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0000914208false001-1390800009142082023-07-252023-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
 
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 24, 2023
Invesco Ltd.
(Exact name of registrant as specified in its charter)
Bermuda 001-13908 98-0557567
(State or Other Jurisdiction of Incorporation or Organization) (Commission File Number) (I.R.S. Employer Identification No.)
1331 Spring Street, Suite 2500, Atlanta, GA 30309
(Address of Principal Executive Offices) (Zip Code)

 
(404) 892-0896
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, $.20 par value IVZ New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02 Results of Operations and Financial Condition.

On October 24, 2023, Invesco Ltd. (the “registrant”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2023. A copy of that press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this report, including the exhibit hereto, shall not be incorporated by reference into any filing of the registrant with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the registrant specifically states that the information or exhibit in this particular report is incorporated by reference).

Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits
 
 
Exhibit No. Description
99.1
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
Invesco Ltd.
By:
/s/ L. Allison Dukes
 
L. Allison Dukes
Senior Managing Director and
Chief Financial Officer
Date: October 24, 2023
 


EX-99.1 2 ivzpressrelease3q2023.htm EX-99.1 Document
Exhibit 99.1
invesco_globalxlogoxbluexp.jpg
Press Release
For immediate release 
Invesco Reports Results for the Three Months Ended September 30, 2023

Investor Relations Contacts:

Media Relations Contact:
Greg Ketron
Jennifer Church
Graham Galt
404-724-4299
404-439-3428
404-439-3070


Invesco Announces Third Quarter Diluted EPS of $0.29; Adjusted Diluted EPS(1) of $0.35
$39 million of Organizational Change Expenses Negatively Impacted
Diluted EPS and Adjusted Diluted EPS(1) by $0.07

Atlanta, October 24, 2023 -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended September 30, 2023.
■$2.6 billion of net long-term inflows for the quarter, with net long-term inflows of $11.8 billion from ETFs
■$1,487.3 billion in ending AUM, a decrease of 3.3% from the prior quarter
■15.8% operating margin; 28.2% adjusted operating margin(1)
■$39 million of organizational change expenses negatively impacted operating margin by 270 basis points and adjusted operating margin(1) by 350 basis points
■Balance sheet strength - continued to maintain debt below $1.5 billion with net debt(2) reduced to $247.6 million


Update from Andrew Schlossberg, President and CEO


" Despite the continued market volatility and uncertain geopolitical environment, we remain highly focused on client engagement, delivering investment quality, and transforming our business as we reposition for the trends that will drive the asset management industry forward.

We are pleased to have returned to positive net long-term inflows in the third quarter, a reflection of the diversified asset and geographic mix in our business. While not all asset classes will be in favor simultaneously, our multi-year investments in higher growth areas such as ETFs, Private Markets, Fixed Income, and our business in the Asia Pacific region position us well as capital returns to the markets and reallocations occur.

We are not immune to the revenue challenges faced by the industry, and it is imperative that expenses remain well managed - we have done just that in the third quarter. The work continues to better align our expense base, while we sharpen our strategic focus, and streamline our platform to achieve greater scale, consistent investment quality, and improved profitability.”



____________________________________________________________________________
(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.
(2) Net debt: Debt less Cash and cash equivalents
1

Net Flows:
Net long-term inflows were $2.6 billion for the third quarter of 2023 as compared to $2.0 billion of net long-term outflows in the second quarter.

Retail net long-term inflows were $4.3 billion while institutional net long-term outflows were $1.7 billion. Net long-term flows by asset class include net long-term inflows of $7.4 billion from equity products which were partially offset by net long-term outflows of $1.3 billion from fixed income products, $1.1 billion from balanced products and $2.4 billion from alternative products. On a geographic basis, the Asia Pacific and EMEA regions achieved net long-term inflows of $2.8 billion and $1.0 billion, respectively, while the Americas region experienced net long-term outflows of $1.2 billion.

Net market losses and foreign exchange rate movements decreased AUM by $34.2 billion and $6.5 billion, respectively, in the third quarter. We had outflows of $16.1 billion from money market funds and inflows of $3.6 billion from non-management fee earning products during the quarter. Ending AUM decreased 3.3% and average AUM increased 2.3% in the third quarter as compared to the second quarter.
Summary of net flows (in billions) Q3-23 Q2-23 Q3-22
Active $ (10.9) $ (8.4) $ (7.3)
Passive 13.5  6.4  (0.4)
Net long-term flows 2.6  (2.0) (7.7)
Non-management fee earning AUM 3.6  1.1  1.9 
Money market (16.1) 15.4  10.0 
Total net flows $ (9.9) $ 14.5  $ 4.2 
Annualized long-term organic growth rate (1)
0.9  % (0.7) % (2.9) %
(1) Annualized long-term organic growth rate is calculated using net long-term flows (annualized) divided by average long-term AUM for the period. Long-term AUM excludes money market and non-management fee earning AUM.

Third Quarter Highlights:
Financial Results Q3-23 Q2-23 Q3-23 vs. Q2-23 Q3-22 Q3-23 vs. Q3-22
U.S. GAAP Financial Measures
Operating revenues $1,442.0  m $1,442.8  m (0.1) % $1,445.7  m (0.3) %
Operating income $227.7  m $203.8  m 11.7  % $350.2  m (35.0) %
Operating margin 15.8  % 14.1  % 24.2  %
Net income attributable to Invesco Ltd. $131.4  m $132.2  m (0.6) % $177.4  m (25.9) %
Diluted EPS $0.29  $0.29  —  % $0.39  (25.6) %
Adjusted Financial Measures (1)
Net revenues $1,098.2  m $1,090.7  m 0.7  % $1,110.6  m (1.1) %
Adjusted operating income $309.2  m $302.0  m 2.4  % $369.4  m (16.3) %
Adjusted operating margin 28.2  % 27.7  % 33.3  %
Adjusted net income attributable to Invesco Ltd. $159.2  m $144.4  m 10.2  % $155.8  m 2.2  %
Adjusted diluted EPS $0.35  $0.31  12.9  % $0.34  2.9  %
Assets Under Management
Ending AUM $1,487.3  bn $1,538.2  bn (3.3) % $1,323.3  bn 12.4  %
Average AUM $1,528.7  bn $1,494.9  bn 2.3  % $1,416.2  bn 7.9  %
Headcount 8,603 8,621 (0.2) % 8,621 (0.2) %
(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.
2


U.S. GAAP Operating Results:

Third Quarter 2023 compared to Second Quarter 2023

Operating revenues and expenses: Operating revenues decreased $0.8 million as compared to the second quarter. Investment management fees increased $7.8 million, as a result of higher average AUM and an additional day in the quarter partially offset by shifts in the asset mix to lower yield products. Service and distribution fees increased $11.2 million due to higher AUM to which these fees apply. Performance fees were $2.0 million for the quarter, a decrease of $17.6 million from the previous quarter.

Operating expenses decreased $24.7 million in the third quarter of 2023 as compared to the second quarter. Third-party distribution, service and advisory costs decreased $14.3 million. Employee compensation expense increased $2.8 million due to higher costs related to organizational changes of $12 million and higher variable compensation costs which were partially offset by a decline in the fair value of deferred compensation liabilities. Marketing expenses decreased $5.3 million primarily due to lower advertising costs. Property, office and technology costs decreased $1.7 million. General and administrative expenses decreased $4.4 million.

Non-operating income and expenses: Equity in earnings of unconsolidated affiliates was $16.9 million, earned primarily from our China joint venture. Other gains and losses was a net loss of $23.3 million, driven by market value changes on deferred compensation and seed capital investments. Other income/(expense) of CIP was a gain of $15.2 million, primarily driven by gains on the underlying investments held by the funds.

The effective tax rate was 26.7% in the third quarter as compared to 28.5% in the second quarter. The rate decrease in the third quarter is primarily due to the favorable impact of a change in the mix of income across tax jurisdictions.

Diluted earnings per common share: Diluted earnings per common share was $0.29 for the third quarter of 2023.

Third Quarter 2023 compared to Third Quarter 2022

Operating revenues and expenses: Operating revenues decreased $3.7 million as compared to the third quarter of 2022. Investment management fees decreased $16.0 million and service and distribution fees increased $13.3 million. Performance fees were $2.0 million, a decrease of $1.0 million from the third quarter of 2022. Other revenues were flat as compared to the third quarter of 2022.

Operating expenses increased $118.8 million in the third quarter of 2023 as compared to the third quarter of 2022. Third-party distribution, service and advisory costs decreased $3.1 million consistent with lower revenues. Employee compensation expense increased $57.7 million primarily due to costs related to organizational changes of $39 million as well as higher staff and variable compensation costs. General and administrative expenses increased $68.5 million primarily due to $60.0 million of insurance recoveries received in the third quarter of 2022.

The effective tax rate was 26.7% in the third quarter of 2023 as compared to 34.0% in the third quarter of 2022. The rate decrease was primarily due to the favorable impact of the change in the mix of income across tax jurisdictions.
3



Adjusted(1) Operating Results:

Third Quarter 2023 compared to Second Quarter 2023

Net revenues and adjusted operating expenses: Net revenues in the third quarter of 2023 increased $7.5 million as compared to the second quarter. Higher service and distribution fees and lower third-party distribution, service and advisory costs were partially offset by lower investment management fees, performance fees and other revenue.

Adjusted operating expenses were flat in the third quarter as compared to the second quarter. Employee compensation expenses increased $13.8 million primarily due to higher costs related to organizational changes of $12 million and higher variable compensation costs which were partially offset by a decline in the fair value of deferred compensation liabilities.

Adjusted operating income increased $7.2 million to $309.2 million in the third quarter from $302.0 million in the second quarter. Adjusted operating margin increased to 28.2% from 27.7% for the prior quarter.

Adjusted diluted earnings per common share was $0.35 for the third quarter. The effective tax rate on adjusted net income decreased slightly to 23.6% in the third quarter from 24.7% in the second quarter.

Third Quarter 2023 compared to Third Quarter 2022

Net revenues and adjusted operating expenses: Net revenues in the third quarter of 2023 decreased $12.4 million as compared to the third quarter of 2022, resulting from shifts in the asset mix to lower yield products partially offset by changes in foreign exchange rates.

Adjusted operating expenses increased $47.8 million in the third quarter of 2023 as compared to the third quarter of 2022, primarily due to higher employee compensation expenses, including costs related to organizational changes of $39 million.

Adjusted operating income decreased $60.2 million to $309.2 million in the third quarter of 2023 from $369.4 million in the third quarter of 2022. Adjusted operating margin decreased to 28.2% from 33.3% for the third quarter of 2022.

The effective tax rate on adjusted net income was 23.6% in the third quarter of 2023 as compared to 28.7% in the third quarter of 2022. The rate decrease is primarily due to the favorable impact of the change in the mix of income across tax jurisdictions.
___________________________________________________________________________________
(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: $1,241.5 million at September 30, 2023 ($1,009.9 million as of June 30, 2023).

Debt: $1,489.1 million at September 30, 2023 ($1,488.6 million at June 30, 2023). The credit facility balance was zero as of September 30, 2023 and June 30, 2023.

Net Debt(2): $247.6 million at September 30, 2023 ($478.7 million at June 30, 2023)

Common shares outstanding (end of period): 449.6 million

Diluted common shares outstanding (end of period): 453.1 million

Dividends paid: $90.1 million (common); $59.2 million (preferred)
__________________________________________________________________________________
(2) Net debt: Debt less Cash and cash equivalents
4


Common dividends declared: The company is announcing a third quarter cash dividend of $0.20 per share to holders of common shares. The dividend is payable on December 4, 2023, to common shareholders of record at the close of business on November 10, 2023, with an ex-dividend date of November 9, 2023.

Preferred dividends declared: The company is announcing a preferred cash dividend of $14.75 per share representing the period from September 1, 2023 through November 30, 2023. The preferred dividend is payable on December 1, 2023 to preferred shareholders of record at the close of business on November 15, 2023.


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 $1.5 trillion in assets on behalf of clients worldwide as of September 30, 2023. 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 24, 2023, 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 Wednesday, November 8, 2023 at 5:00 p.m. ET by calling 1-888-293-8913 for U.S. and Canadian callers or 1-203-369-3024 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, capital expenditures, and assets under management and could differ materially from events that actually occur in the future due to known and unknown risks and other important factors, including, but not limited to, industry or market conditions, geopolitical events and pandemics or health crises and their respective potential impact on the company, acquisitions and divestitures, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. None of this information should be considered in isolation from, or as a substitute for, historical financial statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission. You may obtain these reports from the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.
5


Invesco Ltd.
U.S. GAAP Condensed Consolidated Income Statements
(Unaudited, in millions, other than per share amounts)

Q3-23 Q2-23 % Change Q3-22 % Change
Operating revenues:
Investment management fees $ 1,041.3  $ 1,033.5  0.8  % $ 1,057.3  (1.5) %
Service and distribution fees 353.5  342.3  3.3  % 340.2  3.9  %
Performance fees 2.0  19.6  (89.8) % 3.0  (33.3) %
Other 45.2  47.4  (4.6) % 45.2  —  %
Total operating revenues 1,442.0  1,442.8  (0.1) % 1,445.7  (0.3) %
Operating expenses:
Third-party distribution, service and advisory 448.2  462.5  (3.1) % 451.3  (0.7) %
Employee compensation 478.5  475.7  0.6  % 420.8  13.7  %
Marketing 23.7  29.0  (18.3) % 27.6  (14.1) %
Property, office and technology 135.4  137.1  (1.2) % 133.2  1.7  %
General and administrative 117.2  121.6  (3.6) % 48.7  140.7  %
Transaction, integration and restructuring —  —  N/A (0.6) N/A
Amortization of intangible assets 11.3  13.1  (13.7) % 14.5  (22.1) %
Total operating expenses 1,214.3  1,239.0  (2.0) % 1,095.5  10.8  %
Operating income 227.7  203.8  11.7  % 350.2  (35.0) %
Other income/(expense):
Equity in earnings of unconsolidated affiliates 16.9  19.2  (12.0) % 20.2  (16.3) %
Interest and dividend income 10.8  7.1  52.1  % 3.3  227.3  %
Interest expense (17.3) (18.4) (6.0) % (18.6) (7.0) %
Other gains and losses, net (23.3) 20.9  N/A (34.6) (32.7) %
Other income/(expense) of CIP, net 15.2  (2.7) N/A (65.4) N/A
Income before income taxes 230.0  229.9  —  % 255.1  (9.8) %
Income tax provision (61.3) (65.5) (6.4) % (86.8) (29.4) %
Net income 168.7  164.4  2.6  % 168.3  0.2  %
Net (income)/loss attributable to noncontrolling interests in consolidated entities 21.9  27.0  (18.9) % 68.3  (67.9) %
Less: Dividends declared on preferred shares (59.2) (59.2) —  % (59.2) —  %
Net income attributable to Invesco Ltd. $ 131.4  $ 132.2  (0.6) % $ 177.4  (25.9) %
Earnings per common share:
---basic $0.29  $0.29  —  % $0.39  (25.6) %
---diluted $0.29  $0.29  —  % $0.39  (25.6) %
Average common shares outstanding:
---basic 451.7  457.9  (1.4) % 457.0  (1.2) %
---diluted 453.1  458.8  (1.2) % 459.5  (1.4) %

6


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) Q3-23 Q2-23 Q3-22
Operating revenues, U.S. GAAP basis $ 1,442.0  $ 1,442.8  $ 1,445.7 
Revenue Adjustments (2)
Investment management fees (193.7) (195.4) (185.5)
Service and distribution fees (219.2) (230.9) (232.1)
Other (35.3) (36.2) (33.7)
Total Revenue Adjustments $ (448.2) $ (462.5) $ (451.3)
Invesco Great Wall (1)
90.7  97.6  104.6 
CIP (3)
13.7  12.8  11.6 
Net revenues $ 1,098.2  $ 1,090.7  $ 1,110.6 

Reconciliation of Operating income to Adjusted operating income:
(in millions) Q3-23 Q2-23 Q3-22
Operating income, U.S. GAAP basis $ 227.7  $ 203.8  $ 350.2 
Invesco Great Wall (1)
52.1  53.6  61.8 
CIP (3)
24.7  21.7  15.7 
Transaction, integration and restructuring (4)
—  —  (0.6)
Amortization of intangible assets (8)
11.3  13.1  14.5 
Compensation expense related to market valuation changes in deferred compensation plans (10)
(6.6) 9.8  (12.2)
General and administrative (7)
—  —  (60.0)
Adjusted operating income $ 309.2  $ 302.0  $ 369.4 
Operating margin (5)
15.8  % 14.1  % 24.2  %
Adjusted operating margin (6)
28.2  % 27.7  % 33.3  %
7


Reconciliation of Net income attributable to Invesco Ltd. to Adjusted net income attributable to Invesco Ltd.
(in millions) Q3-23 Q2-23 Q3-22
Net income attributable to Invesco Ltd., U.S. GAAP basis $ 131.4  $ 132.2  $ 177.4 
Adjustments (excluding tax):
Transaction, integration and restructuring (4)
—  —  (0.6)
Amortization of intangible assets (8)
11.3  13.1  14.5 
Deferred compensation plan market valuation changes and dividend income less compensation expense (10)
15.9  (6.1) 16.9 
General and administrative (7)
—  —  (60.0)
Total adjustments excluding tax $ 27.2  $ 7.0  $ (29.2)
Tax adjustment for amortization of intangible assets and goodwill (9)
4.4  3.6  3.8
Other tax effects of adjustments above (3.8) 1.6  3.8 
Adjusted net income attributable to Invesco Ltd. (11)
$ 159.2  $ 144.4  $ 155.8 
Average common shares outstanding - diluted 453.1  458.8  459.5 
Diluted EPS $0.29  $0.29  $0.39 
Adjusted diluted EPS (12)
$0.35  $0.31  $0.34 

8


Reconciliation of Operating expenses to Adjusted operating expenses:
(in millions) Q3-23 Q2-23 Q3-22
Operating expenses, U.S. GAAP basis $ 1,214.3  $ 1,239.0  $ 1,095.5 
Invesco Great Wall (1)
38.6  44.0  42.8 
Third-party distribution, service and advisory expenses (448.2) (462.5) (451.3)
CIP (3)
(11.0) (8.9) (4.1)
Transaction, integration and restructuring (4)
—  —  0.6 
Amortization of intangible assets (8)
(11.3) (13.1) (14.5)
Compensation expense related to market valuation changes in deferred compensation plans (10)
6.6  (9.8) 12.2 
General and administrative (7)
—  —  60.0 
Adjusted operating expenses $ 789.0  $ 788.7  $ 741.2 
Employee compensation, U.S. GAAP basis $ 478.5  $ 475.7  $ 420.8 
Invesco Great Wall (1)
28.8  34.2  33.7 
Compensation expense related to market valuation changes in deferred compensation plans (10)
6.6  (9.8) 12.2 
Adjusted employee compensation $ 513.9  $ 500.1  $ 466.7 
Marketing, U.S. GAAP basis $ 23.7  $ 29.0  $ 27.6 
Invesco Great Wall (1)
2.8  3.0  2.1 
Adjusted marketing $ 26.5  $ 32.0  $ 29.7 
Property, office and technology, U.S. GAAP basis $ 135.4  $ 137.1  $ 133.2 
Invesco Great Wall (1)
5.0  5.1  5.2 
Adjusted property, office and technology $ 140.4  $ 142.2  $ 138.4 
General and administrative, U.S. GAAP basis $ 117.2  $ 121.6  $ 48.7 
Invesco Great Wall (1)
2.0  1.7  1.8 
CIP (3)
(11.0) (8.9) (4.1)
Recoveries of previously disclosed losses(7)
—  —  60.0 
Adjusted general and administrative $ 108.2  $ 114.4  $ 106.4 
Transaction, integration and restructuring, U.S. GAAP basis $ —  $ —  $ (0.6)
Transaction, integration and restructuring(4)
—  —  0.6 
Adjusted transaction, integration and restructuring $ —  $ —  $ — 
Amortization of intangible assets, U.S. GAAP basis $ 11.3  $ 13.1  $ 14.5 
Amortization of intangible assets
(11.3) (13.1) (14.5)
Adjusted amortization of intangibles $ —  $ —  $ — 















9




(1) Invesco Great Wall: The company reflects 100% of Invesco Great Wall in its net revenues and adjusted operating income (and by calculation, adjusted operating margin). 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 the 51% noncontrolling interests.
(2) Revenue adjustments: The company calculates net revenues by reducing operating revenues to exclude fees that are passed through to external parties who perform functions on behalf of, and distribute, the company’s managed funds. The net revenue presentation assists in identifying the revenue contribution generated by the company, removing distortions caused by the differing distribution channel fees and allowing for a fair comparison with 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) CIP: The company believes that the CIP may impact a reader’s analysis of our underlying results of operations and could result in investor confusion or the production of information about the company by analysts or external credit rating agencies that is not reflective of the underlying results of operations and financial condition of the company. Accordingly, the company believes that it is appropriate to adjust operating revenues and operating income for the impact of CIP in calculating the respective net revenues and adjusted operating income (and by calculation, adjusted operating margin).
(4)    Transaction, integration and restructuring: The company believes it is useful to adjust for the transaction, integration and restructuring charges in arriving at adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted EPS, as this will aid comparability of our results period to period, and aid comparability with peer companies that may not have similar acquisition and restructuring related charges.
(5) Operating margin is equal to operating income divided by operating revenues.
(6) Adjusted operating margin is equal to adjusted operating income divided by net revenues.
(7) General and administrative: The adjustments remove insurance recoveries related to fund-related losses incurred in prior periods.
(8)    Amortization of intangible assets: The company removes amortization expense related to acquired assets in arriving at adjusted operating income, adjusted operating margin and adjusted diluted EPS, as this will aid comparability of our results period to period, and aid comparability with peer companies that may not have similar acquisition-related charges.
(9) Tax adjustment for amortization of intangible assets and goodwill: The company reflects the tax benefit realized on the tax amortization of goodwill and intangibles in adjusted net income. The company believes it is useful to include this tax benefit in arriving at the adjusted diluted EPS measure.
(10) Market movement on deferred compensation plan liabilities: Certain deferred compensation plan awards involve a return to the employee linked to the appreciation (depreciation) of specified investments. The company hedges economically the exposure to market movements for these investments. Since these plans are hedged economically, the company believes it is useful to reflect the offset ultimately achieved from hedging the market exposure in the calculation of adjusted operating income (and by calculation, adjusted operating margin) and adjusted net income (and by calculation, adjusted diluted EPS) to produce results that will be more comparable period to period.
(11) The effective tax rate on adjusted net income attributable to Invesco Ltd. is 23.6% (second quarter 2023: 24.7%; third quarter 2022: 28.7%).
(12) Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted common shares outstanding.



10


Invesco Ltd.
Assets Under Management
Three Months Ended Nine Months Ended
(in billions) September 30, 2023 June 30, 2023 % Change September 30, 2022 September 30, 2023 September 30, 2022 % Change
Beginning Assets $1,538.2  $1,483.0  3.7  % $1,390.4  $1,409.2  $1,610.9  (12.5) %
Long-term inflows 67.4  71.3  (5.5) % 68.7  218.1  256.4  (14.9) %
Long-term outflows (64.8) (73.3) (11.6) % (76.4) (214.6) (253.7) (15.4) %
Net long-term flows 2.6  (2.0) N/A (7.7) 3.5  2.7  29.6  %
Net flows in non-management fee earning AUM (a)
3.6  1.1  227.3  % 1.9  3.1  (1.1) N/A
Net flows in money market funds (16.1) 15.4  N/A 10.0  7.0  26.3  (73.4) %
Total net flows (9.9) 14.5  N/A 4.2  13.6  27.9  (51.3) %
Reinvested distributions 1.1  1.0  10.0  % 0.9  3.1  3.5  (11.4) %
Market gains and losses (34.2) 46.5  N/A (55.1) 74.2  (278.3) N/A
Dispositions (1.4) —  N/A —  (1.4) —  N/A
Foreign currency translation (6.5) (6.8) (4.4) % (17.1) (11.4) (40.7) (72.0) %
Ending Assets $1,487.3  $1,538.2  (3.3) % $1,323.3  $1,487.3  $1,323.3  12.4  %
Ending long-term AUM $1,070.5  $1,102.4  (2.9) % $994.3  $1,070.5  $994.3  7.7  %
Average long-term AUM $1,101.0  $1,085.9  1.4  % $1,071.9  $1,090.0  $1,125.6  (3.2) %
Average AUM $1,528.7  $1,494.9  2.3  % $1,416.2  $1,495.5  $1,472.8  1.5  %
Average QQQ AUM $203.4  $180.9  12.4  % $165.9  $180.1  $174.6  3.2  %

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By investment approach: (in billions)
Active(d)
Passive(d)
Active(d)
Passive(d)
Beginning Assets $1,016.6  $521.6  $976.2  $433.0 
Long-term inflows 36.0  31.4  123.0  95.1 
Long-term outflows (46.9) (17.9) (144.8) (69.8)
Net long-term flows (10.9) 13.5  (21.8) 25.3 
Net flows in non-management fee earning AUM (a)
—  3.6  —  3.1 
Net flows in money market funds (16.1) —  7.0  — 
Total net flows (27.0) 17.1  (14.8) 28.4 
Reinvested distributions 1.1  —  3.1  — 
Market gains and losses (17.7) (16.5) $ 13.1  $ 61.1 
Dispositions (1.4) —  $ (1.4) $ — 
Foreign currency translation (5.5) (1.0) $ (10.1) $ (1.3)
Ending Assets $966.1  $521.2  $966.1  $521.2 
Average AUM $994.5  $534.2  $1,000.9  $494.7 

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By channel: (in billions) Retail Institutional Retail Institutional
Beginning Assets $968.5  $569.7  $872.3  $536.9 
Long-term inflows 49.9  17.5  159.1  59.0 
Long-term outflows (45.6) (19.2) (158.3) (56.3)
Net long-term flows 4.3  (1.7) 0.8  2.7 
Net flows in non-management fee earning AUM (a)
3.3  0.3  1.7  1.4 
Net flows in money market funds —  (16.1) 1.1  5.9 
Total net flows 7.6  (17.5) 3.6  10.0 
Reinvested distributions 1.0  0.1  2.8  0.3 
Market gains and losses (32.2) (2.0) 67.1  7.1 
Dispositions —  (1.4) —  (1.4)
Foreign currency translation (2.5) (4.0) (3.4) (8.0)
Ending Assets $942.4  $544.9  $942.4  $544.9 
See the footnotes immediately following these tables.
11


Invesco Ltd.
Assets Under Management (continued)

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By client domicile: (in billions) Americas Asia Pacific EMEA Americas Asia Pacific EMEA
Beginning Assets $1,112.8  $221.9  $203.5  $999.4  $223.5  $186.3 
Long-term inflows 32.7  18.3  16.4  110.7  56.5  50.9 
Long-term outflows (33.9) (15.5) (15.4) (114.2) (52.2) (48.2)
Net long-term flows (1.2) 2.8  1.0  (3.5) 4.3  2.7 
Net flows in non-management fee earning AUM (a)
5.0  0.6  (2.0) 5.9  (0.4) (2.4)
Net flows in money market funds (15.1) (1.0) —  5.8  0.9  0.3 
Total net flows (11.3) 2.4  (1.0) 8.2  4.8  0.6 
Reinvested distributions 1.0  —  0.1  3.0  —  0.1 
Market gains and losses (31.3) (0.8) (2.1) 60.0  4.4  9.8 
Dispositions (1.4) —  —  (1.4) —  — 
Foreign currency translation (0.6) (3.0) (2.9) —  (12.2) 0.8 
Ending Assets $1,069.2  $220.5  $197.6  $1,069.2  $220.5  $197.6 

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By asset class: (in billions) Equity Fixed Income Balanced
Money Market (c)
Alternatives(b)
Equity Fixed Income Balanced
Money Market (c)
Alternatives(b)
Beginning Assets $747.1  $319.0  $64.2  $225.7  $182.2  $637.0  $313.7  $67.1  $203.5  $187.9 
Long-term inflows 34.6  23.2  2.5  —  7.1  110.2  77.1  9.7  —  21.1 
Long-term outflows (27.2) (24.5) (3.6) —  (9.5) (96.1) (74.9) (13.7) —  (29.9)
Net long-term flows 7.4  (1.3) (1.1) —  (2.4) 14.1  2.2  (4.0) —  (8.8)
Net flows in non-management fee earning AUM (a)
3.4  0.2  —  —  —  1.9  1.2  —  —  — 
Net flows in money market funds —  —  —  (16.1) —  —  —  —  7.0  — 
Total net flows 10.8  (1.1) (1.1) (16.1) (2.4) 16.0  3.4  (4.0) 7.0  (8.8)
Reinvested distributions 0.2  0.5  0.1  0.1  0.2  0.6  1.3  0.4  0.2  0.6 
Market gains and losses (28.4) (3.9) (1.5) 0.4  (0.8) 75.7  (0.2) (0.9) 0.5  (0.9)
Dispositions —  —  —  —  (1.4) —  —  —  —  (1.4)
Foreign currency translation (3.0) (1.9) (0.5) (0.3) (0.8) (2.6) (5.6) (1.4) (1.4) (0.4)
Ending Assets $726.7  $312.6  $61.2  $209.8  $177.0  $726.7  $312.6  $61.2  $209.8  $177.0 
Average AUM $754.3  $316.1  $63.6  $214.3  $180.4  $711.7  $318.4  $66.0  $215.3  $184.1 

See the footnotes immediately following these tables.

12



Invesco Ltd.
Assets Under Management - Active (d)
Three Months Ended Nine Months Ended
(in billions) September 30, 2023 June 30, 2023 % Change September 30, 2022 September 30, 2023 September 30, 2022 % Change
Beginning Assets $ 1,016.6  $ 1,005.2  1.1  % $ 957.9  $ 976.2  $ 1,082.5  (9.8) %
Long-term inflows 36.0 40.1 (10.2) % 44.5 123.0 155.0 (20.6) %
Long-term outflows (46.9) (48.5) (3.3) % (51.8) (144.8) (172.8) (16.2) %
Net long-term flows (10.9) (8.4) 29.8  % (7.3) (21.8) (17.8) 22.5  %
Net flows in money market funds (16.1) 15.4 N/A 10.0 7.0 26.3 (73.4) %
Total net flows (27.0) 7.0 N/A 2.7 (14.8) 8.5 N/A
Reinvested distributions 1.1  1.0  10.0  % 0.9  3.1 3.5 (11.4) %
Market gains and losses (17.7) 9.9  N/A (32.0) 13.1 (143.6) N/A
Dispositions (1.4) —  N/A —  (1.4) —  N/A
Foreign currency translation (5.5) (6.5) (15.4) % (15.4) (10.1) (36.8) (72.6) %
Ending Assets $ 966.1  $ 1,016.6  (5.0) % $ 914.1  $ 966.1  $ 914.1  5.7  %
Average long-term AUM $ 780.3  $ 788.2  (1.0) % $ 793.0  $ 785.6  $ 839.4  (6.4) %
Average AUM $ 994.5  $ 1,006.1  (1.2) % $ 961.6  $ 1,000.9  $ 1,000.3  0.1  %
    

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By channel: (in billions) Retail Institutional Retail Institutional
Beginning Assets $498.3  $518.3  $482.1  $494.1 
Long-term inflows 22.1  13.9  73.4  49.6 
Long-term outflows (29.5) (17.4) (93.4) (51.4)
Net long-term flows (7.4) (3.5) (20.0) (1.8)
Net flows in money market funds —  (16.1) 1.1  5.9 
Total net flows (7.4) (19.6) (18.9) 4.1 
Reinvested distributions 1.0  0.1  2.8  0.3 
Market gains and losses (15.8) (1.9) 11.1  2.0 
Dispositions —  (1.4) —  (1.4)
Foreign currency translation (2.1) (3.4) (3.1) (7.0)
Ending Assets $474.0  $492.1  $474.0  $492.1 

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By client domicile: (in billions) Americas Asia Pacific EMEA Americas Asia Pacific EMEA
Beginning Assets $706.6  $187.1  $122.9  $670.8  $191.0  $114.4 
Long-term inflows 17.0  13.7  5.3  56.4  46.5  20.1 
Long-term outflows (25.9) (12.6) (8.4) (79.8) (43.4) (21.6)
Net long-term flows (8.9) 1.1  (3.1) (23.4) 3.1  (1.5)
Net flows in money market funds (15.1) (1.0) —  5.8  0.9  0.3 
Total net flows (24.0) 0.1  (3.1) (17.6) 4.0  (1.2)
Reinvested distributions 1.0  —  0.1  3.0  —  0.1 
Market gains and losses (13.9) (2.3) (1.5) 12.9  (1.6) 1.8 
Dispositions (1.4) —  —  (1.4) —  — 
Foreign currency translation (0.6) (2.4) (2.5) —  (10.9) 0.8 
Ending Assets $667.7  $182.5  $115.9  $667.7  $182.5  $115.9 
    
See the footnotes immediately following these tables.



13




Invesco Ltd.
Assets Under Management - Active (d) (continued)
Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By asset class: (in billions) Equity Fixed Income Balanced
Money Market(c)
Alternatives(b)
Equity Fixed Income Balanced
Money Market(c)
Alternatives(b)
Beginning Assets $300.6  $274.0  $63.4  $225.7  $152.9  $277.5  $273.0  $66.3  $203.5  $155.9 
Long-term inflows 10.2  19.4  2.5  —  3.9  37.6  63.2  9.7  —  12.5 
Long-term outflows (14.9) (21.4) (3.6) —  (7.0) (47.2) (64.9) (13.7) —  (19.0)
Net long-term flows (4.7) (2.0) (1.1) —  (3.1) (9.6) (1.7) (4.0) —  (6.5)
Net flows in money market funds 0.1  (0.1) —  (16.1) —  —  —  —  7.0  — 
Total net flows (4.6) (2.1) (1.1) (16.1) (3.1) (9.6) (1.7) (4.0) 7.0  (6.5)
Reinvested distributions 0.2  0.5  0.1  0.1  0.2  0.6  1.3  0.4  0.2  0.6 
Market gains and losses (11.8) (4.1) (1.5) 0.4  (0.7) 15.2  (0.5) (0.9) 0.5  (1.2)
Dispositions —  —  —  —  (1.4) —  —  —  —  (1.4)
Foreign currency translation (2.3) (1.7) (0.5) (0.3) (0.7) (1.6) (5.5) (1.4) (1.4) (0.2)
Ending Assets $282.1  $266.6  $60.4  $209.8  $147.2  $282.1  $266.6  $60.4  $209.8  $147.2 
Average AUM $296.9  $269.9  $62.8  $214.3  $150.6  $293.7  $273.4  $65.2  $215.3  $153.3 
See the footnotes immediately following these tables.







































14



Invesco Ltd.
Assets Under Management - Passive (d)
Three Months Ended Nine Months Ended
(in billions) September 30, 2023 June 30, 2023 % Change September 30, 2022 September 30, 2023 September 30, 2022 % Change
Beginning Assets $521.6  $477.8  9.2  % $432.5  $433.0  $528.4  (18.1) %
Long-term inflows 31.4  31.2  0.6  % 24.2  95.1  101.4  (6.2) %
Long-term outflows (17.9) (24.8) (27.8) % (24.6) (69.8) (80.9) (13.7) %
Net long-term flows 13.5  6.4  110.9  % (0.4) 25.3  20.5  23.4  %
Net flows in non-management fee earning AUM (a)
3.6  1.1  227.3  % 1.9  3.1  (1.1) N/A
Total net flows 17.1  7.5  128.0  % 1.5  28.4  19.4  46.4  %
Market gains and losses (16.5) 36.6  N/A (23.1) 61.1  (134.7) N/A
Foreign currency translation (1.0) (0.3) 233.3  (1.7) (1.3) (3.9) (66.7) %
Ending Assets $521.2  $521.6  (0.1) % $409.2  $521.2  $409.2  27.4  %
Average long-term AUM $320.7  $297.7  7.7  % $278.9  $304.4  $286.2  6.4  %
Average AUM $534.2  $488.8  9.3  % $454.6  $494.7  $472.5  4.7  %
Average QQQ AUM $203.4  $180.9  12.4  % $165.9  $180.1  $174.6  3.2  %

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By channel: (in billions) Retail Institutional Retail Institutional
Beginning Assets $470.2  $51.4  $390.2  $42.8 
Long-term inflows 27.8  3.6  85.7  9.4 
Long-term outflows (16.1) (1.8) (64.9) (4.9)
Net long-term flows 11.7  1.8  20.8  4.5 
Net flows in non-management fee earning AUM (a)
3.3  0.3  1.7  1.4 
Total net flows 15.0  2.1  22.5  5.9 
Market gains and losses (16.4) (0.1) 56.0  5.1 
Foreign currency translation (0.4) (0.6) (0.3) (1.0)
Ending Assets $468.4  $52.8  $468.4  $52.8 

Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By client domicile: (in billions) Americas Asia Pacific EMEA Americas Asia Pacific EMEA
Beginning Assets $406.2  $34.8  $80.6  $328.6  $32.5  $71.9 
Long-term inflows 15.7  4.6  11.1  54.3  10.0  30.8 
Long-term outflows (8.0) (2.9) (7.0) (34.4) (8.8) (26.6)
Net long-term flows 7.7  1.7  4.1  19.9  1.2  4.2 
Net flows in non-management fee earning AUM (a)
5.0  0.6  (2.0) 5.9  (0.4) (2.4)
Total net flows 12.7  2.3  2.1  25.8  0.8  1.8 
Market gains and losses (17.4) 1.5  (0.6) 47.1  6.0  8.0 
Foreign currency translation —  (0.6) (0.4) —  (1.3) — 
Ending Assets $401.5  $38.0  $81.7  $401.5  $38.0  $81.7 
    
See the footnotes immediately following these tables.









15


Invesco Ltd.
Assets Under Management - Passive (d) (continued)
Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
By asset class: (in billions) Equity Fixed Income Balanced
Money Market(c)
Alternatives(b)
Equity Fixed Income Balanced
Money Market(c)
Alternatives(b)
Beginning Assets $446.5  $45.0  $0.8  $—  $29.3  $359.5  $40.7  $0.8  $—  $32.0 
Long-term inflows 24.4  3.8  —  —  3.2  72.6  13.9  —  —  8.6 
Long-term outflows (12.3) (3.1) —  —  (2.5) (48.9) (10.0) —  —  (10.9)
Net long-term flows 12.1  0.7  —  —  0.7  23.7  3.9  —  —  (2.3)
Net flows in non-management fee earning AUM (a)
3.3  0.3  —  —  —  1.9  1.2  —  —  — 
Total net flows 15.4  1.0  —  —  0.7  25.6  5.1  —  —  (2.3)
Market gains and losses (16.6) 0.2  —  —  (0.1) 60.5  0.3  —  —  0.3 
Foreign currency translation (0.7) (0.2) —  —  (0.1) (1.0) (0.1) —  —  (0.2)
Ending Assets $444.6  $46.0  $0.8  $—  $29.8  $444.6  $46.0  $0.8  $—  $29.8 
Average AUM $457.4  $46.2  $0.8  $—  $29.8  $418.1  $45.0  $0.8  $—  $30.8 


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, 2023 includes $209.8 billion in money market AUM and $207.1 billion in non-management fee earning AUM (June 30, 2023: $225.7 billion and $210.1 billion, respectively; September 30, 2022: $172.1 billion and $157.0 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.
    

16


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%) 31  % 42  % 21  % 16  % 21  % —  % 16  % 12  %
U.S. Growth (6%) 37  % 12  % 25  % 42  % 37  % —  % 12  % 12  %
U.S. Value (6%) 70  % 62  % 100  % 62  % 62  % 62  % 49  % 49  %
Sector (1%) 45  % % % 24  % 45  % 43  % 22  % 54  %
U.K. (1%) 95  % 59  % 40  % 47  % 63  % 100  % 46  % 41  %
Canadian (<1%) 88  % 100  % 88  % 45  % 100  % 100  % 67  % —  %
Asian (4%) 45  % 58  % 76  % 91  % 63  % 36  % 36  % 81  %
Continental European (1%) 73  % 74  % 25  % 74  % 78  % 81  % 40  % 70  %
Global (5%) 87  % 33  % 36  % 78  % 85  % 79  % % 15  %
Global Ex U.S. and Emerging Markets (7%) 77  % 18  % 35  % 99  % 87  % 13  % 16  % 11  %
Fixed Income (1)
Money Market (29%) 97  % 91  % 97  % 100  % 86  % 87  % 87  % 99  %
U.S. Fixed Income (10%) 74  % 76  % 84  % 97  % 62  % 57  % 63  % 93  %
Global Fixed Income (6%) 75  % 80  % 93  % 93  % 69  % 68  % 69  % 93  %
Stable Value (6%) —  % 100  % 100  % 100  % 97  % 97  % 97  % 100  %
Other (1)
Alternatives (5%) 76  % 76  % 70  % 75  % 41  % 61  % 55  % 56  %
Balanced (7%) 47  % 62  % 66  % 60  % 51  % 77  % 90  % 94  %


Note: Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts (UITs), fund of funds with component funds managed by Invesco, stable value building block funds and collateralized debt obligations. 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, 2023. AUM measured in the one, three, five and ten year quartile rankings represents 44%, 44%, 44% and 40% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, five and ten year basis represents 57%, 57%, 54% and 49% 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 ($650.3 billion).

17


Invesco Ltd.
Supplemental Information (1)


For the three months ended
September 30, 2023
For the three months ended
September 30, 2022
Cash flow information
(in millions)
U.S. GAAP Impact of CIP As Adjusted U.S. GAAP Impact of CIP As Adjusted
Invesco and CIP cash and cash equivalents, beginning of period $ 1,287.1  $ (277.2) $ 1,009.9  $ 1,132.8  $ (196.0) $ 936.8 
Cash flows from operating activities 354.1  103.1  457.2  492.0  45.5  537.5 
Cash flows from investing activities 66.5  (113.4) (46.9) (82.2) 15.3  (66.9)
Cash flows from financing activities (125.5) (27.7) (153.2) (265.8) (69.4) (335.2)
Increase/(decrease) in cash and cash equivalents 295.1  (38.0) 257.1  144.0  (8.6) 135.4 
Foreign exchange movement on cash and cash equivalents (27.1) 1.6  (25.5) (50.8) 2.2  (48.6)
Cash and cash equivalents, end of the period $ 1,555.1  $ (313.6) $ 1,241.5  $ 1,226.0  $ (202.4) $ 1,023.6 


For the nine months ended
September 30, 2023
For the nine months ended
September 30, 2022
Cash flow information
(in millions)
U.S. GAAP Impact of CIP As Adjusted U.S. GAAP Impact of CIP As Adjusted
Invesco and CIP cash and cash equivalents, beginning of period $ 1,434.1  $ (199.4) $ 1,234.7  $ 2,147.1  $ (250.7) $ 1,896.4 
Cash flows from operating activities 586.5  227.8  814.3  239.7  452.7  692.4 
Cash flows from investing activities 17.3  (189.1) (171.8) (238.0) 53.6  (184.4)
Cash flows from financing activities (475.1) (153.3) (628.4) (798.8) (468.0) (1,266.8)
Increase/(decrease) in cash and cash equivalents 128.7  (114.6) 14.1  (797.1) 38.3  (758.8)
Foreign exchange movement on cash and cash equivalents (7.7) 0.4  (7.3) (124.0) 10.0  (114.0)
Cash and cash equivalents, end of the period $ 1,555.1  $ (313.6) $ 1,241.5  $ 1,226.0  $ (202.4) $ 1,023.6 

(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.

18


Invesco Ltd.
Supplemental Information(1)
As of September 30, 2023 As of December 31, 2022
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 $ 1,241.5  $ —  $ —  $ 1,241.5  $ 1,234.7  —  —  $ 1,234.7 
Investments 932.6  528.8  —  1,461.4  996.6  376.8  —  1,373.4 
Investments and other assets of CIP 8,870.8  (8,870.8) —  —  8,735.1  (8,735.1) —  — 
Cash and cash equivalents of CIP 313.6  (313.6) —  —  199.4  (199.4) —  — 
Assets held for policyholders 408.4  —  (408.4) —  668.7  —  (668.7) — 
Goodwill and intangible assets, net 15,668.9  —  —  15,668.9  15,698.9  —  —  15,698.9 
Other assets (2)
1,995.7  14.8  —  2,010.5  2,223.4  9.8  —  2,233.2 
Total assets 29,431.5  (8,640.8) (408.4) 20,382.3  29,756.8  (8,547.9) (668.7) 20,540.2 
LIABILITIES
Debt of CIP 6,981.5  (6,981.5) —  —  6,590.4  (6,590.4) —  — 
Other liabilities of CIP 322.3  (322.3) —  —  329.6  (329.6) —  — 
Policyholder payables 408.4  —  (408.4) —  668.7  —  (668.7) — 
Debt 1,489.1  —  —  1,489.1  1,487.6  —  —  1,487.6 
Other liabilities (3)
3,638.5  —  —  3,638.5  3,838.3  —  —  3,838.3 
Total liabilities 12,839.8  (7,303.8) (408.4) 5,127.6  12,914.6  (6,920.0) (668.7) 5,325.9 
EQUITY
Total equity attributable to Invesco Ltd. 15,253.9  0.1  —  15,254.0  15,213.6  0.1  —  15,213.7 
Noncontrolling interests (4)
1,337.8  (1,337.1) —  0.7  1,628.6  (1,628.0) —  0.6 
Total equity 16,591.7  (1,337.0) —  15,254.7  16,842.2  (1,627.9) —  15,214.3 
Total liabilities and equity $ 29,431.5  $ (8,640.8) $ (408.4) $ 20,382.3  $ 29,756.8  $ (8,547.9) $ (668.7) $ 20,540.2 

(1) These tables include non-GAAP presentations. Cash held by CIP is not available for use by Invesco. Additionally, there is no recourse to Invesco for CIP debt. The cash flows of CIP do not form part of the company’s cash flow management processes, nor do they form part of the company’s significant liquidity evaluations and decisions. Policyholder assets and liabilities are equal and offsetting and have no impact on Invesco’s shareholder’s equity. 

(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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