Invesco Reports Results for the Three Months Ended September 30, 2022

Rhea-AI Summary

Invesco Ltd. (NYSE: IVZ) reported a diluted EPS of $0.39 for Q3 2022, a 50% increase from Q2 2022 but a 45.1% decline from Q3 2021. The company experienced net long-term outflows of $7.7 billion, worsening from $6.8 billion in Q2 2022. Despite this, Invesco achieved net long-term inflows in active fixed income ($3.7 billion), institutional channels ($3.9 billion), and from its China joint venture ($2.1 billion). Assets under management (AUM) decreased to $1,323.3 billion, down 4.8% from the prior quarter. The firm maintains strong balance sheet management with zero credit facility balance and over $1 billion in cash.

Positive

• Achieved net long-term inflows of $3.7 billion from active fixed income.
• Institutions contributed $3.9 billion in net long-term inflows.
• Generated $2.1 billion in inflows from the China joint venture.
• Maintained strong balance sheet with zero credit facility balance and over $1 billion in cash.
• Diluted EPS of $0.39 increased 50% from Q2 2022.

Negative

• Net long-term outflows increased to $7.7 billion from $6.8 billion in Q2 2022.
• Ending AUM decreased to $1,323.3 billion, down 4.8% from the previous quarter.
• Adjusted diluted EPS fell to $0.34, a 12.8% decrease compared to Q2 2022 and 55.8% drop year-over-year.
• Operating revenues dropped 5.5% from Q2 2022 and 17.4% from Q3 2021.

Invesco Announces Third Quarter Diluted EPS of $0.39; Adjusted Diluted EPS⁽¹⁾ of $0.34

ATLANTA, Oct. 25, 2022 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended September 30, 2022.

• $7.7 billion of net long-term outflows, but showing resilience in key capability areas with net long-term inflows of $3.7 billion from active fixed income, $3.9 billion from our institutional channel, and $2.1 billion from our China joint venture
• $1,323.3 billion in ending AUM, a decrease of 4.8% from the prior quarter
• 24.2% operating margin; 33.3% adjusted operating margin⁽¹⁾
• Balance sheet strength - continue to manage debt to lower levels ending the quarter with credit facility balance of zero and over $1 billion in cash and cash equivalents

Update from Marty Flanagan, President and CEO

"The challenging industry backdrop continued in the third quarter as most major equity and bond market indices moved lower. Investors continued to react with caution, and sought risk-off trades that impacted industry flows and the level and mix of assets under management.

The dynamic environment we are in favors investment managers that have a broad, diversified range of capabilities to meet client demand in this market. Invesco continues to prove it is one of few global investment managers that can do that, showing momentum in net flows and market leadership in areas of high client demand. Despite historic market declines, the firm generated net long-term inflows this quarter in active fixed income, Greater China, and the institutional channel. All three of these areas have also garnered net long-term inflows on a year to date basis, along with our global ETF business and private markets capabilities. 

As always, we remain focused on helping clients meet their investment objectives, investing in areas of strategic importance, scaling our operating platform, and efficiently allocating our resources.  By executing our long-term strategy, I'm confident Invesco will maintain its position as one of the leading firms in our industry while delivering compelling returns for our shareholders."

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(1)	Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

Net Flows:

Net long-term outflows were $7.7 billion for the third quarter of 2022, compared to net long-term outflows of $6.8 billion in the second quarter of 2022. Active net long-term outflows for the quarter were $7.3 billion.

Retail net long-term outflows were $11.6 billion while institutional net long-term inflows were $3.9 billion. Net long-term flows by asset class included net long-term inflows of $6.5 billion in fixed income products offset by net long-term outflows of  $7.4 billion in equity products, $1.5 billion in balanced products and $5.3 billion in alternative products. On a geographic basis, Asia Pacific experienced net long-term inflows of $5.1 billion, including $2.1 billion from our China joint venture, and the Americas and EMEA experienced net long-term outflows of $9.9 billion and $2.9 billion, respectively.

Net market losses and foreign exchange rate movements decreased AUM by $55.1 billion and $17.1 billion, respectively, in the third quarter. We had net inflows of $10.0 billion into money market funds and inflows of $1.9 billion from non-management fee earning products during the quarter. Ending AUM decreased 4.8%, while average AUM decreased 2.8% in the third quarter compared to the second quarter.

Summary of net flows (in billions)		Q3-22		Q2-22		Q3-21
Active		$   (7.3)		$  (11.3)		$    6.8
Passive		(0.4)		4.5		6.5
Net long-term flows		(7.7)		(6.8)		13.3
Non-management fee earning AUM		1.9		(2.0)		5.5
Money market		10.0		3.5		2.6
Total net flows		$    4.2		$  (5.3)		$  21.4
Annualized long-term organic growth rate (1)		(2.9) %		(2.4) %		4.4 %

(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.

Third Quarter Highlights:

Financial Results	Q3-22		Q2-22		Q3-22 vs. Q2-22		Q3-21		Q3-22 vs. Q3-21
U.S. GAAP Financial Measures
Operating revenues	$1,445.7m		$1,530.4m		(5.5) %		$1,750.0m		(17.4) %
Operating income	$350.2m		$344.7m		1.6 %		$463.8m		(24.5) %
Operating margin	24.2 %		22.5 %				26.5 %
Net income attributable to Invesco Ltd.	$177.4m		$121.0m		46.6 %		$330.1m		(46.3) %
Diluted EPS	$0.39		$0.26		50.0 %		$0.71		(45.1) %
Adjusted Financial Measures (1)
Net revenues	$1,110.6m		$1,173.9m		(5.4) %		$1,333.5m		(16.7) %
Adjusted operating income	$369.4m		$411.9m		(10.3) %		$561.6m		(34.2) %
Adjusted operating margin	33.3 %		35.1 %				42.1 %
Adjusted net income attributable to Invesco Ltd.	$155.8m		$180.3m		(13.6) %		$358.6m		(56.6) %
Adjusted diluted EPS	$0.34		$0.39		(12.8) %		$0.77		(55.8) %
Assets Under Management
Ending AUM	$1,323.3bn		$1,390.4bn		(4.8) %		$1,528.6bn		(13.4) %
Average AUM	$1,416.2bn		$1,457.2bn		(2.8) %		$1,540.5bn		(8.1) %
Headcount	8,621		8,506		1.4 %		8,507		1.3 %

(1)	Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

U.S. GAAP Operating Results:

Third Quarter 2022 compared to Second Quarter 2022

Operating revenues and expenses: Lower average AUM was driven by market declines, changes in foreign exchange rates and net outflows resulted in a decrease in operating revenues of $84.7 million in the third quarter compared to the second quarter. Investment management fees decreased by $56.2 million during the period. Service and distribution fees decreased $13.6 million. Performance fees decreased $6.2 million. Other revenues decreased $8.7 million in the third quarter, resulting from lower front end fees and real estate transaction fees. Foreign exchange rate changes in the third quarter decreased operating revenues by  $18.3 million.

Operating expenses decreased $90.2 million in the third quarter as compared to the second quarter. Third party distribution, service and advisory costs decreased $23.7 million during the quarter resulting from lower average AUM. Employee compensation expense increased $13.6 million in the third quarter, primarily due to larger fair value decreases in the second quarter on deferred compensation liabilities relative to the third quarter. Marketing expenses decreased by $6.2 million, primarily due to lower advertising and travel and event costs. General and administrative expenses decreased $71.0 million in the third quarter, primarily driven by $60.0 million of insurance recoveries related to losses incurred in previous periods. Foreign exchange rate changes in the third quarter decreased operating expenses by  $17.4 million.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was $20.2 million, earned primarily from our China joint venture. Other gains and losses were a net loss of $34.6 million, driven by market value changes on deferred compensation and seed money investments. Other net income/(expense) of consolidated investment products (CIP) was a loss of $65.4 million, primarily driven by market losses on the underlying investments held by the funds, which are generally recorded on a one to three month lag.

The effective tax rate was 34.0% in the third quarter as compared to 22.3% in the second quarter. The increase in the third quarter was primarily due to the unfavorable impact that the losses attributable to interests in CIP has on the effective tax rate and the change in the mix of income across tax jurisdictions.

Diluted earnings per common share: Diluted earnings per common share was $0.39 for the third quarter of 2022.

Third Quarter 2022 compared to Third Quarter 2021

Operating revenues and expenses: Lower average AUM driven by market declines, changes in foreign exchange rates on AUM and net AUM outflows resulted in a decrease in operating revenues of $304.3 million in the third quarter of 2022 compared to the third quarter of 2021.  Investment management fees decreased by $218.2 million during the period. Service and distribution fees decreased by $68.9 million. Performance fees decreased $1.8 million from the third quarter of 2021. Other revenues decreased $15.4 million, resulting from lower front end fees. Foreign exchange rate changes in the third quarter of 2022 decreased operating revenues by $50.3 million.

Operating expenses decreased $190.7 million compared to the third quarter of 2021. Third party distribution, service and advisory costs decreased $95.1 million resulting from lower average AUM. Employee compensation expense decreased $55.9 million compared to the third quarter of 2021, primarily due to lower variable compensation. Marketing expenses increased by $7.3 million, primarily due to higher advertising and client events. General administrative expenses decreased by $56.3 million, primarily driven by $60.0 million of insurance recoveries related to losses incurred in previous periods. Increased travel costs also contributed to the rise in marketing and general and administrative costs in the third quarter as travel activity returned to more normalized levels with the easing of COVID-19-related travel restrictions. Foreign exchange rate changes in the third quarter of 2022 decreased operating expenses by $46.9 million.

The effective tax rate was 34.0% in the third quarter of 2022 as compared to 20.4% in the third quarter of 2021.The increase in the third quarter was primarily due to the unfavorable impact that the losses attributable to interests in CIP has on the effective tax rate and the change in the mix of income across tax jurisdictions, which was partially offset by the favorable impact of the remeasurement of the deferred tax liability for certain intangibles due to a change in future state tax rates. 

Adjusted⁽¹⁾ Operating Results:

Third Quarter 2022 compared to Second Quarter 2022

Net revenues decreased $63.3 million in the third quarter compared to the second quarter, resulting from lower average AUM. The impact of lower investment management fees, service and distribution fees and other revenues was partially offset by lower third party distribution, service and advisory costs.  Foreign exchange rate changes in the third quarter decreased net revenues by $17.2 million. 

Adjusted operating expenses decreased $20.8 million in the third quarter compared to the second quarter. Foreign exchange rate changes in the third quarter decreased adjusted operating expenses by $13.6 million. 

Adjusted operating income decreased $42.5 million in the third quarter compared to the second quarter. Adjusted operating margin declined to 33.3% from 35.1% for the prior quarter.

Adjusted diluted earnings per common share decreased to $0.34 from $0.39 as a result of lower operating income, net market losses on our investments and lower equity in earnings of unconsolidated affiliates. The effective tax rate on adjusted net income increased to 28.7% in the third quarter from 24.8% in the second quarter. The increase in the effective tax rate in the third quarter was primarily due to the change in the mix of income across tax jurisdictions and an increase in the valuation allowance recorded against net operating losses.

Third Quarter 2022 compared to Third Quarter 2021

Net revenues decreased $222.9 million compared to the third quarter of 2021, resulting from lower average AUM. The impact of decreased investment management fees, service and distribution fees and other revenues was partially offset by lower third party distribution, service and advisory costs. Foreign exchange rate changes in the third quarter decreased net revenues by $42.2 million. 

Adjusted operating expenses decreased $30.7 million compared to the third quarter of 2021. Foreign exchange rate changes in the third quarter decreased adjusted operating expenses by $34.6 million.

Adjusted operating income decreased $192.2 million compared to the third quarter of 2021. Adjusted operating margin declined to 33.3% from 42.1% for the prior year quarter.

Adjusted diluted earnings per common share decreased to $0.34 from $0.77 as a result of lower operating income, net market losses on our investments and lower equity in earnings of unconsolidated affiliates. The effective tax rate on adjusted net income increased to 28.7% in the third quarter of 2022 from 24.4% in the third quarter of 2021. The increase in the effective tax rate in the third quarter was primarily due to the change in the mix of income across tax jurisdictions.

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(1)	Represents non-GAAP financial measure. See the information on pages 7 through 10 for a reconciliation to the most directly comparable U.S. GAAP measure.

Capital Management:

Cash and cash equivalents: $1,023.6 million at September 30, 2022 ($936.8 million as of June 30, 2022).

Debt: $1,487.1 million at September 30, 2022 ($1,671.2 million as of June 30, 2022). The credit facility balance was zero at September 30, 2022 ($184.6 million as of June 30, 2022).

Common shares outstanding (end of period): 454.8 million

Diluted common shares outstanding (end of period): 459.5 million

Dividends paid: $85.7 million (common); $59.2 million (preferred)

Common dividends declared: The company is announcing a third quarter cash dividend of $0.1875 per share to holders of common shares. The dividend is payable on December 2, 2022 to common shareholders of record at the close of business on November 11, 2022, with an ex-dividend date of November 9, 2022.

Preferred dividends declared: The company is announcing a preferred cash dividend of $14.75 per share representing the period from September 1, 2022 through November 30, 2022. The preferred dividend is payable on December 1, 2022 to preferred shareholders of record at the close of business on November 15, 2022.

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 $1.3 trillion in assets on behalf of clients worldwide as of September 30, 2022. For more information, visit invesco.com/corporate.

Members of the investment community and general public are invited to listen to the conference call today, October 25, 2022, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-803-2143 for U.S. and Canadian callers or 1-210-795-1098 for international callers, using the Passcode: Invesco. An audio replay of the conference call will be available until Tuesday November 8, 2022 at 5:00 p.m. ET by calling 1-888-566-0411 for U.S. and Canadian callers or 1-203-369-3041 for international callers. A presentation highlighting the company's performance will be available during a live Webcast and on Invesco's Website at invesco.com/corporate.

# # #

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 the COVID-19 pandemic 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. 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
	Matt Seitz	404-439-4853
Media Relations Contact:	Graham Galt	404-439-3070

 

Invesco Ltd.
U.S. GAAP Condensed Consolidated Income Statements
(Unaudited, in millions, other than per share amounts)
	Q3-22		Q2-22		% Change		Q3-21		% Change
Operating revenues:
Investment management fees	$    1,057.3		$    1,113.5		(5.0) %		$    1,275.5		(17.1) %
Service and distribution fees	340.2		353.8		(3.8) %		409.1		(16.8) %
Performance fees	3.0		9.2		(67.4) %		4.8		(37.5) %
Other	45.2		53.9		(16.1) %		60.6		(25.4) %
Total operating revenues	1,445.7		1,530.4		(5.5) %		1,750.0		(17.4) %
Operating expenses:
Third-party distribution, service and advisory	451.3		475.0		(5.0) %		546.4		(17.4) %
Employee compensation	420.8		407.2		3.3 %		476.7		(11.7) %
Marketing	27.6		33.8		(18.3) %		20.3		36.0 %
Property, office and technology	133.2		135.0		(1.3) %		134.2		(0.7) %
General and administrative	48.7		119.7		(59.3) %		105.0		(53.6) %
Transaction, integration and restructuring	(0.6)		0.2		N/A		(12.0)		(95.0) %
Amortization of intangible assets	14.5		14.8		(2.0) %		15.6		(7.1) %
Total operating expenses	1,095.5		1,185.7		(7.6) %		1,286.2		(14.8) %
Operating income	350.2		344.7		1.6 %		463.8		(24.5) %
Other income/(expense):
Equity in earnings of unconsolidated affiliates	20.2		24.7		(18.2) %		54.6		(63.0) %
Interest and dividend income	3.3		2.1		57.1 %		1.9		73.7 %
Interest expense	(18.6)		(25.8)		(27.9) %		(23.1)		(19.5) %
Other gains and losses, net	(34.6)		(90.0)		(61.6) %		(12.1)		186.0 %
Other income/(expense) of CIP, net	(65.4)		26.2		N/A		200.2		N/A
Income before income taxes	255.1		281.9		(9.5) %		685.3		(62.8) %
Income tax provision	(86.8)		(63.0)		37.8 %		(139.7)		(37.9) %
Net income	168.3		218.9		(23.1) %		545.6		(69.2) %
Net (income)/loss attributable to noncontrolling interests in consolidated entities	68.3		(38.7)		N/A		(156.3)		N/A
Less: Dividends declared on preferred shares	(59.2)		(59.2)		— %		(59.2)		— %
Net income attributable to Invesco Ltd.	$        177.4		$       121.0		46.6 %		$       330.1		(46.3) %
Earnings per common share:
---basic	$0.39		$0.27		44.4 %		$0.71		(45.1) %
---diluted	$0.39		$0.26		50.0 %		$0.71		(45.1) %
Average common shares outstanding:
---basic	457.0		456.5		0.1 %		463.3		(1.4) %
---diluted	459.5		459.5		0.0 %		466.0		(1.4) %

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 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.

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 U.S. GAAP basis to a non-GAAP basis of net revenues, adjusted operating income (and by calculation, adjusted operating margin), and adjusted net income attributable to Invesco Ltd. (and by calculation, adjusted diluted EPS). 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. These non-GAAP measures should not be considered as substitutes for any U.S. GAAP measures and may not be comparable to other similarly titled measures of other companies. The tax effect of the reconciling items is based on the tax jurisdiction attributable to the transactions. 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's non-GAAP performance measures.

Reconciliation of Operating revenues to Net revenues:
in millions	Q3-22		Q2-22		Q3-21
Operating revenues, U.S. GAAP basis	$      1,445.7		$      1,530.4		$      1,750.0
Invesco Great Wall (1)	104.6		106.1		118.7
Revenue Adjustments (2)
Investment management fees	(185.5)		(193.1)		(216.3)
Service and distribution fees	(232.1)		(240.3)		(278.0)
Other	(33.7)		(41.6)		(52.1)
Total Revenue Adjustments	$       (451.3)		$       (475.0)		$       (546.4)
CIP	11.6		12.4		11.2
Net revenues	$      1,110.6		$      1,173.9		$      1,333.5

 

Reconciliation of Operating income to Adjusted operating income:
in millions	Q3-22		Q2-22		Q3-21
Operating income, U.S. GAAP basis	$     350.2		$     344.7		$     463.8
Invesco Great Wall (1)	61.8		62.2		70.4
CIP	15.7		16.1		20.7
Transaction, integration and restructuring (3)	(0.6)		0.2		(12.0)
Amortization of intangible assets	14.5		14.8		15.6
Compensation expense related to market valuation changes in deferred      compensation plans	(12.2)		(26.1)		3.1
General and administrative (3)	(60.0)		—		—
Adjusted operating income	$     369.4		$     411.9		$     561.6
Operating margin (4)	24.2 %		22.5 %		26.5 %
Adjusted operating margin (5)	33.3 %		35.1 %		42.1 %

 

Reconciliation of Net income attributable to Invesco Ltd. to Adjusted net income attributable to Invesco Ltd.
in millions	Q3-22		Q2-22		Q3-21
Net income attributable to Invesco Ltd., U.S. GAAP basis	$         177.4		$         121.0		$         330.1
Transaction, integration and restructuring, net of tax (3)	(0.4)		0.2		(8.7)
Amortization of intangible assets and related tax benefits (6)	18.3		18.6		21.3
Deferred compensation plan market valuation changes and dividend      income less compensation expense, net of tax	13.0		40.5		9.4
General and administrative, net of tax (3)	(45.7)		—	—	—
Impact of tax rate changes (7)	(6.8)		—		6.5
Adjusted net income attributable to Invesco Ltd. (8)	$         155.8		$         180.3		$         358.6
Average common shares outstanding - diluted	459.5		459.5		466.0
Diluted EPS	$0.39		$0.26		$0.71
Adjusted diluted EPS (9)	$0.34		$0.39		$0.77

 

Reconciliation of Operating expenses to Adjusted operating expenses:
in millions	Q3-22		Q2-22		Q3-21
Operating expenses, U.S. GAAP basis	$      1,095.5		$      1,185.7		$      1,286.2
Invesco Great Wall (1)	42.8		43.9		48.3
Third party distribution, service and advisory expenses	(451.3)		(475.0)		(546.4)
CIP	(4.1)		(3.7)		(9.5)
Transaction, integration and restructuring (3)	0.6		(0.2)		12.0
Amortization of intangible assets	(14.5)		(14.8)		(15.6)
Compensation expense related to market valuation changes in deferred      compensation plans	12.2		26.1		(3.1)
General and administrative (3)	60.0		—		—
Adjusted operating expenses	$         741.2		$         762.0		$         771.9
Employee compensation, U.S. GAAP basis	$         420.8		$         407.2		$         476.7
Invesco Great Wall (1)	33.7		34.8		38.2
Compensation expense related to market valuation changes in deferred      compensation plans	12.2		26.1		(3.1)
Adjusted employee compensation	$         466.7		$         468.1		$         511.8
Marketing, U.S. GAAP basis	$           27.6		$           33.8		$           20.3
Invesco Great Wall (1)	2.1		2.6		3.9
Adjusted marketing	$           29.7		$           36.4		$           24.2
Property, office and technology, U.S. GAAP basis	$         133.2		$         135.0		$         134.2
Invesco Great Wall (1)	5.2		5.0		3.6
Adjusted property, office and technology	$         138.4		$         140.0		$         137.8
General and administrative, U.S. GAAP basis	$           48.7		$         119.7		$         105.0
Invesco Great Wall (1)	1.8		1.5		2.6
CIP	(4.1)		(3.7)		(9.5)
Insurance recoveries (3)	60.0		—		—
Adjusted general and administrative	$        106.4		$        117.5		$           98.1
Transaction, integration and restructuring, U.S. GAAP basis	$            (0.6)		$             0.2		$          (12.0)
Transaction, integration and restructuring (3)	0.6		(0.2)		12.0
Adjusted transaction, integration and restructuring	$               —		$               —		$               —
Amortization of intangible assets, U.S. GAAP basis	$           14.5		$           14.8		$           15.6
Amortization of intangible assets	(14.5)		(14.8)		(15.6)
Adjusted amortization of intangibles	$               —		$               —		$               —

(1)	The company reflects 100% of Invesco Great Wall in its net revenues and adjusted operating expenses. The company's non-GAAP operating results reflect the economics of these holdings on a basis consistent with the underlying AUM and flows. Adjusted net income is reduced by the amount of earnings attributable to noncontrolling interests.
(2)	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 U.S. peer investment managers and within Invesco's own investment units. Additionally, management evaluates net revenue yield on AUM, which is equal to net revenues divided by average AUM during the reporting period, as an indicator of the basis point net revenues we receive for each dollar of AUM we manage.
	Investment management fees are adjusted by renewal commissions and certain administrative fees. Service and distribution 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)	Adjustment includes insurance recoveries collected related to losses incurred in previous periods.
(4)	Operating margin is equal to operating income divided by operating revenues.
(5)	Adjusted operating margin is equal to adjusted operating income divided by net revenues.
(6)	The company reflects the tax benefit realized on the tax amortization of goodwill and intangibles in adjusted net income. We believe it is useful to include this tax benefit in arriving at the adjusted diluted EPS measure.
(7)	The third quarters of 2022 and 2021 included a non-cash income tax benefit of $6.8 million and a non-cash income tax expense of $6.5 million, respectively, related to the re-measurement of certain intangible deferred tax liabilities due to tax rate changes.
(8)	The effective tax rate on adjusted net income attributable to Invesco Ltd. for the third quarter is 28.7% (second quarter 2022: 24.8%; third quarter 2021: 24.4%).
(9)	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. There is no difference between the calculated earnings per common share amounts presented above and the calculated earnings per common share amounts under the two class method.

 

Invesco Ltd.
Quarterly Assets Under Management
in billions	Q3-22		Q2-22		% Change		Q3-21
Beginning Assets	$1,390.4		$1,555.9		(10.6) %		$1,525.0
Long-term inflows	68.7		81.4		(15.6) %		91.7
Long-term outflows	(76.4)		(88.2)		(13.4) %		(78.4)
Net long-term flows	(7.7)		(6.8)		13.2 %		13.3
Net flows in non-management fee earning AUM (a)	1.9		(2.0)		N/A		5.5
Net flows in money market funds	10.0		3.5		185.7 %		2.6
Total net flows	4.2		(5.3)		N/A		21.4
Reinvested distributions	0.9		1.8		(50.0) %		0.8
Market gains and losses	(55.1)		(142.3)		(61.3) %		(14.6)
Foreign currency translation	(17.1)		(19.7)		(13.2) %		(4.0)
Ending Assets	$1,323.3		$1,390.4		(4.8) %		$1,528.6
Ending long-term AUM	$994.3		$1,063.7		(6.5) %		$1,193.2
Average long-term AUM	$1,071.9		$1,117.2		(4.1) %		$1,203.6
Average AUM	$1,416.2		$1,457.2		(2.8) %		$1,540.5
Average QQQ AUM	$165.9		$169.0		(1.8) %		$186.2

 

in billions	Total AUM		Active(d)		Passive(d)
June 30, 2022	$1,390.4		$957.9		$432.5
Long-term inflows	68.7		44.5		24.2
Long-term outflows	(76.4)		(51.8)		(24.6)
Net long-term flows	(7.7)		(7.3)		(0.4)
Net flows in non-management fee earning AUM (a)	1.9		—		1.9
Net flows in money market funds	10.0		10.0		—
Total net flows	4.2		2.7		1.5
Reinvested distributions	0.9		0.9		—
Market gains and losses	(55.1)		(32.0)		(23.1)
Foreign currency translation	(17.1)		(15.4)		(1.7)
September 30, 2022	$1,323.3		$914.1		$409.2
Average AUM	$1,416.2		$961.6		$454.6

 

By channel: (in billions)	Total		Retail		Institutional
June 30, 2022	$1,390.4		$898.8		$491.6
Long-term inflows	68.7		47.3		21.4
Long-term outflows	(76.4)		(58.9)		(17.5)
Net long-term flows	(7.7)		(11.6)		3.9
Net flows in non-management fee earning AUM (a)	1.9		1.8		0.1
Net flows in money market funds	10.0		(1.0)		11.0
Total net flows	4.2		(10.8)		15.0
Reinvested distributions	0.9		0.8		0.1
Market gains and losses	(55.1)		(47.4)		(7.7)
Foreign currency translation	(17.1)		(7.4)		(9.7)
September 30, 2022	$1,323.3		$834.0		$489.3

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 Market (c)		Alternatives(b)
June 30, 2022	$1,390.4		$644.8		$309.1		$72.9		$164.0		$199.6
Long-term inflows	68.7		25.0		30.4		3.2		—		10.1
Long-term outflows	(76.4)		(32.4)		(23.9)		(4.7)		—		(15.4)
Net long-term flows	(7.7)		(7.4)		6.5		(1.5)		—		(5.3)
Net flows in non-management fee earning AUM (a)	1.9		1.8		0.1		—		—		—
Net flows in money market funds	10.0		—		0.3		—		9.7		—
Total net flows	4.2		(5.6)		6.9		(1.5)		9.7		(5.3)
Reinvested distributions	0.9		0.2		0.4		0.1		—		0.2
Market gains and losses	(55.1)		(36.1)		(7.0)		(5.2)		0.2		(7.0)
Foreign currency translation	(17.1)		(5.8)		(5.1)		(2.7)		(1.8)		(1.7)
September 30, 2022	$1,323.3		$597.5		$304.3		$63.6		$172.1		$185.8
Average AUM	$1,416.2		$669.5		$311.4		$69.9		$168.8		$196.6

 

By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
June 30, 2022	$1,390.4		$973.5		$224.4		$192.5
Long-term inflows	68.7		34.8		20.1		13.8
Long-term outflows	(76.4)		(44.7)		(15.0)		(16.7)
Net long-term flows	(7.7)		(9.9)		5.1		(2.9)
Net flows in non-management fee earning AUM (a)	1.9		2.8		0.6		(1.5)
Net flows in money market funds	10.0		10.9		(0.4)		(0.5)
Total net flows	4.2		3.8		5.3		(4.9)
Reinvested distributions	0.9		0.8		—		0.1
Market gains and losses	(55.1)		(35.9)		(9.4)		(9.8)
Foreign currency translation	(17.1)		(1.4)		(10.0)		(5.7)
September 30, 2022	$1,323.3		$940.8		$210.3		$172.2

See the footnotes immediately following these tables.

 

Invesco Ltd.
Quarterly Assets Under Management - Active (d)
in billions	Q3-22		Q2-22		% Change		Q3-21
Beginning Assets	$          957.9		$        1,042.7		(8.1) %		$        1,066.0
Long-term inflows	44.5		48.8		(8.8) %		60.3
Long-term outflows	(51.8)		(60.1)		(13.8) %		(53.5)
Net long-term flows	(7.3)		(11.3)		(35.4) %		6.8
Net flows in money market funds	10.0		3.5		185.7 %		2.6
Total net flows	2.7		(7.8)		N/A		9.4
Reinvested distributions	0.9		1.8		(50.0) %		0.8
Market gains and losses	(32.0)		(61.6)		(48.1) %		(13.1)
Foreign currency translation	(15.4)		(17.2)		(10.5) %		(3.1)
Ending Assets	$          914.1		$          957.9		(4.6) %		$        1,060.0
Average long-term AUM	$          793.0		$          829.7		(4.4) %		$          930.5
Average AUM	$          961.6		$          989.2		(2.8) %		$        1,065.6

 

By channel: (in billions)	Total		Retail		Institutional
June 30, 2022	$957.9		$509.0		$448.9
Long-term inflows	44.5		23.6		20.9
Long-term outflows	(51.8)		(35.8)		(16.0)
Net long-term flows	(7.3)		(12.2)		4.9
Net flows in money market funds	10.0		(1.0)		11.0
Total net flows	2.7		(13.2)		15.9
Reinvested distributions	0.9		0.8		0.1
Market gains and losses	(32.0)		(27.1)		(4.9)
Foreign currency translation	(15.4)		(6.7)		(8.7)
September 30, 2022	$914.1		$462.8		$451.3

 

By asset class: (in billions)	Total		Equity		Fixed Income		Balanced		Money Market(c)		Alternatives(b)
June 30, 2022	$957.9		$287.5		$270.6		$72.0		$164.0		$163.8
Long-term inflows	44.5		10.4		25.2		3.2		—		5.7
Long-term outflows	(51.8)		(16.9)		(21.5)		(4.7)		—		(8.7)
Net long-term flows	(7.3)		(6.5)		3.7		(1.5)		—		(3.0)
Net flows in money market funds	10.0		—		0.3		—		9.7		—
Total net flows	2.7		(6.5)		4.0		(1.5)		9.7		(3.0)
Reinvested distributions	0.9		0.2		0.4		0.1		—		0.2
Market gains and losses	(32.0)		(16.5)		(5.6)		(5.1)		0.2		(5.0)
Foreign currency translation	(15.4)		(4.7)		(4.7)		(2.7)		(1.8)		(1.5)
September 30, 2022	$914.1		$260.0		$264.7		$62.8		$172.1		$154.5
Average AUM	$961.6		$290.7		$271.7		$69.0		$168.8		$161.4

See the footnotes immediately following these tables.

 

Invesco Ltd.
Quarterly Assets Under Management - Active (d) (continued)
By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
June 30, 2022	$957.9		$649.1		$191.3		$117.5
Long-term inflows	44.5		20.6		18.9		5.0
Long-term outflows	(51.8)		(31.1)		(13.3)		(7.4)
Net long-term flows	(7.3)		(10.5)		5.6		(2.4)
Net flows in money market funds	10.0		10.9		(0.4)		(0.5)
Total net flows	2.7		0.4		5.2		(2.9)
Reinvested distribution	0.9		0.8		—		0.1
Market gains and losses	(32.0)		(19.7)		(6.8)		(5.5)
Foreign currency translation	(15.4)		(1.3)		(8.8)		(5.3)
September 30, 2022	$914.1		$629.3		$180.9		$103.9

See the footnotes immediately following these tables.

 

Invesco Ltd.
Quarterly Assets Under Management - Passive (d)
in billions	Q3-22		Q2-22		% Change		Q3-21
Beginning Assets	$432.5		$513.2		(15.7) %		$459.0
Long-term inflows	24.2		32.6		(25.8) %		31.4
Long-term outflows	(24.6)		(28.1)		(12.5) %		(24.9)
Net long-term flows	(0.4)		4.5		N/A		6.5
Net flows in non-management fee earning AUM (a)	1.9		(2.0)		N/A		5.5
Total net flows	1.5		2.5		(40.0) %		12.0
Market gains and losses	(23.1)		(80.7)		(71.4) %		(1.5)
Foreign currency translation	(1.7)		(2.5)		(32.0) %		(0.9)
Ending Assets	$409.2		$432.5		(5.4) %		$468.6
Average long-term AUM	$278.9		$287.5		(3.0) %		$273.1
Average AUM	$454.6		$468.0		(2.9) %		$474.9
Average QQQ AUM	$165.9		$169.0		(1.8) %		$186.2

 

By channel: (in billions)	Total		Retail		Institutional
June 30, 2022	$432.5		$389.8		$42.7
Long-term inflows	24.2		23.7		0.5
Long-term outflows	(24.6)		(23.1)		(1.5)
Net long-term flows	(0.4)		0.6		(1.0)
Net flows in non-management fee earning AUM (a)	1.9		1.8		0.1
Total net flows	1.5		2.4		(0.9)
Market gains and losses	(23.1)		(20.3)		(2.8)
Foreign currency translation	(1.7)		(0.7)		(1.0)
September 30, 2022	$409.2		$371.2		$38.0

 

By asset class: (in billions)	Total		Equity		Fixed Income		Balanced		Money Market(c)		Alternatives(b)
June 30, 2022	$432.5		$357.3		$38.5		$0.9		$—		$35.8
Long-term inflows	24.2		14.6		5.2		—		—		4.4
Long-term outflows	(24.6)		(15.5)		(2.4)		—		—		(6.7)
Net long-term flows	(0.4)		(0.9)		2.8		—		—		(2.3)
Net flows in non-management fee earning AUM (a)	1.9		1.8		0.1		—		—		—
Total net flows	1.5		0.9		2.9		—		—		(2.3)
Market gains and losses	(23.1)		(19.6)		(1.4)		(0.1)		—		(2.0)
Foreign currency translation	(1.7)		(1.1)		(0.4)		—		—		(0.2)
September 30, 2022	$409.2		$337.5		$39.6		$0.8		$—		$31.3
Average AUM	$454.6		$378.8		$39.7		$0.9		$—		$35.2

See the footnotes immediately following these tables.

 

Invesco Ltd.
Quarterly Assets Under Management - Passive (d) (continued)
By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
June 30, 2022	$432.5		$324.4		$33.1		$75.0
Long-term inflows	24.2		14.2		1.2		8.8
Long-term outflows	(24.6)		(13.6)		(1.7)		(9.3)
Net long-term flows	(0.4)		0.6		(0.5)		(0.5)
Net flows in non-management fee earning AUM (a)	1.9		2.8		0.6		(1.5)
Total net flows	1.5		3.4		0.1		(2.0)
Market gains and losses	(23.1)		(16.2)		(2.6)		(4.3)
Foreign currency translation	(1.7)		(0.1)		(1.2)		(0.4)
September 30, 2022	$409.2		$311.5		$29.4		$68.3

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Assets Under Management
in billions	September 30, 2022		September 30, 2021		% Change
Beginning Assets	$1,610.9		$1,349.9		19.3 %
Long-term inflows	256.4		326.3		(21.4) %
Long-term outflows	(253.7)		(257.4)		(1.4) %
Net long-term flows	2.7		68.9		(96.1) %
Net flows in non-management fee earning AUM (a)	(1.1)		8.1		N/A
Net flows in money market funds	26.3		29.7		(11.4) %
Total net flows	27.9		106.7		(73.9) %
Reinvested distributions	3.5		2.6		34.6 %
Market gains and losses	(278.3)		75.6		N/A
Foreign currency translation	(40.7)		(6.2)		556.5 %
Ending Assets	$1,323.3		$1,528.6		(13.4) %
Average long-term AUM	$1,125.6		$1,162.6		(3.2) %
Average AUM	$1,472.8		$1,471.9		0.1 %

 

in billions	Total AUM		Active(d)		Passive(d)
December 31, 2021	$1,610.9		$1,082.5		$528.4
Long-term inflows	256.4		155.0		101.4
Long-term outflows	(253.7)		(172.8)		(80.9)
Net long-term flows	2.7		(17.8)		20.5
Net flows in non-management fee earning AUM (a)	(1.1)		—		(1.1)
Net flows in money market funds	26.3		26.3		—
Total net flows	27.9		8.5		19.4
Reinvested distributions	3.5		3.5		—
Market gains and losses	(278.3)		(143.6)		(134.7)
Foreign currency translation	(40.7)		(36.8)		(3.9)
September 30, 2022	$1,323.3		$914.1		$409.2
Average AUM	$1,472.8		$1,000.3		$472.5

 

By channel: (in billions)	Total		Retail		Institutional
December 31, 2021	$1,610.9		$1,106.5		$504.4
Long-term inflows	256.4		190.8		65.6
Long-term outflows	(253.7)		(200.3)		(53.4)
Net long-term flows	2.7		(9.5)		12.2
Net flows in non-management fee earning AUM (a)	(1.1)		2.4		(3.5)
Net flows in money market funds	26.3		1.5		24.8
Total net flows	27.9		(5.6)		33.5
Reinvested distributions	3.5		3.2		0.3
Market gains and losses	(278.3)		(254.3)		(24.0)
Foreign currency translation	(40.7)		(15.8)		(24.9)
September 30, 2022	$1,323.3		$834.0		$489.3

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Asset Under Management (continued)
By asset class: (in billions)	Total		Equity		Fixed Income		Balanced		Money Market (c)		Alternatives(b)
December 31, 2021	$1,610.9		$841.6		$334.8		$88.6		$148.8		$197.1
Long-term inflows	256.4		111.5		88.9		11.8		—		44.2
Long-term outflows	(253.7)		(121.0)		(72.8)		(16.4)		—		(43.5)
Net long-term flows	2.7		(9.5)		16.1		(4.6)		—		0.7
Net flows in non-management fee earning AUM (a)	(1.1)		2.4		(3.5)		—		—		—
Net flows in money market funds	26.3		—		0.3		—		26.0		—
Total net flows	27.9		(7.1)		12.9		(4.6)		26.0		0.7
Reinvested distributions	3.5		1.4		1.1		0.3		—		0.7
Market gains and losses	(278.3)		(224.5)		(31.3)		(15.3)		1.2		(8.4)
Foreign currency translation	(40.7)		(13.9)		(13.2)		(5.4)		(3.9)		(4.3)
September 30, 2022	$1,323.3		$597.5		$304.3		$63.6		$172.1		$185.8
Average AUM	$1,472.8		$716.0		$317.5		$75.8		$161.0		$202.5

 

By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
December 31, 2021	1,610.9		1,132.5		247.3		231.1
Long-term inflows	256.4		145.3		56.9		54.2
Long-term outflows	(253.7)		(151.2)		(46.1)		(56.4)
Net long-term flows	2.7		(5.9)		10.8		(2.2)
Net flows in non-management fee earning AUM (a)	(1.1)		(1.9)		1.4		(0.6)
Net flows in money market funds	26.3		27.3		0.4		(1.4)
Total net flows	27.9		19.5		12.6		(4.2)
Reinvested distributions	3.5		3.3		—		0.2
Market gains and losses	(278.3)		(212.2)		(25.3)		(40.8)
Foreign currency translation	(40.7)		(2.3)		(24.3)		(14.1)
September 30, 2022	1,323.3		940.8		210.3		172.2

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Assets Under Management - Active (d)
in billions	September 30, 2022		September 30, 2021		% Change
Beginning Assets	$                    1,082.5		$                      979.3		10.5 %
Long-term inflows	155.0		197.7		(21.6) %
Long-term outflows	(172.8)		(181.3)		(4.7) %
Net long-term flows	(17.8)		16.4		N/A
Net flows in money market funds	26.3		29.7		(11.4) %
Total net flows	8.5		46.1		(81.6) %
Reinvested distributions	3.5		2.6		34.6 %
Market gains and losses	(143.6)		36.4		N/A
Foreign currency translation	(36.8)		(4.4)		736.4 %
Ending Assets	$                       914.1		$                   1,060.0		(13.8) %
Average long-term AUM	$                       839.4		$                      914.9		(8.3) %
Average AUM	$                    1,000.3		$                   1,041.0		(3.9) %

 

By channel: (in billions)	Total		Retail		Institutional
December 31, 2021	$1,082.5		$631.7		$450.8
Long-term inflows	155.0		91.6		63.4
Long-term outflows	(172.8)		(123.0)		(49.8)
Net long-term flows	(17.8)		(31.4)		13.6
Net flows in money market funds	26.3		1.5		24.8
Total net flows	8.5		(29.9)		38.4
Reinvested distributions	3.5		3.2		0.3
Market gains and losses	(143.6)		(128.0)		(15.6)
Foreign currency translation	(36.8)		(14.2)		(22.6)
September 30, 2022	$          914.1		$          462.8		$          451.3

 

By asset class: (in billions)	Total		Equity		Fixed Income		Balanced		Money Market(c)		Alternatives(b)
December 31, 2021	$1,082.5		$389.6		$293.1		$87.4		$148.8		$163.6
Long-term inflows	155.0		43.2		73.5		11.8		—		26.5
Long-term outflows	(172.8)		(65.6)		(65.1)		(16.3)		—		(25.8)
Net long-term flows	(17.8)		(22.4)		8.4		(4.5)		—		0.7
Net flows in money market funds	26.3		—		0.3		—		26.0		—
Total net flows	8.5		(22.4)		8.7		(4.5)		26.0		0.7
Reinvested distributions	3.5		1.4		1.1		0.3		—		0.7
Market gains and losses	(143.6)		(97.2)		(25.9)		(15.0)		1.2		(6.7)
Foreign currency translation	(36.8)		(11.4)		(12.3)		(5.4)		(3.9)		(3.8)
September 30, 2022	$914.1		$260.0		$264.7		$62.8		$172.1		$154.5
Average AUM	$1,000.3		$320.8		$277.7		$75.0		$161.0		$165.8

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Assets Under Management - Active (d) (continued)
By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
December 31, 2021	$1,082.5		$724.5		$208.8		$149.2
Long-term inflows	155.0		83.8		52.5		18.7
Long-term outflows	(172.8)		(102.9)		(41.2)		(28.7)
Net long-term flows	(17.8)		(19.1)		11.3		(10.0)
Net flows in non-management fee earning AUM (a)	—		—		0.1		(0.1)
Net flows in money market funds	26.3		27.3		0.4		(1.4)
Total net flows	8.5		8.2		11.8		(11.5)
Reinvested distributions	3.5		3.3		—		0.2
Market gains and losses	(143.6)		(104.5)		(18.2)		(20.9)
Foreign currency translation	(36.8)		(2.2)		(21.5)		(13.1)
September 30, 2022	$914.1		$629.3		$180.9		$103.9

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Assets Under Management - Passive (d)
in billions	September 30, 2022		September 30, 2021		% Change
Beginning Assets	$528.4		$370.6		42.6 %
Long-term inflows	101.4		128.6		(21.2) %
Long-term outflows	(80.9)		(76.1)		6.3 %
Net long-term flows	20.5		52.5		(61.0) %
Net flows in non-management fee earning AUM (a)	(1.1)		8.1		N/A
Total net flows	19.4		60.6		(68.0) %
Market gains and losses	(134.7)		39.2		N/A
Foreign currency translation	(3.9)		(1.8)		116.7 %
Ending Assets	$409.2		$468.6		(12.7) %
Average long-term AUM	$286.2		$247.7		15.5 %
Average AUM	$472.5		$430.9		9.7 %
Average QQQ AUM	$174.6		$167.3		4.4 %

 

By channel: (in billions)	Total		Retail		Institutional
December 31, 2021	$528.4		$474.8		$53.6
Long-term inflows	101.4		99.2		2.2
Long-term outflows	(80.9)		(77.3)		(3.6)
Net long-term flows	20.5		21.9		(1.4)
Net flows in non-management fee earning AUM (a)	(1.1)		2.4		(3.5)
Total net flows	19.4		24.3		(4.9)
Market gains and losses	(134.7)		(126.3)		(8.4)
Foreign currency translation	(3.9)		(1.6)		(2.3)
September 30, 2022	$409.2		$371.2		$38.0

 

By asset class: (in billions)	Total		Equity		Fixed Income		Balanced		Money Market(c)		Alternatives(b)
December 31, 2021	$528.4		$452.0		$41.7		$1.2		$—		$33.5
Long-term inflows	101.4		68.3		15.4		—		—		17.7
Long-term outflows	(80.9)		(55.4)		(7.7)		(0.1)		—		(17.7)
Net long-term flows	20.5		12.9		7.7		(0.1)		—		—
Net flows in non-management fee earning AUM (a)	(1.1)		2.4		(3.5)		—		—		—
Total net flows	19.4		15.3		4.2		(0.1)		—		—
Market gains and losses	(134.7)		(127.3)		(5.4)		(0.3)		—		(1.7)
Foreign currency translation	(3.9)		(2.5)		(0.9)		—		—		(0.5)
September 30, 2022	$409.2		$337.5		$39.6		$0.8		$—		$31.3
Average AUM	$472.5		$395.2		$39.8		$0.9		$—		$36.6

See the footnotes immediately following these tables.

 

Invesco Ltd.
Year-to-Date Assets Under Management - Passive (d) (continued)
By client domicile: (in billions)	Total		Americas		Asia Pacific		EMEA(e)
December 31, 2021	$528.4		$408.0		$38.5		$81.9
Long-term inflows	101.4		61.5		4.4		35.5
Long-term outflows	(80.9)		(48.3)		(4.9)		(27.7)
Net long-term flows	20.5		13.2		(0.5)		7.8
Net flows in non-management fee earning AUM (a)	(1.1)		(1.9)		1.3		(0.5)
Total net flows	19.4		11.3		0.8		7.3
Market gains and losses	(134.7)		(107.7)		(7.1)		(19.9)
Foreign currency translation	(3.9)		(0.1)		(2.8)		(1.0)
September 30, 2022	$409.2		$311.5		$29.4		$68.3

See the footnotes immediately following these tables.

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 September 30, 2022 includes $172.1 billion in money market AUM and $157.0 billion in non-management fee earning AUM (June 30, 2022: $164.0 billion and $162.8 billion, respectively; September 30, 2021: $138.5 billion and $196.9 billion, respectively).
(d)	Passive AUM includes index-based ETFs, unit investment trusts (UITs), non-fee earning leverage and other passive mandates. Active AUM is total AUM less Passive AUM.
(e)	In the third quarter of 2022, UK is now presented as part of EMEA. EMEA includes UK net long-term outflows of $1.3 billion and $5.4 billion for the three and nine months ended September 30, 2022, respectively. Ending AUM of UK as of September 30, 2022 was $39.5 billion.

 

Invesco Ltd.
Investment Capabilities Performance Overview
	Benchmark Comparison				Peer Group Comparison
	% of AUM in Top Half of Benchmark				% of AUM in Top Half of Peer Group
Equities (1)	1yr	3yr	5yr	10yr	1yr	3yr	5yr	10yr
U.S. Core    (4%)	42 %	30 %	16 %	16 %	21 %	16 %	15 %	— %
U.S. Growth    (6%)	19 %	46 %	46 %	46 %	32 %	43 %	43 %	37 %
U.S. Value    (7%)	91 %	60 %	91 %	87 %	81 %	55 %	41 %	37 %
Sector    (1%)	8 %	9 %	2 %	53 %	52 %	30 %	23 %	54 %
UK    (1%)	56 %	37 %	39 %	43 %	98 %	29 %	37 %	37 %
Canadian    (<1%)	100 %	100 %	66 %	58 %	87 %	79 %	— %	— %
Asian    (3%)	60 %	78 %	85 %	91 %	53 %	38 %	63 %	87 %
Continental European    (1%)	76 %	47 %	7 %	93 %	85 %	37 %	19 %	91 %
Global    (5%)	19 %	14 %	— %	79 %	14 %	5 %	1 %	22 %
Global Ex U.S. and Emerging Markets    (8%)	12 %	20 %	30 %	99 %	10 %	1 %	10 %	12 %
Fixed Income (1)
Money Market    (26%)	82 %	96 %	97 %	100 %	84 %	82 %	82 %	98 %
U.S. Fixed Income    (12%)	27 %	78 %	79 %	97 %	19 %	54 %	85 %	92 %
Global Fixed Income    (7%)	41 %	84 %	80 %	90 %	65 %	69 %	76 %	92 %
Stable Value    (6%)	100 %	100 %	100 %	100 %	97 %	97 %	97 %	100 %
Other (1)
Alternatives    (6%)	22 %	40 %	30 %	33 %	62 %	40 %	49 %	42 %
Balanced    (7%)	47 %	94 %	61 %	62 %	57 %	59 %	82 %	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.
	Data as of September 30, 2022. AUM measured in the one, three, five and ten year quartile rankings represents 46%, 46%, 45% and 41% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, five and ten year basis represents 60%, 58%, 57% and 51% of total Invesco AUM. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (e.g., Morningstar, IA, Lipper, eVestment, Mercer, Galaxy, SITCA, Value Research) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings are calculated against all funds in each peer group. Rankings for the primary share class of the most representative fund in each composite are applied to all products within each composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience.
(1)	Numbers in parenthesis reflect AUM for each investment product (see Note above for exclusions) as a percentage of the total AUM for the five-year peer group ($598.3 billion).

 

Invesco Ltd.
Supplemental Information (1)
	For the three months ended September 30, 2022						For the three months ended September 30, 2021
Cash flow information $ in millions	U.S. GAAP		Impact of CIP		Excluding CIP		U.S. GAAP		Impact of CIP		Excluding CIP
Invesco and CIP cash, cash equivalents and restricted cash, beginning of period (2)	$     1,132.8		$       196.0		$         936.8		$     1,737.1		$       404.1		$        1,333.0
Cash flows from operating activities	492.0		(45.5)		537.5		601.0		(20.8)		621.8
Cash flows from investing activities	(82.2)		(15.3)		(66.9)		(364.4)		(350.2)		(14.2)
Cash flows from financing activities	(265.8)		69.4		(335.2)		359.1		507.6		(148.5)
Increase/(decrease) in cash and cash equivalents	144.0		8.6		135.4		595.7		136.6		459.1
Foreign exchange movement on cash and cash equivalents	(50.8)		(2.2)		(48.6)		(23.3)		(4.4)		(18.9)
Invesco and CIP cash and cash equivalents,  end of the period	$     1,226.0		$       202.4		$       1,023.6		$     2,309.5		$       536.3		$        1,773.2

 

	For the nine months ended September 30, 2022						For the nine months ended September 30, 2021
Cash flow information $ in millions	U.S. GAAP		Impact of CIP		Excluding CIP		U.S. GAAP		Impact of CIP		Excluding CIP
Invesco and CIP cash, cash equivalents and restricted cash, beginning of period (2)	$     2,147.1		$       250.7		$       1,896.4		$     1,839.3		$       301.7		$        1,537.6
Cash flows from operating activities	239.7		(452.7)		692.4		1,081.8		(141.2)		1,223.0
Cash flows from investing activities	(238.0)		(53.6)		(184.4)		(588.1)		(519.2)		(68.9)
Cash flows from financing activities	(798.8)		468.0		(1,266.8)		14.2		904.1		(889.9)
Increase/(decrease) in cash and cash equivalents	(797.1)		(38.3)		(758.8)		507.9		243.7		264.2
Foreign exchange movement on cash and cash equivalents	(124.0)		(10.0)		(114.0)		(37.7)		(9.1)		(28.6)
Invesco and CIP cash and cash equivalents,  end of the period	$     1,226.0		$       202.4		$       1,023.6		$     2,309.5		$       536.3		$        1,773.2

(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)	There was no restricted cash during three and nine months ended September 30,2022. The beginning of period cash excluding CIP for the nine months ended September 30, 2021 included restricted cash of $129.2 million. There was no restricted cash at the end of the period for the three and nine months ended September 30, 2021.

 

Invesco Ltd.
Supplemental Information(1)
	As of September 30, 2022								As of December  31, 2021
Balance Sheet information $ in millions	U.S. GAAP		Impact of CIP		Impact of Policyholders		As Adjusted		U.S. GAAP		Impact of CIP		Impact of Policyholders		As Adjusted
ASSETS
Cash and cash equivalents	$  1,023.6		$          —		$                —		$   1,023.6		$  1,896.4		—		—		$    1,896.4
Investments	906.7		(433.7)		—		1,340.4		926.3		(454.8)		—		1,381.1
Investments and other assets of       CIP	8,675.7		8,675.7		—		—		9,575.1		9,575.1		—		—
Cash and cash equivalents of      CIP	202.4		202.4		—		—		250.7		250.7		—		—
Assets held for policyholders	754.3		—		754.3		—		1,893.6		—		1,893.6		—
Goodwill and intangible assets,      net	15,551.8		—		—		15,551.8		16,110.5		—		—		16,110.5
Other assets (2)	2,157.4		(9.9)		—		2,167.3		2,033.0		(6.4)		—		2,039.4
Total assets	29,271.9		8,434.5		754.3		20,083.1		32,685.6		9,364.6		1,893.6		21,427.4
LIABILITIES
Debt of CIP	6,548.7		6,548.7		—		—		7,336.1		7,336.1		—		—
Other liabilities of CIP	286.7		286.7		—		—		846.3		846.3		—		—
Policyholder payables	754.3		—		754.3		—		1,893.6		—		1,893.6		—
Debt	1,487.1		—		—		1,487.1		2,085.1		—		—		2,085.1
Other liabilities (3)	3,691.6		—		—		3,691.6		3,845.7		—		—		3,845.7
Total liabilities	12,768.4		6,835.4		754.3		5,178.7		16,006.8		8,182.4		1,893.6		5,930.8
EQUITY
Total equity attributable to      Invesco Ltd.	14,903.7		(0.1)		—		14,903.8		15,495.8		(0.1)		—		15,495.9
Noncontrolling interests (4)	1,599.8		1,599.2		—		0.6		1,183.0		1,182.3		—		0.7
Total equity	16,503.5		1,599.1		—		14,904.4		16,678.8		1,182.2		—		15,496.6
Total liabilities and equity	$ 29,271.9		$  8,434.5		$           754.3		$ 20,083.1		$ 32,685.6		$ 9,364.6		$         1,893.6		$  21,427.4

(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.

FAQ

What were Invesco's earnings per share for Q3 2022?

Invesco reported a diluted EPS of $0.39 for Q3 2022.

What were the net flows for Invesco in Q3 2022?

Invesco experienced net long-term outflows of $7.7 billion in Q3 2022.

How did Invesco's assets under management change in Q3 2022?

Ending AUM decreased to $1,323.3 billion, down 4.8% from the prior quarter.

What are the key areas of inflows for Invesco?

Invesco saw net long-term inflows of $3.7 billion from active fixed income and $3.9 billion from institutional channels.

When does Invesco plan to pay dividends for Q3 2022?

Invesco announced a cash dividend of $0.1875 per share, payable on December 2, 2022.