þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Bermuda
(State or Other Jurisdiction of Incorporation or Organization)
|
|
98-0557567
(I.R.S. Employer Identification No.)
|
|
|
|
1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA
(Address of Principal Executive Offices)
|
|
30309
(Zip Code)
|
Large accelerated filer
þ
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
|
|
|
|
Page
|
TABLE OF CONTENTS
|
|
|
|
|
|
EX-31.1
|
|
EX-31.2
|
|
EX-32.1
|
|
EX-32.2
|
|
EX-101 INSTANCE DOCUMENT
|
|
EX-101 SCHEMA DOCUMENT
|
|
EX-101 CALCULATION LINKBASE DOCUMENT
|
|
EX-101 LABELS LINKBASE DOCUMENT
|
|
EX-101 PRESENTATION LINKBASE DOCUMENT
|
|
EX-101 DEFINITION LINKBASE DOCUMENT
|
|
|
As of
|
||||
$ in millions, except per share data
|
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 and other assets 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
|
|
Commitments and contingencies (See Note 11)
|
|
|
|
|
|
TEMPORARY EQUITY
|
|
|
|
||
Redeemable noncontrolling interests in CSIP
|
176.4
|
|
|
165.5
|
|
PERMANENT EQUITY
|
|
|
|
||
Equity attributable to Invesco Ltd.:
|
|
|
|
||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of September 30, 2015 and December 31, 2014)
|
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
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
$ in millions, except per share data
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Operating revenues:
|
|
|
|
|
|
|
|
||||||||
Investment management fees
|
1,016.9
|
|
|
1,047.3
|
|
|
3,074.0
|
|
|
3,044.6
|
|
||||
Service and distribution fees
|
214.8
|
|
|
222.1
|
|
|
647.8
|
|
|
675.4
|
|
||||
Performance fees
|
15.6
|
|
|
8.2
|
|
|
69.1
|
|
|
44.3
|
|
||||
Other
|
26.2
|
|
|
33.4
|
|
|
92.3
|
|
|
106.1
|
|
||||
Total operating revenues
|
1,273.5
|
|
|
1,311.0
|
|
|
3,883.2
|
|
|
3,870.4
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Employee compensation
|
337.6
|
|
|
343.8
|
|
|
1,045.7
|
|
|
1,048.8
|
|
||||
Third-party distribution, service and advisory
|
392.3
|
|
|
420.2
|
|
|
1,204.7
|
|
|
1,236.2
|
|
||||
Marketing
|
24.9
|
|
|
26.6
|
|
|
81.3
|
|
|
80.2
|
|
||||
Property, office and technology
|
79.0
|
|
|
76.4
|
|
|
230.7
|
|
|
264.4
|
|
||||
General and administrative
|
87.0
|
|
|
114.4
|
|
|
266.0
|
|
|
312.1
|
|
||||
Total operating expenses
|
920.8
|
|
|
981.4
|
|
|
2,828.4
|
|
|
2,941.7
|
|
||||
Operating income
|
352.7
|
|
|
329.6
|
|
|
1,054.8
|
|
|
928.7
|
|
||||
Other income/(expense):
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated affiliates
|
8.2
|
|
|
10.9
|
|
|
32.0
|
|
|
26.4
|
|
||||
Interest and dividend income
|
2.4
|
|
|
2.6
|
|
|
7.5
|
|
|
8.6
|
|
||||
Interest expense
|
(20.4
|
)
|
|
(18.1
|
)
|
|
(58.7
|
)
|
|
(55.0
|
)
|
||||
Other gains and losses, net
|
0.9
|
|
|
(1.3
|
)
|
|
(5.2
|
)
|
|
21.5
|
|
||||
Other income/(expense) of CSIP, net
|
(3.6
|
)
|
|
7.4
|
|
|
10.9
|
|
|
23.3
|
|
||||
CIP:
|
|
|
|
|
|
|
|
||||||||
Interest and dividend income of CIP
|
64.7
|
|
|
53.4
|
|
|
190.0
|
|
|
149.7
|
|
||||
Interest expense of CIP
|
(45.9
|
)
|
|
(37.5
|
)
|
|
(138.3
|
)
|
|
(98.1
|
)
|
||||
Other gains/(losses) of CIP, net
|
(17.3
|
)
|
|
0.1
|
|
|
(12.6
|
)
|
|
63.4
|
|
||||
Income from continuing operations before income taxes
|
341.7
|
|
|
347.1
|
|
|
1,080.4
|
|
|
1,068.5
|
|
||||
Income tax provision
|
(100.4
|
)
|
|
(94.9
|
)
|
|
(311.1
|
)
|
|
(290.9
|
)
|
||||
Income from continuing operations, net of taxes
|
241.3
|
|
|
252.2
|
|
|
769.3
|
|
|
777.6
|
|
||||
Income/(loss) from discontinued operations, net of taxes
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||
Net income
|
241.3
|
|
|
251.6
|
|
|
769.3
|
|
|
775.2
|
|
||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
8.0
|
|
|
4.4
|
|
|
(3.1
|
)
|
|
(56.9
|
)
|
||||
Net income attributable to Invesco Ltd.
|
249.3
|
|
|
256.0
|
|
|
766.2
|
|
|
718.3
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Basic earnings per share
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Diluted earnings per share
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Dividends declared per share
|
|
$0.2700
|
|
|
|
$0.2500
|
|
|
|
$0.7900
|
|
|
|
$0.7250
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Net income
|
241.3
|
|
|
251.6
|
|
|
769.3
|
|
|
775.2
|
|
Other comprehensive income/(loss), net of tax:
|
|
|
|
|
|
|
|
||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(223.9
|
)
|
|
(255.0
|
)
|
|
(364.2
|
)
|
|
(177.7
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
4.4
|
|
|
—
|
|
|
2.3
|
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
(1.8
|
)
|
|
(0.4
|
)
|
|
(4.8
|
)
|
|
(1.1
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
0.6
|
|
|
0.4
|
|
|
1.7
|
|
|
1.4
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
(1.9
|
)
|
|
0.4
|
|
|
(0.6
|
)
|
|
7.6
|
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
(5.8
|
)
|
|
(4.2
|
)
|
|
(7.6
|
)
|
|
9.0
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
(0.7
|
)
|
|
(2.4
|
)
|
|
(1.6
|
)
|
|
(16.6
|
)
|
Other comprehensive income/(loss), net of tax
|
(233.5
|
)
|
|
(256.8
|
)
|
|
(377.1
|
)
|
|
(175.1
|
)
|
Total comprehensive income/(loss)
|
7.8
|
|
|
(5.2
|
)
|
|
392.2
|
|
|
600.1
|
|
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities
|
8.0
|
|
|
4.1
|
|
|
(3.1
|
)
|
|
(56.9
|
)
|
Comprehensive income/(loss) attributable to Invesco Ltd.
|
15.8
|
|
|
(1.1
|
)
|
|
389.1
|
|
|
543.2
|
|
|
Nine months ended September 30,
|
||||
$ in millions
|
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
|
|
Supplemental Cash Flow Information:
|
|
|
|
||
Interest paid
|
(49.0
|
)
|
|
(40.1
|
)
|
Interest received
|
6.8
|
|
|
4.6
|
|
Taxes paid
|
(232.7
|
)
|
|
(252.4
|
)
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
||||||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in CSIP/Temporary Equity
|
||||||||||
January 1, 2015
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
17.6
|
|
|
48.8
|
|
|
8,326.0
|
|
|
793.8
|
|
|
9,119.8
|
|
|
165.5
|
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
January 1, 2015, as adjusted
|
98.1
|
|
|
6,133.6
|
|
|
(1,898.1
|
)
|
|
3,926.0
|
|
|
—
|
|
|
48.8
|
|
|
8,308.4
|
|
|
793.8
|
|
|
9,102.2
|
|
|
165.5
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
766.2
|
|
|
—
|
|
|
—
|
|
|
766.2
|
|
|
3.7
|
|
|
769.9
|
|
|
(0.6
|
)
|
Other comprehensive income/(loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(377.1
|
)
|
|
(377.1
|
)
|
|
—
|
|
|
(377.1
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34.4
|
)
|
|
(34.4
|
)
|
|
11.5
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
|
(340.8
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
112.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112.9
|
|
|
—
|
|
|
112.9
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(101.2
|
)
|
|
101.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Exercise of options
|
—
|
|
|
(0.5
|
)
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Settlement of ESPP purchases
|
—
|
|
|
2.3
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
Tax impact of share-based payment
|
—
|
|
|
19.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19.1
|
|
|
—
|
|
|
19.1
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
|
(403.6
|
)
|
|
—
|
|
September 30, 2015
|
98.1
|
|
|
6,166.2
|
|
|
(2,194.7
|
)
|
|
4,351.4
|
|
|
—
|
|
|
(328.3
|
)
|
|
8,092.7
|
|
|
763.1
|
|
|
8,855.8
|
|
|
176.4
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
||||||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Retained Earnings Appropriated for Investors in CIP
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
Redeemable Noncontrolling Interests in CSIP/Temporary Equity
|
||||||||||
January 1, 2014
|
98.1
|
|
|
6,100.8
|
|
|
(1,700.4
|
)
|
|
3,361.9
|
|
|
104.3
|
|
|
427.9
|
|
|
8,392.6
|
|
|
584.7
|
|
|
8,977.3
|
|
—
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
718.3
|
|
|
—
|
|
|
—
|
|
|
718.3
|
|
|
49.4
|
|
|
767.7
|
|
7.5
|
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(175.0
|
)
|
|
(175.0
|
)
|
|
(0.1
|
)
|
|
(175.1
|
)
|
—
|
|
Net income/(loss) reclassified to appropriated retained earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46.9
|
)
|
|
—
|
|
|
(46.9
|
)
|
|
46.9
|
|
|
—
|
|
—
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.1
|
|
|
34.1
|
|
150.0
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(315.7
|
)
|
|
—
|
|
|
—
|
|
|
(315.7
|
)
|
|
—
|
|
|
(315.7
|
)
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation
|
—
|
|
|
104.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104.3
|
|
|
—
|
|
|
104.3
|
|
—
|
|
Vested shares
|
—
|
|
|
(118.9
|
)
|
|
118.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
Exercise of options
|
—
|
|
|
(6.4
|
)
|
|
15.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
|
8.6
|
|
—
|
|
Settlement of ESPP purchases
|
—
|
|
|
2.2
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
|
Tax impact of share-based payment
|
—
|
|
|
21.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.9
|
|
|
—
|
|
|
21.9
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(288.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(288.0
|
)
|
|
—
|
|
|
(288.0
|
)
|
—
|
|
September 30, 2014
|
98.1
|
|
|
6,103.9
|
|
|
(1,851.7
|
)
|
|
3,764.5
|
|
|
56.4
|
|
|
252.9
|
|
|
8,424.1
|
|
|
715.0
|
|
|
9,139.1
|
|
157.5
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
|
|
1,590.7
|
|
|
1,590.7
|
|
|
1,514.2
|
|
|
1,514.2
|
|
Available-for-sale investments
|
3
|
|
233.9
|
|
|
233.9
|
|
|
255.9
|
|
|
255.9
|
|
Trading investments
|
3
|
|
347.5
|
|
|
347.5
|
|
|
263.2
|
|
|
263.2
|
|
Foreign time deposits
*
|
3
|
|
27.7
|
|
|
27.7
|
|
|
29.6
|
|
|
29.6
|
|
Assets held for policyholders
|
|
|
5,500.5
|
|
|
5,500.5
|
|
|
1,697.9
|
|
|
1,697.9
|
|
Policyholder payables *
|
|
|
(5,500.5
|
)
|
|
(5,500.5
|
)
|
|
(1,697.9
|
)
|
|
(1,697.9
|
)
|
Put option contracts
|
|
|
1.6
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
UIT-related financial instruments sold, not yet purchased
|
|
|
(6.3
|
)
|
|
(6.3
|
)
|
|
(1.4
|
)
|
|
(1.4
|
)
|
Contingent consideration liability
|
|
|
(96.3
|
)
|
|
(96.3
|
)
|
|
—
|
|
|
—
|
|
Long-term debt
*
|
4
|
|
(1,689.3
|
)
|
|
(1,749.8
|
)
|
|
(1,589.3
|
)
|
|
(1,695.8
|
)
|
*
|
These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes or most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities.
|
•
|
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
•
|
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
|
As of September 30, 2015
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
238.4
|
|
|
238.4
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
226.9
|
|
|
226.9
|
|
|
—
|
|
|
—
|
|
CLOs
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
Other debt securities
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
159.6
|
|
|
159.6
|
|
|
—
|
|
|
—
|
|
Seed money
|
127.7
|
|
|
127.7
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
48.9
|
|
|
48.9
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
UITs
|
6.9
|
|
|
6.9
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
3.2
|
|
|
—
|
|
|
3.2
|
|
|
—
|
|
Assets held for policyholders
|
5,500.5
|
|
|
5,500.5
|
|
|
—
|
|
|
—
|
|
Put option contracts
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
Total
|
6,321.9
|
|
|
6,310.1
|
|
|
4.8
|
|
|
7.0
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(6.2
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
—
|
|
UITs
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
Contingent consideration liability
|
(96.3
|
)
|
|
—
|
|
|
—
|
|
|
(96.3
|
)
|
Total
|
(102.6
|
)
|
|
(6.3
|
)
|
|
—
|
|
|
(96.3
|
)
|
*
|
Foreign time deposits of
$27.7 million
are excluded from this table. Equity method and other investments of
$323.2 million
and
$6.6 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
As of December 31, 2014
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
474.9
|
|
|
474.9
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||
Seed money
|
246.2
|
|
|
246.2
|
|
|
—
|
|
|
—
|
|
CLOs
|
3.4
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
Other debt securities
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
Trading investments:
|
|
|
|
|
|
|
|
||||
Investments related to deferred compensation plans
|
162.6
|
|
|
162.6
|
|
|
—
|
|
|
—
|
|
Seed Money
|
68.2
|
|
|
68.2
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
29.0
|
|
|
29.0
|
|
|
—
|
|
|
—
|
|
UIT-related equity and debt securities:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
UITs
|
1.6
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
Municipal securities
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Assets held for policyholders
|
1,697.9
|
|
|
1,697.9
|
|
|
—
|
|
|
—
|
|
Total
|
2,691.9
|
|
|
2,681.8
|
|
|
0.4
|
|
|
9.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
UIT-related financial instruments sold, not yet purchased:
|
|
|
|
|
|
|
|
||||
Corporate equities
|
(1.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
Total
|
(1.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
*
|
Foreign time deposits of
$29.6 million
are excluded from this table. Equity method and other investments of
$332.1 million
and
$4.6 million
, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
||||||
Beginning balance
|
(118.7
|
)
|
|
1.3
|
|
|
6.3
|
|
|
—
|
|
|
3.4
|
|
|
6.3
|
|
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(119.3
|
)
|
|
—
|
|
|
—
|
|
Returns of capital
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
Net unrealized gains and losses included in other gains and losses
|
18.4
|
|
|
—
|
|
|
—
|
|
|
18.4
|
|
|
—
|
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Disposition/settlements
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
(2.0
|
)
|
|
—
|
|
Ending balance
|
(96.3
|
)
|
|
1.1
|
|
|
5.9
|
|
|
(96.3
|
)
|
|
1.1
|
|
|
5.9
|
|
|
Three months ended September 30, 2014
|
|
Nine months ended September 30, 2014
|
||||||||
$ in millions
|
CLOs
|
|
Other Debt Securities
|
|
CLOs
|
|
Other Debt Securities
|
||||
Beginning balance
|
4.1
|
|
|
6.3
|
|
|
4.0
|
|
|
6.3
|
|
Returns of capital
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)
*
|
0.1
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
Ending balance
|
4.1
|
|
|
6.3
|
|
|
4.1
|
|
|
6.3
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective period ends.
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||||||
Seed money
|
230.1
|
|
|
8.5
|
|
|
(11.7
|
)
|
|
226.9
|
|
|
237.7
|
|
|
12.8
|
|
|
(4.3
|
)
|
|
246.2
|
|
CLOs
|
1.3
|
|
|
—
|
|
|
(0.2
|
)
|
|
1.1
|
|
|
3.5
|
|
|
—
|
|
|
(0.1
|
)
|
|
3.4
|
|
Other debt securities
|
5.9
|
|
|
|
|
—
|
|
|
5.9
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
|
237.3
|
|
|
8.5
|
|
|
(11.9
|
)
|
|
233.9
|
|
|
247.5
|
|
|
12.8
|
|
|
(4.4
|
)
|
|
255.9
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||
Less than 12 months
|
122.6
|
|
|
(5.3
|
)
|
|
123.9
|
|
|
(3.5
|
)
|
12 months or greater
|
34.3
|
|
|
(6.4
|
)
|
|
3.6
|
|
|
(0.8
|
)
|
Total
|
156.9
|
|
|
(11.7
|
)
|
|
127.5
|
|
|
(4.3
|
)
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
$ in millions
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
599.7
|
|
|
603.9
|
|
|
599.6
|
|
|
596.8
|
|
$600 million 4.000% - due January 30, 2024
|
596.5
|
|
|
614.5
|
|
|
596.2
|
|
|
625.9
|
|
$400 million 5.375% - due November 30, 2043
|
393.6
|
|
|
431.9
|
|
|
393.5
|
|
|
473.1
|
|
Floating rate credit facility expiring August 7, 2020
|
99.5
|
|
|
99.5
|
|
|
—
|
|
|
—
|
|
Long-term debt
|
1,689.3
|
|
|
1,749.8
|
|
|
1,589.3
|
|
|
1,695.8
|
|
*
|
The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.
|
|
As of
|
||||
In millions
|
September 30, 2015
|
|
December 31, 2014
|
||
Common shares issued
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(66.5
|
)
|
|
(60.5
|
)
|
Common shares outstanding
|
423.9
|
|
|
429.9
|
|
|
For the three months ended September 30, 2015
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(223.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223.9
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
|
(1.9
|
)
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Other comprehensive income/(loss), net of tax
|
(223.9
|
)
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|
(6.5
|
)
|
|
(233.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(12.2
|
)
|
|
(93.6
|
)
|
|
7.8
|
|
|
3.2
|
|
|
(94.8
|
)
|
Other comprehensive income/(loss), net of tax
|
(223.9
|
)
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|
(6.5
|
)
|
|
(233.5
|
)
|
Ending balance
|
(236.1
|
)
|
|
(94.8
|
)
|
|
5.9
|
|
|
(3.3
|
)
|
|
(328.3
|
)
|
|
For the nine months ended September 30, 2015
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(364.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364.2
|
)
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|
(7.6
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
|
(1.6
|
)
|
Other comprehensive income/(loss), net of tax
|
(364.2
|
)
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(9.2
|
)
|
|
(377.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
128.1
|
|
|
(91.7
|
)
|
|
6.5
|
|
|
5.9
|
|
|
48.8
|
|
Other comprehensive income/(loss), net of tax
|
(364.2
|
)
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(9.2
|
)
|
|
(377.1
|
)
|
Ending balance
|
(236.1
|
)
|
|
(94.8
|
)
|
|
5.9
|
|
|
(3.3
|
)
|
|
(328.3
|
)
|
|
For the three months ended September 30, 2014
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(255.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(255.0
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
|
(4.2
|
)
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
(2.4
|
)
|
Other comprehensive income/(loss), net of tax
|
(255.0
|
)
|
|
4.4
|
|
|
0.4
|
|
|
(6.6
|
)
|
|
(256.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
570.1
|
|
|
(79.7
|
)
|
|
5.4
|
|
|
14.1
|
|
|
509.9
|
|
Other comprehensive income/(loss), net of tax
|
(255.0
|
)
|
|
4.4
|
|
|
0.4
|
|
|
(6.6
|
)
|
|
(256.8
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interests
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
Ending balance
|
314.9
|
|
|
(75.3
|
)
|
|
5.8
|
|
|
7.5
|
|
|
252.9
|
|
|
For the nine months ended September 30, 2014
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries, net of tax
|
(177.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(177.7
|
)
|
Actuarial (loss)/gain related to employee benefit plans, net of tax
|
—
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Share of other comprehensive income/(loss) of equity method investments, net of tax
|
—
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
7.6
|
|
Unrealized (losses)/gains on available-for-sale investments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|
9.0
|
|
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.6
|
)
|
|
(16.6
|
)
|
Other comprehensive income/(loss), net of tax
|
(177.7
|
)
|
|
2.6
|
|
|
7.6
|
|
|
(7.6
|
)
|
|
(175.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
492.5
|
|
|
(77.9
|
)
|
|
(1.8
|
)
|
|
15.1
|
|
|
427.9
|
|
Other comprehensive income/(loss), net of tax
|
(177.7
|
)
|
|
2.6
|
|
|
7.6
|
|
|
(7.6
|
)
|
|
(175.1
|
)
|
Other comprehensive (income)/loss attributable to noncontrolling interests
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Ending balance
|
314.9
|
|
|
(75.3
|
)
|
|
5.8
|
|
|
7.5
|
|
|
252.9
|
|
|
For the nine months ended September 30, 2015
|
|
For the nine months ended September 30, 2014
|
|||||||||||
Millions of shares, except fair values
|
Time- Vested
|
|
Performance- Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time- Vested
|
|
Performance- Vested
|
|||||
Unvested at the beginning of period
|
11.5
|
|
|
0.5
|
|
|
29.00
|
|
|
13.9
|
|
|
0.4
|
|
Granted during the period
|
4.0
|
|
|
0.3
|
|
|
40.21
|
|
|
4.3
|
|
|
0.2
|
|
Forfeited during the period
|
(0.1
|
)
|
|
—
|
|
|
32.93
|
|
|
(1.1
|
)
|
|
—
|
|
Vested and distributed during the period
|
(4.6
|
)
|
|
(0.2
|
)
|
|
28.24
|
|
|
(5.4
|
)
|
|
(0.1
|
)
|
Unvested at the end of the period
|
10.8
|
|
|
0.6
|
|
|
33.48
|
|
|
11.7
|
|
|
0.5
|
|
|
Retirement Plans
|
|
Medical Plan
|
||||||||||||||||||||
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Service cost
|
1.1
|
|
|
1.1
|
|
|
3.6
|
|
|
3.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Interest cost
|
5.4
|
|
|
4.8
|
|
|
15.9
|
|
|
14.3
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
1.4
|
|
Expected return on plan assets
|
(6.3
|
)
|
|
(4.6
|
)
|
|
(18.6
|
)
|
|
(13.9
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.5
|
)
|
Amortization of prior service cost/(credit)
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
(2.9
|
)
|
|
(0.5
|
)
|
|
(7.6
|
)
|
|
(1.5
|
)
|
Amortization of net actuarial (gain)/loss
|
0.7
|
|
|
0.5
|
|
|
2.0
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Net periodic benefit cost/(benefit)
|
0.9
|
|
|
1.8
|
|
|
3.0
|
|
|
5.3
|
|
|
(3.0
|
)
|
|
(0.2
|
)
|
|
(7.9
|
)
|
|
(0.2
|
)
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
In millions, except per share data
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Income from continuing operations, net of taxes
|
|
$241.3
|
|
|
|
$252.2
|
|
|
|
$769.3
|
|
|
|
$777.6
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
8.0
|
|
|
4.4
|
|
|
(3.1
|
)
|
|
(56.9
|
)
|
||||
Income from continuing operations attributable to Invesco Ltd. for basic and diluted EPS calculations
|
249.3
|
|
|
256.6
|
|
|
766.2
|
|
|
720.7
|
|
||||
Income/(loss) from discontinued operations, net of taxes
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||
Net income attributable to Invesco Ltd.
|
249.3
|
|
|
256.0
|
|
|
766.2
|
|
|
718.3
|
|
||||
Less: Allocation of earnings to restricted shares
|
(6.3
|
)
|
|
(6.9
|
)
|
|
(19.6
|
)
|
|
(20.5
|
)
|
||||
Net income attributable to common shareholders
|
|
$243.0
|
|
|
|
$249.1
|
|
|
|
$746.6
|
|
|
|
$697.8
|
|
|
|
|
|
|
|
|
|
||||||||
Invesco Ltd:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
428.8
|
|
|
434.3
|
|
|
430.9
|
|
|
435.6
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.5
|
|
|
0.4
|
|
|
0.6
|
|
||||
Weighted average shares outstanding - diluted
|
429.1
|
|
|
434.8
|
|
|
431.3
|
|
|
436.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Common shareholders:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
428.8
|
|
|
434.3
|
|
|
430.9
|
|
|
435.6
|
|
||||
Less: Weighted average restricted shares
|
(10.8
|
)
|
|
(11.7
|
)
|
|
(11.0
|
)
|
|
(12.5
|
)
|
||||
Weighted average common shares outstanding - basic
|
418.0
|
|
|
422.6
|
|
|
419.9
|
|
|
423.1
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.3
|
|
|
0.5
|
|
|
0.4
|
|
|
0.6
|
|
||||
Weighted average common shares outstanding - diluted
|
418.3
|
|
|
423.1
|
|
|
420.3
|
|
|
423.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Basic earnings per share
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Earnings per share from discontinued operations
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($0.01
|
)
|
Diluted earnings per share
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
$ in millions
|
September 30, 2015
|
|
December 31, 2014
|
||
Investments of CSIP
|
304.8
|
|
|
288.5
|
|
Cash and cash equivalents of CSIP
|
14.5
|
|
|
11.4
|
|
Accounts receivable and other assets of CSIP
|
6.2
|
|
|
5.9
|
|
Assets of CSIP
|
325.5
|
|
|
305.8
|
|
Other liabilities of CSIP
|
(4.7
|
)
|
|
(7.9
|
)
|
Equity attributable to redeemable noncontrolling interests
|
(176.4
|
)
|
|
(165.5
|
)
|
Equity attributable to nonredeemable noncontrolling interests
|
(16.1
|
)
|
|
(10.6
|
)
|
Invesco's net interests in CSIP
|
128.3
|
|
|
121.8
|
|
Invesco's net economic interests as a percentage of investments of CSIP
|
42.1
|
%
|
|
42.2
|
%
|
|
As of September 30, 2015
|
||||||||||
$ in millions
|
Fair
Value
Measurements
|
|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||
Investments:
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
192.6
|
|
|
0.1
|
|
|
192.5
|
|
|
—
|
|
Equity securities
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
Investments in fixed income funds*
|
64.9
|
|
|
64.9
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds*
|
46.3
|
|
|
—
|
|
|
—
|
|
|
46.3
|
|
Total investments at fair value
|
304.8
|
|
|
66.0
|
|
|
192.5
|
|
|
46.3
|
|
|
As of December 31, 2014
|
||||||||||
$ in millions
|
Fair
Value
Measurements
|
|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||
Investments:
|
|
|
|
|
|
|
|
||||
Fixed income securities
|
200.3
|
|
|
—
|
|
|
200.3
|
|
|
—
|
|
Investments in fixed income funds*
|
58.0
|
|
|
58.0
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds*
|
30.2
|
|
|
—
|
|
|
—
|
|
|
30.2
|
|
Total investments at fair value
|
288.5
|
|
|
58.0
|
|
|
200.3
|
|
|
30.2
|
|
*
|
Investments in fixed income funds and other private equity funds are valued using the net asset value (NAV) as a practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date. Refer to Note
13
, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds.
|
|
|
As of September 30, 2015
|
||||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
||
Fixed income funds
|
|
64.9
|
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
46.3
|
|
28.6
|
|
7.8 years
|
|
n/a
(2)
|
|
n/a
(2)
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
As of December 31, 2014
|
||||||||||
|
|
Fair Value
($ in millions)
|
|
Total Unfunded Commitments ($ in millions)
|
|
Weighted Average Remaining Term
(1)
|
|
Redemption Frequency
|
|
Redemption Notice Period
|
||
Fixed income funds
|
|
58.0
|
|
|
—
|
|
|
n/a
|
|
Monthly
|
|
10 days
|
Private equity fund of funds
|
|
30.2
|
|
|
35.0
|
|
|
7.6 years
|
|
n/a
(2)
|
|
n/a
(2)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Beginning balance
|
42.3
|
|
|
24.1
|
|
|
30.2
|
|
|
16.2
|
|
Purchases
|
2.2
|
|
|
3.0
|
|
|
7.2
|
|
|
7.0
|
|
Sales
|
(0.9
|
)
|
|
(0.2
|
)
|
|
(2.2
|
)
|
|
(0.5
|
)
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
2.7
|
|
|
0.3
|
|
|
11.1
|
|
|
4.5
|
|
Ending balance
|
46.3
|
|
|
27.2
|
|
|
46.3
|
|
|
27.2
|
|
*
|
Included in other income/(expense) of CSIP, net, in the Condensed Consolidated Statement of Income for the
three and nine months ended
September 30, 2015
are
$2.7 million
and
$11.1 million
in net unrealized gains attributable to investments still held at
September 30, 2015
(
three and nine months ended
September 30, 2014
:
$0.3 million
and
$4.5 million
respectively).
|
|
As of
|
||||
$ in millions
|
September 30, 2015
|
|
December 31, 2014
|
||
Cash and cash equivalents of CIP
|
587.5
|
|
|
404.0
|
|
Accounts receivable and other assets of CIP
|
135.6
|
|
|
161.3
|
|
Investments of CIP
|
6,119.9
|
|
|
5,762.8
|
|
Less: Debt of CIP
|
(5,669.7
|
)
|
|
(5,149.6
|
)
|
Less: Other liabilities of CIP
|
(338.1
|
)
|
|
(280.9
|
)
|
Less: Retained earnings
|
0.7
|
|
|
(20.3
|
)
|
Less: Retained earnings appropriated for investors in CIP
|
—
|
|
|
(17.6
|
)
|
Less: Accumulated other comprehensive income, net of tax
|
(0.7
|
)
|
|
20.2
|
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(745.0
|
)
|
|
(781.2
|
)
|
Invesco's net interests in CIP
|
90.2
|
|
|
98.7
|
|
Invesco's net economic interests as a percentage of investments of CIP
|
1.5
|
%
|
|
1.7
|
%
|
$ in millions
|
Footnote Reference
|
|
Carrying Value
|
|
Company's Maximum Risk of Loss
|
||
CLO investments
|
3
|
|
1.1
|
|
|
1.1
|
|
Partnership and trust investments
|
|
|
19.6
|
|
|
19.6
|
|
Investments in Invesco Mortgage Capital Inc.
|
|
|
28.7
|
|
|
28.7
|
|
Total
|
|
|
|
|
49.4
|
|
|
For the nine months ended September 30, 2015
|
||||
$ in millions
|
VIEs
|
|
VOEs
|
||
Cash and cash equivalents of CIP
|
449.8
|
|
|
10.0
|
|
Accounts receivable and other assets of CIP
|
5.6
|
|
|
—
|
|
Investments of CIP
|
1,009.5
|
|
|
49.9
|
|
Total assets
|
1,464.9
|
|
|
59.9
|
|
|
|
|
|
||
Debt of CIP
|
1,100.4
|
|
|
—
|
|
Other liabilities of CIP
|
364.5
|
|
|
—
|
|
Total liabilities
|
1,464.9
|
|
|
—
|
|
Total equity
|
—
|
|
|
59.9
|
|
Total liabilities and equity
|
1,464.9
|
|
|
59.9
|
|
|
As of September 30, 2015
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)
|
|
Impact of CIP
|
|||||
Accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
|
(4.2
|
)
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(86.0
|
)
|
|
(86.0
|
)
|
Cash and cash equivalents of CIP
|
559.4
|
|
|
5.1
|
|
|
22.6
|
|
|
0.4
|
|
|
587.5
|
|
Accounts receivable of CIP
|
124.4
|
|
|
0.1
|
|
|
11.1
|
|
|
—
|
|
|
135.6
|
|
Investments of CIP
|
5,449.6
|
|
|
78.5
|
|
|
695.9
|
|
|
(104.1
|
)
|
|
6,119.9
|
|
Total assets
|
6,133.4
|
|
|
83.7
|
|
|
729.6
|
|
|
(193.9
|
)
|
|
6,752.8
|
|
Debt of CIP
|
5,795.5
|
|
|
—
|
|
|
—
|
|
|
(125.8
|
)
|
|
5,669.7
|
|
Other liabilities of CIP
|
337.9
|
|
|
1.1
|
|
|
3.3
|
|
|
(4.2
|
)
|
|
338.1
|
|
Total liabilities
|
6,133.4
|
|
|
1.1
|
|
|
3.3
|
|
|
(130.0
|
)
|
|
6,007.8
|
|
Retained earnings
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
Accumulated other comprehensive income, net of tax
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
—
|
|
|
82.6
|
|
|
726.3
|
|
|
(63.9
|
)
|
|
745.0
|
|
Total liabilities and equity
|
6,133.4
|
|
|
83.7
|
|
|
729.6
|
|
|
(193.9
|
)
|
|
6,752.8
|
|
(1)
|
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity funds) or subordinated debt (CLOs) of the funds.
|
|
As of December 31, 2014
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(1)
|
|
Impact of CIP
|
|||||
Accounts receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|
(3.8
|
)
|
Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.9
|
)
|
|
(94.9
|
)
|
Cash and cash equivalents of CIP
|
378.8
|
|
|
5.0
|
|
|
21.5
|
|
|
(1.3
|
)
|
|
404.0
|
|
Accounts receivable of CIP
|
155.7
|
|
|
0.1
|
|
|
5.5
|
|
|
—
|
|
|
161.3
|
|
Investments of CIP
|
5,063.5
|
|
|
53.4
|
|
|
730.2
|
|
|
(84.3
|
)
|
|
5,762.8
|
|
Total assets
|
5,598.0
|
|
|
58.5
|
|
|
757.2
|
|
|
(184.3
|
)
|
|
6,229.4
|
|
Debt of CIP
|
5,302.9
|
|
|
—
|
|
|
—
|
|
|
(153.3
|
)
|
|
5,149.6
|
|
Other liabilities of CIP
|
277.4
|
|
|
0.4
|
|
|
6.9
|
|
|
(3.8
|
)
|
|
280.9
|
|
Total liabilities
|
5,580.3
|
|
|
0.4
|
|
|
6.9
|
|
|
(157.1
|
)
|
|
5,430.5
|
|
Retained earnings
|
20.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.3
|
|
Retained earnings appropriated for investors in CIP
|
17.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.6
|
|
Accumulated other comprehensive income, net of tax
|
(20.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.2
|
)
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
—
|
|
|
58.1
|
|
|
750.3
|
|
|
(27.2
|
)
|
|
781.2
|
|
Total liabilities and equity
|
5,598.0
|
|
|
58.5
|
|
|
757.2
|
|
|
(184.3
|
)
|
|
6,229.4
|
|
(1)
|
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity and real estate partnership funds) or subordinated debt (CLOs) of the funds.
|
|
Three months ended September 30, 2015
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.5
|
)
|
|
(9.5
|
)
|
Total operating expenses
|
16.8
|
|
|
0.1
|
|
|
1.3
|
|
|
(9.5
|
)
|
|
8.7
|
|
Operating income
|
(16.8
|
)
|
|
(0.1
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(18.2
|
)
|
Equity in earnings of unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
Interest and dividend income
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
(1.5
|
)
|
Other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest and dividend income of CIP
|
69.2
|
|
|
—
|
|
|
0.2
|
|
|
(4.7
|
)
|
|
64.7
|
|
Interest expense of CIP
|
(52.1
|
)
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
(45.9
|
)
|
Other gains/(losses) of CIP, net
|
(0.3
|
)
|
|
1.5
|
|
|
(5.3
|
)
|
|
(13.2
|
)
|
|
(17.3
|
)
|
Income from continuing operations before income taxes
|
—
|
|
|
1.4
|
|
|
(6.4
|
)
|
|
(13.0
|
)
|
|
(18.0
|
)
|
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
—
|
|
|
1.4
|
|
|
(6.4
|
)
|
|
(13.0
|
)
|
|
(18.0
|
)
|
Income from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
—
|
|
|
1.4
|
|
|
(6.4
|
)
|
|
(13.0
|
)
|
|
(18.0
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
—
|
|
|
(1.3
|
)
|
|
6.1
|
|
|
—
|
|
|
4.8
|
|
Net income attributable to Invesco Ltd.
|
—
|
|
|
0.1
|
|
|
(0.3
|
)
|
|
(13.0
|
)
|
|
(13.2
|
)
|
|
Three months ended September 30, 2014
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(8.7
|
)
|
|
(8.6
|
)
|
Total operating expenses
|
17.6
|
|
|
0.3
|
|
|
2.1
|
|
|
(8.7
|
)
|
|
11.3
|
|
Operating income
|
(17.6
|
)
|
|
(0.2
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
(19.9
|
)
|
Equity in earnings of unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Interest and dividend income
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
Other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest and dividend income of CIP
|
57.9
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
53.4
|
|
Interest expense of CIP
|
(42.7
|
)
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
(37.5
|
)
|
Other gains/ (losses) of CIP, net
|
(4.4
|
)
|
|
0.8
|
|
|
1.4
|
|
|
2.3
|
|
|
0.1
|
|
Income from continuing operations before income taxes
|
(6.8
|
)
|
|
0.6
|
|
|
(0.7
|
)
|
|
1.6
|
|
|
(5.3
|
)
|
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
(6.8
|
)
|
|
0.6
|
|
|
(0.7
|
)
|
|
1.6
|
|
|
(5.3
|
)
|
Income from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
(6.8
|
)
|
|
0.6
|
|
|
(0.7
|
)
|
|
1.6
|
|
|
(5.3
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
6.9
|
|
|
(0.5
|
)
|
|
1.3
|
|
|
—
|
|
|
7.7
|
|
Net income attributable to Invesco Ltd.
|
0.1
|
|
|
0.1
|
|
|
0.6
|
|
|
1.6
|
|
|
2.4
|
|
|
Nine months ended September 30, 2015
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.2
|
)
|
|
(29.2
|
)
|
Total operating expenses
|
46.9
|
|
|
0.7
|
|
|
4.0
|
|
|
(29.2
|
)
|
|
22.4
|
|
Operating income
|
(46.9
|
)
|
|
(0.7
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
(51.6
|
)
|
Equity in earnings of unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
Interest and dividend income
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
|
(3.7
|
)
|
Other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|
(3.9
|
)
|
Interest and dividend income of CIP
|
204.1
|
|
|
—
|
|
|
1.1
|
|
|
(15.2
|
)
|
|
190.0
|
|
Interest expense of CIP
|
(157.2
|
)
|
|
—
|
|
|
—
|
|
|
18.9
|
|
|
(138.3
|
)
|
Other gains/(losses) of CIP, net
|
—
|
|
|
6.3
|
|
|
(2.2
|
)
|
|
(16.7
|
)
|
|
(12.6
|
)
|
Income from continuing operations before income taxes
|
—
|
|
|
5.6
|
|
|
(5.1
|
)
|
|
(21.6
|
)
|
|
(21.1
|
)
|
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
—
|
|
|
5.6
|
|
|
(5.1
|
)
|
|
(21.6
|
)
|
|
(21.1
|
)
|
Income from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
—
|
|
|
5.6
|
|
|
(5.1
|
)
|
|
(21.6
|
)
|
|
(21.1
|
)
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
—
|
|
|
(5.4
|
)
|
|
5.5
|
|
|
—
|
|
|
0.1
|
|
Net income attributable to Invesco Ltd.
|
—
|
|
|
0.2
|
|
|
0.4
|
|
|
(21.6
|
)
|
|
(21.0
|
)
|
|
Nine months ended September 30, 2014
|
|||||||||||||
$ in millions
|
CLOs - VIEs
|
|
Other VIEs
|
|
VOEs
|
|
Adjustments
(2)
|
|
Impact of CIP
|
|||||
Total operating revenues
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(25.8
|
)
|
|
(25.6
|
)
|
Total operating expenses
|
44.4
|
|
|
0.8
|
|
|
6.2
|
|
|
(25.8
|
)
|
|
25.6
|
|
Operating income
|
(44.4
|
)
|
|
(0.6
|
)
|
|
(6.2
|
)
|
|
—
|
|
|
(51.2
|
)
|
Equity in earnings of unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
(4.1
|
)
|
Interest and dividend income
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|
(2.2
|
)
|
Other gains and losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
Interest and dividend income of CIP
|
159.9
|
|
|
—
|
|
|
—
|
|
|
(10.2
|
)
|
|
149.7
|
|
Interest expense of CIP
|
(110.6
|
)
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|
(98.1
|
)
|
Other gains/ (losses) of CIP, net
|
(51.6
|
)
|
|
(0.5
|
)
|
|
105.3
|
|
|
10.2
|
|
|
63.4
|
|
Income from continuing operations before income taxes
|
(46.7
|
)
|
|
(1.1
|
)
|
|
99.1
|
|
|
1.5
|
|
|
52.8
|
|
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations, net of income taxes
|
(46.7
|
)
|
|
(1.1
|
)
|
|
99.1
|
|
|
1.5
|
|
|
52.8
|
|
Income from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
(46.7
|
)
|
|
(1.1
|
)
|
|
99.1
|
|
|
1.5
|
|
|
52.8
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
46.9
|
|
|
1.2
|
|
|
(95.2
|
)
|
|
—
|
|
|
(47.1
|
)
|
Net income attributable to Invesco Ltd.
|
0.2
|
|
|
0.1
|
|
|
3.9
|
|
|
1.5
|
|
|
5.7
|
|
(2)
|
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of management and performance fees expensed by the funds and recorded as operating revenues (before consolidation) by the company. These also include the reclassification of the company's gain or loss (representing the changes in the fair value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses upon consolidation.
|
|
As of September 30, 2015
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||
Assets:
|
|
|
|
|
|
|
|
||||
CLO collateral assets:
|
|
|
|
|
|
|
|
||||
Bank loans
|
5,317.6
|
|
|
—
|
|
|
5,317.6
|
|
|
—
|
|
Bonds
|
71.8
|
|
|
—
|
|
|
71.8
|
|
|
—
|
|
Equity securities
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
317.4
|
|
|
12.6
|
|
|
—
|
|
|
304.8
|
|
Debt securities
|
28.1
|
|
|
—
|
|
|
—
|
|
|
28.1
|
|
Investments in other private equity funds
|
384.1
|
|
|
—
|
|
|
—
|
|
|
384.1
|
|
Total assets at fair value
|
6,119.9
|
|
|
12.6
|
|
|
5,390.3
|
|
|
717.0
|
|
|
As of December 31, 2014
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
||||
Assets:
|
|
|
|
|
|
|
|
||||
CLO collateral assets:
|
|
|
|
|
|
|
|
||||
Bank loans
|
4,883.9
|
|
|
—
|
|
|
4,883.9
|
|
|
—
|
|
Bonds
|
88.9
|
|
|
—
|
|
|
88.9
|
|
|
—
|
|
Equity securities
|
6.4
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
Private equity fund assets:
|
|
|
|
|
|
|
|
||||
Equity securities
|
337.9
|
|
|
9.7
|
|
|
—
|
|
|
328.2
|
|
Debt Securities
|
35.7
|
|
|
—
|
|
|
—
|
|
|
35.7
|
|
Investments in other private equity funds
|
410.0
|
|
|
—
|
|
|
—
|
|
|
410.0
|
|
Total assets at fair value
|
5,762.8
|
|
|
9.7
|
|
|
4,979.2
|
|
|
773.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
CLO notes
|
(5,149.6
|
)
|
|
—
|
|
|
—
|
|
|
(5,149.6
|
)
|
Total liabilities at fair value
|
(5,149.6
|
)
|
|
—
|
|
|
—
|
|
|
(5,149.6
|
)
|
|
Three months ended September 30, 2015
|
|
Nine months ended September 30, 2015
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
711.7
|
|
|
—
|
|
|
773.9
|
|
|
(5,149.6
|
)
|
Adjustment for adoption of ASU 2014-13
|
—
|
|
|
—
|
|
|
—
|
|
|
5,149.6
|
|
Purchases
|
38.6
|
|
|
—
|
|
|
72.7
|
|
|
—
|
|
Sales
|
(32.3
|
)
|
|
—
|
|
|
(129.2
|
)
|
|
—
|
|
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
(1.0
|
)
|
|
—
|
|
|
8.0
|
|
|
—
|
|
Transfers to Levels 1 and 2**
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
|
—
|
|
Ending balance
|
717.0
|
|
|
—
|
|
|
717.0
|
|
|
—
|
|
|
Three months ended September 30, 2014
|
|
Nine months ended September 30, 2014
|
||||||||
$ in millions
|
Level 3 Assets
|
|
Level 3 Liabilities
|
|
Level 3 Assets
|
|
Level 3 Liabilities
|
||||
Beginning balance
|
691.1
|
|
|
(4,301.5
|
)
|
|
500.9
|
|
|
(4,181.7
|
)
|
Purchases
|
58.9
|
|
|
—
|
|
|
198.4
|
|
|
—
|
|
Sales
|
(53.7
|
)
|
|
—
|
|
|
(104.1
|
)
|
|
—
|
|
Issuances
|
—
|
|
|
(624.8
|
)
|
|
1.8
|
|
|
(1,338.9
|
)
|
Settlements
|
—
|
|
|
212.5
|
|
|
—
|
|
|
510.2
|
|
Deconsolidation of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
339.0
|
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
6.3
|
|
|
3.5
|
|
|
105.6
|
|
|
(38.9
|
)
|
Ending balance
|
702.6
|
|
|
(4,710.3
|
)
|
|
702.6
|
|
|
(4,710.3
|
)
|
*
|
Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the
three and nine months ended
September 30, 2015
are
$18.5 million
and
$63.4 million
in net unrealized losses attributable to investments still held at
September 30, 2015
by CIP (
three and nine months ended
September 30, 2014
:
$26.4 million
in net unrealized losses and
$55.8 million
in net unrealized gains attributable to investments still held at
September 30, 2014
).
|
**
|
During the
nine months ended
September 30, 2015
,
$7.8 million
(
nine months ended
September 30, 2014
:
zero
) of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 2 due to the legal lock up requirements of of securities following the public offering of the underlying companies. During the
nine months ended
September 30, 2015
,
$0.6 million
(
nine months ended
September 30, 2014
:
zero
) of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 1 following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period.
|
Assets and Liabilities *
|
|
Fair Value at
September 30, 2015
($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
280.7
|
|
Market Comparable
|
|
Revenue Multiple
|
|
2 - 4x
|
|
3.0x
|
|
|
|
|
|
|
Discount
|
|
25 - 50%
|
|
25.0%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$25-100 million
|
|
$45.5 million
|
Assets and Liabilities *
|
|
Fair Value at
December 31, 2014
($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
|
Weighted Average (by fair value)
|
Private Equity Funds --Equity Securities
|
|
273.2
|
|
Market Comparable
|
|
Revenue Multiple
|
|
2 - 4x
|
|
4.0x
|
|
|
|
|
|
|
Discount
|
|
25% - 36%
|
|
30.9%
|
|
|
|
|
|
|
Published valuation and/or broker quotes for similar types of assets
|
|
$27-104 million
|
|
$45.9 million
|
CLO Notes
|
|
(5,149.6)
|
|
Discounted Cash Flow- USD
|
|
Assumed Default Rate***
|
|
0.4% - 2.3%
|
|
<1yr: 0.4% >1yr: 2.3%
|
|
|
|
|
|
|
Spread over Libor **
|
|
102 - 801bps
|
|
228 bps
|
*
|
Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions (
September 30, 2015
:
$51.2 million
;
December 31, 2014
:
$85.0 million
) and third party appraisals (
September 30, 2015
:
$1.0 million
;
December 31, 2014
:
$5.7 million
). At
December 31, 2014
, certain tranches of the consolidated CLOs are valued using third party pricing information. Quantitative unobservable inputs for such valuations were not developed or adjusted by the
company. Investments in other private equity funds as of
September 30, 2015
of
$384.1 million
(as of
December 31, 2014
:
$410.0 million
) are also excluded from the table above as they are valued using the NAV practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date.
|
**
|
Lower spreads relate to the more senior tranches in the CLO note structure; higher spreads relate to the less senior tranches.
|
***
|
Assumed default rates listed in the table above apply to CLOs established prior to 2012. A default rate of
2.0%
was assumed for CLOs established after January 1, 2012.
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||
in millions, except term data
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
||||
Private equity funds
(1)
|
|
$384.1
|
|
$213.6
|
|
2.6 years
|
|
|
$410.0
|
|
|
|
$196.3
|
|
|
2.6 years
|
(1)
|
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.
|
(2)
|
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
|
•
|
For investments held by consolidated private equity funds, significant increases in discounts in isolation would result in significantly lower fair value measurements, while significant increases in revenue multiple assumptions in isolation would result in significantly higher fair value measurements. An increase in discount assumptions would result in a directionally opposite change in the assumptions for revenue multiple resulting in lower fair value measurements.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Affiliated operating revenues:
|
|
|
|
|
|
|
|
||||
Investment management fees
|
892.7
|
|
|
935.7
|
|
|
2,701.8
|
|
|
2,714.6
|
|
Service and distribution fees
|
214.8
|
|
|
218.8
|
|
|
646.4
|
|
|
665.5
|
|
Performance fees
|
7.4
|
|
|
5.4
|
|
|
19.7
|
|
|
33.5
|
|
Other
|
25.3
|
|
|
29.9
|
|
|
83.3
|
|
|
91.3
|
|
Total affiliated operating revenues
|
1,140.2
|
|
|
1,189.8
|
|
|
3,451.2
|
|
|
3,504.9
|
|
$ in millions
|
September 30, 2015
|
|
December 31, 2014
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
238.4
|
|
|
474.9
|
|
Unsettled fund receivables
|
349.8
|
|
|
254.2
|
|
Accounts receivable
|
340.6
|
|
|
332.9
|
|
Investments
|
898.4
|
|
|
848.8
|
|
Assets held for policyholders
|
5,500.1
|
|
|
1,697.5
|
|
Other assets
|
2.9
|
|
|
7.9
|
|
Total affiliated asset balances
|
7,330.2
|
|
|
3,616.2
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
113.7
|
|
|
138.8
|
|
Accounts payable and accrued expenses
|
66.4
|
|
|
61.9
|
|
Unsettled fund payables
|
287.3
|
|
|
322.1
|
|
Total affiliated liability balances
|
467.4
|
|
|
522.8
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
Equity Index
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
S&P 500
|
(6.9
|
)%
|
|
0.6
|
%
|
|
(6.7
|
)%
|
|
6.7
|
%
|
FTSE 100
|
(7.0
|
)%
|
|
(1.8
|
)%
|
|
(7.7
|
)%
|
|
(1.9
|
)%
|
Nikkei 225
|
(14.1
|
)%
|
|
6.7
|
%
|
|
(0.4
|
)%
|
|
(0.7
|
)%
|
MSCI Emerging Markets
|
(18.5
|
)%
|
|
(4.3
|
)%
|
|
(17.2
|
)%
|
|
0.3
|
%
|
Bond Index
|
|
|
|
|
|
|
|
||||
Barclays U.S. Aggregate Bond
|
1.2
|
%
|
|
0.2
|
%
|
|
1.1
|
%
|
|
4.1
|
%
|
•
|
Results of Operations (
three and nine months ended
September 30, 2015
compared to
three and nine months ended
September 30, 2014
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins, ratios and AUM
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
U.S. GAAP Financial Measures Summary
(1)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Operating revenues
|
1,273.5
|
|
|
1,311.0
|
|
|
3,883.2
|
|
|
3,870.4
|
|
Operating income
|
352.7
|
|
|
329.6
|
|
|
1,054.8
|
|
|
928.7
|
|
Operating margin
|
27.7
|
%
|
|
25.1
|
%
|
|
27.2
|
%
|
|
24.0
|
%
|
Net income attributable to Invesco Ltd.
|
249.3
|
|
|
256.0
|
|
|
766.2
|
|
|
718.3
|
|
Diluted EPS
|
0.58
|
|
|
0.59
|
|
|
1.78
|
|
|
1.65
|
|
Debt/equity ratio including CIP (%)
|
83.1
|
%
|
|
68.9
|
%
|
|
83.1
|
%
|
|
68.9
|
%
|
|
|
|
|
|
|
|
|
||||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|
|
||||
Net revenues
(2)
|
903.0
|
|
|
913.7
|
|
|
2,757.1
|
|
|
2,702.5
|
|
Adjusted operating income
(3)
|
373.4
|
|
|
381.9
|
|
|
1,138.0
|
|
|
1,121.9
|
|
Adjusted operating margin
(3)
|
41.4
|
%
|
|
41.8
|
%
|
|
41.3
|
%
|
|
41.5
|
%
|
Adjusted net income attributable to Invesco Ltd.
(4)
|
261.4
|
|
|
278.2
|
|
|
804.9
|
|
|
822.2
|
|
Adjusted diluted EPS
(4)
|
0.61
|
|
|
0.64
|
|
|
1.87
|
|
|
1.88
|
|
Debt/equity ratio excluding CIP (%)
(5)
|
20.8
|
%
|
|
18.9
|
%
|
|
20.8
|
%
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
||||
Assets Under Management
|
|
|
|
|
|
|
|
||||
Ending AUM (billions)
|
755.8
|
|
|
789.6
|
|
|
755.8
|
|
|
789.6
|
|
Average AUM (billions)
|
788.9
|
|
|
801.7
|
|
|
798.4
|
|
|
790.5
|
|
(1)
|
On December 31, 2013, the company completed the sale of Atlantic Trust. The company has adopted a discontinued operations presentation for the disposed business. Amounts presented represent continuing operations and exclude Atlantic Trust, with the exception of net income attributable to Invesco Ltd. and diluted earnings per share.
|
(2)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by CIP. See "Schedule of Non-GAAP Information," for the reconciliation of operating revenues to net revenues.
|
(3)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, acquisition/disposition-related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(4)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the impact of CIP on net income attributable to Invesco Ltd., add back acquisition/disposition related adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-effected in arriving at adjusted net income attributable to Invesco Ltd.. By calculation, adjusted diluted EPS is adjusted net income attributable to Invesco Ltd. divided by the weighted average number of shares outstanding (for diluted EPS). See "Schedule of Non-GAAP Information," for the reconciliation of net income attributable to Invesco Ltd. to adjusted net income attributable to Invesco Ltd.
|
(5)
|
The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. See the "Liquidity and Capital Resources" section for a recalculation of this ratio and other important disclosures.
|
|
Benchmark Comparison
|
|
Peer Group Comparison
|
||||||||||
|
% of AUM Ahead of Benchmark
|
|
% of AUM In Top Half of Peer Group
|
||||||||||
|
1yr
|
3yr
|
5yr
|
|
1yr
|
3yr
|
5yr
|
||||||
Equities
|
|
|
|
|
|
|
|
||||||
U.S. Core
|
4
|
%
|
20
|
%
|
37
|
%
|
|
4
|
%
|
19
|
%
|
30
|
%
|
U.S. Growth
|
18
|
%
|
95
|
%
|
26
|
%
|
|
14
|
%
|
48
|
%
|
26
|
%
|
U.S. Value
|
24
|
%
|
88
|
%
|
77
|
%
|
|
24
|
%
|
51
|
%
|
98
|
%
|
Sector Funds
|
20
|
%
|
59
|
%
|
76
|
%
|
|
4
|
%
|
8
|
%
|
10
|
%
|
U.K.
|
99
|
%
|
100
|
%
|
100
|
%
|
|
92
|
%
|
100
|
%
|
100
|
%
|
Canadian
|
19
|
%
|
24
|
%
|
55
|
%
|
|
19
|
%
|
34
|
%
|
42
|
%
|
Asian
|
57
|
%
|
88
|
%
|
88
|
%
|
|
30
|
%
|
67
|
%
|
68
|
%
|
European
|
98
|
%
|
98
|
%
|
100
|
%
|
|
51
|
%
|
93
|
%
|
100
|
%
|
Global
|
50
|
%
|
70
|
%
|
87
|
%
|
|
62
|
%
|
79
|
%
|
86
|
%
|
Global Ex U.S. and Emerging Markets
|
88
|
%
|
88
|
%
|
98
|
%
|
|
8
|
%
|
7
|
%
|
89
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
69
|
%
|
69
|
%
|
69
|
%
|
|
94
|
%
|
96
|
%
|
96
|
%
|
U.S. Fixed Income
|
87
|
%
|
92
|
%
|
92
|
%
|
|
92
|
%
|
82
|
%
|
91
|
%
|
Global Fixed Income
|
53
|
%
|
92
|
%
|
96
|
%
|
|
17
|
%
|
94
|
%
|
65
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
85
|
%
|
74
|
%
|
72
|
%
|
|
59
|
%
|
65
|
%
|
62
|
%
|
Balanced
|
71
|
%
|
42
|
%
|
45
|
%
|
|
52
|
%
|
91
|
%
|
99
|
%
|
(1)
|
AUM measured in the one-, three-, and five-year peer group rankings represents
60%
,
58%
, and
57%
of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents
72%
,
70%
, and
68%
of total Invesco AUM, respectively, as of
September 30, 2015
. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IMA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each Global Investment Performance Standard (GIPS) composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts, fund-of-funds with component funds managed by Invesco, stable value building block funds, and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience.
|
|
For the three months ended September 30,
|
||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
June 30
|
803.6
|
|
|
662.0
|
|
|
141.6
|
|
|
802.4
|
|
|
656.6
|
|
|
145.8
|
|
Long-term inflows
|
43.5
|
|
|
36.7
|
|
|
6.8
|
|
|
44.4
|
|
|
36.2
|
|
|
8.2
|
|
Long-term outflows
|
(47.4
|
)
|
|
(38.3
|
)
|
|
(9.1
|
)
|
|
(38.4
|
)
|
|
(30.2
|
)
|
|
(8.2
|
)
|
Long-term net flows
|
(3.9
|
)
|
|
(1.6
|
)
|
|
(2.3
|
)
|
|
6.0
|
|
|
6.0
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(3.2
|
)
|
Net flows in institutional money market funds
|
(1.5
|
)
|
|
(1.6
|
)
|
|
0.1
|
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|
—
|
|
Total net flows
|
(6.3
|
)
|
|
(3.2
|
)
|
|
(3.1
|
)
|
|
2.0
|
|
|
5.2
|
|
|
(3.2
|
)
|
Market gains and losses/reinvestment
|
(35.6
|
)
|
|
(28.8
|
)
|
|
(6.8
|
)
|
|
(5.1
|
)
|
|
(4.8
|
)
|
|
(0.3
|
)
|
Foreign currency translation
|
(5.9
|
)
|
|
(5.9
|
)
|
|
—
|
|
|
(9.7
|
)
|
|
(9.5
|
)
|
|
(0.2
|
)
|
September 30
|
755.8
|
|
|
624.1
|
|
|
131.7
|
|
|
789.6
|
|
|
647.5
|
|
|
142.1
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
685.5
|
|
|
585.9
|
|
|
99.6
|
|
|
683.4
|
|
|
582.5
|
|
|
100.9
|
|
Average AUM
|
788.9
|
|
|
650.5
|
|
|
138.4
|
|
|
801.7
|
|
|
655.0
|
|
|
146.7
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(1)
|
65.1
|
|
|
75.8
|
|
|
14.9
|
|
|
65.8
|
|
|
77.8
|
|
|
13.0
|
|
Gross revenue yield on AUM before performance fees
(1)
|
64.3
|
|
|
74.9
|
|
|
14.9
|
|
|
65.4
|
|
|
77.3
|
|
|
13.0
|
|
Net revenue yield on AUM
(2)
|
45.8
|
|
|
52.4
|
|
|
14.9
|
|
|
45.6
|
|
|
52.9
|
|
|
13.0
|
|
Net revenue yield on AUM before performance fees
(2)
|
44.9
|
|
|
51.3
|
|
|
14.9
|
|
|
45.1
|
|
|
52.3
|
|
|
13.0
|
|
|
For the nine months ended September 30,
|
||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
January 1
|
792.4
|
|
|
651.0
|
|
|
141.4
|
|
|
778.7
|
|
|
639.0
|
|
|
139.7
|
|
Long-term inflows
|
146.1
|
|
|
120.4
|
|
|
25.7
|
|
|
137.1
|
|
|
113.9
|
|
|
23.2
|
|
Long-term outflows
|
(133.8
|
)
|
|
(109.8
|
)
|
|
(24.0
|
)
|
|
(131.5
|
)
|
|
(112.7
|
)
|
|
(18.8
|
)
|
Long-term net flows
|
12.3
|
|
|
10.6
|
|
|
1.7
|
|
|
5.6
|
|
|
1.2
|
|
|
4.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
—
|
|
|
(3.8
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
(7.5
|
)
|
Net flows in institutional money market funds
|
(10.1
|
)
|
|
(10.2
|
)
|
|
0.1
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
|
—
|
|
Total net flows
|
(1.6
|
)
|
|
0.4
|
|
|
(2.0
|
)
|
|
(7.7
|
)
|
|
(4.6
|
)
|
|
(3.1
|
)
|
Market gains and losses/reinvestment
|
(26.0
|
)
|
|
(19.0
|
)
|
|
(7.0
|
)
|
|
24.2
|
|
|
18.5
|
|
|
5.7
|
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(8.3
|
)
|
|
(8.3
|
)
|
|
—
|
|
|
(5.6
|
)
|
|
(5.4
|
)
|
|
(0.2
|
)
|
September 30
|
755.8
|
|
|
624.1
|
|
|
131.7
|
|
|
789.6
|
|
|
647.5
|
|
|
142.1
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
692.2
|
|
|
589.6
|
|
|
102.6
|
|
|
672.6
|
|
|
574.0
|
|
|
98.6
|
|
Average AUM
|
798.4
|
|
|
656.7
|
|
|
141.7
|
|
|
790.5
|
|
|
647.4
|
|
|
143.1
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(1)
|
65.3
|
|
|
76.4
|
|
|
14.5
|
|
|
65.7
|
|
|
77.4
|
|
|
13.0
|
|
Gross revenue yield on AUM before performance fees
(1)
|
64.2
|
|
|
75.0
|
|
|
14.5
|
|
|
64.9
|
|
|
76.5
|
|
|
13.0
|
|
Net revenue yield on AUM
(2)
|
46.0
|
|
|
52.9
|
|
|
14.5
|
|
|
45.6
|
|
|
52.8
|
|
|
13.0
|
|
Net revenue yield on AUM before performance fees
(2)
|
44.7
|
|
|
51.2
|
|
|
14.5
|
|
|
44.7
|
|
|
51.7
|
|
|
13.0
|
|
(1)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the
three months ended
September 30, 2015
for our JVs in China was
$6.0 billion
(
three months ended
September 30, 2014
:
$5.1 billion
). Our share of the average AUM in the
nine months ended
September 30, 2015
for our JVs in China was $6.0 billion (
nine months ended
September 30, 2014
:
$5.0 billion
). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income. Additionally, the numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM.
|
(2)
|
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.
|
Foreign Exchange Rates
|
September 30, 2015
|
|
June 30, 2015
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||
Pound Sterling ($ per £)
|
1.515
|
|
|
1.572
|
|
|
1.559
|
|
|
1.622
|
|
|
1.710
|
|
|
1.655
|
|
Canadian Dollar (CAD per $)
|
1.341
|
|
|
1.247
|
|
|
1.158
|
|
|
1.118
|
|
|
1.066
|
|
|
1.063
|
|
Japan (¥ per $)
|
119.775
|
|
|
122.145
|
|
|
119.880
|
|
|
109.680
|
|
|
101.310
|
|
|
105.080
|
|
Euro ($ per Euro)
|
1.116
|
|
|
1.115
|
|
|
1.210
|
|
|
1.262
|
|
|
1.369
|
|
|
1.378
|
|
$ 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
|
|
|
|
|
|
|
|
|||
June 30, 2014
|
802.4
|
|
|
544.8
|
|
|
257.6
|
|
Long-term inflows
|
44.4
|
|
|
34.8
|
|
|
9.6
|
|
Long-term outflows
|
(38.4
|
)
|
|
(30.0
|
)
|
|
(8.4
|
)
|
Long-term net flows
|
6.0
|
|
|
4.8
|
|
|
1.2
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
Total net flows
|
2.0
|
|
|
1.6
|
|
|
0.4
|
|
Market gains and losses/reinvestment
|
(5.1
|
)
|
|
(7.0
|
)
|
|
1.9
|
|
Foreign currency translation
|
(9.7
|
)
|
|
(7.2
|
)
|
|
(2.5
|
)
|
September 30, 2014
|
789.6
|
|
|
532.2
|
|
|
257.4
|
|
$ 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
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
Foreign currency translation
|
(8.3
|
)
|
|
(6.4
|
)
|
|
(1.9
|
)
|
September 30, 2015
|
755.8
|
|
|
499.4
|
|
|
256.4
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
778.7
|
|
|
519.6
|
|
|
259.1
|
|
Long-term inflows
|
137.1
|
|
|
110.7
|
|
|
26.4
|
|
Long-term outflows
|
(131.5
|
)
|
|
(106.5
|
)
|
|
(25.0
|
)
|
Long-term net flows
|
5.6
|
|
|
4.2
|
|
|
1.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
Total net flows
|
(7.7
|
)
|
|
(3.3
|
)
|
|
(4.4
|
)
|
Market gains and losses/reinvestment
|
24.2
|
|
|
19.5
|
|
|
4.7
|
|
Foreign currency translation
|
(5.6
|
)
|
|
(3.6
|
)
|
|
(2.0
|
)
|
September 30, 2014
|
789.6
|
|
|
532.2
|
|
|
257.4
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
June 30, 2015
|
141.6
|
|
|
119.7
|
|
|
21.9
|
|
Long-term inflows
|
6.8
|
|
|
6.0
|
|
|
0.8
|
|
Long-term outflows
|
(9.1
|
)
|
|
(7.8
|
)
|
|
(1.3
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(1.8
|
)
|
|
(0.5
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(3.1
|
)
|
|
(2.7
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(6.4
|
)
|
|
(0.4
|
)
|
September 30, 2015
|
131.7
|
|
|
110.6
|
|
|
21.1
|
|
|
|
|
|
|
|
|||
June 30, 2014
|
145.8
|
|
|
123.9
|
|
|
21.9
|
|
Long-term inflows
|
8.2
|
|
|
6.5
|
|
|
1.7
|
|
Long-term outflows
|
(8.2
|
)
|
|
(5.7
|
)
|
|
(2.5
|
)
|
Long-term net flows
|
—
|
|
|
0.8
|
|
|
(0.8
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
Total net flows
|
(3.2
|
)
|
|
(2.4
|
)
|
|
(0.8
|
)
|
Market gains and losses/reinvestment
|
(0.3
|
)
|
|
(0.4
|
)
|
|
0.1
|
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
121.1
|
|
|
21.0
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2014
|
141.4
|
|
|
119.7
|
|
|
21.7
|
|
Long-term inflows
|
25.7
|
|
|
22.5
|
|
|
3.2
|
|
Long-term outflows
|
(24.0
|
)
|
|
(21.2
|
)
|
|
(2.8
|
)
|
Long-term net flows
|
1.7
|
|
|
1.3
|
|
|
0.4
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(2.0
|
)
|
|
(2.5
|
)
|
|
0.5
|
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(5.9
|
)
|
|
(1.1
|
)
|
Acquisitions/dispositions, net
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
110.6
|
|
|
21.1
|
|
|
|
|
|
|
|
|||
December 31, 2013
|
139.7
|
|
|
118.2
|
|
|
21.5
|
|
Long-term inflows
|
23.2
|
|
|
20.0
|
|
|
3.2
|
|
Long-term outflows
|
(18.8
|
)
|
|
(15.2
|
)
|
|
(3.6
|
)
|
Long-term net flows
|
4.4
|
|
|
4.8
|
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
Total net flows
|
(3.1
|
)
|
|
(2.7
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
5.7
|
|
|
5.6
|
|
|
0.1
|
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
121.1
|
|
|
21.0
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
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
|
|
(4)
|
101.0
|
|
Average AUM
|
788.9
|
|
|
379.7
|
|
|
187.1
|
|
|
52.4
|
|
|
69.6
|
|
|
100.1
|
|
% of total average AUM
|
100.0
|
%
|
|
48.1
|
%
|
|
23.7
|
%
|
|
6.6
|
%
|
|
8.8
|
%
|
|
12.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2014
|
802.4
|
|
|
394.2
|
|
|
181.9
|
|
|
52.6
|
|
|
77.1
|
|
|
96.6
|
|
Long-term inflows
|
44.4
|
|
|
22.1
|
|
|
8.3
|
|
|
4.6
|
|
|
1.1
|
|
|
8.3
|
|
Long-term outflows
|
(38.4
|
)
|
|
(19.8
|
)
|
|
(9.0
|
)
|
|
(3.0
|
)
|
|
(0.9
|
)
|
|
(5.7
|
)
|
Long-term net flows
|
6.0
|
|
|
2.3
|
|
|
(0.7
|
)
|
|
1.6
|
|
|
0.2
|
|
|
2.6
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
Total net flows
|
2.0
|
|
|
(0.9
|
)
|
|
(0.7
|
)
|
|
1.6
|
|
|
(0.6
|
)
|
|
2.6
|
|
Market gains and losses/reinvestment
|
(5.1
|
)
|
|
(1.2
|
)
|
|
(0.5
|
)
|
|
(1.4
|
)
|
|
0.1
|
|
|
(2.1
|
)
|
Foreign currency translation
|
(9.7
|
)
|
|
(5.8
|
)
|
|
(1.5
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(1.1
|
)
|
September 30, 2014
|
789.6
|
|
|
386.3
|
|
|
179.2
|
|
|
51.5
|
|
|
76.6
|
|
(4)
|
96.0
|
|
Average AUM
|
801.7
|
|
|
395.1
|
|
|
180.1
|
|
|
52.3
|
|
|
77.0
|
|
|
97.2
|
|
% of total average AUM
|
100.0
|
%
|
|
49.3
|
%
|
|
22.5
|
%
|
|
6.5
|
%
|
|
9.6
|
%
|
|
12.1
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
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
(6)
|
(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
|
|
(4)
|
101.0
|
|
Average AUM
|
798.4
|
|
|
390.5
|
|
|
184.9
|
|
|
51.8
|
|
|
71.4
|
|
|
99.8
|
|
% of total average AUM
|
100.0
|
%
|
|
48.9
|
%
|
|
23.2
|
%
|
|
6.5
|
%
|
|
8.9
|
%
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
383.1
|
|
|
171.7
|
|
|
53.3
|
|
|
82.7
|
|
|
87.9
|
|
Long-term inflows
|
137.1
|
|
|
70.9
|
|
|
26.3
|
|
|
13.9
|
|
|
2.5
|
|
|
23.5
|
|
Long-term outflows
|
(131.5
|
)
|
|
(75.3
|
)
|
|
(21.9
|
)
|
|
(15.8
|
)
|
|
(2.6
|
)
|
|
(15.9
|
)
|
Long-term net flows
|
5.6
|
|
|
(4.4
|
)
|
|
4.4
|
|
|
(1.9
|
)
|
|
(0.1
|
)
|
|
7.6
|
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
Total net flows
|
(7.7
|
)
|
|
(11.9
|
)
|
|
4.4
|
|
|
(1.9
|
)
|
|
(5.9
|
)
|
|
7.6
|
|
Market gains and losses/reinvestment
|
24.2
|
|
|
18.2
|
|
|
3.9
|
|
|
0.9
|
|
|
(0.2
|
)
|
|
1.4
|
|
Foreign currency translation
|
(5.6
|
)
|
|
(3.1
|
)
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
(0.9
|
)
|
September 30, 2014
|
789.6
|
|
|
386.3
|
|
|
179.2
|
|
|
51.5
|
|
|
76.6
|
|
|
96.0
|
|
Average AUM
|
790.5
|
|
|
388.1
|
|
|
178.1
|
|
|
52.7
|
|
|
77.8
|
|
|
93.8
|
|
% of total average AUM
|
100.0
|
%
|
|
49.1
|
%
|
|
22.5
|
%
|
|
6.7
|
%
|
|
9.8
|
%
|
|
11.9
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
June 30, 2015
|
141.6
|
|
|
89.4
|
|
|
41.2
|
|
|
—
|
|
|
—
|
|
|
11.0
|
|
Long-term inflows
|
6.8
|
|
|
5.3
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Long-term outflows
|
(9.1
|
)
|
|
(6.2
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
(3.1
|
)
|
|
(1.8
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
0.1
|
|
|
(0.5
|
)
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(5.3
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
September 30, 2015
|
131.7
|
|
|
82.3
|
|
|
39.7
|
|
|
—
|
|
|
0.1
|
|
|
9.6
|
|
Average AUM
|
138.4
|
|
|
87.8
|
|
|
40.6
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
% of total average AUM
|
100.0
|
%
|
|
63.4
|
%
|
|
29.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2014
|
145.8
|
|
|
89.0
|
|
|
42.0
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
Long-term inflows
|
8.2
|
|
|
4.9
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Long-term outflows
|
(8.2
|
)
|
|
(3.5
|
)
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
Long-term net flows
|
—
|
|
|
1.4
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(3.2
|
)
|
|
(1.8
|
)
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
Market gains and losses/reinvestment
|
(0.3
|
)
|
|
0.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
88.0
|
|
|
40.8
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Average AUM
|
146.7
|
|
|
91.3
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
14.3
|
|
% of total average AUM
|
100.0
|
%
|
|
62.2
|
%
|
|
28.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
9.7
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
(3)
|
||||||
December 31, 2014
|
141.4
|
|
|
88.2
|
|
|
41.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
Long-term inflows
|
25.7
|
|
|
18.1
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
Long-term outflows
|
(24.0
|
)
|
|
(15.9
|
)
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
Long-term net flows
|
1.7
|
|
|
2.2
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
(2.0
|
)
|
|
(1.6
|
)
|
|
0.5
|
|
|
—
|
|
|
0.1
|
|
|
(1.0
|
)
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(4.3
|
)
|
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
September 30, 2015
|
131.7
|
|
|
82.3
|
|
|
39.7
|
|
|
—
|
|
|
0.1
|
|
|
9.6
|
|
Average AUM
|
141.7
|
|
|
89.2
|
|
|
41.6
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
% of total average AUM
|
100.0
|
%
|
|
62.9
|
%
|
|
29.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
85.6
|
|
|
39.5
|
|
|
—
|
|
|
—
|
|
|
14.6
|
|
Long-term inflows
|
23.2
|
|
|
14.6
|
|
|
6.0
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
Long-term outflows
|
(18.8
|
)
|
|
(10.3
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
Long-term net flows
|
4.4
|
|
|
4.3
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(3.1
|
)
|
|
(3.2
|
)
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
Market gains and losses/reinvestment
|
5.7
|
|
|
5.6
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
88.0
|
|
|
40.8
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Average AUM
|
143.1
|
|
|
87.7
|
|
|
41.0
|
|
|
—
|
|
|
—
|
|
|
14.4
|
|
% of total average AUM
|
100.0
|
%
|
|
61.3
|
%
|
|
28.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
10.1
|
%
|
$ 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
|
)
|
Acquisitions/dispositions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2014
|
802.4
|
|
|
537.5
|
|
|
28.7
|
|
|
107.6
|
|
|
70.4
|
|
|
58.2
|
|
Long-term inflows
|
44.4
|
|
|
23.1
|
|
|
1.0
|
|
|
4.0
|
|
|
9.9
|
|
|
6.4
|
|
Long-term outflows
|
(38.4
|
)
|
|
(22.5
|
)
|
|
(1.1
|
)
|
|
(5.1
|
)
|
|
(5.6
|
)
|
|
(4.1
|
)
|
Long-term net flows
|
6.0
|
|
|
0.6
|
|
|
(0.1
|
)
|
|
(1.1
|
)
|
|
4.3
|
|
|
2.3
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(0.8
|
)
|
|
(0.7
|
)
|
|
(0.1
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
—
|
|
Total net flows
|
2.0
|
|
|
(3.3
|
)
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
4.2
|
|
|
2.3
|
|
Market gains and losses/reinvestment
|
(5.1
|
)
|
|
(2.0
|
)
|
|
(0.2
|
)
|
|
0.1
|
|
|
(2.3
|
)
|
|
(0.7
|
)
|
Foreign currency translation
|
(9.7
|
)
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
(5.2
|
)
|
|
(1.4
|
)
|
|
(1.5
|
)
|
September 30, 2014
|
789.6
|
|
|
532.1
|
|
|
26.8
|
|
|
101.5
|
|
|
70.9
|
|
|
58.3
|
|
$ 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
(6)
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
778.7
|
|
|
521.3
|
|
|
27.1
|
|
|
114.8
|
|
|
60.9
|
|
|
54.6
|
|
Long-term inflows
|
137.1
|
|
|
67.5
|
|
|
3.0
|
|
|
15.2
|
|
|
31.6
|
|
|
19.8
|
|
Long-term outflows
|
(131.5
|
)
|
|
(63.1
|
)
|
|
(3.4
|
)
|
|
(31.9
|
)
|
|
(17.4
|
)
|
|
(15.7
|
)
|
Long-term net flows
|
5.6
|
|
|
4.4
|
|
|
(0.4
|
)
|
|
(16.7
|
)
|
|
14.2
|
|
|
4.1
|
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
(5.8
|
)
|
|
(4.8
|
)
|
|
(0.1
|
)
|
|
2.1
|
|
|
(3.1
|
)
|
|
0.1
|
|
Total net flows
|
(7.7
|
)
|
|
(7.9
|
)
|
|
(0.5
|
)
|
|
(14.6
|
)
|
|
11.1
|
|
|
4.2
|
|
Market gains and losses/reinvestment
|
24.2
|
|
|
18.8
|
|
|
1.7
|
|
|
3.0
|
|
|
0.3
|
|
|
0.4
|
|
Foreign currency translation
|
(5.6
|
)
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
(1.7
|
)
|
|
(1.4
|
)
|
|
(0.9
|
)
|
September 30, 2014
|
789.6
|
|
|
532.1
|
|
|
26.8
|
|
|
101.5
|
|
|
70.9
|
|
|
58.3
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
June 30, 2015
|
141.6
|
|
|
137.4
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
Long-term inflows
|
6.8
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.7
|
|
Long-term outflows
|
(9.1
|
)
|
|
(8.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
Long-term net flows
|
(2.3
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(3.1
|
)
|
|
(3.3
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Market gains and losses/reinvestment
|
(6.8
|
)
|
|
(6.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
September 30, 2015
|
131.7
|
|
|
127.5
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2014
|
145.8
|
|
|
141.7
|
|
|
0.1
|
|
|
—
|
|
|
1.8
|
|
|
2.2
|
|
Long-term inflows
|
8.2
|
|
|
8.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Long-term outflows
|
(8.2
|
)
|
|
(8.0
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Long-term net flows
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(3.2
|
)
|
|
(3.2
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Market gains and losses/reinvestment
|
(0.3
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
138.2
|
|
|
0.2
|
|
|
—
|
|
|
1.7
|
|
|
2.0
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2014
|
141.4
|
|
|
137.6
|
|
|
0.2
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
Long-term inflows
|
25.7
|
|
|
23.6
|
|
|
0.1
|
|
|
—
|
|
|
0.5
|
|
|
1.5
|
|
Long-term outflows
|
(24.0
|
)
|
|
(22.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(1.5
|
)
|
Long-term net flows
|
1.7
|
|
|
1.5
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net flows in Invesco PowerShares QQQ fund
|
(3.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
(2.0
|
)
|
|
(2.3
|
)
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Market gains and losses/reinvestment
|
(7.0
|
)
|
|
(7.1
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
Acquisitions/dispositions, net
(6)
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2015
|
131.7
|
|
|
127.5
|
|
|
0.4
|
|
|
—
|
|
|
1.8
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
139.7
|
|
|
135.2
|
|
|
0.1
|
|
|
—
|
|
|
1.8
|
|
|
2.6
|
|
Long-term inflows
|
23.2
|
|
|
22.8
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
Long-term outflows
|
(18.8
|
)
|
|
(17.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.5
|
)
|
Long-term net flows
|
4.4
|
|
|
4.9
|
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.4
|
)
|
Net flows in Invesco PowerShares QQQ fund
|
(7.5
|
)
|
|
(7.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
(3.1
|
)
|
|
(2.6
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.4
|
)
|
Market gains and losses/reinvestment
|
5.7
|
|
|
5.6
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Foreign currency translation
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
September 30, 2014
|
142.1
|
|
|
138.2
|
|
|
0.2
|
|
|
—
|
|
|
1.7
|
|
|
2.0
|
|
1)
|
Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates.
|
(2)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(3)
|
There have been no significant changes to the managed objectives under the Alternatives asset class, which are disclosed in our most recent Form 10-K for the year ended
December 31, 2014
.
|
(4)
|
Ending Money Market AUM includes
$61.3 billion
in institutional money market AUM and
$5.5 billion
in retail money market AUM.
|
(5)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||||||
Total operating revenues
|
(9.5
|
)
|
|
1,273.5
|
|
|
(8.6
|
)
|
|
1,311.0
|
|
|
(29.2
|
)
|
|
3,883.2
|
|
|
(25.6
|
)
|
|
3,870.4
|
|
Total operating expenses
|
8.7
|
|
|
920.8
|
|
|
11.3
|
|
|
981.4
|
|
|
22.4
|
|
|
2,828.4
|
|
|
25.6
|
|
|
2,941.7
|
|
Operating income
|
(18.2
|
)
|
|
352.7
|
|
|
(19.9
|
)
|
|
329.6
|
|
|
(51.6
|
)
|
|
1,054.8
|
|
|
(51.2
|
)
|
|
928.7
|
|
Equity in earnings of unconsolidated affiliates
|
0.2
|
|
|
8.2
|
|
|
(0.7
|
)
|
|
10.9
|
|
|
(1.0
|
)
|
|
32.0
|
|
|
(4.1
|
)
|
|
26.4
|
|
Interest and dividend income
|
(1.5
|
)
|
|
2.4
|
|
|
(0.7
|
)
|
|
2.6
|
|
|
(3.7
|
)
|
|
7.5
|
|
|
(2.2
|
)
|
|
8.6
|
|
Interest expense
|
—
|
|
|
(20.4
|
)
|
|
—
|
|
|
(18.1
|
)
|
|
—
|
|
|
(58.7
|
)
|
|
—
|
|
|
(55.0
|
)
|
Other gains and losses, net
|
—
|
|
|
0.9
|
|
|
—
|
|
|
(1.3
|
)
|
|
(3.9
|
)
|
|
(5.2
|
)
|
|
(4.7
|
)
|
|
21.5
|
|
Other income/(expense) of CSIP, net
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
7.4
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
23.3
|
|
Interest and dividend income of CIP
|
64.7
|
|
|
64.7
|
|
|
53.4
|
|
|
53.4
|
|
|
190.0
|
|
|
190.0
|
|
|
149.7
|
|
|
149.7
|
|
Interest expense of CIP
|
(45.9
|
)
|
|
(45.9
|
)
|
|
(37.5
|
)
|
|
(37.5
|
)
|
|
(138.3
|
)
|
|
(138.3
|
)
|
|
(98.1
|
)
|
|
(98.1
|
)
|
Other gains/(losses) of CIP, net
|
(17.3
|
)
|
|
(17.3
|
)
|
|
0.1
|
|
|
0.1
|
|
|
(12.6
|
)
|
|
(12.6
|
)
|
|
63.4
|
|
|
63.4
|
|
Income from continuing operations before taxes
|
(18.0
|
)
|
|
341.7
|
|
|
(5.3
|
)
|
|
347.1
|
|
|
(21.1
|
)
|
|
1,080.4
|
|
|
52.8
|
|
|
1,068.5
|
|
Income tax provision
|
—
|
|
|
(100.4
|
)
|
|
—
|
|
|
(94.9
|
)
|
|
—
|
|
|
(311.1
|
)
|
|
—
|
|
|
(290.9
|
)
|
Income from continuing operations, net of taxes
|
(18.0
|
)
|
|
241.3
|
|
|
(5.3
|
)
|
|
252.2
|
|
|
(21.1
|
)
|
|
769.3
|
|
|
52.8
|
|
|
777.6
|
|
Income/(loss) from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
Net income
|
(18.0
|
)
|
|
241.3
|
|
|
(5.3
|
)
|
|
251.6
|
|
|
(21.1
|
)
|
|
769.3
|
|
|
52.8
|
|
|
775.2
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
4.8
|
|
|
8.0
|
|
|
7.7
|
|
|
4.4
|
|
|
0.1
|
|
|
(3.1
|
)
|
|
(47.1
|
)
|
|
(56.9
|
)
|
Net income attributable to Invesco Ltd.
|
(13.2
|
)
|
|
249.3
|
|
|
2.4
|
|
|
256.0
|
|
|
(21.0
|
)
|
|
766.2
|
|
|
5.7
|
|
|
718.3
|
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2015 vs 2014
|
|
Nine months ended September 30,
|
|
2015 vs 2014
|
||||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||
Investment management fees
|
1,016.9
|
|
|
1,047.3
|
|
|
(30.4
|
)
|
|
(2.9
|
)%
|
|
3,074.0
|
|
|
3,044.6
|
|
|
29.4
|
|
|
1.0
|
%
|
Service and distribution fees
|
214.8
|
|
|
222.1
|
|
|
(7.3
|
)
|
|
(3.3
|
)%
|
|
647.8
|
|
|
675.4
|
|
|
(27.6
|
)
|
|
(4.1
|
)%
|
Performance fees
|
15.6
|
|
|
8.2
|
|
|
7.4
|
|
|
90.2
|
%
|
|
69.1
|
|
|
44.3
|
|
|
24.8
|
|
|
56.0
|
%
|
Other
|
26.2
|
|
|
33.4
|
|
|
(7.2
|
)
|
|
(21.6
|
)%
|
|
92.3
|
|
|
106.1
|
|
|
(13.8
|
)
|
|
(13.0
|
)%
|
Total operating revenues
|
1,273.5
|
|
|
1,311.0
|
|
|
(37.5
|
)
|
|
(2.9
|
)%
|
|
3,883.2
|
|
|
3,870.4
|
|
|
12.8
|
|
|
0.3
|
%
|
Third-party distribution, service and advisory expenses
|
(392.3
|
)
|
|
(420.2
|
)
|
|
27.9
|
|
|
(6.6
|
)%
|
|
(1,204.7
|
)
|
|
(1,236.2
|
)
|
|
31.5
|
|
|
(2.5
|
)%
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
|
12.3
|
|
|
14.3
|
|
|
(2.0
|
)
|
|
(14.0
|
)%
|
|
49.4
|
|
|
42.7
|
|
|
6.7
|
|
|
15.7
|
%
|
CIP
|
9.5
|
|
|
8.6
|
|
|
0.9
|
|
|
10.5
|
%
|
|
29.2
|
|
|
25.6
|
|
|
3.6
|
|
|
14.1
|
%
|
Net revenues
|
903.0
|
|
|
913.7
|
|
|
(10.7
|
)
|
|
(1.2
|
)%
|
|
2,757.1
|
|
|
2,702.5
|
|
|
54.6
|
|
|
2.0
|
%
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2015 vs 2014
|
|
Nine months ended September 30,
|
|
2015 vs 2014
|
||||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||
Employee compensation
|
337.6
|
|
|
343.8
|
|
|
(6.2
|
)
|
|
(1.8
|
)%
|
|
1,045.7
|
|
|
1,048.8
|
|
|
(3.1
|
)
|
|
(0.3
|
)%
|
Third-party distribution, service and advisory
|
392.3
|
|
|
420.2
|
|
|
(27.9
|
)
|
|
(6.6
|
)%
|
|
1,204.7
|
|
|
1,236.2
|
|
|
(31.5
|
)
|
|
(2.5
|
)%
|
Marketing
|
24.9
|
|
|
26.6
|
|
|
(1.7
|
)
|
|
(6.4
|
)%
|
|
81.3
|
|
|
80.2
|
|
|
1.1
|
|
|
1.4
|
%
|
Property, office and technology
|
79.0
|
|
|
76.4
|
|
|
2.6
|
|
|
3.4
|
%
|
|
230.7
|
|
|
264.4
|
|
|
(33.7
|
)
|
|
(12.7
|
)%
|
General and administrative
|
87.0
|
|
|
114.4
|
|
|
(27.4
|
)
|
|
(24.0
|
)%
|
|
266.0
|
|
|
312.1
|
|
|
(46.1
|
)
|
|
(14.8
|
)%
|
Total operating expenses
|
920.8
|
|
|
981.4
|
|
|
(60.6
|
)
|
|
(6.2
|
)%
|
|
2,828.4
|
|
|
2,941.7
|
|
|
(113.3
|
)
|
|
(3.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
$ in millions
|
Three months ended September 30, 2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Three months ended September 30, 2014
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Employee compensation
|
337.6
|
|
|
36.7
|
%
|
|
26.5
|
%
|
|
343.8
|
|
|
35.0
|
%
|
|
26.2
|
%
|
Third-party distribution, service and advisory
|
392.3
|
|
|
42.6
|
%
|
|
30.8
|
%
|
|
420.2
|
|
|
42.8
|
%
|
|
32.1
|
%
|
Marketing
|
24.9
|
|
|
2.7
|
%
|
|
2.0
|
%
|
|
26.6
|
|
|
2.7
|
%
|
|
2.0
|
%
|
Property, office and technology
|
79.0
|
|
|
8.6
|
%
|
|
6.2
|
%
|
|
76.4
|
|
|
7.8
|
%
|
|
5.8
|
%
|
General and administrative
|
87.0
|
|
|
9.4
|
%
|
|
6.8
|
%
|
|
114.4
|
|
|
11.7
|
%
|
|
8.7
|
%
|
Total operating expenses
|
920.8
|
|
|
100.0
|
%
|
|
72.3
|
%
|
|
981.4
|
|
|
100.0
|
%
|
|
74.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
$ in millions
|
Nine months ended September 30, 2015
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Nine months ended September 30, 2014
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Employee compensation
|
1,045.7
|
|
|
37.0
|
%
|
|
26.9
|
%
|
|
1,048.8
|
|
|
35.7
|
%
|
|
27.1
|
%
|
Third-party distribution, service and advisory
|
1,204.7
|
|
|
42.6
|
%
|
|
31.0
|
%
|
|
1,236.2
|
|
|
42.0
|
%
|
|
31.9
|
%
|
Marketing
|
81.3
|
|
|
2.9
|
%
|
|
2.1
|
%
|
|
80.2
|
|
|
2.7
|
%
|
|
2.1
|
%
|
Property, office and technology
|
230.7
|
|
|
8.1
|
%
|
|
5.9
|
%
|
|
264.4
|
|
|
9.0
|
%
|
|
6.8
|
%
|
General and administrative
|
266.0
|
|
|
9.4
|
%
|
|
6.9
|
%
|
|
312.1
|
|
|
10.6
|
%
|
|
8.1
|
%
|
Total operating expenses
|
2,828.4
|
|
|
100.0
|
%
|
|
72.8
|
%
|
|
2,941.7
|
|
|
100.0
|
%
|
|
76.0
|
%
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2015 vs 2014
|
|
Nine months ended September 30,
|
|
2015 vs 2014
|
||||||||||||||||
$ in millions
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||
Equity in earnings of unconsolidated affiliates
|
8.2
|
|
|
10.9
|
|
|
(2.7
|
)
|
|
(24.8
|
)%
|
|
32.0
|
|
|
26.4
|
|
|
5.6
|
|
|
21.2
|
%
|
Interest and dividend income
|
2.4
|
|
|
2.6
|
|
|
(0.2
|
)
|
|
(7.7
|
)%
|
|
7.5
|
|
|
8.6
|
|
|
(1.1
|
)
|
|
(12.8
|
)%
|
Interest expense
|
(20.4
|
)
|
|
(18.1
|
)
|
|
(2.3
|
)
|
|
12.7
|
%
|
|
(58.7
|
)
|
|
(55.0
|
)
|
|
(3.7
|
)
|
|
6.7
|
%
|
Other gains and losses, net
|
0.9
|
|
|
(1.3
|
)
|
|
2.2
|
|
|
N/A
|
|
|
(5.2
|
)
|
|
21.5
|
|
|
(26.7
|
)
|
|
N/A
|
|
Other income/(expense) of CSIP, net
|
(3.6
|
)
|
|
7.4
|
|
|
(11.0
|
)
|
|
(148.6
|
)%
|
|
10.9
|
|
|
23.3
|
|
|
(12.4
|
)
|
|
(53.2
|
)%
|
Other income and expenses of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest and dividend income of CIP
|
64.7
|
|
|
53.4
|
|
|
11.3
|
|
|
21.2
|
%
|
|
190.0
|
|
|
149.7
|
|
|
40.3
|
|
|
26.9
|
%
|
Interest expense of CIP
|
(45.9
|
)
|
|
(37.5
|
)
|
|
(8.4
|
)
|
|
22.4
|
%
|
|
(138.3
|
)
|
|
(98.1
|
)
|
|
(40.2
|
)
|
|
41.0
|
%
|
Other gains/(losses) of CIP, net
|
(17.3
|
)
|
|
0.1
|
|
|
(17.4
|
)
|
|
N/A
|
|
|
(12.6
|
)
|
|
63.4
|
|
|
(76.0
|
)
|
|
(119.9
|
)%
|
Total other income and expenses
|
(11.0
|
)
|
|
17.5
|
|
|
(28.5
|
)
|
|
N/A
|
|
|
25.6
|
|
|
139.8
|
|
|
(114.2
|
)
|
|
(81.7
|
)%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Operating revenues, U.S. GAAP basis
|
1,273.5
|
|
|
1,311.0
|
|
|
3,883.2
|
|
|
3,870.4
|
|
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments
(1)
|
12.3
|
|
|
14.3
|
|
|
49.4
|
|
|
42.7
|
|
Third party distribution, service and advisory expenses
(2)
|
(392.3
|
)
|
|
(420.2
|
)
|
|
(1,204.7
|
)
|
|
(1,236.2
|
)
|
CIP
(3)
|
9.5
|
|
|
8.6
|
|
|
29.2
|
|
|
25.6
|
|
Net revenues
|
903.0
|
|
|
913.7
|
|
|
2,757.1
|
|
|
2,702.5
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Operating income, U.S. GAAP basis
|
352.7
|
|
|
329.6
|
|
|
1,054.8
|
|
|
928.7
|
|
Proportional share of net operating income from joint venture investments
(1)
|
4.2
|
|
|
5.3
|
|
|
23.3
|
|
|
19.7
|
|
CIP
(3)
|
18.2
|
|
|
19.9
|
|
|
51.6
|
|
|
51.2
|
|
Acquisition/disposition related adjustments
(4)
|
2.7
|
|
|
2.7
|
|
|
9.2
|
|
|
9.9
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
(4.4
|
)
|
|
0.2
|
|
|
0.8
|
|
|
8.3
|
|
Other reconciling items
(6)
|
—
|
|
|
24.2
|
|
|
(1.7
|
)
|
|
104.1
|
|
Adjusted operating income
|
373.4
|
|
|
381.9
|
|
|
1,138.0
|
|
|
1,121.9
|
|
|
|
|
|
|
|
|
|
||||
Operating margin*
|
27.7
|
%
|
|
25.1
|
%
|
|
27.2
|
%
|
|
24.0
|
%
|
Adjusted operating margin**
|
41.4
|
%
|
|
41.8
|
%
|
|
41.3
|
%
|
|
41.5
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
$ in millions, except per share data
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
249.3
|
|
|
256.0
|
|
|
766.2
|
|
|
718.3
|
|
||||
CIP, eliminated upon consolidation
(3)
|
13.2
|
|
|
(2.4
|
)
|
|
21.0
|
|
|
(5.7
|
)
|
||||
Acquisition/disposition related adjustments, net of tax
(4)
|
(4.3
|
)
|
|
8.3
|
|
|
11.4
|
|
|
27.4
|
|
||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
4.8
|
|
|
1.1
|
|
|
7.0
|
|
|
(1.5
|
)
|
||||
Other reconciling items, net of tax
(6)
|
(1.6
|
)
|
|
15.2
|
|
|
(0.7
|
)
|
|
83.7
|
|
||||
Adjusted net income attributable to Invesco Ltd.
|
261.4
|
|
|
278.2
|
|
|
804.9
|
|
|
822.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding - diluted
|
429.1
|
|
|
434.8
|
|
|
431.3
|
|
|
436.2
|
|
||||
Diluted EPS
|
|
$0.58
|
|
|
|
$0.59
|
|
|
|
$1.78
|
|
|
|
$1.65
|
|
Adjusted diluted EPS***
|
|
$0.61
|
|
|
|
$0.64
|
|
|
|
$1.87
|
|
|
|
$1.88
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
***
|
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 above and the calculated earnings per share amounts under the two class method.
|
(1)
|
Proportional share of net revenues and operating income from joint venture investments
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions, except per share data
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Management fees earned from CIP, eliminated upon consolidation
|
7.5
|
|
|
6.6
|
|
|
22.4
|
|
|
18.9
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
2.0
|
|
|
2.1
|
|
|
6.8
|
|
|
6.9
|
|
Other revenues recorded by CIP
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
CIP related adjustments in arriving at net revenues
|
9.5
|
|
|
8.6
|
|
|
29.2
|
|
|
25.6
|
|
(4)
|
Acquisition/disposition related adjustments
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Acquisition/disposition related:
|
|
|
|
|
|
|
|
||||
Intangible amortization expense
|
2.7
|
|
|
2.7
|
|
|
8.0
|
|
|
9.9
|
|
Other acquisition-related item
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
Adjustments to operating income
|
2.7
|
|
|
2.7
|
|
|
9.2
|
|
|
9.9
|
|
Changes in the fair value of contingent consideration
|
(18.4
|
)
|
|
—
|
|
|
(18.4
|
)
|
|
—
|
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on amortization
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(1.1
|
)
|
|
(1.2
|
)
|
Deferred taxation
|
4.8
|
|
|
5.4
|
|
|
15.2
|
|
|
16.3
|
|
Taxation on other acquisition-related items
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
Taxation on changes in the fair value of contingent consideration
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
(Income)/loss from discontinued operations, net of taxes
|
—
|
|
|
0.6
|
|
|
—
|
|
|
2.4
|
|
Adjustments to net income attributable to Invesco Ltd.
|
(4.3
|
)
|
|
8.3
|
|
|
11.4
|
|
|
27.4
|
|
(5)
|
Market movement on deferred compensation plan liabilities
|
(6)
|
Other reconciling items
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
||||
Business optimization charges:
(a)
|
|
|
|
|
|
|
|
||||
Employee compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
7.2
|
|
Property, office and technology
|
—
|
|
|
—
|
|
|
(6.4
|
)
|
|
35.8
|
|
Regulatory charge
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
31.1
|
|
Legal fees for regulatory charge
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Fund reimbursement settlement costs
(c)
|
—
|
|
|
24.2
|
|
|
4.7
|
|
|
29.5
|
|
Adjustments to operating income
|
—
|
|
|
24.2
|
|
|
(1.7
|
)
|
|
104.1
|
|
Foreign exchange hedge (gain)/loss
(d)
|
(1.6
|
)
|
|
—
|
|
|
1.5
|
|
|
(0.2
|
)
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on business optimization charges
(a)
|
—
|
|
|
—
|
|
|
1.3
|
|
|
(9.0
|
)
|
Taxation on regulatory charges
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
Taxation on fund reimbursement settlement costs
(c)
|
—
|
|
|
(9.0
|
)
|
|
(1.8
|
)
|
|
(11.1
|
)
|
Adjustments to net income attributable to Invesco Ltd.
|
(1.6
|
)
|
|
15.2
|
|
|
(0.7
|
)
|
|
83.7
|
|
(a)
|
Business optimization: Operating expenses for the
nine months ended
September 30, 2015
include property related credit of
$6.4 million
(
nine months ended
September 30, 2014
:
$35.8 million
charge) associated with vacating leased properties as part of a business optimization initiative. Employee compensation expenses for the
nine months ended
September 30, 2014
also includes severance costs of
$7.2 million
related to the initiative.
|
(b)
|
Operating expenses for the
nine months ended
September 30, 2014
include a charge of £18.6 million (
$31.1 million
) in respect of the penalty under the settlement of an enforcement proceeding reached with the U.K. Financial Conduct Authority (FCA) pertaining to the company's compliance with certain FCA rules and regulations for the period from May 2008 to November 2012. This charge, together with settlement-related legal costs of
$0.5 million
, has been recorded in general and administrative expenses.
|
(c)
|
General and administrative expenses for the
nine months ended
September 30, 2015
include a charge of
$4.7 million
(
nine months ended
September 30, 2014
:
$29.5 million
;
three months ended
September 30, 2014
:
$24.2 million
) 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.
|
(d)
|
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 impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period.
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2014
|
||||||||||||
$ in millions
|
|
Impact of CIP
|
|
Consolidated Total
|
|
Impact of CIP
|
|
Consolidated Total
|
|
Impact of CIP
|
|
Consolidated Total
|
||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
—
|
|
|
1,590.7
|
|
|
—
|
|
|
1,514.2
|
|
|
—
|
|
|
1,352.6
|
|
Unsettled fund receivables
|
|
—
|
|
|
979.8
|
|
|
—
|
|
|
732.4
|
|
|
—
|
|
|
999.1
|
|
Accounts receivable
|
|
(4.2
|
)
|
|
529.2
|
|
|
(3.8
|
)
|
|
545.9
|
|
|
(2.9
|
)
|
|
532.6
|
|
Investments
|
|
(86.0
|
)
|
|
938.9
|
|
|
(94.9
|
)
|
|
885.4
|
|
|
(99.9
|
)
|
|
886.5
|
|
Assets of CSIP
|
|
—
|
|
|
325.5
|
|
|
—
|
|
|
305.8
|
|
|
—
|
|
|
334.5
|
|
Assets of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents of CIP
|
|
587.5
|
|
|
587.5
|
|
|
404.0
|
|
|
404.0
|
|
|
238.6
|
|
|
238.6
|
|
Accounts receivable of CIP
|
|
135.6
|
|
|
135.6
|
|
|
161.3
|
|
|
161.3
|
|
|
118.1
|
|
|
118.1
|
|
Investments of CIP
|
|
6,119.9
|
|
|
6,119.9
|
|
|
5,762.8
|
|
|
5,762.8
|
|
|
5,555.9
|
|
|
5,555.9
|
|
Assets held for policyholders
|
|
—
|
|
|
5,500.5
|
|
|
—
|
|
|
1,697.9
|
|
|
—
|
|
|
1,509.2
|
|
Prepaid assets
|
|
—
|
|
|
126.2
|
|
|
—
|
|
|
132.1
|
|
|
—
|
|
|
103.6
|
|
Other assets
|
|
—
|
|
|
85.6
|
|
|
—
|
|
|
92.0
|
|
|
—
|
|
|
110.7
|
|
Property, equipment and software, net
|
|
—
|
|
|
415.9
|
|
|
—
|
|
|
402.6
|
|
|
—
|
|
|
367.3
|
|
Intangible assets, net
|
|
—
|
|
|
1,357.3
|
|
|
—
|
|
|
1,246.7
|
|
|
—
|
|
|
1,252.2
|
|
Goodwill
|
|
—
|
|
|
6,269.6
|
|
|
—
|
|
|
6,579.4
|
|
|
—
|
|
|
6,720.1
|
|
Total assets
|
|
6,752.8
|
|
|
24,962.2
|
|
|
6,229.4
|
|
|
20,462.5
|
|
|
5,809.8
|
|
|
20,081.0
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued compensation and benefits
|
|
—
|
|
|
571.2
|
|
|
—
|
|
|
667.3
|
|
|
—
|
|
|
540.1
|
|
Accounts payable and accrued expenses
|
|
—
|
|
|
882.4
|
|
|
—
|
|
|
757.3
|
|
|
—
|
|
|
766.4
|
|
Liabilities of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt of CIP
|
|
5,669.7
|
|
|
5,669.7
|
|
|
5,149.6
|
|
|
5,149.6
|
|
|
4,710.3
|
|
|
4,710.3
|
|
Other liabilities of CIP
|
|
338.1
|
|
|
338.1
|
|
|
280.9
|
|
|
280.9
|
|
|
349.2
|
|
|
349.2
|
|
Policyholder payables
|
|
—
|
|
|
5,500.5
|
|
|
—
|
|
|
1,697.9
|
|
|
—
|
|
|
1,509.2
|
|
Unsettled fund payables
|
|
—
|
|
|
962.5
|
|
|
—
|
|
|
730.1
|
|
|
—
|
|
|
994.8
|
|
Long-term debt
|
|
—
|
|
|
1,689.3
|
|
|
—
|
|
|
1,589.3
|
|
|
—
|
|
|
1,589.1
|
|
Deferred tax liabilities, net
|
|
—
|
|
|
316.3
|
|
|
—
|
|
|
304.8
|
|
|
—
|
|
|
325.3
|
|
Total liabilities
|
|
6,007.8
|
|
|
15,930.0
|
|
|
5,430.5
|
|
|
11,177.2
|
|
|
5,059.5
|
|
|
10,784.4
|
|
TEMPORARY EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Redeemable noncontrolling interests in CSIP
|
|
—
|
|
|
176.4
|
|
|
—
|
|
|
165.5
|
|
|
—
|
|
|
157.5
|
|
PERMANENT EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity attributable to Invesco Ltd.:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Common shares
|
|
—
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
|
—
|
|
|
98.1
|
|
Additional paid-in-capital
|
|
—
|
|
|
6,166.2
|
|
|
—
|
|
|
6,133.6
|
|
|
—
|
|
|
6,103.9
|
|
Treasury shares
|
|
—
|
|
|
(2,194.7
|
)
|
|
—
|
|
|
(1,898.1
|
)
|
|
—
|
|
|
(1,851.7
|
)
|
Retained earnings
|
|
(0.7
|
)
|
|
4,351.4
|
|
|
20.3
|
|
|
3,926.0
|
|
|
18.1
|
|
|
3,764.5
|
|
Retained earnings appropriated for investors in CIP
|
|
—
|
|
|
—
|
|
|
17.6
|
|
|
17.6
|
|
|
56.4
|
|
|
56.4
|
|
Accumulated other comprehensive income/(loss), net of tax
|
|
0.7
|
|
|
(328.3
|
)
|
|
(20.2
|
)
|
|
48.8
|
|
|
(18.0
|
)
|
|
252.9
|
|
Total equity attributable to Invesco Ltd.
|
|
—
|
|
|
8,092.7
|
|
|
17.7
|
|
|
8,326.0
|
|
|
56.5
|
|
|
8,424.1
|
|
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
|
745.0
|
|
|
763.1
|
|
|
781.2
|
|
|
793.8
|
|
|
693.8
|
|
|
715.0
|
|
Total permanent equity
|
|
745.0
|
|
|
8,855.8
|
|
|
798.9
|
|
|
9,119.8
|
|
|
750.3
|
|
|
9,139.1
|
|
Total liabilities, temporary and permanent equity
|
|
6,752.8
|
|
|
24,962.2
|
|
|
6,229.4
|
|
|
20,462.5
|
|
|
5,809.8
|
|
|
20,081.0
|
|
|
Excluding CIP (Non-GAAP)
(1)
|
|
Including CIP (U.S. GAAP)
|
||||||||||||||
$ in millions
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2014
|
|
September 30, 2015
|
|
December 31, 2014
|
|
September 30, 2014
|
||||||
Cash and cash equivalents
|
1,590.7
|
|
|
1,514.2
|
|
|
1,352.6
|
|
|
1,590.7
|
|
|
1,514.2
|
|
|
1,352.6
|
|
Investments of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
6,119.9
|
|
|
5,762.8
|
|
|
5,555.9
|
|
Total assets
(1)
|
18,209.4
|
|
|
14,233.1
|
|
|
14,271.2
|
|
|
24,962.2
|
|
|
20,462.5
|
|
|
20,081.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-term debt
|
1,689.3
|
|
|
1,589.3
|
|
|
1,589.1
|
|
|
1,689.3
|
|
|
1,589.3
|
|
|
1,589.1
|
|
Long-term debt of CIP
|
—
|
|
|
—
|
|
|
—
|
|
|
5,669.7
|
|
|
5,149.6
|
|
|
4,710.3
|
|
Long-term debt / Long-term debt plus CIP debt
|
1,689.3
|
|
|
1,589.3
|
|
|
1,589.1
|
|
|
7,359.0
|
|
|
6,738.9
|
|
|
6,299.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total liabilities
(1)
|
9,922.2
|
|
|
5,746.7
|
|
|
5,724.9
|
|
|
15,930.0
|
|
|
11,177.2
|
|
|
10,784.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total permanent equity
(1)
|
8,110.8
|
|
|
8,320.9
|
|
|
8,388.8
|
|
|
8,855.8
|
|
|
9,119.8
|
|
|
9,139.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt/Equity %
(1,2)
|
20.8
|
%
|
|
19.1
|
%
|
|
18.9
|
%
|
|
83.1
|
%
|
|
73.9
|
%
|
|
68.9
|
%
|
(1)
|
The balance sheet line items excluding CIP are non-GAAP financial measures. To calculate total assets excluding CIP at
September 30, 2015
, use U.S. GAAP total assets of
$24,962.2 million
(
December 31, 2014
:
$20,462.5 million
;
September 30, 2014
:
$20,081.0 million
) and subtract total assets of CIP of
$6,752.8 million
(
December 31, 2014
:
$6,229.4 million
;
September 30, 2014
:
$5,809.8 million
). To calculate total liabilities excluding CIP at
September 30, 2015
, use U.S. GAAP total liabilities of
$15,930.0 million
(
December 31, 2014
:
$11,177.2 million
;
September 30, 2014
:
$10,784.4 million
) and subtract total liabilities of CIP of
$6,007.8 million
(
December 31, 2014
:
$5,430.5 million
,
September 30, 2014
:
$5,059.5 million
). To calculate total permanent equity excluding CIP at
September 30, 2015
, use U.S. GAAP total permanent equity of
$8,855.8 million
(
December 31, 2014
:
$9,119.8 million
;
September 30, 2014
:
$9,139.1 million
) and subtract total permanent equity of CIP of
$745.0 million
(
December 31, 2014
:
$798.9 million
;
September 30, 2014
:
$750.3 million
). See the "Balance Sheet Discussion" section for a fully expanded balance sheet illustrating the impact of consolidation of investment products for
September 30, 2015
,
December 31, 2014
and
September 30, 2014
.
|
(2)
|
The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. The debt-to-equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet excluding CIP and long-term debt plus long-term debt of CIP divided by total permanent equity for the balance sheet including CIP. Management believes that it is important to illustrate for users of our Condensed Consolidated Financial Statements that calculating a balance sheet measure, such as the debt-to-equity ratio, including the impact of CIP causes the company to appear far more indebted than is the case. As disclosed above, the debt of CIP is not the company's debt, nor do the noteholders of the CIP debt have any recourse to the company.
|
|
Nine months ended September 30, 2015
|
|
Nine months ended September 30, 2014
|
||||||||
$ in millions
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
|
Impact of CIP
|
|
Invesco Ltd. Consolidated
|
||||
Operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
(21.0
|
)
|
|
769.3
|
|
|
52.8
|
|
|
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
|
3.9
|
|
|
5.2
|
|
|
4.7
|
|
|
(21.5
|
)
|
Other (gains)/losses of CSIP, net
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
(15.8
|
)
|
Other (gains)/losses of CIP, net
|
12.6
|
|
|
12.6
|
|
|
(63.4
|
)
|
|
(63.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
1.0
|
|
|
(32.0
|
)
|
|
4.1
|
|
|
(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
|
)
|
|
(184.3
|
)
|
|
313.8
|
|
|
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
|
(18.0
|
)
|
|
(4,168.4
|
)
|
|
(9.2
|
)
|
|
(233.8
|
)
|
Increase/(decrease) in payables
|
3.8
|
|
|
4,065.2
|
|
|
17.8
|
|
|
120.1
|
|
Net cash provided by/(used in) operating activities
|
(202.0
|
)
|
|
555.6
|
|
|
320.6
|
|
|
1,017.4
|
|
Investing activities:
|
|
|
|
|
|
|
|
||||
Purchase of property, equipment and software
|
—
|
|
|
(88.1
|
)
|
|
—
|
|
|
(86.7
|
)
|
Purchase of available-for-sale investments
|
60.8
|
|
|
(41.5
|
)
|
|
67.6
|
|
|
(112.0
|
)
|
Sale of available-for-sale investments
|
(59.7
|
)
|
|
48.5
|
|
|
(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
|
)
|
|
—
|
|
|
(565.9
|
)
|
Sale of investments by CSIP
|
—
|
|
|
384.0
|
|
|
—
|
|
|
366.4
|
|
Purchase of other investments
|
1.4
|
|
|
(115.2
|
)
|
|
3.8
|
|
|
(84.9
|
)
|
Sale of other investments
|
—
|
|
|
73.8
|
|
|
—
|
|
|
52.5
|
|
Returns of capital and distributions from unconsolidated partnership investments
|
(0.5
|
)
|
|
45.1
|
|
|
(1.7
|
)
|
|
33.8
|
|
Sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
60.8
|
|
Net cash provided by/(used in) investing activities
|
(396.6
|
)
|
|
(489.5
|
)
|
|
(1,183.8
|
)
|
|
(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
|
|
|
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
|
|
|
—
|
|
|
157.1
|
|
Third-party capital distributed by CSIP
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
|
|
—
|
|
|
—
|
|
Payment of contingent consideration
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
Net cash provided by/(used in) financing activities
|
598.6
|
|
|
53.4
|
|
|
863.2
|
|
|
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
|
|
$ in millions
|
September 30, 2015
|
|
December 31, 2014
|
||
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
599.7
|
|
|
599.6
|
|
$600 million 4.000% - due January 30, 2024
|
596.5
|
|
|
596.2
|
|
$400 million 5.375% - due November 30, 2043
|
393.6
|
|
|
393.5
|
|
Floating rate credit facility expiring August 7, 2020
|
99.5
|
|
|
—
|
|
Long-term debt
|
1,689.3
|
|
|
1,589.3
|
|
$ millions
|
Total
|
|
Q3 2015
|
|
Q2 2015
|
|
Q1 2015
|
|
Q4 2014
|
||||||
Net income attributable to Invesco Ltd.
|
1,036.0
|
|
|
249.3
|
|
|
257.3
|
|
|
259.6
|
|
|
269.8
|
|
|
Impact of CIP on net income attributable to Invesco Ltd.
|
18.9
|
|
|
13.2
|
|
|
(0.4
|
)
|
|
8.2
|
|
|
(2.1
|
)
|
|
Tax expense
|
410.4
|
|
|
100.4
|
|
|
109.4
|
|
|
101.3
|
|
|
99.3
|
|
|
Amortization/depreciation/impairment
|
90.6
|
|
|
22.6
|
|
|
23.3
|
|
|
22.7
|
|
|
22.0
|
|
|
Interest expense
|
76.8
|
|
|
20.4
|
|
|
19.6
|
|
|
18.7
|
|
|
18.1
|
|
|
Share-based compensation expense
|
146.6
|
|
|
36.2
|
|
|
36.0
|
|
|
40.7
|
|
|
33.7
|
|
|
Unrealized gains and losses from investments, net
*
|
(9.2
|
)
|
|
(8.8
|
)
|
|
2.3
|
|
|
1.4
|
|
|
(4.1
|
)
|
|
EBITDA
**
|
1,770.1
|
|
|
433.3
|
|
|
447.5
|
|
|
452.6
|
|
|
436.7
|
|
|
Adjusted debt
**
|
|
$1,722.9
|
|
|
|
|
|
|
|
|
|
||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
0.97
|
|
|
|
|
|
|
|
|
|
|||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
23.05
|
|
|
|
|
|
|
|
|
|
*
|
Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures.
|
**
|
EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to Invesco Ltd.) is defined by our credit agreement, and therefore net income attributable to Invesco Ltd. is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of Adjusted debt is defined in our credit facility and equals total debt of
$1,689.3 million
plus
$33.6 million
in letters of credit.
|
•
|
Causing the value of AUM to decrease.
|
•
|
Causing the returns realized on AUM to decrease (impacting performance fees).
|
•
|
Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.
|
•
|
Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.
|
•
|
Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.
|
Month
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum Number at end of period (or Approximate
Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (millions) |
||||||
July 1-31, 2015
|
855,455
|
|
|
$
|
36.99
|
|
|
835,188
|
|
|
|
$1,037.8
|
|
August 1-31, 2015
|
2,315,878
|
|
|
$
|
34.81
|
|
|
2,312,917
|
|
|
|
$957.3
|
|
September 1-30, 2015
|
1,923,604
|
|
|
$
|
34.36
|
|
|
1,877,007
|
|
|
|
$892.8
|
|
Total
|
5,094,937
|
|
|
|
|
5,025,112
|
|
|
|
(1)
|
An aggregate of
69,825
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards.
|
(2)
|
In October 2013, our board of directors authorized a $1.5 billion share repurchase program of our common shares with no stated expiration date. As of
September 30, 2015
,
$892.8 million
remained authorized under this plan.
|
3.1
|
Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
|
3.2
|
Second Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including May 15, 2014, incorporated by reference to Exhibit 3.2 to Invesco’s Quarterly Report of Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014
|
10.1
|
Third Amended and Restated Credit Agreement, dated as of August 7, 2015, among Invesco Finance PLC, Invesco Ltd., the banks, financial institutions and other institutional lenders from time to time a party thereto and Bank of America, N.A., as administrative agent.
|
31.1
|
Certification of Martin L. Flanagan pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Loren M. Starr pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Martin L. Flanagan pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Loren M. Starr pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
INVESCO LTD.
|
October 29, 2015
|
/s/ MARTIN L. FLANAGAN
|
|
Martin L. Flanagan
|
|
President and Chief Executive Officer
|
|
|
October 29, 2015
|
/s/ LOREN M. STARR
|
|
Loren M. Starr
|
|
Senior Managing Director and Chief Financial Officer
|
EXECUTION VERSION
|
Published CUSIP Number: G4922RAC4
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of August 7, 2015
among
INVESCO FINANCE PLC,
as the Borrower
INVESCO LTD.,
as Parent
and
THE INITIAL LENDERS NAMED HEREIN,
as Initial Lenders
and
BANK OF AMERICA, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer,
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
and
CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arrangers and Bookrunners
CITIBANK N.A.,
as Syndication Agent
THE BANK OF NEW YORK MELLON
,
HSBC BANK USA, NATIONAL ASSOCIATION
,
TORONTO DOMINION (NEW YORK) LLC
,
MORGAN STANLEY SENIOR FUNDING, INC.
,
JPMORGAN CHASE BANK, N.A.
,
WELLS FARGO BANK, N.A.
,
CANADIAN IMPERIAL BANK OF COMMERCE, and
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
as Co-Documentation Agents
|
ARTICLE I
|
DEFINITIONS AND ACCOUNTING TERMS....................................1
|
Section 1.01
|
Amendment and Restatement; Allocations................................1
|
Section 1.02
|
Certain Defined Terms...............................................................2
|
Section 1.03
|
Computation of Time Periods..................................................26
|
Section 1.04
|
Accounting Terms....................................................................26
|
Section 1.05
|
Letter of Credit Amounts.........................................................26
|
ARTICLE II
|
AMOUNTS AND TERMS OF THE ADVANCES.............................26
|
Section 2.01
|
The Advances...........................................................................26
|
Section 2.02
|
Making the Advances...............................................................27
|
Section 2.03
|
Letters of Credit.......................................................................28
|
Section 2.04
|
Swing Line Loans....................................................................38
|
Section 2.05
|
Fees..........................................................................................41
|
Section 2.06
|
Termination or Reduction of the Commitments......................42
|
Section 2.07
|
Repayment of Advances..........................................................42
|
Section 2.08
|
Interest on Advances................................................................42
|
Section 2.09
|
Interest Rate Determination.....................................................43
|
Section 2.10
|
Optional Conversion of Advances...........................................44
|
Section 2.11
|
Prepayments of Advances........................................................45
|
Section 2.12
|
Increased Costs........................................................................46
|
Section 2.13
|
Illegality; Circumstances Affecting Availability......................47
|
Section 2.14
|
Payments Generally and Computations...................................48
|
Section 2.15
|
Taxes........................................................................................49
|
Section 2.16
|
Sharing of Payments, Etc.........................................................54
|
Section 2.17
|
Use of Proceeds........................................................................54
|
Section 2.18
|
Cash Collateral and Other Credit Support...............................55
|
Section 2.19
|
Increase in Commitments........................................................56
|
ARTICLE III
|
CONDITIONS TO EFFECTIVENESS AND LENDING...................58
|
Section 3.01
|
Conditions Precedent to Effectiveness.....................................58
|
Section 3.02
|
Conditions Precedent to Each Borrowing and Each L/C Credit Extension..................................................................................59
|
Section 3.03
|
Determinations Under Section 3.01.........................................60
|
ARTICLE IV
|
REPRESENTATIONS AND WARRANTIES.....................................60
|
Section 4.01
|
Representations and Warranties of the Parent and the Borrower..................................................................................60
|
ARTICLE V
|
COVENANTS OF THE BORROWER...............................................64
|
Section 5.01
|
Affirmative Covenants.............................................................64
|
Section 5.02
|
Negative Covenants.................................................................68
|
Section 5.03
|
Financial Covenants.................................................................73
|
ARTICLE VI
|
EVENTS OF DEFAULT......................................................................73
|
Section 6.01
|
Events of Default.....................................................................73
|
Section 6.02
|
Application of Funds................................................................76
|
ARTICLE VII
|
ADMINISTRATIVE AGENT..............................................................78
|
Section 7.01
|
Appointment and Authority......................................................78
|
Section 7.02
|
Rights as a Lender....................................................................78
|
Section 7.03
|
Exculpatory Provisions............................................................78
|
Section 7.04
|
Reliance by Administrative Agent...........................................79
|
Section 7.05
|
Delegation of Duties................................................................79
|
Section 7.06
|
Resignation of Administrative Agent.......................................80
|
Section 7.07
|
Non-Reliance on Administrative Agent and Other Lenders....81
|
Section 7.08
|
No Other Duties, Etc................................................................82
|
Section 7.09
|
Administrative Agent May File Proofs of Claim.....................82
|
ARTICLE VIII
|
MISCELLANEOUS............................................................................83
|
Section 8.01
|
Amendments, Etc.....................................................................83
|
Section 8.02
|
Notices; Effectiveness; Electronic Communication................84
|
Section 8.03
|
No Waiver; Remedies..............................................................86
|
Section 8.04
|
Expenses; Indemnity; Damage Waiver....................................87
|
Section 8.05
|
Right of Set-off........................................................................89
|
Section 8.06
|
Successors and Assigns............................................................90
|
Section 8.07
|
Treatment of Certain Information; Confidentiality..................95
|
Section 8.08
|
Governing Law.........................................................................96
|
Section 8.09
|
Execution in Counterparts........................................................96
|
Section 8.10
|
Survival of Representations and Warranties............................96
|
Section 8.11
|
Replacement of Lenders..........................................................96
|
Section 8.12
|
Jurisdiction, Etc........................................................................97
|
Section 8.13
|
Judgment..................................................................................98
|
Section 8.14
|
Waiver of Jury Trial.................................................................98
|
Section 8.15
|
USA PATRIOT Act Notice......................................................99
|
Section 8.16
|
Defaulting Lenders...................................................................99
|
Section 8.17
|
No Advisory or Fiduciary Relationship.................................101
|
Section 8.18
|
Interest Rate Limitation.........................................................102
|
Section 8.19
|
Severability............................................................................102
|
Section 8.20
|
Electronic Execution of Assignments and Certain Other Documents.............................................................................102
|
Schedule I
|
List of Applicable Lending Offices
|
Schedule 1.01
|
Commitments
|
Schedule 4.01(b)
|
Subsidiaries
|
Schedule 4.01(d)
|
Required Authorizations
|
Schedule 4.01(i)
|
Disclosed Litigation
|
Schedule 5.02(a)
|
Existing Liens
|
Schedule 8.02
|
Administrative Agent’s Office; Certain Addresses for Notices
|
Exhibit A
|
Note
|
Exhibit B-1
|
Advance Notice
|
Exhibit B-2
|
Swing Line Loan Notice
|
Exhibit C
|
Assignment and Assumption
|
Exhibit D
|
Parent Guaranty
|
Exhibit E
|
Opinion of U.S. Counsel for the Borrower and the Parent
|
Exhibit F
|
Opinion of U.K. Counsel for the Borrower
|
Exhibit G
|
Opinion of Bermuda Counsel for the Parent
|
Exhibit H
|
Compliance Certificate
|
Eurocurrency Rate =
|
Eurocurrency Base Rate
|
1.00 – Eurocurrency Reserve Percentage
|
Name of Initial Lender
|
Domestic Lending Office
|
Eurocurrency Lending Office
|
Bank of America, N.A.
|
See Schedule 8.02
|
|
Citibank N.A.
|
1615 Brett Road, Building III
New Castle, Delaware 19720
Attention:Vince Napoli
Telephone: 302-894-6052
Facsimile:212-994-0847
|
1615 Brett Road, Building III
New Castle, Delaware 19720
Attention:Vince Napoli
Telephone: 302-894-6052
Facsimile:212-994-0847
|
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
|
1251 Avenue of the Americas
New York, New York 10020-1104
Attention:Suzanne Ley
Telephone: 212-782-4468
Facsimile:646-565-9242
|
1251 Avenue of the Americas
New York, New York 10020-1104
Attention:Suzanne Ley
Telephone: 212-782-4468
Facsimile:646-565-9242
|
Canadian Imperial Bank of Commerce, New York Branch
|
161 Bay Street, 8thFloor
Toronto, ON M5J 2S8, Canada
Attention: Matthew Reis, Director
Telephone: 416-594-8392
Facsimile: 416-956-3810
595 Bay Street, 5
th
Floor
Toronto, ON M5G 2C2
CIBC-CPS-US, Credit Monitoring Attention: Janaka Lenaduwa
Telephone: 416-784-1880
Facsimile: 905-948-1934
|
161 Bay Street, 8thFloor
Toronto, ON M5J 2S8, Canada
Attention: Matthew Reis, Director
Telephone: 416-594-8392
Facsimile: 416-956-3810
595 Bay Street, 5
th
Floor
Toronto, ON M5G 2C2
CIBC-CPS-US, Credit Monitoring Attention: Janaka Lenaduwa
Telephone: 416-784-1880
Facsimile: 905-948-1934
|
HSBC Bank USA, N.A.
|
One HSBC Center
Buffalo, New York 14203
Attention: Donna L. Riley
Telephone: 716-841-4178
Facsimile:716-841-0296
|
452 Fifth Avenue
New York, New York 10018
Attention: Myriam Ferguson
Telephone: 212-525-7292
Facsimile:847-793-3415
|
JPMorgan
Chase
Bank, N.A.
|
270 Park Avenue, Floor 4
New York, New York 10017
Attention: Ayesha Umer
Telephone: 212-270-6851
Facsimile:212-270-1511
|
270 Park Avenue, Floor 4
New York, New York 10017
Attention: Ayesha Umer
Telephone: 212-270-6851
Facsimile:212-270-1511
|
Morgan Stanley Bank, N.A.
|
Morgan Stanley Loan Servicing
1300 Thames Street Wharf, 4
th
Floor
Baltimore, MD 21231
Telephone: 443-627-4355
Facsimile:718-233-2140
msloanservicing@morganstanley.com
|
Morgan Stanley Loan Servicing
1300 Thames Street Wharf, 4
th
Floor
Baltimore, MD 21231
Telephone: 443-627-4355
Facsimile:718-233-2140
msloanservicing@morganstanley.com
|
The Bank of New York Mellon
|
One Wall Street, 17
th
Floor
New York, New York 10286
Attention: Kenneth P. Sneider, Jr.
Telephone: 212-635-6863
Facsimile: 212-635-8541
|
One Wall Street, 17
th
Floor
New York, New York 10286
Attention: Kenneth P. Sneider, Jr.
Telephone: 212-635-6863
Facsimile: 212-635-8541
|
Toronto Dominion (New York) LLC
|
31 West 52
nd
Street
New York, New York 10019
Attention: Christine Kim
Telephone: 416-982-6107
Facsimile:416-983-0003
|
31 West 52
nd
Street
New York, New York 10019
Attention: Christine Kim
Telephone: 416-982-6107
Facsimile:416-983-0003
|
Wells Fargo Bank, N.A.
|
90 South 7
th
Street
MAC N9305-075
Minneapolis, Minnesota 55402
Attention: Thomas Doddridge
Telephone: 312-781-0722
Facsimile:312-845-8606
|
90 South 7
th
Street
MAC N9305-075
Minneapolis, Minnesota 55402
Attention: Thomas Doddridge
Telephone: 312-781-0722
Facsimile:312-845-8606
|
Barclays Bank PLC
|
1 Churchill Place
London, E14 5HP
Attention: Adam Bealey
Telephone: 44 (0) 20 7116 8472
Facsimile:N/A
|
1 Churchill Place
London, E14 5HP
Attention: Adam Bealey
Telephone: 44 (0) 20 7116 8472
Facsimile:N/A
|
Credit Suisse AG, Cayman Islands Branch
|
Eleven Madison Avenue
New York, New York 10010
Attention: Jay Chall
Telephone: 212-325-9010
Facsimile:212-743-1843
|
Eleven Madison Avenue
New York, New York 10010
Attention: Jay Chall
Telephone: 212-325-9010
Facsimile:212-743-1843
|
State Street Bank
and
Trust Company
|
100 Huntington Avenue
Tower 2, 4
th
Floor
Boston, Massachusetts 02206
Attention: Eola Romano
Telephone: 617-662-8580
Facsimile:617-988-6677
|
100 Huntington Avenue
Tower 2, 4
th
Floor
Boston, Massachusetts 02206
Attention: Eola Romano
Telephone: 617-662-8580
Facsimile:617-988-6677
|
Lender
|
|
Commitment
|
|
Applicable
Percentage
|
|
Bank of America, N.A.
|
|
$
|
120,000,000.00
|
|
9.600000000%
|
Citibank N.A.
|
|
$
|
120,000,000.00
|
|
9.600000000%
|
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
Canadian Imperial Bank of Commerce, New York Branch
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
HSBC Bank USA, N.A.
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
JPMorgan Chase Bank, N.A.
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
Morgan Stanley Bank, N.A.
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
The Bank of New York Mellon
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
Toronto Dominion (New York) LLC
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
Wells Fargo Bank, N.A.
|
|
$
|
100,000,000.00
|
|
8.000000000%
|
Barclays Bank PLC
|
|
$
|
70,000,000.00
|
|
5.600000000%
|
Credit Suisse AG, Cayman Islands Branch
|
|
$
|
70,000,000.00
|
|
5.600000000%
|
State Street Bank and Trust Company
|
|
$
|
70,000,000.00
|
|
5.600000000%
|
Total
|
|
$
|
1,250,000,000.00
|
|
100.000000000%
|
Company Name
|
Jurisdiction of Incorporation/Organization
|
Atlantic Wealth Holdings Limited
|
Oxfordshire
|
Atlantic Wealth Management Limited
|
Oxfordshire
|
CM Investment Nominees Limited
|
Oxfordshire
|
Elliot Associates Limited
|
Oxfordshire
|
Finemost Limited
|
Oxfordshire
|
Hyderabad IT Support Services Private Limited
|
India
|
India Asset Recovery Management Limited
|
Mauritius
|
INVESCO (B.V.I.) NOMINEES LIMITED
|
Virgin Islands, British
|
Invesco Administration Services Limited
|
Oxfordshire
|
Invesco Advisers, Inc.
|
Delaware
|
Invesco Aim Global Holdings, Inc.
|
Delaware
|
Invesco Aim Retirement Services, Inc.
|
Delaware
|
Invesco Asia Pacific Real Estate Investment Management Consulting (Shenzhen Limited)
|
China
|
Invesco Asia Real Estate Fund I LP
|
Cayman Islands
|
Invesco Asset Management (Japan) Limited
|
Japan
|
Invesco Asset Management (Switzerland) Limited
|
Switzerland
|
Invesco Asset Management Asia Limited
|
Hong Kong
|
Invesco Asset Management Australia (Holdings) Ltd
|
Victoria
|
Invesco Asset Management Deutschland GmbH
|
Germany
|
INVESCO Asset Management Ireland Holdings Limited
|
Ireland
|
Invesco Asset Management Limited
|
Oxfordshire
|
Invesco Asset Management Pacific Limited
|
Hong Kong
|
Invesco Asset Management SA
|
France
|
Invesco Asset Management Singapore Ltd
|
Singapore
|
Invesco Asset Management Österreich GmbH
|
Austria
|
Invesco Australia Limited
|
Victoria
|
Invesco Canada Holdings Inc.
|
Ontario
|
Invesco Canada Ltd.
|
Ontario
|
Invesco Capital Markets, Inc.
|
Delaware
|
Invesco (Cayman Islands) Ltd.
|
Cayman Islands
|
Invesco Distributors, Inc.
|
Delaware
|
Invesco Far East Limited
|
Oxfordshire
|
Invesco Finance Inc.
|
Delaware
|
Invesco Finance PLC
|
Oxfordshire
|
Invesco Financial Services Ltd.
|
Canada
|
Invesco Fund Managers Limited
|
Oxfordshire
|
INVESCO Funds Group, Inc.
|
Delaware
|
INVESCO Global Asset Management Limited
|
Bermuda
|
Invesco Global Investment Funds Limited
|
Oxfordshire
|
Invesco Global Real Estate Asia Pacific Inc.
|
Delaware
|
Invesco Group Limited
|
Oxfordshire
|
Invesco Group Services, Inc.
|
Delaware
|
Invesco GT Asset Management Limited
|
Oxfordshire
|
Invesco Holding Company Limited
|
Oxfordshire
|
INVESCO Holland B.V.
|
Netherlands
|
Invesco Hong Kong Limited
|
Hong Kong
|
Invesco (Hyderabad) Private Limited
|
India
|
Invesco Inc.
|
Nova Scotia
|
Invesco Insurance Agency, Inc.
|
Delaware
|
INVESCO International (Southern Africa) Limited
|
South Africa
|
Invesco International Holdings Limited
|
Oxfordshire
|
INVESCO International Limited
|
Great Britain
|
Invesco Investment Advisers LLC
|
Delaware
|
Invesco Investment Consulting (Beijing) Limited
|
China
|
Invesco Investment Services, Inc.
|
Delaware
|
Invesco Italia SGR SPA
|
Italy
|
Invesco Korean Real Estate Holdings LLC
|
Delaware
|
Invesco Management Group, Inc.
|
Delaware
|
INVESCO Management S.A.
|
Luxembourg
|
Invesco North American Group Limited
|
Oxfordshire
|
Invesco North American Holdings, Inc.
|
Delaware
|
Invesco Pacific Group Limited
|
Oxfordshire
|
Invesco Perpetual Life Limited
|
Oxfordshire
|
INVESCO Polska Sp.z.o.o.
|
Poland
|
Invesco PowerShares Capital Management LLC
|
Ireland
|
Invesco Private Capital, Inc.
|
Delaware
|
INVESCO Real Estate Germany LLC
|
Delaware
|
Invesco Real Estate Germany, L.P.
|
Delaware
|
Invesco Real Estate Investment (Asia) LLC
|
Delaware
|
Invesco Real Estate Investment Asia Pacific Limited
|
Hong Kong
|
Invesco Real Estate Korea
|
Republic of Korea
|
Invesco Real Estate Limited
|
United Kingdom
|
Invesco Real Estate Management S.a.r.l.
|
Luxembourg
|
INVESCO Real Estate s.r.o.
|
Czech Republic
|
Invesco Savings Scheme (Nominees) Limited
|
Oxfordshire
|
Invesco Senior Secured Management, Inc.
|
Delaware
|
Invesco Taiwan Limited
|
Taiwan
|
Invesco Trust Company
|
Texas
|
Invesco UK Holdings Limited
|
Oxfordshire
|
Invesco UK Limited
|
Oxfordshire
|
Invesco WLR Limited
|
Hong Kong
|
IRE Advisors (Shanghai) Ltd.
|
Shanghai
|
IRE (China) Limited
|
China
|
IRE (Cayman) Limited
|
Cayman Island
|
IVZ Bahamas Private Limited
|
Lyford Cay, Nassau
|
IVZ Distributors, Inc.
|
Delaware
|
IVZ Finance Limited
|
Ireland
|
IVZ Finance S.a.r.l.
|
Luxembourg
|
IVZ UK Limited
|
Oxfordshire
|
IVZ Mauritius Services Private Limited
|
Port Louis
|
IVZ, Inc.
|
Delaware
|
James Bryant Limited
|
Oxfordshire
|
PCM Properties LLC
|
Illinois
|
Perpetual Administration Limited
|
Oxfordshire
|
Perpetual Limited
|
Oxfordshire
|
Perpetual Portfolio Management Limited
|
Oxfordshire
|
Perpetual Unit Trust Management (Nominees) Limited
|
Oxfordshire
|
Sermon Lane Nominees Limited
|
Oxfordshire
|
Tower Asia Pac HoldCo. LLC
|
Delaware
|
Trimark Investments Ltd.
|
Canada
|
W.L. Ross & Co. (India) LLC
|
Delaware
|
W.L. Ross M & T, LLC
|
Delaware
|
W.L. Ross & Co., LLC
|
Delaware
|
Attention:
|
Angela Larkin
|
Telephone:
|
312-828-3882
|
E-Mail:
|
angela.larkin@baml.com
|
Date
|
Amount of Advance
|
Amount of Principal Paid or Prepaid
|
Unpaid Principal Balance
|
Notation Made By
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
The Business Day of the Proposed Borrowing is _______________, 20__.
|
(ii)
|
The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances] [Eurocurrency Rate Advances].
|
(iii)
|
The aggregate amount of the Proposed Borrowing is [$_______________] [£_______________].
|
[(iv)
|
The initial Interest Period for each Eurocurrency Rate Advance made as part of the Proposed Borrowing is _______________ month[s].]
|
2.
|
Assignee
[s]
:
______________________________
|
3.
Borrower
:
|
INVESCO FINANCE PLC
|
4.
Administrative Agent
:
|
BANK OF AMERICA, N.A., as the administrative agent under the Credit Agreement
|
5.
Credit Agreement
:
|
Third Amended and Restated Credit Agreement dated as of August 7, 2015 among INVESCO FINANCE PLC, a company organized under the laws of England and Wales (the “
Borrower
”), INVESCO LTD., the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, as amended, restated, supplemented or otherwise modified from time to time.
|
6.
|
Assigned Interest
:
|
Assignor[s]
5
|
Assignee[s]
6
|
Aggregate Amount of Commitment for all Lenders
7
|
Amount of Commitment Assigned
|
Percentage
Assigned of Commitment
8
|
CUSIP Number
|
|
|
$__________
|
$__________
|
________%
|
|
|
|
$__________
|
$__________
|
|
|
|
|
$__________
|
$__________
|
________%
|
|
[7.
|
Trade Date
:
__________________]
9
|
|
Linklaters LLP
One Silk Street
London EC2Y 8HQ
Telephone (+44) 20 7456 2000
Facsimile (+44) 20 7456 2222
DX Box Number 10 CDE
|
|
To the Administrative Agent and
the Lenders from time to time party to the Agreement
(as defined below)
c/o Bank of America, N.A.
|
|
August 7, 2015
|
1.
|
Introduction
|
2.
|
English Law
|
3.
|
Scope of Inquiry
|
4.
|
Assumptions
|
5.
|
Opinion
|
(i)
|
the foreign judgment was not contrary to English public policy, for multiple damages or based on a provision of law specified under the Protection of Trading Interests Act 1980 nor obtained by fraud or in breach of the rules of natural justice;
|
(ii)
|
the foreign judgment was not inconsistent with an earlier judgment relating to the same issue of a court having jurisdiction over the matter;
|
(iii)
|
the foreign judgment does not require the Borrower to perform an act which would be illegal in the country of performance; and
|
(iv)
|
the foreign proceedings were not of a revenue or penal nature.
|
6.
|
Qualifications
|
(a)
|
where all other elements relevant to the Agreement at the time of the choice are located in:
|
(i)
|
a country other than the United States, it is possible that the choice of New York law will not prejudice the application of provisions of the law of that other country which cannot be derogated from by agreement;
|
(ii)
|
one or more EU Member States, it is possible that the choice of New York law will not prejudice the application of provisions of EU law (where appropriate, as implemented in England) which cannot be derogated from by agreement;
|
(b)
|
the English courts may have regard to the law of the country in which performance takes place in relation to the manner of performance and the steps to be taken in the event of defective performance; and
|
(c)
|
the English courts may not be restricted from applying overriding mandatory provisions of English law and if there is a provision of New York law that is manifestly incompatible with English public policy, it is possible that the English courts may not apply it.
|
7.
|
Reliance
|
I.
|
Section 5.03(a) - Debt/EBITDA Ratio.
|
A.
|
Adjusted Debt
less
excluded items as of Statement Date:
|
1.
|
Adjusted Debt:
$______________
|
2.
|
Subsidiary Non-Recourse Debt:
$______________
|
3.
|
Liabilities with respect to the Office Equipment Sale and Leaseback Lease (so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds):
$______________
|
4.
|
Qualified Equity Portion of Qualified Securities to the extent such amount is otherwise included in Adjusted Debt:
$______________
|
5.
|
Permitted Unit Investment Trust Debt:
$______________
1
|
6.
|
Adjusted Debt less excluded items for purposes of computing the Debt/EBITDA Ratio (Lines I.A.1 - 2 - 3 - 4 - 5):
$______________
|
B.
|
EBITDA
less
excluded items for four consecutive fiscal quarters ending on above date (“
Subject Period
”):
|
1.
|
Net income of the Parent and its Subsidiaries, on a consolidated basis, excluding consolidated investment products, for Subject Period:
|
2.
|
Interest expense for Subject Period:
$______________
|
3.
|
Income tax expense for Subject Period:
$______________
|
4.
|
Depreciation expense for Subject Period:
$______________
|
5.
|
Amortization expense for Subject Period:
$______________
|
6.
|
Extraordinary losses for Subject Period:
$______________
|
7.
|
Exceptional losses for Subject Period:
$______________
|
8.
|
Non-cash charges exclusive of any non-cash charge to the extent it represents a reserve for cash expenditures in any future period for Subject Period:
$
|
9.
|
Extraordinary gains for Subject Period:
$______________
|
10.
|
Exceptional gains for Subject Period:
$______________
|
11.
|
Non-cash gains exclusive of gains for which the Parent expects cash proceeds in a future period for Subject Period:
$______________
|
12.
|
EBITDA (Lines I.B.1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 -
|
13.
|
Portion of EBITDA attributable to the net income, expenses, losses, charges and gains of each Special Purpose Subsidiary: $
|
14.
|
EBITDA
less
excluded items for purposes of computing the Financial Covenants for Subject Period (Lines I.B.12 - 13): $
|
C.
|
Debt/EBITDA Ratio as of the Statement Date (Line I.A.6 ÷ Line I.B.14):
________
to 1.00
|
II.
|
Section 5.03(b) - Coverage Ratio.
|
A.
|
EBITDA
less
excluded items for purposes of computing the Financial Covenants for Subject Period (Line I.B.14):
$______________
|
B.
|
Interest payable on, and amortization of debt discount in respect of, Adjusted Debt (excluding from Adjusted Debt for purposes of computing this amount: (i) Subsidiary Non-Recourse Debt and (ii) so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds, liabilities with respect to the Office Equipment Sale and Leaseback Lease, in each case to the extent otherwise included in Adjusted Debt):
$______________
|
C.
|
Coverage Ratio as of the Statement Date as of the Statement Date (Line II.A ÷ Line II.B):
________
to 1.00
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
October 29, 2015
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
October 29, 2015
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 29, 2015
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 29, 2015
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|