows 6.6 6.7 0.1 - (0.2) -
Net flows in Invesco PowerShares QQQ fund (5.3) (5.3) - - - -
Net flows in institutional money market funds (0.3) - - - - (0.3)
---- --- --- --- --- ----
Total net flows 1.0 1.4 0.1 - (0.2) (0.3)
Market gains and losses/reinvestment 6.2 6.0 - - 0.2 -
Acquisitions/dispositions, net (3.2) (3.2) - - - -
Foreign currency translation 0.2 - - - - 0.2
September 30, 2016 $143.3 $138.6 $0.5 $- $1.9 $2.3
====== ====== ==== === ==== ====
See the footnotes immediately
following these tables.
Invesco Ltd.
Footnotes to the Assets Under Management Tables
(a) Gross revenue yield on AUM is equal to
annualized total operating revenues
divided by average AUM, excluding
China joint venture (JV) AUM. For
quarterly AUM, our share of the
average AUM in the third quarter for
our JVs in China was $10.4 billion
(second quarter 2016: $8.6 billion;
third quarter 2015: $6.0 billion).
For year to date, our share of the
average AUM for our JVs in China in
the nine months ended September 30,
2016 was $8.9 billion (nine months
ended September 30, 2015: $6.0
billion). It is appropriate to
exclude the average AUM of our China
JVs for purposes of computing gross
revenue yield on AUM, because the
revenues resulting from these AUM are
not presented in our operating
revenues. Under U.S. GAAP, our share
of the net income of the JVs is
recorded as equity in earnings of
unconsolidated affiliates on our
Condensed Consolidated Statements of
Income. Gross revenue yield, the most
comparable U.S. GAAP-based measure
to net revenue yield, is not
considered a meaningful effective fee
rate measure. The numerator of the
gross revenue yield measure,
operating revenues, excludes the
management fees earned from CIP;
however, the denominator of the
measure includes the AUM of these
investment products. Therefore, the
gross revenue yield measure is not
considered representative of the
company's true effective fee rate
from AUM.
(b) Net revenue yield on AUM is equal to
annualized net revenues divided by
average AUM. See the reconciliations
of U.S. GAAP to Non-GAAP Information
on pages 8 and 9 of this release for
a reconciliation of operating
revenues to net revenues.
(c) The alternatives asset class includes
absolute return, commodities,
currencies, financial structures,
global macro, long/short equity,
managed futures, multi-alternatives,
private capital - direct, private
capital - fund of funds, private
direct real estate, public real
estate securities, senior secured
loans and custom solutions.
(d) Long-term AUM excludes institutional
money market AUM and PowerShares QQQ
AUM. Ending AUM as of September 30,
2016 includes $69.2 billion in
institutional money market AUM and
$39.5 billion in PowerShares QQQ AUM.
Ending retail money market AUM as of
September 30, 2016, included in long-
term AUM, were $8.0 billion. Ending
AUM as of June 30, 2016 included
$63.1 billion in institutional money
market AUM and $34.8 billion in
PowerShares QQQ AUM. Ending AUM as of
September 30, 2015 included $61.3
billion in institutional money market
AUM and $37.2 billion in PowerShares
QQQ AUM.
(e) Passive AUM includes ETFs, UITs, non-
fee earning leverage and other
passive mandates. Active AUM are
total AUM less Passive AUM.
Invesco Ltd.
Investment Capabilities Performance Overview
Benchmark Comparison Peer Group Comparison
-------------------- ---------------------
% of AUM Ahead of Benchmark % of AUM In Top Half of Peer
Group
--------------------------- ----------------------------
Equities 1yr 3yr 5yr 1yr 3yr 5yr
--- --- --- --- --- ---
U.S. Core 5% - % 4% 5% - % 5%
--------- --- --- --- --- --- --- --- ---
U.S. Growth 54% 37% 37% 82% 96% 36%
----------- --- --- --- --- --- ---
U.S. Value - % 36% 37% 22% 54% 86%
---------- --- --- --- --- --- --- ---
Sector 11% 2% 56% 11% 7% 16%
------ --- --- --- --- --- ---
U.K. 3% 93% 100% 3% 92% 100%
---- --- --- --- --- --- ---
Canadian 13% 21% 48% 13% 21% 46%
-------- --- --- --- --- --- ---
Asian 82% 88% 91% 76% 69% 76%
----- --- --- --- --- --- ---
European 48% 78% 100% 54% 74% 77%
-------- --- --- --- --- --- ---
Global 43% 53% 56% 58% 66% 80%
------ --- --- --- --- --- ---
Global Ex U.S. and Emerging Markets 21% 98% 99% 93% 89% 98%
----------------------------------- --- --- --- --- --- ---
Fixed Income
Money Market 98% 64% 64% 98% 98% 98%
------------ --- --- --- --- --- ---
U.S. Fixed Income 90% 90% 95% 82% 86% 85%
----------------- --- --- --- --- --- ---
Global Fixed Income 44% 45% 94% 15% 15% 89%
Stable Value 100% 100% 100% 100% 100% 100%
------------ --- --- --- --- --- ---
Other
Alternatives 62% 48% 53% 64% 11% 30%
------------ --- --- --- --- --- ---
Balanced 56% 56% 44% 95% 89% 92%
-------- --- --- --- --- --- ---
Note: AUM measured in the one-, three-,
and five-year peer group rankings
represents 57%, 55%, and 55% of
total Invesco AUM, respectively, and
AUM measured versus benchmark on a
one-, three-, and five-year basis
represents 71%, 68%, and 65% of
total Invesco AUM, respectively, as
of 9/30/2016. Peer group rankings
are sourced from a widely-used
third party ranking agency in each
fund's market (Lipper, Morningstar,
IA, Russell, Mercer, eVestment
Alliance, SITCA, Value Research) and
are asset-weighted in USD. Rankings
are as of prior quarter-end for
most institutional products and
preceding 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. Excludes
passive products, closed-end funds,
private equity limited partnerships,
non-discretionary funds, unit
investment trusts, fund of funds
with component funds managed by
Invesco, stable value building block
funds, 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.
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SOURCE Invesco Ltd.
