• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Guaranteed Paid Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

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

Continued strong, long-term investment performance

Adjusted operating margin of 41.4%

Adjusted diluted EPS of $0.61

Total shareholder return of capital of $292 million during the quarter


News provided by

Invesco Ltd.

29 Oct, 2015, 06:58 ET

Share this article

Share toX

Share this article

Share toX

Invesco Ltd. logo
Invesco Ltd. logo

ATLANTA, Oct. 29, 2015 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today reported financial results for the three months ended September 30, 2015.

"Invesco continued to deliver strong, long-term investment performance to clients in spite of the volatile markets we saw during the third quarter," said Martin L. Flanagan, president and CEO.  "Our continued focus on investment excellence, meeting the needs of our clients and running a disciplined business helped us achieve an adjusted operating margin of 41.4%.  We also returned $292 million to shareholders during the third quarter through dividends and buybacks."


Q3-15


Q2-15


Q3-15 vs.
Q2-15


Q3-14


Q3-15 vs.
Q3-14


Adjusted Financial Measures(1)











Net revenues

$903.0

m


$936.6

m


(3.6)

%


$913.7

m


(1.2)

%


Operating income

$373.4

m


$390.2

m


(4.3)

%


$381.9

m


(2.2)

%


Operating margin

41.4

%


41.7

%




41.8

%




Net income attributable to Invesco Ltd.

$261.4

m


$271.4

m


(3.7)

%


$278.2

m


(6.0)

%


Diluted EPS

$0.61



$0.63



(3.2)

%


$0.64



(4.7)

%













U.S. GAAP Financial Measures(2)











Operating revenues

$1,273.5

m


$1,318.1

m


(3.4)

%


$1,311.0

m


(2.9)

%


Operating income

$352.7

m


$364.0

m


(3.1)

%


$329.6

m


7.0

%


Operating margin

27.7

%


27.6

%




25.1

%




Net income attributable to Invesco Ltd.

$249.3

m


$257.3

m


(3.1)

%


$256.0

m


(2.6)

%


Diluted EPS

$0.58



$0.60



(3.3)

%


$0.59



(1.7)

%













Assets Under Management











Ending AUM

$755.8

bn


$803.6

bn


(5.9)

%


$789.6

bn


(4.3)

%


Average AUM

$788.9

bn


$810.9

bn


(2.7)

%


$801.7

bn


(1.6)

%



(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 September 30, 2015, were $755.8 billion (June 30, 2015: $803.6 billion), a decrease of $47.8 billion during the third quarter. Total net outflows were $6.3 billion for the third quarter, as detailed below:

Summary of net flows (in billions)


Q3-15


Q2-15


Q3-14

Active


($1.6)



$5.4



$6.0


Passive


(2.3)



0.5



—


Long-term net flows


(3.9)



5.9



6.0


Invesco PowerShares QQQ


(0.9)



(0.3)



(3.2)


Money market


(1.5)



(2.6)



(0.8)


Total net flows


($6.3)



$3.0



$2.0









Net market losses led to a $35.6 billion decrease in AUM during the third quarter, compared to a $6.2 billion decrease in the second quarter 2015. Foreign exchange rate movements led to a $5.9 billion decrease in AUM during the third quarter, compared to a $8.5 billion increase in the second quarter 2015. Average AUM during the third quarter were $788.9 billion, compared to $810.9 billion for the second quarter 2015, a decrease of 2.7%. 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 third quarter 2015 non-GAAP financial information, as compared to the second 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 decreased by $33.6 million (3.6%) to $903.0 million in the third quarter, from $936.6 million in the second quarter 2015. The change was primarily due to decreased investment management fees. Foreign exchange rate changes decreased third quarter net revenues by $1.4 million compared to the second quarter 2015.

Investment management fees, as adjusted, decreased $45.2 million (4.2%) to $1,038.1 million in the third quarter, from $1,083.3 million in the second quarter 2015. The decrease reflects the lower average AUM during the third quarter compared to the second quarter 2015. Foreign exchange rate changes decreased third quarter management fees by $1.8 million when compared to second quarter 2015.

Service and distribution fees, as adjusted, decreased $4.8 million (2.2%) to $214.8 million in the third quarter, from $219.6 million in the second quarter 2015.  The decrease in service and distribution fees also reflects the AUM changes in the third quarter.  Foreign exchange rate changes decreased third quarter service and distribution fees by $0.5 million when compared to second quarter 2015.

Performance fees, as adjusted, were $17.6 million in the third quarter, compared to $13.1 million in the second quarter 2015. The third quarter performance fees were generated from a variety of investment capabilities including $9.4 million generated from UK equities. Foreign exchange rate changes decreased third quarter performance fees by $0.1 million when compared to second quarter 2015.

Other revenues, as adjusted, decreased by $10.3 million (27.2%) to $27.6 million in the third quarter, compared to $37.9 million in the second quarter 2015, primarily due to decreased transaction fees from real estate and UIT activities. Foreign exchange rate changes decreased other revenues by $0.1 million in the third quarter when compared to the second quarter 2015.

Third-party distribution, service and advisory expenses, as adjusted, decreased by $22.2 million (5.3%) to $395.1 million in the third quarter from $417.3 million in the second quarter 2015, consistent with the revenues derived from the related retail AUM. Foreign exchange rate changes decreased third-party distribution, service and advisory expenses by $1.1 million in the third quarter when compared to the second quarter 2015.

Total operating expenses, as adjusted, decreased by $16.8 million (3.1%) to $529.6 million in the third quarter from $546.4 million in the second quarter 2015. Foreign exchange rate changes decreased third quarter operating expenses by $1.6 million when compared to the second quarter 2015.

Employee compensation expenses, as adjusted, decreased by $4.5 million (1.3%) to $346.9 million in the third quarter, from $351.4 million in the second quarter 2015.  The third quarter decline reflects a reduction in variable compensation.  Foreign exchange rate changes decreased third quarter employee compensation expenses by $0.9 million when compared to the second quarter 2015.

Marketing expenses, as adjusted, decreased by $4.9 million (16.0%) to $25.8 million in the third quarter, from $30.7 million in the second quarter 2015. Marketing expenditures on advertising, literature, travel and client events decreased in the third quarter compared to the prior quarter. Foreign exchange rate changes decreased third quarter marketing expenses by $0.1 million when compared to the second quarter 2015.

Property, office and technology expenses, as adjusted, decreased $2.3 million (2.8%) to $79.9 million in the third quarter, from $82.2 million in the second quarter 2015. The decrease reflects reduced property related expenses in the third quarter together with reduced outsourced administration costs in EMEA compared to the second quarter. Foreign exchange rate changes decreased third quarter property, office and technology expenses by $0.2 million when compared to the second quarter 2015.

General and administrative expenses, as adjusted, decreased $5.1 million (6.2%) to $77.0 million in the third quarter, from $82.1 million in the second quarter 2015.  The second quarter included additional fund and regulatory related expenses and additional professional services expenses that did not repeat in the third quarter. Foreign exchange rate changes decreased third quarter general and administrative expenses by $0.4 million when compared to the second quarter 2015.

Non-operating other income and expenses, as adjusted, included equity in earnings from investments of $4.2 million in the third quarter, compared to $2.0 million in the second quarter 2015. Other gains and losses, net in the third quarter were a loss of $6.6 million compared to a second quarter 2015 gain of $2.1 million.  The third quarter included $5.6 million in unrealized mark-to-market losses on trading investments.  Non-operating other income and expenses, as adjusted, also included interest income of  $4.2 million and interest expense of $20.4 million in the third quarter, compared to $4.0 million and $19.6 million, respectively in the second quarter 2015. Separately, other income of consolidated sponsored investment products (CSIP) was a loss of $3.6 million in the third quarter, of which $3.2 million is attributable to noncontrolling interests. The second quarter 2015 included a CSIP gain of $5.1 million, of which $2.4 million was attributable to noncontrolling interests.

The adjusted effective tax rate decreased to 26.5% for the third quarter, from 28.7% for the second quarter 2015.  The second quarter included a 2.2% rate increase as a result of New York City tax legislation enacted during the second quarter 2015.

U.S. GAAP Earnings

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

Operating revenues decreased 3.4% to $1,273.5 million in the third quarter, from $1,318.1 million in the second quarter 2015. Operating expenses decreased by 3.5% to $920.8 million in the third quarter, from $954.1 million in the second quarter 2015.

In the first quarter of 2015, the company acquired certain investment management contracts from a third party for a purchase price comprised of contingent consideration payable in future periods.  During the third quarter of 2015, changes in the fair value of the contingent consideration liability generated a gain of $18.4 million, which was recorded in other gains and losses, net.

The inclusion of consolidated investment products in the U.S GAAP earnings resulted in a reduction of $13.2 million in net income attributable to Invesco Ltd. in the third quarter, compared to a $0.4 million increase in the second quarter 2015.

The effective tax rate on continuing operations decreased to 29.4% for the third quarter, from 31.0% for the second 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)



September 30,
2015


December 31,
2014


September 30,
2015


December 31,
2014

in millions









Cash and cash equivalents


$1,590.7



$1,514.2



$1,590.7



$1,514.2


Investments of CIP


—



—



6,119.9



5,762.8


Total assets(1)


$18,209.4



$14,233.1



$24,962.2



$20,462.5











Long-term debt


1,689.3



1,589.3



1,689.3



1,589.3


Debt of CIP


—



—



5,669.7



5,149.6


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


1,689.3



1,589.3



7,359.0



6,738.9











Total liabilities(1)


$9,922.2



$5,746.7



$15,930.0



$11,177.2











Total permanent equity(1)


$8,110.8



$8,320.9



$8,855.8



$9,119.8











Debt/Equity % (1) (2)


20.8

%


19.1

%


83.1

%


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 September 30, 2015, the company's cash and cash equivalents were $1,590.7 million, with long-term debt of $1,689.3 million. The credit facility balance was $99.5 million at September 30, 2015, compared to $7.9 million at June 30, 2015 and zero at December 31, 2014.

On October 14, 2015, the company completed the issuance of senior notes with aggregate principal amounts of $500 million at 3.75% due January 15, 2026. The proceeds were used, in part, to repay the outstanding balance on the credit facility at that date.  Separately, on August 7, 2015, the company amended the existing $1.25 billion credit facility to extend its maturity to August 7, 2020.

Dividends paid in the third quarter were $116.2 million. Today the company is announcing a third-quarter cash dividend of 27.0 cents. The dividend is payable on December 7, 2015, to shareholders of record at the close of business on November 17, 2015, with an ex-dividend date of November 13, 2015.

During the third quarter the company repurchased $175.9 million of its common shares on the open market, representing 5.0 million shares at a weighted average share price of $35.00. This brings year-to-date repurchases to $334.0 million representing 9.0 million shares.

Headcount

As of September 30, 2015, the company had 6,430 employees, compared to 6,431 employees as of June 30, 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, October 29, 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, November 12, 2015 at 5:00 p.m. ET by calling 1-866-513-4385 for U.S. and Canadian callers or 1-203-369-1984 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)



Q3-15


Q2-15


% Change


Q3-14


% Change

Adjusted revenues:










Investment management fees

$1,038.1



$1,083.3



(4.2)

%


$1,071.0



(3.1)

%

Service and distribution fees

214.8



219.6



(2.2)

%


222.1



(3.3)

%

Performance fees

17.6



13.1



34.4

%


10.3



70.9

%

Other

27.6



37.9



(27.2)

%


34.5



(20.0)

%

Third-party distribution, service and advisory

(395.1)



(417.3)



(5.3)

%


(424.2)



(6.9)

%

Net revenues

903.0



936.6



(3.6)

%


913.7



(1.2)

%

Adjusted operating expenses:










Employee compensation

346.9



351.4



(1.3)

%


349.5



(0.7)

%

Marketing

25.8



30.7



(16.0)

%


27.4



(5.8)

%

Property, office and technology

79.9



82.2



(2.8)

%


77.3



3.4

%

General and administrative

77.0



82.1



(6.2)

%


77.6



(0.8)

%

Total adjusted operating expenses

529.6



546.4



(3.1)

%


531.8



(0.4)

%

Adjusted operating income

373.4



390.2



(4.3)

%


381.9



(2.2)

%

Adjusted other income/(expense):










Equity in earnings of unconsolidated affiliates

4.2



2.0



110.0

%


7.4



(43.2)

%

Interest and dividend income

4.2



4.0



5.0

%


3.2



31.3

%

Interest expense

(20.4)



(19.6)



4.1

%


(18.1)



12.7

%

Other gains and losses, net

(6.6)



2.1



N/A


1.9



N/A

Other income/(expense) of CSIP, net

(3.6)



5.1



N/A


7.4



N/A

Adjusted income before income taxes

351.2



383.8



(8.5)

%


383.7



(8.5)

%

Adjusted income tax provision

(93.0)



(110.0)



(15.5)

%


(102.2)



(9.0)

%

Adjusted net income

258.2



273.8



(5.7)

%


281.5



(8.3)

%

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

3.2



(2.4)



N/A


(3.3)



N/A

Adjusted net income attributable to Invesco Ltd.

$261.4



$271.4



(3.7)

%


$278.2



(6.0)

%











Adjusted diluted EPS

$0.61



$0.63



(3.2)

%


$0.64



(4.7)

%

Average diluted shares outstanding

429.1



432.2



(0.7)

%


434.8



(1.3)

%











Ending headcount

6,430



6,431



—

%


6,155



4.5

%

Ending AUM (in billions)

$755.8



$803.6



(5.9)

%


$789.6



(4.3)

%

Average AUM (in billions)

$788.9



$810.9



(2.7)

%


$801.7



(1.6)

%

         

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

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



Q3-15


Q2-15


% Change


Q3-14


% Change

Operating revenues:










Investment management fees

$1,016.9



$1,055.7



(3.7)

%


$1,047.3



(2.9)

%

Service and distribution fees

214.8



219.6



(2.2)

%


222.1



(3.3)

%

Performance fees

15.6



6.7



132.8

%


8.2



90.2

%

Other

26.2



36.1



(27.4)

%


33.4



(21.6)

%

Total operating revenues

1,273.5



1,318.1



(3.4)

%


1,311.0



(2.9)

%

Operating expenses:










Employee compensation

337.6



347.2



(2.8)

%


343.8



(1.8)

%

Third-party distribution, service and advisory

392.3



413.3



(5.1)

%


420.2



(6.6)

%

Marketing

24.9



29.7



(16.2)

%


26.6



(6.4)

%

Property, office and technology

79.0



74.8



5.6

%


76.4



3.4

%

General and administrative

87.0



89.1



(2.4)

%


114.4



(24.0)

%

Total operating expenses

920.8



954.1



(3.5)

%


981.4



(6.2)

%

Operating income

352.7



364.0



(3.1)

%


329.6



7.0

%

Other income/(expense):










Equity in earnings of unconsolidated affiliates

8.2



12.0



(31.7)

%


10.9



(24.8)

%

Interest and dividend income

2.4



2.6



(7.7)

%


2.6



(7.7)

%

Interest expense

(20.4)



(19.6)



4.1

%


(18.1)



12.7

%

Other gains and losses, net

0.9



(8.8)



N/A


(1.3)



N/A

Other income/(expense) of CSIP, net

(3.6)



5.1



N/A


7.4



N/A

Consolidated investment products (CIP):










 Interest income of CIP

64.7



65.1



(0.6)

%


53.4



21.2

%

 Interest expense of CIP

(45.9)



(47.3)



(3.0)

%


(37.5)



22.4

%

 Other gains/(losses) of CIP, net

(17.3)



(19.7)



(12.2)

%


0.1



N/A

Income from continuing operations before income taxes

341.7



353.4



(3.3)

%


347.1



(1.6)

%

Income tax provision

(100.4)



(109.4)



(8.2)

%


(94.9)



5.8

%

Income from continuing operations, net of taxes

241.3



244.0



(1.1)

%


252.2



(4.3)

%

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

—



—



N/A


(0.6)



N/A

Net income

241.3



244.0



(1.1)

%


251.6



(4.1)

%

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

entities

8.0



13.3



(39.8)

%


4.4



81.8

%

Net income attributable to Invesco Ltd.

$249.3



$257.3



(3.1)

%


$256.0



(2.6)

%

Earnings per share:










---Basic EPS from continuing operations

$0.58



$0.60



(3.3)

%


$0.59



(1.7)

%

---Basic EPS from discontinued operations

$—



$—



N/A


$—



N/A

---Total basic

$0.58



$0.60



(3.3)

%


$0.59



(1.7)

%











---Diluted EPS from continuing operations

$0.58



$0.60



(3.3)

%


$0.59



(1.7)

%

---Diluted EPS from discontinued operations

$—



$—



N/A


$—



N/A

---Total diluted

$0.58



$0.60



(3.3)

%


$0.59



(1.7)

%











Average shares outstanding:










---basic

428.8



431.9



(0.7)

%


434.3



(1.3)

%

---diluted

429.1



432.2



(0.7)

%


434.8



(1.3)

%

         

Invesco Ltd.

U.S. GAAP Condensed Consolidated Income Statements

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



Nine months ended September 30,




2015


2014


% Change

Operating revenues:






Investment management fees

$3,074.0



$3,044.6



1.0

%

Service and distribution fees

647.8



675.4



(4.1)

%

Performance fees

69.1



44.3



56.0

%

Other

92.3



106.1



(13.0)

%

Total operating revenues

3,883.2



3,870.4



0.3

%

Operating expenses:






Employee compensation

1,045.7



1,048.8



(0.3)

%

Third-party distribution, service and advisory

1,204.7



1,236.2



(2.5)

%

Marketing

81.3



80.2



1.4

%

Property, office and technology

230.7



264.4



(12.7)

%

General and administrative

266.0



312.1



(14.8)

%

Total operating expenses

2,828.4



2,941.7



(3.9)

%

Operating income

1,054.8



928.7



13.6

%

Other income/(expense):






Equity in earnings of unconsolidated affiliates

32.0



26.4



21.2

%

Interest and dividend income

7.5



8.6



(12.8)

%

Interest expense

(58.7)



(55.0)



6.7

%

Other gains and losses, net

(5.2)



21.5



N/A

Other income/(expense) of CSIP, net

10.9



23.3



(53.2)

%

Consolidated investment products (CIP):






 Interest income of CIP

190.0



149.7



26.9

%

 Interest expense of CIP

(138.3)



(98.1)



41.0

%

 Other gains/(losses) of CIP, net

(12.6)



63.4



N/A

Income from continuing operations before income taxes

1,080.4



1,068.5



1.1

%

Income tax provision

(311.1)



(290.9)



6.9

%

Income from continuing operations, net of taxes

769.3



777.6



(1.1)

%

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

—



(2.4)



N/A

Net income

769.3



775.2



(0.8)

%

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

(3.1)



(56.9)



(94.6)

%

Net income attributable to Invesco Ltd.

$766.2



$718.3



6.7

%

Earnings per share:






---Basic EPS from continuing operations

$1.78



$1.65



7.9

%

---Basic EPS from discontinued operations

$—



($0.01)



N/A

---Total basic

$1.78



$1.65



7.9

%







---Diluted EPS from continuing operations

$1.78



$1.65



7.9

%

---Diluted EPS from discontinued operations

$—



($0.01)



N/A

---Total diluted

$1.78



$1.65



7.9

%







Average shares outstanding:






---basic

430.9



435.6



(1.1)

%

---diluted

431.3



436.2



(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 September 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


$1,016.9



$13.7



$—



$—



$—



$7.5



$—



$1,038.1


Service and distribution fees


214.8



—



—



—



—



—



—



214.8


Performance fees


15.6



—



—



—



—



2.0



—



17.6


Other


26.2



1.4



—



—



—



—



—



27.6


Third-party distribution, service and advisory


—



(2.8)



(392.3)



—



—



—



—



(395.1)


Total operating revenues reconciled to net revenues


1,273.5



12.3



(392.3)



—



—



9.5



—



903.0


Operating expenses:

















Employee compensation


337.6



4.9



—



—



4.4



—



—



346.9


Third-party distribution, service and advisory


392.3



—



(392.3)



—



—



—



—



—


Marketing


24.9



0.9



—



—



—



—



—



25.8


Property, office and technology


79.0



0.9



—



—



—



—



—



79.9


General and administrative


87.0



1.4



—



(2.7)



—



(8.7)



—



77.0


Total operating expenses


920.8



8.1



(392.3)



(2.7)



4.4



(8.7)



—



529.6


Operating income reconciled to adjusted operating income


352.7



4.2



—



2.7



(4.4)



18.2



—



373.4


Other income/(expense):

















Equity in earnings of unconsolidated affiliates


8.2



(3.8)



—



—



—



(0.2)



—



4.2


Interest and dividend income


2.4



0.6



—



—



(0.3)



1.5



—



4.2


Interest expense


(20.4)



—



—



—



—



—



—



(20.4)


Other gains and losses, net


0.9



0.4



—



(18.4)



12.1



—



(1.6)



(6.6)


Other income/(expense) of CSIP, net


(3.6)















(3.6)


CIP:

















Interest income of CIP


64.7



—



—



—



—



(64.7)



—



—


Interest expense of CIP


(45.9)



—



—



—



—



45.9



—



—


Other gains/(losses) of CIP, net


(17.3)



—



—



—



—



17.3



—



—


Income from continuing operations before income taxes


341.7



1.4



—



(15.7)



7.4



18.0



(1.6)



351.2


Income tax provision


(100.4)



(1.4)



—



11.4



(2.6)



—



—



(93.0)


Income from continuing operations, net of income taxes


241.3



—



—



(4.3)



4.8



18.0



(1.6)



258.2


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


—



—



—



—



—



—



—



—


Net income


241.3



—



—



(4.3)



4.8



18.0



(1.6)



258.2


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


8.0



—



—



—



—



(4.8)



—



3.2


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


$249.3



$—



$—



($4.3)



$4.8



$13.2



($1.6)



$261.4



















Operating margin


27.7

%








Adjusted operating margin


41.4

%


















Average diluted shares outstanding


429.1







Average diluted shares outstanding


429.1















Diluted EPS from continuing operations


$0.58









Adjusted diluted EPS


$0.61


Diluted EPS from discontinued operations


$—
















Diluted EPS


$0.58


































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, 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 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 September 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


Other
reconciling
items


Non-
GAAP
basis

Operating revenues:

















Investment management fees


$1,047.3



$17.1



$—



$—



$—



$6.6



$—



$1,071.0


Service and distribution fees


222.1



—



—



—



—



—



—



222.1


Performance fees


8.2



—



—



—



—



2.1



—



10.3


Other


33.4



1.2



—



—



—



(0.1)



—



34.5


Third-party distribution, service and advisory


—



(4.0)



(420.2)



—



—



—



—



(424.2)


Total operating revenues reconciled to net revenues


1,311.0



14.3



(420.2)



—



—



8.6



—



913.7


Operating expenses:

















Employee compensation


343.8



5.9



—



—



(0.2)



—



—



349.5


Third-party distribution, service and advisory


420.2



—



(420.2)



—



—



—



—



—


Marketing


26.6



0.8



—



—



—



—



—



27.4


Property, office and technology


76.4



0.9



—



—



—



—



—



77.3


General and administrative


114.4



1.4



—



(2.7)



—



(11.3)



(24.2)



77.6


Total operating expenses


981.4



9.0



(420.2)



(2.7)



(0.2)



(11.3)



(24.2)



531.8


Operating income reconciled to adjusted operating income


329.6



5.3



—



2.7



0.2



19.9



24.2



381.9


Other income/(expense):

















Equity in earnings of unconsolidated affiliates


10.9



(4.2)



—



—



—



0.7



—



7.4


Interest and dividend income


2.6



0.9



—



—



(1.0)



0.7



—



3.2


Interest expense


(18.1)



—



—



—



—



—



—



(18.1)


Other gains and losses, net


(1.3)



—



—



—



3.2



—



—



1.9


Other income/(expense) of CSIP, net


7.4



—



—



—



—



—



—



7.4


CIP:

















Interest income of CIP


53.4



—



—



—



—



(53.4)



—



—


Interest expense of CIP


(37.5)



—



—



—



—



37.5



—



—


Other gains/(losses) of CIP, net


0.1



—



—



—



—



(0.1)



—



—


Income from continuing operations before income taxes


347.1



2.0



—



2.7



2.4



5.3



24.2



383.7


Income tax provision


(94.9)



(2.0)



—



5.0



(1.3)



—



(9.0)



(102.2)


Income from continuing operations, net of taxes


252.2



—



—



7.7



1.1



5.3



15.2



281.5


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


(0.6)



—



—



0.6



—



—



—



—


Net income


251.6



—



—



8.3



1.1



5.3



15.2



281.5


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


4.4



—



—



—



—



(7.7)



—



(3.3)


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


$256.0



$—



$—



$8.3



$1.1



($2.4)



$15.2



$278.2



















Operating margin


25.1

%








Adjusted operating margin


41.8

%


















Average diluted shares outstanding


434.8







Average diluted shares outstanding


434.8



















Diluted EPS from continuing operations


$0.59









Adjusted diluted EPS


$0.64


Diluted EPS from discontinued operations


$—
















Diluted EPS


$0.59

























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)



September 30, 2015


December 31, 2014

ADJUSTED ASSETS




Cash and cash equivalents

$1,590.7



$1,514.2


Unsettled fund receivables

979.8



732.4


Accounts receivable

533.4



549.7


Investments

1,024.9



980.3


Assets of consolidated sponsored investment products (CSIP)

325.5



305.8


Assets held for policyholders

5,500.5



1,697.9


Prepaid assets

126.2



132.1


Other assets

85.6



92.0


Property, equipment and software, net

415.9



402.6


Intangible assets, net

1,357.3



1,246.7


Goodwill

6,269.6



6,579.4


Total adjusted assets

$18,209.4



$14,233.1






ADJUSTED LIABILITIES




Accrued compensation and benefits

$571.2



$667.3


Accounts payable and accrued expenses

882.4



757.3


Policyholder payables

5,500.5



1,697.9


Unsettled fund payables

962.5



730.1


Long-term debt

1,689.3



1,589.3


Deferred tax liabilities, net

316.3



304.8


Total adjusted liabilities

9,922.2



5,746.7






ADJUSTED TEMPORARY EQUITY




Redeemable noncontrolling interests in CSIP

176.4



165.5


ADJUSTED PERMANENT EQUITY




Equity attributable to Invesco Ltd.:




Common shares

98.1



98.1


Additional paid-in-capital

6,166.2



6,133.6


Treasury shares

(2,194.7)



(1,898.1)


Retained earnings

4,352.1



3,905.7


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

(329.0)



69.0


Total adjusted equity attributable to Invesco Ltd.

8,092.7



8,308.3


Adjusted equity attributable to nonredeemable noncontrolling interests in
consolidated entities

18.1



12.6


Total adjusted permanent equity

8,110.8



8,320.9


Total adjusted liabilities, temporary and permanent equity

$18,209.4



$14,233.1


         

Invesco Ltd.

U.S. GAAP Condensed Consolidated Balance Sheets

(Unaudited, in millions)



September 30, 2015


December 31, 2014

ASSETS




Cash and cash equivalents

$1,590.7



$1,514.2


Unsettled fund receivables

979.8



732.4


Accounts receivable

529.2



545.9


Investments

938.9



885.4


Assets of consolidated sponsored investment products (CSIP)

325.5



305.8


Assets of consolidated investment products (CIP):




Cash and cash equivalents of CIP

587.5



404.0


Accounts receivable of CIP

135.6



161.3


Investments of CIP

6,119.9



5,762.8


Assets held for policyholders

5,500.5



1,697.9


Prepaid assets

126.2



132.1


Other assets

85.6



92.0


Property, equipment and software, net

415.9



402.6


Intangible assets, net

1,357.3



1,246.7


Goodwill

6,269.6



6,579.4


Total assets

$24,962.2



$20,462.5


LIABILITIES




Accrued compensation and benefits

$571.2



$667.3


Accounts payable and accrued expenses

882.4



757.3


Liabilities of CIP:




Debt of CIP

5,669.7



5,149.6


Other liabilities of CIP

338.1



280.9


Policyholder payables

5,500.5



1,697.9


Unsettled fund payables

962.5



730.1


Long-term debt

1,689.3



1,589.3


Deferred tax liabilities, net

316.3



304.8


Total liabilities

15,930.0



11,177.2


TEMPORARY EQUITY




Redeemable noncontrolling interests in CSIP

176.4



165.5


PERMANENT EQUITY




Equity attributable to Invesco Ltd.:




Common shares

98.1



98.1


Additional paid-in-capital

6,166.2



6,133.6


Treasury shares

(2,194.7)



(1,898.1)


Retained earnings

4,351.4



3,926.0


Retained earnings appropriated for investors in CIP

—



17.6


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

(328.3)



48.8


Total equity attributable to Invesco Ltd.

8,092.7



8,326.0


Equity attributable to nonredeemable noncontrolling interests in consolidated
entities

763.1



793.8


Total permanent equity

8,855.8



9,119.8


Total liabilities, temporary and permanent equity

$24,962.2



$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)



September 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

$1,590.7



$—



$1,590.7



$1,514.2



$—



$1,514.2


Unsettled fund receivables

979.8



—



979.8



732.4



—



732.4


Accounts receivable

533.4



(4.2)



529.2



549.7



(3.8)



545.9


Investments

1,024.9



(86.0)



938.9



980.3



(94.9)



885.4


Assets of CSIP

325.5



—



325.5



305.8



—



305.8


Assets of CIP:












Cash and cash equivalents of CIP

—



587.5



587.5



—



404.0



404.0


Accounts receivable of CIP

—



135.6



135.6



—



161.3



161.3


Investments of CIP

—



6,119.9



6,119.9



—



5,762.8



5,762.8


Assets held for policyholders

5,500.5



—



5,500.5



1,697.9



—



1,697.9


Prepaid assets

126.2



—



126.2



132.1



—



132.1


Other assets

85.6



—



85.6



92.0



—



92.0


Property, equipment and software, net

415.9



—



415.9



402.6



—



402.6


Intangible assets, net

1,357.3



—



1,357.3



1,246.7



—



1,246.7


Goodwill

6,269.6



—



6,269.6



6,579.4



—



6,579.4


Total assets

$18,209.4



$6,752.8



$24,962.2



$14,233.1



$6,229.4



$20,462.5


LIABILITIES












Accrued compensation and benefits

$571.2



$—



$571.2



$667.3



$—



$667.3


Accounts payable and accrued expenses

882.4



—



882.4



757.3



—



757.3


Liabilities of CIP:












Debt of CIP

—



5,669.7



5,669.7



—



5,149.6



5,149.6


Other liabilities of CIP

—



338.1



338.1



—



280.9



280.9


Policyholder payables

5,500.5



—



5,500.5



1,697.9



—



1,697.9


Unsettled fund payables

962.5



—



962.5



730.1



—



730.1


Long-term debt

1,689.3



—



1,689.3



1,589.3



—



1,589.3


Deferred tax liabilities, net

316.3



—



316.3



304.8



—



304.8


Total liabilities

9,922.2



6,007.8



15,930.0



5,746.7



5,430.5



11,177.2


TEMPORARY EQUITY












Redeemable noncontrolling interests in CSIP

176.4



—



176.4



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

6,166.2



—



6,166.2



6,133.6



—



6,133.6


Treasury shares

(2,194.7)



—



(2,194.7)



(1,898.1)



—



(1,898.1)


Retained earnings

4,352.1



(0.7)



4,351.4



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

(329.0)



0.7



(328.3)



69.0



(20.2)



48.8


Total equity attributable to Invesco Ltd.

8,092.7



—



8,092.7



8,308.3



17.7



8,326.0


Equity attributable to nonredeemable noncontrolling interests
in consolidated entities

18.1



745.0



763.1



12.6



781.2



793.8


Total permanent equity

8,110.8



745.0



8,855.8



8,320.9



798.9



9,119.8


Total liabilities, temporary and permanent equity

$18,209.4



$6,752.8



$24,962.2



$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)



Nine months ended September 30,


2015


2014

Adjusted operating activities:




U.S. GAAP net income

$769.3



$775.2


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

21.0



(52.8)


Net income adjusted to remove impact of CIP

790.3



722.4


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




Amortization and depreciation

68.6



67.4


Share-based compensation expense

112.9



104.3


Other (gains)/losses, net

1.3



(26.2)


Other (gains)/losses of CSIP, net

(1.6)



(15.8)


Equity in earnings of unconsolidated affiliates

(33.0)



(30.5)


Dividends from unconsolidated affiliates

17.9



18.8


Changes in operating assets and liabilities:




(Increase)/decrease in cash held by CSIP

(3.1)



(5.4)


(Purchase)/sale of trading investments, net

(106.7)



(15.9)


(Increase)/decrease in receivables

(4,150.4)



(224.6)


Increase/(decrease) in payables

4,061.4



102.3


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

757.6



696.8






Adjusted investing activities:




Purchase of property, equipment and software

(88.1)



(86.7)


Purchase of available-for-sale investments

(102.3)



(179.6)


Sale of available-for-sale investments

108.2



139.9


Purchase of investments by CSIP

(397.5)



(565.9)


Sale of investments by CSIP

384.0



366.4


Purchase of other investments

(116.6)



(88.7)


Sale of other investments

73.8



52.5


Returns of capital and distributions from unconsolidated partnership investments

45.6



35.5


Sale of business

—



60.8


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

(92.9)



(265.8)






Adjusted financing activities:




Proceeds from exercises of share options

2.1



8.6


Purchases of treasury shares

(334.0)



(219.6)


Dividends paid

(340.8)



(315.7)


Excess tax benefits from share-based compensation

19.1



21.9


Repayment of unsettled fund account

—



(35.7)


Third-party capital invested into CSIP

13.5



157.1


Third-party capital distributed by CSIP

—



(3.7)


Net borrowings/(repayments) under credit facility

99.5



—


Payment of contingent consideration

(4.6)



—


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

(545.2)



(387.1)






Increase /(decrease) in cash and cash equivalents

119.5



43.9


Foreign exchange movement on cash and cash equivalents

(43.0)



(22.5)


Cash and cash equivalents, beginning of period

1,514.2



1,331.2


Cash and cash equivalents, end of period

$1,590.7



$1,352.6


            

Invesco Ltd.

U.S. GAAP Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)



Nine months ended September 30,


2015


2014

Operating activities:




Net income

$769.3



$775.2


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




Amortization and depreciation

68.6



67.4


Share-based compensation expense

112.9



104.3


Other (gains)/losses, net

5.2



(21.5)


Other (gains)/losses of CSIP, net

(1.6)



(15.8)


Other (gains)/losses of CIP, net

12.6



(63.4)


Equity in earnings of unconsolidated affiliates

(32.0)



(26.4)


Dividends from unconsolidated affiliates

17.9



18.8


Changes in operating assets and liabilities:




(Increase)/decrease in cash held by CIP

(184.3)



313.8


(Increase)/decrease in cash held by CSIP

(3.1)



(5.4)


(Purchase)/sale of trading investments, net

(106.7)



(15.9)


(Increase)/decrease in receivables

(4,168.4)



(233.8)


Increase/(decrease) in payables

4,065.2



120.1


Net cash provided by/(used in) operating activities

555.6



1,017.4






Investing activities:




Purchase of property, equipment and software

(88.1)



(86.7)


Purchase of available-for-sale investments

(41.5)



(112.0)


Sale of available-for-sale investments

48.5



100.8


Purchase of investments by CIP

(3,226.4)



(4,228.6)


Sale of investments by CIP

2,827.8



3,014.2


Purchase of investments by CSIP

(397.5)



(565.9)


Sale of investments by CSIP

384.0



366.4


Purchase of other investments

(115.2)



(84.9)


Sale of other investments

73.8



52.5


Returns of capital and distributions from unconsolidated partnership investments

45.1



33.8


Sale of business

—



60.8


Net cash provided by/(used in) investing activities

(489.5)



(1,449.6)






Financing activities:




Proceeds from exercises of share options

2.1



8.6


Purchases of treasury shares

(334.0)



(219.6)


Dividends paid

(340.8)



(315.7)


Excess tax benefits from share-based compensation

19.1



21.9


Repayment of unsettled fund account

—



(35.7)


Third-party capital invested into CIP

63.3



160.1


Third-party capital distributed by CIP

(99.0)



(131.2)


Third-party capital invested into CSIP

13.5



157.1


Third-party capital distributed by CSIP

—



(3.7)


Borrowings of debt by CIP

2,091.8



1,339.6


Repayments of debt by CIP

(1,457.5)



(505.3)


Net borrowings/(repayments) under credit facility

99.5



—


Payment of contingent consideration

(4.6)



—


Net cash provided by/(used in) financing activities

53.4



476.1






Increase/(decrease) in cash and cash equivalents

119.5



43.9


Foreign exchange movement on cash and cash equivalents

(43.0)



(22.5)


Cash and cash equivalents, beginning of period

1,514.2



1,331.2


Cash and cash equivalents, end of period

$1,590.7



$1,352.6


               

Invesco Ltd.

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

(unaudited, in millions)



Nine months ended September 30, 2015


Nine months ended September 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

$790.3



($21.0)



$769.3



$722.4



$52.8



$775.2


Amortization and depreciation

68.6



—



68.6



67.4



—



67.4


Share-based compensation expense

112.9



—



112.9



104.3



—



104.3


Other (gains)/losses, net

1.3



3.9



5.2



(26.2)



4.7



(21.5)


Other (gains)/losses of CSIP, net

(1.6)



—



(1.6)



(15.8)



—



(15.8)


Other (gains)/losses of CIP, net

—



12.6



12.6



—



(63.4)



(63.4)


Equity in earnings of unconsolidated affiliates

(33.0)



1.0



(32.0)



(30.5)



4.1



(26.4)


Dividends from unconsolidated affiliates

17.9



—



17.9



18.8



—



18.8


Changes in operating assets and liabilities:












(Increase)/decrease in cash held by CIP

—



(184.3)



(184.3)



—



313.8



313.8


(Increase)/decrease in cash held by CSIP

(3.1)



—



(3.1)



(5.4)



—



(5.4)


  (Purchase)/sale of trading investments, net

(106.7)



—



(106.7)



(15.9)



—



(15.9)


  (Increase)/decrease in receivables

(4,150.4)



(18.0)



(4,168.4)



(224.6)



(9.2)



(233.8)


  Increase/(decrease) in payables

4,061.4



3.8



4,065.2



102.3



17.8



120.1


Net cash provided by/(used in) operating activities

757.6



(202.0)



555.6



696.8



320.6



1,017.4














Investing activities:












Purchase of property, equipment and software

(88.1)



—



(88.1)



(86.7)



—



(86.7)


Purchase of available-for-sale investments

(102.3)



60.8



(41.5)



(179.6)



67.6



(112.0)


Sale of available-for-sale investments

108.2



(59.7)



48.5



139.9



(39.1)



100.8


Purchase of investments by CIP

—



(3,226.4)



(3,226.4)



—



(4,228.6)



(4,228.6)


Sale of investments by CIP

—



2,827.8



2,827.8



—



3,014.2



3,014.2


Purchase of investments by CSIP

(397.5)



—



(397.5)



(565.9)



—



(565.9)


Sale of investments by CSIP

384.0



—



384.0



366.4



—



366.4


Purchase of other investments

(116.6)



1.4



(115.2)



(88.7)



3.8



(84.9)


Sale of other investments

73.8



—



73.8



52.5



—



52.5


Returns of capital and distributions from unconsolidated partnership investments

45.6



(0.5)



45.1



35.5



(1.7)



33.8


Sale of business

—



—



—



60.8



—



60.8


Net cash provided by/(used in) investing activities

(92.9)



(396.6)



(489.5)



(265.8)



(1,183.8)



(1,449.6)














Financing activities:












Proceeds from exercises of share options

2.1



—



2.1



8.6



—



8.6


Purchases of treasury shares

(334.0)



—



(334.0)



(219.6)



—



(219.6)


Dividends paid

(340.8)



—



(340.8)



(315.7)



—



(315.7)


Excess tax benefits from share-based compensation

19.1



—



19.1



21.9



—



21.9


Repayment of unsettled fund account

—



—



—



(35.7)



—



(35.7)


Third-party capital invested into CIP

—



63.3



63.3



—



160.1



160.1


Third-party capital distributed by CIP

—



(99.0)



(99.0)



—



(131.2)



(131.2)


Third-party capital invested into CSIP

13.5



—



13.5



157.1



—



157.1


Third-party capital distributed by CSIP

—



—



—



(3.7)



—



(3.7)


Borrowings of debt by CIP

—



2,091.8



2,091.8



—



1,339.6



1,339.6


Repayments of debt by CIP

—



(1,457.5)



(1,457.5)



—



(505.3)



(505.3)


Net borrowings/(repayments) under credit facility

99.5



—



99.5



—



—



—


Payment of contingent consideration

(4.6)



—



(4.6)



—



—



—


Net cash provided by/(used in) financing activities

(545.2)



598.6



53.4



(387.1)



863.2



476.1














Increase/(decrease) in cash and cash equivalents

119.5



—



119.5



43.9



—



43.9


Foreign exchange movement on cash and cash equivalents

(43.0)



—



(43.0)



(22.5)



—



(22.5)


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

$1,590.7



$—



$1,590.7



$1,352.6



$—



$1,352.6



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, changes in the fair value of the contingent consideration liability payable in future periods, 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

Q3-15


Q2-15


Q3-14


Intangible amortization

$2.7



$2.6



$2.7



Taxation on amortization

(0.4)



(0.3)



(0.4)



Deferred taxation

4.8



5.1



5.4



Changes in the fair value of contingent consideration

(18.4)



—



—



Taxation on changes in the fair value of contingent consideration

7.0



—



—



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

—



—



0.6




($4.3)



$7.4



$8.3










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 $9.5 million in the third quarter (second quarter 2015: $10.4 million; third quarter 2014: $8.7 million) while no other revenues (second quarter 2015: none, third quarter 2014: $0.1 million) were recorded by CIP in the third 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 a decrease of $13.2 million in net income attributable to Invesco Ltd. in the third quarter U.S. GAAP earnings (second quarter 2015: $0.4 million increase; third quarter 2014: $2.4 million increase). 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 change in compensation expense and the investment income or loss, inclusive of interest and dividend income, are adjusted in arriving at the non-GAAP information and, net of the applicable taxation, result in a net income addition or deduction.

in millions

Q3-15


Q2-15


Q3-14


Market (depreciation)/appreciation of compensation liability

($4.4)



$1.3



$0.2



Investment loss included in other gains and losses, net

11.8



3.2



2.2



Net taxation on deferred compensation adjustments

(2.6)



(1.4)



(1.3)




$4.8



$3.1



$1.1










6.   Other reconciling items

in millions

Q3-15


Q2-15


Q3-14


Foreign exchange hedge loss/(gain) (a)

($1.6)



$6.2



$—



Business optimization charges: (b)







Property, office and technology

—



(6.4)



—



Taxation on business optimization charges

—



1.3



—



Fund reimbursement expense (c)

—



4.7



24.2



Taxation on fund reimbursement expense (c)

—



(1.8)



(9.0)




($1.6)



$4.0



$15.2










a.   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 March 31, 2016. The adjustment from U.S. GAAP to non-GAAP earnings removes the unrealized gains and losses that result from market volatility.

b.   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.

c.   Included within general and administrative expenses for the second quarter 2015 is a charge of $4.7 million (third quarter 2014: $24.2 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.

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 decreased to 29.4% for the third quarter, from 31.0% for the second quarter 2015 and increased from 27.3% for the third quarter 2014. The impact of the inclusion of non-controlling interests in CIP and CSIP increased our effective tax rate by 0.7% for the third quarter, compared to an increase of 1.2% for the second quarter 2015 and an increase of 0.3% for the third quarter 2014. Second quarter 2015 included a 2.3% rate increase as a result of tax legislation changes in New York City.  Third quarter 2014 included a 1.1% rate decrease as a result of the fund reimbursement expense (referenced above).

Invesco Ltd.
Quarterly Assets Under Management


(in billions)

Q3-15


Q2-15


% Change


Q3-14

Beginning Assets

$803.6



$798.3



0.7

%


$802.4


Long-term inflows

43.5



52.1



(16.5)

%


44.4


Long-term outflows

(47.4)



(46.2)



2.6

%


(38.4)


Long-term net flows

(3.9)



5.9



N/A


6.0


Net flows in Invesco PowerShares QQQ fund

(0.9)



(0.3)



200.0

%


(3.2)


Net flows in institutional money market funds

(1.5)



(2.6)



(42.3)

%


(0.8)


Total net flows

(6.3)



3.0



N/A


2.0


Market gains and losses/reinvestment

(35.6)



(6.2)



474.2

%


(5.1)


Foreign currency translation

(5.9)



8.5



N/A


(9.7)


Ending Assets

$755.8



$803.6



(5.9)

%


$789.6










Average long-term AUM

$685.5



$706.1



(2.9)

%


$683.4


Average AUM

$788.9



$810.9



(2.7)

%


$801.7










Gross revenue yield on AUM(a)

65.1

bps


65.6

bps




65.8

bps

Gross revenue yield on AUM before performance fees(a)

64.3

bps


65.2

bps




65.4

bps

Net revenue yield on AUM(b)

45.8

bps


46.2

bps




45.6

bps

Net revenue yield on AUM before performance fees(b)

44.9

bps


45.6

bps




45.1

bps

(in billions)

Total AUM


Active(e)


Passive(e)

June 30, 2015

$803.6



$662.0



$141.6


Long-term inflows

43.5



36.7



6.8


Long-term outflows

(47.4)



(38.3)



(9.1)


Long-term net flows

(3.9)



(1.6)



(2.3)


Net flows in Invesco PowerShares QQQ fund

(0.9)



—



(0.9)


Net flows in institutional money market funds

(1.5)



(1.6)



0.1


Total net flows

(6.3)



(3.2)



(3.1)


Market gains and losses/reinvestment

(35.6)



(28.8)



(6.8)


Foreign currency translation

(5.9)



(5.9)



—


September 30, 2015

$755.8



$624.1



$131.7








Average AUM

$788.9



$650.5



$138.4


Gross revenue yield on AUM(a)

65.1bps


75.8bps


14.9bps

Net revenue yield on AUM(b)

45.8bps


52.4bps


14.9bps







By channel: (in billions)

Total


Retail


Institutional

June 30, 2015

$803.6



$541.3



$262.3


Long-term inflows

43.5



32.0



11.5


Long-term outflows

(47.4)



(36.2)



(11.2)


Long-term net flows

(3.9)



(4.2)



0.3


Net flows in Invesco PowerShares QQQ fund

(0.9)



(0.9)



—


Net flows in institutional money market funds

(1.5)



—



(1.5)


Total net flows

(6.3)



(5.1)



(1.2)


Market gains and losses/reinvestment

(35.6)



(31.4)



(4.2)


Foreign currency translation

(5.9)



(5.4)



(0.5)


September 30, 2015

$755.8



$499.4



$256.4








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)

June 30, 2015

$803.6



$394.7



$187.5



$53.6



$67.9



$99.9


Long-term inflows

43.5



19.6



10.5



3.2



1.3



8.9


Long-term outflows

(47.4)



(25.6)



(11.3)



(4.3)



(1.0)



(5.2)


Long-term net flows

(3.9)



(6.0)



(0.8)



(1.1)



0.3



3.7


Net flows in Invesco PowerShares QQQ fund

(0.9)



(0.9)



—



—



—



—


Net flows in institutional money market funds

(1.5)



—



—



—



(1.5)



—


Total net flows

(6.3)



(6.9)



(0.8)



(1.1)



(1.2)



3.7


Market gains and losses/reinvestment

(35.6)



(31.6)



(0.4)



(1.4)



0.1



(2.3)


Foreign currency translation

(5.9)



(3.8)



(0.8)



(1.0)



—



(0.3)


September 30, 2015

$755.8



$352.4



$185.5



$50.1



$66.8



$101.0














Average AUM

$788.9



$379.7



$187.1



$52.4



$69.6



$100.1














By client domicile: (in billions)

Total


U.S.


Canada


U.K.


Continental
Europe


Asia

June 30, 2015

$803.6



$530.8



$24.9



$110.7



$77.0



$60.2


Long-term inflows

43.5



20.6



0.9



5.7



8.3



8.0


Long-term outflows

(47.4)



(25.6)



(0.9)



(5.9)



(7.3)



(7.7)


Long-term net flows

(3.9)



(5.0)



—



(0.2)



1.0



0.3


Net flows in Invesco PowerShares QQQ fund

(0.9)



(0.9)



—



—



—



—


Net flows in institutional money market funds

(1.5)



(2.1)



—



—



(0.1)



0.7


Total net flows

(6.3)



(8.0)



—



(0.2)



0.9



1.0


Market gains and losses/reinvestment

(35.6)



(23.1)



(1.3)



(3.7)



(3.7)



(3.8)


Foreign currency translation

(5.9)



—



(1.8)



(3.7)



(0.1)



(0.3)


September 30, 2015

$755.8



$499.7



$21.8



$103.1



$74.1



$57.1














See the footnotes immediately following these tables.

Invesco Ltd.
Year-to-date Assets Under Management

(in billions)

September 30,
2015


September 30,

2014


% Change

Beginning Assets

$792.4



$778.7



1.8

%

Long-term inflows

146.1



137.1



6.6

%

Long-term outflows

(133.8)



(131.5)



1.7

%

Long-term net flows

12.3



5.6



119.6

%

Net flows in Invesco PowerShares QQQ fund

(3.8)



(7.5)



(49.3)

%

Net flows in institutional money market funds

(10.1)



(5.8)



74.1

%

Total net flows

(1.6)



(7.7)



(79.2)

%

Market gains and losses/reinvestment

(26.0)



24.2



N/A

Acquisitions/dispositions, net(f)

(0.7)



—



N/A

Foreign currency translation

(8.3)



(5.6)



48.2

%

Ending Assets

$755.8



$789.6



(4.3)

%







Average long-term AUM

$692.2



$672.6



2.9

%

Average AUM

$798.4



$790.5



1.0

%







Gross revenue yield on AUM(a)

65.3

bps


65.7

bps



Gross revenue yield on AUM before performance fees(a)

64.2

bps


64.9

bps



Net revenue yield on AUM(b)

46.0

bps


45.6

bps



Net revenue yield on AUM before performance fees(b)

44.7

bps


44.7

bps



(in billions)

Total AUM


Active(e)


Passive(e)

December 31, 2014

$792.4



$651.0



$141.4


Long-term inflows

146.1



120.4



25.7


Long-term outflows

(133.8)



(109.8)



(24.0)


Long-term net flows

12.3



10.6



1.7


Net flows in Invesco PowerShares QQQ fund

(3.8)



—



(3.8)


Net flows in institutional money market funds

(10.1)



(10.2)



0.1


Total net flows

(1.6)



0.4



(2.0)


Market gains and losses/reinvestment

(26.0)



(19.0)



(7.0)


Acquisitions/dispositions, net(f)

(0.7)



—



(0.7)


Foreign currency translation

(8.3)



(8.3)



—


September 30, 2015

$755.8



$624.1



$131.7








Average AUM

$798.4



$656.7



$141.7


Gross revenue yield on AUM(a)

65.3bps


76.4bps


14.5bps

Net revenue yield on AUM(b)

46.0bps


52.9bps


14.5bps







By channel: (in billions)

Total


Retail


Institutional

December 31, 2014

$792.4



$532.5



$259.9


Long-term inflows

146.1



106.5



39.6


Long-term outflows

(133.8)



(103.7)



(30.1)


Long-term net flows

12.3



2.8



9.5


Net flows in Invesco PowerShares QQQ fund

(3.8)



(3.8)



—


Net flows in institutional money market funds

(10.1)



—



(10.1)


Total net flows

(1.6)



(1.0)



(0.6)


Market gains and losses/reinvestment

(26.0)



(25.0)



(1.0)


Acquisitions/dispositions, net(f)

(0.7)



(0.7)



—


Foreign currency translation

(8.3)



(6.4)



(1.9)


September 30, 2015

$755.8



$499.4



$256.4








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

146.1



67.9



34.5



13.3



3.0



27.4


Long-term outflows

(133.8)



(73.5)



(27.2)



(10.6)



(2.9)



(19.6)


Long-term net flows

12.3



(5.6)



7.3



2.7



0.1



7.8


Net flows in Invesco PowerShares QQQ fund

(3.8)



(3.8)



—



—



—



—


Net flows in institutional money market funds

(10.1)



—



—



—



(10.1)



—


Total net flows

(1.6)



(9.4)



7.3



2.7



(10.0)



7.8


Market gains and losses/reinvestment

(26.0)



(17.8)



(2.5)



(1.5)



0.3



(4.5)


Acquisitions/dispositions, net(f)

(0.7)



—



—



—



—



(0.7)


Foreign currency translation

(8.3)



(4.8)



(0.9)



(1.7)



—



(0.9)


September 30, 2015

$755.8



$352.4



$185.5



$50.1



$66.8



$101.0














Average AUM

$798.4



$390.5



$184.9



$51.8



$71.4



$99.8














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

146.1



74.1



2.9



15.1



30.2



23.8


Long-term outflows

(133.8)



(72.1)



(3.0)



(14.5)



(22.6)



(21.6)


Long-term net flows

12.3



2.0



(0.1)



0.6



7.6



2.2


Net flows in Invesco PowerShares QQQ fund

(3.8)



(3.8)



—



—



—



—


Net flows in institutional money market funds

(10.1)



(11.1)



(0.1)



0.8



(0.3)



0.6


Total net flows

(1.6)



(12.9)



(0.2)



1.4



7.3



2.8


Market gains and losses/reinvestment

(26.0)



(18.8)



(0.1)



(0.8)



(2.9)



(3.4)


Acquisitions/dispositions, net(f)

(0.7)



(0.7)



—



—



—



—


Foreign currency translation

(8.3)



—



(3.7)



(2.6)



(1.4)



(0.6)


September 30, 2015

$755.8



$499.7



$21.8



$103.1



$74.1



$57.1














See the footnotes immediately following these tables.

Invesco Ltd.
Quarterly Assets Under Management - Passive(e)

(in billions)

Q3-15


Q2-15


% Change


Q3-14

Beginning Assets

$141.6



$143.0



(1.0)

%


$145.8


Long-term inflows

6.8



9.0



(24.4)

%


8.2


Long-term outflows

(9.1)



(8.5)



7.1

%


(8.2)


Long-term net flows

(2.3)



0.5



N/A


—


Net flows in Invesco PowerShares QQQ fund

(0.9)