Invesco Ltd
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
IVZ$27.080.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0000914208-24-000276
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000914208-24-000335
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 225 current paragraphs.
140 unchanged; 57 reworded; 21 added; 6 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 24 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Pullbacks in the U.S. market in April eased and markets improved as the quarter progressed. Cooling inflation afforded growing optimism for central bank interest rate cuts, albeit uncertainty around timing remains. Equities markets rebounded in China and the U.K. although other European markets declined. We continue to be well-positioned to capture flows with scale, performance and competitive strength in capabilities that will drive the asset management industry forward.
Current report
Six months ended June 30, 2024 and 2023:
Current report
Performance fees were $8.7 million and $9.5 million for the three and six months ended June 30, 2024, respectively, and were primarily generated from private markets real estate products.
Current report
Performance fees were $19.6 million and $25.2 million for the three and six months ended June 30, 2023, respectively, and were primarily generated from private markets real estate products.
Current report
In the six months ended June 30, 2024, Other revenues were $96.0 million as compared to $97.9 million for the six months ended June 30, 2023.
Current report
Management and Performance fees earned from CIP were $11.8 million for the three months ended June 30, 2024 (three months ended June 30, 2023: $12.8 million).
Current report
Management and Performance fees earned from CIP were $19.0 million for the six months ended June 30, 2024 (six months ended June 30, 2023: $25.1 million).
Current report
During the six months ended June 30, 2024, Operating expenses increased $91.0 million compared to the six months ended June 30, 2023.
Current report
Employee compensation was $452.3 million for the three months ended June 30, 2024 as compared to $475.7 million for the three months ended June 30, 2023. This decrease was primarily due to lower costs related to executive retirements and organizational changes.
Current report
Marketing expenses were $20.6 million for the three months ended June 30, 2024 as compared to $23.1 million for the three months ended June 30, 2023.
Current report
Marketing expenses were $38.7 million for the six months ended June 30, 2024 as compared to $42.7 million for the six months ended June 30, 2023.
Current report
Property, office and technology costs were $116.4 million for the three months ended June 30, 2024 as compared to $112.7 million for the three months ended June 30, 2023.
Current report
General and administrative expenses were $180.4 million for the three months ended June 30, 2024 as compared to $151.9 million for the three months ended June 30, 2023. The increase was primarilydue to the accrual of a $50.0 million liability in the second quarter in connection with a previously disclosed SEC investigation into electronic business communications recordkeeping requirements and a separate regulatory matter, which was partially offset by lower professional fees of $18.8 million.
Current report
General and administrative expenses were $318.9 million for the six months ended June 30, 2024 as compared to $256.9 million for the six months ended June 30, 2023. The increase was primarily due to the accrual of a $50.0 million liability in the second quarter of 2024 in connection with a previously disclosed SEC investigation into electronic business communications recordkeeping requirements and a separate regulatory matter. In addition, the expense for the six months ended June 30, 2024 was lower due to$14.8 million of indirect tax refunds.
Current report
Interest and dividend income was $23.4 million for the six months ended June 30, 2024 as compared to $15.7 million for the six months ended June 30, 2023. The increase was primarily due to higher interest income earned from Cash and cash equivalents and higher dividend income earned on our private markets investments.
Current report
Interest expense was $32.2 million for the six months ended June 30, 2024 as compared to $36.4 million for the six months ended June 30, 2023 as a result of the decrease in outstanding debt.
Current report
Other gains/(losses), net was a net gain of $39.5 million for the six months ended June 30, 2024 as compared to a net gain of $48.3 million for the six months ended June 30, 2023. The net gains for the six months ended June 30, 2024 and June 30, 2023 included mark-to-market net gains on investments and instruments held for our deferred compensation plans and on seed capital investments.
Current report
For the six months ended June 30, 2024, Other income/(expense) of CIP, net was net income of $71.4 million (six months ended June 30, 2023: net expense of $20.6 million). Interest and dividend income of CIP decreased $53.0 million to $250.3 million (six months ended June 30, 2023: $303.3 million). Interest expense of CIP decreased $37.1 million to $166.9 million (six months ended June 30, 2023: $204.0 million). Unrealized gains/(losses) of CIP were net losses of $12.0 million (six months ended June 30, 2023: net losses of $119.9 million).
Current report
(2) Unusual or otherwise non-recurring gains and losses, as defined in our credit agreement, are adjusted for in the determination of Covenant Adjusted EBITDA. The contingent liability related to two regulatory matters is a non-recurring loss and has been removed from the determination of Covenant Adjusted EBITDA.
Current report
Common Share Repurchase Plan
Current report
The company did not purchase shares in the open market during the six months ended June 30, 2024 (three months and six months ended June 30, 2023: 9.6 million common shares for $150.0 million). At June 30, 2024, approximately $382.2 million remains available under the share repurchase authorizations approved by the Board on July 22, 2016.
Removed paragraphs (6)
Previous report
Economic conditions remained relatively resilient in the first quarter, and even though this diminished expectations for central bank interest rate cuts this year, equity markets continued to rise. More modest growth was recorded in developed markets outside of the U.S. In China, markets continued to lag, but economic indicators are showing signs of bottoming and some improvement. Fixed income markets were generally weak during the quarter. While this sentiment drove organic inflows at Invesco, our asset mix profile remained constrained as did revenue growth due to investors shifting their investments into lower fee offerings. However, we are strongly positioned to capture flows with scale, performance and competitive strength in capabilities that will drive the asset management industry forward.
Previous report
For the three months ended March 31, 2024, Performance fees were $0.8 million as compared to $5.6 million three months ended March 31, 2023, respectively.
Previous report
Management and Performance fees earned from CIP were $7.2 million for the three months ended March 31, 2024 (three months ended March 31, 2023: $12.3 million).
Previous report
Marketing expenses were $18.1 million for the three months ended March 31, 2024 as compared to $19.6 million for the three months ended March 31, 2023.
Previous report
General and administrative expenses were $138.5 million for the three months ended March 31, 2024 as compared to $105.0 million for the three months ended March 31, 2023. The increase was primarily due to $20.0 million of insurance recoveries and $9.8 million of indirect tax refunds which were received in the first quarter of 2023.
Previous report
(1) As of March 31, 2024, the balance on the$2.0 billion capacity credit agreement was $367.6 million.
Reworded paragraphs (57)
Previous wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and related Notes thereto, which appear elsewhere in this Report. Except for the historical financial information, this Report may include statements that constitute “forward-looking statements” under the United States securities laws. Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow, capital expenditures, and AUM which could differ materially from actual results 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, the prospects for certain legal contingencies, and other aspects of our business or general economic conditions. In addition, when used in this Report or such other documents or statements, 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.
Current wording
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and related Notes thereto, which appear elsewhere in this Report. Except for the historical financial information, this Report may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow, capital expenditures, and AUM which could differ materially from actual results 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, the prospects for certain legal contingencies, and other aspects of our business or general economic conditions. In addition, when used in this Report or such other documents or statements, 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.
Previous wording
The table below summarizes returns based on price appreciation/(depreciation) of several major market indices for the three months ended March 31, 2024 and 2023:
Current wording
The table below summarizes returns based on price appreciation/(depreciation) of several major market indices for the three and six months ended June 30, 2024 and 2023:
Previous wording
We had $6.3 billion of net long-term inflows for the quarter, primarily driven by Exchange-traded funds (ETFs) and Index, Fundamental Fixed Income and Private Markets, and our ending AUM grew 12% year-over-year.
Current wording
We had $16.7 billion of net long-term inflows for the quarter, primarily driven by Exchange-traded funds (ETFs) and Index, APAC Managed, Private Markets, and Fundamental Fixed Income, driving total AUM to a record $1.7 trillion. Our ending AUM grew 12% year-over-year.
Previous wording
We remain highly focused on our capital priorities, investing in our key capabilities, efficiently allocating resources, and simplifying and streamlining the organization to better position the company for greater scale, performance and improved profitability. During the quarter, we redeemed our $600 million senior notes which were due on January 30, 2024 and continued to maintain our debt at lower levels consistent with our commitment to improve our leverage profile. We believe the progress we have made to build financial flexibility has Invesco well-positioned to navigate various market conditions and deliver long-term growth. We remain committed to returning capital to shareholders longer term through a combination of modestly increasing dividends and share repurchases. To this end, the Board approved an increase in our quarterly dividend from $0.20 to $0.205 per share beginning with the dividend that will be paid to holders of common shares in the second quarter of 2024.
Current wording
We remain highly focused on our capital priorities, investing in our key capabilities, efficiently allocating resources, and simplifying and streamlining the organization to better position the company for greater scale, performance and improved profitability. During the quarter, adjusted operating margin improved and we continued to deliver on our commitment to improve our leverage profile and maintain a strong balance sheet. We believe the progress we have made to build financial flexibility has Invesco well-positioned to navigate various market conditions and deliver long-term growth. We remain committed to returning capital to shareholders longer term through a combination of modestly increasing dividends and share repurchases. We plan to begin executing share buybacks in the third quarter.
Previous wording
The company provides investment management services to, and has transactions with, retail mutual funds and other investment products sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products. Investment products that are consolidated are referred to in this Report as CIP. The company’s economic risk with respect to each investment in CIP is limited to its equity ownership, unfunded equity commitments and any uncollected management and performance fees. See also Note 11, "Consolidated Investment Products," for additional information regarding the impact of the consolidation of managed funds.
Current wording
The company provides investment management services to, and has transactions with, investment products sponsored by the company in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products. Investment products that are consolidated are referred to in this Report as CIP. The company’s economic risk with respect to each investment in CIP is limited to its equity ownership, unfunded equity commitments and any uncollected management and performance fees. See also Note 11, "Consolidated Investment Products," for additional information regarding the impact of the consolidation of managed funds.
Previous wording
The majority of the company’s CIP balances are CLO-related. The collateral assets of the collateralized loan obligations (CLOs) are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s direct investments in, and management and performance fees generated from, the CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets. Likewise, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be a company liability.
Current wording
The majority of the company’s CIP balances are related to collateralized loan obligations (CLOs). The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s direct investments in, and management and performance fees generated from, the CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider these assets to be company assets. Likewise, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be a company liability.
Previous wording
•Results of Operations (three months ended March 31, 2024 compared to three months ended March 31, 2023);
Current wording
•Results of Operations (three and six months ended June 30, 2024 compared tothree and six months ended June 30, 2023);
Previous wording
Wherever a non-GAAP measure is referenced, a disclosure will follow in the narrative or in the note referring the reader to the Schedule of Non-GAAP Information, where additional details regarding the use of the non-GAAP measure by the company are disclosed, along with reconciliations of the most directly comparable U.S. GAAP measures to the non-GAAP measures. To further enhance the readability of the Results of Operations section, separate tables for each of the revenue, expense and other income and expenses (non-operating income/expense) sections of the income statement introduce the narrative that follows, providing a section-by-section review of the company’s income statements for the periods presented.
Current wording
Wherever a non-GAAP measure is referenced, a disclosure will follow in the narrative or in the note referring the reader to the Schedule of Non-GAAP Information, where additional details regarding the use of the non-GAAP measure by the company are disclosed, along with reconciliations of the most directly comparable U.S. GAAP measures to the non-GAAP measures. To enhance the readability of the Results of Operations section, separate tables for each of the revenue, expense and other income and expenses (non-operating income/expense) sections of the income statement introduce the narrative that follows, providing a section-by-section review of the company’s income statements for the periods presented.
Previous wording
AUM measured in the one, three and five year quartile rankings represents 41%, 41% and 40% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three and five year basis represents 52%, 52%, and 48% of total Invesco AUM as of 3/31/2024. Peer group ranking are sourced from a widely-used third party ranking agency in each fund’s market (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.
Current wording
AUM measured in the one, three and five year quartile rankings represents 40%, 40% and 40% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three and five year basis represents 51%, 50%, and 47% of total Invesco AUM as of 6/30/2024. Peer group ranking are sourced from a widely-used third party ranking agency in each fund’s market (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.
Previous wording
(1)U.S. GAAP Gross revenue yield is not considered a meaningful effective fee rate measure. Gross revenue yield on AUM is equal to U.S. GAAP annualized total Operating revenues divided by average AUM, excluding Invesco Great Wall Fund Management Company Limited (Invesco Great Wall or IGW) AUM. The average AUM for IGW in the three months ended March 31, 2024 was $83.7 billion (three months ended March 31, 2023:$91.0 billion). It is appropriate to exclude the average AUM of IGW as the revenues resulting from these AUM are not presented in our operating revenues. This ratio is not a good measure because the numerator of the U.S. GAAP Gross revenue yield excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Net revenue yield metrics include the Net revenues and Average AUM of IGW and CIP. See “Schedule of Non-GAAP Information” for a reconciliation of Operating revenues to Net revenues.
Current wording
(1)U.S. GAAP Gross revenue yield is not considered a meaningful effective fee rate measure. Gross revenue yield on AUM is equal to U.S. GAAP annualized total Operating revenues divided by average AUM, excluding Invesco Great Wall Fund Management Company Limited (Invesco Great Wall or IGW) AUM. The average AUM for IGW in the three and six months ended June 30, 2024 was $87.4 billion and $85.6 billion (three and six months ended June 30, 2023: $89.4 billion and $90.2 billion). It is appropriate to exclude the average AUM of IGW as the revenues resulting from these AUM are not presented in our operating revenues. This ratio is not a good measure because the numerator of the U.S. GAAP Gross revenue yield excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Net revenue yield metrics include the Net revenues and Average AUM of IGW and CIP. See “Schedule of Non-GAAP Information” for a reconciliation of Operating revenues to Net revenues.
Previous wording
Market gains and losses include the net change in AUM resulting from changes in market values of the underlying securities from period to period. The table in the “Executive Overview” section of this Management’s Discussion and Analysis summarizes returns based on price appreciation/(depreciation) of several major market indices for the three months ended March 31, 2024 and 2023.
Current wording
Market gains and losses include the net change in AUM resulting from changes in market values of the underlying securities from period to period. The table in the “Executive Overview” section of this Management’s Discussion and Analysis summarizes returns based on price appreciation/(depreciation) of several major market indices for the three and six months ended June 30, 2024 and 2023.
Previous wording
During the three months ended March 31, 2024, we experienced a decrease in AUM of $8.2 billion, due to changes in foreign exchange rates. In the three months ended March 31, 2023, AUM increased by $1.9 billion, due to foreign exchange rate changes.
Current wording
During the three and six months ended June 30, 2024, we experienced a decrease in AUM of $3.9 billion and $12.1 billion due to changes in foreign exchange rates. In the three and six months ended June 30, 2023, AUM decreased by $6.8 billion and $4.9 billion, due to foreign exchange rate changes.
Previous wording
(5) Fundamental Fixed Income includes Fixed Income products; includes certain ETFs managed within this capability.
Current wording
(5) Fundamental Fixed Income includes Fixed Income products, including certain ETFs managed within this capability.
Previous wording
(7) Private Markets includes Private Credit and Real Estate investments; comprised primarily of Real Estate, CLOs, Private Credit and listed real assets; includes certain ETFs managed within this capability.
Current wording
(7) Private Markets includes Private Credit and Real Estate investments comprised primarily of Real Estate, CLOs, Private Credit and listed real assets, including certain ETFs managed within this capability.
Previous wording
(8) APAC Managed includes all products managed in the APAC region, including Invesco Great Wall, Japan, and greater China; includes APAC managed short term, money market, passive, and ETFs.
Current wording
(8) APAC Managed includes all products managed in the APAC region, including Invesco Great Wall, APAC managed short term, Money Market, passive, and ETFs.
Previous wording
(9) Multi-Asset/Other includes Global Asset Allocation, Invesco Quantitative Strategies, Global Targeted Returns, Solutions, Intelliflo, and UITs; includes certain ETFs managed within this capability.
Current wording
(9) Multi-Asset/Other includes Global Asset Allocation, Invesco Quantitative Strategies, Global Targeted Returns, Solutions, Intelliflo, and UITs, including certain ETFs managed within this capability.
Previous wording
(10) Global Liquidity is comprised mainly of Money Market funds and excludes APAC Money Market funds.
Current wording
(10) Global Liquidity is comprised mainly of Money Market funds excluding APAC Money Market funds.
Previous wording
Results of Operations for the three months ended March 31, 2024 compared to the three months ended March 31, 2023
Current wording
Results of Operations for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023
Previous wording
Our revenues are directly influenced by the level and composition of our AUM. Therefore, movements in global capital market levels, net business inflows (or outflows), and changes in the mix of investment products between asset classes and geographies may materially affect our revenues from period to period. See the company’s disclosures regarding the changes in AUM during the three months ended March 31, 2024 and March 31, 2023 in the “Assets Under Management” section above for additional information.
Current wording
Our revenues are directly influenced by the level and composition of our AUM. Therefore, movements in global capital market levels, net inflows (or outflows), and changes in the mix of investment products between asset classes and geographies may materially affect our revenues from period to period. See the company’s disclosures regarding the changes in AUM during the three and six months ended June 30, 2024 and June 30, 2023 in the “Assets Under Management” section above for additional information.
Previous wording
Passive AUM generally earn a lower effective fee rate than Active AUM, and therefore, changes in the mix of AUM between Active and Passive have an impact on revenues and net revenue yield. Average AUM were $1,613.0 billion for the three months ended March 31, 2024 as compared to$1,463.0 billion for the three months ended March 31, 2023. The impact of the increase in AUM on our revenues was partially offset by the shift in AUM toward lower yield passive products, such as ETFs. As a result, net revenue yield excluding performance fees and QQQ declined from 32.7 basis points (bps) for the three months ended March 31, 2023 to 30.7 bps for the three months ended March 31, 2024.
Current wording
Passive AUM generally earn a lower effective fee rate than Active AUM, and therefore, changes in the mix of AUM between Active and Passive have an impact on revenues and net revenue yield. Average AUM were $1,669.3 billion for the three months ended June 30, 2024 as compared to $1,494.9 billion for the three months ended June 30, 2023. The impact of the increase in AUM on our revenues was partially offset by the shift in AUM toward lower yield passive products, such as ETFs. As a result, net revenue yield excluding performance fees and QQQ declined to 30.4 basis points (bps) for the three months ended June 30, 2024 from 32.5 bps for the three months ended June 30, 2023.
Previous wording
Investment management fees were $1,048.7 million for three months ended March 31, 2024 as compared to $1,027.9 million for three months ended March 31, 2023, as a result of higher average AUM partially offset by the shift in AUM toward lower yield products. See discussion above on how AUM changes impact our Investment management fees.
Current wording
Investment management fees were $1,065.8 million for three months ended June 30, 2024 as compared to $1,033.5 million for three months ended June 30, 2023, as a result of higher average AUM partially offset by the shift in AUM toward lower yield products. See discussion above on how AUM changes impact our Investment management fees.
Previous wording
In the three months ended March 31, 2024, Service and distribution fees were $377.0 million as compared to $334.2 million for the three months ended March 31, 2023. The increase was primarily driven by higher distribution fees of $23.2 million and administrative fees of $19.3 million resulting from higher fund-related service fees and higher AUM to which the fees apply.
Current wording
In the six months ended June 30, 2024, Service and distribution fees were $738.6 million as compared to $676.5 million for the six months ended June 30, 2023. The increase was primarily driven by higher distribution fees of $46.9 million and administrative fees of $13.8 million resulting from higher fund-related service fees and higher AUM to which the fees apply.
Previous wording
In the three months ended March 31, 2024, Other revenues were $48.8 million as compared to $50.5 million for the three months ended March 31, 2023.
Current wording
In the three months ended June 30, 2024, Other revenues were $47.2 million as compared to $47.4 million for the three months ended June 30, 2023.
Previous wording
Net revenues from IGW were $74.7 million and average AUM was $83.7 billion for the three months ended March 31, 2024 (Net revenues were $100.5 million and average AUM was $91.0 billion for the three months ended March 31, 2023). The decrease in IGW revenues is primarily driven by the implementation of the regulatory mandated fee reductions in China, lower average AUM and the shift in AUM toward lower yield products.
Current wording
Net revenues from IGW were $86.1 million and average AUM was $87.4 billion for the three months ended June 30, 2024 (Net revenues were $97.6 million and average AUM was $89.4 billion for the three months ended June 30, 2023). The decrease in IGW revenues is primarily driven by the implementation of the regulatory mandated fee reductions in China and the shift in AUM toward lower yield products, partially offset by higher performance fees.
Previous wording
During the three months ended March 31, 2024, Operating expenses increased $53.5 million compared to the three months ended March 31, 2023.
Current wording
During the three months ended June 30, 2024, Operating expenses increased $37.5 million compared to the three months ended June 30, 2023.
Previous wording
Third-party distribution, service and advisory expenses were $504.0 million for the three months ended March 31, 2024 as compared to $455.1 million for the three months ended March 31, 2023. The increase was due to an increase in pass-through Service and distribution fees resulting from higher fund costs and higher AUM to which the fees apply.
Current wording
Third-party distribution, service and advisory expenses were $495.4 million for the three months ended June 30, 2024 as compared to $462.5 million for the three months ended June 30, 2023. The increase was due to an increase in pass-through Service and distribution costs resulting from higher AUM.
Previous wording
Employee compensation was $472.7 million for the three months ended March 31, 2024 as compared to $462.8 million for the three months ended March 31, 2023. This increase was primarily due to a $9.1 million increase in expense related to the mark-to-market on deferred compensation liabilities.
Current wording
Employee compensation was $925.0 million for the six months ended June 30, 2024 as compared to $938.5 million for the six months ended June 30, 2023. This decrease was primarily due to lower costs related to executive retirements and organizational changes of $25.8 million during the six months ended June 30, 2024, partially offset by an increase of $12.3 million in expense related to the mark-to-market on deferred compensation liabilities and staff costs.
Previous wording
Headcount at March 31, 2024 was 8,527 (March 31, 2023: 8,561).
Current wording
Headcount at June 30, 2024 was 8,536 (June 30, 2023: 8,621).
Previous wording
Property, office and technology costs were $117.6 million for the three months ended March 31, 2024 as compared to $110.5 million for the three months ended March 31, 2023. The increase was primarily driven by higher technology costs.
Current wording
Property, office and technology costs were $234.0 million for the six months ended June 30, 2024 as compared to $223.2 million for the six months ended June 30, 2023. The increase was primarily driven by higher technology costs.
Previous wording
Transaction, integration and restructuring charges were primarily comprised of compensation-related restructuring costs relating to our strategic evaluation which we completed in the first quarter of 2023. With the completion of strategic initiatives, any costs related to on-going projects are classified in the income statement based on the nature of the expense.
Current wording
Transaction, integration and restructuring charges incurred during the six months ended June 30, 2023 were primarily comprised of compensation-related restructuring costs relating to our strategic evaluation which we completed in the first quarter of 2023. With the completion of strategic initiatives, any costs related to on-going projects are classified in the income statement based on the nature of the expense.
Previous wording
Equity in earnings of unconsolidated affiliates decreased to $6.9 million for the three months ended March 31, 2024 as compared to $26.1 million for the three months ended March 31, 2023. The decrease was primarily driven by losses on our real estate investments and lower earnings from our joint venture investment in IGW as discussed above, which were partially offset by higher earnings from private equity and other investments.
Current wording
Equity in earnings of unconsolidated affiliates decreased to $20.8 million for the six months ended June 30, 2024 as compared to $45.3 million for the six months ended June 30, 2023. The decrease was primarily driven by losses on our private markets investments and lower earnings from our joint venture investment in IGW as discussed above.
Previous wording
Interest and dividend income was $12.4 million for the three months ended March 31, 2024 as compared to $8.6 million for the three months ended March 31, 2023. The increase was primarily due to higher interest income earned from Cash and cash equivalents.
Current wording
Interest and dividend income was $11.0 million for the three months ended June 30, 2024 as compared to $7.1 million for the three months ended June 30, 2023. The increase was primarily due to higher dividend income earned on our private markets investments and interest income earned from Cash and cash equivalents.
Previous wording
Interest expense was $15.9 million for the three months ended March 31, 2024 as compared to $18.0 million for the three months ended March 31, 2023 as a result of a decrease in outstanding debt.
Current wording
Interest expense was $16.3 million for the three months ended June 30, 2024 as compared to $18.4 million for the three months ended June 30, 2023 as a result of the decrease in outstanding debt.
Previous wording
Other gains/(losses), net was a gain of $35.9 million for the three months ended March 31, 2024 as compared to net gains of $27.4 million for the three months ended March 31, 2023. Included in the net gain for the first quarter of 2024 were $32.3 million of gains on investments and instruments held for our deferred compensation plans and $2.0 million of net gains related to the mark-to-market on seed capital investments. Included in the gain for the first quarter of 2023 were $22.2 million of gains on investments and instruments held for our deferred compensation plans and $5.3 million of net gains related to the mark-to-market on seed capital investments.
Current wording
Other gains/(losses), net was a net gain of $3.6 million for the three months ended June 30, 2024 as compared to a net gain of $20.9 million for the three months ended June 30, 2023. The net gains for the three months ended June 30, 2024 and June 30, 2023 included mark-to-market net gains on investments and instruments held for our deferred compensation plans and on seed capital investments.
Previous wording
For thethree months ended March 31, 2024, Other income/(expense) of CIP, net was net income of $30.5 million (three months ended March 31, 2023: net expense of $17.9 million). Interest and dividend income of CIP decreased $59.5 million to $80.1 million (three months ended March 31, 2023: $139.6 million). Interest expense of CIP decreased $47.1 million to $47.2 million (three months ended March 31, 2023: $94.3 million). Unrealized gains/(losses) of CIP were net losses of $2.4 million (three months ended March 31, 2023: net losses of $63.2 million).
Current wording
For the three months ended June 30, 2024, Other income/(expense) of CIP, net was net income of $40.9 million (three months ended June 30, 2023: net expense of $2.7 million). Interest and dividend income of CIP increased $6.5 million to $170.2 million (three months ended June 30, 2023: $163.7 million). Interest expense of CIP increased $10.0 million to $119.7 million (three months ended June 30, 2023: $109.7 million). Unrealized gains/(losses) of CIP were net losses of $9.6 million (three months ended June 30, 2023: net losses of $56.7 million).
Previous wording
The consolidation of investment products did not have an impact on Net income attributable to Invesco for the three months ended March 31, 2024 and March 31, 2023. The adjustment to net income for the Net income/(loss) attributable to noncontrolling interests in consolidated entities represents the profit or loss attributable to third-party investors. The impact of any realized or unrealized gains or losses attributable to the interests of third-parties, which is reflected in Other income/(expense) of CIP, net, is offset by this adjustment to arrive at Net income attributable to Invesco. Also, the net income or loss of CIP is taxed at the investor level, not at the product level; therefore, a tax provision is not reflected in the net impact of CIP.
Current wording
The adjustment to Net income for the Net income/(loss) attributable to noncontrolling interests in consolidated entities removes the income/(expense) of CIP which is attributable to third-party investors. Therefore, the consolidation of investment products did not have an impact on Net income attributable to Invesco for the six months ended June 30, 2024 and June 30, 2023. Also, the net income or loss of CIP is taxed at the investor level, not at the product level; therefore, a tax provision is not reflected in the net impact of CIP.
Previous wording
Our effective tax rate decreased to 24.3% for the three months ended March 31, 2024 (three months ended March 31, 2023: 29.7%). The decrease in the effective tax in the first quarter of 2024 is primarily due to the favorable impact of the increase in net income attributable to non-controlling interests in consolidated entities.
Current wording
Our effective tax rate decreased to 24.6% for the three months ended June 30, 2024 (three months ended June 30, 2023: 28.5%). The decrease in the effective tax rate in the second quarter of 2024 was primarily due to the favorable impact of the increase in net income attributable to non-controlling interests in consolidated entities.
Previous wording
(6) 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.
Current wording
(6) 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 economically hedges the exposure to market movements for these investments. Since these plans are economically hedged, 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.
Previous wording
(7) General and administrative: The adjustment removes insurance recoveries related to fund-related losses incurred in prior periods.
Current wording
(7) General and administrative: In the second quarter of 2024, the company recorded a $50.0 million contingent liability related to two regulatory matters. Due to the non-recurring nature of this item, the company removed this expense in arriving at Adjusted operating income, Adjusted operating margin and Adjusted diluted EPS as this will aid comparability of our results period to period. The adjustment in 2023 removed insurance recoveries related to fund-related losses incurred in prior periods.
Previous wording
(11) The effective tax rate on Adjusted net income attributable to Invesco Ltd. for the three months ended March 31, 2024 is 24.6% (for the three months ended March 31, 2023, it was 24.1%).
Current wording
(11) The effective tax rate on Adjusted net income attributable to Invesco Ltd. for the three months and six months ended June 30, 2024 are 22.1% and 23.2% respectively (for the three months and six months ended June 30, 2023, it was 24.7% and 24.4% respectively).
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Average AUM were $1,641.2 billion for the six months ended June 30, 2024 as compared to $1,478.9 billion for the six months ended June 30, 2023. The impact of the increase in AUM on our revenues was partially offset by the shift in AUM toward lower yield passive products, such as ETFs. As a result, net revenue yield excluding performance fees and QQQ declined to 30.5 bps for the six months ended June 30, 2024 from 32.6 bps for the six months ended June 30, 2023.
Current report — wording carried from elsewhere
Investment management fees were $2,114.5 million for six months ended June 30, 2024 as compared to $2,061.4 million for six months ended June 30, 2023, as a result of higher average AUM partially offset by the shift in AUM toward lower yield products. See discussion above on how AUM changes impact our Investment management fees.
Current report — wording carried from elsewhere
In the three months ended June 30, 2024, Service and distribution fees were $361.6 million as compared to $342.3 million for the three months ended June 30, 2023. The increase was primarily driven by higher distribution fees of $23.6 million resulting from higher AUM to which the fees apply.
Current report — wording carried from elsewhere
Net revenues from IGW were $160.8 million and average AUM was $85.6 billion for the six months ended June 30, 2024 (Net revenues were $198.1 million and average AUM was $90.2 billion for the six months ended June 30, 2023). The decrease in IGW revenues is primarily driven by the implementation of the regulatory mandated fee reductions in China, lower average AUM and the shift in AUM toward lower yield products, partially offset by higher performance fees.
Current report — wording carried from elsewhere
Third-party distribution, service and advisory expenses were $999.4 million for the six months ended June 30, 2024 as compared to $917.6 million for the six months ended June 30, 2023. The increase was due to an increase in pass-through Service and distribution costs resulting from higher fund costs and higher AUM.
Current report — wording carried from elsewhere
Equity in earnings of unconsolidated affiliates decreased to $13.9 million for the three months ended June 30, 2024 as compared to $19.2 million for the three months ended June 30, 2023. The decrease was primarily driven by lower earnings from our joint venture investment in IGW as discussed above.
Current report — wording carried from elsewhere
Our effective tax rate decreased to 24.4% for the six months ended June 30, 2024 (six months ended June 30, 2023: 29.1%). The decrease in the effective tax in the second quarter of 2024 was primarily due to the favorable impact of the increase in net income attributable to non-controlling interests in consolidated entities.