Invesco Reports Results for the Three Months and Year Ended December 31, 2023
- Net long-term inflows of $6.7 billion for the quarter
- Ending AUM increased by 6.6% to $1,585.3 billion
- Announced a fourth quarter cash dividend of $0.20 per share to holders of common shares
- Diluted EPS of $(1.64) in Q4 2023
- Adjusted operating income decreased by 10.9% in Q4 2023 compared to Q3 2023
- Adjusted net income attributable to Invesco Ltd. decreased by 10.8% in 2023 compared to 2022
Insights
The reported intangible asset impairment of $1.2 billion is a significant factor that has impacted Invesco's fourth-quarter earnings, resulting in a substantial diluted EPS loss of $(1.64). However, when adjusted for this non-cash charge, the EPS stands at $0.47, indicating that the core operations remain profitable. The impairment suggests a revaluation of assets, potentially due to changes in market conditions or a reassessment of the assets' future profitability. This can be a red flag for investors, signaling that past acquisitions may not yield the expected returns. Moreover, the reduction in net debt to $20.3 million and the increase in cash reserves to $1.5 billion reflect a strengthened balance sheet, which is typically viewed positively as it suggests improved financial stability and liquidity.
However, the decline in adjusted operating margin from the previous year, along with a decrease in net revenues, highlights challenges in maintaining profitability levels. The shift in asset mix towards lower yield products may suggest a strategic move or market-driven necessity, but it also indicates pressure on revenue streams. The organic growth rate and net inflows, particularly in ETFs and active fixed income, are positive indicators of competitive strength in these areas, which could be pivotal for future growth. Investors should assess whether these inflows and the firm's positioning can offset the impact of the impairment and drive long-term value creation.
Invesco's net long-term inflows of $6.7 billion for the quarter and $10.2 billion for the full year, with significant contributions from ETFs, active fixed income and Greater China, indicate a strong demand for these products. This is consistent with broader market trends where investors are increasingly gravitating towards ETFs due to their lower costs, transparency and liquidity. The reported 17% organic growth in Invesco's global ETF platform could suggest that the firm is effectively capitalizing on this trend.
The geographic distribution of inflows and outflows provides insight into regional market dynamics. Notably, the Asia Pacific and Americas regions experienced net inflows, while the EMEA region faced outflows. These patterns may reflect regional economic conditions, investor sentiment and Invesco's market penetration. The firm's ability to attract inflows in a challenging environment for organic asset growth speaks to its competitive positioning and the appeal of its product offerings.
The non-GAAP financial measures used, such as adjusted operating income and adjusted diluted EPS, provide an alternative view of Invesco's performance by excluding certain items like the intangible asset impairment. While these measures can offer a clearer picture of ongoing operational efficiency, it is crucial for stakeholders to understand the adjustments made and the rationale behind them. The reconciliation to GAAP measures is a regulatory requirement to ensure transparency and allow for a standardized comparison with other firms in the industry. The effective tax rates and their underlying factors, such as the resolution of tax matters and changes in the mix of income across jurisdictions, are also critical for assessing the sustainability of the reported tax benefits.
Invesco Announces Fourth Quarter Diluted EPS of
Intangible impairment of
$6.7 billion $12.4 billion $1.4 billion $1.5 billion Greater China and$0.2 billion $10.2 billion $32.7 billion $1,585.3 billion 6.6% from the prior quarter and an increase of12.5% from the prior year-end- (76.1)% operating margin in Q4 2023 includes
$1.2 billion 26.3% adjusted operating margin(1) was not impacted by the intangible impairment $22 million - Net debt(2) reduced to
$20.3 million $1.5 billion
Update from Andrew Schlossberg, President and CEO
"Organic flow growth outperformed in the fourth quarter and the year during a challenging environment for organic asset growth in 2023. Led by
"Over the past year, we streamlined our business to more effectively and efficiently improve investment and financial performance, address emerging trends in the asset management industry, and meet client demand. We will continue to invest in high-demand solutions while maintaining a disciplined approach to expenses, focusing on profitable growth, and further strengthening our balance sheet. Our range of investment capabilities, geographic positioning, discipline to drive performance, and simplified organizational structure allow us to execute at pace with ever changing client needs."
"As we enter 2024, we are well positioned to help clients navigate the impact of evolving market dynamics and subsequent changes to their portfolios. As market sentiment improves, this should translate to even greater scale, performance, and improved profitability for Invesco. I would like to thank my colleagues, Executive Leadership Team, and our Board of Directors for their efforts in 2023, their focus on our clients, and support for a smooth transition during the year. I am excited for the future of Invesco."
(1) | Represents non-GAAP financial measure. See the information on pages 9 through 12 for a reconciliation to the most directly comparable | |||
(2) | Net debt: Debt less Cash and cash equivalents | |||
Net flows:
Net long-term inflows were
Retail and institutional net long-term inflows were
Net market gains and foreign exchange rate movements increased AUM in the fourth quarter by
Summary of net flows (in billions) | Q4-23 | Q3-23 | Q4-22 | 2023 | 2022 | |||||
Active | $ (7.2) | $ (10.9) | $ (10.5) | $ (29.0) | $ (28.3) | |||||
Passive | 13.9 | 13.5 | 7.3 | 39.2 | 27.8 | |||||
Net long-term flows | 6.7 | 2.6 | (3.2) | 10.2 | (0.5) | |||||
Non-management fee earning AUM | 3.1 | 3.6 | (2.1) | 6.2 | (3.2) | |||||
Money market | (18.1) | (16.1) | 30.1 | (11.1) | 56.4 | |||||
Total net flows | $ (8.3) | $ (9.9) | $ 5.3 | |||||||
Annualized long-term organic growth rate (1) | 2.4 % | 0.9 % | (1.2) % | 0.9 % | — % | |||||
(1) | Annualized long-term organic growth rate is calculated using net long-term flows (annualized) divided by average long-term AUM for the period. Long-term AUM excludes money market and non-management fee earning AUM. |
Fourth Quarter Highlights:
Financial Results | Q4-23 | Q3-23 | Q4-23 vs. | Q4-22 | Q4-23 vs. | |||||
Operating revenues | | | (2.0) % | | (2.1) % | |||||
Operating income/(loss) | ( | | N/A | | N/A | |||||
Operating margin | (76.1 %) | 15.8 % | 17.0 % | |||||||
Net income/(loss) attributable to Invesco Ltd. | ( | | N/A | | N/A | |||||
Diluted EPS | ( | N/A | N/A | |||||||
Adjusted Financial Measures (1) | ||||||||||
Net revenues | | | (4.8) % | | (5.6) % | |||||
Adjusted operating income | | | (10.9) % | | (18.7) % | |||||
Adjusted operating margin | 26.3 % | 28.2 % | 30.6 % | |||||||
Adjusted net income attributable to Invesco Ltd. | | | 33.6 % | | 19.6 % | |||||
Adjusted diluted EPS | 34.3 % | 20.5 % | ||||||||
Assets Under Management | ||||||||||
Ending AUM | | | 6.6 % | | 12.5 % | |||||
Average AUM | | | (0.9) % | | 8.9 % | |||||
Headcount | 8,489 | 8,603 | (1.3) % | 8,611 | (1.4) % |
2023 Highlights:
Financial Results | 2023 | 2022 | % Change | |||
Operating revenues | | | (5.5) % | |||
Operating income/(loss) | ( | | N/A | |||
Operating margin | (7.6 %) | 21.8 % | ||||
Net income/(loss) attributable to Invesco Ltd. | ( | | N/A | |||
Diluted EPS | ( | N/A | ||||
Adjusted Financial Measures (1) | ||||||
Net revenues | | | (7.2) % | |||
Adjusted operating income | | | (24.9) % | |||
Adjusted operating margin | 28.2 % | 34.8 % | ||||
Adjusted net income attributable to Invesco Ltd. | | | (10.8) % | |||
Adjusted diluted EPS | (10.1) % | |||||
Assets Under Management | ||||||
Ending AUM | | | 12.5 % | |||
Average AUM | | | 3.3 % |
(1) | Represents non-GAAP financial measure. See the information on pages 9 through 12 for a reconciliation to the most directly comparable |
Fourth Quarter 2023 compared to Third Quarter 2023
Operating revenues and expenses: Operating revenues decreased
Operating expenses increased
Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was
The tax provision was a benefit of
Diluted earnings per common share: Diluted earnings per common share was
Fourth Quarter 2023 compared to Fourth Quarter 2022
Operating revenues and expenses: Operating revenues decreased
Excluding the intangible asset impairment, operating expenses increased
The tax provision was a benefit of
Adjusted(1) Operating Results:
Fourth Quarter 2023 compared to Third Quarter 2023
Net revenue and adjusted operating expenses: Net revenues in the fourth quarter of 2023 decreased
Adjusted operating expenses in the fourth quarter 2023 decreased
Adjusted operating income decreased
Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was a loss of
The effective tax rate on adjusted net income decreased to
Adjusted diluted earnings per common share was
Fourth Quarter 2023 compared to Fourth Quarter 2022
Net revenues and adjusted operating expenses: Net revenue in the fourth quarter of 2023 decreased
Adjusted operating expenses increased
Adjusted operating income decreased
The effective tax rate on adjusted net income decreased to
(1) | Represents non-GAAP financial measure. See the information on pages 9 through 12 for a reconciliation to the most directly comparable | ||
Capital Management:
Cash and cash equivalents:
Debt:
Net Debt(2):
Common shares outstanding (end of period): 449.5 million
Diluted common shares outstanding (end of period): 453.0 million
Dividends paid:
(2) | Net debt: Debt less Cash and cash equivalents | ||
Common dividends declared: The company is announcing a fourth quarter cash dividend of
Preferred dividends declared: The company is announcing a preferred cash dividend of
About Invesco Ltd.
Invesco is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed
Members of the investment community and general public are invited to listen to the conference call today, January 23, 2024, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-803-2143 for
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, capital expenditures, and assets under management and could differ materially from events that actually occur in the future due to known and unknown risks and other important factors, including, but not limited to, industry or market conditions, geopolitical events and pandemics or health crises and their respective 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. None of this information should be considered in isolation from, or as a substitute for, historical financial 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.
Investor Relations Contacts: | Greg Ketron | 404-724-4299 | |
Jennifer Church | 404-439-3428 | ||
Media Relations Contact: | Andrea Raphael | 212-323-4202 |
Invesco Ltd. | |||||||||
(Unaudited, in millions, other than per share amounts) | |||||||||
Q4-23 | Q3-23 | % Change | Q4-22 | % Change | |||||
Operating revenues: | |||||||||
Investment management fees | (3.6) % | (0.4) % | |||||||
Service and distribution fees | 344.6 | 353.5 | (2.5) % | 332.5 | 3.6 % | ||||
Performance fees | 19.5 | 2.0 | 875.0 % | 55.0 | (64.5) % | ||||
Other | 46.0 | 45.2 | 1.8 % | 48.8 | (5.7) % | ||||
Total operating revenues | 1,413.4 | 1,442.0 | (2.0) % | 1,443.4 | (2.1) % | ||||
Operating expenses: | |||||||||
Third-party distribution, service and advisory | 459.4 | 448.2 | 2.5 % | 447.3 | 2.7 % | ||||
Employee compensation | 468.8 | 478.5 | (2.0) % | 464.2 | 1.0 % | ||||
Marketing | 25.7 | 23.7 | 8.4 % | 31.8 | (19.2) % | ||||
Property, office and technology | 139.1 | 135.4 | 2.7 % | 139.6 | (0.4) % | ||||
General and administrative | 135.9 | 117.2 | 16.0 % | 109.6 | 24.0 % | ||||
Transaction, integration, and restructuring | — | — | N/A | (13.6) | (100.0) % | ||||
Amortization and impairment of intangible assets | 1,260.3 | 11.3 | 11,053.1 % | 19.4 | 6,396.4 % | ||||
Total operating expenses | 2,489.2 | 1,214.3 | 105.0 % | 1,198.3 | 107.7 % | ||||
Operating income/(loss) | (1,075.8) | 227.7 | N/A | 245.1 | N/A | ||||
Other income/(expense): | |||||||||
Equity in earnings of unconsolidated affiliates | 9.1 | 16.9 | (46.2) % | 27.8 | (67.3) % | ||||
Interest and dividend income | 21.3 | 10.8 | 97.2 % | 17.8 | 19.7 % | ||||
Interest expense | (16.8) | (17.3) | (2.9) % | (17.6) | (4.5) % | ||||
Other gains/(losses), net | 73.0 | (23.3) | N/A | 30.6 | 138.6 % | ||||
Other income/(expense) of CIP, net | 55.7 | 15.2 | 266.4 % | 86.7 | (35.8) % | ||||
Income/(loss) before income taxes | (933.5) | 230.0 | N/A | 390.4 | N/A | ||||
Income tax provision | 266.4 | (61.3) | N/A | (89.6) | N/A | ||||
Net income/(loss) | (667.1) | 168.7 | N/A | 300.8 | N/A | ||||
Net (income)/loss attributable to noncontrolling | (16.0) | 21.9 | N/A | (53.8) | (70.3) % | ||||
Less: Dividends declared on preferred shares | (59.2) | (59.2) | — % | (59.2) | — % | ||||
Net income/(loss) attributable to Invesco Ltd. | ( | N/A | N/A | ||||||
Earnings per common share: | |||||||||
---basic | ( | N/A | N/A | ||||||
---diluted | ( | N/A | N/A | ||||||
Average common shares outstanding: | |||||||||
---basic | 451.7 | 451.7 | — % | 457.0 | (1.2) % | ||||
---diluted | 453.1 | 453.1 | — % | 459.1 | (1.3) % | ||||
Invesco Ltd. | |||||
(Unaudited, in millions, other than per share amounts) | |||||
For the year ended | |||||
2023 | 2022 | % Change | |||
Operating revenues: | |||||
Investment management fees | $ 4,358.4 | (5.8) % | |||
Service and distribution fees | 1,374.6 | 1,405.5 | (2.2) % | ||
Performance fees | 46.7 | 68.2 | (31.5) % | ||
Other | 189.1 | 216.8 | (12.8) % | ||
Total operating revenues | 5,716.4 | 6,048.9 | (5.5) % | ||
Operating expenses: | |||||
Third-party distribution, service and advisory | 1,825.2 | 1,886.2 | (3.2) % | ||
Employee compensation | 1,885.8 | 1,725.1 | 9.3 % | ||
Marketing | 103.4 | 114.9 | (10.0) % | ||
Property, office and technology | 546.0 | 539.8 | 1.1 % | ||
General and administrative | 450.4 | 380.2 | 18.5 % | ||
Transaction, integration, and restructuring | 41.6 | 21.2 | 96.2 % | ||
Amortization and impairment of intangible assets | 1,298.8 | 63.8 | 1,935.7 % | ||
Total operating expenses | 6,151.2 | 4,731.2 | 30.0 % | ||
Operating income/(loss) | (434.8) | 1,317.7 | N/A | ||
Other income/(expense): | |||||
Equity in earnings of unconsolidated affiliates | 71.3 | 106.1 | (32.8) % | ||
Interest and dividend income | 47.8 | 24.4 | 95.9 % | ||
Interest expense | (70.5) | (85.2) | (17.3) % | ||
Other gains and losses, net | 98.0 | (139.5) | N/A | ||
Other income/(expense) of CIP, net | 50.3 | 24.2 | 107.9 % | ||
Income/(loss) before income taxes | (237.9) | 1,247.7 | N/A | ||
Income tax provision | 69.7 | (322.2) | N/A | ||
Net income/(loss) | (168.2) | 925.5 | N/A | ||
Net (income)/loss attributable to noncontrolling interests in consolidated | 71.3 | (4.8) | N/A | ||
Less: Dividends declared on preferred shares | (236.8) | (236.8) | — % | ||
Net income/(loss) attributable to Invesco Ltd. | ( | N/A | |||
Earnings per common share: | |||||
---basic | ( | N/A | |||
---diluted | ( | N/A | |||
Average common shares outstanding: | |||||
---basic | 454.8 | 457.5 | (0.6) % | ||
---diluted | 456.2 | 459.5 | (0.7) % | ||
Invesco Ltd.
Non-GAAP Information and Reconciliations
We utilize 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 the adjusted measures provide valuable insight into our ongoing operational performance and assist in comparisons to our competitors. These measures also assist management with the establishment of operational budgets and forecasts. The most directly comparable
The following are reconciliations of operating revenues, operating income (and by calculation, operating margin), and net income attributable to Invesco Ltd. (and by calculation, diluted EPS) on a
Reconciliation of Operating revenues to Net revenues:
Quarter | Year | |||||||||
(in millions) | Q4-23 | Q3-23 | Q4-22 | 2023 | 2022 | |||||
Operating revenues, | ||||||||||
Revenue Adjustments (2) | ||||||||||
Investment management fees | (187.5) | (193.7) | (180.2) | (766.4) | (764.7) | |||||
Service and distribution fees | (236.3) | (219.2) | (231.0) | (911.7) | (961.1) | |||||
Other | (35.6) | (35.3) | (36.1) | (147.1) | (160.4) | |||||
Total Revenue Adjustments | (459.4) | (448.2) | (447.3) | (1,825.2) | (1,886.2) | |||||
Invesco Great Wall (1) | 79.5 | 90.7 | 97.9 | 368.3 | 432.7 | |||||
CIP (3) | 12.4 | 13.7 | 14.1 | 51.2 | 49.6 | |||||
Net revenues | ||||||||||
Reconciliation of Operating income/(loss) to Adjusted operating income:
Quarter | Year | ||||||||
(in millions) | Q4-23 | Q3-23 | Q4-22 | 2023 | 2022 | ||||
Operating income/(loss), | ( | ( | |||||||
Invesco Great Wall (1) | 41.6 | 52.1 | 65.0 | 201.9 | 262.7 | ||||
CIP (3) | 23.7 | 24.7 | 19.1 | 84.8 | 65.7 | ||||
Transaction, integration, and restructuring (4) | — | — | (13.6) | 41.6 | 21.2 | ||||
Amortization and impairment of intangible assets (8) | 1,260.3 | 11.3 | 19.4 | 1,298.8 | 63.8 | ||||
Compensation expense related to market valuation | 25.6 | (6.6) | 13.9 | 41.2 | (46.3) | ||||
General and administrative (7) | — | — | (10.0) | (20.0) | (70.0) | ||||
Adjusted operating income | |||||||||
Operating margin (5) | (76.1 %) | 15.8 % | 17.0 % | (7.6 %) | 21.8 % | ||||
Adjusted operating margin (6) | 26.3 % | 28.2 % | 30.6 % | 28.2 % | 34.8 % | ||||
Reconciliation of Net income attributable to Invesco Ltd. to Adjusted net income attributable to Invesco Ltd.
Quarter | Year | |||||||||
(in millions) | Q4-23 | Q3-23 | Q4-22 | 2023 | 2022 | |||||
Net income/(loss) attributable to Invesco Ltd., | ( | ( | ||||||||
Adjustments (excluding tax): | ||||||||||
Transaction, integration, and restructuring (4) | — | — | (13.6) | 41.6 | 21.2 | |||||
Amortization and impairment of intangible assets (8) | 1,260.3 | 11.3 | 19.4 | 1,298.8 | 63.8 | |||||
Deferred compensation plan market valuation changes and | (18.0) | 15.9 | (16.3) | (18.6) | 73.6 | |||||
General and administrative (7) | — | — | (10.0) | (20.0) | (70.0) | |||||
Total adjustments excluding tax | ( | |||||||||
Tax adjustment for amortization of intangible assets and goodwill (9) | 4.5 | 4.4 | 2.9 | 16.7 | 14.2 | |||||
Tax adjustment for impairment of intangible assets | (296.1) | — | — | (296.1) | — | |||||
Other tax effects of adjustments above | 4.3 | (3.8) | 7.6 | 1.0 | (13.5) | |||||
Adjusted net income attributable to Invesco Ltd (11) | ||||||||||
Average common shares outstanding - diluted | 453.1 | 453.1 | 459.1 | 456.2 | 459.5 | |||||
Diluted EPS | ( | ( | ||||||||
Adjusted diluted EPS (12) | ||||||||||
Reconciliation of Operating expenses to Adjusted operating expenses:
Quarter | Year | |||||||||
(in millions) | Q4-23 | Q3-23 | Q4-22 | 2023 | 2022 | |||||
Operating expenses, | ||||||||||
Invesco Great Wall (1) | 37.9 | 38.6 | 32.9 | 166.4 | 170.0 | |||||
Third party distribution, service, and advisory expenses | (459.4) | (448.2) | (447.3) | (1,825.2) | (1,886.2) | |||||
CIP | (11.3) | (11.0) | (5.0) | (33.6) | (16.1) | |||||
Transaction, integration, and restructuring (4) | — | — | 13.6 | (41.6) | (21.2) | |||||
Amortization and impairment of intangible assets (8) | (1,260.3) | (11.3) | (19.4) | (1,298.8) | (63.8) | |||||
Compensation expense related to market valuation | (25.6) | 6.6 | (13.9) | (41.2) | 46.3 | |||||
General and administrative (7) | — | — | 10.0 | 20.0 | 70.0 | |||||
Adjusted operating expenses | ||||||||||
Employee compensation, | ||||||||||
Invesco Great Wall (1) | 27.6 | 28.8 | 24.1 | 126.2 | 133.0 | |||||
Compensation expense related to market valuation | (25.6) | 6.6 | (13.9) | (41.2) | 46.3 | |||||
Adjusted employee compensation | ||||||||||
Marketing, | ||||||||||
Invesco Great Wall (1) | 2.5 | 2.8 | 2.1 | 11.3 | 11.2 | |||||
Adjusted marketing | ||||||||||
Property, office and technology, | ||||||||||
Invesco Great Wall (1) | 5.4 | 5.0 | 5.0 | 20.8 | 18.9 | |||||
Adjusted property, office and technology | ||||||||||
General and administrative, | ||||||||||
Invesco Great Wall (1) | 2.4 | 2.0 | 1.7 | 8.1 | 6.9 | |||||
CIP (3) | (11.3) | (11.0) | (5.0) | (33.6) | (16.1) | |||||
Recoveries of previously disclosed losses(7) | — | — | 10.0 | 20.0 | 70.0 | |||||
Adjusted general and administrative | ||||||||||
Transaction, integration, and restructuring, | $— | $— | ( | |||||||
Transaction, integration, and restructuring(4) | — | — | 13.6 | (41.6) | (21.2) | |||||
Adjusted transaction, integration, and restructuring | $ — | $ — | $ — | $ — | $ — | |||||
Amortization and impairment of intangible assets, | ||||||||||
Amortization and impairment of intangible assets | (1,260.3) | (11.3) | (19.4) | (1,298.8) | (63.8) | |||||
Adjusted amortization and impairment of intangible assets | $ — | $ — | $ — | $ — | $ — | |||||
(1) | Invesco Great Wall: The company reflects |
(2) | Revenue adjustments: The company calculates net revenues by reducing operating revenues to exclude fees that are passed through to external parties who perform functions on behalf of, and distribute, the company's managed funds. The net revenue presentation assists in identifying the revenue contribution generated by the company, removing distortions caused by the differing distribution channel fees and allowing for a fair comparison with |
Investment management fees are adjusted by renewal commissions and certain administrative fees. Service and distributions fees are primarily adjusted by distribution fees passed through to broker dealers for certain share classes and pass through fund-related costs. Other revenues are primarily adjusted by transaction fees passed through to third parties. | |
3) | CIP: The company believes that the CIP may impact a reader's analysis of our underlying results of operations and could result in investor confusion or the production of information about the company by analysts or external credit rating agencies that is not reflective of the underlying results of operations and financial condition of the company. Accordingly, the company believes that it is appropriate to adjust operating revenues and operating income for the impact of CIP in calculating the respective net revenues and adjusted operating income (and by calculation, adjusted operating margin). |
(4) | Transaction, integration and restructuring: The company believes it is useful to adjust for the transaction, integration and restructuring charges in arriving at adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted EPS, as this will aid comparability of our results period to period, and aid comparability with peer companies that may not have similar acquisition and restructuring related charges. |
(5) | Operating margin is equal to operating income divided by operating revenues. |
(6) | Adjusted operating margin is equal to adjusted operating income divided by net revenues. |
(7) | General and administrative: The adjustments remove insurance recoveries related to fund-related losses incurred in prior periods. |
(8) | Amortization and impairment of intangible assets: The company removes amortization and non-cash impairment expense related to acquired assets in arriving at adjusted operating income, adjusted operating margin and adjusted diluted EPS, as this will aid comparability of our results period to period, and aid comparability with peer companies that may not have similar acquisition-related charges. |
(9) | Tax adjustment for amortization of intangible assets and goodwill: The company reflects the tax benefit realized on the tax amortization of goodwill and intangible assets in adjusted net income. The company believes it is useful to include this tax benefit in arriving at the adjusted diluted EPS measure. |
(10) | Market movement on deferred compensation plan liabilities: Certain deferred compensation plan awards involve a return to the employee linked to the appreciation (depreciation) of specified investments. The company hedges economically the exposure to market movements for these investments. Since these plans are hedged economically, the company believes it is useful to reflect the offset ultimately achieved from hedging the market exposure in the calculation of adjusted operating income (and by calculation, adjusted operating margin) and adjusted net income (and by calculation, adjusted diluted EPS) to produce results that will be more comparable period to period. |
(11) | The effective tax rate on adjusted net income attributable to Invesco Ltd. is |
(12) | Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted common shares outstanding. |
Invesco Ltd. | |||||||||||||
Assets Under Management | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
(in billions) | December | September | % | December | December | December | % | ||||||
Beginning Assets | (3.3) % | (12.5) % | |||||||||||
Long-term inflows | 81.0 | 67.4 | 20.2 % | 73.9 | 299.1 | 330.3 | (9.4) % | ||||||
Long-term outflows | (74.3) | (64.8) | 14.7 % | (77.1) | (288.9) | (330.8) | (12.7) % | ||||||
Net long-term flows | 6.7 | 2.6 | 157.7 % | (3.2) | 10.2 | (0.5) | N/A | ||||||
Net flows in non-management fee | 3.1 | 3.6 | (13.9) % | (2.1) | 6.2 | (3.2) | N/A | ||||||
Net flows in money market funds | (18.1) | (16.1) | 12.4 % | 30.1 | (11.1) | 56.4 | N/A | ||||||
Total net flows | (8.3) | (9.9) | (16.2) % | 24.8 | 5.3 | 52.7 | (89.9) % | ||||||
Reinvested distributions | 8.4 | 1.1 | 663.6 % | 11.7 | 11.5 | 15.2 | (24.3) % | ||||||
Market gains and losses | 86.9 | (34.2) | N/A | 34.8 | 161.1 | (243.5) | N/A | ||||||
Dispositions | — | (1.4) | N/A | — | (1.4) | — | N/A | ||||||
Foreign currency translation | 11.0 | (6.5) | N/A | 14.6 | (0.4) | (26.1) | (98.5) % | ||||||
Ending Assets | 6.6 % | 12.5 % | |||||||||||
Ending long-term AUM | 7.8 % | 9.8 % | |||||||||||
Average long-term AUM | (0.5) % | (1.2) % | |||||||||||
Average AUM | (0.9) % | 3.3 % | |||||||||||
Average QQQ AUM | 3.0 % | 10.9 % | |||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||
By investment approach (in billions) | Active(d) | Passive(d) | Active(d) | Passive(d) | |||
Beginning Assets | |||||||
Long-term inflows | 41.3 | 39.7 | 164.3 | 134.8 | |||
Long-term outflows | (48.5) | (25.8) | (193.3) | (95.6) | |||
Net long-term flows | (7.2) | 13.9 | (29.0) | 39.2 | |||
Net flows in non-management fee earning AUM (a) | — | 3.1 | — | 6.2 | |||
Net flows in money market funds | (18.1) | — | (11.1) | — | |||
Total net flows | (25.3) | 17.0 | (40.1) | 45.4 | |||
Reinvested distributions | 8.4 | — | 11.5 | — | |||
Market gains and losses | 26.9 | 60.0 | 40.0 | 121.1 | |||
Dispositions | — | — | (1.4) | — | |||
Foreign currency translation | 9.2 | 1.8 | (0.9) | 0.5 | |||
Ending Assets | |||||||
Average AUM | |||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||
By channel: (in billions) | Retail | Institutional | Retail | Institutional | |||
Beginning Assets | |||||||
Long-term inflows | 60.8 | 20.2 | 219.9 | 79.2 | |||
Long-term outflows | (56.2) | (18.1) | (214.5) | (74.4) | |||
Net long-term flows | 4.6 | 2.1 | 5.4 | 4.8 | |||
Net flows in non-management fee earning AUM (a) | 4.2 | (1.1) | 5.9 | 0.3 | |||
Net flows in money market funds | 0.3 | (18.4) | 1.4 | (12.5) | |||
Total net flows | 9.1 | (17.4) | 12.7 | (7.4) | |||
Reinvested distributions | 8.2 | 0.2 | 11.0 | 0.5 | |||
Market gains and losses | 78.1 | 8.8 | 145.2 | 15.9 | |||
Dispositions | — | — | — | (1.4) | |||
Foreign currency translation | 4.2 | 6.8 | 0.8 | (1.2) | |||
Ending Assets | |||||||
See the footnotes immediately following these tables.
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | |||||||||||
By client domicile: (in billions) |
| EMEA |
| EMEA | ||||||||
Beginning Assets | ||||||||||||
Long-term inflows | 43.3 | 20.6 | 17.1 | 154.0 | 77.1 | 68.0 | ||||||
Long-term outflows | (41.8) | (14.8) | (17.7) | (156.0) | (67.0) | (65.9) | ||||||
Net long-term flows | 1.5 | 5.8 | (0.6) | (2.0) | 10.1 | 2.1 | ||||||
Net flows in non-management fee earning AUM (a) | 1.3 | 0.1 | 1.7 | 7.2 | (0.3) | (0.7) | ||||||
Net flows in money market funds | (17.5) | 0.4 | (1.0) | (11.7) | 1.3 | (0.7) | ||||||
Total net flows | (14.7) | 6.3 | 0.1 | (6.5) | 11.1 | 0.7 | ||||||
Reinvested distributions | 8.3 | — | 0.1 | 11.3 | — | 0.2 | ||||||
Market gains and losses | 70.4 | 1.9 | 14.6 | 130.4 | 6.3 | 24.4 | ||||||
Dispositions | — | — | — | (1.4) | — | — | ||||||
Foreign currency translation | 0.7 | 6.8 | 3.5 | 0.7 | (5.4) | 4.3 | ||||||
Ending Assets | ||||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | |||||||||||||||||||
By asset class: | Equity | Fixed | Balanced | Money | Alternatives(b) | Equity | Fixed | Balanced | Money | Alternatives(b) | ||||||||||
Beginning | ||||||||||||||||||||
Long-term | 41.1 | 27.4 | 2.7 | — | 9.8 | 151.3 | 104.5 | 12.4 | — | 30.9 | ||||||||||
Long-term | (32.8) | (27.3) | (4.0) | — | (10.2) | (128.9) | (102.2) | (17.7) | — | (40.1) | ||||||||||
Net long-term | 8.3 | 0.1 | (1.3) | — | (0.4) | 22.4 | 2.3 | (5.3) | — | (9.2) | ||||||||||
Net flows in non- | 4.2 | (1.1) | — | — | — | 6.1 | 0.1 | — | — | — | ||||||||||
Net flows in | — | — | — | (18.1) | — | — | — | — | (11.1) | — | ||||||||||
Total net flows | 12.5 | (1.0) | (1.3) | (18.1) | (0.4) | 28.5 | 2.4 | (5.3) | (11.1) | (9.2) | ||||||||||
Reinvested | 6.6 | 0.5 | 0.9 | 0.1 | 0.3 | 7.2 | 1.8 | 1.3 | 0.3 | 0.9 | ||||||||||
Market gains | 73.6 | 10.0 | 0.8 | 0.1 | 2.4 | 149.3 | 9.8 | (0.1) | 0.6 | 1.5 | ||||||||||
Dispositions | — | — | — | — | — | — | — | — | — | (1.4) | ||||||||||
Foreign currency | 4.3 | 3.6 | 1.1 | 0.8 | 1.2 | 1.7 | (2.0) | (0.3) | (0.6) | 0.8 | ||||||||||
Ending Assets | ||||||||||||||||||||
Average AUM | ||||||||||||||||||||
See the footnotes immediately following these tables.
Invesco Ltd. | |||||||||||||
Assets Under Management - Active(d) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
(in billions) | December | September | % | December | December | December | % | ||||||
Beginning Assets | (5.0) % | (9.8) % | |||||||||||
Long-term inflows | 41.3 | 36.0 | 14.7 % | 42.9 | 164.3 | 197.9 | (17.0) % | ||||||
Long-term outflows | (48.5) | (46.9) | 3.4 % | (53.4) | (193.3) | (226.2) | (14.5) % | ||||||
Net long-term flows | (7.2) | (10.9) | (33.9) % | (10.5) | (29.0) | (28.3) | 2.5 % | ||||||
Net flows in money market funds | (18.1) | (16.1) | 12.4 % | 30.1 | (11.1) | 56.4 | N/A | ||||||
Total net flows | (25.3) | (27.0) | (6.3) % | 19.6 | (40.1) | 28.1 | N/A | ||||||
Reinvested distributions | 8.4 | 1.1 | 663.6 % | 11.7 | 11.5 | 15.2 | (24.3) % | ||||||
Market gains and losses | 26.9 | (17.7) | N/A | 18.0 | 40.0 | (125.6) | N/A | ||||||
Dispositions | — | (1.4) | N/A | — | (1.4) | — | N/A | ||||||
Foreign currency translation | 9.2 | (5.5) | N/A | (0.9) | (24.0) | (96.3) | |||||||
Ending Assets | 2.0 % | 0.9 % | |||||||||||
Average long-term AUM | (2.0) % | (4.9) % | |||||||||||
Average AUM | (2.8) % | 0.4 % | |||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||||
By channel: (in billions) | Retail | Institutional | Retail | Institutional | |||||
Beginning Assets | |||||||||
Long-term inflows | 25.4 | 15.9 | 98.8 | 65.5 | |||||
Long-term outflows | (32.6) | (15.9) | (126.0) | (67.3) | |||||
Net long-term flows | (7.2) | — | (27.2) | (1.8) | |||||
Net flows in non-management fee earning AUM (a) | 0.1 | (0.1) | 0.1 | (0.1) | |||||
Net flows in money market funds | 0.3 | (18.4) | 1.4 | (12.5) | |||||
Total net flows | (6.8) | (18.5) | (25.7) | (14.4) | |||||
Reinvested distributions | 8.2 | 0.2 | 11.0 | 0.5 | |||||
Market gains and losses | 22.6 | 4.3 | 33.7 | 6.3 | |||||
Dispositions | — | — | — | (1.4) | |||||
Foreign currency translation | 3.5 | 5.7 | 0.4 | (1.3) | |||||
Ending Assets | |||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | |||||||||||
By client domicile: (in billions) |
| EMEA |
| EMEA | ||||||||
Beginning Assets | ||||||||||||
Long-term inflows | 21.6 | 14.6 | 5.1 | 78.0 | 61.1 | 25.2 | ||||||
Long-term outflows | (29.9) | (11.6) | (7.0) | (109.7) | (55.0) | (28.6) | ||||||
Net long-term flows | (8.3) | 3.0 | (1.9) | (31.7) | 6.1 | (3.4) | ||||||
Net flows in money market funds | (17.5) | 0.4 | (1.0) | (11.7) | 1.3 | (0.7) | ||||||
Total net flows | (25.8) | 3.4 | (2.9) | (43.4) | 7.4 | (4.1) | ||||||
Reinvested distributions | 8.3 | — | 0.1 | 11.3 | — | 0.2 | ||||||
Market gains and losses | 20.5 | 0.6 | 5.8 | 33.4 | (1.0) | 7.6 | ||||||
Dispositions | — | — | — | (1.4) | — | — | ||||||
Foreign currency translation | 0.7 | 5.5 | 3.0 | 0.7 | (5.4) | 3.8 | ||||||
Ending Assets | ||||||||||||
See the footnotes immediately following these tables.
Invesco Ltd. | ||||||||||||||||||||
Assets Under Management - Active(d) (continued) | ||||||||||||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | |||||||||||||||||||
By asset class: | Equity | Fixed | Balanced | Money | Alternatives(b) | Equity | Fixed | Balanced | Money | Alternatives(b) | ||||||||||
Beginning | ||||||||||||||||||||
Long-term | 11.7 | 21.8 | 2.6 | — | 5.2 | 49.3 | 85.0 | 12.3 | — | 17.7 | ||||||||||
Long-term | (17.3) | (20.4) | (3.9) | — | (6.9) | (64.5) | (85.3) | (17.6) | — | (25.9) | ||||||||||
Net long-term | (5.6) | 1.4 | (1.3) | — | (1.7) | (15.2) | (0.3) | (5.3) | — | (8.2) | ||||||||||
Net flows in | — | — | — | (18.1) | — | — | — | — | (11.1) | — | ||||||||||
Total net flows | (5.6) | 1.4 | (1.3) | (18.1) | (1.7) | (15.2) | (0.3) | (5.3) | (11.1) | (8.2) | ||||||||||
Reinvested | 6.6 | 0.5 | 0.9 | 0.1 | 0.3 | 7.2 | 1.8 | 1.3 | 0.3 | 0.9 | ||||||||||
Market gains | 16.7 | 8.3 | 0.7 | 0.1 | 1.1 | 31.9 | 7.8 | (0.2) | 0.6 | (0.1) | ||||||||||
Dispositions | — | — | — | — | — | — | — | — | — | (1.4) | ||||||||||
Foreign currency | 3.1 | 3.2 | 1.1 | 0.8 | 1.0 | 1.5 | (2.3) | (0.3) | (0.6) | 0.8 | ||||||||||
Ending Assets | ||||||||||||||||||||
Average AUM | ||||||||||||||||||||
See the footnotes immediately following these tables.
Invesco Ltd. | |||||||||||||
Assets Under Management - Passive(d) | |||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
in billions | December | September | % | December | December | December | % | ||||||
Beginning Assets | (0.1) % | (18.1) % | |||||||||||
Long-term inflows | 39.7 | 31.4 | 26.4 % | 31.0 | 134.8 | 132.4 | 1.8 % | ||||||
Long-term outflows | (25.8) | (17.9) | 44.1 % | (23.7) | (95.6) | (104.6) | (8.6) % | ||||||
Net long-term flows | 13.9 | 13.5 | 3.0 % | 7.3 | 39.2 | 27.8 | 41.0 % | ||||||
Net flows in non-management fee | 3.1 | 3.6 | (13.9) % | (2.1) | 6.2 | (3.2) | N/A | ||||||
Total net flows | 17.0 | 17.1 | (0.6) % | 5.2 | 45.4 | 24.6 | 84.6 % | ||||||
Market gains and losses | 60.0 | (16.5) | N/A | 16.8 | 121.1 | (117.9) | N/A | ||||||
Foreign currency translation | 1.8 | (1.0) | N/A | 1.8 | 0.5 | (2.1) | N/A | ||||||
Ending Assets | 15.1 % | 38.6 % | |||||||||||
Average long-term AUM | 3.1 % | 9.5 % | |||||||||||
Average AUM | 2.8 % | 9.5 % | |||||||||||
Average QQQ AUM | 3.0 % | 10.9 % | |||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||||
By channel: (in billions) | Retail | Institutional | Retail | Institutional | |||||
Beginning Assets | |||||||||
Long-term inflows | 35.4 | 4.3 | 121.1 | 13.7 | |||||
Long-term outflows | (23.6) | (2.2) | (88.5) | (7.1) | |||||
Net long-term flows | 11.8 | 2.1 | 32.6 | 6.6 | |||||
Net flows in non-management fee earning AUM (a) | 4.1 | (1.0) | 5.8 | 0.4 | |||||
Total net flows | 15.9 | 1.1 | 38.4 | 7.0 | |||||
Market gains and losses | 55.5 | 4.5 | 111.5 | 9.6 | |||||
Foreign currency translation | 0.7 | 1.1 | 0.4 | 0.1 | |||||
Ending Assets | |||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||||||
By client domicile: (in billions) |
| EMEA |
| EMEA | |||||||
Beginning Assets | |||||||||||
Long-term inflows | 21.7 | 6.0 | 12.0 | 76.0 | 16.0 | 42.8 | |||||
Long-term outflows | (11.9) | (3.2) | (10.7) | (46.3) | (12.0) | (37.3) | |||||
Net long-term flows | 9.8 | 2.8 | 1.3 | 29.7 | 4.0 | 5.5 | |||||
Net flows in non-management fee earning AUM (a) | 1.3 | 0.1 | 1.7 | 7.2 | (0.3) | (0.7) | |||||
Total net flows | 11.1 | 2.9 | 3.0 | 36.9 | 3.7 | 4.8 | |||||
Market gains and losses | 49.9 | 1.3 | 8.8 | 97.0 | 7.3 | 16.8 | |||||
Foreign currency translation | — | 1.3 | 0.5 | — | — | 0.5 | |||||
Ending Assets | |||||||||||
See the footnotes immediately following these tables.
Invesco Ltd. | |||||||||||||||||||
Assets Under Management - Passive(d) (continued) | |||||||||||||||||||
Three Months Ended December 31, 2023 | Twelve months ended December 31, 2023 | ||||||||||||||||||
By asset class: | Equity | Fixed | Balanced | Money | Alternatives(b) | Equity | Fixed | Balanced | Money | Alternatives(b) | |||||||||
Beginning Assets | $— | $— | |||||||||||||||||
Long-term inflows | 29.4 | 5.6 | 0.1 | — | 4.6 | 102.0 | 19.5 | 0.1 | — | 13.2 | |||||||||
Long-term | (15.5) | (6.9) | (0.1) | — | (3.3) | (64.4) | (16.9) | (0.1) | — | (14.2) | |||||||||
Net long-term | 13.9 | (1.3) | — | — | 1.3 | 37.6 | 2.6 | — | — | (1.0) | |||||||||
Net flows in non- | 4.2 | (1.1) | — | — | — | 6.1 | 0.1 | — | — | — | |||||||||
Total net flows | 18.1 | (2.4) | — | — | 1.3 | 43.7 | 2.7 | — | — | (1.0) | |||||||||
Market gains and | 56.9 | 1.7 | 0.1 | — | 1.3 | 117.4 | 2.0 | 0.1 | — | 1.6 | |||||||||
Foreign currency | 1.2 | 0.4 | — | — | 0.2 | 0.2 | 0.3 | — | — | — | |||||||||
Ending Assets | $— | $— | |||||||||||||||||
Average AUM | $— | $— | |||||||||||||||||
Invesco Ltd.
Footnotes to the Assets Under Management Tables
(a) | Non-management fee earning AUM includes non-management fee earning ETFs, UIT and product leverage. |
(b) | 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. |
(c) | Long-term AUM excludes money market and non-management fee earning AUM. Ending AUM as of December 31, 2023 includes |
(d) | Passive AUM include index-based ETFs, unit investment trusts (UITs), non-fee earning leverage and other passive mandates. Active AUM is total AUM less Passive AUM. |
Invesco Ltd. | ||||||||
Investment Capabilities Performance Overview | ||||||||
Benchmark Comparison | Peer Group Comparison | |||||||
% of AUM Ahead of | % of AUM In Top Half of | |||||||
Equities (1) | 1yr | 3yr | 5yr | 10yr | 1yr | 3yr | 5yr | 10yr |
22 % | 43 % | 31 % | 17 % | 18 % | 11 % | 22 % | 12 % | |
— % | 11 % | 25 % | 41 % | 49 % | — % | 62 % | 11 % | |
63 % | 92 % | 63 % | 92 % | 63 % | 63 % | 63 % | 50 % | |
Sector ( | 64 % | 8 % | 2 % | 25 % | 73 % | 29 % | 31 % | 54 % |
UK ( | 95 % | 66 % | 45 % | 48 % | 72 % | 100 % | 47 % | 47 % |
Canadian (< | 89 % | 100 % | 100 % | 47 % | 100 % | 89 % | 100 % | — % |
Asian ( | 48 % | 64 % | 67 % | 88 % | 45 % | 42 % | 36 % | 82 % |
Continental European ( | 67 % | 82 % | 27 % | 66 % | 77 % | 80 % | 41 % | 70 % |
Global ( | 84 % | 44 % | 82 % | 74 % | 96 % | 42 % | 45 % | 35 % |
Global Ex | 89 % | 18 % | 46 % | 99 % | 43 % | 42 % | 34 % | 13 % |
Fixed Income (1) | ||||||||
Money Market ( | 99 % | 96 % | 99 % | 100 % | 85 % | 86 % | 85 % | 100 % |
84 % | 86 % | 85 % | 97 % | 48 % | 44 % | 70 % | 92 % | |
Global Fixed Income ( | 86 % | 62 % | 95 % | 95 % | 80 % | 68 % | 73 % | 94 % |
Stable Value ( | — % | 99 % | 100 % | 100 % | 97 % | 97 % | 97 % | 100 % |
Other (1) | ||||||||
Alternatives ( | 68 % | 58 % | 78 % | 73 % | 50 % | 61 % | 45 % | 55 % |
Balanced ( | 38 % | 47 % | 64 % | 63 % | 56 % | 79 % | 93 % | 94 % |
Note: | 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. |
AUM measured in the one, three, five and ten year quartile rankings represents | |
(1) | Numbers in parenthesis reflect AUM for each investment product (see Note above for exclusions) as a percentage of the total AUM for the 5 year peer group ( |
Invesco Ltd. | |||||||||||
Supplemental Information(1) | |||||||||||
For the three months ended December 31, 2023 | For the three months ended December 31, 2022 | ||||||||||
Cash flow information (in millions) | Impact of | Excluding | Impact of | Excluding | |||||||
Invesco and CIP cash and cash equivalents, | $ 1,555.1 | $ (313.6) | $ 1,241.5 | $ 1,226.0 | $ (202.4) | $ 1,023.6 | |||||
Cash flows from operating activities | 714.3 | (364.4) | 349.9 | 456.5 | (38.6) | 417.9 | |||||
Cash flows from investing activities | (261.6) | 261.9 | 0.3 | (130.6) | 27.9 | (102.7) | |||||
Cash flows from financing activities | (110.3) | (43.5) | (153.8) | (168.1) | 18.6 | (149.5) | |||||
Increase/(decrease) in cash and cash equivalents | 342.4 | (146.0) | 196.4 | 157.8 | 7.9 | 165.7 | |||||
Foreign exchange movement on cash and cash | 34.1 | (2.8) | 31.3 | 50.3 | (4.9) | 45.4 | |||||
Cash and cash equivalents, end of the period | $ 1,931.6 | $ (462.4) | $ 1,469.2 | $ 1,434.1 | $ (199.4) | $ 1,234.7 | |||||
For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||||||
Cash flow information (in millions) | Impact of | Excluding | Impact of | Excluding | |||||||
Invesco and CIP cash and cash equivalents, | $ 1,434.1 | $ (199.4) | $ 1,234.7 | $ 2,147.1 | $ (250.7) | $ 1,896.4 | |||||
Cash flows from operating activities | 1,300.8 | (136.6) | 1,164.2 | 703.2 | 414.1 | 1,117.3 | |||||
Cash flows from investing activities | (244.3) | 72.8 | (171.5) | (375.6) | 81.5 | (294.1) | |||||
Cash flows from financing activities | (585.4) | (196.8) | (782.2) | (966.9) | (449.4) | (1,416.3) | |||||
Increase/(decrease) in cash and cash equivalents | 471.1 | (260.6) | 210.5 | (639.3) | 46.2 | (593.1) | |||||
Foreign exchange movement on cash and cash equivalents | 26.4 | (2.4) | 24.0 | (73.7) | 5.1 | (68.6) | |||||
Cash and cash equivalents, end of the period | $ 1,931.6 | $ (462.4) | $ 1,469.2 | $ 1,434.1 | $ (199.4) | $ 1,234.7 | |||||
(1) | These tables include non-GAAP presentations. Cash held by CIP is not available for use by Invesco. Additionally, there is no recourse to Invesco for CIP debt. The cash flows of CIP do not form part of the company's cash flow management processes, nor do they form part of the company's significant liquidity evaluations and decisions. Policyholder assets and liabilities are equal and offsetting and have no impact on Invesco's shareholder's equity. The impact of cash inflows/outflows from policyholder assets and liabilities are reflected within cash flows from operating activities as changes in receivable and/or payables, as applicable. |
Invesco Ltd. | |||||||||||||||
Supplemental Information(1) | |||||||||||||||
As of December 31, 2023 | As of December 31, 2022 | ||||||||||||||
Balance Sheet information (in millions) |
| Impact of | Impact of | As |
| Impact of | Impact of | As | |||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | $ 1,469.2 | $ — | $ — | $ 1,469.2 | $ 1,234.7 | — | — | $ 1,234.7 | |||||||
Investments | 919.1 | 527.4 | — | 1,446.5 | 996.6 | 376.8 | — | 1,373.4 | |||||||
Investments and other assets of | 9,016.0 | (9,016.0) | — | — | 8,735.1 | (8,735.1) | — | — | |||||||
Cash and cash equivalents of | 462.4 | (462.4) | — | — | 199.4 | (199.4) | — | — | |||||||
Assets held for policyholders | 393.9 | — | (393.9) | — | 668.7 | — | (668.7) | — | |||||||
Goodwill and intangible assets, | 14,539.6 | — | — | 14,539.6 | 15,698.9 | — | — | 15,689.9 | |||||||
Other assets (2) | 2,133.6 | 18.8 | — | 2,152.4 | 2,223.4 | 9.8 | — | 2,233.2 | |||||||
Total assets | 28,933.8 | (8,932.2) | (393.9) | 19,607.7 | 29,756.8 | (8,547.9) | (668.7) | 20,540.2 | |||||||
LIABILITIES | |||||||||||||||
Debt of CIP | 7,121.8 | (7,121.8) | — | — | 6,590.4 | (6,590.4) | — | — | |||||||
Other liabilities of CIP | 492.1 | (492.1) | — | — | 329.6 | (329.6) | — | — | |||||||
Policyholder payables | 393.9 | — | (393.9) | — | 668.7 | — | (668.7) | — | |||||||
Debt | 1,489.5 | — | — | 1,489.5 | 1,487.6 | — | — | 1,487.6 | |||||||
Other liabilities (3) | 3,520.5 | — | — | 3,520.5 | 3,838.3 | — | — | 3,838.3 | |||||||
Total liabilities | 13,017.8 | (7,613.9) | (393.9) | 5,010.0 | 12,914.6 | (6,920.0) | (668.7) | 5,325.9 | |||||||
EQUITY | |||||||||||||||
Total equity attributable to | 14,597.6 | 0.1 | — | 14,597.7 | 15,213.6 | 0.1 | — | 15,213.7 | |||||||
Noncontrolling interests (4) | 1,318.4 | (1,318.4) | — | — | 1,628.6 | (1,628.0) | — | 0.6 | |||||||
Total equity | 15,916.0 | (1,318.3) | — | 14,597.7 | 16,842.2 | (1,627.9) | — | 15,214.3 | |||||||
Total liabilities and equity | $ (393.9) | $ (8,547.9) | $ (668.7) | $ 20,540.2 | |||||||||||
(1) | These tables include non-GAAP presentations. Cash held by CIP is not available for use by Invesco. Additionally, there is no recourse to Invesco for CIP debt. The cash flows of CIP do not form part of the company's cash flow management processes, nor do they form part of the company's significant liquidity evaluations and decisions. Policyholder assets and liabilities are equal and offsetting and have no impact on Invesco's shareholder's equity. The impact of cash inflows/outflows from policyholder assets and liabilities are reflected within cash flows from operating activities as changes in receivable and/or payables, as applicable. |
(2) | Amounts include accounts receivable, prepaid assets, unsettled funds receivables, property, equipment and software, right-of-use asset, and other assets. |
(3) | Amounts include accrued compensation and benefits, unsettled funds payables, accounts payable and accrued expenses, lease liability, and deferred tax liabilities. |
(4) | Amounts include redeemable noncontrolling interests in consolidated entities and equity attributable to nonredeemable noncontrolling interests in consolidated entities. |
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SOURCE Invesco Ltd.
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