Invesco Reports Results for the Three Months Ended June 30, 2015

Continued strong, long-term investment performance

Long-term net inflows of $5.9 billion

Adjusted operating margin of 41.7%

Adjusted diluted EPS of $0.63

Jul 30, 2015, 07:30 ET from Invesco Ltd.

ATLANTA, July 30, 2015 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended June 30, 2015.

"In spite of a volatile global market environment, Invesco continues to provide strong, long-term investment performance to our clients," said Martin L. Flanagan, president and CEO.  "The solid investment performance across a broad range of capabilities provided positive outcomes to our clients and helped drive strong long-term net inflows of $5.9 billion during the quarter."

 

Q2-15

Q1-15

Q2-15 vs.

Q1-15

Q2-14

Q2-15 vs. Q2-14

Adjusted Financial Measures(1)

Net revenues

$936.6 m

$917.5 m

2.1

%

$901.0 m

4.0

%

Operating income

$390.2 m

$374.4 m

4.2

%

$377.0 m

3.5

%

Operating margin

41.7

%

40.8

%

41.8

%

Net income attributable to Invesco Ltd.

$271.4 m

$272.1 m

(0.3)

%

$282.4 m

(3.9)

%

Diluted EPS

$0.63

$0.63

%

$0.65

(3.1)

%

U.S. GAAP Financial Measures(2)

Operating revenues

$1,318.1 m

$1,291.6 m

2.1

%

$1,289.9 m

2.2

%

Operating income

$364.0 m

$338.1 m

7.7

%

$354.8 m

2.6

%

Operating margin

27.6

%

26.2

%

27.5

%

Net income attributable to Invesco Ltd.

$257.3 m

$259.6 m

(0.9)

%

$274.5 m

(6.3)

%

Diluted EPS

$0.60

$0.60

%

$0.63

(4.8)

%

Assets Under Management

Ending AUM

$803.6 bn

$798.3 bn

0.7

%

$802.4 bn

0.1

%

Average AUM

$810.9 bn

$795.4 bn

1.9

%

$790.1 bn

2.6

%

(1)   The adjusted financial measures are all non-GAAP financial measures. See the information on pages 10 through 12 for a reconciliation to their most directly comparable U.S. GAAP measures and the notes beginning on page 19 for other important disclosures.

(2)   U.S. GAAP measures include the results of discontinued operations in 2014.

Assets Under Management

Total assets under management (AUM) at June 30, 2015, were $803.6 billion (March 31, 2015: $798.3 billion), an increase of $5.3 billion during the second quarter. Total net inflows were $3.0 billion for the second quarter, as detailed below:

Summary of net flows (in billions)

Q2-15

Q1-15

Q2-14

Active

$5.4

$6.8

($8.0)

Passive

0.5

3.5

1.1

Long-term net flows

5.9

10.3

(6.9)

Invesco PowerShares QQQ

(0.3)

(2.6)

(3.0)

Money market

(2.6)

(6.0)

1.1

Total net flows

$3.0

$1.7

($8.8)

 

Net market losses led to a $6.2 billion decrease in AUM during the second quarter, compared to a $18.2 billion increase in the first quarter 2015. Foreign exchange rate movements led to a $8.5 billion increase in AUM during the second quarter, compared to a $13.3 billion decrease in the first quarter 2015. Average AUM during the second quarter were $810.9 billion, compared to $795.4 billion for the first quarter 2015, an increase of 1.9%. Further analysis is included in the supplementary schedules to this release.

Earnings Summary

The company is presenting both U.S. GAAP earnings information and non-GAAP earnings information in this release. The company believes that the additional disclosure of non-GAAP earnings information provides further transparency into the business on an ongoing operations basis and allows more appropriate comparisons with our industry peers. Management uses these non-GAAP performance measures to evaluate the business, and they are consistent with internal management reporting. These measures are described more fully in the company's Forms 10-K. Non-GAAP measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies.

Non-GAAP Earnings

This section discusses the company's second quarter 2015 non-GAAP financial information, as compared to the first quarter 2015. The phrase "as adjusted" is used in the following earnings discussion to identify non-GAAP information, together with the non-GAAP financial measures of net revenues, adjusted operating margin, adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS. The most directly comparable U.S. GAAP items are reconciled to these non-GAAP items on pages 10 through 12 of this release.

Net revenues increased by $19.1 million (2.1%) to $936.6 million in the second quarter, from $917.5 million in the first quarter 2015. The change was due to increased investment management fees partially offset by reduced performance fees. Foreign exchange rate changes increased second quarter net revenues by $5.1 million compared to the first quarter 2015.

Investment management fees, as adjusted, increased $59.7 million (5.8%) to $1,083.3 million in the second quarter, from $1,023.6 million in the first quarter 2015. The increase reflects the higher average AUM, the additional day in the second quarter compared to the first quarter 2015, and the impact of growth in higher yielding products. Foreign exchange rate changes increased second quarter management fees by $7.2 million when compared to first quarter 2015.

Service and distribution fees, as adjusted, increased $6.2 million (2.9%) to $219.6 million in the second quarter, from $213.4 million in the first quarter 2015.  The increase in service and distribution fees also reflects the AUM changes and the higher day-count in the second quarter.  Foreign exchange rate changes increased second quarter service and distribution fees by $0.2 million when compared to first quarter 2015.

Performance fees, as adjusted, were $13.1 million in the second quarter, compared to $51.7 million in the first quarter 2015. The second quarter performance fees were generated from a variety of investment capabilities including $7.1 million generated from Asia Pacific managed products. Foreign exchange rate changes had no impact on performance fees in the second quarter.

Other revenues, as adjusted, increased by $6.7 million (21.5%) to $37.9 million in the second quarter, compared to $31.2 million in the first quarter 2015, due to increased transaction fees from real estate fund activities. Foreign exchange rate changes decreased other revenues by $0.1 million in the second quarter when compared to the first quarter 2015.

Third-party distribution, service and advisory expenses, as adjusted, increased by $14.9 million (3.7%) to $417.3 million in the second quarter from $402.4 million in the first quarter 2015, consistent with the revenues derived from the related retail AUM. Foreign exchange rate changes increased third-party distribution, service and advisory expenses by $2.2 million in the second quarter when compared to the first quarter 2015.

Total operating expenses, as adjusted, increased by $3.3 million (0.6%) to $546.4 million in the second quarter from $543.1 million in the first quarter 2015. Foreign exchange rate changes increased second quarter operating expenses by $2.3 million when compared to the first quarter 2015.

Employee compensation expenses, as adjusted, decreased by $11.3 million (3.1%) to $351.4 million in the second quarter, from $362.7 million in the first quarter 2015.  The first quarter included seasonally higher payroll tax and additional variable compensation associated with the higher performance fees. These expense reductions were partially offset by a full quarter of higher base salaries that were effective from March 1. Foreign exchange rate changes increased second quarter employee compensation expenses by $1.7 million when compared to the first quarter 2015.

Marketing expenses, as adjusted, increased by $3.3 million (12.0%) to $30.7 million in the second quarter, from $27.4 million in the first quarter 2015. Foreign exchange rate changes increased second quarter marketing expenses by $0.2 million when compared to the first quarter 2015.

Property, office and technology expenses, as adjusted, increased $4.4 million (5.7%) to $82.2 million in the second quarter, from $77.8 million in the first quarter 2015. The increase reflects higher property related expenses in the second quarter compared to the first quarter. Foreign exchange rate changes increased second quarter property, office and technology expenses by $0.3 million when compared to the first quarter 2015.

General and administrative expenses, as adjusted, increased $6.9 million (9.2%) to $82.1 million in the second quarter, from $75.2 million in the first quarter 2015.  The second quarter included $3.6 million of additional fund and regulatory related expenses together with $2.0 million of additional professional services expenses associated with technology initiatives. Foreign exchange rate changes increased second quarter general and administrative expenses by $0.1 million when compared to the first quarter 2015.

Non-operating other income and expenses, as adjusted, included equity in earnings from investments of $2.0 million in the second quarter, compared to $7.5 million in the first quarter 2015. Other gains and losses, net in the second quarter were a gain of $2.1 million compared to a first quarter 2015 loss of $2.7 million. Separately, other income of consolidated sponsored investment products (CSIP) was a gain of $5.1 million in the second quarter, of which $2.4 million is attributable to noncontrolling interests. The first quarter 2015 included a CSIP gain of $9.4 million, of which $4.0 million was attributable to noncontrolling interests.

The adjusted effective tax rate increased to 28.7% for the second quarter, from 26.3% for the first quarter 2015.  The second quarter included a 2.2% rate increase from a non-cash expense for the impact of New York City tax legislation enacted during the quarter.

U.S. GAAP Earnings

This section comments on significant items that have impacted the company's second quarter 2015 results as presented in accordance with U.S. GAAP.

Operating revenues increased 2.1% to $1,318.1 million in the second quarter, from $1,291.6 million in the first quarter 2015. Operating expenses increased by 0.1% to $954.1 million in the second quarter, from $953.5 million in the first quarter 2015.

The effective tax rate on continuing operations increased to 31.0% for the second quarter, from 26.3% for the first quarter 2015. See note 10 on page 22 for further details.

Balance Sheet and Cash Flow Statement Presentation

The company is presenting in this release both a U.S. GAAP balance sheet and balance sheet information excluding consolidated investment products (CIP), along with a U.S. GAAP statement of cash flows and cash flow statement information excluding CIP. The information presented excluding CIP is a non-GAAP presentation. Balance sheet and cash flow statement information before and after the consolidation of investment products are reconciled on pages 15 and 18, respectively.

The company believes that, by excluding the consolidation of investment products, the non-GAAP balance sheet and cash flow statement information provides a more representative presentation of our financial risks and the company's cash and debt positions, allowing more appropriate comparisons with our industry peers. Management uses these non-GAAP presentations to evaluate the business, and the presentations are consistent with internal management reporting. As demonstrated by the selected balance sheet data that follows, inclusion of the long-term debt of CIP within liquidity measures, such as debt-to-equity ratios, causes the company to appear to be significantly more indebted than is actually the case.

Balance Sheets and Capital Management

Selected balance sheet information is reflected in the table below:

Excluding CIP (Non-GAAP)(1)

Including CIP (U.S. GAAP)

June 30, 2015

December 31, 2014

June 30, 2015

December 31, 2014

in millions

Cash and cash equivalents

$1,465.7

$1,514.2

$1,465.7

$1,514.2

Investments of CIP

6,185.1

5,762.8

Total assets(1)

$16,399.5

$14,233.1

$22,898.3

$20,462.5

Long-term debt

1,597.5

1,589.3

1,597.5

1,589.3

Debt of CIP

5,432.1

5,149.6

Long-term debt / Long-term debt plus CIP debt

1,597.5

1,589.3

7,029.6

6,738.9

Total liabilities(1)

$7,885.2

$5,746.7

$13,644.1

$11,177.2

Total permanent equity(1)

$8,345.2

$8,320.9

$9,085.1

$9,119.8

Debt/Equity % (1) (2)

19.1

%

19.1

%

77.4

%

73.9

%

(1)   The balance sheet line items excluding CIP are non-GAAP financial measures. See the reconciliation information on page 15 for balance sheet information before and after the consolidation of investment products.

(2)   The debt/equity ratio excluding CIP is a non-GAAP financial measure. The debt/equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet information excluding CIP and long-term debt plus debt of CIP divided by total permanent equity for the balance sheet including CIP.

As of June 30, 2015, the company's cash and cash equivalents were $1,465.7 million, with long-term debt of $1,597.5 million. The credit facility balance was $7.9 million at June 30, 2015, compared to $11.2 million at March 31, 2015 and zero at December 31, 2014.

Dividends paid in the second quarter were $116.5 million. Today the company is announcing a second-quarter cash dividend of 27.0 cents. The dividend is payable on September 4, 2015, to shareholders of record at the close of business on August 20, 2015, with an ex-dividend date of August 18, 2015.

During the second quarter the company repurchased $81.6 million of its common shares on the open market, representing 2.0 million shares at a weighted average share price of $40.14. This brings year-to-date repurchases to $158.1 million representing 4.0 million shares.

Headcount

As of June 30, 2015, the company had 6,431 employees, compared to 6,360 employees as of March 31, 2015.

Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

Members of the investment community and general public are invited to listen to the conference call today, July 30, 2015, at 9:00 a.m. ET by dialing one of the following numbers: 1-866-617-1526 for U.S. and Canadian callers or 1-210-795-0624 for international callers. An audio replay of the conference call will be available until Thursday, August 13, 2015 at 5:00 p.m. ET by calling 1-866-515-1589 for U.S. and Canadian callers or 1-203-369-2019 for international callers. A presentation highlighting the company's performance will be available during a live Webcast and on Invesco's Website at www.invesco.com.

This release, and comments made in the associated conference call today, may include "forward-looking statements." Forward-looking statements include information concerning future results of our operations, expenses, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisitions and divestitures, debt and our ability to obtain additional financing or make payments, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would" as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

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

Invesco Ltd.

Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts, headcount and AUM)

Q2-15

Q1-15

% Change

Q2-14

% Change

Adjusted revenues:

Investment management fees

$1,083.3

$1,023.6

5.8

%

$1,054.5

2.7

%

Service and distribution fees

219.6

213.4

2.9

%

214.7

2.3

%

Performance fees

13.1

51.7

(74.7)

%

7.3

79.5

%

Other

37.9

31.2

21.5

%

38.9

(2.6)

%

Third-party distribution, service and advisory

(417.3)

(402.4)

3.7

%

(414.4)

0.7

%

Net revenues

936.6

917.5

2.1

%

901.0

4.0

%

Adjusted operating expenses:

Employee compensation

351.4

362.7

(3.1)

%

344.6

2.0

%

Marketing

30.7

27.4

12.0

%

30.9

(0.6)

%

Property, office and technology

82.2

77.8

5.7

%

76.1

8.0

%

General and administrative

82.1

75.2

9.2

%

72.4

13.4

%

Total adjusted operating expenses

546.4

543.1

0.6

%

524.0

4.3

%

Adjusted operating income

390.2

374.4

4.2

%

377.0

3.5

%

Adjusted other income/(expense):

Equity in earnings of unconsolidated affiliates

2.0

7.5

(73.3)

%

4.1

(51.2)

%

Interest and dividend income

4.0

4.8

(16.7)

%

3.9

2.6

%

Interest expense

(19.6)

(18.7)

4.8

%

(18.2)

7.7

%

Other gains and losses, net

2.1

(2.7)

N/A

14.8

(85.8)

%

Other income/(expense) of CSIP, net

5.1

9.4

(45.7)

%

7.7

(33.8)

%

Adjusted income before income taxes

383.8

374.7

2.4

%

389.3

(1.4)

%

Adjusted income tax provision

(110.0)

(98.6)

11.6

%

(103.3)

6.5

%

Adjusted net income

273.8

276.1

(0.8)

%

286.0

(4.3)

%

Adjusted net (income)/loss attributable to noncontrolling interests in consolidated entities

(2.4)

(4.0)

(40.0)

%

(3.6)

(33.3)

%

Adjusted net income attributable to Invesco Ltd.

$271.4

$272.1

(0.3)

%

$282.4

(3.9)

%

Adjusted diluted EPS

$0.63

$0.63

%

$0.65

(3.1)

%

Average diluted shares outstanding

432.2

432.5

(0.1)

%

436.4

(1.0)

%

Ending headcount

6,431

6,360

1.1

%

6,070

5.9

%

Ending AUM (in billions)

$803.6

$798.3

0.7

%

$802.4

0.1

%

Average AUM (in billions)

$810.9

$795.4

1.9

%

$790.1

2.6

%

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

(Unaudited, in millions, other than per share amounts)

Q2-15

Q1-15

% Change

Q2-14

% Change

Operating revenues:

Investment management fees

$1,055.7

$1,001.4

5.4

%

$1,031.9

2.3

%

Service and distribution fees

219.6

213.4

2.9

%

214.7

2.3

%

Performance fees

6.7

46.8

(85.7)

%

5.0

34.0

%

Other

36.1

30.0

20.3

%

38.3

(5.7)

%

Total operating revenues

1,318.1

1,291.6

2.1

%

1,289.9

2.2

%

Operating expenses:

Employee compensation

347.2

360.9

(3.8)

%

342.9

1.3

%

Third-party distribution, service and advisory

413.3

399.1

3.6

%

410.6

0.7

%

Marketing

29.7

26.7

11.2

%

30.2

(1.7)

%

Property, office and technology

74.8

76.9

(2.7)

%

75.3

(0.7)

%

General and administrative

89.1

89.9

(0.9)

%

76.1

17.1

%

Total operating expenses

954.1

953.5

0.1

%

935.1

2.0

%

Operating income

364.0

338.1

7.7

%

354.8

2.6

%

Other income/(expense):

Equity in earnings of unconsolidated affiliates

12.0

11.8

1.7

%

5.5

118.2

%

Interest and dividend income

2.6

2.5

4.0

%

3.1

(16.1)

%

Interest expense

(19.6)

(18.7)

4.8

%

(18.2)

7.7

%

Other gains and losses, net

(8.8)

2.7

N/A

16.2

N/A

Other income/(expense) of CSIP, net

5.1

9.4

(45.7)

%

7.7

(33.8)

%

Consolidated investment products (CIP):

 Interest income of CIP

65.1

60.2

8.1

%

48.0

35.6

%

 Interest expense of CIP

(47.3)

(45.1)

4.9

%

(30.3)

56.1

%

 Other gains/(losses) of CIP, net

(19.7)

24.4

N/A

36.8

N/A

Income from continuing operations before income taxes

353.4

385.3

(8.3)

%

423.6

(16.6)

%

Income tax provision

(109.4)

(101.3)

8.0

%

(107.0)

2.2

%

Income from continuing operations, net of taxes

244.0

284.0

(14.1)

%

316.6

(22.9)

%

Income/(loss) from discontinued operations, net of taxes

N/A

0.2

N/A

Net income

244.0

284.0

(14.1)

%

316.8

(23.0)

%

Net (income)/loss attributable to noncontrolling interests in consolidated entities

13.3

(24.4)

N/A

(42.3)

N/A

Net income attributable to Invesco Ltd.

$257.3

$259.6

(0.9)

%

$274.5

(6.3)

%

Earnings per share:

---Basic EPS from continuing operations

$0.60

$0.60

%

$0.63

(4.8)

%

---Basic EPS from discontinued operations

$—

$—

N/A

$—

N/A

---Total basic

$0.60

$0.60

%

$0.63

(4.8)

%

---Diluted EPS from continuing operations

$0.60

$0.60

%

$0.63

(4.8)

%

---Diluted EPS from discontinued operations

$—

$—

N/A

$—

N/A

---Total diluted

$0.60

$0.60

%

$0.63

(4.8)

%

Average shares outstanding:

---basic

431.9

432.2

(0.1)

%

435.7

(0.9)

%

---diluted

432.2

432.5

(0.1)

%

436.4

(1.0)

%

 

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

(Unaudited, in millions, other than per share amounts)

Six months ended June 30,

2015

2014

% Change

Operating revenues:

Investment management fees

$2,057.1

$1,997.3

3.0

%

Service and distribution fees

433.0

453.3

(4.5)

%

Performance fees

53.5

36.1

48.2

%

Other

66.1

72.7

(9.1)

%

Total operating revenues

2,609.7

2,559.4

2.0

%

Operating expenses:

Employee compensation

708.1

705.0

0.4

%

Third-party distribution, service and advisory

812.4

816.0

(0.4)

%

Marketing

56.4

53.6

5.2

%

Property, office and technology

151.7

188.0

(19.3)

%

General and administrative

179.0

197.7

(9.5)

%

Total operating expenses

1,907.6

1,960.3

(2.7)

%

Operating income

702.1

599.1

17.2

%

Other income/(expense):

Equity in earnings of unconsolidated affiliates

23.8

15.5

53.5

%

Interest and dividend income

5.1

6.0

(15.0)

%

Interest expense

(38.3)

(36.9)

3.8

%

Other gains and losses, net

(6.1)

22.8

N/A

Other income/(expense) of CSIP, net

14.5

15.9

(8.8)

%

Consolidated investment products (CIP):

 Interest income of CIP

125.3

96.3

30.1

%

 Interest expense of CIP

(92.4)

(60.6)

52.5

%

 Other gains/(losses) of CIP, net

4.7

63.3

(92.6)

%

Income from continuing operations before income taxes

738.7

721.4

2.4

%

Income tax provision

(210.7)

(196.0)

7.5

%

Income from continuing operations, net of taxes

528.0

525.4

0.5

%

Income/(loss) from discontinued operations, net of taxes

(1.8)

N/A

Net income

528.0

523.6

0.8

%

Net (income)/loss attributable to noncontrolling interests in consolidated entities

(11.1)

(61.3)

(81.9)

%

Net income attributable to Invesco Ltd.

$516.9

$462.3

11.8

%

Earnings per share:

---Basic EPS from continuing operations

$1.20

$1.06

13.2

%

---Basic EPS from discontinued operations

$—

$—

N/A

---Total basic

$1.20

$1.06

13.2

%

---Diluted EPS from continuing operations

$1.20

$1.06

13.2

%

---Diluted EPS from discontinued operations

$—

$—

N/A

---Total diluted

$1.20

$1.06

13.2

%

Average shares outstanding:

---basic

432.0

436.2

(1.0)

%

---diluted

432.3

436.9

(1.1)

%

 

 

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts)

Three months ended June 30, 2015

U.S. GAAP basis

Proportional consolidation of joint ventures

Third party distribution, service and advisory expenses

Acquisition / Disposition related

Market appreciation / depreciation of deferred compensation awards

CIP

Other reconciling items

Non-GAAP basis

Operating revenues:

Investment management fees

$1,055.7

$19.6

$—

$—

$—

$8.0

$—

$1,083.3

Service and distribution fees

219.6

219.6

Performance fees

6.7

4.0

2.4

13.1

Other

36.1

1.8

37.9

Third-party distribution, service and advisory

(4.0)

(413.3)

(417.3)

Total operating revenues reconciled to net revenues

1,318.1

21.4

(413.3)

10.4

936.6

Operating expenses:

Employee compensation

347.2

5.5

(1.3)

351.4

Third-party distribution, service and advisory

413.3

(413.3)

Marketing

29.7

1.0

30.7

Property, office and technology

74.8

1.0

6.4

82.2

General and administrative

89.1

1.8

(2.6)

(1.5)

(4.7)

82.1

Total operating expenses

954.1

9.3

(413.3)

(2.6)

(1.3)

(1.5)

1.7

546.4

Operating income reconciled to adjusted operating income

364.0

12.1

2.6

1.3

11.9

(1.7)

390.2

Other income/(expense):

Equity in earnings of unconsolidated affiliates

12.0

(9.5)

(0.5)

2.0

Interest and dividend income

2.6

0.9

(0.3)

0.8

4.0

Interest expense

(19.6)

(19.6)

Other gains and losses, net

(8.8)

3.5

1.2

6.2

2.1

Other income/(expense) of CSIP, net

5.1

5.1

CIP:

Interest income of CIP

65.1

(65.1)

Interest expense of CIP

(47.3)

47.3

Other gains/(losses) of CIP, net

(19.7)

19.7

Income from continuing operations before income taxes

353.4

3.5

2.6

4.5

15.3

4.5

383.8

Income tax provision

(109.4)

(3.5)

4.8

(1.4)

(0.5)

(110.0)

Income from continuing operations, net of income taxes

244.0

7.4

3.1

15.3

4.0

273.8

Income/(loss) from discontinued operations, net of taxes

Net income

244.0

7.4

3.1

15.3

4.0

273.8

Net (income)/loss attributable to noncontrolling interests in consolidated entities

13.3

(15.7)

(2.4)

Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd.

$257.3

$—

$—

$7.4

$3.1

($0.4)

$4.0

$271.4

Operating margin

27.6

%

Adjusted operating margin

41.7

%

Average diluted shares outstanding

432.2

Average diluted shares outstanding

432.2

Diluted EPS from continuing operations

$0.60

Adjusted diluted EPS

$0.63

Diluted EPS from discontinued operations

$—

Diluted EPS

$0.60

 

See pages 19 through 22 for notes to the reconciliation.

 

 

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts)

Three months ended March 31, 2015

U.S. GAAP basis

Proportional consolidation of joint ventures

Third party distribution, service and advisory expenses

Acquisition / Disposition related

Market appreciation / depreciation of deferred compensation awards

CIP

Other reconciling items

Non-GAAP basis

Operating revenues:

Investment management fees

$1,001.4

$15.3

$—

$—

$—

$6.9

$—

$1,023.6

Service and distribution fees

213.4

213.4

Performance fees

46.8

2.5

2.4

51.7

Other

30.0

1.2

31.2

Third-party distribution, service and advisory

(3.3)

(399.1)

(402.4)

Total operating revenues reconciled to net revenues

1,291.6

15.7

(399.1)

9.3

917.5

Operating expenses:

Employee compensation

360.9

5.7

(3.9)

362.7

Third-party distribution, service and advisory

399.1

(399.1)

Marketing

26.7

0.7

27.4

Property, office and technology

76.9

0.9

77.8

General and administrative

89.9

1.4

(3.9)

(12.2)

75.2

Total operating expenses

953.5

8.7

(399.1)

(3.9)

(3.9)

(12.2)

543.1

Operating income reconciled to adjusted operating income

338.1

7.0

3.9

3.9

21.5

374.4

Other income/(expense):

Equity in earnings of unconsolidated affiliates

11.8

(6.0)

1.7

7.5

Interest and dividend income

2.5

1.0

(0.1)

1.4

4.8

Interest expense

(18.7)

(18.7)

Other gains and losses, net

2.7

(5.0)

2.7

(3.1)

(2.7)

Other income/(expense) of CSIP, net

9.4

9.4

CIP:

Interest income of CIP

60.2

(60.2)

Interest expense of CIP

(45.1)

45.1

Other gains/(losses) of CIP, net

24.4

(24.4)

Income from continuing operations before income taxes

385.3

2.0

3.9

(1.2)

(12.2)

(3.1)

374.7

Income tax provision

(101.3)

(2.0)

4.4

0.3

(98.6)

Income from continuing operations, net of taxes

284.0

8.3

(0.9)

(12.2)

(3.1)

276.1

Income/(loss) from discontinued operations, net of taxes

Net income

284.0

8.3

(0.9)

(12.2)

(3.1)

276.1

Net (income)/loss attributable to noncontrolling interests in consolidated entities

(24.4)

20.4

(4.0)

Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd.

$259.6

$—

$—

$8.3

($0.9)

$8.2

($3.1)

$272.1

Operating margin

26.2

%

Adjusted operating margin

40.8

%

Average diluted shares outstanding

432.5

Average diluted shares outstanding

432.5

Diluted EPS form continuing operations

$0.60

Adjusted diluted EPS

$0.63

Diluted EPS from discontinued operations

$—

Diluted EPS

$0.60

 

See pages 19 through 22 for notes to the reconciliation.

 

 

Invesco Ltd.

Reconciliation of U.S. GAAP Condensed Consolidated Income Statement to Non-GAAP Condensed Consolidated Income Statement Information

(Unaudited, in millions, other than per share amounts)

Three months ended June 30, 2014

U.S. GAAP basis

Proportional consolidation of joint ventures

Third party distribution, service and advisory expenses

Acquisition / Disposition related

Market appreciation / depreciation of deferred compensation awards

CIP

Non-GAAP basis

Operating revenues:

Investment management fees

$1,031.9

$16.2

$—

$—

$—

$6.4

$1,054.5

Service and distribution fees

214.7

214.7

Performance fees

5.0

2.3

7.3

Other

38.3

0.7

(0.1)

38.9

Third-party distribution, service and advisory

(3.8)

(410.6)

(414.4)

Total operating revenues reconciled to net revenues

1,289.9

13.1

(410.6)

8.6

901.0

Operating expenses:

Employee compensation

342.9

5.4

(3.7)

344.6

Third-party distribution, service and advisory

410.6

(410.6)

Marketing

30.2

0.7

30.9

Property, office and technology

75.3

0.8

76.1

General and administrative

76.1

1.4

(3.4)

(1.7)

72.4

Total operating expenses

935.1

8.3

(410.6)

(3.4)

(3.7)

(1.7)

524.0

Operating income reconciled to adjusted operating income

354.8

4.8

3.4

3.7

10.3

377.0

Other income/(expense):

Equity in earnings of unconsolidated affiliates

5.5

(3.6)

2.2

4.1

Interest and dividend income

3.1

1.1

(0.9)

0.6

3.9

Interest expense

(18.2)

(18.2)

Other gains and losses, net

16.2

(6.1)

4.7

14.8

Other income/(expense) of CSIP, net

7.7

7.7

CIP:

Interest income of CIP

48.0

(48.0)

Interest expense of CIP

(30.3)

30.3

Other gains/(losses) of CIP, net

36.8

(36.8)

Income from continuing operations before income taxes

423.6

2.3

3.4

(3.3)

(36.7)

389.3

Income tax provision

(107.0)

(2.3)

5.0

1.0

(103.3)

Income from continuing operations, net of taxes

316.6

8.4

(2.3)

(36.7)

286.0

Income/(loss) from discontinued operations, net of taxes

0.2

(0.2)

Net income

316.8

8.2

(2.3)

(36.7)

286.0

Net (income)/loss attributable to noncontrolling interests in consolidated entities

(42.3)

38.7

(3.6)

Net income attributable to Invesco Ltd. reconciled to adjusted net income attributable to Invesco Ltd.

$274.5

$—

$—

$8.2

($2.3)

$2.0

$282.4

Operating margin

27.5

%

Adjusted operating margin

41.8

%

Average diluted shares outstanding

436.4

Average diluted shares outstanding

436.4

Diluted EPS form continuing operations

$0.63

Adjusted diluted EPS

$0.65

Diluted EPS from discontinued operations

$—

Diluted EPS

$0.63

 

See pages 19 through 22 for notes to the reconciliation.

 

 

Invesco Ltd.

Condensed Consolidated Balance Sheet Information Excluding CIP

(a non-GAAP presentation, unaudited, in millions)

June 30, 2015

December 31, 2014

ADJUSTED ASSETS

Cash and cash equivalents

$1,465.7

$1,514.2

Unsettled fund receivables

1,119.2

732.4

Accounts receivable

532.8

549.7

Investments

1,064.9

980.3

Assets of consolidated sponsored investment products (CSIP)

321.5

305.8

Assets held for policyholders

3,458.6

1,697.9

Prepaid assets

133.7

132.1

Other assets

83.2

92.0

Property, equipment and software, net

410.3

402.6

Intangible assets, net

1,360.5

1,246.7

Goodwill

6,449.1

6,579.4

Total adjusted assets

$16,399.5

$14,233.1

ADJUSTED LIABILITIES

Accrued compensation and benefits

$474.8

$667.3

Accounts payable and accrued expenses

881.3

757.3

Policyholder payables

3,458.6

1,697.9

Unsettled fund payables

1,106.0

730.1

Long-term debt

1,597.5

1,589.3

Deferred tax liabilities, net

367.0

304.8

Total adjusted liabilities

7,885.2

5,746.7

ADJUSTED TEMPORARY EQUITY

Redeemable noncontrolling interests in CSIP

169.1

165.5

ADJUSTED PERMANENT EQUITY

Equity attributable to Invesco Ltd.:

Common shares

98.1

98.1

Additional paid-in-capital

6,131.0

6,133.6

Treasury shares

(2,024.3)

(1,898.1)

Retained earnings

4,205.8

3,905.7

Accumulated other comprehensive income/(loss), net of tax

(82.3)

69.0

Total adjusted equity attributable to Invesco Ltd.

8,328.3

8,308.3

Adjusted equity attributable to nonredeemable noncontrolling interests in consolidated entities

16.9

12.6

Total adjusted permanent equity

8,345.2

8,320.9

Total adjusted liabilities, temporary and permanent equity

$16,399.5

$14,233.1

 

 

Invesco Ltd.

U.S. GAAP Condensed Consolidated Balance Sheets

(Unaudited, in millions)

June 30, 2015

December 31, 2014

ASSETS

Cash and cash equivalents

$1,465.7

$1,514.2

Unsettled fund receivables

1,119.2

732.4

Accounts receivable

527.6

545.9

Investments

959.5

885.4

Assets of consolidated sponsored investment products (CSIP)

321.5

305.8

Assets of consolidated investment products (CIP):

Cash and cash equivalents of CIP

314.8

404.0

Accounts receivable of CIP

109.5

161.3

Investments of CIP

6,185.1

5,762.8

Assets held for policyholders

3,458.6

1,697.9

Prepaid assets

133.7

132.1

Other assets

83.2

92.0

Property, equipment and software, net

410.3

402.6

Intangible assets, net

1,360.5

1,246.7

Goodwill

6,449.1

6,579.4

Total assets

$22,898.3

$20,462.5

LIABILITIES

Accrued compensation and benefits

$474.8

$667.3

Accounts payable and accrued expenses

881.3

757.3

Liabilities of CIP:

Debt of CIP

5,432.1

5,149.6

Other liabilities of CIP

326.8

280.9

Policyholder payables

3,458.6

1,697.9

Unsettled fund payables

1,106.0

730.1

Long-term debt

1,597.5

1,589.3

Deferred tax liabilities, net

367.0

304.8

Total liabilities

13,644.1

11,177.2

TEMPORARY EQUITY

Redeemable noncontrolling interests in CSIP

169.1

165.5

PERMANENT EQUITY

Equity attributable to Invesco Ltd.:

Common shares

98.1

98.1

Additional paid-in-capital

6,131.0

6,133.6

Treasury shares

(2,024.3)

(1,898.1)

Retained earnings

4,218.3

3,926.0

Retained earnings appropriated for investors in CIP

17.6

Accumulated other comprehensive income/(loss), net of tax

(94.8)

48.8

Total equity attributable to Invesco Ltd.

8,328.3

8,326.0

Equity attributable to nonredeemable noncontrolling interests in consolidated entities

756.8

793.8

Total permanent equity

9,085.1

9,119.8

Total liabilities, temporary and permanent equity

$22,898.3

$20,462.5

 

 

Invesco Ltd.

Reconciliations of Condensed Consolidated Balance Sheet Information Excluding CIP to

U.S. GAAP Condensed Consolidated Balance Sheets (unaudited, in millions)

June 30, 2015

December 31, 2014

Before Consolidation (non-GAAP)

Impact of Consolidation

Total

(U.S. GAAP)

Before Consolidation (non-GAAP)

Impact of Consolidation

Total

(U.S. GAAP)

ASSETS

Cash and cash equivalents

$1,465.7

$—

$1,465.7

$1,514.2

$—

$1,514.2

Unsettled fund receivables

1,119.2

1,119.2

732.4

732.4

Accounts receivable

532.8

(5.2)

527.6

549.7

(3.8)

545.9

Investments

1,064.9

(105.4)

959.5

980.3

(94.9)

885.4

Assets of CSIP

321.5

321.5

305.8

305.8

Assets of CIP:

Cash and cash equivalents of CIP

314.8

314.8

404.0

404.0

Accounts receivable of CIP

109.5

109.5

161.3

161.3

Investments of CIP

6,185.1

6,185.1

5,762.8

5,762.8

Assets held for policyholders

3,458.6

3,458.6

1,697.9

1,697.9

Prepaid assets

133.7

133.7

132.1

132.1

Other assets

83.2

83.2

92.0

92.0

Property, equipment and software, net

410.3

410.3

402.6

402.6

Intangible assets, net

1,360.5

1,360.5

1,246.7

1,246.7

Goodwill

6,449.1

6,449.1

6,579.4

6,579.4

Total assets

$16,399.5

$6,498.8

$22,898.3

$14,233.1

$6,229.4

$20,462.5

LIABILITIES

Accrued compensation and benefits

$474.8

$—

$474.8

$667.3

$—

$667.3

Accounts payable and accrued expenses

881.3

881.3

757.3

757.3

Liabilities of CIP:

Debt of CIP

5,432.1

5,432.1

5,149.6

5,149.6

Other liabilities of CIP

326.8

326.8

280.9

280.9

Policyholder payables

3,458.6

3,458.6

1,697.9

1,697.9

Unsettled fund payables

1,106.0

1,106.0

730.1

730.1

Long-term debt

1,597.5

1,597.5

1,589.3

1,589.3

Deferred tax liabilities, net

367.0

367.0

304.8

304.8

Total liabilities

7,885.2

5,758.9

13,644.1

5,746.7

5,430.5

11,177.2

TEMPORARY EQUITY

Redeemable noncontrolling interests in CSIP

169.1

169.1

165.5

165.5

PERMANENT EQUITY

Equity attributable to Invesco Ltd.:

Common shares

98.1

98.1

98.1

98.1

Additional paid-in-capital

6,131.0

6,131.0

6,133.6

6,133.6

Treasury shares

(2,024.3)

(2,024.3)

(1,898.1)

(1,898.1)

Retained earnings

4,205.8

12.5

4,218.3

3,905.7

20.3

3,926.0

Retained earnings appropriated for investors in CIP

17.6

17.6

Accumulated other comprehensive income/(loss), net of tax

(82.3)

(12.5)

(94.8)

69.0

(20.2)

48.8

Total equity attributable to Invesco Ltd.

8,328.3

8,328.3

8,308.3

17.7

8,326.0

Equity attributable to nonredeemable noncontrolling interests in consolidated entities

16.9

739.9

756.8

12.6

781.2

793.8

Total permanent equity

8,345.2

739.9

9,085.1

8,320.9

798.9

9,119.8

Total liabilities, temporary and permanent equity

$16,399.5

$6,498.8

$22,898.3

$14,233.1

$6,229.4

$20,462.5

 

See pages 19 through 22 for notes to the reconciliation.

 

 

Invesco Ltd.

Condensed Consolidated Cash Flow Statement Information Excluding CIP

(a non-GAAP presentation, unaudited, in millions)

Six months ended June 30,

2015

2014

Adjusted operating activities:

U.S. GAAP net income

$528.0

$523.6

Consolidated investment product (CIP) net (income)/loss

3.1

(58.1)

Net income adjusted to remove impact of CIP

531.1

465.5

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

Amortization and depreciation

46.0

45.8

Share-based compensation expense

76.7

70.0

Other (gains)/losses, net

2.2

(27.5)

Other (gains)/losses of CSIP, net

(8.2)

(11.5)

Equity in earnings of unconsolidated affiliates

(25.0)

(18.9)

Dividends from unconsolidated affiliates

1.4

15.4

Changes in operating assets and liabilities:

(Increase)/decrease in cash held by CSIP

(4.9)

(1.0)

(Purchase)/sale of trading investments, net

(55.1)

(10.4)

(Increase)/decrease in receivables

(2,031.8)

(385.7)

Increase/(decrease) in payables

1,852.7

172.0

Adjusted net cash provided by/(used in) operating activities

385.1

313.7

Adjusted investing activities:

Purchase of property, equipment and software

(50.4)

(49.8)

Purchase of available-for-sale investments

(80.7)

(146.2)

Sale of available-for-sale investments

50.5

112.6

Purchase of investments by CSIP

(273.2)

(476.1)

Sale of investments by CSIP

274.7

274.3

Purchase of other investments

(89.9)

(69.7)

Sale of other investments

59.7

40.3

Returns of capital and distributions from unconsolidated partnership investments

34.5

27.9

Sale of business

60.8

Adjusted net cash provided by/(used in) investing activities

(74.8)

(225.9)

Adjusted financing activities:

Proceeds from exercises of share options

1.2

5.2

Purchases of treasury shares

(158.1)

(169.6)

Dividends paid

(224.6)

(207.1)

Excess tax benefits from share-based compensation

18.3

17.6

Repayment of unsettled fund account

(35.7)

Third-party capital invested into CSIP

1.7

152.5

Third-party capital distributed by CSIP

(1.4)

Net borrowings/(repayments) under credit facility

7.9

Adjusted net cash provided by/(used in) financing activities

(353.6)

(238.5)

Increase /(decrease) in cash and cash equivalents

(43.3)

(150.7)

Foreign exchange movement on cash and cash equivalents

(5.2)

15.5

Cash and cash equivalents, beginning of period

1,514.2

1,331.2

Cash and cash equivalents, end of period

$1,465.7

$1,196.0

 

 

 

Invesco Ltd.

U.S. GAAP Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)

Six months ended June 30,

2015

2014

Operating activities:

Net income

$528.0

$523.6

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

Amortization and depreciation

46.0

45.8

Share-based compensation expense

76.7

70.0

Other (gains)/losses, net

6.1

(22.8)

Other (gains)/losses of CSIP, net

(8.2)

(11.5)

Other (gains)/losses of CIP, net

(4.7)

(63.3)

Equity in earnings of unconsolidated affiliates

(23.8)

(15.5)

Dividends from unconsolidated affiliates

1.4

15.4

Changes in operating assets and liabilities:

(Increase)/decrease in cash held by CIP

88.3

260.1

(Increase)/decrease in cash held by CSIP

(4.9)

(1.0)

(Purchase)/sale of trading investments, net

(55.1)

(10.4)

(Increase)/decrease in receivables

(2,049.9)

(402.7)

Increase/(decrease) in payables

1,858.6

162.6

Net cash provided by/(used in) operating activities

458.5

550.3

Investing activities:

Purchase of property, equipment and software

(50.4)

(49.8)

Purchase of available-for-sale investments

(35.6)

(112.5)

Sale of available-for-sale investments

18.0

75.1

Purchase of investments by CIP

(1,927.1)

(2,848.8)

Sale of investments by CIP

1,591.1

2,108.5

Purchase of investments by CSIP

(273.2)

(476.1)

Sale of investments by CSIP

274.7

274.3

Purchase of other investments

(89.4)

(67.5)

Sale of other investments

59.7

40.3

Returns of capital and distributions from unconsolidated partnership investments

34.4

25.9

Sale of business

60.8

Net cash provided by/(used in) investing activities

(397.8)

(969.8)

Financing activities:

Proceeds from exercises of share options

1.2

5.2

Purchases of treasury shares

(158.1)

(169.6)

Dividends paid

(224.6)

(207.1)

Excess tax benefits from share-based compensation

18.3

17.6

Repayment of unsettled fund account

(35.7)

Third-party capital invested into CIP

17.9

155.8

Third-party capital distributed by CIP

(64.1)

(68.0)

Third-party capital invested into CSIP

1.7

152.5

Third-party capital distributed by CSIP

(1.4)

Borrowings of debt by CIP

945.9

715.0

Repayments of debt by CIP

(650.1)

(295.5)

Net borrowings/(repayments) under credit facility

7.9

Net cash provided by/(used in) financing activities

(104.0)

268.8

Increase/(decrease) in cash and cash equivalents

(43.3)

(150.7)

Foreign exchange movement on cash and cash equivalents

(5.2)

15.5

Cash and cash equivalents, beginning of period

1,514.2

1,331.2

Cash and cash equivalents, end of period

$1,465.7

$1,196.0

 

 

 

Invesco Ltd.

Reconciliations of Condensed Consolidated Cash Flow Information Excluding CIP to U.S. GAAP Condensed Consolidated Statements of Cash Flows

(unaudited, in millions)

Six months ended June 30, 2015

Six months ended June 30, 2014

Before Consolidation (non-GAAP)

Impact of Consolidation

Total

(U.S. GAAP)

Before Consolidation (non-GAAP)

Impact of Consolidation

Total

(U.S. GAAP)

Operating activities:

Net income

$531.1

($3.1)

$528.0

$465.5

$58.1

$523.6

Amortization and depreciation

46.0

46.0

45.8

45.8

Share-based compensation expense

76.7

76.7

70.0

70.0

Other (gains)/losses, net

2.2

3.9

6.1

(27.5)

4.7

(22.8)

Other (gains)/losses of CSIP, net

(8.2)

(8.2)

(11.5)

(11.5)

Other (gains)/losses of CIP, net

(4.7)

(4.7)

(63.3)

(63.3)

Equity in earnings of unconsolidated affiliates

(25.0)

1.2

(23.8)

(18.9)

3.4

(15.5)

Dividends from unconsolidated affiliates

1.4

1.4

15.4

15.4

Changes in operating assets and liabilities:

(Increase)/decrease in cash held by CIP

88.3

88.3

260.1

260.1

(Increase)/decrease in cash held by CSIP

(4.9)

(4.9)

(1.0)

(1.0)

(Purchase)/sale of trading investments, net

(55.1)

(55.1)

(10.4)

(10.4)

(Increase)/decrease in receivables

(2,031.8)

(18.1)

(2,049.9)

(385.7)

(17.0)

(402.7)

Increase/(decrease) in payables

1,852.7

5.9

1,858.6

172.0

(9.4)

162.6

Net cash provided by/(used in) operating activities

385.1

73.4

458.5

313.7

236.6

550.3

Investing activities:

Purchase of property, equipment and software

(50.4)

(50.4)

(49.8)

(49.8)

Purchase of available-for-sale investments

(80.7)

45.1

(35.6)

(146.2)

33.7

(112.5)

Sale of available-for-sale investments

50.5

(32.5)

18.0

112.6

(37.5)

75.1

Purchase of investments by CIP

(1,927.1)

(1,927.1)

(2,848.8)

(2,848.8)

Sale of investments by CIP

1,591.1

1,591.1

2,108.5

2,108.5

Purchase of investments by CSIP

(273.2)

(273.2)

(476.1)

(476.1)

Sale of investments by CSIP

274.7

274.7

274.3

274.3

Purchase of other investments

(89.9)

0.5

(89.4)

(69.7)

2.2

(67.5)

Sale of other investments

59.7

59.7

40.3

40.3

Returns of capital and distributions from unconsolidated partnership investments

34.5

(0.1)

34.4

27.9

(2.0)

25.9

Sale of business

60.8

60.8

Net cash provided by/(used in) investing activities

(74.8)

(323.0)

(397.8)

(225.9)

(743.9)

(969.8)

Financing activities:

Proceeds from exercises of share options

1.2

1.2

5.2

5.2

Purchases of treasury shares

(158.1)

(158.1)

(169.6)

(169.6)

Dividends paid

(224.6)

(224.6)

(207.1)

(207.1)

Excess tax benefits from share-based compensation

18.3

18.3

17.6

17.6

Repayment of unsettled fund account

(35.7)

(35.7)

Third-party capital invested into CIP

17.9

17.9

155.8

155.8

Third-party capital distributed by CIP

(64.1)

(64.1)

(68.0)

(68.0)

Third-party capital invested into CSIP

1.7

1.7

152.5

152.5

Third-party capital distributed by CSIP

(1.4)

(1.4)

Borrowings of debt by CIP

945.9

945.9

715.0

715.0

Repayments of debt by CIP

(650.1)

(650.1)

(295.5)

(295.5)

Net borrowings/(repayments) under credit facility

7.9

7.9

Net cash provided by/(used in) financing activities

(353.6)

249.6

(104.0)

(238.5)

507.3

268.8

Increase/(decrease) in cash and cash equivalents

(43.3)

(43.3)

(150.7)

(150.7)

Foreign exchange movement on cash and cash equivalents

(5.2)

(5.2)

15.5

15.5

Cash and cash equivalents, beginning of period

1,514.2

1,514.2

1,331.2

1,331.2

Cash and cash equivalents, end of period

$1,465.7

$—

$1,465.7

$1,196.0

$—

$1,196.0

See pages 19 through 22 for notes to the reconciliation.

Invesco Ltd.

Notes

We are presenting the following non-GAAP performance measures: net revenues (and by calculation, net revenue yield on AUM), adjusted operating income (and by calculation, adjusted operating margin), and adjusted net income attributable to Invesco Ltd. (and by calculation, adjusted diluted earnings per share (EPS)). We believe these non-GAAP measures provide greater transparency into our business on an ongoing operations basis and allow more appropriate comparisons with industry peers. Management uses these performance measures to evaluate the business, and they are consistent with internal management reporting. The most directly comparable U.S. GAAP measures are operating revenues (and by calculation, gross revenue yield on AUM), operating income (and by calculation, operating margin), and net income attributable to Invesco Ltd. (and by calculation, diluted EPS). Non-GAAP measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies.

Notes 1 through 8 relate to the income statement reconciliations presented on pages 10 through 12. Further explanations of the reasons the company considers it appropriate to present these adjustments in arriving at the non-GAAP measures can be found in the company's Form 10-K.

Note 9 relates to the balance sheet and cash flow statement reconciliations on pages 15 and 18, respectively.

Note 10 relates to the U.S. GAAP effective tax rate and the impact of non-controlling interests in consolidated investment products (CIP) and consolidated sponsored investment products (CSIP) on the rate.

1.       Acquisition/disposition related adjustments

Acquisition/disposition related adjustments are comprised of amounts incurred by the company in connection with business combinations, including intangible asset amortization, and all related tax effects. In addition, the net (income)/loss from discontinued operations associated with the sale of the Atlantic Trust business has been excluded from the non-GAAP income statement information. Exclusion of this line item assists in evaluating the continuing business performance and comparability with our results period to period, and aids comparability with peer companies that may not have similar discontinued operations.

Adjustment amounts related to acquisition and disposition activities are as follows:

in millions

Q2-15

Q1-15

Q2-14

Intangible amortization

$2.6

$2.7

$3.4

Taxation on amortization

(0.3)

(0.4)

(0.4)

Deferred taxation

5.1

5.3

5.4

Other acquisition-related items

1.2

Taxation on other acquisition-related items

(0.5)

(Income)/loss from discontinued operations, net of taxes

(0.2)

$7.4

$8.3

$8.2

 

2.   Third-party distribution, service and advisory expenses

Third-party distribution, service and advisory expenses include renewal commissions, management fee rebates and distribution costs (12b-1 and marketing support) paid to brokers and independent financial advisors, and other service and administrative fees paid to third parties, which are all closely linked to the revenue earned by the company from AUM but vary extensively by geography due to differences in distribution channels. The non-GAAP presentation nets these costs against revenues to arrive at net revenues, which serves to reflect these costs as revenue sharing activities and to remove distortions caused by differing distribution channel fees.

3.   Proportional share of net revenues and operating income from joint venture investments

The company has two joint ventures in China. Enhancing operations in China is one effort that the company believes could improve its competitive position over time. U.S. GAAP requires classification of the joint venture net income as equity in earnings of unconsolidated affiliates. The non-GAAP adjustment proportionately consolidates these joint ventures, serving to illustrate the contribution of these joint ventures to the operations of the business.

4.   Consolidated investment products (CIP)

Management and performance fees earned by the company, which were eliminated from operating revenues upon consolidation of the CIPs, were $10.4 million in the second quarter (first quarter 2015: $9.3 million; second quarter 2014: $8.7 million) while no other revenues (first quarter 2015: none, second quarter 2014: $0.1 million) were recorded by CIP in the second quarter. By deconsolidating these products in the non-GAAP information, the management and performance fees are added back while the other revenues are excluded. Similarly, the operating expenses of the CIPs and impact on interest income, interest expense, gains and losses, and noncontrolling interests are removed in reconciling from the U.S. GAAP income statement to the non-GAAP information. The consolidation of the investment products resulted in an increase of $0.4 million in net income attributable to Invesco Ltd. in the second quarter U.S. GAAP earnings (first quarter 2015: $8.2 million decrease; second quarter 2014: $2.0 million decrease). The above adjustments remove this impact.

5.   Market appreciation / depreciation of deferred compensation awards

This adjustment relates to deferred cash compensation that is linked in value to investment products. The market appreciation of the compensation liability was $1.3 million in the second quarter (first quarter 2015: $3.9 million appreciation; second quarter 2014: $3.7 million appreciation) with an investment loss, inclusive of interest and dividend income, of $3.2 million in the second quarter (first quarter 2015: $5.1 million gain; second quarter 2014: $7.0 million gain) on the assets held to hedge economically the compensation liability. This change in compensation expense and the investment income/loss are adjusted in arriving at the non-GAAP information and, net of the applicable tax charge of $1.4 million in the second quarter (first quarter 2015: $0.3 million credit; second quarter 2014: $1.0 million credit), result in a net income addition of $3.1 million for the second quarter (first quarter 2015: $0.9 million deduction; second quarter 2014: $2.3 million deduction).

6.   Other reconciling items

in millions

Q2-15

Q1-15

Q2-14

Business optimization charges: (a)

Property, office and technology

(6.4)

Taxation on business optimization charges

1.3

Fund reimbursement expense (b)

4.7

Taxation on fund reimbursement expense (b)

(1.8)

Foreign exchange hedge loss/(gain) (c)

6.2

(3.1)

$4.0

($3.1)

$—

 

a.       Business optimization: Operating expenses for the second quarter 2015 include a credit of $6.4 million related to the provision associated with vacated leased properties.

b.       Included within general and administrative expenses for the second quarter 2015 is a charge of $4.7 million in respect of a multi-year fund reimbursement expense associated with historical private equity management fees and related professional services fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees.

c.       Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through December 31, 2015. The adjustment from U.S. GAAP to non-GAAP earnings removes the unrealized gains and losses that result from market volatility.

Each of these other reconciling items has been adjusted from U.S. GAAP to arrive at the company's non-GAAP financial measures for the reasons either outlined in the paragraphs above, due to the unique character and magnitude of the reconciling item, or because the item represents a continuation of a reconciling item adjusted from U.S. GAAP in a prior period.

7.   Definition of operating margin and adjusted operating margin

Operating margin is equal to operating income divided by operating revenues. Adjusted operating margin is equal to adjusted operating income divided by net revenues.

8.   Definition of adjusted diluted EPS

Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding.  There is no difference between the calculated earnings per share amounts presented in this earnings release and the calculated earnings per share amounts under the two class method.

9.   Balance sheets and cash flow information excluding CIP

U.S. GAAP condensed consolidating balance sheets and condensed consolidated statements of cash flows reflect the consolidation of CIP. The majority of the company's CIP balances are CLO-related. 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 minimal direct investments in, and management and performance fees generated from, 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. Additionally, 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. Similarly, cash held by CIP is not available for general use by the company, nor is company cash available for general use by its CIP.

By deconsolidating the CIP in the condensed consolidated balance sheet information excluding CIP, the assets, liabilities and equity of the CIP are removed and the company's equity interest in the investment products, accounted for as equity method and available-for-sale investments, are replaced. The company considers this a more representative presentation of the company's financial position, and calculations made therefrom, such as debt-to-equity ratios, are more meaningful excluding these balances.

The condensed consolidated cash flow information excluding CIP present the cash flows of the company separately and before consolidation of CIP, as 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 for the reasons noted.

10.  U.S. GAAP Effective Tax Rate

The effective tax rate on continuing operations increased to 31.0% for the second quarter, from 26.3% for the first quarter 2015 and 25.3% for the second quarter 2014. The impact of the inclusion of non-controlling interests in CIP and CSIP increased our effective tax rate by 1.2% for the second quarter, compared to a decrease of 1.8% on our effective tax rate for the first quarter 2015 and a decrease of 2.8% for the second quarter 2014. Second quarter 2015 included a 2.3% rate increase as a result of tax legislation changes in New York City. 

 

 

Invesco Ltd.

Quarterly Assets Under Management

(in billions)

Q2-15

Q1-15

% Change

Q2-14

Beginning Assets

$798.3

$792.4

0.7

%

$787.3

Long-term inflows

52.1

50.5

3.2

%

42.5

Long-term outflows

(46.2)

(40.2)

14.9

%

(49.4)

Long-term net flows

5.9

10.3

(42.7)

%

(6.9)

Net flows in Invesco PowerShares QQQ fund

(0.3)

(2.6)

(88.5)

%

(3.0)

Net flows in institutional money market funds

(2.6)

(6.0)

(56.7)

%

1.1

Total net flows

3.0

1.7

76.5

%

(8.8)

Market gains and losses/reinvestment

(6.2)

18.2

N/A

19.9

Acquisitions/dispositions, net(f)

(0.7)

(100.0)

%

Foreign currency translation

8.5

(13.3)

N/A

4.0

Ending Assets

$803.6

$798.3

0.7

%

$802.4

Average long-term AUM

$706.1

$685.0

3.1

%

$674.7

Average AUM

$810.9

$795.4

1.9

%

$790.1

Gross revenue yield on AUM(a)

65.6

bps

65.4

bps

65.7

bps

Gross revenue yield on AUM before performance fees(a)

65.2

bps

63.0

bps

65.4

bps

Net revenue yield on AUM(b)

46.2

bps

46.1

bps

45.6

bps

Net revenue yield on AUM before performance fees(b)

45.6

bps

43.5

bps

45.2

bps

 

(in billions)

Total AUM

Active(e)

Passive(e)

March 31, 2015

$798.3

$655.3

$143.0

Long-term inflows

52.1

43.1

9.0

Long-term outflows

(46.2)

(37.7)

(8.5)

Long-term net flows

5.9

5.4

0.5

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

(2.6)

(2.6)

Total net flows

3.0

2.8

0.2

Market gains and losses/reinvestment

(6.2)

(4.6)

(1.6)

Acquisitions/dispositions, net(f)

Foreign currency translation

8.5

8.5

June 30, 2015

$803.6

$662.0

$141.6

Average AUM

$810.9

$666.7

$144.2

Gross revenue yield on AUM(a)

65.6bps

76.6bps

15.3bps

Net revenue yield on AUM(b)

46.2bps

52.9bps

15.3bps

 

By channel: (in billions)

Total

Retail

Institutional

March 31, 2015

$798.3

$540.7

$257.6

Long-term inflows

52.1

34.2

17.9

Long-term outflows

(46.2)

(34.7)

(11.5)

Long-term net flows

5.9

(0.5)

6.4

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

(2.6)

(2.6)

Total net flows

3.0

(0.8)

3.8

Market gains and losses/reinvestment

(6.2)

(6.1)

(0.1)

Acquisitions/dispositions, net(f)

Foreign currency translation

8.5

7.5

1.0

June 30, 2015

$803.6

$541.3

$262.3

See the footnotes immediately following these tables.

Invesco Ltd.

Quarterly Assets Under Management (continued)

By asset class: (in billions)

Total

Equity

Fixed Income

Balanced

Money Market (d)

Alternatives(c)

March 31, 2015

$798.3

$392.8

$184.4

$50.6

$70.2

$100.3

Long-term inflows

52.1

23.8

13.2

6.0

1.0

8.1

Long-term outflows

(46.2)

(26.4)

(8.7)

(3.1)

(1.0)

(7.0)

Long-term net flows

5.9

(2.6)

4.5

2.9

1.1

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

(2.6)

(2.6)

Total net flows

3.0

(2.9)

4.5

2.9

(2.6)

1.1

Market gains and losses/reinvestment

(6.2)

(0.3)

(3.0)

(1.2)

0.3

(2.0)

Acquisitions/dispositions, net(f)

Foreign currency translation

8.5

5.1

1.6

1.3

0.5

June 30, 2015

$803.6

$394.7

$187.5

$53.6

$67.9

$99.9

Average AUM

$810.9

$403.7

$184.7

$53.3

$69.5

$99.7

 

By client domicile: (in billions)

Total

U.S.

Canada

U.K.

Continental Europe

Asia

March 31, 2015

$798.3

$532.6

$24.9

$106.3

$74.2

$60.3

Long-term inflows

52.1

27.4

1.0

4.5

9.7

9.5

Long-term outflows

(46.2)

(24.5)

(1.1)

(4.3)

(8.1)

(8.2)

Long-term net flows

5.9

2.9

(0.1)

0.2

1.6

1.3

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

(2.6)

(3.4)

0.9

(0.2)

0.1

Total net flows

3.0

(0.8)

(0.1)

1.1

1.4

1.4

Market gains and losses/reinvestment

(6.2)

(1.0)

(0.3)

(2.7)

(0.7)

(1.5)

Acquisitions/dispositions, net(f)

Foreign currency translation

8.5

0.4

6.0

2.1

June 30, 2015

$803.6

$530.8

$24.9

$110.7

$77.0

$60.2

See the footnotes immediately following these tables.

 

 

Invesco Ltd.

Year-to-date Assets Under Management

(in billions)

June 30, 2015

June 30, 2014

% Change

Beginning Assets

$792.4

$778.7

1.8

%

Long-term inflows

102.6

92.7

10.7

%

Long-term outflows

(86.4)

(93.1)

(7.2)

%

Long-term net flows

16.2

(0.4)

N/A

Net flows in Invesco PowerShares QQQ fund

(2.9)

(4.3)

(32.6)

%

Net flows in institutional money market funds

(8.6)

(5.0)

72.0

%

Total net flows

4.7

(9.7)

N/A

Market gains and losses/reinvestment

12.0

29.3

(59.0)

%

Acquisitions/dispositions, net(f)

(0.7)

N/A

Foreign currency translation

(4.8)

4.1

N/A

Ending Assets

$803.6

$802.4

0.1

%

Average long-term AUM

$695.5

$667.2

4.2

%

Average AUM

$803.2

$784.9

2.3

%

Gross revenue yield on AUM(a)

65.5

bps

65.6

bps

Gross revenue yield on AUM before performance fees(a)

64.1

bps

64.7

bps

Net revenue yield on AUM(b)

46.2

bps

45.6

bps

Net revenue yield on AUM before performance fees(b)

44.6

bps

44.5

bps

 

(in billions)

Total AUM

Active(e)

Passive(e)

December 31, 2014

$792.4

$651.0

$141.4

Long-term inflows

102.6

83.7

18.9

Long-term outflows

(86.4)

(71.5)

(14.9)

Long-term net flows

16.2

12.2

4.0

Net flows in Invesco PowerShares QQQ fund

(2.9)

(2.9)

Net flows in institutional money market funds

(8.6)

(8.6)

Total net flows

4.7

3.6

1.1

Market gains and losses/reinvestment

12.0

12.2

(0.2)

Acquisitions/dispositions, net(f)

(0.7)

(0.7)

Foreign currency translation

(4.8)

(4.8)

June 30, 2015

$803.6

$662.0

$141.6

Average AUM

$803.2

$659.7

$143.5

Gross revenue yield on AUM(a)

65.5bps

76.7bps

14.3bps

Net revenue yield on AUM(b)

46.2bps

53.1bps

14.3bps

 

By channel: (in billions)

Total

Retail

Institutional

December 31, 2014

$792.4

$532.5

$259.9

Long-term inflows

102.6

74.5

28.1

Long-term outflows

(86.4)

(67.5)

(18.9)

Long-term net flows

16.2

7.0

9.2

Net flows in Invesco PowerShares QQQ fund

(2.9)

(2.9)

Net flows in institutional money market funds

(8.6)

(8.6)

Total net flows

4.7

4.1

0.6

Market gains and losses/reinvestment

12.0

8.8

3.2

Acquisitions/dispositions, net(f)

(0.7)

(0.7)

Foreign currency translation

(4.8)

(3.4)

(1.4)

June 30, 2015

$803.6

$541.3

$262.3

See the footnotes immediately following these tables.

 

Invesco Ltd.

Year-to-date Assets Under Management (continued)

By asset class: (in billions)

Total

Equity

Fixed Income

Balanced

Money

Market (d)

Alternatives(c)

December 31, 2014

$792.4

$384.4

$181.6

$50.6

$76.5

$99.3

Long-term inflows

102.6

48.3

24.0

10.1

1.7

18.5

Long-term outflows

(86.4)

(47.9)

(15.9)

(6.3)

(1.9)

(14.4)

Long-term net flows

16.2

0.4

8.1

3.8

(0.2)

4.1

Net flows in Invesco PowerShares QQQ fund

(2.9)

(2.9)

Net flows in institutional money market funds

(8.6)

(8.6)

Total net flows

4.7

(2.5)

8.1

3.8

(8.8)

4.1

Market gains and losses/reinvestment

12.0

14.6

(1.4)

0.7

0.2

(2.1)

Acquisitions/dispositions, net(f)

(0.7)

(0.7)

Foreign currency translation

(4.8)

(1.8)

(0.8)

(1.5)

(0.7)

June 30, 2015

$803.6

$394.7

$187.5

$53.6

$67.9

$99.9

Average AUM

$803.2

$395.9

$183.8

$51.5

$72.3

$99.7

 

By client domicile: (in billions)

Total

U.S.

Canada

U.K.

Continental Europe

Asia

December 31, 2014

$792.4

$532.1

$25.8

$105.1

$71.1

$58.3

Long-term inflows

102.6

53.5

2.0

9.4

21.9

15.8

Long-term outflows

(86.4)

(46.5)

(2.1)

(8.6)

(15.3)

(13.9)

Long-term net flows

16.2

7.0

(0.1)

0.8

6.6

1.9

Net flows in Invesco PowerShares QQQ fund

(2.9)

(2.9)

Net flows in institutional money market funds

(8.6)

(9.0)

(0.1)

0.8

(0.2)

(0.1)

Total net flows

4.7

(4.9)

(0.2)

1.6

6.4

1.8

Market gains and losses/reinvestment

12.0

4.3

1.2

2.9

3.0

0.6

Acquisitions/dispositions, net(f)

(0.7)

(0.7)

Foreign currency translation

(4.8)

(1.9)

1.1

(3.5)

(0.5)

June 30, 2015

$803.6

$530.8

$24.9

$110.7

$77.0

$60.2

See the footnotes immediately following these tables.

 

 

Invesco Ltd.

Quarterly Assets Under Management - Passive(e)

(in billions)

Q2-15

Q1-15

% Change

Q2-14

Beginning Assets

$143.0

$141.4

1.1

%

$142.9

Long-term inflows

9.0

9.9

(9.1)

%

6.4

Long-term outflows

(8.5)

(6.4)

32.8

%

(5.3)

Long-term net flows

0.5

3.5

(85.7)

%

1.1

Net flows in Invesco PowerShares QQQ fund

(0.3)

(2.6)

(88.5)

%

(3.0)

Net flows in institutional money market funds

N/A

Total net flows

0.2

0.9

(77.8)

%

(1.9)

Market gains and losses/reinvestment

(1.6)

1.4

N/A

4.8

Acquisitions/dispositions, net(f)

(0.7)

(100.0)

%

Foreign currency translation

N/A

Ending Assets

$141.6

$143.0

(1.0)

%

$145.8

Average long-term AUM

$104.9

$103.2

1.6

%

$99.8

Average AUM

$144.2

$142.7

1.1

%

$141.9

Gross revenue yield on AUM(a)

15.3

bps

13.3

bps

13.2

bps

Gross revenue yield on AUM before performance fees(a)

15.3

bps

13.3

bps

13.2

bps

Net revenue yield on AUM(b)

15.3

bps

13.3

bps

13.2

bps

Net revenue yield on AUM before performance fees(b)

15.3

bps

13.3

bps

13.2

bps

           

By channel: (in billions)

Total

Retail

Institutional

March 31, 2015

$143.0

$120.8

$22.2

Long-term inflows

9.0

7.6

1.4

Long-term outflows

(8.5)

(7.6)

(0.9)

Long-term net flows

0.5

0.5

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

Total net flows

0.2

(0.3)

0.5

Market gains and losses/reinvestment

(1.6)

(0.8)

(0.8)

Acquisitions/dispositions, net(f)

Foreign currency translation

June 30, 2015

$141.6

$119.7

$21.9

           

By asset class: (in billions)

Total

Equity

Fixed Income

Balanced

Money Market

Alternatives(c)

March 31, 2015

$143.0

$90.0

$42.0

$—

$—

$11.0

Long-term inflows

9.0

6.3

1.6

1.1

Long-term outflows

(8.5)

(6.2)

(1.0)

(1.3)

Long-term net flows

0.5

0.1

0.6

(0.2)

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

Total net flows

0.2

(0.2)

0.6

(0.2)

Market gains and losses/reinvestment

(1.6)

(0.4)

(1.4)

0.2

Acquisitions/dispositions, net(f)

Foreign currency translation

June 30, 2015

$141.6

$89.4

$41.2

$—

$—

$11.0

Average AUM

$144.2

$90.9

$42.1

$—

$—

$11.2

See the footnotes immediately following these tables.

 

Invesco Ltd.

Quarterly Assets Under Management - Passive(e) (continued)

By client domicile: (in billions)

Total

U.S.

Canada

U.K.

Continental Europe

Asia

March 31, 2015

$143.0

$139.0

$0.3

$—

$1.8

$1.9

Long-term inflows

9.0

8.1

0.1

0.1

0.7

Long-term outflows

(8.5)

(7.7)

(0.1)

(0.7)

Long-term net flows

0.5

0.4

0.1

Net flows in Invesco PowerShares QQQ fund

(0.3)

(0.3)

Net flows in institutional money market funds

Total net flows

0.2

0.1

0.1

Market gains and losses/reinvestment

(1.6)

(1.7)

0.1

Acquisitions/dispositions, net(f)

Foreign currency translation

June 30, 2015

$141.6

$137.4

$0.4

$—

$1.8

$2.0

See the footnotes immediately following these tables.

 

 

Invesco Ltd.

Year-to-date Assets Under Management - Passive(e)

(in billions)

June 30, 2015

June 30, 2014

% Change

Beginning Assets

$141.4

$139.7

1.2

%

Long-term inflows

18.9

15.0

26.0

%

Long-term outflows

(14.9)

(10.6)

40.6

%

Long-term net flows

4.0

4.4

(9.1)

%

Net flows in Invesco PowerShares QQQ fund

(2.9)

(4.3)

(32.6)

%

Net flows in institutional money market funds

N/A

Total net flows

1.1

0.1

N/A

Market gains and losses/reinvestment

(0.2)

6.0

(103.3)

%

Acquisitions/dispositions, net(f)

(0.7)

N/A

Foreign currency translation

N/A

Ending Assets

$141.6

$145.8

(2.9)

%

Average long-term AUM

$104.1

$97.5

6.8

%

Average AUM

$143.5

$141.3

1.6

%

Gross revenue yield on AUM(a)

14.3

bps

13.0

bps

Gross revenue yield on AUM before performance fees(a)

14.3

bps

13.0

bps

Net revenue yield on AUM(b)

14.3

bps

13.0

bps

Net revenue yield on AUM before performance fees(b)

14.3

bps

13.0

bps

           

By channel: (in billions)

Total

Retail

Institutional

December 31, 2014

$141.4

$119.7

$21.7

Long-term inflows

18.9

16.5

2.4

Long-term outflows

(14.9)

(13.4)

(1.5)

Long-term net flows

4.0

3.1

0.9

Net flows in Invesco PowerShares QQQ fund

(2.9)

(2.9)

Net flows in institutional money market funds